45.1-394 - Biofuels Production Incentive Grant Program.
§ 45.1-394. Biofuels Production Incentive Grant Program.
A. For the purposes of this section:
"Advanced biofuels" means a fuel derived from any cellulose, hemicellulose,or lignin that is derived from renewable biomass, or algae.
"Biodiesel fuel" means a fuel composed of mono-alkyl esters of long chainfatty acids derived from vegetable oils or animal fats, designated B100, andmeeting the requirements of ASTM D6751.
"Biofuels" means neat biodiesel fuel, neat green diesel fuel, or neatethanol fuel that is not blended with a traditional fuel such as gasoline ordiesel.
"Ethanol fuels" means fermentation alcohol derived from agriculturalproducts, including potatoes, cereal grains, dry mill corn, whey, and sugarbeets; forest products; or other renewable resources, including residue andwaste generated from the production, processing, and marketing ofagricultural products, forest products, and other renewable resources, that:
1. Meets all applicable ASTM specifications; and
2. Is denatured as specified in 27 C.F.R. Parts 20 and 21.
"Feedstock" means the agricultural or other renewable resources, whetherplant or animal derived, used to produce biofuels.
"Green diesel fuel" means a fuel produced from nonfossil renewableresources, including agricultural or silvicultural plants; animal fats;residue and waste generated from the production, processing, and marketing ofagricultural products; silvicultural products; and other renewable resources,and meeting applicable ASTM specifications.
"Producer" means any person, entity, or agricultural cooperativeassociation, as defined in the Agricultural Cooperative Association Act (§13.1-312 et seq.) that, in a calendar year, produces in the Commonwealth atleast one million gallons of biofuels using feedstock originatingdomestically within the United States.
B. A producer of neat advanced biofuels commencing qualifying sales on orafter January 1, 2008, shall be eligible to receive a biofuels productionincentive grant in an amount equal to $0.125 for each gallon of neat advancedbiofuels sold by it in the calendar year beginning with calendar year 2008. Aproducer of non-advanced neat biofuels shall be eligible to receive abiofuels production incentive grant in an amount equal to $0.10 for eachgallon of neat biofuels sold by it in the calendar year beginning withcalendar year 2008. To be eligible for an incentive grant in any givencalendar year, the producer shall have produced in the Commonwealth at leastone million gallons of neat biofuels in such year. In addition, any producerproducing neat biofuels prior to January 1, 2008, shall be eligible for anincentive grant for neat biofuel sales in the respective calendar year onlyif its production in the Commonwealth of neat biofuels for such calendar yearexceeds its production in the Commonwealth of neat biofuels in the 2007calendar year by at least one million gallons, and if it maintains productionat a minimum of that level in future years. A producer shall be eligible fora grant from the Biofuels Production Fund (the Fund) established under §45.1-393 only for each gallon of neat biofuels that it produces in theCommonwealth on or after January 1, 2008, which gallon has also been sold bythe producer to customers. Grants awarded under this section shall be paidfrom the Fund.
C. In the event applications for grants pursuant to subsection B exceed thetotal amount of money allocated in the Fund, grant payments shall beapportioned among eligible producers pro rata based upon the total qualifyinggallons of neat biofuels sold in the respective calendar year by all sucheligible producers.
D. Any producer eligible to apply for a grant pursuant to this section shallprovide evidence in the form of production reports, satisfactory to theDirector, that the producer met the neat biofuels production requirementsprovided under this section for the respective calendar year. The producershall also provide evidence in the form of sales reports, satisfactory to theDirector, of the number of qualifying gallons of neat biofuels sold by theproducer to customers in the respective calendar year. Such reports shall befiled no later than March 31 following the calendar year in which theproducer sold the qualifying gallons of neat biofuels. Failure to meet thefiling deadline shall render the applicant ineligible to receive a grant. Thepostmark cancellation shall govern the date of the filing determinationunless the Director has approved an alternative means of filing.
No producer shall be eligible to receive grants pursuant to this section forqualifying sales made in more than six calendar years.
E. The Director shall certify to the Comptroller the grant amount a producerof neat biofuels is eligible to receive in a given calendar year. Paymentsshall be paid by check issued by the State Treasurer on warrant of theComptroller.
F. The Director, upon presenting appropriate credentials, may examine therecords, books, invoices, bills of lading, storage and production facilities,and other applicable documents to determine whether the production and saleof neat biofuels meet the requirements for grants as set forth in thissection.
(2006, c. 652; 2007, c. 684; 2008, c. 418; 2009, cc. 19, 525.)