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SUMMARY OF CURRENT
LOUISIANA GASOHOL LEGISLATION
AND
AGRICULTURAL ETHANOL PRODUCTION LAW
RULES AND REGULATIONS
1986 Regular Session
- This bill repeals the exemption from the gasoline tax and from the special fuels tax for gasohol.
- This repeal took effect on or about August 26, 1986, at which taxes on gasohol begin to be collected and are transferred to the Agricultural Industrial Incentive Fund.
1985
Agricultural Ethanol Production Law
- This act establishes an incentive program for certain producers of ethanol, to create the Agricultural Industry Board and provides for the appointment for the members, their terms of office, and their duties and authority, and provides for the creation of the Agricultural Incentive Fund. The purpose of this act is to:
- (1) Encourage participation of the private sector in the development of a production system for alcohol fuels within the state of Louisiana.
- (2) Promote the use of renewable energy in the state of Louisiana and the United States.
- (3) Provide a clean, efficient, and renewable source of energy.
- (4) Continue Louisiana's role as a major producer of energy for the nation.
- (5) Encourage the utilization of sugarcane, sorghum, milo, corn, and other agricultural products and byproducts for energy purposes and thereby encourage the establishment of a substantial market for agricultural products in Louisiana.
- (6) Attract new industry into Louisiana and thereby encourage the investment of capital in Louisiana.
- (7) Create a significant number of new jobs in the state of Louisiana.
- (8) Reduce the independence of the United States and the state of Louisiana on imported petroleum and imported natural gas by all economically and environmentally feasible means through the use of biomass and/or alternate energy sources in furtherance of the goals of the United States Biomass Energy and Alcohol Fuels Act of 1980.
- The Agricultural Industry Board is created within the Department of Agricultural, composed of the Commissioner of Agriculture; six members to be appointed by the Governor, as follows: one member appointed from a list of three persons nominated by the Commissioner of Agriculture, two members appointed from a list of six persons nominated by the Louisiana Farm Bureau Federation, and three members appointed from the state at large, one of whom shall be actively engaged in farming; one member of the Senate appointed by the President of the Senate; and one member of the House of Representatives appointed by the Speaker of the House of Representatives.
- The Agricultural Industrial Incentive Fund is established to receive taxes collected on gasohol and to make incentive payments to certified market participants (manufacturers of ethyl alcohol from Louisiana farm commodities). The amount of the incentive shall be an amount equal to the number of gallons of ethanol sold for use in gasohol during the previous month by the certified market participant, multiplied by an amount derived as follows:
- (1) For fiscal years 1985 and 1986, the product of sixteen cents times the gasohol multiplier.
- (2) For fiscal years 1987 and 1988, the product of fourteen cents times the gasohol multiplier.
- (3) For the calendar year beginning January 1, 1989 and thereafter, the product of twelve cents times the gasohol multiplier.
- The Board shall adopt rules and regulations necessary to implement the provisions of the this law. All rules and regulations shall be adopted in accordance with the Administrative Procedure Act. Such rules shall include the form of any written agreements to be entered into between the certified market participant and the state of Louisiana through the Board.
- In approving certified market participants, the Board shall apply the following criteria in considering the application:
- (1) The facility to produce ethanol shall be located in the state of Louisiana.
- (2) The facility shall be owned or leased and shall be constructed or converted and operated for the purpose of producing ethanol as its primary product from agricultural products.
- (3) The entire production, fermentation, and distillation process shall occur in the state of Louisiana and shall be in accordance with the terms and conditions set forth in the written agreement between the board and the certified market participant.
- (4) The ethanol shall be produced and sold for use in gasohol.
- (5) Any additional criteria the Board may establish by rules and regulations consistent with the provisions of this law.
- In accordance with the emergency provisions of the Administrative Procedure Act (R.S. 49:953(B)) and R.S. 3:3704, the Department of Agriculture and Forestry, Agricultural Industry Board, has adopted the emergency rules detailed below. The board has designated five Certified Market Participants, approved the Certified Market Participant contract form and authorized the commissioner of agriculture and forestry to execute contracts for participation in the ethanol program. In order to make certain that those contracting with the state of Louisiana, sell their ethanol for use in gasohol to be sold in Louisiana and that all taxes are paid and transferred into the Agriculture Incentive Fund, it is necessary prior to the execution of the participation contracts to expend and clarify the regulations with respect to the requirement that the gasohol sales occur in Louisiana, that all taxes on sales are paid and reported and that the proper documentation for these sales and taxes be submitted to the board so that it may assure compliance with the requirements of the Act and regulations.
- Amend LR 7: XXXVI.17703 to include a definition for "sold for use in gasohol":
- §17703. Definitions
- In addition to definitions listed below and unless otherwise provided, the definitions in R.S. 3:3703 shall apply to these regulations.
- Act means the Agricultural Ethanol Production Law.
- Adjudicatory proceeding means an open public hearing by the board to determine whether violations of the Act or these regulations have occurred. Such proceedings are conducted in accordance with the Louisiana Administrative Procedure Act (R.S.49:950, et seq.).
- Agency contract means a contract between a certified market participant and an intermediary, such as a grain dealer or warehouseman, who purchases or stores agricultural commodities or products for use in ethanol.
- Agricultural commodities or products means crops and products made from processing crops. Commodities or products shall include sugar cane, grains (rice, rough rice, corn, wheat, oats, rye, soybeans, barley, milo and grain sorghum), sweet potatoes and sugar beets. Products shall include syrup and molasses. Any other agricultural commodity or product capable of producing ethanol may be declared to be an agricultural product or commodity by the board.
- Applicant means a person who applies for designation as a certified market participant.
- Authorized agent means any representative of a certified market participant whose name has been filed with the board is empowered by the certified market participant and the board to act for or on behalf of a certified market participant.
- Blender means any person who purchases and mixes ethanol and gasoline for sale as gasohol and who files the required reports with the Louisiana Department of Revenue and Taxation.
- Board means the Agricultural Industry Board established by R.S. 3:3704.
- Capital costs means all expenditures made for the acquisition of land, equipment, buildings, engineering, construction interests and other expenses necessary to build an ethanol facility.
- Central registry means the public filing and listing of security devices encumbering agricultural crops, commodities or products maintained by the commissioner.
- Certified market participant means an applicant approved by the board to participate in a cooperative endeavor authorized under this Chapter.
- Certified market participant confidential business plan is a confidential financial document or series of documents presented by an applicant or certified market participant periodically with the board, containing proposed agency and producer contracts and all other confidential and financial audit information.
- Certified market participant contract means a contract or cooperative endeavor between the board and a certified market participant relating to the production of ethanol.
- Commissioner means the Louisiana Commissioner of Agriculture and Forestry or his duly authorized representative.
- Controlling interest means ownership by an individual or his spouse, either individually or collectively, of an interest in a person or entity which exceeds 25 percent of any legal entity.
- Cooperative endeavor means a contractual relationship between the State of Louisiana through the board with a person for a public purpose.
- Ethanol means an ethyl alcohol which meets all of the following conditions in that it:
- 1. has a purity of at least 99 percent, determined without regard to any added denaturants:
- 2. has been denatured in conformity with one of the approved methods set forth by the United States Bureau of Alcohol. Tobacco and Firearms;
- 3. has been derived from agricultural commodities or products; and
- 4. has been produced in the state of Louisiana wholly from fermentation and distillation in the state of Louisiana.
- Ethanol facility means a facility:
- 1. which is located in Louisiana;
- 2. owned or leased and shall be permanently constructed or converted and operated for the purpose of producing ethanol as its primary product from agricultural commodities or products;
- 3. whose entire production. fermentation and distillation shall occur in Louisiana: and
- 4. whose ethanol shall be produced and sold for use in gasohol in Louisiana.
- First point of sale means: (1) the initial time when title to agricultural commodities or products passes from a seller to a buyer; or (2) the time when agricultural commodities or products are removed from storage.
- Fund means the Agricultural Industry Incentive Fund established by R.S. 3:3706.
- Gasohol means a fuel that contains not more than 90 percent gasoline and at least 10 percent ethanol.
- Gasohol multiplier means the number 10, which reflects the fact that 10 gallons of gasohol contains at least one gallon of ethanol.
- Grain dealer means any person who purchases agricultural commodities or products from producers, sells agricultural commodities for producers or represents producers in the purchase or sale of agricultural commodities. The term does not include producers who purchase grain commodities for their own use as feed or seed.
- Intermediary means any person who purchases or stores agriculture commodities to be used to produce ethanol by a certified market participant. Grain dealers, warehousemen and warehouse operators are intermediaries.
- Licensee means any person holding a license as a warehouse or grain dealer issued by the Louisiana Agricultural Commodities Commission.
- Person means any individual, partnership, association, corporation or other legal entity.
- Principal managers means the individuals or persons responsible for the daily operation of an ethanol facility.
- Principal office means the location where the records of the certified market participant will be maintained in the state of Louisiana.
- Principal stockholders or owners means any individual who owns directly or indirectly 10 percent of an ethanol facility operated by a certified market participant.
- Producer means a farmer, individual or person that engages in the production of agricultural commodities or products.
- Producer contract means a two or three party contract between and among an agriculture producer, certified market participant and intermediaries. such as a grain dealer or a warehouseman.
- Production records means written evidence of the ethanol produced daily by a certified market participant.
- Rules or regulations means the rules or regulations adopted by the Agricultural Industry Board under the authority granted by the Act.
- Security device means any assignment, pawn, pledge, mortgage, privilege, lien or other device by which an interest in agricultural commodities or products is encumbered, either legally or conventionally, to secure the fulfillment of any obligation.
- Scale ticket means the document issued to a producer when agricultural commodities or products are delivered to intermediaries such as a warehouse or grain dealer.
- Settlement sheets means documents which reconcile contacts shipping tickets, charges, deductions and payments to determine the value and quantity of agriculture commodities or products received by the certified market participant.
- Shipping documents means the written evidence of ethanol produced and shipped by a certified market participant.
- Sold for use in gasohol means that ethanol will be blended with gasoline and Louisiana taxes are paid on the sale of gasohol in Louisiana. This intent is evidenced by any document of gasohol sales as reported to the Louisiana Department of Revenue and Taxation on its monthly Motor Fuels Report.
- Spot or spot sale means a transaction where title to agricultural commodities or products passes from the producer to the buyer on the day of delivery, in which transaction the producer is paid promptly at the market price established on the day of delivery.
- Storage means the physical possession by a warehouse, in any manner and/or under any type of fee arrangement, of agricultural commodities or products belonging to any person other than the owner of the warehouse. The term storage does not apply to a transaction in which title passes from the seller to the buyer upon delivery.
- Under substantial construction means the certified market participant has entered into binding contracts for capital costs, including contracts for the purchase of land. engineering, capital construction and all other project costs, the total of which shall be not less than 25 percent of the project costs.
- Warehouse means any building, structure or any other protected enclosure in which agricultural commodities or products or farm products are stored for the public for a fee. The term includes facilities which commingle commodities, facilities which preserve the identity of separate lots of agricultural commodities or products and facilities which dry and/or condition agricultural commodities or products belonging to any person other than the facility owner.
- Warehouseman or warehouse operator means any person or entity operating a warehouse.
- AUTHORITY NOTE: Promulgated in accordance with R.S. 3:3703 and R.S. 3:3704.
- Amend LAC 7:XXXVI.17711 amending Subsection A 3.b and adding Subsections A.3.e.iv. B.4 and D:
- §17711. Incentive Payments to Certified Market Participants
- A. Incentive Payments Application Procedure
- 1. A request for incentive payments shall be submitted in writing on the forms approved by the board.
- 2. The request for incentive payment form shall be a public record in accordance with R.S. 3:3707(E) and shall contain the following information:
- a. name, address and phone number of certified market participant:
- b. signature of authorized agent:
- c. date submitted;
- d. month for which payment is requested;
- e. number of gallons of ethanol sold for which incentive payment is requested: and
- f. certification by authorized agent that the information reported on the form is true, correct and complete.
- 3. The following information shall be submitted simultaneously with request for incentive payment and such information shall be exempt from R.S. 44:1 et seq. and be considered confidential information:
- a. ethanol buyer's name, address and quantity:
- b. total number of gallons of ethanol and gasohol sold in Louisiana;
- c. copies of shipping and receiving documents; and
- d. certification by authorized agent that the information reported is true, correct and complete, and
- e. an affidavit in authentic form provided by the commissioner and executed by the blender attesting to the following:
- i. the blender has purchased from________, the certified market participant,__________ gallons of ethanol on the_______day of_________, 19____, for use in gasohol to be sold in Louisiana;
- ii. the blender shall on or before the twentieth day of each month file with the Louisiana Department of Revenue and Taxation report(s) or document(s) or pay monies as may be appropriate relative to taxes imposed on gasohol: and
- iii. the blender shall mail to the certified market participant at its principal office and to the commissioner certified true copies of report(s) or document(s) filed or monies paid by the blender with the Louisiana Department of Revenue and Taxation.
- iv. the blender shall attach as a schedule to his affidavit and mail to the commissioner a copy of a first-in, first-out perpetual inventory report showing each certified market participant's beginning inventory balance, shipments of ethanol received from said certified market participant during the month, sales of ethanol for said certified market participant that month and ending certified market participant's ethanol inventory. A copy of this schedule will also be sent to the certified market participant.
- 4. The incentive payments shall be made only to certified market participants who have contracts approved by the board.
- B. Procedures for Payment to Certified Market Participants
- 1. Certified market participants must submit a written request for payment which shall be reviewed and approved as to form and completeness by the commissioner or his designee.
- 2. Within five working days of the fifth day of each month, the Commissioner shall notify each certified market participant of his approval as to form and completeness of application for the month's incentive payment. This approval shall be evidenced by a certificate or certificates, the Agricultural Industry Board Incentive Payment Certificate, in the form approved by the board, signed by the commissioner stating the payment application has been approved as to form and completeness. The commissioner shall on or before the fifth working day following the fifth day of each month issue to certified market participant their specific Agricultural Industry Board Incentive Payment Certificate. The certified market participant may, with board approval, assign those certificates to a producer, intermediary, blender. financial institution or other person.
- 3. The commissioner is authorized on behalf of the board to take all necessary steps to make payments to certified market participants from the Agricultural Industry Incentive Fund.
- 4. Each incentive payment made from the fund shall be applied first to the oldest outstanding certificate issued to the certified market participant until all certificates issued to the certified market participant shall be paid.
- C. Procedures For Adjustments In Incentive Payments Due To Overpayment
- In the event the request for incentive payment is inaccurate or erroneous, the commissioner shall notify the certified market participant and if the certified market participant agrees that an error has been made then the commissioner is authorized to deduct from any future incentive payment requested an amount sufficient to correct any error in payment plus legal interest. If the commissioner and the certified market participant do not agree, then the commissioner shall call an adjudicatory hearing before the board to consider the matter.
- D. Procedure for Other Adjustment of Incentive Payments
- If on a monthly basis the money in the fund is not sufficient to satisfy all outstanding obligations for incentive payments, the payments shall be divided proportionately among the certified market participants in accordance with the following formula: the payment received by each certified market participant shall be in the same proportion to the total funds available for incentive payments as the number of gallons of ethanol produced and sold by the certified market participant for use in gasohol sold in Louisiana bears to the total number of gallons of ethanol produced and sold by all the certified market participants for use in gasohol sold in Louisiana.
- AUTHORITY NOTE: Promulgated in accordance with R.S. 3:3707, R.S, 3:3705 and R.S. 3:3704.
- Amend LR 7:XXXVI.17703 to include a definition for "sold for use in gasohol":
- §17703. Definitions
- In addition to definitions listed below and unless otherwise provided, the definitions in R.S. 3:3703 shall apply to these regulations.
- Act means the Agricultural Ethanol Production Law.
- Adjudicatory proceeding means an open public hearing by the board to determine whether violations of the act or these regulations have occurred. Such proceedings are conducted in accordance with the Louisiana Administrative Procedure Act (R.S. 49:950, et seq.).
- Agency contract means a contract between a certified market participant and an intermediary, such as a grain dealer or warehouseman, who purchases or stores agricultural commodities or products for use in ethanol.
- Agricultural commodities or products means crops and products made from processing crops. Commodities or products shall include sugar cane, grains (rice, rough rice, corn, wheat, oats, rye, soybeans, barley, milo and grain sorghum), sweet potatoes and sugar beets. Products shall include syrup and molasses. Any other agricultural commodity or product capable of producing ethanol may be declared to be an agricultural product or commodity by the board.
- Applicant means a person who applies for designation as a certified market participant.
- Authorized agent means any representative of a certified market participant whose name has been filed with the board is empowered by the certified market participant and the board to act for or on behalf of a certified market participant.
- Blender means any person who purchases and mixes ethanol and gasoline for sale as gasohol and who files the required reports with the Louisiana Department of Revenue and Taxation.
- Board means the Agricultural Industry Board established by R.S. 3:3704.
- Capital costs means all expenditures made for the acquisition of land, equipment. buildings, engineering, construction interests and other expenses necessary to build an ethanol facility.
- Central registry means the public filing and listing of security devices encumbering agricultural crops, commodities or products maintained by the commissioner.
- Certified market participant means an applicant approved by the board to participate in a cooperative endeavor authorized under this Chapter.
- Certified market participant confidential business plan is a confidential financial document or series of documents presented by an applicant or certified market participant periodically with the board, containing proposed agency and producer contracts and all other confidential and financial audit information.
- Certified market participant contract means a contract or cooperative endeavor between the board and a certified market participant relating to the production of ethanol.
- Commissioner means the Louisiana Commissioner of Agriculture and Forestry or his duly authorized representative.
- Controlling interest means ownership by an individual or his spouse, either individually or collectively, of an interest in a person or entity which exceeds 25 percent of any legal entity.
- Cooperative endeavor means a contractual relationship between the state of Louisiana through the board with a person for a public purpose.
- Ethanol means an ethyl alcohol which meets all of the following conditions in that it:
- 1. has a purity of at least 99 percent, determined without regard to any added denaturants:
- 2. has been denatured in conformity with one of the approved methods set forth by the United States Bureau of Alcohol, Tobacco and Firearms:
- 3. has been derived from agricultural commodities or products: and
- 4. has been produced in the state of Louisiana wholly from fermentation and distillation in the state of Louisiana.
- Ethanol facility means a facility:
- 1. which is located in Louisiana;
- 2. owned or leased and shall be permanently constructed or converted and operated for the purpose of producing ethanol as its primary product from agricultural commodities or products;
- 3. whose entire production, fermentation and distillation shall occur in Louisiana: and
- 4. whose ethanol shall be produced and sold for use in gasohol in Louisiana.
- First point of sale means: (1) the initial time when title to agricultural commodities or products passes from a seller to a buyer; or (2) the time when agricultural commodities or products are removed from storage.
- Fund means the Agricultural Industry Incentive Fund established by R.S.3:3706.
- Gasohol means a fuel that contains not more than 90 percent gasoline and at least 10 percent ethanol.
- Gasohol multiplier means the number 10, which reflects the fact that 10 gallons of gasohol contains at least one gallon of ethanol.
- Grain dealer means any person who purchases agricultural commodities or products from producers, sells agricultural commodities for producers or represents producers in the purchase or sale of agricultural commodities. The term does not include producers who purchase grain commodities for their own use as feed or seed.
- Intermediary means any person who purchases or stores agriculture commodities to be used to produce ethanol by a certified market participant. Grain dealers, a warehousemen and warehouse operators are intermediaries.
- Licensee means any person holding a license as a warehouse or grain dealer issued by the Louisiana Agricultural Commodities Commission.
- Person means any individual, partnership, association, corporation or other legal entity.
- Principal managers means the individuals or persons responsible for the daily operation of an ethanol facility.
- Principal office means the location where the records of the certified market participant will be maintained in the State of Louisiana.
- Principal stockholders or owners means any individual who owns directly or indirectly 10 percent of an ethanol facility operated by a certified market participant.
- Producer means a farmer, individual or person that engages in the production of agricultural commodities or products.
- Producer contract means a two or three party contract between and among an agriculture producer, certified market participant and intermediaries, such as a grain dealer or a warehouseman .
- Production records means written evidence of the ethanol produced daily by a certified market participant.
- Rules or regulations means the rules or regulations adopted by the Agricultural Industry Board under the authority granted by the Act.
- Security device means any assignment, pawn, pledge, mortgage, privilege, lien or other device by which an interest in agricultural commodities or products is encumbered, either legally or conventionally, to secure the fulfillment of any obligation.
- Scale ticket means the document issued to a producer when agricultural commodities or products are delivered to intermediaries such as a warehouse or grain dealer.
- Settlement sheets means documents which reconcile contracts, shipping tickets, charges, deductions and payments to determine the value and quantity of agriculture commodities or products received by the certified market participant.
- Shipping documents means the written evidence of ethanol produced and shipped by a certified market participant.
- Sold for use in gasohol means that ethanol will be blended with gasoline and Louisiana taxes are paid on the sale of gasohol in Louisiana. This intent is evidenced by any document of gasohol sales as reported to the Louisiana Department of Revenue and Taxation on its Monthly Motor Fuels Report.
- Spot or spot sale means a transaction where title to agricultural commodities or products passes from the producer to the buyer on the day of delivery, in which transaction the producer is paid promptly at the market price established on the day of delivery.
- Storage means the physical possession by a warehouse, in any manner and/or under any type of fee arrangement, of agricultural commodities or products belonging to any person other than the owner of the warehouse. The term storage does not apply to a transaction in which title passes from the seller to the buyer upon delivery.
- Taxes imposed on gasohol means any state tax levied on gasohol and includes any tax levied on gasohol under the provisions of R.S. 47:711, R.S. 47:802, R.S. 47:302(A), R.S. 47:321(A), and R.S. 47:331(A).
- Under substantial construction means the certified market participant has entered into binding contracts for capital costs, including contracts for the purchase of land, engineering, capital construction and all other project costs, the total of which shall be not less than 25 percent of the project costs.
- Warehouse means any building, structure or any other protected enclosure in which agricultural commodities or products or farm products are stored for the public for a fee. The term includes facilities which commingle commodities, facilities which preserve the identity of separate lots of agricultural commodities or products and facilities which dry and/or condition agricultural commodities or products belonging to any person other than the facility owner.
- Warehouseman or Warehouse operator means any person or entity operating a warehouse.
- AUTHORITY NOTE: Promulgated in accordance with R.S. 3:3703 and R.S. 3:3704.
- Amend LAC 7:XXXVI.17711 amending Subsections A.3.b and A.3.e.iii and adding Subsections A.3.e.iv. B.4 and D:
- §17711. Incentive Payments to Certified Market Participants
- A. Incentive Payments Application Procedure
- 1. A request for incentive payments shall be submitted in writing on the forms approved by the board.
- 2. The request for incentive payment form shall be a public record in accordance with R.S 3:707(E) and shall contain the following information:
- a. name, address and phone number of certified market participant:
- b. signature of authorized agent;
- c. date submitted:
- d. month for which payment is requested:
- e. number of gallons of ethanol sold for which incentive payment is requested, and
- f. certification by authorized agent that the information reported on the form is true, correct and complete.
- 3. The following information shall be submitted simultaneously with request for incentive payment and such information shall be exempt from R.S. 44:1 et seq. and be considered confidential information:
- a. ethanol buyer's name, address and quantity;
- b. total number of gallons of ethanol and gasohol sold in Louisiana;
- c. copies of shipping and receiving documents; and
- d. certification by authorized agent that the information reported is true, correct and complete: and
- e. an affidavit in authentic form provided by the commissioner and executed by the blender attesting to the following:
- i. the blender has purchased from__________the certified market participant, _____________gallons of ethanol on the__________day of___________19_____, for use in gasohol to be sold in Louisiana;
- ii. the blender shall on or before the twentieth day of each month file with the Louisiana Department of Revenue and Taxation report(s) or document(s) or pay monies as may be appropriate relative to taxes imposed on gasohol: and
- iii. the blender shall attach to his affidavit and mail to the commissioner certified true copies of report(s) or document(s) filed or monies paid by the blender with the Louisiana Department of Revenue and Taxation.
- iv. the blender shall attach as a schedule to his affidavit and mail to the commissioner a copy of a first-in, first-out perpetual inventory report showing each certified market participant's beginning inventory balance, shipments of ethanol received from said certified market participant during the month, sales of ethanol for said certified market participant that month and ending certified market participant's ethanol inventory. A copy of this schedule will also be sent to the certified market participant.
- 4. The incentive payments shall be made only to certified market participants who have contracts approved by the board.
- B. Procedures for Payment to Certified Market Participants
- 1. Certified market participants must submit a written request for payment which shall be reviewed and approved as to form and completeness by the commissioner or his designee.
- 2. Within five working days of the fifth day of each month, the commissioner shall notify each certified market participant of his approval as to form and completeness of application for the month's incentive payment. This approval shall be evidenced by a certificate or certificates, the Agricultural Industry Board Incentive Payment Certificate. in the form approved by the board, signed by the commissioner stating the payment application has been approved as to form and completeness. The commissioner shall on or before the fifth working day following the fifth day of each month issue to certified market participant their specific Agricultural Industry Board Incentive Payment Certificate. The certified market participant may, with board approval, assign those certificates to a producer, intermediary, blender, financial institution or other person.
- 3. The commissioner is authorized on behalf of the board to take all necessary steps to make payments to certified market participants from the Agricultural Industry Incentive Fund.
- 4. Each incentive payment made from the fund shall be applied first to the oldest outstanding certificate issued to the certified market participant until all certificates issued to the certified market participant shall be paid.
- C. Procedures For Adjustments In Incentive Payments Due To Overpayment
- In the event the request for incentive payment is inaccurate Or erronous, the commissioner shall notify the certified market participant and if the certified market participant agrees that an error has been made then the commissioner is authorized to deduct from any future incentive payment requested an amount sufficient to correct any error in payment plus legal interest. If the commissioner and the certified market participant do not agree, then the commissioner shall call an adjudicatory hearing before the board to consider the matter.
- D. Procedure for Other Adjustment of Incentive Payments
- If on a monthly basis the money in the fund is not sufficient to satisfy all outstanding obligations for incentive payments, the payments shall be divided proportionately among the certified market participants in accordance with the following formula: the payment received by each certified market participant shall be in the same proportion to the total funds available for incentive payments as the number of gallons of ethanol produced and sold by the certified market participant for use in gasohol sold in Louisiana bears to the total number of gallons of ethanol produced and sold by all the certified market participants for use in gasohol sold in Louisiana.
- AUTHORITY NOTE: Promulgated in accordance with R.S, 3:3704, R.S. 3705 and R.S. 3707.
Department of Agriculture and Forestry
Office of Management and Finance
Agricultural Industry Board
Taxes imposed on gasohol means any state tax levied on gasohol and includes any tax levied on gasohol under the provisions of R.S. 47:711, R.S. 47:802, R.S. 47:302(A), R.S. 47:321(A), and R.S, 47:331(A).
Commissioner
Commissioner
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This page updated June 1989
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