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Bill to create registry for locally produced 'clean' ammonia advances in committee discussion; authors amendment adopted

2508546 · March 5, 2025
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Summary

Senate File 1710 would fund development of a registry to verify and track ammonia produced with electricity; the committee adopted an author’s amendment providing fee credits to Minnesota entities and laid the bill over for possible inclusion.

Senate File 1710, the "Minnesota Made Ammonia Act," would authorize state support for development of a registry to verify and track ammonia produced using electricity and renewable energy sources. The measure was presented March 5 to the Senate Energy, Utilities, Environment and Climate Committee and the committee adopted an author's A2 amendment before hearing testimony.

Sponsor remarks: Senator Putnam said Minnesota researchers at the University of Minnesota Morris pioneered methods to produce ammonia using wind and other renewables, and described a one‑time appropriation to MREDS (Midwest Renewable Energy Tracking System) to develop software and a registry that would issue "ammonia certificates" documenting each ton of ammonia produced with renewable energy.

Amendment adopted: The committee adopted an A2 authors amendment before testimony. During committee Q&A, Rob Davis, chief growth officer for MREDS, described the amendment’s mechanics: the amendment directs MREDS to credit Minnesota businesses up to the equivalent amount of the grant total for fees associated with generating, transferring and retiring green ammonia certificates through Jan. 1, 2035, with a single Minnesota business limited to no more than $500,000 in credits. Davis said MREDS would make the registry available nationwide but that RDA‑sourced support would be targeted to assist Minnesota businesses.

Testimony and support: Industry and trade groups, technology companies and agriculture and research organizations testified in support. Testifiers included Rob Davis (MREDS), Rachel Stuckey (Minnesota Conservative Energy Forum), George Dammer (Clean Energy Economy Minnesota/SEAM), Roger Freeman (Talus Ag), Luca Zullo (Agricultural Utilization Research Institute) and a Minnesota farmer, Eric Haddlestead. Supporters said a registry will prevent double counting, create a verifiable commodity for low‑carbon ammonia, and enable markets (including sustainable aviation fuel and decarbonizing steel production) to value locally produced low‑carbon ammonia.

Key technical and policy points: Testifiers described how registries issue unique certificates for megawatt‑hours and prevent double claims; MREDS staff said they would apply established registry practices to ammonia certificates. Committee members asked about fund source language (RDA versus general fund) and about the geographic scope of MREDS; Davis said MREDS would operate nationwide but the amendment creates targeted credits for Minnesota entities. Senators asked whether and how federal tax incentives (e.g., the 45V clean hydrogen credit and IRA rules) would interact with certificates; testifiers said the registry would be designed to meet applicable federal standards.

Administrative details: Committee discussion noted an agency administration fee line in the bill that reserved up to $10,000 for Commerce to manage the grant; sponsors said that cap signaled a small administrative need and that MREDS could recover ongoing costs via published fees. Senator Matthews expressed reservations about the REC model and nonprofit delivery; testimony answered that MREDS publishes flat fees and plans to credit Minnesota businesses as the amendment requires.

Disposition: The committee laid Senate File 1710 over for possible inclusion; the bill was not passed or appropriated at the March 5 hearing.