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HF1772 (Legislative Session 94 (2025-2026))

Process established to compensate businesses for loss of business opportunity resulting from sale and closure of a biomass energy plant.

Related bill: SF635

AI Generated Summary

This bill, H.F. No. 1772, introduced in the Minnesota House of Representatives, establishes a process to compensate businesses negatively affected by the closure and early termination of a power purchase agreement with a biomass energy plant.

Key provisions of the bill include:

  1. Definitions – Defines key terms such as "biomass plant," "early termination," and "operating income."

  2. Claims Process – Assigns the Office of Administrative Hearings (OAH) the responsibility to manage a claims process for affected businesses. The chief administrative law judge may prescribe forms, determine documentation requirements, and issue compensation awards. Decisions made under this process are final and not subject to judicial review.

  3. Eligibility Criteria – Businesses are eligible for compensation if they:

    • Had a valid contract (written or oral) with the biomass plant or its integrated fertilizer plant as of May 1, 2017.
    • Are located in Minnesota.
    • Suffered a loss of operating income or the value of investments in real or personal property due to the early termination.

  4. Types of Claims – Eligible businesses can file claims for:

    • Decreased operating income, calculated based on pre-termination earnings minus post-termination earnings from alternative opportunities.
    • Loss of value of investments in essential property, with considerations for potential repurposing or salvage value.

  5. Compensation Limitations – Awards for decreased operating income are capped at twice the calculated amount of loss. Any compensation received from insurance or other sources must be deducted from the awarded amount.

  6. Priority Considerations – Priority in compensation is given to businesses that have made efforts to mitigate their losses through alternative business opportunities.

  7. Award Process and Deadlines – The application process opens by August 1, 2025. Businesses must submit claims within 60 days, and all preliminary awards must be issued within 120 days. Final awards must be determined within 60 days of any reconsideration requests. Payments will be issued within 45 days after final award decisions.

  8. Expiration – The bill’s provisions will expire on June 30, 2027.

This bill seeks to provide financial relief to businesses impacted by the closure of a biomass energy plant by compensating them for lost business opportunities and investments.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
March 02, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Identifies a specific biomass plant under this statute for reference in this legislation.",
      "modified": []
    },
    "citation": "116C.779",
    "subdivision": "subdivision 1 paragraph f"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the power purchase agreement authorization under this statute in relation to the biomass plant.",
      "modified": []
    },
    "citation": "216B.2424",
    "subdivision": "subdivision 9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines records submitted to the Office of Administrative Hearings as business data under this statute.",
      "modified": []
    },
    "citation": "13.591",
    "subdivision": ""
  }
]

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