SF3380

Purpose of the Bill

The bill aims to support the development of bioindustrial facilities by providing financial assistance to businesses involved in producing advanced biofuels, renewable chemicals, and biomass thermal energy. This initiative focuses on boosting economic development and promoting sustainable energy industries in Minnesota.

Main Provisions

• Funding Allocation: The bill allocates $15 million for the fiscal year 2026 from the Minnesota Forward Fund, part of the climate and economic development fund, specifically for bioindustrial facilities.
• Eligible Expenses: Funding is available for businesses that have already invested in land development, utility infrastructure, building construction, and the purchase of machinery and equipment for constructing and operating bioindustrial facilities.
• Application Process: Starting August 1, 2026, the commissioner of employment and economic development will accept applications from existing facilities that have been producing advanced biofuels, renewable chemicals, or biomass thermal energy since before June 30, 2024.
• Payment Conditions: Payments will be made to companies that previously received incentive payments under certain Minnesota statutes and submitted claims by April 30, 2025, which remained unpaid as of May 15, 2025.

Significant Changes to Existing Law

• The bill includes a cancellation of $15 million initially appropriated for the fiscal year 2024 from the Minnesota Forward Fund as specified in a previous law, redirecting these funds to the new initiative supporting bioindustrial facilities.

Relevant Terms

advanced biofuels, renewable chemicals, biomass thermal energy, Minnesota Forward Fund, bioindustrial facilities, economic development, fiscal appropriation, incentive payments, sustainable energy.