Missouri Incentives for Schools to Buy Biodiesel from Cooperatives

Date: 20 Nov 2008 | posted in: agriculture, Energy, environment | 0 Facebooktwitterredditmail

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:

More Resources: