The bill proposes an appropriation of $4,500,000 for fiscal years 2026 and 2027 from the general fund to the Minnesota commissioner of agriculture for biofuel infrastructure grants. These grants are intended to assist retail petroleum dispensers and fuel storage tanks in upgrading their equipment to meet biofuel replacement goals as outlined in Minnesota Statutes, section 239.7911. Eligible dispensers must have no more than 15 sites located in Minnesota and must use the funds to replace or upgrade equipment that cannot be certified for E25. The maximum grant award per station is set at $200,000, with any unused funds from 2026 being available for 2027. The base appropriation for fiscal year 2028 and beyond is established at $3,000,000.

Additionally, the bill mandates that the commissioner of agriculture collaborate with biofuel stakeholders to implement the grant program and submit an annual report by January 15 to the relevant legislative committees. This report will detail various aspects of the biofuels infrastructure financial assistance program, including the number and types of projects financed, the amount of funding leveraged, the geographic distribution of projects, market expansion related to infrastructure upgrades, demographics of served areas, program costs, and the number of grants awarded to minority-owned or female-owned businesses.