In 2015, Minnesota State Legislature established the Bioincentive Program to encourage commercial-scale production of advanced biofuels, renewable chemicals, and biomass thermal energy. The Legislature established the payment rates, criteria for minimum production levels, and standards for the sourcing of biomass feedstock.
An eligible producer may receive payment per unit of production under the program. There are minimum production levels required for eligibility. A maximum amount is set that can be claimed in any one year. A producer may collect payments through the program for ten years. The program is scheduled to end in 2035.
Who is Eligible?
To receive incentive payments, production faculties within Minnesota must:
- begin producing biofuels, renewable chemicals, or biomass thermal energy before June 30, 2025,
- meet quarterly minimum production levels,
- use biomass from agricultural or forestry sources or the organic portion of solid waste,
- source 80 percent of renewable biomass from Minnesota, and
- harvest agricultural and forestry biomass in ways that do not harm the environment
What are the terms?
Production facilities may receive payments for up to ten years; if the total amount for which all producers are eligible in a quarter exceeds the amount available for payments, the commissioner shall make the payments on a pro-rata basis.
By the last day of October, January, April, and July, each eligible producer shall file a claim for payment for eligible production during the preceding three calendar months.
What funding is available?
Funding is from the Agricultural Growth, Research, and Innovation (AGRI) program appropriation. Funding was $2.5 million for the years 2020 and 2021. Funding has increased to $3 million for the years 2022 and 2023.
For each fiscal year, unspent funds are available for an additional year. The funds in the additional year are available for the entire AGRI program.
How can we help?
Whether you only have a few questions, need an examination as part of your application and want to know what this type of reporting requires, or if you would like us to provide other additional support on your application, we’re here to help!
Please reach out to us if you have any questions.
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