CODE OF VIRGINIA

(REPEALED EFFECTIVE JULY 1, 2017) BIOFUELS PRODUCTION INCENTIVE GRANT PROGRAM
(§ 45.1-394)

A. For the purposes of this section:”Advanced biofuels” means a fuel
derived from any cellulose, hemicellulose, or lignin that is derived from
renewable biomass, or algae.”Biodiesel fuel” means a fuel composed
of mono-alkyl esters of long chain fatty acids derived from vegetable oils or
animal fats, designated B100, and meeting the requirements of ASTM
D6751.”Biofuels” means neat biodiesel fuel, neat green diesel fuel,
or neat ethanol fuel that is not blended with a traditional fuel such as
gasoline or diesel.”Ethanol fuels” means fermentation alcohol
derived from agricultural products, including potatoes, cereal grains, dry mill
corn, whey, and sugar beets; forest products; or other renewable resources,
including residue and waste generated from the production, processing, and
marketing of agricultural products, forest products, and other renewable
resources, that:

   1.  Meets all applicable ASTM specifications; and

   2.  Is denatured as specified in 27 C.F.R. Parts 20 and
   21.”Feedstock” means the agricultural or other renewable
   resources, whether plant or animal derived, used to produce
   biofuels.”Green diesel fuel” means 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, and meeting applicable ASTM
   specifications.”Producer” means any person, entity, or
   agricultural cooperative association, as defined in the Agricultural
   Cooperative Association Act (§ 13.1-312 et seq.) that, in a calendar year,
   produces in the Commonwealth at least one million gallons of advanced biofuels
   or biofuels using feedstock originating domestically within the United States.

B. 

   1.  A producer of neat advanced biofuels or neat biofuels, including but not
   limited to such biofuels derived from cereal grains, shall be eligible to
   receive a biofuels production incentive grant for each gallon of the same that
   it produces in the Commonwealth. However, a producer shall be eligible for a
   grant from the Biofuels Production Fund (the Fund) established under §
   45.1-393 only for each gallon of neat advanced biofuels or neat biofuels that
   it produces in the Commonwealth on or after January 1, 2014, which gallon has
   also been sold by the producer to customers.

   2.  The grant for neat advanced biofuels or neat biofuels produced in the
   Commonwealth and subsequently sold to customers shall equal (i) $ 0.04 per
   gallon for sales to customers in calendar year 2014, (ii) $ 0.03 per gallon
   for sales to customers in calendar year 2015, and (iii) $ 0.025 per gallon for
   sales to customers in calendar year 2016 and for the period January 1, 2017,
   through June 30, 2017.

   3.  Each producer applying for a grant under this section for 2015 production
   of neat advanced biofuels or neat biofuels shall make a good faith effort to
   produce the same using feedstock that is not derived from corn or the corn
   kernel, stalk, or any other part of the plant. Further, no grant shall be
   awarded for neat advanced biofuels or neat biofuels produced in 2016 or
   thereafter using feedstock derived from corn or the corn kernel, stalk, or any
   other part of the plant.No person shall be eligible for any grants pursuant to
   this section if the person, or an affiliate of the person, was the recipient
   of a grant under the Clean Energy Manufacturing Incentive Grant Program (§
   59.1-284.25 et seq.) as such program was in effect prior to July 1, 2015.

   4.  In no case shall the Director of the Division of Energy approve more than
   $ 1.5 million in grants in each of fiscal years 2014-2015, 2015-2016, and
   2016-2017. Grants awarded under this section shall be paid from the Fund.

C. In the event applications for grants pursuant to subsection B as approved by
the Director of the Division of Energy exceed the total amount of money
allocated in the Fund, grant payments shall be apportioned among eligible
producers pro rata based upon the total qualifying gallons of neat advanced
biofuels or neat biofuels sold in the respective calendar year by all such
eligible producers.

D. Any producer eligible to apply for a grant pursuant to this section shall
provide evidence in the form of production reports, satisfactory to the Director
of the Division of Energy, that the producer met the production requirements
provided under this section for the respective calendar year. The producer shall
also provide evidence in the form of sales reports, satisfactory to the
Director, of the number of qualifying gallons of neat advanced biofuels or neat
biofuels sold by the producer to customers in the respective calendar year. Such
reports shall be filed no later than March 31 following the calendar year in
which the producer sold the qualifying gallons of biofuels. Failure to meet the
filing deadline shall render the applicant ineligible to receive a grant. The
postmark cancellation shall govern the date of the filing determination unless
the Director has approved an alternative means of filing.No producer shall be
eligible to receive grants pursuant to this section for qualifying sales made in
more than six calendar years. No grants shall be paid under this section for
neat advanced biofuels or neat biofuels sold on or after July 1, 2017.

E. The Director of the Division of Energy shall determine the amount of the
grant payable to each qualifying producer. The Director shall then certify to
the Comptroller the grant amount each producer of biofuels is eligible to
receive in a given calendar year. Payments shall be paid by check issued by the
State Treasurer on warrant of the Comptroller.

F. The Director, upon presenting appropriate credentials, may examine the
records, books, invoices, bills of lading, storage and production facilities,
and other applicable documents to determine whether the production and sale of
neat advanced biofuels or neat biofuels meet the requirements for grants as set
forth in this section.

HISTORY: 2006, c. 652; 2007, c. 684; 2008, c. 418; 2009, cc. 19, 525; 2011, cc.
815, 864; 2014, c. 669; 2015, c. 761.