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PUBLIC LAWS OF MAINE
First Regular Session of the 119th

CHAPTER 474

H.P. 1032 - L.D. 1454

An Act to Promote Ethanol Production as Alternative Fuel

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 5 MRSA §12004-I, sub-§6-F is enacted to read:

6-F. Economic Development

Agricultural Products Utilization Commission

Legislative per diem for appointed members plus expenses

10 MRSA§997-B

     Sec. 2. 10 MRSA §§997-A and 997-B are enacted to read:

§997-A. Agriculturally Derived Fuel Fund

     1. Purpose. The purpose of this section is to provide assistance to promote the production and use of agriculturally derived fuels. For the purposes of this section, "agriculturally derived fuel" means methanol or ethanol produced from organic matter that is available on a renewable basis, including agricultural crops and agricultural wastes and residues.

     2. Establishment of fund. The Agriculturally Derived Fuel Fund, referred to in this section as the "fund," is established as a nonlapsing fund under the jurisdiction and control of the authority. The authority, in consultation with the Agricultural Products Utilization Commission, as established in Title 5, section 12004-I, subsection 6-F, may apply for and accept any appropriation, grant, gift or service made available from public or private sources consistent with the purpose of this section.

     3. Application of fund. Money in the fund may be used for direct loans and direct subsidies to a business or cooperative for the design and construction of a facility to produce an agriculturally derived fuel. The authority, pursuant to Title 5, chapter 375, subchapter II-A, in consultation with the Agricultural Products Utilization Commission shall adopt rules for determining eligibility, feasibility, terms, conditions and security for direct loans, secured loans and investments. Money in the fund not needed to meet the obligations of the authority as provided in this section may be invested in a manner permitted by law. For the purposes of this section, "business" means an individual, company, corporation or any other entity organized for a common business purpose and "cooperative" means an association organized as a cooperative in accordance with Title 13, chapter 85, subchapter II.

§997-B.   Agricultural Products Utilization Commission

     The Agricultural Products Utilization Commission, as established in Title 5, section 12004-I, subsection 6-F, referred to in this section as the "commission," shall advise the members of the authority on the adoption, amendment or repeal of rules, policies or administrative procedures for carrying out section 997-A. In addition, the commission shall advise the members of the authority on environmental impact considerations, including the impact that agriculturally derived fuels may have on ground water.

     1. Membership. The commission consists of 11 members. Five members must be appointed by the Governor for terms of 2 years each, arranged so that 2 terms expire in odd-numbered years and 3 terms expire in even-numbered years; 3 of these must be actively engaged in farming in this State and 2 members appointed by the Governor must be actively engaged in business in this State. The Commissioner of Agriculture, Food and Rural Resources shall appoint one member for a term of 2 years, which expires in odd-numbered years. The member appointed by the Commissioner of Agriculture, Food and Rural Resources must be actively engaged in farming in this State. The Commissioner of Environmental Protection shall appoint one member for a term of 2 years, which expires in even-numbered years. Commission members may be reappointed to the commission. Terms of members run from the first day of July. The Director of Economic and Community Development, the President of the University of Maine, the Commissioner of Environmental Protection and the Commissioner of Agriculture, Food and Rural Resources, or their designees, are members of the commission. The commission shall elect one of its members as chair.

     2. Commission meetings; staff. The commission shall meet as necessary and shall report annually to the joint standing committee of the Legislature having jurisdiction over natural resources matters and the joint standing committee of the Legislature having jurisdiction over agriculture, food and rural resources matters on the commission's activities and deposits and expenditures from the Agriculturally Derived Fuel Fund. The authority shall provide staff and support services to the commission.

Effective September 18, 1999, unless otherwise indicated.

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