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<section article="gag" article_name="Agriculture" number="10-1504" title_number="10" title_name="Promotion and Identification of Agricultural Products" subtitle_number="15" subtitle_name="Production Credits for Renewable Fuels">
  <level label="a">
    <text>To be eligible for credits under this subtitle, an ethanol or biodiesel producer shall apply to the Department for certification on an application provided by the Department.</text>
  </level>
  <level label="b">
    <text>An applicant shall show in the application to the satisfaction of the Department:</text>
    <level label="1">
      <text>That the applicant will construct or operate a facility capable of producing ethanol or biodiesel;</text>
    </level>
    <level label="2">
      <text>That the applicant will invest or has invested substantial resources in the State in connection with the facility;</text>
    </level>
    <level label="3">
      <text>That the facility will constitute a permanent fixture in the State;</text>
    </level>
    <level label="4">
      <text>For an ethanol production facility, information demonstrating:</text>
      <level label="i">
        <text>The production capacity of the facility; and</text>
      </level>
      <level label="ii">
        <text>The quantity and availability of small grains and other suitable agricultural products in the vicinity of the production facility that may be used by the facility;</text>
      </level>
    </level>
    <level label="5">
      <text>For a biodiesel production facility, information demonstrating:</text>
      <level label="i">
        <text>The production capacity of the facility; and</text>
      </level>
      <level label="ii">
        <text>The quantity and availability of soybean oil and other suitable bio–based oils in the vicinity of the production facility that may be used by the facility;</text>
      </level>
    </level>
    <level label="6">
      <text>Information demonstrating:</text>
      <level label="i">
        <text>The availability and cost of energy sufficient to operate the facility;</text>
      </level>
      <level label="ii">
        <text>The availability of sufficient water and waste disposal systems for the facility;</text>
      </level>
      <level label="iii">
        <text>The availability of sufficient labor and a qualified site manager for the facility; and</text>
      </level>
      <level label="iv">
        <text>That the facility will meet all State and federal environmental standards;</text>
      </level>
    </level>
    <level label="7">
      <text>Any proposed marketing agreements for the ethanol or biodiesel products;</text>
    </level>
    <level label="8">
      <text>A plan to give farmers in the State the opportunity to invest in the facility; and</text>
    </level>
    <level label="9">
      <text>That the applicant will meet any other requirement established by the Department.</text>
    </level>
  </level>
  <level label="c">
    <text>The Department shall:</text>
    <level label="1">
      <text>Review each application submitted under this subtitle;</text>
    </level>
    <level label="2">
      <text>Approve or deny the application within 60 days of receipt of the application; and</text>
    </level>
    <level label="3">
      <text>For an approved application, certify the producer as eligible for a credit in an amount that is:</text>
      <level label="i">
        <text>Based on the production capacity of the facility, as determined by the Board; and</text>
      </level>
      <level label="ii">
        <text>Consistent with subsection (d) of this section.</text>
      </level>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>The Department may not certify ethanol production credits for more than a total of 15,000,000 gallons per calendar year, of which at least 10,000,000 gallons shall be produced from small grains.</text>
    </level>
    <level label="2">
      <text>The Department may not certify biodiesel production credits for more than a total of 5,000,000 gallons per calendar year, of which at least 2,000,000 gallons shall be from soybean oil produced:</text>
      <level label="i">
        <text>In a facility that began operating after December 31, 2004; or</text>
      </level>
      <level label="ii">
        <text>Under the expanded capacity of a facility, the expansion of which occurred after December 31, 2004.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>If eligible, a producer may apply to the Department for certification for additional credits if the producer increases the production capacity of the facility.</text>
    </level>
    <level label="2">
      <text>If a facility does not achieve its certified production capacity for 2 consecutive years, the Department may revise the stated production capacity of the facility and the corresponding credit certification of the producer to reflect actual production.</text>
    </level>
  </level>
  <level label="f">
    <text>An application submitted to the Department under this section is not subject to disclosure under the Maryland Public Information Act.</text>
  </level>
</section>
