Environmental Quality Board required to order a generic environmental impact statement on sustainable aviation fuel, and temporary moratorium on sustainable aviation fuel tax credit and grants placed.

A bill for an act

relating to agriculture; requiring the Environmental Quality Board to order a generic

environmental impact statement on sustainable aviation fuel; placing a temporary

moratorium on sustainable aviation fuel tax credit and grants; amending Minnesota

Statutes 2024, section 41A.30, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 41A.30, subdivision 2, is amended to read:

Subd. 2.

Tax credit establishment.

(a) A qualifying taxpayer may claim a tax credit

against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation

fuel that is:

(1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota;

and

(2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is

for use as fuel in an aircraft departing from an airport in Minnesota.

(b)
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A qualifying taxpayer must apply to the commissioner for the certification and

allocation of a tax credit in a form and manner prescribed by the commissioner.
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The credit
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may be claimed only after approval and certification by the commissioner and
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is limited to

the amount stated on the credit certificate issued under subdivision 3
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. A qualifying taxpayer

must apply to the commissioner for certification and allocation of a credit in a form and

manner prescribed by the commissioner.
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and may be claimed only after:
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(1) approval and certification by the commissioner; and

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(2) the Environmental Quality Board completes a generic environmental impact statement

on sustainable aviation fuel.

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(c) A qualifying taxpayer may claim a credit for blending or producing sustainable

aviation fuel, but not both. If sustainable aviation fuel is blended with aviation gasoline or

jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included

in the blended fuel.

(d) If the amount of credit that the taxpayer is eligible to receive under this section

exceeds the liability for tax under chapter 290, the commissioner of revenue must refund

the excess to the taxpayer.

Sec. 2.
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TEMPORARY MORATORIUM ON DEPARTMENT OF AGRICULTURE

GRANTS TO SUSTAINABLE AVIATION FUEL PRODUCERS AND BLENDERS.
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The commissioner of agriculture must not award any grant to a producer or blender of

sustainable aviation fuel before the Environmental Quality Board completes a generic

environmental impact statement on sustainable aviation fuel.

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Sec. 3.
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GENERIC ENVIRONMENTAL IMPACT STATEMENT ON SUSTAINABLE

AVIATION FUEL.
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The Environmental Quality Board must order a generic environmental impact statement

to review the environmental impact of the production and use of sustainable aviation fuel

as defined by Minnesota Statutes, section 41A.30, subdivision 1, paragraph (g).

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