§ 15-13-302. Production incentives for alternative fuels producers

(a) The Arkansas Alternative Fuels Development Program shall include a grant incentive program for alternative fuels producers based on the gallonage production of alternative fuels as provided in this section.

(b) The program shall include grants for:

1. (1) Capital improvements made after January 1, 2007, for the construction, modification, alteration, or retrofitting of an alternative fuels production facility located and operated in Arkansas; and

2. (2) Operations costs after January 1, 2007, for the operation of an alternative fuels production facility located and operated in Arkansas.

(c) The Department of Agriculture shall create a grant application process for alternative fuels producers for capital improvements that includes:

1. (1) An application for a grant under this subsection that shall include at a minimum:

   1. (A) The expected gallonage production of alternative fuels at the facility;

   2. (B) A narrative description of the intended use of the grant moneys; and

   3. (C) Evidence sufficient to satisfy the department that the applicant has the capacity to complete the proposed project;

2. (2) Instructions about the grant process;

3. (3) Scoring procedures to determine the award of the grants; and

4. (4) Other factors that the Secretary of the Department of Agriculture deems necessary.

(d) The department shall create a grant application process for alternative fuels producers for operations costs that includes:

1. (1) An application for a grant under this subsection shall include at a minimum:

   1. (A) The expected gallonage production of alternative fuels at the facility; and

   2. (B) Evidence sufficient to satisfy the department that the applicant has the capacity to operate during the applicable grant period;

2. (2) Instructions about the grant process;

3. (3) Scoring procedures to determine the award of the grants; and

4. (4) Other factors that the secretary deems necessary.

(e)

1. (1) The department shall prepare an annual progress report on grant assistance made under this section.

2. (2) The report shall include:

   1. (A) The amount of each grant;

   2. (B) The purpose of each grant;

   3. (C) How grant funds were expended by the grant recipient;

   4. (D) The results produced or the progress made;

   5. (E) The revenues produced;

   6. (F) Tonnages of feedstock materials used; and

   7. (G) The gallonage of alternative fuels produced.

3. (3) The report for each state fiscal year shall be filed by June 30 of the following fiscal year with the office of the Governor and the Legislative Council.

(f)

1. (1) The secretary shall make cash payments to an alternative fuels producer that qualifies as a grant recipient under this section in an amount not to exceed twenty cents (20¢) per gallon of alternative fuels produced.

2. (2) The payment to an alternative fuels producer under this section shall be for the annual production of alternative fuels.

(g)

1. (1) The department shall not award a grant in an amount that exceeds two million dollars ($2,000,000) to any one (1) alternative fuels producer in any one (1) fiscal year.

2. (2) An entity that holds a controlling interest in more than one (1) alternative fuels production facility is considered one (1) alternative fuels producer under this section.

(h) Nothing in this section shall limit a grant recipient under this section from applying for or receiving a production incentive for feedstock processors under § 15-13-303.