HF4085

Purpose

Establish and run a biofuel sales volume incentive program starting January 1, 2028. The program provides financial incentives to Minnesota retail gasoline stations for selling eligible biofuel blends during the previous calendar year.

Key terms and definitions

• commissioner: the commissioner of agriculture
• eligible biofuel blend: a blend of gasoline and ethanol containing 11% to 15% denatured ethanol by volume
• retail gasoline station: a location that sells gasoline to end users from fuel dispensers for motor vehicles
• eligible station: a Minnesota-based retail gasoline station that is not a fleet operator, is dispensing an eligible biofuel blend, has not sold eligible biofuel blend before January 1, 2028, submits required monthly reports, and has not received money from the AGRI Biofuels Infrastructure Grant Program

Main provisions

• Establishment and timing: Beginning January 1, 2028, the commissioner of agriculture must create and administer the biofuel sales volume incentive program. Incentives apply to eligible biofuel blends sold in the previous calendar year.
• Incentive payments: Eligible stations receive five cents per gallon of eligible biofuel blend sold, up to a yearly cap of $50,000.
• Eligibility criteria (for a station to qualify): Minnesota location, not a fleet operator, currently dispensing an eligible biofuel blend, no prior sales of eligible biofuel blend before January 1, 2028, monthly reporting as required, and no receipt of money under the AGRI Biofuels Infrastructure Grant Program.
• Application requirements: Stations must apply using a specified form, report the total volume of eligible biofuel blend sold in the calendar year, attach two copies of fuel sales records, and provide any other required information.
• Verification: Reported sales volumes must be verified against fuel sales data submitted to the Department of Commerce under the relevant section.
• Payment process: Payments are made on a first-come, first-served basis within the available funding.
• Rulemaking authority: The commissioner may adopt rules to implement the program.

Appropriation and funding

• A onetime appropriation of $5,000,000 from the general fund in fiscal year 2027 to administer the biofuel incentive program, available until June 30, 2032.
• Administrative scope: Funds and authority to administer the program are provided under this statute.

Significant changes to existing law

• Creates a new, dedicated incentive program specifically for biofuel blends sold at retail gasoline stations in Minnesota.
• Establishes explicit eligibility, reporting, verification, and payment rules tied to the incentive.
• Introduces a targeted funding source and a defined timeframe for the program (one-time appropriation with a sunset-like availability).

Relevant Terms biofuel sales volume incentive program; eligible biofuel blend; denatured ethanol; ethanol by volume; retail gasoline station; Minnesota; fleet operator; AGRI Biofuels Infrastructure Grant Program; Department of Commerce; fuel sales reports; section 239.791; first-come, first-served; incentive payments; five cents per gallon; cap of $50,000; January 1, 2028; calendar year; onetime appropriation; general fund; administration.