Ethanol Production Incentive (Minnesota)

From Open Energy Information


Last modified on February 12, 2015.

Financial Incentive Program

Place Minnesota

Name Ethanol Production Incentive
Incentive Type Performance-Based Incentive
Applicable Sector Industrial
Eligible Technologies Ethanol
Active Incentive No
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 0.20/gallon

Expiration Date 2010-06-30

Maximum Incentive 3 million/year

Program Administrator Minnesota Department of Agriculture

References DSIRE[1]


Minnesota offers a production incentive of $0.20 per gallon for each gallon of ethanol produced on or before June 30, 2000, or ten years after the start of production, whichever is later. However, as a result of the passage of SF 905 (2003), this incentive has been reduced to $0.13 per gallon for ethanol produced from July 1, 2003, through June 30, 2007. Beginning July 1, 2007, the payment rate will return to the statutory amount of $0.20 per gallon. At this point, if funding is available, Minnesota will repay producers $0.07 per gallon for ethanol produced from July 1, 2003, to June 30, 2007.

Payments will be made to either the original producer or the secondary processor, but not both. This incentive applies to a maximum of 15,000,000 gallons of fuel per producer per year. The maximum payment to a producer is $3,000,000 per fiscal year. No payments will be made after June 30, 2010.

Authorities (Please contact the if there are any file problems.)

Authority 1: Minn. Stat. § 41A.09
Date Enacted 1997
Expiration Date 2010-06-30

Incentive Contact

Contact Name Alan Dupay
Department Minnesota Department of Agriculture
Division Finance and Budget
Address 90 West Plato Boulevard
Place St. Paul, Minnesota
Zip/Postal Code 55107-2094
Phone (651) 296-1686


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"