Bill > SF635

This bill establishes a comprehensive compensation process for businesses negatively impacted by the early termination of a power purchase agreement with a specific biomass energy plant in Minnesota. The Office of Administrative Hearings will administer a claims process where eligible businesses can seek compensation for two types of losses: decreased operating income and loss of value in investments essential to their operations with the biomass plant. To be eligible, businesses must have had a valid contract with the biomass plant as of May 1, 2017, be located in Minnesota, and have suffered financial losses due to the early contract termination. Businesses must provide detailed financial documentation demonstrating their losses, including five-year income records and evidence of alternative business opportunities. The bill caps compensation awards at twice the annual income loss and requires deducting any insurance payments or alternative revenue sources. A special biomass business compensation account will be created, funded by $40 million transferred from the renewable development account over two years, to pay these claims. The claims process will open on August 1, 2025, with strict deadlines for filing, preliminary awards, and final determinations. Administrative costs for the program are capped at $200,000, and the entire program will expire on June 30, 2027.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0635&ssn=0&y=2025