15G.204 - RENEWABLE FUEL INFRASTRUCTURE PROGRAM FOR BIODIESEL TERMINAL FACILITIES.

        15G.204  RENEWABLE FUEL INFRASTRUCTURE PROGRAM FOR
      BIODIESEL TERMINAL FACILITIES.
         The department, under the direction of the renewable fuel
      infrastructure board created in section 15G.202, shall establish and
      administer a renewable fuel infrastructure program for terminal
      facilities that store and dispense biodiesel or biodiesel blended
      fuel.  The infrastructure must be designed and shall be used
      exclusively to store and distribute biodiesel or biodiesel blended
      fuel.  The department as directed by the infrastructure board shall
      provide a cost-share program for financial incentives.
         1.  A person may apply to the department to receive financial
      incentives on a cost-share basis.  The department shall forward the
      applications to the underground storage tank fund board as required
      by that board for evaluation and recommendation.  The underground
      storage tank fund board may rank the applications with comments and
      shall forward them to the infrastructure board for approval or
      disapproval.  The department shall award financial incentives on a
      cost-share basis to an eligible person whose application was approved
      by the infrastructure board.
         2.  The department shall award financial incentives to a terminal
      operator participating in the program as directed by the
      infrastructure board.  In order to be eligible to participate in the
      program, the terminal operator must apply to the department in a
      manner and according to procedures required by the infrastructure
      board.  The application must contain information required by the
      infrastructure board and shall at least include all of the following:

         a.  The name of the terminal operator and the address of the
      terminal to be improved.
         b.  A detailed description of the infrastructure to be
      installed, replaced, or converted.
         c.  A statement describing how the terminal is to be improved,
      the total estimated cost of the planned improvement, and the date
      when the infrastructure will be first used to store and distribute
      biodiesel or biodiesel blended fuel.
         d.  A statement certifying that the infrastructure shall not
      be used to store or dispense motor fuel other than biodiesel or
      biodiesel blended fuel, unless granted a waiver by the infrastructure
      board pursuant to this section.
         3. a.  An award of financial incentives to a participating
      person shall be in the form of a grant.  In order to participate in
      the program, an eligible person must execute a cost-share agreement
      with the department as approved by the infrastructure board in which
      the person contributes a percentage of the total costs related to
      improving the terminal.  The financial incentives awarded to the
      participating person shall not exceed the following:
         (1)  For improvements to store, blend, or dispense biodiesel fuel
      from B-2 or higher but not as high as B-99, fifty percent of the
      actual cost of making the improvements or fifty thousand dollars,
      whichever is less.
         (2)  For improvements to store, blend, and dispense biodiesel fuel
      from B-99 to B-100, fifty percent of the actual cost of making the
      improvements or one hundred thousand dollars, whichever is less.
      However, a person shall not be awarded moneys under this subparagraph
      if the person has been awarded a total of eight hundred thousand
      dollars under this subparagraph during any period of time and
      pursuant to all cost-share agreements in which the person
      participates.
         b.  The infrastructure board may approve multiple awards to
      make improvements to a terminal so long as the total amount of the
      awards does not exceed the limitations provided in paragraph "a".

         4.  A participating terminal operator shall not use the
      infrastructure to store or dispense motor fuel other than biodiesel
      or biodiesel blended fuel, unless one of the following applies:
         a.  The participating terminal operator is granted a waiver by
      the infrastructure board.  The participating terminal operator shall
      store or dispense the motor fuel according to the terms and
      conditions of the waiver.
         b.  The renewable fuel infrastructure fund created in section
      15G.205 is immediately repaid the total amount of moneys awarded to
      the participating terminal operator together with a monetary penalty
      equal to twenty-five percent of that awarded amount.  The amount
      shall be deposited in the renewable fuel infrastructure fund created
      in section 15G.205.
         c.  A participating terminal operator who acts in violation of
      an agreement executed with the department pursuant to this section is
      subject to a civil penalty of not more than one thousand dollars a
      day for each day of the violation.  The civil penalty shall be
      deposited into the general fund of the state.  
         Section History: Recent Form
         2006 Acts, ch 1142, §31; 2007 Acts, ch 126, §10; 2008 Acts, ch
      1169, §10, 11, 30
         Referred to in § 15.104, 15G.202, 15G.205 
         Footnotes
         Award of financial incentives for participation in renewable fuel
      infrastructure program for terminal facilities; 2008 Acts, ch 1169, §
      28