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 allowances for facilities located within 50 miles of the state border to source from a 100-mile radius. The bill specifies that eligible facilities must begin production after April 1, 2023, and before June 30, 2025, and must produce a minimum of 23,750 MMbtu of advanced biofuel quarterly. Notably, the production of conventional corn ethanol and biodiesel is excluded from eligibility.

Additionally, the bill stipulates that no payments will be made for advanced biofuel production occurring after June 30, 2035, and that eligibility for payments cannot be transferred to a different facility location. Producers who cease production will lose their eligibility until they resume. The bill also clarifies that while renewable chemical production and biomass thermal production are not eligible for payments under this section, biobutanol is included as an eligible advanced biofuel.

Statutes affected:
Introduction: 41A.16