MN HF4397

Imposes a revenue-neutral environmental emissions assessment on primary carbon-based fuels (coal, natural gas, liquid fuels, municipal waste) starting January 1, 2021, beginning at $50 per ton of CO2 emitted and increasing $5 per ton annually to a maximum of $200 per ton.

Establishes a carbon assessment dividend account funded by assessment revenues and allocates funds for refunds to businesses implementing energy projects, property tax credits for agricultural conservation practices, income tax dividends to individuals, and payroll tax rebates to employers.

Provides individuals with refundable income tax dividends (including spouses and dependents age 16+) and employers with payroll tax rebates funded by assessment revenues divided based on energy consumption shares between households and businesses.

Creates a $50 million energy revolving loan program (in fiscal year 2022) to provide low-interest loans to businesses for energy efficiency and renewable energy projects, with loan authority expiring December 31, 2031.

Requires annual reports to the legislature beginning in 2023 containing assessment collections, dividend and rebate payments, emissions reductions, and recommendations on exemptions and assessment adjustments.