PURPOSE: This rule describes the operation of the program; defines terms; establishes requirements for ekglbrlrty, licensing, bonding, and application for grants; describes procedures for grant disbursement; and establishes recordkeeping requmnents and uerification procedures.

1. (1) General Organization.

2. (A) The director of the Department of Agriculture is authorized to administer the Missouri Qualified Fuel Ethanol Producer Incentive Fund and, subject to appropriations for this purpose, shall provide economic subsidies to Missouri qualified fuel ethanol producers (MQFEP). To obtain a grant from the fund, an MQFEP must be eligible, licensed, and bonded, must submit a formal grant application, and in all other ways must conform to the requirements of this rule.

   1. (B) All submissions or requests for information regarding the Missouri Qualified Fuel Ethanol Producer Incentive Fund should be directed to the Missouri Department of Agriculture, Qualified Fuel Ethanol Producer Incentive Fund, P.O. Box 630, Jefferson City, MO 65102.

3. (2) Definitions.

   1. (A) Fuel ethanol-One hundred ninety eight (198) proof ethanol denatured in conformitywith theUnited&& BureauofAlcohol, Tobacco and Firearms regulations and fermented and distilled in a facility whose principal (over fifty percent (50%)) feed stock is cereal grain or cereal grain by-products;

4. (B) Missouri qualified fuel ethanol producer (MQFEP)-Any producer of fuel ethanol whose principal place of business and facility for the fermentation and distillation of fuel ethanol is located within the state of Missouri and which has made formal application, posted a bond, and conformed to the require. ments of this rule;

   -

   Rebecca McDowell Cook W/30/95) secretary Of sate

5. (C) Principalplaceofbusiness-That&in which a producer’s ethanol plants produce morefuelethanol tbanisnroducedin any other state;
6. (D) Qualified fuel ethanol--Fuel ethanol produced by a MQFEP;
7. (E) Missouri agricultural product-Cereal grain or cereal by-products produced in Missouri.

8. (F) Department-The Missouri Department of Agriculture; and

   1. (G) Director-The director of the Missouri Department of Agriculture.

9. (3) Criteria for Classification as a Missouri Qualified Ethanol Producer. To be classified an MQFEP, a producer’s principal place of business and facility for the fermentation and distillation of fuel ethanol must be located within the state of Missouri, and the producer must-

   1. (A) Be licensed to produce fuel ethanol by the department;
   2. (B) Post a bond; (C!) Make formal application for monthly grants from the Missouri Qualified Fuel Ethanol Producer Incentive Fund; and
   3. (D) Conform to all otherrequirements of this r”le

10. (4) Procedures for Obtaining a Missouri Qualified Fuel Ethanol Producer License.

    1. (A) Any MQFEP may apply for an original license by requesting a license application form from the Missouri Department of Agriculture, Qualified Fuel Ethanol Producer Incentive Fund, P.O. Box 630, Jefferson City, MO 65102.

    2. (B) The license aonlication form must _. include:

       1. 1. The fuel ethanol producer’s Bureau of

Alcohol, Tobacco and Firearms Permit number;

1. 2. The fuel ethanol producer’s federal

emploser identification number or Social Set-“rity number;

1. 3. If incorporated, a copy of the Certificate

of Good Standing issued by the Missouri secretary of state;

1. 4. Complete name and address of the

owner, or the names and addresses of the partners if the MQFEP is a partnership or the names and addresses of the principal officers if the MQFEP is a corporation;

1. 5. Diagram ofthe premises (location of the

still, etc.);

1. 6. Description of the stills, including their

capacity;

1. 1. The amount and source of the feed-

stocks to be used annually by the facility;

1. 8. The maximum number ‘of gallons of

ethanol to be produced annually by the facility; and 2 CSR 110-I , m

1. 9. The amount and source of funds invested in the facility.
2. (C) All original license applications must be acted upon by the department within ninety

1. (90) days of receipt.

   1. (D) The original license shall be issued effective from the date all required information has been received and approved and shall expire on the following June 30.
   2. (E) Licenses shall be renewed annually, becoming effective July 1 and expiring June 30.
   3. (F) To assure renewal effective July 1, renewal license applications must be submitted andreceived by the department by April 30.

2. (5) Bonding Requirements.

   1. (A) To receive a monthly grant from the Missouri Qualified Fuel Ethanol Producer Incentive Fund, a MQFEP shall file with the department a surety bond executed and signed by the MQFEP as principal and issued by a responsible corporate surety licensed to execute surety bonds in the state of Missouri. The bond shall be in favor of the director of the Missouri Department of Agriculture for the benefit of all persons producing qualified fuel ethanol from Missouri agricultural products, their legal representatives, attorneys, or assigns, and shall be conditioned “pon-

      1. 1. Verification of the actual number of

gallons of qualified fuel ethanol produced from Missouri agricultural products for which the MQFEP has received a monthly grant; and

1. 2. The MQFEP’s compliance with section

142.028, RSMo, and the requirements of this rule.

1. (B) Thebondshall haveaneffectivedatenot later than the date application is made for the first monthly producer incentive grant.
2. (C) The bond shall remain effective until canceled. However, the bond may not be reduced or canceled by the named principal or surety unless the surety provides ninety (90) days written notice of cancellation sent by registered or certified mail, with return receipt to both the principal and to the Director of the Missouri Department of Agriculture, Qualified Fuel Ethanol Producer Incentive Fund P.O. Box 630, Jefferson City, MO 65102. Not&e of cancellation does not affect the liability accrued or which may accrue under such bond before the expiration of the ninety (90) days.
3. (D) The amount of the bond will be computed by multiplying the MQFEP’s estimated maximum annual production of Missouri produced qualified fuel ethanol by twenty cents (2Oe) per gallon for the first twelve and one-half (12.5) million gallons, plus five cents

1. (50) per gallon for the next twelve and one-half (12.5) million gallons and then multiplying the number of months each Missouri plant will be 2 CSR IlO-l-AGRICULTURE

in production during the fiscal year and then dividing by twelve (12).

1. (E) The department will monitor the MQFEP’s estimated and actual ethanol production records. If the dkpartment determines the bond amount is insufficient to cover estimated monthly ethanol production, the department may, at its discretion, require the MQFEP to increase the amount of the bond.

1. (6) Grant Application Procedures.

   1. (A) An MQFEP may apply for a producer incentive grant by requesting a monthly grant application form from the Missouri Depart. ment of Agriculture, Qualified Fuel Ethanol Producer Incentive Fund, P.O. Box 630, Jefferson City, MO 65102.
   2. (B) To obtain a producer incentive grant for a particular month, a MQFEP must complete the prescribed grant application form.

   3. (C) The completed grant application form must be received by the department fifteen (15) daysbeforethefirst dayofthemonthforwhich the grant is sought. Any information or documents submitted by an MQFEP to the department will be considered received by the department on the-

      1. 1. Postal mark date for items delivered by

the United States Postal Service;

1. 2. Actual date received for items delivered

by any other carrier service; or

1. 3. Actual date received for information

received by facsimile within the Jefferson City, Miss&i central office of the department.

1. (D) Thegrant application form mustinclude the:

   1. 1. Complete name and address of the

owner, or names and addresses of the partners if the MQFEP is a partnership, or the names and addresses of the principal officers if the MQFEP is a corporation;

1. 2. Address and location of all fuel ethanol

plants owned by the MQFEP. Each MQFEP must include all Missouri plants and plants outside Missouri;

1. 3. Production capacity of each fuel

ethanol plant;

1. 4. Estimated number of employees needed

to reach the production capacity of each fuel ethanol plant;

1. 5. Number of bushels of Missouri agricul-

tural products used by the MQFEP in the production of fuel ethanol during the preceding quarter;

1. 6. Total number of employees and the

number of Missouri citizens employed by the MQFEP during the preceding quarter;

1. 7. Number of bushels of Missouri agricul-

tural products to be used by the MQFEP in the productionoffuel ethanolduringthemonthfor which the grant is applied;

1. 8. Number of gallons of qualified fuel

ethanol the MQFEP expects to manufacture during the month for which the grant is applied;

1. 9. Estimated production of fuel ethanol

the MQFEP expects to manufacture during the current fiscal year (July 1 through June 30);

1. 10. A copy of the qualified fuel ethanol producer license; and
2. 11. Name and address of the surety company, the bond number and the amount of the bond posted under this rule.

1. (7) Grant Disbursement Procedures.

   1. (A) Annually, the department shall make available to MQFEPs all monies appropriated to the “Missouri Qualified Fuel Ethanol Producer Incentive Fund” by the general assembly and signed into law by the governor, less any governor’s reserve and/or withholding.
   2. (B) AMQFEPshallbeeligibleforamonthly grant from the Missouri Qualified Fuel Ethanol Producer Incentive Fund, except that a MQFEP shall be eligible for the grant for a total of sixty (60) months.
   3. (C) The amount of each monthly grant is determined by calculating the estimated gallons of qualified fuel ethanol to be produced from Missouri agricultural products for the succeeding calendar month, as certified by the department, and multiplying such figure by the per gallon credit established in section 142.028, RSMo and this rule. Each MQFEP shall be eligible for a total grant in any calendar year equal to twenty cents (20~) per gallon for the first twelve and one-half (12.5) million gallons of qualified fuel ethanol produced from Missouri agricultural products in the calendar year, plus five cents (50) per gallon for the next twelve and one-half (12.5) million gallons of qualified fuel ethanol produced from Missouri agricultural products in the calendar year. All such qualified fuel ethanol produced by a MQFEP in excess of twenty-five (25) million gallons shall not be applied to the computation of a grant.
   4. (D) Should available monies be insufficient to pay all MQFEPs the maximum monthly grant allowed by law, available monies will be apportioned so that each MQFEP shall receive a share of monies proportionate to the total amount requested by all MQFEPs for that month.
   5. (E) The department shall pay all grants for a particular month by the fifteenth day after receipt and approval of the grant application form.

   6. (F) The amount of the monthly grant paid by the department shall not exceed the amount of the bond required to be posted by the MQFEP under this rule.

      COOEOF STATE REGULATIONS Division IIO-Office of Director

2. (8) Recordkeeping Requirements and Verification Procedures.

   1. (A) Within fifteen (15) days after the end of a month for which a producer incentive grant was received, the MQFEP must report actual production for that month. The report shall include:

      1. 1. The actual number of gallons of quali-

fied fuel ethanol produced at each Missouri ethanol plant during the report month,

1. 2. The actual number of gallons of fuel

ethanol produced at each plant located outside Missouri during the report month; and

1. 3. The actual quantity of Missouri agricul-

tural products used at each Missouri ethanol plant to produce fuel ethanol during the report month.

1. (B) If actual production of qualified fuel ethanol during a particular month either exceeds or is less than that estimated by an MQFEP, the department shall adjust the subsequent monthly grant by paying the additional amount or subtracting the amount in deficiency to ensure the MQFEP receives the grant amount specified under this rule. If the MQFEP does not apply or qualify for a subsequent monthly grant within ninety (90) days of its previous grant application, the department may, at its discretion, adjust the amount of the bond returned to the MQFEP by paying the additional amount or subtracting the amount in deficiency to ensure the MQFEP receives the grant amount specified under this rule.

2. (C) Each MQFEP shall keep accurate purchase and production records and source documents for at least three (3) years. The records and source documents must be suffi cient to verify the-

   1. 1. Actual monthly production, inventory,

and disposition of fuel ethanol for each Missouri fuel ethanol plant; and

1. 2. Actual monthly quantities of Missouri

agricultural products purchased and used to produce fuel ethanol at each Missouri fuel ethanol plant.

1. (D) The department is authorized to examine records, documents, books, premises, and products of the MQFEP to determine the validity of all information and reports submitted by the MQFEP and to determine if the MQFEP has complied with the provisions of section 142.028, RSMo, and this rule. Auth: section 142.028, RSMo (1994).* Or&?inal r&filed June 14,1995, effecteetiue Dec. 30,1995. *Original authority 1988, amended 1989,199.T

   (H/30/95) Rebecca McDowell Cook

Chapter l-Missouri Qualified Fuel Ethanol Producer incentive Program

STATE OF MISSOURI

. . . DEPARTMENT OF AGRICULTURE MlSSOUR, QUALIFIED FUEL ETHANOL LICENSE APPLICATION

UT.5

“EOFUCWSE 0 RENEWAL n NEW LICENSE

F A PARTNERSHIP, PLEASE LIST THE NAMES AND ADDRESSES OF~ALL PARTNERS NAME OF PARTNER

,F A CORPORATION, PLEASE ATTACH A COPY OF YOUR CERTIFICATE OF GOOD STANDING SECRETARY OF STATE AND LISTTHE NAMES AND ADDRESSES OF YOUR PRINCIPAL OFFICERS NAME OF OFFICER

The Missouri Department of Agriculture will notify you within 90 days of receiving approved or denied. If approved, your original approved and will expire the following June 30. must receive your renewal application by April 30.

Rebecca McDowell Cook (H/30/95) semtarj 0, It& IF A RENEWAL D

I

I

I

license will be effective In order to renew your LICENSE RENEWED oATE cl CURRENT UCENSE NUMBER

ADDRESS

ISSUED BY THE M,SSO”R,

ADDRESS

this application whether your application has been

from the dale all required information has been received and license effective July 1, the Missouri Depaltment of Agriculture 2 CSR llO-l-AGRICULTURE

. . . . STATE OF MISSOURI DEPARTMENT OF AGRICULTURE M,SSO”R, QUALIFIED FUEL ETHANOL PRODUCER BOND KNOW ALL MEN BY THESE PRESENTS:

That we.

ccunly cl

as PRINCIPLE. AND

, a corporate

jointly and severally held and firmly bound unto the State of Missouri

interested, or tc their legal representatives.

) , lawiul money cl the United States,

(S

heirs. executors. administrators.

THE CONDITIONS OF THIS OBLIGATION

Qualified Fuel Ethanol Producer and complies with a,, the provisions

amended) and the rules and regulations promulgated

effect during the term of the license and its extensiw

In no event shall the liability of the surety accumulate

shall be limited in the aggregate

This bond shall become effective

canceled. Provided, that this bond may not be canceled

provisions of 2 CSR 110-l .OfO which requires

registered or certified mail with return

Agriculture. P.O. Box 630. Jefferson City, MO 65102.

The provisions of the Missouri Motor Fuel Tax Law (Chapter 142, RSMo, as amended)

bonds are hereby made applicable

IN WlTNESS WHEREOF,

of

‘TEST Division llO-Office of Director

BONONUMeER

Of

Fun muKc SRmrW i-T , Slate of 1 a(n) UMnnlE OF arrml of state Of w--.-w w-l surety duly authorized and licensed to do business in the State of Missouri. as SURETY. are

for the benefit of a,, persons, firms, capcraticns or associations

attorneys. or assigns. in the penal sum of DOLLARS

for the payment of which, we,, and truly tc be made, we bind ourselves.

legal representatives, successcrs and assigns firmly by these presents.

are such that, if the said principal shall faithfully pedon all of Ihe duties of a Missouri

cl the Missouri Motor Fuel Tax Law (Chaper 142. RSMo. as

thereunder. then this obligation shall be void. otherwise to remain in lull force and

or annual renewals or until cancelled as provided for in 2 CSR 110-l .OlO.

for each successive license period during which this bond is in force, but

to the bond amount staled above, or changed by appropriate rider(s) or endorsement(s).

and shall continue in full force and effect unlil

8 19-----

by the Principal or Surety named herein. except in accordance with

that the Principal or Surety provide ninety (90) days written notice of cancellation, sent by

receipt. to both the above named Principal and to the Director of the Missouri Department

relating to fuel ethanol production surety

tc this instrument and the padfes hereto and are inccrpcrated herein by reference.

the foresaid PRINCIPAL and SURETY have hereunto set their hand and seals this

.19-.

PRNCLPU (SEAL)

BY

COOE OF STATE REGULATIONS (U/30/95) Rebecca McDowell Cook Eecletary 01 state

cur

the

of

day 2 CSR 110-l , Chapter l-Missouri Qualified Fuel Ethanol Producer Incentive Program m E ONLY STATE OF MISSOURI . . . . -NT DEPARTMENT OF AGRICULTURE DATE I MISSOURI QUALIFIED FUEL ETHANOL PRODUCER REASCA GRANT APPLICATION (314) 751-2477 I

IF A PARTNERSHIP, PLEASE LIST THE NAMES AND ADDRESSES OF ALL PARTNERS NAME OF PARTNER ADDRESS I

I

IF A CORPORATION. PLEASE LIST THE NAMES AND ADDRESSES OF YOUR PRINCIPAL OFFICERS NAME OF OFFICER ADDRESS I

NOTE: A COPY OF YOUR QUALIFIED FUEL ETHANOL PRODUCER LlCENSE AND YOUR SURETY BOND MUST SE ,NCL”DED WITH THIS APPLICATION. uo35.3.1ca, (I-95)

Rebecca McDowell Cook (H/30/95) CODE OF STATE REGUlATlONS semtary Of state 2 CSR llO-l-AGRICULTURE

m

PLEASE USE THE FOLLOWING FORMULA TO DETERMINE THE GRANT AMOUNT FOR WHICH YOU MAY SE ELIGIBLE.

, Enter number of gallons expected to be produced in the next calendar month up to 12.5 million gallons

1. 2. Multiply by 20 cents per gallon
2. 3. TOTAL

4, Enter number of gallons expected to be produced in the next calendar month exceeding 12.5 million gallons (not to exceed a total of 26 million gallons).

1. 5. Multiply by 5 cents per gallon
2. 6. TOTAL
3. 7. Add lines 3 anh 6 for estimated grant application
4. 6. Enter actual number of gallons of ethanol produced in the preceding month I Division llO-Office of Director

$ x .20

$

’

x .05

$

Rebecca McDowell Cook Eecmtaly Of state