Advanced biofuel production incentive and renewable chemical production incentive provisions modification

1.1 A bill for an act​ 1.2 relating to agriculture; modifying advanced biofuel production incentive and​ 1.3 renewable chemical production incentive provisions; amending Minnesota Statutes​ 1.4 2022, sections 41A.16, subdivision 7; 41A.17, subdivision 6; 41A.18, subdivision​ 1.5 6.​ 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​ 1.7 Section 1. Minnesota Statutes 2022, section 41A.16, subdivision 7, is amended to read:​ 1.8 Subd. 7. Eligibility for participants after April 1, 2023. (a) A facility eligible for​ 1.9 payment under this section must source from Minnesota at least 80 percent raw materials​ 1.10 from Minnesota of the biomass used to produce an advanced biofuel. If a facility is sited​ 1.11 50 miles or less from the state border, raw materials biomass that the facility uses to produce​ 1.12 an advanced biofuel may be sourced from out of state when at least 80 percent of the biomass​ 1.13 is sourced within a 100-mile radius of the facility or from Minnesota. Raw materials must​ 1.14 be from agricultural or forestry sources or from solid waste. The facility must be located in​ 1.15 Minnesota, must begin production at a specific location after April 1, 2023, and before June​ 1.16 30, 2025, and must not begin operating above 23,750 MMbtu of quarterly advanced biofuel​ 1.17 production before July 1, 2015. Eligible facilities include existing companies and facilities​ 1.18 that are adding advanced biofuel production capacity, or retrofitting existing capacity, as​ 1.19 well as new companies and facilities. Production of conventional corn ethanol and​ 1.20 conventional biodiesel is not eligible. Eligible advanced biofuel facilities must produce at​ 1.21 least 23,750 1,500 MMbtu of advanced biofuel quarterly.​ 1.22 (b) No payments shall be made for advanced biofuel production that occurs after June​ 1.23 30, 2035, for those eligible biofuel producers under paragraph (a).​ 1​Section 1.​ 23-00337 as introduced​01/04/23 REVISOR EB/AD​ SENATE​ STATE OF MINNESOTA​ S.F. No. 2667​NINETY-THIRD SESSION​ (SENATE AUTHORS: KUPEC)​ OFFICIAL STATUS​D-PG​DATE​ Introduction and first reading​03/07/2023​ Referred to Agriculture, Broadband, and Rural Development​ 2.1 (c) An eligible producer of advanced biofuel shall not transfer the producer's eligibility​ 2.2 for payments under this section to an advanced biofuel facility at a different location.​ 2.3 (d) A producer that ceases production for any reason is ineligible to receive payments​ 2.4 under this section until the producer resumes production.​ 2.5 (e) Renewable chemical production for which payment has been received under section​ 2.6 41A.17, and biomass thermal production for which payment has been received under section​ 2.7 41A.18, are not eligible for payment under this section.​ 2.8 (f) Biobutanol is eligible under this section.​ 2.9 Sec. 2. Minnesota Statutes 2022, section 41A.17, subdivision 6, is amended to read:​ 2.10 Subd. 6. Eligibility for participants after April 1, 2023. (a) A facility eligible for​ 2.11 payment under this program must source from Minnesota at least 80 percent biobased​ 2.12 content from Minnesota. For the purposes of this subdivision, "biobased content" means a​ 2.13 chemical, polymer, monomer, or plastic that is not sold primarily for use as food, feed, or​ 2.14 fuel and that has a biobased percentage of at least 51 percent as determined by testing​ 2.15 representative samples using American Society for Testing and Materials specification​ 2.16 D6866 of the biomass used to produce a renewable chemical. If a facility is sited 50 miles​ 2.17 or less from the state border, biobased content must biomass that the facility uses to produce​ 2.18 a renewable chemical may be sourced from out of state when at least 80 percent of the​ 2.19 biomass is sourced from within a 100-mile radius of the facility or from Minnesota. Biobased​ 2.20 content must be from agricultural or forestry sources or from solid waste. The facility must​ 2.21 be located in Minnesota, must begin production at a specific location after April 1, 2023,​ 2.22 and before June 30, 2025, and must not begin production of 750,000 250,000 pounds or​ 2.23 more of chemicals quarterly before January 1, 2015. Eligible facilities include existing​ 2.24 companies and facilities that are adding production capacity, or retrofitting existing capacity,​ 2.25 as well as new companies and facilities. Eligible renewable chemical facilities must produce​ 2.26 at least 750,000 250,000 pounds of renewable chemicals quarterly. Renewable chemicals​ 2.27 produced through processes that are fully commercial before January 1, 2000, are not​ 2.28 eligible.​ 2.29 (b) No payments shall be made for renewable chemical production that occurs after June​ 2.30 30, 2035, for those eligible renewable chemical producers under paragraph (a).​ 2.31 (c) An eligible producer of renewable chemicals shall not transfer the producer's eligibility​ 2.32 for payments under this section to a renewable chemical facility at a different location.​ 2​Sec. 2.​ 23-00337 as introduced​01/04/23 REVISOR EB/AD​ 3.1 (d) A producer that ceases production for any reason is ineligible to receive payments​ 3.2 under this section until the producer resumes production.​ 3.3 (e) Advanced biofuel production for which payment has been received under section​ 3.4 41A.16, and biomass thermal production for which payment has been received under section​ 3.5 41A.18, are not eligible for payment under this section.​ 3.6 Sec. 3. Minnesota Statutes 2022, section 41A.18, subdivision 6, is amended to read:​ 3.7 Subd. 6. Eligibility for participants after April 1, 2023. (a) A facility eligible for​ 3.8 payment under this section must source from Minnesota at least 80 percent raw materials​ 3.9 from Minnesota of the biomass used for biomass thermal production. If a facility is sited​ 3.10 50 miles or less from the state border, raw materials should biomass that the facility uses​ 3.11 for biomass thermal production may be sourced from out of state when at least 80 percent​ 3.12 of the biomass is sourced from within a 100-mile radius of the facility or from Minnesota.​ 3.13 Raw materials Biomass must be from agricultural or forestry sources. The facility must be​ 3.14 located in Minnesota, must have begun production at a specific location after April 1, 2023,​ 3.15 and before June 30, 2025, and must not begin before July 1, 2015. Eligible facilities include​ 3.16 existing companies and facilities that are adding production capacity, or retrofitting existing​ 3.17 capacity, as well as new companies and facilities. Eligible biomass thermal production​ 3.18 facilities must produce at least 250 MMbtu of biomass thermal quarterly.​ 3.19 (b) No payments shall be made for biomass thermal production that occurs after June​ 3.20 30, 2035, for those eligible biomass thermal producers under paragraph (a).​ 3.21 (c) An eligible producer of biomass thermal production shall not transfer the producer's​ 3.22 eligibility for payments under this section to a biomass thermal production facility at a​ 3.23 different location.​ 3.24 (d) A producer that ceases production for any reason is ineligible to receive payments​ 3.25 under this section until the producer resumes production.​ 3.26 (e) Biofuel production for which payment has been received under section 41A.16, and​ 3.27 renewable chemical production for which payment has been received under section 41A.17,​ 3.28 are not eligible for payment under this section.​ 3​Sec. 3.​ 23-00337 as introduced​01/04/23 REVISOR EB/AD​