66-1345 Ethanol Production Incentive Cash Fund; created; use; investment; transfers; duties.
66-1345. Ethanol Production Incentive CashFund; created; use; investment; transfers; duties.(1) Thereis hereby created the Ethanol Production Incentive Cash Fund which shall beused by the board to pay the credits created in section 66-1344 to the extentprovided in this section. Any money in the fund available for investment shallbe invested by the state investment officer pursuant to the Nebraska CapitalExpansion Act and the Nebraska State Funds Investment Act. The State Treasurershall transfer to the Ethanol Production Incentive Cash Fund such money asshall be (a) appropriated to the Ethanol Production Incentive Cash Fund bythe Legislature, (b) given as gifts, bequests, grants, or other contributionsto the Ethanol Production Incentive Cash Fund from public or private sources,(c) made available due to failure to fulfill conditional requirements pursuantto investment agreements entered into prior to April 30, 1992, (d) receivedas return on investment of the Ethanol Authority and Development Cash Fund,(e) credited to the Ethanol Production Incentive Cash Fund from the excisetaxes imposed by section 66-1345.01 through December 31, 2012, and (f) creditedto the Ethanol Production Incentive Cash Fund pursuant to sections 66-489, 66-726, 66-1345.04, and 66-1519.(2) The Department of Revenue shall, at the end of each calendar month,notify the State Treasurer of the amount of motor fuel tax that was not collectedin the preceding calendar month due to the credits provided in section 66-1344.The State Treasurer shall transfer from the Ethanol Production Incentive CashFund to the Highway Trust Fund an amount equal to such credits less the followingamounts:(a) For 1993, 1994, and 1995, the amount generated during the calendarquarter by a one-cent tax on motor fuel pursuant to sections 66-489 and 66-6,107;(b) For 1996, the amount generated during the calendar quarter by athree-quarters-cent tax on motor fuel pursuant to such sections;(c) For 1997, the amount generated during the calendar quarter by aone-half-cent tax on motor fuel pursuant to such sections; and(d) For 1998 and each year thereafter, no reduction.For 1993 through 1997, if the amount generated pursuant to subdivisions(a), (b), and (c) of this subsection and the amount transferred pursuant tosubsection (1) of this section are not sufficient to fund the credits providedin section 66-1344, then the credits shall be funded through the Ethanol ProductionIncentive Cash Fund but shall not be funded through either the Highway CashFund or the Highway Trust Fund. For 1998 and each year thereafter, the creditsprovided in such section shall be funded through the Ethanol Production IncentiveCash Fund but shall not be funded through either the Highway Cash Fund orthe Highway Trust Fund.If, during any month, the amount of money in the Ethanol ProductionIncentive Cash Fund is not sufficient to reimburse the Highway Trust Fundfor credits earned pursuant to section 66-1344, the Department of Revenueshall suspend the transfer of credits by ethanol producers until such timeas additional funds are available in the Ethanol Production Incentive CashFund for transfer to the Highway Trust Fund. Thereafter, the Department ofRevenue shall, at the end of each month, allow transfer of accumulated creditsearned by each ethanol producer on a prorated basis derived by dividing theamount in the fund by the aggregate amount of accumulated credits earned byall ethanol producers.(3) The State Treasurer shall transfer from the Ethanol Production IncentiveCash Fund to the Management Services Expense Revolving Fund the amount reportedunder subsection (4) of section 66-1345.02 for each calendar month of thefiscal year as provided in such subsection.(4) On December 31, 2012, the State Treasurer shall transfer one-half of the unexpendedand unobligated funds, including all subsequent investment interest, fromthe Ethanol Production Incentive Cash Fund to the Nebraska Corn Development, Utilization, and Marketing Fundand the Grain Sorghum Development, Utilization, and Marketing Fund in thesame proportion as funds were collected pursuant to section 66-1345.01 fromcorn and grain sorghum. The Department of Agriculture shall assist the StateTreasurer in determining the amounts to be transferred to the funds. The StateTreasurer shall transfer the remaining one-half of the unexpended and unobligatedfunds to the General Fund.(5) Whenever the unobligated balance in the Ethanol Production IncentiveCash Fund exceeds twenty million dollars, the Department of Revenue shallnotify the Department of Agriculture at which time the Department of Agricultureshall suspend collection of the excise tax levied pursuant to section 66-1345.01.If, after suspension of the collection of such excise tax, the balance ofthe fund falls below ten million dollars, the Department of Revenue shallnotify the Department of Agriculture which shall resume collection of theexcise tax.(6) On or before December 1, 2003, and each December 1 thereafter, theDepartment of Revenue and the Nebraska Ethanol Board shall jointly submita report to the Legislature which shall project the anticipated revenue andexpenditures from the Ethanol Production Incentive Cash Fund through the terminationof the ethanol production incentive programs pursuant to section 66-1344.The initial report shall include a projection of the amount of ethanol productionfor which the Department of Revenue has entered agreements to provide ethanolproduction credits pursuant to section 66-1344.01 and any additional ethanolproduction which the Department of Revenue and the Nebraska Ethanol Boardreasonably anticipate may qualify for credits pursuant to section 66-1344. SourceLaws 1992, LB 754, § 9; R.S.Supp.,1992, § 66-1327; Laws 1993, LB 364, § 16; Laws 1994, LB 961, § 2; Laws 1994, LB 1066, § 55; Laws 1994, LB 1160, § 114; Laws 1995, LB 182, § 62; Laws 1995, LB 377, § 8; Laws 1999, LB 605, § 2; Laws 2001, LB 329, § 13; Laws 2001, LB 536, § 3; Laws 2004, LB 479, § 7; Laws 2004, LB 983, § 59; Laws 2004, LB 1065, § 7; Laws 2007, LB322, § 13; Laws 2007, LB701, § 27; Laws 2010, LB689, § 2.Effective Date: July 15, 2010 Cross ReferencesNebraska Capital Expansion Act, see section 72-1269.Nebraska State Funds Investment Act, see section 72-1260.