2013 North Dakota Century Code Title 17 Energy Chapter 17-03 Biodiesel Partnership in Assisting Community Expansion
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CHAPTER 17-03
BIODIESEL PARTNERSHIP IN ASSISTING COMMUNITY EXPANSION
17-03-01. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Biodiesel production facility" means a producer of a fuel composed of mono-alkyl
esters of long chain fatty acids derived from vegetable oil or animal fats that meets
American society for testing and materials specification D 6751. The facility must be
located in this state.
2. "Biofuel partnership in assisting community expansion fund" or "fund" means a fund
established to buy down the interest rate on loans to biodiesel, ethanol, and green
diesel production facilities and to livestock operations as provided under this chapter.
3. "Ethanol production facility" means a producer of agriculturally derived denatured
ethanol that is suitable for blending with a petroleum product for use in internal
combustion engines. The facility must be located in this state.
4. "Green diesel production facility" means a producer of a fuel produced from nonfossil
renewable resources, including agricultural or silvicultural plants, animal fats, residue,
and waste generated from the production, processing, and marketing of agricultural
products, silvicultural products, and other renewable resources, which meets
applicable American society for testing and materials specifications. The facility must
be located in this state.
5. "Livestock operation" means a livestock feeding, handling, milking, or holding
operation located in this state which uses as part of its operation a byproduct produced
at a biodiesel or an ethanol production facility.
17-03-02. Biofuel partnership in assisting community expansion fund - Continuing
appropriation - Administration.
Effective July 1, 2007, the biodiesel partnership in assisting community expansion fund
becomes the biofuel partnership in assisting community expansion fund. All moneys transferred
into the fund, interest on fund moneys, and payments to the fund are appropriated for the
purposes of this chapter. This fund is not subject to section 54-44.1-11. The Bank of North
Dakota shall administer the fund. Notwithstanding any other provision of law, the Bank may
transfer any unobligated moneys between funds that have been appropriated by the legislative
assembly for interest buydown in the biofuel partnership in assisting community expansion fund
and the partnership in assisting community expansion fund.
17-03-03. Fund - Purpose - Interest rate buydown.
Moneys in the fund must be used for the purpose of buying down the interest rate on loans
made by a lead financial institution in participation with the Bank of North Dakota. The Bank of
North Dakota's participation may not 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
loan to a biodiesel, ethanol, or green diesel production facility or to a livestock
operation for the following eligible uses:
(1) Purchase or construction of real property.
(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
relocation within this state of the biodiesel, ethanol, or green diesel production
facility or the livestock operation.
2. a. The maximum amount from the fund in the interest rate buydown for a biodiesel,
ethanol, or green diesel production facility may not exceed five hundred thousand
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dollars to any single biodiesel, ethanol, or green diesel production facility under
this chapter.
b. Except as provided in subdivision c, the maximum amount from the fund in the
interest rate buydown for a livestock operation may not exceed two hundred 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
result of any activity other than the purchase or installation of a biodigester, that
operation is entitled to receive from the fund up to two hundred fifty thousand
dollars as an additional interest rate buydown on the operation's purchase or
installation of a biodigester system.
The fund participation is limited to the amount required to buy down the interest to five
hundred basis points below the national prime interest rate.
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, ethanol, or green diesel production facility that receives
interest buydown from the biofuel partnership in assisting community expansion fund is not
eligible to receive interest buydown from the partnership in assisting community expansion fund
for the same project during the same biennium.
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