The Minnesota Senate on Wednesday passed a comprehensive energy and commerce budget that invests in making Minnesotans strong consumers without adding increased fees or regulations to businesses as they climb out of the pandemic. Included in this omnibus bill is legislation authored by Senator Paul Utke (R-Park Rapids) that would create a Pellet Incentive program. 

Language included would provide financial incentives to produce industrial wood pellets in Northern Minnesota, specifically in Bemidji and/or Grand Rapids. This program will create new jobs, with good wages, raise $17 million per year in export revenue, and will improve Minnesota’s overall forest health. 

“Our state has a strong logging history that has unfortunately been on the decline, leading to a loss of sawmills and other wood processing facilities,” said Sen. Utke. “I authored this language to create an incentive program that revitalizes this industry and market, while providing a new useful energy source. Creating a market for sawmill and forest harvest residuals will have far-reaching effects that will benefit our entire state, and it’s a great way to open our state to the renewable energy market. I’m happy to see it included in the Energy and Commerce budget.”