17-03 Biodiesel Partnership in Assisting Community Expansion
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<![CDATA[CHAPTER 17-03BIODIESEL PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION17-03-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Biodiesel production facility" means a producer of a biodegradable, combustible<br>liquid fuel that is derived from vegetable oil or animal fat and which is suitable for<br>blending with diesel fuel for use in internal combustion diesel engines. The facility<br>must be located in this state and:a.Agricultural producers must hold at least ten percent of the ownership interest<br>in the facility; orb.Residents of this state must own at least fifty percent of the ownership interest<br>of the facility.2."Biofuel partnership in assisting community expansion fund" or "fund" means a fund<br>established to buy down the interest rate on loans to biodiesel and ethanol<br>production facilities and to livestock operations as provided under this chapter.3."Ethanol production facility" means a producer of agriculturally derived denatured<br>ethanol that is suitable for blending with a petroleum product for use in internal<br>combustion engines. The facility must be located in this state and:a.Agricultural producers must hold at least ten percent of the ownership interest<br>in the facility; orb.Residents of this state must own at least fifty percent of the ownership interest<br>of the facility.4."Livestock operation" means a livestock feeding, handling, milking, or holding<br>operation located in this state which uses as part of its operation a byproduct<br>produced at a biodiesel or an ethanol production facility.17-03-02. Biofuel partnership in assisting community expansion fund - Continuingappropriation - Administration. Effective July 1, 2007, the biodiesel partnership in assisting<br>community expansion fund becomes the biofuel partnership in assisting community expansion<br>fund. All moneys transferred into the fund, interest on fund moneys, and payments to the fund<br>are appropriated for the purposes of this chapter. This fund is not subject to section 54-44.1-11.<br>The Bank of North Dakota shall administer the fund. Notwithstanding any other provision of law,<br>the Bank may transfer any unobligated moneys between funds that have been appropriated by<br>the legislative assembly for interest buydown in the biofuel partnership in assisting community<br>expansion fund and the partnership in assisting community expansion fund.17-03-03. Fund - Purpose - Interest rate buydown. Moneys in the fund must be usedfor the purpose of buying down the interest rate on loans made by a lead financial institution in<br>participation with the Bank of North Dakota. The Bank of North Dakota's participation may not<br>exceed eighty percent nor be less than fifty percent of the total loans.17-03-04. Fund moneys - Eligible uses.1.a.The fund moneys may be used to participate in an interest rate buydown on a<br>loan to a biodiesel or an ethanol production facility or to a livestock operation for<br>the following eligible uses:(1)Purchase or construction of real property.Page No. 1(2)Expansion of facilities.(3)Purchase or installation of equipment, including a biodigester system.b.The loan funds may not be used to refinance any existing debt or for the<br>relocation within this state of the biodiesel or ethanol production facility or the<br>livestock operation.2.a.The maximum amount from the fund in the interest rate buydown for a<br>biodiesel or ethanol production facility may not exceed five hundred thousand<br>dollars to any single biodiesel or ethanol production facility under this chapter.b.Except as provided in subdivision c, the maximum amount from the fund in the<br>interest rate buydown for a livestock operation may not exceed two hundred<br>fifty thousand dollars to any single livestock operation under this chapter.c.If a livestock operation has reached the limit provided for in subdivision b as a<br>result of any activity other than the purchase or installation of a biodigester, that<br>operation is entitled to receive from the fund up to two hundred fifty thousand<br>dollars as an additional interest rate buydown on the operation's purchase or<br>installation of a biodigester system.3.The fund participation is limited to the amount required to buy down the interest to<br>five hundred basis points below the national prime interest rate.4.The Bank of North Dakota shall adopt rules to implement this chapter.17-03-05. Partnership in assisting community expansion fund incentive limitation.A biodiesel production facility or ethanol production facility that receives interest buydown from<br>the biofuels partnership in assisting community expansion fund is not eligible to receive interest<br>buydown from the partnership in assisting community expansion fund for the same project during<br>the same biennium.Page No. 2Document Outlinechapter 17-03 biodiesel partnership in assisting community expansion]]>