1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a program to 
  1.3             promote the production and sale of E-85 motor fuel; 
  1.4             amending Minnesota Statutes 2000, section 41A.09, 
  1.5             subdivision 2a; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 41A.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 41A.09, 
  1.9   subdivision 2a, is amended to read: 
  1.10     Subd. 2a.  [DEFINITIONS.] For the purposes of this 
  1.11  section and section 41A.10, the terms defined in this 
  1.12  subdivision have the meanings given them. 
  1.13     (a) "Ethanol" means fermentation ethyl alcohol derived from 
  1.14  agricultural products, including potatoes, cereal, grains, 
  1.15  cheese whey, and sugar beets; forest products; or other 
  1.16  renewable resources, including residue and waste generated from 
  1.17  the production, processing, and marketing of agricultural 
  1.18  products, forest products, and other renewable resources, that: 
  1.19     (1) meets all of the specifications in ASTM specification D 
  1.20  4806-88; and 
  1.21     (2) is denatured as specified in Code of Federal 
  1.22  Regulations, title 27, parts 20 and 21. 
  1.23     (b) "Wet alcohol" means agriculturally derived fermentation 
  1.24  ethyl alcohol having a purity of at least 50 percent but less 
  1.25  than 99 percent. 
  1.26     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
  2.1   derived from agricultural products as described in paragraph 
  2.2   (a), but that does not meet ASTM specifications or is not 
  2.3   denatured and is shipped in bond for further processing. 
  2.4      (d) "Ethanol plant" means a plant at which ethanol, 
  2.5   anhydrous alcohol, or wet alcohol is produced. 
  2.6      Sec. 2.  [41A.10] [ETHANOL MARKET DEVELOPMENT FUND.] 
  2.7      Subdivision 1.  [CREATION.] There is created in the 
  2.8   agricultural fund an account known as the ethanol market 
  2.9   development account.  All money collected under subdivision 2 
  2.10  must be paid by the commissioner into the state treasury and 
  2.11  credited to the account.  Money in the account is appropriated 
  2.12  to the commissioner for purposes of subdivisions 3 and 4. 
  2.13     Subd. 2.  [REPORT, ASSESSMENT ON ETHANOL PRODUCTION.] Not 
  2.14  later than the 20th day of each month, each producer of ethanol 
  2.15  shall report to the commissioner on the total number of gallons 
  2.16  of ethanol produced in the state during the preceding month.  
  2.17  The report must be accompanied by payment of an assessment 
  2.18  totaling $0.02 for each gallon of ethanol produced. 
  2.19     Subd. 3.  [GRANTS FROM FUND.] The commissioner may make 
  2.20  grants from the fund from time to time to the American Lung 
  2.21  Association of Minnesota.  The commissioner shall monitor the 
  2.22  expenditure of grant money and annually report to the 
  2.23  legislature on activities and accomplishments derived from the 
  2.24  grants. 
  2.25     Subd. 4.  [PROGRAMS FUNDED BY GRANTS.] (a) The American 
  2.26  Lung Association of Minnesota shall develop programs designed to 
  2.27  inform and educate the public about E-85 fuel and the economic 
  2.28  and environmental benefits from using it as a motor fuel. 
  2.29     (b) To increase the availability of E-85 fuel in all areas 
  2.30  of the state, the association may also initiate a program of 
  2.31  matching grants and low-interest loans to provide financial 
  2.32  assistance to service stations throughout the state to install 
  2.33  systems for dispensing E-85 fuel.