Missouri bill aims to extend ethanol producer incentive fund

By Erin Voegele | April 13, 2016

The Missouri House of Representatives has passed legislation that aims to extend the sunset date on the state’s ethanol producer incentive fund from Dec. 31, 2015 to Dec. 31, 2020.

The Missouri Ethanol Produce Incentive Fund is administered by the Missouri Department of Agriculture. It was established in 1988 to encourage ethanol production within the state. According to information published by the Missouri Department of Agriculture, ethanol produced in the state by a facility that is at least 51 percent owned by agricultural producers and uses grains produced within the state as feedstock is eligible for a grant equal to 20 cents per gallon for the first 12.5 million gallons, and 5 cents per gallon for the next 12.5 million gallons. The maximum annual grant is $3.125 million, and ethanol producers can be eligible for such grants for 60 months.

The legislation, H.B. 1413, was introduced in early 2016. The measure passed the Missouri House by 1004 to 47 on April 5. The Missouri Senate is now considering the bill, which was referred to the Senate Agriculture, Food Production and Outdoor Resources Committee.

Additional information on the bill is available on the Missouri legislature website.