MN HF536

Creates three incentive programs for advanced biofuel production, renewable chemical production, and biomass thermal production in Minnesota with payment rates ranging from $0.03 to $5.00 per unit of production for ten years after start of production.

Requires eligible facilities to source at least 80 percent raw materials from Minnesota (or within 100 miles if within 50 miles of state border), be located in Minnesota, and begin production by June 30, 2025; facilities must produce minimum annual thresholds (95,000 MMbtu for biofuel, 3,000,000 pounds for chemicals, 1,000 MMbtu for thermal).

Mandates producers using agricultural cellulosic biomass submit responsible sourcing plans addressing soil quality, invasive species, wildlife habitat, and greenhouse gas emissions, with annual reporting and potential payment reduction for non-compliance.

Provides 20 percent bonus payments for production from perennial crops or cover crop acres; requires forestry-derived biomass to comply with Minnesota harvesting guidelines and forest certification standards for parcels over 160 acres.

Appropriates $2,500,000 for fiscal year 2016 and $2,500,000 for fiscal year 2017 to the commissioner of agriculture for incentive payments, with unused appropriations available until spent and up to 4.5 percent available for program administration.