In 2001 the state of Missouri passed a new law that gives school districts an incentive to purchase biodiesel fuel for their bus fleets. The law begins with the 2002-03 school year and lasts through the 2005-06 school year. Any school district may contract with an eligible new generation cooperative to purchase biodiesel fuel for its buses of a minimum of B-20 (20 percent biodiesel). The state will then reimburse the school district so that the net price to the contracting district for biodiesel will not exceed the rack price of regular diesel.
The full text of the rule in the Missouri revised statutes is below:
MO Revised Statutes Chapter 414 Fuel Regulation and Conservation Section 414.433 Purchase of biodiesel fuel by school districts–contracts with new generation cooperatives–definitions–rulemaking authority.
414.433. 1. As used in this section, the following terms mean:
(1) "B-20", a blend of two fuels of twenty percent by volume biodiesel and eighty percent by volume petroleum-based diesel fuel;
(2)"Biodiesel", as defined in ASTM Standard PS121 or its subsequent standard specification for biodiesel fuel (B 100) blend stock for distillate fuels;
(3) "Eligible new generation cooperative", a nonprofit farmer-owned cooperative association formed pursuant to chapter 274, RSMo, or incorporated pursuant to chapter 357, RSMo, for the purpose of operating a development facility or a renewable fuel production facility, as defined in section 348.430, RSMo.
2.Beginning with the 2002-03 school year and lasting through the 2005-06 school year, any school district may contract with an eligible new generation cooperative to purchase biodiesel fuel for its buses of a minimum of B-20 under conditions set out in subsection 3 of this section.
3. Every school district that contracts with an eligible new generation cooperative for biodiesel pursuant to subsection 2 of this section shall receive an additional payment through its state transportation aid payment pursuant to section 163.161, RSMo, so that the net price to the contracting district for biodiesel will not exceed the rack price of regular diesel. If there is no incremental cost difference between biodiesel above the rack price of regular diesel, then the state school aid program will not make payment for biodiesel purchased during the period where no incremental cost exists. The payment shall be made based on the incremental cost difference incrementally up to seven-tenths percent of the entitlement authorized by section 163.161, RSMo, for the 1998-99 school year. The payment amount may be increased by four percent each year during the life of the program. No payment shall be authorized pursuant to this subsection or contract required pursuant to subsection 2 of this section if moneys are not appropriated by the general assembly.
4.The department of elementary and secondary education shall promulgate such rules as are necessary to implement this section, including but not limited to a method of calculating the reimbursement of the contracting school districts and waiver procedures if the amount appropriated does not cover the additional costs for the use of biodiesel. Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2001, shall be invalid and void.
(L. 2001 H.B. 453 merged with S.B.
More:
- See Also Full Text of the Missouri Ethanol Incentive Statute
- Missouri Department of Agriculture
- National Biodiesel Board
- Center for Cooperatives – at the University of Wisconsin.
- USDA Rural Development Program – this division of the U.S. Agriculture Department has an enormous collection of information resources on cooperatives including, Cooperative Information Reports, Cooperative Research Reports, and Cooperative Service Reports.
- The Impact of New Generation Cooperatives on Their Communities – USDA
- National Council of Farmer Cooperatives
More Resources:
- The Energetics of Ethanol: An Introduction and Link to Studies – How much energy does it take to make a gallon of ethanol? Make up your own mind by looking at the studies themselves!
- Cellulosic Biofuels: Another Opportunity for Washington to Marry Agriculture and Energy Goals – by David Morris, published in Ethanol Today Magazine, May 2008
- Ethanol and Land Use Changes
This February 2008 policy brief criticizes the authors of two recent studies published in Science for advancing a conclusion not supported by their own studies. The paper notes that the vast majority of today’s ethanol production comes from corn cultivated on land that has been in corn production for generations. Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions.(View Press Release) - Scale & Ownership of Renewable Energy – a presentation by John Farrell at the Local Energy Initiatives Forum in Cloquet, MN on September 13, 2007
- Wind and Ethanol: Economies and Diseconomies of Scale – This August 2007 report finds that there are indeed small cost reductions from very large scale, absentee owned renewable energy facilities. But that these are overshadowed by the significant loss in potential economic benefits from locally owned and more modestly scaled facilities.
- Give Ethanol a Chance: The Case for Corn-Based Fuel – by David Morris, published on AlterNet, June 13, 2007
- Energizing Rural America: Local Ownership of Renewable Energy Production is the Key
This January 2007 paper by David Morris was originally published by the Center for American Progress. This report argues that Congress must recognize the dramatic benefits of clean, renewable energy on rural communities and then ensure that the federal farm bill policies work to maximize local ownership of the rapidly expanding biofuels and wind energy industries. Numerous policy options are recommended. - Making Cellulosic Ethanol Happen: Good and Not So Good Public Policy – This January 2007 report provides an analysis of federal policies that are both good and bad related to creating a viable cellulosic ethanol industry based on two building blocks: 1) Commercial technologies that produce ethanol from cellulose and 2) A cultivation, transportation and storage infrastructure that delivers cellulose to biorefineries
- By the People, For the People: Toward a community-owned, decentralized biofuel future – by David Morris published in Grist, December 8, 2006
- The Strange Legislative History of the Cellulosic Ethanol Mandate – by David Morris, in RenewableEnergyAccess.com, December 4, 2006
- Ethanol as a Renewable Fuel: An Overview – video of a speech by David Morris, ILSR Vice President, presented at the Minnesota Pollution Control Agency’s Air Quality Series, September 28, 2006 (streaming video, 1.5 hours)
- Putting the Pieces Together: Commercializing Cellulosic Ethanol – September 2006
A report examining federal policies supporting cellulosic ethanol production and advocating that the Federal government adopt strategies that support farmer-owned biorefineries. [see also ILSR Press Release] - The New Ethanol Future Demands a New Public Policy – by David Morris, June 21, 2006 [this is an expanded version of an opionion column published in the NY Times – also in PDF]
- The Once and Future Carbohydrate Economy – by David Morris, published in the American Prospect magazine, March 2006
- Ownership Matters: Three Steps to Ensure a Biofuels Industry That Truly Benefits Rural America
This February 2006 paper by David Morris was adapted from a speech given at the Minnesota Ag Expo 2006. The paper provides a snapshot of today’s biofuels industry and a roadmap to ensure that local farmers see significant benefits from the expanding industry in the future. - How Much Energy Does It Take to Make A Gallon of Ethanol?– Institute for Local Self-Reliance, August 1995