AB537,2,3 216.957 Ethanol production incentive program. (1) Definitions. In this
3section:

AB537,2,54 (a) "Computation period" means a period of 3 consecutive months ending on
5March 31, June 30, September 30 or December 31.

AB537,2,146 (b) "Control" means possess, directly or indirectly, the power to direct or cause
7the direction of the management and policies of a person, whether that power is
8exercised through one or more intermediary entities, or alone, or in conjunction with,
9or by an agreement with, another person, and whether that power is established
10through majority ownership, minority ownership, voting of securities, common
11directors, common officers, common stockholders, voting trusts, holding trusts or
12affiliated companies or by contract or other direct or indirect means. "Control"
13includes owning, holding or controlling, directly or indirectly, at least 5% of the
14voting power in the election of directors of a corporation or association.

AB537,3,2

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1(2) Creation. There is created an ethanol production incentive program to be
2funded under s. 20.505 (1) (dm) and administered by the department.

AB537,3,11 3(3) Certification of production facilities. No ethanol producer may
4participate in the ethanol incentive program, unless the production facility is
5certified by the department under this subsection. In order to have a production
6facility certified, the ethanol producer must submit an application and a test claim
7for the computation period immediately preceding the computation period in which
8the initial claim for an incentive payment is made. A test claim shall provide the
9same information as is required for a claim for payment under sub. (4). The
10department may not certify a production facility under this subsection unless the
11production facility is located in this state.

AB537,3,18 12(4) Submission of claims. In order to receive payments under the ethanol
13incentive program, an ethanol producer shall submit a claim to the department
14under this subsection. The claim shall include the name of the producer, the location
15of the production facility, the computation period for which the claim is submitted,
16the number of gallons of ethanol produced during the computation period that
17qualify for incentive payments under sub. (5), the form of organization of the
18producer and any other information which may be specified by the department.

AB537,3,21 19(5) Qualified ethanol production. In order for an ethanol producer to qualify
20for incentive payments for ethanol production under this section, the ethanol
21produced by that producer shall meet all of the following criteria:

AB537,3,2322 (a) The ethanol shall have been produced by a facility the construction of which
23was begun on or after the effective date of this paragraph .... [revisor inserts date].

AB537,3,2524 (b) The ethanol shall be fermented, distilled and dehydrated in a production
25facility certified under sub. (3).

AB537,4,2

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1(c) The ethanol shall be at least 99% pure, denatured and subsequently blended
2with gasoline.

AB537,4,5 3(6) Calculation of incentive payments. Subject to sub. (7), incentive payments
4to ethanol producers for the production of ethanol that qualifies under sub. (5) shall
5be calculated as follows:

AB537,4,86 (a) In each fiscal year, the department shall allocate the amount shown in the
7schedule for the appropriation under s. 20.505 (1) (dm) for that fiscal year equally
8among the computation periods for that fiscal year.

AB537,4,199 (b) The department shall pay to each ethanol producer submitting a claim
10under sub. (4) an incentive payment of 20 cents for each gallon of ethanol that is
11produced during the computation period and that qualifies for incentive payments
12under sub. (5), if sufficient funds have been allocated to that computation period to
13pay all of these claims. If the funds allocated to the computation period are
14insufficient to pay each ethanol producer an incentive payment of 20 cents for each
15gallon of ethanol that is produced during the computation period and that qualifies
16for incentive payments under sub. (5), the department shall distribute the available
17funds to the ethanol producers that submitted claims in proportion to the number of
18gallons of ethanol produced by each of the ethanol producers during the computation
19period that qualify for incentive payments under sub. (5).

AB537,4,2120 (c) Any funds remaining after the application of par. (b) shall be used to increase
21the total amount allocated for the next computation period in that fiscal year, if any.

AB537,4,23 22(7) Limitations on incentive payments. Notwithstanding any other provision
23in this section:

AB537,5,3

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1(a) The incentive payment paid to an ethanol producer, together with incentive
2payments paid to any person controlling, controlled by or under common control with
3the ethanol producer, may not exceed any of the following:

AB537,5,54 1. In any computation period, 20% of the funds available for incentive
5payments for that computation period.

AB537,5,66 2. In any fiscal year, $500,000.

AB537,5,117 (b) No incentive payments may be made to an ethanol producer for ethanol
8produced at an ethanol production facility certified under sub. (3) for a computation
9period that begins at least 5 years after the computation period for which the ethanol
10producer first received an incentive payment under this section for ethanol produced
11at that ethanol production facility.

AB537,5,19 12(8) Payment and verification of incentive payments. The department shall
13approve a claim submitted under sub. (4) and shall make the incentive payment
14calculated under sub. (6) within 30 days after receiving the claim, unless the
15department notifies the producer otherwise. The department shall verify the
16accuracy of the claims submitted by a producer. The department may require that
17the producer submit regular, unqualified opinions based on audits performed by an
18accountant certified under ch. 442 before paying any claim made under this section
19for incentive payments.

AB537,5,22 20(9) Sunset. The department may not make any incentive payment under sub.
21(8) unless the department receives, before June 30, 2003, an application under sub.
22(3) for certification of a production facility.

AB537,6,42 20.505 (1) (dm) Ethanol production incentive program. Biennially, the
3amounts in the schedule for making incentive payments under the ethanol
4production incentive program under s. 16.957.