CHAPTER 17-02ETHANOL PRODUCTION INCENTIVES17-02-01. Ethanol production incentives - Report to budget section.1.a.An ethanol plant that was in operation before July 1, 1995, and which has a<br>production capacity of fewer than fifteen million gallons [56781000 liters] of<br>ethanol may receive up to nine hundred thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.b.An ethanol plant that was in operation before July 1, 1995, and which produced<br>fifteen million gallons [56781000 liters] or more in the previous fiscal year is<br>eligible to receive up to four hundred fifty thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.2.The agricultural products utilization commission shall determine the amount of<br>production incentives to which a plant is entitled under this section by multiplying the<br>number of gallons of ethanol produced by the plant and marketed to a distributor or<br>wholesaler by forty cents. The commission shall forward the production incentives<br>to the plant upon receipt of an affidavit by the plant indicating that the ethanol is to<br>be sold at retail to consumers. The affidavit must be accompanied by an affidavit<br>from a wholesaler or retailer indicating that the ethanol is to be sold at retail to<br>consumers.3.Within ninety days after the conclusion of the plant's fiscal year, the plant shall<br>submit to the budget section of the legislative management a statement by a<br>certified public accountant indicating whether the plant produced a profit from its<br>operation in the preceding fiscal year, after deducting the payments received under<br>this section.17-02-02. Ethanol production incentives - Payments for increased production. If anethanol plant that was in operation in this state before July 1, 1995, increases its production by<br>the lesser of ten million gallons [37854000 liters] or fifty percent of its production capacity during<br>any twelve-month period beginning on or after July 1, 2005, that plant is eligible to receive<br>ethanol production incentive payments under section 17-02-03 on its increased production.17-02-03.Ethanol production incentive - Calculation - Payment.The office ofrenewable energy and energy efficiency shall provide quarterly to each eligible facility a<br>production incentive based on the average North Dakota price per bushel of corn received by<br>farmers during the quarter, as established by the North Dakota agricultural statistics service and<br>the average North Dakota rack price per gallon [3.79 liters] of ethanol during the quarter, as<br>compiled by AXXIS petroleum.The amount payable as a production incentive must becalculated by including the sum arrived at under subsection 1 with the sum arrived at under<br>subsection 2.1.a.If the average quarterly price per bushel of corn is above one dollar and eighty<br>cents, for each one cent by which the quarterly price is above one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall add to<br>the amount payable under this section one-tenth of one cent times the number<br>of gallons of ethanol produced by the eligible facility during the quarter.b.If the average quarterly price per bushel of corn is one dollar and eighty cents,<br>the office of renewable energy and energy efficiency shall add zero to any<br>amount payable under this section.Page No. 1c.If the average quarterly price per bushel of corn is below one dollar and eighty<br>cents, for each one cent by which the quarterly price is below one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall subtract<br>from the amount payable under this section one-tenth of one cent times the<br>number of gallons of ethanol produced by the eligible facility during the quarter.2.a.If the average quarterly rack price per gallon of ethanol is above one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>above one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall subtract from the amount payable under this section, two-tenths<br>of one cent times the number of gallons of ethanol produced by the eligible<br>facility during the quarter.b.If the average quarterly rack price per gallon of ethanol is one dollar and thirty<br>cents, the office of renewable energy and energy efficiency shall subtract zero<br>from any amount payable under this section.c.If the average quarterly rack price per gallon of ethanol is below one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>below one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall add to the amount payable under this section two-tenths of one<br>cent times the number of gallons of ethanol produced by the eligible facility<br>during the quarter.17-02-04. Subsidy limitations. The office of renewable energy and energy efficiencymay not distribute more than one million six hundred thousand dollars per eligible facility annually<br>in payments under section 17-02-03 and may not distribute any payment that would create a<br>negative ethanol production incentive fund balance. If the incentive fund balance is insufficient to<br>pay all valid incentive requests received in any quarter, the funds available must be paid out on a<br>pro rata basis and obligations may not be carried forward. No eligible facility may receive state<br>payments that exceed a cumulative total of ten million dollars or for longer than ten years.<br>Change in ownership of an eligible facility does not affect the ten million dollar cumulative total<br>allowed to be paid to that eligible facility under this section or the ten-year limitation contained in<br>this section.17-02-05. Ethanol production incentive fund - Continuing appropriation. There iscreated in the state treasury a special fund known as the ethanol production incentive fund. The<br>fund consists of transfers made in accordance with section 39-04-39 and deposits made in<br>accordance with section 57-43.1-03.1. All moneys in the fund are appropriated on a continuing<br>basis to the office of renewable energy and energy efficiency for use in paying ethanol production<br>incentives under this chapter.Page No. 2Document Outlinechapter 17-02 ethanol production incentives
CHAPTER 17-02ETHANOL PRODUCTION INCENTIVES17-02-01. Ethanol production incentives - Report to budget section.1.a.An ethanol plant that was in operation before July 1, 1995, and which has a<br>production capacity of fewer than fifteen million gallons [56781000 liters] of<br>ethanol may receive up to nine hundred thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.b.An ethanol plant that was in operation before July 1, 1995, and which produced<br>fifteen million gallons [56781000 liters] or more in the previous fiscal year is<br>eligible to receive up to four hundred fifty thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.2.The agricultural products utilization commission shall determine the amount of<br>production incentives to which a plant is entitled under this section by multiplying the<br>number of gallons of ethanol produced by the plant and marketed to a distributor or<br>wholesaler by forty cents. The commission shall forward the production incentives<br>to the plant upon receipt of an affidavit by the plant indicating that the ethanol is to<br>be sold at retail to consumers. The affidavit must be accompanied by an affidavit<br>from a wholesaler or retailer indicating that the ethanol is to be sold at retail to<br>consumers.3.Within ninety days after the conclusion of the plant's fiscal year, the plant shall<br>submit to the budget section of the legislative management a statement by a<br>certified public accountant indicating whether the plant produced a profit from its<br>operation in the preceding fiscal year, after deducting the payments received under<br>this section.17-02-02. Ethanol production incentives - Payments for increased production. If anethanol plant that was in operation in this state before July 1, 1995, increases its production by<br>the lesser of ten million gallons [37854000 liters] or fifty percent of its production capacity during<br>any twelve-month period beginning on or after July 1, 2005, that plant is eligible to receive<br>ethanol production incentive payments under section 17-02-03 on its increased production.17-02-03.Ethanol production incentive - Calculation - Payment.The office ofrenewable energy and energy efficiency shall provide quarterly to each eligible facility a<br>production incentive based on the average North Dakota price per bushel of corn received by<br>farmers during the quarter, as established by the North Dakota agricultural statistics service and<br>the average North Dakota rack price per gallon [3.79 liters] of ethanol during the quarter, as<br>compiled by AXXIS petroleum.The amount payable as a production incentive must becalculated by including the sum arrived at under subsection 1 with the sum arrived at under<br>subsection 2.1.a.If the average quarterly price per bushel of corn is above one dollar and eighty<br>cents, for each one cent by which the quarterly price is above one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall add to<br>the amount payable under this section one-tenth of one cent times the number<br>of gallons of ethanol produced by the eligible facility during the quarter.b.If the average quarterly price per bushel of corn is one dollar and eighty cents,<br>the office of renewable energy and energy efficiency shall add zero to any<br>amount payable under this section.Page No. 1c.If the average quarterly price per bushel of corn is below one dollar and eighty<br>cents, for each one cent by which the quarterly price is below one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall subtract<br>from the amount payable under this section one-tenth of one cent times the<br>number of gallons of ethanol produced by the eligible facility during the quarter.2.a.If the average quarterly rack price per gallon of ethanol is above one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>above one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall subtract from the amount payable under this section, two-tenths<br>of one cent times the number of gallons of ethanol produced by the eligible<br>facility during the quarter.b.If the average quarterly rack price per gallon of ethanol is one dollar and thirty<br>cents, the office of renewable energy and energy efficiency shall subtract zero<br>from any amount payable under this section.c.If the average quarterly rack price per gallon of ethanol is below one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>below one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall add to the amount payable under this section two-tenths of one<br>cent times the number of gallons of ethanol produced by the eligible facility<br>during the quarter.17-02-04. Subsidy limitations. The office of renewable energy and energy efficiencymay not distribute more than one million six hundred thousand dollars per eligible facility annually<br>in payments under section 17-02-03 and may not distribute any payment that would create a<br>negative ethanol production incentive fund balance. If the incentive fund balance is insufficient to<br>pay all valid incentive requests received in any quarter, the funds available must be paid out on a<br>pro rata basis and obligations may not be carried forward. No eligible facility may receive state<br>payments that exceed a cumulative total of ten million dollars or for longer than ten years.<br>Change in ownership of an eligible facility does not affect the ten million dollar cumulative total<br>allowed to be paid to that eligible facility under this section or the ten-year limitation contained in<br>this section.17-02-05. Ethanol production incentive fund - Continuing appropriation. There iscreated in the state treasury a special fund known as the ethanol production incentive fund. The<br>fund consists of transfers made in accordance with section 39-04-39 and deposits made in<br>accordance with section 57-43.1-03.1. All moneys in the fund are appropriated on a continuing<br>basis to the office of renewable energy and energy efficiency for use in paying ethanol production<br>incentives under this chapter.Page No. 2Document Outlinechapter 17-02 ethanol production incentives
CHAPTER 17-02ETHANOL PRODUCTION INCENTIVES17-02-01. Ethanol production incentives - Report to budget section.1.a.An ethanol plant that was in operation before July 1, 1995, and which has a<br>production capacity of fewer than fifteen million gallons [56781000 liters] of<br>ethanol may receive up to nine hundred thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.b.An ethanol plant that was in operation before July 1, 1995, and which produced<br>fifteen million gallons [56781000 liters] or more in the previous fiscal year is<br>eligible to receive up to four hundred fifty thousand dollars in production<br>incentives from the state during the 2005-07 biennium and may receive no<br>production incentives under this section after the 2005-07 biennium.2.The agricultural products utilization commission shall determine the amount of<br>production incentives to which a plant is entitled under this section by multiplying the<br>number of gallons of ethanol produced by the plant and marketed to a distributor or<br>wholesaler by forty cents. The commission shall forward the production incentives<br>to the plant upon receipt of an affidavit by the plant indicating that the ethanol is to<br>be sold at retail to consumers. The affidavit must be accompanied by an affidavit<br>from a wholesaler or retailer indicating that the ethanol is to be sold at retail to<br>consumers.3.Within ninety days after the conclusion of the plant's fiscal year, the plant shall<br>submit to the budget section of the legislative management a statement by a<br>certified public accountant indicating whether the plant produced a profit from its<br>operation in the preceding fiscal year, after deducting the payments received under<br>this section.17-02-02. Ethanol production incentives - Payments for increased production. If anethanol plant that was in operation in this state before July 1, 1995, increases its production by<br>the lesser of ten million gallons [37854000 liters] or fifty percent of its production capacity during<br>any twelve-month period beginning on or after July 1, 2005, that plant is eligible to receive<br>ethanol production incentive payments under section 17-02-03 on its increased production.17-02-03.Ethanol production incentive - Calculation - Payment.The office ofrenewable energy and energy efficiency shall provide quarterly to each eligible facility a<br>production incentive based on the average North Dakota price per bushel of corn received by<br>farmers during the quarter, as established by the North Dakota agricultural statistics service and<br>the average North Dakota rack price per gallon [3.79 liters] of ethanol during the quarter, as<br>compiled by AXXIS petroleum.The amount payable as a production incentive must becalculated by including the sum arrived at under subsection 1 with the sum arrived at under<br>subsection 2.1.a.If the average quarterly price per bushel of corn is above one dollar and eighty<br>cents, for each one cent by which the quarterly price is above one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall add to<br>the amount payable under this section one-tenth of one cent times the number<br>of gallons of ethanol produced by the eligible facility during the quarter.b.If the average quarterly price per bushel of corn is one dollar and eighty cents,<br>the office of renewable energy and energy efficiency shall add zero to any<br>amount payable under this section.Page No. 1c.If the average quarterly price per bushel of corn is below one dollar and eighty<br>cents, for each one cent by which the quarterly price is below one dollar and<br>eighty cents, the office of renewable energy and energy efficiency shall subtract<br>from the amount payable under this section one-tenth of one cent times the<br>number of gallons of ethanol produced by the eligible facility during the quarter.2.a.If the average quarterly rack price per gallon of ethanol is above one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>above one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall subtract from the amount payable under this section, two-tenths<br>of one cent times the number of gallons of ethanol produced by the eligible<br>facility during the quarter.b.If the average quarterly rack price per gallon of ethanol is one dollar and thirty<br>cents, the office of renewable energy and energy efficiency shall subtract zero<br>from any amount payable under this section.c.If the average quarterly rack price per gallon of ethanol is below one dollar and<br>thirty cents, for each one cent by which the average quarterly rack price is<br>below one dollar and thirty cents, the office of renewable energy and energy<br>efficiency shall add to the amount payable under this section two-tenths of one<br>cent times the number of gallons of ethanol produced by the eligible facility<br>during the quarter.17-02-04. Subsidy limitations. The office of renewable energy and energy efficiencymay not distribute more than one million six hundred thousand dollars per eligible facility annually<br>in payments under section 17-02-03 and may not distribute any payment that would create a<br>negative ethanol production incentive fund balance. If the incentive fund balance is insufficient to<br>pay all valid incentive requests received in any quarter, the funds available must be paid out on a<br>pro rata basis and obligations may not be carried forward. No eligible facility may receive state<br>payments that exceed a cumulative total of ten million dollars or for longer than ten years.<br>Change in ownership of an eligible facility does not affect the ten million dollar cumulative total<br>allowed to be paid to that eligible facility under this section or the ten-year limitation contained in<br>this section.17-02-05. Ethanol production incentive fund - Continuing appropriation. There iscreated in the state treasury a special fund known as the ethanol production incentive fund. The<br>fund consists of transfers made in accordance with section 39-04-39 and deposits made in<br>accordance with section 57-43.1-03.1. All moneys in the fund are appropriated on a continuing<br>basis to the office of renewable energy and energy efficiency for use in paying ethanol production<br>incentives under this chapter.Page No. 2Document Outlinechapter 17-02 ethanol production incentives
