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S.F. No. 2101 - Renewable Chemical and Advanced Biofuel Development
 
Author: Senator Tom Saxhaug
 
Prepared By:
 
Date: March 13, 2014



 

S. F. No. 2101 establishes four programs in the Minnesota Department of Agriculture (MDA) for renewable chemicals and advanced biofuels.  The following programs are established in the bill:

  1. Renewable chemical and advanced biofuel capital equipment loans; 
  2. Advanced biofuel development producer payments;
  3. Renewable chemical production incentive producer payments; and
  4. Biomass thermal production incentive producer payments.
     

Section 1 [Renewable chemical and advanced biofuel capital equipment loans] establishes a revolving loan account for the Commissioner of Agriculture to make capital equipment loans for advanced biofuel and renewable chemical production facilities.

Section 2 [Advanced biofuel development] establishes an advanced biofuel development program in the MDA to make production incentive payments for advanced biofuel facilities that produce advanced biofuels from agricultural, forestry, or municipal solid waste sources. The payment schedule is:  $2.1053 per million British thermal units produced for advanced biofuel production from cellulosic biomass; and $1.03 per million British thermal units for advanced biofuel production from sugar or starch. The payments are for the first ten years of production at a facility.  The overall cap on payments for all eligible advanced biofuel producers is $30 million per fiscal year.

Section 3 [Renewable chemical production incentive] establishes a renewable chemical production incentive program in the MDA to make production incentive payments for renewable chemical production facilities that produce renewable chemicals from agricultural, forestry, or municipal solid waste sources. The payment schedule is:  three cents per pound of sugar-derived renewable chemical; three cents per pound of cellulosic sugar; and six cents per pound of cellulosic-derived renewable chemical.  The payments are for the first ten years of production at a facility.  The overall cap on payments for all eligible advanced biofuel producers is $30 million per fiscal year.

Section 4 [Biomass thermal production incentive] establishes a biomass thermal production incentive program in the MDA to make production incentive payments for biomass thermal production facilities that produce biomass thermal from agricultural, forestry, or municipal solid waste sources. The payment schedule is $5 per million British thermal units produced. The payments are for the first ten years of production at a facility. The overall cap on payments for all eligible advanced biofuel producers is $1 million per fiscal year.

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