HF 47 Summary

• Establishes an oriented strand board (OSB) production incentive program administered by the Commissioner of Agriculture, providing $7.50 per 1,000 board square feet of OSB produced for ten years after production begins.

• Eligible facilities must be new Minnesota-based OSB plants with capital investments exceeding $250 million, sourcing at least 80 percent of raw materials from Minnesota, beginning construction by June 30, 2022, and production by June 30, 2024.

• Eligible facilities must produce at least 200 million board square feet annually, with payments limited to 400 million board square feet per producer per fiscal year and 400 million board square feet total across all eligible producers per fiscal year.

• Requires forest resources to comply with sustainable forestry standards (Sustainable Forestry Initiative, Forest Stewardship Council, or American Tree Farm System) and mandates quarterly certified public accounting verification of production claims.

• Appropriates $1.5 million from the forest management investment account in fiscal year 2025 and $3 million annually from the general fund beginning fiscal year 2026, with program effective July 1, 2021, and payments ending June 30, 2036.