HF1500

This bill modifies the advanced biofuel production incentive in Minnesota by amending Minnesota Statutes 2024, section 41A.16, subdivision 7. Key changes include:

1. Raw material sourcing requirement:

   • Facilities must source at least 80% of raw materials from Minnesota.
     
   • If a facility is located within 50 miles of the state border, it may source from within a 100-mile radius.
     
   • Raw materials must come from agriculture, forestry, or solid waste sources.

2. Facility eligibility:

   • Must be in Minnesota and have begun production between April 1, 2023, and June 30, 2025.
     
   • Existing facilities expanding or retrofitting for advanced biofuel are eligible, as well as new facilities.
     
   • Conventional corn ethanol and biodiesel production are not eligible.
     
   • Facilities must produce at least 23,750 MMbtu of advanced biofuel quarterly.

3. Payment rules:

   • No payments will be made for production after June 30, 2035.
     
   • Eligibility for payments is non-transferable to another facility.
     
   • A producer must resume production if they cease operation to regain eligibility.

4. Exclusions:

   • Renewable chemical production receiving incentives under section 41A.17 and biomass thermal production under section 41A.18 are not eligible for payments.
     
   • However, biobutanol is eligible for incentives under this provision.

This bill primarily aims to support advanced biofuel production while ensuring economic benefits for Minnesota by requiring local raw material sourcing.