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2006 SESSION

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HB 680 Biofuels Production Incentive Grant Program and Fund; created.

Introduced by: Robert J. Wittman | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Biofuels Production Fund and Grant Incentive Program; established.  Establishes the Biofuels Production Fund (the Fund) and the Biofuels Production Grant Incentive Program (the Program) to administer the Fund. The Program offers grants to producers of neat biofuels, which are defined as either biodiesel fuels or ethanol fuels that are not mixed with traditional fuels such as gasoline or diesel fuel. To be eligible for a grant the producer must produce in excess of 10 million gallons of neat biofuels within the Commonwealth in a calendar year using feedstock originating domestically within the United States.  The producer must commence eligible sales on or after January 1, 2007, and pre-existing producers are only eligible if their production increases over prior calendar year levels by at least 10 million gallons of neat biofuels.  Producers that qualify for a grant under the program may be granted $0.10 per gallon for neat biofuels produced in the given calendar year.  If moneys in the fund are not sufficient to pay all qualified applicants, disbursements from the Fund shall be made on a pro-rata basis.  The Program and Fund would expire on December 31, 2016.  The payment of grants is subject to an appropriation to the fund.

SUMMARY AS PASSED HOUSE:

Biofuels Production Fund and Grant Incentive Program; established. Establishes the Biofuels Production Fund (the Fund) and the Biofuels Production Grant Incentive Program (the Program) to administer the Fund. The Program offers grants to producers of neat biofuels, which are defined as either biodiesel fuels or ethanol fuels that are not mixed with traditional fuels such as gasoline or diesel fuel. To be eligible for a grant the producer must produce in excess of 10 million gallons of neat biofuels within the Commonwealth in a calendar year using feedstock originating domestically within the United States. The producer must commence eligible sales on or after July 1 2006 and pre-existing producers are only eligible if their production increases over prior calendar year levels by at least 10 million gallons of neat biofuels. Producers that qualify for a grant under the program may be granted $0.20 per gallon for neat biofuels produced in the given calendar year at a 50% cost share. If moneys in the fund are not sufficient to pay all qualified applicants, disbursements from the Fund shall be made on a pro-rata basis. The Program and Fund would expire on December 31, 2016.

SUMMARY AS INTRODUCED:

Biofuels Production Fund and Grant Incentive Program; established.  Establishes the Biofuels Production Fund (the Fund) and the Biofuels Production Grant Incentive Program (the Program) to administer the Fund. The Program offers grants to producers of neat biofuels, which are defined as either biodiesel fuels or ethanol fuels that are not mixed with traditional fuels such as gasoline or diesel fuel. To be eligible for a grant the producer must produce in excess of 10 million gallons of neat biofuels within the Commonwealth in a calendar year using feedstock originating domestically within the United States. Producers that qualify for a grant under the program may be granted $0.20 per gallon of neat biofuel produced in the given calendar year at a 50% cost share of up to 80 million gallons. Therefore a producer meeting the maximum production limit under the program of 80 million gallons would be eligible for an $8,000,000 grant. The Program and Fund would expire on December 31, 2016.