2016 North Dakota Century Code Title 17 Energy Chapter 17-02 Ethanol Production Incentives
Download as PDF
CHAPTER 17-02
ETHANOL PRODUCTION INCENTIVES
17-02-01. Ethanol production incentives - Report to budget section.
Repealed by S.L. 2013, ch. 177, § 4.
17-02-01.1. Definition.
In this chapter "eligible facility" means an ethanol production plant constructed in this state
after July 31, 2003.
17-02-02. Ethanol production incentives - Payments for increased production.
If an ethanol plant that was in operation in this state before July 1, 1995, increases its
production by the lesser of ten million gallons [37854000 liters] or fifty percent of its production
capacity during any twelve-month period beginning on or after July 1, 2005, that plant is eligible
to receive ethanol production incentive payments under section 17-02-03 on its increased
production.
17-02-03. Ethanol production incentive - Calculation - Payment.
The office of renewable energy and energy efficiency shall provide quarterly to each eligible
facility a production incentive based on the average North Dakota price per bushel of corn
received by farmers during the quarter, as established by the North Dakota agricultural statistics
service and the average North Dakota rack price per gallon [3.79 liters] of ethanol during the
quarter, as compiled by AXXIS petroleum. The amount payable as a production incentive must
be calculated by including the sum arrived at under subsection 1 with the sum arrived at under
subsection 2.
1. a. If the average quarterly price per bushel of corn is above one dollar and eighty
cents, for each one cent by which the quarterly price is above one dollar and
eighty cents, the office of renewable energy and energy efficiency shall add to the
amount payable under this section one-tenth of one cent times the number of
gallons of ethanol produced by the eligible facility during the quarter.
b. If the average quarterly price per bushel of corn is one dollar and eighty cents,
the office of renewable energy and energy efficiency shall add zero to any
amount payable under this section.
c. If the average quarterly price per bushel of corn is below one dollar and eighty
cents, for each one cent by which the quarterly price is below one dollar and
eighty cents, the office of renewable energy and energy efficiency shall subtract
from the amount payable under this section one-tenth of one cent times the
number of gallons of ethanol produced by the eligible facility during the quarter.
2. a. If the average quarterly rack price per gallon of ethanol is above one dollar and
thirty cents, for each one cent by which the average quarterly rack price is above
one dollar and thirty cents, the office of renewable energy and energy efficiency
shall subtract from the amount payable under this section, two-tenths of one cent
times the number of gallons of ethanol produced by the eligible facility during the
quarter.
b. If the average quarterly rack price per gallon of ethanol is one dollar and thirty
cents, the office of renewable energy and energy efficiency shall subtract zero
from any amount payable under this section.
c. If the average quarterly rack price per gallon of ethanol is below one dollar and
thirty cents, for each one cent by which the average quarterly rack price is below
one dollar and thirty cents, the office of renewable energy and energy efficiency
shall add to the amount payable under this section two-tenths of one cent times
the number of gallons of ethanol produced by the eligible facility during the
quarter.
Page No. 1
17-02-04. Subsidy limitations.
The office of renewable energy and energy efficiency may not distribute more than one
million six hundred thousand dollars per eligible facility annually in payments under section
17-02-03 and may not distribute any payment that would create a negative ethanol production
incentive fund balance. If the incentive fund balance is insufficient to pay all valid incentive
requests received in any quarter, the funds available must be paid out on a pro rata basis and
obligations may not be carried forward. No eligible facility may receive state payments that
exceed a cumulative total of ten million dollars or for longer than ten years. Change in
ownership of an eligible facility does not affect the ten million dollar cumulative total allowed to
be paid to that eligible facility under this section or the ten-year limitation contained in this
section.
17-02-05. Ethanol production incentive fund - Continuing appropriation.
There is created in the state treasury a special fund known as the ethanol production
incentive fund. The fund consists of transfers made in accordance with section 39-04-39. All
moneys in the fund are appropriated on a continuing basis to the office of renewable energy and
energy efficiency for use in paying ethanol production incentives under this chapter.
Page No. 2
Disclaimer: These codes may not be the most recent version. North Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.