2003 Minnesota Statutes

     41A.09 Ethanol development. 

    Subdivision 1. Repealed, 2003 c 128 art 3 s 47 

    Subd. 1a.    Ethanol production goal.  It is a goal of 
 the state that ethanol production plants in the state attain a 
 total annual production level of: 

    (1) 240,000,000 gallons in 2003; 

    (2) 300,000,000 gallons in 2004; 

    (3) 360,000,000 gallons in 2005 and 2006; 

    (4) 420,000,000 gallons in 2007; and 

    (5) 480,000,000 gallons in 2008 and subsequent years. 

    Subd. 2. Repealed, 1995 c 220 s 141 

    Subd. 2a.    Definitions.  For the purposes of this 
 section, the terms defined in this subdivision have the meanings 
 given them. 

    (a) "Ethanol" means fermentation ethyl alcohol derived from 
 agricultural products, including potatoes, cereal grains, cheese 
 whey, and sugar beets; forest products; or other renewable 
 resources, including residue and waste generated from the 
 production, processing, and marketing of agricultural products, 
 forest products, and other renewable resources, that: 

    (1) meets all of the specifications in ASTM specification 
 D4806-01; and 

    (2) is denatured as specified in Code of Federal 
 Regulations, title 27, parts 20 and 21. 

    (b) "Ethanol plant" means a plant at which ethanol is 
 produced. 

    (c) "Commissioner" means the commissioner of agriculture. 

    Subd. 3. Repealed, 1995 c 220 s 141 

    Subd. 3a.    Ethanol producer payments.  (a) The 
 commissioner shall make cash payments to producers of ethanol 
 located in the state that have begun production by June 30, 2000.
 For the purpose of this subdivision, an entity that holds a 
 controlling interest in more than one ethanol plant is 
 considered a single producer.  The amount of the payment for 
 each producer's annual production, except as provided in 
 paragraph (c), is 20 cents per gallon for each gallon of ethanol 
 produced on or before June 30, 2000, or ten years after the 
 start of production, whichever is later.  The first claim for 
 production after June 30, 2003, must be accompanied by a 
 disclosure statement on a form provided by the commissioner.  
 The disclosure statement must include a detailed description of 
 the organization of the business structure of the claimant 
 listing the percentages of ownership by any person or other 
 entity with an ownership interest of five percent or greater, 
 the distribution of income received by the claimant, including 
 operating income and payments under this subdivision.  The 
 disclosure statement must include information sufficient to 
 demonstrate that a majority of the ultimate beneficial interest 
 in the entity receiving payments under this section is owned by 
 farmers or spouses of farmers, as defined in section 500.24, 
 residing in Minnesota.  Subsequent quarterly claims must report 
 changes in ownership.  Payments must not be made to a claimant 
 that has less than a majority of Minnesota farmer control except 
 that the commissioner may grant an exemption from the farmer 
 majority ownership requirement to a claimant that, on May 29, 
 2003, has demonstrated greater than 40 percent farmer ownership 
 which, when combined with ownership interests of persons 
 residing within 30 miles of the plant, exceeds 50 percent.  In 
 addition, a claimant located in a city of the first class which 
 qualifies for payments in all other respects is not subject to 
 this condition.  Information provided under this paragraph is 
 nonpublic data under section 13.02, subdivision 9. 

    (b) No payments shall be made for ethanol production that 
 occurs after June 30, 2010.  

    (c) If the level of production at an ethanol plant 
 increases due to an increase in the production capacity of the 
 plant, the payment under paragraph (a) applies to the additional 
 increment of production until ten years after the increased 
 production began.  Once a plant's production capacity reaches 
 15,000,000 gallons per year, no additional increment will 
 qualify for the payment. 

    (d) Total payments under paragraphs (a) and (c) to a 
 producer in a fiscal year may not exceed $3,000,000. 

    (e) By the last day of October, January, April, and July, 
 each producer shall file a claim for payment for ethanol 
 production during the preceding three calendar months.  A 
 producer that files a claim under this subdivision shall include 
 a statement of the producer's total ethanol production in 
 Minnesota during the quarter covered by the claim.  For each 
 claim and statement of total ethanol production filed under this 
 subdivision, the volume of ethanol production must be examined 
 by an independent certified public accountant in accordance with 
 standards established by the American Institute of Certified 
 Public Accountants. 

    (f) Payments shall be made November 15, February 15, May 
 15, and August 15.  A separate payment shall be made for each 
 claim filed.  Except as provided in paragraph (g), the total 
 quarterly payment to a producer under this paragraph may not 
 exceed $750,000.  

    (g) Notwithstanding the quarterly payment limits of 
 paragraph (f), the commissioner shall make an additional payment 
 in the fourth quarter of each fiscal year to ethanol producers 
 for the lesser of:  (1) 20 cents per gallon of production in the 
 fourth quarter of the year that is greater than 3,750,000 
 gallons; or (2) the total amount of payments lost during the 
 first three quarters of the fiscal year due to plant outages, 
 repair, or major maintenance.  Total payments to an ethanol 
 producer in a fiscal year, including any payment under this 
 paragraph, must not exceed the total amount the producer is 
 eligible to receive based on the producer's approved production 
 capacity.  The provisions of this paragraph apply only to 
 production losses that occur in quarters beginning after 
 December 31, 1999. 

    (h) The commissioner shall reimburse ethanol producers for 
 any deficiency in payments during earlier quarters if the 
 deficiency occurred because appropriated money was insufficient 
 to make timely payments in the full amount provided in paragraph 
 (a).  Notwithstanding the quarterly or annual payment 
 limitations in this subdivision, the commissioner shall begin 
 making payments for earlier deficiencies in each fiscal year 
 that appropriations for ethanol payments exceed the amount 
 required to make eligible scheduled payments.  Payments for 
 earlier deficiencies must continue until the deficiencies for 
 each producer are paid in full. 

    Subd. 4.    Rulemaking authority.  The commissioner 
 shall adopt rules to implement this section. 

    Subd. 5. Repealed, 1995 c 220 s 141 

    Subd. 5a. Repealed, 2003 c 128 art 3 s 47 

    Subd. 6. Repealed, 2003 c 128 art 3 s 47 

    Subd. 7. Repealed, 2003 c 128 art 3 s 47 

    Subd. 8. Repealed, 2003 c 128 art 3 s 47 

    HIST: 1Sp1986 c 1 art 8 s 1; 1987 c 390 s 1,2; 1988 c 688 art 
 18 s 1; 1989 c 257 s 1,2; 1989 c 269 s 37; 1989 c 277 art 1 s 2; 
 1989 c 335 art 4 s 106; 1991 c 254 art 3 s 21; 1991 c 302 s 1; 
 1992 c 513 art 2 s 18; 1992 c 575 s 1,2; 1993 c 13 art 1 s 52; 
 1993 c 172 s 30,31; 1993 c 366 s 2; 1994 c 632 art 2 s 15-17; 
 1995 c 220 s 45-48; 1996 c 471 art 5 s 1; 1997 c 7 art 5 s 8; 
 1997 c 216 s 57; 1998 c 299 s 30; 1998 c 401 s 19,20; 2000 c 488 
 art 3 s 11; 1Sp2001 c 4 art 6 s 77; 2002 c 220 art 9 s 6; 2002 c 
 379 art 1 s 14; 2003 c 107 s 26; 2003 c 128 art 3 s 37,38; 
 1Sp2003 c 14 art 7 s 1 

*   NOTE:  The amendment to subdivision 3a by Laws 2002, 
*chapter 220, article 9, section 6, is effective for payments for 
*ethanol production after July 1, 2004.  Laws 2002, chapter 220, 
*article 9, section 6, the effective date.