MN HF3484

Establishes industrial wood pellet incentive program administered by the commissioner of agriculture, providing payments for eligible producers from July 1, 2020 through June 30, 2032.

Requires eligible facilities to source at least 80 percent of forest biomass from Minnesota (or within 100 miles if sited within 50 miles of state border), produce at least 100,000 tons annually, and begin production by June 30, 2022.

Provides payment rates of $12 per ton for pellets comprised of at least 90 percent ash tree biomass and $10 per ton for other pellets, with a maximum of 100,000 tons eligible for payment per facility per fiscal year.

Requires forest biomass from parcels greater than 160 acres to be certified by Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System; smaller parcels and federal land must be harvested by trained loggers with forest stewardship plans.

Establishes quarterly claim process requiring certified public accounting firm verification of tonnage, with payments issued by February 15, May 15, August 15, and November 15; payments available for up to ten years after production begins.