MN HF95

Establishes a wood pellet production incentive program paying eligible facilities $25 per metric ton of wood pellets produced from forest and mill residues in Minnesota.

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.

Forest residue from parcels larger than 160 acres must be certified by Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree Farm System; smaller parcels require harvest under a forest stewardship plan by a certified logger.

Payments are capped at $2,500,000 per facility annually and limited to 10 years per facility, with all payments ending by June 30, 2032.

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