Bill to fund metro processing hub for emerald ash borer wood is laid over after testimony on capacity shortfall

House File 2,423, which would support development of a processing facility to handle emerald ash borer (EAB) wood waste in the Twin Cities metro, was laid over after proponents described a regional shortfall in processing capacity and estimated capital needs.

Representative Kavke, the bill's sponsor, outlined the problem and said the proposal would allow additional EAB waste to be processed into biomass that can generate electricity. Stacy Cook, vice president of corporate sustainability for RAR (and president of KOTA Energy), testified that the metro currently lacks enough processing capacity: he said existing facilities are operating at or near capacity and that the shortfall in the seven-county metro could be on the order of more than 200,000 tons per year.

Cook described the proposed site and equipment needs: an asphalt pad, sorting and handling equipment (excavators with thumbs, wheel loaders and fencing), hoop houses and grinders to pre-process material before drying and use in a biofuel/drying project. He said the added pre-processing capacity would reduce long-distance hauling, stabilize tipping fees, and provide outlets for saw logs and other higher-value material.

Cook told the committee that Kota Energy's planned drying project would add 114,000 tons per year of utilization once in service and that a separate Kota facility processing amount would produce approximately 66,000 megawatt-hours per year (figure offered by the witness). He estimated the total capital price tag for a processing site with the described equipment would likely run "close to 10" (the witness used shorthand; testimony treated this as an approximate $10 million figure). Testimony noted existing processing facilities (Pig's Eye Woodyard) that are at capacity and that some smaller arborists are being forced to haul material farther out of the metro.

Members asked about geographic coverage and the expected useful life of the problem; Cook said the EAB-related volume surged faster than earlier projections, that the infestation is expected to continue for years, and that other pests and diseases create additional long-term volumes of wood waste. Supporters suggested the facility would be regionally located to reduce hauling and that the project would offer markets for diverse wood waste.

The committee laid the bill over for possible inclusion; no appropriation was enacted during the hearing.