142.031. Missouri qualified biodiesel producer fund created--eligibility for grants--rulemaking authority--expiration date--sale of facility, effect of.
Missouri qualified biodiesel producer fund created--eligibility forgrants--rulemaking authority--expiration date--sale of facility,effect of.
142.031. 1. As used in this section the following terms shall mean:
(1) "Biodiesel", fuel as defined in ASTM Standard D-6751 or itssubsequent standard specifications for biodiesel fuel (B100) blend stockfor distillate fuels;
(2) "Missouri qualified biodiesel producer", a facility that producesbiodiesel, is registered with the United States Environmental ProtectionAgency according to the requirements of 40 CFR 79, and:
(a) a. Is at least fifty-one percent owned by agricultural producerswho are residents of this state and who are actively engaged inagricultural production for commercial purposes; or
b. At least eighty percent of the feedstock used by the facilityoriginates in the state of Missouri. For purposes of this section,"feedstock" means an agricultural, horticultural, viticultural, vegetable,aquacultural, livestock, forestry, or poultry product either in its naturalor processed state; and
(b) Meets all of the following:
a. Has registered with the department of agriculture by September 1,2007;
b. Has begun construction of the facility before November 1, 2007;and
c. Has begun production of biodiesel before March 1, 2009.
2. The "Missouri Qualified Biodiesel Producer Incentive Fund" ishereby created and subject to appropriations shall be used to provideeconomic subsidies to Missouri qualified biodiesel producers pursuant tothis section. The director of the department of agriculture shalladminister the fund pursuant to this section.
3. A Missouri qualified biodiesel producer shall be eligible for amonthly grant from the fund provided that one hundred percent of thefeedstock originates in the United States. However, the director may waivethe feedstock requirements on a month-to-month basis if the facilityprovides verification that adequate feedstock is not available. A Missouriqualified biodiesel producer shall only be eligible for the grant for atotal of sixty months unless such producers during the sixty months fail,due to a lack of appropriations, to receive the full amount from the fundfor which the producers were eligible, in which case such producers shallcontinue to be eligible for up to twenty-four additional months or untilthey have received the maximum amount of funding for which such producerswere eligible during the original sixty-month time period. The amount ofthe grant is determined by calculating the estimated gallons of qualifiedbiodiesel produced during the preceding month from feedstock, as certifiedby the department of agriculture, and applying such figure to theper-gallon incentive credit established in this subsection. Each Missouriqualified biodiesel producer shall be eligible for a total grant in anyfiscal year equal to thirty cents per gallon for the first fifteen milliongallons of qualified biodiesel produced from feedstock in the fiscal yearplus ten cents per gallon for the next fifteen million gallons of qualifiedbiodiesel produced from feedstock in the fiscal year. All such qualifiedbiodiesel produced by a Missouri qualified biodiesel producer in excess ofthirty million gallons shall not be applied to the computation of a grantpursuant to this subsection. The department of agriculture shall pay allgrants for a particular month by the fifteenth day after receipt andapproval of the application described in subsection 4 of this section.
4. In order for a Missouri qualified biodiesel producer to obtain agrant from the fund, an application for such funds shall be received nolater than fifteen days following the last day of the month for which thegrant is sought. The application shall include:
(1) The location of the Missouri qualified biodiesel producer;
(2) The average number of citizens of Missouri employed by theMissouri qualified biodiesel producer in the preceding month, ifapplicable;
(3) The number of bushel equivalents of Missouri feedstock andout-of-state feedstock used by the Missouri qualified biodiesel producer inthe production of biodiesel in the preceding month;
(4) The number of gallons of qualified biodiesel the producermanufactures during the month for which the grant is applied;
(5) A copy of the qualified biodiesel producer license requiredpursuant to subsection 5 of this section, name and address of suretycompany, and amount of bond to be posted pursuant to subsection 5 of thissection; and
(6) Any other information deemed necessary by the department ofagriculture to adequately ensure that such grants shall be made only toMissouri qualified biodiesel producers.
5. The director of the department of agriculture, in consultationwith the department of revenue, shall promulgate rules and regulationsnecessary for the administration of the provisions of this section.
6. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in thissection shall become effective only if it complies with and is subject toall of the provisions of chapter 536, RSMo, and, if applicable, section536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and ifany of the powers vested with the general assembly pursuant to chapter 536,RSMo, to review, to delay the effective date or to disapprove and annul arule are subsequently held unconstitutional, then the grant of rulemakingauthority and any rule proposed or adopted after August 28, 2002, shall beinvalid and void.
7. This section shall expire on December 31, 2009. However, Missouriqualified biodiesel producers receiving any grants awarded prior toDecember 31, 2009, shall continue to be eligible for the remainder of theoriginal sixty-month time period under the same terms and conditions ofthis section unless such producer during such sixty months failed, due to alack of appropriations, to receive the full amount from the fund for whichhe or she was eligible. In such case, such producers shall continue to beeligible for up to twenty-four additional months or until they havereceived the maximum amount of funding for which they were eligible duringthe original sixty-month time period.
8. Any Missouri qualified biodiesel producer who receives any grantpayments under this section who subsequently sells the biodiesel facilityshall be subject to the following payback requirements:
(1) If such facility is sold within less than one year of the date ofissuance of the last grant payment, the Missouri qualified biodieselproducer shall pay the state the amount of fifty percent of the totalamount of grant payments received under this section;
(2) If such facility is sold within one to two years of the date ofissuance of the last grant payment, the Missouri qualified biodieselproducer shall pay the state the amount of forty percent of the totalamount of grant payments received under this section;
(3) If such facility is sold within two to three years of the date ofissuance of the last grant payment, the Missouri qualified biodieselproducer shall pay the state the amount of thirty percent of the totalamount of grant payments received under this section;
(4) If such facility is sold within three to four years of the dateof issuance of the last grant payment, the Missouri qualified biodieselproducer shall pay the state the amount of twenty percent of the totalamount of grant payments received under this section;
(5) If such facility is sold within four to five years of the date ofissuance of the last grant payment, the Missouri qualified biodieselproducer shall pay the state the amount of ten percent of the total amountof grant payments received under this section.
If the sale date of the facility falls on a date that qualifies under morethan one subdivision of this subsection, the greater payback amount shallapply. For purposes of this subsection, a facility shall be considered"sold" when there is a change in at least fifty-one percent of thefacility's ownership in a transaction that involves a buyer or buyers and aseller or sellers.
(L. 2002 H.B. 1348, A.L. 2005 S.B. 355, A.L. 2006 H.B. 1270 & 1027, A.L. 2007 H.B. 741)Expires 12-31-09