Bill Text: MN SF2101 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Renewable chemical and advanced biofuel capital equipment loan and incentive program establishment; advanced biofuel production incentive program establishment; biomass production incentive program establishment
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-03-12 - Withdrawn and re-referred to Environment and Energy [SF2101 Detail]
Download: Minnesota-2013-SF2101-Introduced.html
1.2relating to agriculture; creating a renewable chemical and advanced biofuel
1.3capital equipment loan program; creating an advanced biofuel production
1.4incentive program; establishing a renewable chemical production incentive
1.5program; establishing a biomass production incentive program; appropriating
1.6money;proposing coding for new law in Minnesota Statutes, chapter 41A.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [41A.107] RENEWABLE CHEMICAL AND ADVANCED BIOFUEL
1.9CAPITAL EQUIPMENT LOANS.
1.10(a) There is established a renewable chemical and advanced biofuel revolving loan
1.11fund that is eligible to receive appropriations and make loans under this section. The
1.12commissioner shall establish a renewable chemical and advanced biofuel loan program
1.13to make loans for capital equipment to persons participating in advanced biofuel and
1.14renewable chemical production facilities. The commissioner, in consultation with the
1.15board established in section 41A.105, subdivision 2, shall establish guidelines for loans
1.16made under this section. All repayments of loans granted from this fund, including
1.17principal and interest, must be deposited into this fund. Interest earned on money in the
1.18fund accrues to the fund, and the money in the fund is appropriated to the commissioner to
1.19make renewable chemical and advanced biofuel capital equipment loans under this section.
1.20(b) The definitions in sections 41A.13, subdivision 2, and 41A.14, subdivision
1.212, apply to this section.
1.22 Sec. 2. [41A.13] ADVANCED BIOFUEL DEVELOPMENT.
2.1 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
2.2this section is annually appropriated from the general fund to the commissioner, and all
2.3money so appropriated is available until expended.
2.4 Subd. 2. Definitions. (a) For the purposes of this section and sections 41A.107,
2.541A.14, and 41A.15, the terms defined in this subdivision have the meanings given them.
2.6(b) "Advanced biofuels" has the meaning given in section 239.051, subdivision 1a.
2.7(c) "Cellulosic biomass" means material primarily made up of cellulose,
2.8hemicellulose, or lignin, or a combination of those ingredients.
2.9(d) "Commissioner" means the commissioner of agriculture.
2.10(e) "MMBtu" means one million British thermal units.
2.11(f) "Qualifying facility" or "facility" means that a facility eligible for payment under
2.12this program must source at least 80 percent raw materials from Minnesota, and that
2.13raw materials must be from agricultural or forestry sources or from organic content of
2.14municipal solid waste. The production facility must be located in Minnesota and must not
2.15begin operation before January 1, 2015. Eligible facilities include existing companies and
2.16facilities that are adding additional production capacity, as well as new companies and
2.17facilities. For facilities that have previously received ethanol producer payments, only
2.18production capacity above and beyond their capacity at the end of calendar year 2013,
2.19and otherwise eligible, will be able to receive an incentive under this program. Advanced
2.20biofuel facilities must produce at least 950,000 MMBtu per year to be eligible for the
2.21program. Renewable chemical facilities must produce at least 30,000,000 pounds per year
2.22to be eligible for the program. Biomass thermal energy projects must produce at least
2.237,500 MMBtu per year to be eligible for the program.
2.24 Subd. 3. Advanced biofuel producer payments. (a) The commissioner shall
2.25make cash payments to eligible producers of advanced biofuel for a qualifying facility
2.26located in the state that has begun production at a specific location by June 30, 2020. For
2.27the purpose of this subdivision, an entity that holds a controlling interest in more than
2.28one advanced biofuel facility is considered a single eligible producer. The amount of
2.29the payment for each eligible producer's annual production is $2.1053 per MMBtu for
2.30advanced biofuel production from cellulosic biomass and $1.053 per MMBtu for advanced
2.31biofuel production from sugar or starch at a specific location for ten years after the start
2.32of production. Agriculturally derived cellulosic biomass must be produced in a way that
2.33is consistent with recommendations from the United States Department of Agriculture,
2.34Natural Resources Conservation Service. All forestry-derived cellulosic biomass must
2.35be produced using Minnesota state biomass harvesting guidelines. Forestry-derived
2.36cellulosic biomass that comes from land parcels that are greater than 160 acres must be
3.1certified by the Forest Stewardship Council, Sustainable Forestry Initiative, or American
3.2Tree Farmer. Uncertified land from parcels that are 160 acres or less must participate in
3.3the master logger education program and have a forest stewardship plan.
3.4(b) No payments shall be made for advanced biofuel production that occurs after
3.5June 30, 2030, for those eligible biofuel producers under paragraph (a). An eligible
3.6producer of advanced biofuel shall not transfer the producer's eligibility for payments
3.7under this section to an advanced biofuel facility at a different location.
3.8(c) Payments under paragraphs (a) and (b) to all eligible biofuel producers may
3.9not exceed $30,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to
3.10an eligible biofuel producer in a fiscal year may not exceed the amount necessary for
3.112,850,000 MMBtu of biofuel production.
3.12(d) By the last day of October, January, April, and July, each eligible biofuel producer
3.13shall file a claim for payment for advanced biofuel production during the preceding three
3.14calendar months. An eligible biofuel producer that files a claim under this subdivision shall
3.15include a statement of the eligible biofuel producer's total advanced biofuel production in
3.16Minnesota during the quarter covered by the claim. For each claim and statement of total
3.17advanced biofuel production filed under this subdivision, the volume of advanced biofuel
3.18production must be examined by an independent certified public accountant in accordance
3.19with standards established by the American Institute of Certified Public Accountants.
3.20(e) Payments must be made November 15, February 15, May 15, and August 15. A
3.21separate payment must be made for each claim filed. The total quarterly payment to an
3.22eligible producer under this paragraph may not exceed the amount necessary for 712,500
3.23MMBtu of biofuel production.
3.24(f) If an eligible biofuel producer becomes ineligible within five years after the
3.25last payment has been received under paragraph (a), all payments received for biofuel
3.26production must be refunded to the commissioner. Refunded payments received under this
3.27paragraph shall be deposited in the general fund.
3.28(g) Annually, within 90 days of the end of its fiscal year, an advanced biofuel
3.29producer receiving payments under this subdivision must file a disclosure statement on
3.30a form provided by the commissioner. The initial disclosure statement must include a
3.31summary description of the organization of the business structure of the claimant, a listing
3.32of the percentages of ownership and governance by any person or other entity with an
3.33ownership interest or governance rights of five percent or greater, and a copy of its
3.34annual audited financial statements, including the auditor's report and footnotes. This
3.35data must be made available to the commissioner upon request. No later than February
3.3615 of each year, the commissioner shall deliver to the chairs of the standing committees
4.1of the senate and the house of representatives with jurisdiction over agricultural policy
4.2and agricultural finance an annual report summarizing aggregated and facility data
4.3from facilities receiving payments under this section during the preceding calendar
4.4year. Audited financial statements and notes and disclosure statements submitted to the
4.5commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the
4.6provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited
4.7financial reports and notes and disclosure statements must be contained in the report to
4.8the committee chairs and are public data.
4.9(h) Renewable chemical production for which payment has been received under
4.10section 41A.14, and biomass thermal production for which payment has been received
4.11under section 41A.15, are not eligible for payment under this section.
4.12 Sec. 3. [41A.14] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
4.13 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
4.14this section is annually appropriated from the general fund to the commissioner, and all
4.15money so appropriated is available until expended.
4.16 Subd. 2. Definitions. (a) The definitions this subdivision and section 41A.13,
4.17subdivision 2, apply to this section.
4.18(b) "Cellulosic sugar" means sugar derived from lignocellulosic materials from
4.19agricultural or forestry resources.
4.20(c) "Qualifying facility" or "facility" means that a facility eligible for payment under
4.21this program must source at least 80 percent raw materials from Minnesota, and that
4.22raw materials must be from agricultural or forestry sources or from organic content of
4.23municipal solid waste. The production facility must be located in Minnesota and must not
4.24begin operation before January 1, 2015. Eligible facilities include existing companies and
4.25facilities that are adding additional production capacity, as well as new companies and
4.26facilities. For facilities that have previously received ethanol producer payments, only
4.27production capacity above and beyond their capacity at the end of calendar year 2013, and
4.28otherwise eligible, will be able to receive an incentive under this program.
4.29(d) "Renewable chemical" means a chemical with biobased content as defined in
4.30section 41A.105, subdivision 1a.
4.31 Subd. 3. Renewable chemical producer payments. (a) The commissioner shall
4.32make cash payments to eligible producers of renewable chemicals for a qualifying facility
4.33located in the state that has begun production at a specific location by June 30, 2020.
4.34For the purpose of this subdivision, an entity that holds a controlling interest in more
4.35than one renewable chemical production facility is considered a single eligible producer.
5.1The amount of the payment for each producer's annual production is $0.03 per pound
5.2of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06
5.3per pound of cellulosic-derived renewable chemical produced at a specific location for
5.4ten years after the start of production. Agriculturally derived cellulosic biomass must
5.5be produced in a way that is consistent with recommendations from the United States
5.6Department of Agriculture, Natural Resources Conservation Service. All forestry-derived
5.7cellulosic biomass must be produced using Minnesota state biomass harvesting guidelines.
5.8Forestry-derived cellulosic biomass that comes from land parcels that are greater than 160
5.9acres must be certified by the Forest Stewardship Council, Sustainable Forestry Initiative,
5.10or American Tree Farmer. Uncertified land from parcels that are 160 acres or less must
5.11participate in the master logger education program and have a forest stewardship plan.
5.12(b) No payments shall be made for renewable chemical production that occurs after
5.13June 30, 2030, for those eligible renewable chemical producers under paragraph (a). An
5.14eligible producer of renewable chemicals shall not transfer the producer's eligibility for
5.15payments under this section to a renewable chemical facility at a different location.
5.16(c) Payments under paragraphs (a) and (b) to all eligible renewable chemical
5.17producers may not exceed $30,000,000 in a fiscal year. Total payments under paragraphs
5.18(a) and (b) to an eligible renewable chemical producer in a fiscal year may not exceed the
5.19amount necessary for 99,999,999 pounds of renewable chemicals.
5.20(d) By the last day of October, January, April, and July, each eligible renewable
5.21chemical producer shall file a claim for payment for renewable chemical production
5.22during the preceding three calendar months. An eligible renewable chemical producer
5.23that files a claim under this subdivision shall include a statement of the eligible producer's
5.24total renewable chemical production in Minnesota during the quarter covered by the
5.25claim. For each claim and statement of total renewable chemical production filed under
5.26this subdivision, the volume of renewable chemical production must be examined by an
5.27independent certified public accountant in accordance with standards established by the
5.28American Institute of Certified Public Accountants.
5.29(e) Payments must be made November 15, February 15, May 15, and August 15.
5.30A separate payment must be made for each claim filed. The total quarterly payment
5.31to an eligible producer under this paragraph may not exceed the amount necessary for
5.3225,000,000 pounds of production.
5.33(f) If an eligible renewable chemical producer becomes ineligible within five years
5.34after the last payment has been received under paragraph (a), all payments received
5.35for renewable chemical production must be refunded to the commissioner. Refunded
5.36payments received under this paragraph shall be deposited in the general fund.
6.1(g) Annually, within 90 days of the end of its fiscal year, a renewable chemical
6.2producer receiving payments under this subdivision must file a disclosure statement on
6.3a form provided by the commissioner. The initial disclosure statement must include a
6.4summary description of the organization of the business structure of the claimant, a listing
6.5of the percentages of ownership and governance by any person or other entity with an
6.6ownership interest or governance rights of five percent or greater, and a copy of its
6.7annual audited financial statements, including the auditor's report and footnotes. This
6.8data must be made available to the commissioner upon request. No later than February
6.915 of each year, the commissioner shall deliver to the chairs of the standing committees
6.10of the senate and the house of representatives with jurisdiction over agricultural policy
6.11and agricultural finance an annual report summarizing aggregated and facility data
6.12from facilities receiving payments under this section during the preceding calendar
6.13year. Audited financial statements and notes and disclosure statements submitted to the
6.14commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the
6.15provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited
6.16financial reports and notes and disclosure statements must be contained in the report to
6.17the committee chairs and are public data.
6.18(h) Advanced biofuel production for which payment has been received under section
6.1941A.13, and biomass thermal production for which payment has been received under
6.20section 41A.15, are not eligible for payment under this section.
6.21 Sec. 4. [41A.15] BIOMASS THERMAL PRODUCTION INCENTIVE.
6.22 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
6.23this section is annually appropriated from the general fund to the commissioner, and all
6.24money so appropriated is available until expended.
6.25 Subd. 2. Definitions. (a) The definitions in this subdivision and section 41A.13,
6.26subdivision 2, apply to this section.
6.27(b) "Biomass thermal production" means the generation of energy for commercial
6.28heat or industrial process heat from a cellulosic material or other material composed of
6.29forestry or agricultural feedstocks for a new or expanding capacity facility or a facility that
6.30is displacing existing use of fossil fuel after the effective date of this section.
6.31(c) "Qualifying facility" or "facility" means that a facility eligible for payment under
6.32this program must source at least 80 percent raw materials from Minnesota, and that
6.33raw materials must be from agricultural or forestry sources or from organic content of
6.34municipal solid waste. The production facility must be located in Minnesota and must not
6.35begin operation before January 1, 2015. Eligible facilities include existing companies and
7.1facilities that are adding additional production capacity, as well as new companies and
7.2facilities. For facilities that have previously received ethanol producer payments, only
7.3production capacity above and beyond their capacity at the end of calendar year 2013, and
7.4otherwise eligible, will be able to receive an incentive under this program.
7.5 Subd. 3. Biomass thermal producer payments. (a) The commissioner shall
7.6make cash payments to eligible producers of biomass thermal for a qualifying facility
7.7located in the state that has begun production at a specific location by June 30, 2020.
7.8For the purpose of this subdivision, an entity that holds a controlling interest in more
7.9than one biomass thermal production facility is considered a single eligible producer.
7.10The amount of the payment for each producer's annual production is $5 per MMBtu of
7.11biomass thermal production produced at a specific location for three years after the start of
7.12production. Agriculturally derived cellulosic materials must be produced in a way that
7.13is consistent with recommendations from the United States Department of Agriculture,
7.14Natural Resources Conservation Service. All forestry-derived cellulosic biomass must
7.15be produced using Minnesota state biomass harvesting guidelines. Forestry-derived
7.16cellulosic biomass that comes from land parcels that are greater than 160 acres must
7.17be certified by the Forest Stewardship Council or the Sustainable Forestry Initiative.
7.18Uncertified land from parcels that are 160 acres or less must participate in the master
7.19logger education program and have a forest stewardship plan.
7.20(b) No payments shall be made for biomass thermal production that occurs after June
7.2130, 2030, for those eligible biomass thermal producers under paragraph (a). A producer of
7.22biomass thermal production shall not transfer the producer's eligibility for payments under
7.23this section to a biomass thermal production facility at a different location.
7.24(c) Total payments under paragraphs (a) and (b) to all producers may not exceed
7.25$1,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer
7.26in a fiscal year may not exceed $100,000.
7.27(d) A qualifying facility may blend a cellulosic biomass with other fuels in the
7.28biomass thermal production facility, but only the percentage attributable to cellulosic
7.29material listed is eligible to receive the producer payment.
7.30(e) By the last day of October, January, April, and July, each producer shall file a
7.31claim for payment for biomass thermal production during the preceding three calendar
7.32months. A producer that files a claim under this subdivision shall include a statement of
7.33the producer's total biomass thermal production in Minnesota during the quarter covered
7.34by the claim. For each claim and statement of total biomass thermal production filed
7.35under this subdivision, the volume of biomass thermal production must be examined by
8.1an independent certified public accountant in accordance with standards established by
8.2the American Institute of Certified Public Accountants.
8.3(f) Payments shall be made November 15, February 15, May 15, and August 15. A
8.4separate payment shall be made for each claim filed.
8.5(g) Advanced biofuel production for which payment has been received under section
8.641A.13, and renewable chemical production for which payment has been received under
8.7section 41A.14, are not eligible for payment under this section.
1.3capital equipment loan program; creating an advanced biofuel production
1.4incentive program; establishing a renewable chemical production incentive
1.5program; establishing a biomass production incentive program; appropriating
1.6money;proposing coding for new law in Minnesota Statutes, chapter 41A.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [41A.107] RENEWABLE CHEMICAL AND ADVANCED BIOFUEL
1.9CAPITAL EQUIPMENT LOANS.
1.10(a) There is established a renewable chemical and advanced biofuel revolving loan
1.11fund that is eligible to receive appropriations and make loans under this section. The
1.12commissioner shall establish a renewable chemical and advanced biofuel loan program
1.13to make loans for capital equipment to persons participating in advanced biofuel and
1.14renewable chemical production facilities. The commissioner, in consultation with the
1.15board established in section 41A.105, subdivision 2, shall establish guidelines for loans
1.16made under this section. All repayments of loans granted from this fund, including
1.17principal and interest, must be deposited into this fund. Interest earned on money in the
1.18fund accrues to the fund, and the money in the fund is appropriated to the commissioner to
1.19make renewable chemical and advanced biofuel capital equipment loans under this section.
1.20(b) The definitions in sections 41A.13, subdivision 2, and 41A.14, subdivision
1.212, apply to this section.
1.22 Sec. 2. [41A.13] ADVANCED BIOFUEL DEVELOPMENT.
2.1 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
2.2this section is annually appropriated from the general fund to the commissioner, and all
2.3money so appropriated is available until expended.
2.4 Subd. 2. Definitions. (a) For the purposes of this section and sections 41A.107,
2.541A.14, and 41A.15, the terms defined in this subdivision have the meanings given them.
2.6(b) "Advanced biofuels" has the meaning given in section 239.051, subdivision 1a.
2.7(c) "Cellulosic biomass" means material primarily made up of cellulose,
2.8hemicellulose, or lignin, or a combination of those ingredients.
2.9(d) "Commissioner" means the commissioner of agriculture.
2.10(e) "MMBtu" means one million British thermal units.
2.11(f) "Qualifying facility" or "facility" means that a facility eligible for payment under
2.12this program must source at least 80 percent raw materials from Minnesota, and that
2.13raw materials must be from agricultural or forestry sources or from organic content of
2.14municipal solid waste. The production facility must be located in Minnesota and must not
2.15begin operation before January 1, 2015. Eligible facilities include existing companies and
2.16facilities that are adding additional production capacity, as well as new companies and
2.17facilities. For facilities that have previously received ethanol producer payments, only
2.18production capacity above and beyond their capacity at the end of calendar year 2013,
2.19and otherwise eligible, will be able to receive an incentive under this program. Advanced
2.20biofuel facilities must produce at least 950,000 MMBtu per year to be eligible for the
2.21program. Renewable chemical facilities must produce at least 30,000,000 pounds per year
2.22to be eligible for the program. Biomass thermal energy projects must produce at least
2.237,500 MMBtu per year to be eligible for the program.
2.24 Subd. 3. Advanced biofuel producer payments. (a) The commissioner shall
2.25make cash payments to eligible producers of advanced biofuel for a qualifying facility
2.26located in the state that has begun production at a specific location by June 30, 2020. For
2.27the purpose of this subdivision, an entity that holds a controlling interest in more than
2.28one advanced biofuel facility is considered a single eligible producer. The amount of
2.29the payment for each eligible producer's annual production is $2.1053 per MMBtu for
2.30advanced biofuel production from cellulosic biomass and $1.053 per MMBtu for advanced
2.31biofuel production from sugar or starch at a specific location for ten years after the start
2.32of production. Agriculturally derived cellulosic biomass must be produced in a way that
2.33is consistent with recommendations from the United States Department of Agriculture,
2.34Natural Resources Conservation Service. All forestry-derived cellulosic biomass must
2.35be produced using Minnesota state biomass harvesting guidelines. Forestry-derived
2.36cellulosic biomass that comes from land parcels that are greater than 160 acres must be
3.1certified by the Forest Stewardship Council, Sustainable Forestry Initiative, or American
3.2Tree Farmer. Uncertified land from parcels that are 160 acres or less must participate in
3.3the master logger education program and have a forest stewardship plan.
3.4(b) No payments shall be made for advanced biofuel production that occurs after
3.5June 30, 2030, for those eligible biofuel producers under paragraph (a). An eligible
3.6producer of advanced biofuel shall not transfer the producer's eligibility for payments
3.7under this section to an advanced biofuel facility at a different location.
3.8(c) Payments under paragraphs (a) and (b) to all eligible biofuel producers may
3.9not exceed $30,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to
3.10an eligible biofuel producer in a fiscal year may not exceed the amount necessary for
3.112,850,000 MMBtu of biofuel production.
3.12(d) By the last day of October, January, April, and July, each eligible biofuel producer
3.13shall file a claim for payment for advanced biofuel production during the preceding three
3.14calendar months. An eligible biofuel producer that files a claim under this subdivision shall
3.15include a statement of the eligible biofuel producer's total advanced biofuel production in
3.16Minnesota during the quarter covered by the claim. For each claim and statement of total
3.17advanced biofuel production filed under this subdivision, the volume of advanced biofuel
3.18production must be examined by an independent certified public accountant in accordance
3.19with standards established by the American Institute of Certified Public Accountants.
3.20(e) Payments must be made November 15, February 15, May 15, and August 15. A
3.21separate payment must be made for each claim filed. The total quarterly payment to an
3.22eligible producer under this paragraph may not exceed the amount necessary for 712,500
3.23MMBtu of biofuel production.
3.24(f) If an eligible biofuel producer becomes ineligible within five years after the
3.25last payment has been received under paragraph (a), all payments received for biofuel
3.26production must be refunded to the commissioner. Refunded payments received under this
3.27paragraph shall be deposited in the general fund.
3.28(g) Annually, within 90 days of the end of its fiscal year, an advanced biofuel
3.29producer receiving payments under this subdivision must file a disclosure statement on
3.30a form provided by the commissioner. The initial disclosure statement must include a
3.31summary description of the organization of the business structure of the claimant, a listing
3.32of the percentages of ownership and governance by any person or other entity with an
3.33ownership interest or governance rights of five percent or greater, and a copy of its
3.34annual audited financial statements, including the auditor's report and footnotes. This
3.35data must be made available to the commissioner upon request. No later than February
3.3615 of each year, the commissioner shall deliver to the chairs of the standing committees
4.1of the senate and the house of representatives with jurisdiction over agricultural policy
4.2and agricultural finance an annual report summarizing aggregated and facility data
4.3from facilities receiving payments under this section during the preceding calendar
4.4year. Audited financial statements and notes and disclosure statements submitted to the
4.5commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the
4.6provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited
4.7financial reports and notes and disclosure statements must be contained in the report to
4.8the committee chairs and are public data.
4.9(h) Renewable chemical production for which payment has been received under
4.10section 41A.14, and biomass thermal production for which payment has been received
4.11under section 41A.15, are not eligible for payment under this section.
4.12 Sec. 3. [41A.14] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
4.13 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
4.14this section is annually appropriated from the general fund to the commissioner, and all
4.15money so appropriated is available until expended.
4.16 Subd. 2. Definitions. (a) The definitions this subdivision and section 41A.13,
4.17subdivision 2, apply to this section.
4.18(b) "Cellulosic sugar" means sugar derived from lignocellulosic materials from
4.19agricultural or forestry resources.
4.20(c) "Qualifying facility" or "facility" means that a facility eligible for payment under
4.21this program must source at least 80 percent raw materials from Minnesota, and that
4.22raw materials must be from agricultural or forestry sources or from organic content of
4.23municipal solid waste. The production facility must be located in Minnesota and must not
4.24begin operation before January 1, 2015. Eligible facilities include existing companies and
4.25facilities that are adding additional production capacity, as well as new companies and
4.26facilities. For facilities that have previously received ethanol producer payments, only
4.27production capacity above and beyond their capacity at the end of calendar year 2013, and
4.28otherwise eligible, will be able to receive an incentive under this program.
4.29(d) "Renewable chemical" means a chemical with biobased content as defined in
4.30section 41A.105, subdivision 1a.
4.31 Subd. 3. Renewable chemical producer payments. (a) The commissioner shall
4.32make cash payments to eligible producers of renewable chemicals for a qualifying facility
4.33located in the state that has begun production at a specific location by June 30, 2020.
4.34For the purpose of this subdivision, an entity that holds a controlling interest in more
4.35than one renewable chemical production facility is considered a single eligible producer.
5.1The amount of the payment for each producer's annual production is $0.03 per pound
5.2of sugar-derived renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06
5.3per pound of cellulosic-derived renewable chemical produced at a specific location for
5.4ten years after the start of production. Agriculturally derived cellulosic biomass must
5.5be produced in a way that is consistent with recommendations from the United States
5.6Department of Agriculture, Natural Resources Conservation Service. All forestry-derived
5.7cellulosic biomass must be produced using Minnesota state biomass harvesting guidelines.
5.8Forestry-derived cellulosic biomass that comes from land parcels that are greater than 160
5.9acres must be certified by the Forest Stewardship Council, Sustainable Forestry Initiative,
5.10or American Tree Farmer. Uncertified land from parcels that are 160 acres or less must
5.11participate in the master logger education program and have a forest stewardship plan.
5.12(b) No payments shall be made for renewable chemical production that occurs after
5.13June 30, 2030, for those eligible renewable chemical producers under paragraph (a). An
5.14eligible producer of renewable chemicals shall not transfer the producer's eligibility for
5.15payments under this section to a renewable chemical facility at a different location.
5.16(c) Payments under paragraphs (a) and (b) to all eligible renewable chemical
5.17producers may not exceed $30,000,000 in a fiscal year. Total payments under paragraphs
5.18(a) and (b) to an eligible renewable chemical producer in a fiscal year may not exceed the
5.19amount necessary for 99,999,999 pounds of renewable chemicals.
5.20(d) By the last day of October, January, April, and July, each eligible renewable
5.21chemical producer shall file a claim for payment for renewable chemical production
5.22during the preceding three calendar months. An eligible renewable chemical producer
5.23that files a claim under this subdivision shall include a statement of the eligible producer's
5.24total renewable chemical production in Minnesota during the quarter covered by the
5.25claim. For each claim and statement of total renewable chemical production filed under
5.26this subdivision, the volume of renewable chemical production must be examined by an
5.27independent certified public accountant in accordance with standards established by the
5.28American Institute of Certified Public Accountants.
5.29(e) Payments must be made November 15, February 15, May 15, and August 15.
5.30A separate payment must be made for each claim filed. The total quarterly payment
5.31to an eligible producer under this paragraph may not exceed the amount necessary for
5.3225,000,000 pounds of production.
5.33(f) If an eligible renewable chemical producer becomes ineligible within five years
5.34after the last payment has been received under paragraph (a), all payments received
5.35for renewable chemical production must be refunded to the commissioner. Refunded
5.36payments received under this paragraph shall be deposited in the general fund.
6.1(g) Annually, within 90 days of the end of its fiscal year, a renewable chemical
6.2producer receiving payments under this subdivision must file a disclosure statement on
6.3a form provided by the commissioner. The initial disclosure statement must include a
6.4summary description of the organization of the business structure of the claimant, a listing
6.5of the percentages of ownership and governance by any person or other entity with an
6.6ownership interest or governance rights of five percent or greater, and a copy of its
6.7annual audited financial statements, including the auditor's report and footnotes. This
6.8data must be made available to the commissioner upon request. No later than February
6.915 of each year, the commissioner shall deliver to the chairs of the standing committees
6.10of the senate and the house of representatives with jurisdiction over agricultural policy
6.11and agricultural finance an annual report summarizing aggregated and facility data
6.12from facilities receiving payments under this section during the preceding calendar
6.13year. Audited financial statements and notes and disclosure statements submitted to the
6.14commissioner are nonpublic data under section 13.02, subdivision 9. Notwithstanding the
6.15provisions of chapter 13 relating to nonpublic data, summaries of the submitted audited
6.16financial reports and notes and disclosure statements must be contained in the report to
6.17the committee chairs and are public data.
6.18(h) Advanced biofuel production for which payment has been received under section
6.1941A.13, and biomass thermal production for which payment has been received under
6.20section 41A.15, are not eligible for payment under this section.
6.21 Sec. 4. [41A.15] BIOMASS THERMAL PRODUCTION INCENTIVE.
6.22 Subdivision 1. Appropriation. A sum sufficient to make the payments required by
6.23this section is annually appropriated from the general fund to the commissioner, and all
6.24money so appropriated is available until expended.
6.25 Subd. 2. Definitions. (a) The definitions in this subdivision and section 41A.13,
6.26subdivision 2, apply to this section.
6.27(b) "Biomass thermal production" means the generation of energy for commercial
6.28heat or industrial process heat from a cellulosic material or other material composed of
6.29forestry or agricultural feedstocks for a new or expanding capacity facility or a facility that
6.30is displacing existing use of fossil fuel after the effective date of this section.
6.31(c) "Qualifying facility" or "facility" means that a facility eligible for payment under
6.32this program must source at least 80 percent raw materials from Minnesota, and that
6.33raw materials must be from agricultural or forestry sources or from organic content of
6.34municipal solid waste. The production facility must be located in Minnesota and must not
6.35begin operation before January 1, 2015. Eligible facilities include existing companies and
7.1facilities that are adding additional production capacity, as well as new companies and
7.2facilities. For facilities that have previously received ethanol producer payments, only
7.3production capacity above and beyond their capacity at the end of calendar year 2013, and
7.4otherwise eligible, will be able to receive an incentive under this program.
7.5 Subd. 3. Biomass thermal producer payments. (a) The commissioner shall
7.6make cash payments to eligible producers of biomass thermal for a qualifying facility
7.7located in the state that has begun production at a specific location by June 30, 2020.
7.8For the purpose of this subdivision, an entity that holds a controlling interest in more
7.9than one biomass thermal production facility is considered a single eligible producer.
7.10The amount of the payment for each producer's annual production is $5 per MMBtu of
7.11biomass thermal production produced at a specific location for three years after the start of
7.12production. Agriculturally derived cellulosic materials must be produced in a way that
7.13is consistent with recommendations from the United States Department of Agriculture,
7.14Natural Resources Conservation Service. All forestry-derived cellulosic biomass must
7.15be produced using Minnesota state biomass harvesting guidelines. Forestry-derived
7.16cellulosic biomass that comes from land parcels that are greater than 160 acres must
7.17be certified by the Forest Stewardship Council or the Sustainable Forestry Initiative.
7.18Uncertified land from parcels that are 160 acres or less must participate in the master
7.19logger education program and have a forest stewardship plan.
7.20(b) No payments shall be made for biomass thermal production that occurs after June
7.2130, 2030, for those eligible biomass thermal producers under paragraph (a). A producer of
7.22biomass thermal production shall not transfer the producer's eligibility for payments under
7.23this section to a biomass thermal production facility at a different location.
7.24(c) Total payments under paragraphs (a) and (b) to all producers may not exceed
7.25$1,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer
7.26in a fiscal year may not exceed $100,000.
7.27(d) A qualifying facility may blend a cellulosic biomass with other fuels in the
7.28biomass thermal production facility, but only the percentage attributable to cellulosic
7.29material listed is eligible to receive the producer payment.
7.30(e) By the last day of October, January, April, and July, each producer shall file a
7.31claim for payment for biomass thermal production during the preceding three calendar
7.32months. A producer that files a claim under this subdivision shall include a statement of
7.33the producer's total biomass thermal production in Minnesota during the quarter covered
7.34by the claim. For each claim and statement of total biomass thermal production filed
7.35under this subdivision, the volume of biomass thermal production must be examined by
8.1an independent certified public accountant in accordance with standards established by
8.2the American Institute of Certified Public Accountants.
8.3(f) Payments shall be made November 15, February 15, May 15, and August 15. A
8.4separate payment shall be made for each claim filed.
8.5(g) Advanced biofuel production for which payment has been received under section
8.641A.13, and renewable chemical production for which payment has been received under
8.7section 41A.14, are not eligible for payment under this section.
