MN SF111

Establishes a wood pellet production incentive program in Minnesota for facilities that dry and process residual materials from Minnesota forests and sawmills into wood pellets.

Eligible facilities must be located in Minnesota, begin construction by June 30, 2022, and produce at least 50,000 metric tons of wood pellets annually.

Pays eligible facilities $25 per metric ton of wood pellets produced, with a maximum of $2,500,000 per calendar year and eligibility limited to ten years, with no payments after June 30, 2032.

Requires forest residue from parcels larger than 160 acres to be certified by the Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System as sustainably harvested.

Appropriates $2,500,000 from the renewable development account in fiscal year 2021, with a base of $2,500,000 for fiscal years 2022 through 2031, declining to $0 in fiscal year 2032.