S.F. No. 1015 - Biomass Business Compensation

• Office of Administrative Hearings administers a claims process for businesses negatively affected by early termination of a power purchase agreement with a biomass plant.

• Eligible businesses must have had a valid contract with the biomass or fertilizer plant as of May 1, 2017, be located in Minnesota, and demonstrate decreased operating income or loss of investment value resulting from the early termination.

• Businesses may claim compensation for decreased operating income (capped at two times the five-year average income loss) or loss of property investment value, with deductions for alternative business opportunities, property repurposing value, and insurance settlements.

• $40 million total is appropriated from the renewable development account ($20 million on July 1, 2021, and $20 million on July 1, 2022) to fund compensation awards, with claims deadline of August 1, 2021, and final awards by June 30, 2023.

• All provisions expire June 30, 2023, with awards adjusted proportionally if funding is insufficient and awards final without judicial review or state liability admission.