Arkansas Administrative Code
Agency 209 - Arkansas Agriculture Department
Division 03 - Alternative Fuels Development Program
Rule 209.03.07-001 - Arkansas Alternative Fuels Development Program
Current through Register Vol. 49, No. 9, September, 2024
A. Purpose
To increase the availability of alternative fiiels produced in Arkansas from feedstock processed in Arkansas by making available incentive grants to alternative fuels producers, feedstock processors, and distributors.
B. Authority
The Arkansas Agriculture Department under the Arkansas Alternative Fuels Development Act (Act 873 of 2007 (the "Act")) is to develop and administer the program.
C. General Provisions
Availability of grants is limited to:
An entity that holds controlling interest in more than one alternative fuels production facility is considered one alternative fuels producer.
An entity that holds controlling interest in more than one feedstock processing plant is considered one feedstock processor.
Persons or entities who are alternative fuels producers and feedstock processors may apply for and receive grant funds under the Act for alternative fuels production and for feedstock processing.
D. Application Procedures and Requirements
Funding decisions are made on the basis of one round of competition. The FY 07/08 application deadline for grants is February 28, 2008. Applications may cover investments made on or after January 1, 2007 or investments proposed to be made before June 30, 2008. The FY 08/09 application deadline is February 28, 2009.
Applications must be submitted in writing to: Office of the Secretary Arkansas Agriculture Department 1 Natural Resource Drive Little Rock, AR 72205
As defined in the Act, "alternative fuels producer" means a business located in Arkansas that uses biomass or other renewable resources, excluding recycled petroleum oils, to manufacture alternative fuels.
Production Incentive Grants may be for capital improvement and/or operations costs.
Capital improvement grants are to assist in the construction, modification, alteration, or retrofitting of alternative fuels production facilities that are located and operated in Arkansas.
Operations costs grants are for the operation of alternative fuels production facilities located and operated in Arkansas. Successful applicants for operations costs grants are eligible for incentive payments of up to twenty cents per gallon of alternative fuel produced.
Alternative fuels producers may apply for and receive grants to fund capital improvements and/or operations costs however, the Arkansas Agriculture Department will not award grants in an amount that exceeds two million dollars to any one alternative fuels producer in any one fiscal year.
A narrative description of the proposed project is required. The format, style of presentation, and length may vary, depending on the nature of the project. The narrative shall include the following sections:
* Ownership - legal ownership along with the names, titles, contact information, and roles of principal participants in alternative fuel production facility.
* Location - physical address of facility.
* Description of Current Operation - if in operation, describe facility including feedstock processed, current market, production levels (expected gallonage), and cost per unit.
* Intended Use of Grant -
o For capital improvement grant, describe construction, modification, alteration, or retrofitting of production facility and permitting required. Include pro-forma operating statement, cash flow analysis, projected per unit cost, annual volume anticipated, expected employment and anticipated markets for alternative fuel.
o For operating cost grant, include operating pro-forma analysis, cash flow analysis, projected per unit cost, annual volume anticipated, expected employment and anticipated markets for alternative fuel.
* Evidence alternative fuel production volume is sustainable.
In order to achieve certain goals and priorities, applications will particularly be reviewed for the following criteria. Each will receive a weighted score, the maximum of which is indicated. The sum total score of all the criteria will be used to rank competing applications.
o Capital Improvement Grant Criteria:
Upon notification that an application for a production incentive grant has been approved, successful applicants may request payment by reporting quarterly production on AAD form AFP-01. All requests for payment, regardless of the fiscal year for which the grant was approved, must be submitted to AAD by May 30, 2009 or payment may be disallowed.
Grant recipients agree to report origin and total annual feedstock processed and total gallons of alternative fuel produced by the facility for the five years subsequent to the construction, modification, alteration, or retrofitting being completed. Or, for operating costs grant, beginning with their first request for payment. Reports are to be submitted on AAD form AFP-02 and must be filed each fiscal year by August 31.
As defined in the Act, "feedstock processor" means a business located in Arkansas that uses biomass or other renewable resources, excluding recycled petroleum oils, to manufacture feedstock to be used in the production of alternative fuels.
Grants are to assist in the construction, modification, alteration, or retrofitting of feedstock processing facilities that are located and operated in Arkansas.
A narrative description of the proposed project is required. The format, style of presentation, and length may vary, depending on the nature of the project. The narrative shall include the following sections:
* Ownership - legal ownership along with the names, titles, contact information, and roles of principal participants in feedstock processing facility.
* Location - physical address of facility.
* Description of Current Operation - if in operation, describe facility including feedstock processed, current market, production levels, and cost per unit.
* Intended Use of Grant - describe construction, modification, alteration, or retrofitting of feedstock processing facility. Include pro-forma operating statement, cash flow analysis, projected per unit cost, permitting requirements, and anticipated markets for feedstock.
In order to achieve certain goals and priorities, applications will particularly be reviewed for the following criteria. Each will receive a weighted score, the maximum of which is indicated. The sum total score of all the criteria will be used to rank competing applications.
Upon notification that an application for a feedstock processor incentive grant has been approved, successful applicants may request reimbursement of approved expenditures on AAD form FP-01. All requests for reimbursement, regardless of the fiscal year for which the grant was approved, must be submitted to AAD by May 30, 2009 or reimbursement may be denied.
Grant recipients agree to report origin and total annual tonnage of feedstock processed by facility for the five years subsequent to the construction, modification, alteration, or retrofitting being completed. Reports are to be submitted on AAD form FP-02 and must be filed each fiscal year by August 31.
As defined in the Act, "Alternative Fuels Distributor" means a business located in the State of Arkansas that distributes alternative fuels or alternative fuels mixtures.
Distribution incentive grants are restricted to capital investments in alternative fuels distribution facilities.
A narrative description of the proposed project is required. The format, style of presentation, and length may vary, depending on the nature of the project. The narrative shall include the following sections:
* Ownership - legal ownership along with the names, titles, contact information, and roles of principal participants in alternative fuels distribution business.
* Location - physical address of business and distribution site(s).
* Current source of biofuel and monthly volume.
* Intended use of the grant.
* Evidence sufficient to demonstrate grant will improve the statewide supply and distribution of alternative fuels and/or alternative fuels mixtures that are produced in Arkansas.
In order to achieve certain goals and priorities, applications will particularly be reviewed for the following criteria. Each will receive a weighted score, the maximum of which is indicated. The sum total score of all the criteria will be used to rank competing applications.
Upon notification that an application for a distribution incentive grant has been approved, successful applicants may request reimbursement of approved expenditures on AAD form AFD-01. All requests for reimbursement, regardless of the fiscal year for which the grant was approved, must be submitted to AAD by May 30, 2009 or may be disallowed.
Grant recipients agree to report total annual amount of alternative fuel stored and/or distributed by distribution site for the five years subsequent to the grants utilization. Reports are to be submitted on AAD form AFD-02 and must be filed each fiscal year by August 31.
