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HF1500 (Legislative Session 94 (2025-2026))

Advanced biofuel production incentive modified.

Related bill: SF1359

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 25, 2025HouseFloorActionIntroduction and first reading, referred toAgriculture Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A requirement that facilities must source at least 80% raw materials from Minnesota."
      ],
      "removed": [
        "No specific removal of criteria noted, but changes eligibility from prior conditions."
      ],
      "summary": "This bill amends eligibility criteria for the advanced biofuel production incentive under section 41A.16.",
      "modified": [
        "Changes the eligibility time frame and production capacity criteria from previous stipulations."
      ]
    },
    "citation": "41A.16"
  },
  {
    "analysis": {
      "added": [
        "Clarification that renewable chemical production receiving payments is ineligible under section 41A.16."
      ],
      "removed": [],
      "summary": "Section 41A.17 involves renewable chemical production not eligible for payment under section 41A.16 as per amendments.",
      "modified": []
    },
    "citation": "41A.17"
  },
  {
    "analysis": {
      "added": [
        "Clarification that biomass thermal production receiving payments is ineligible under section 41A.16."
      ],
      "removed": [],
      "summary": "Section 41A.18 involves biomass thermal production not eligible for payment under section 41A.16 as per amendments.",
      "modified": []
    },
    "citation": "41A.18"
  }
]

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