The bill amends Minnesota Statutes 2024, section 41A.16, subdivision 7, to modify the advanced biofuel production incentive. It establishes that facilities eligible for payments must source at least 80 percent of their raw materials from Minnesota, with specific provisions for facilities located near the state border. The bill specifies that eligible advanced biofuel facilities must produce a minimum of 23,750 MMbtu of biofuel quarterly and clarifies that production of conventional corn ethanol and biodiesel is not eligible for incentives. Additionally, it states that no payments will be made for advanced biofuel production occurring after June 30, 2035.

The bill also includes provisions regarding the transfer of eligibility for payments, stating that producers cannot transfer their eligibility to a different facility location. Furthermore, it establishes that producers who cease production for any reason will be ineligible for payments until they resume production. Notably, the bill specifies that while renewable chemical production and biomass thermal production are not eligible for payments under this section, biobutanol is included as an eligible product.

Statutes affected:
Introduction: 41A.16