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The Minnesota State Legislature established the Bioincentive Program in 2015 to encourage commercial-scale production of advanced biofuels, renewable chemicals, and biomass thermal energy through production incentive payments.

To receive incentive payments, production facilities 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.

Production facilities may receive payments for up to ten years on a first-come, first-served basis while funding lasts.

Note: If production facilities are 50 miles or less from the state border, materials may be sourced within a 100-mile radius.