Bill > HF1772

This bill establishes a detailed process for compensating businesses that suffered financial losses due to the early termination of a power purchase agreement with a specific biomass energy plant in Minnesota. The bill creates a claims process administered by an administrative law judge from the Office of Administrative Hearings, where eligible businesses can seek compensation for either decreased operating income or loss of value in property investments directly related to their contract with the biomass plant. To qualify, businesses must have been operating under a valid contract with the biomass plant as of May 1, 2017, be located in Minnesota, and demonstrate financial harm from the contract's early termination. The claims process includes specific requirements for documenting losses, such as showing five-year operating income history and exploring alternative business opportunities. The bill caps compensation at twice the annual operating income loss and requires deducting any insurance payments or alternative value from property. A special biomass business compensation account will be established, funded by $40 million transferred from the renewable development account over two years, to pay these claims. The process has strict timelines, with claims to be filed by a specific deadline in 2025, preliminary awards issued within 120 days, and final awards completed by early 2026. The entire program is set to expire on June 30, 2027, ensuring a time-limited approach to resolving these business compensation claims.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1772&ssn=0&y=2025