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Bill > HB2012


KS HB2012

Substitute for HB 2012 by Committee on Agriculture and Natural Resources - Establishing the ethanol grant program fund and transferring an amount of not to exceed $5,000,000 from the state general fund to the ethanol grant program fund each July 1 beginning in 2026.


summary

Introduced
01/15/2025
In Committee
03/21/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

AN ACT concerning agriculture; establishing the ethanol grant program fund; requiring the secretary of agriculture to administer such fund; transferring an amount of not to exceed $5,000,000 from the state general fund to the ethanol grant program fund on July 1, 2026, and each July 1 thereafter; establishing the ethanol grant program; allowing approved retailers to receive a reimbursement grant at a rate of not to exceed $.05 per gallon of higher ethanol blend sold; setting a $500,000 cap per fiscal year for each approved retailer; requiring the secretary to prorate the total amount of grant moneys distributed to each approved retailer if the total amount of the approved grants for a fiscal year exceeds the amount transferred; abolishing the ethanol grant program fund on September 1, 2030.

AI Summary

This bill establishes an ethanol grant program fund designed to incentivize the sale of higher ethanol blend fuels in Kansas, which are motor vehicle fuels containing between 15% and 85% ethanol. The program will transfer up to $5 million annually from the state general fund to the ethanol grant program fund beginning in July 2026, with the goal of encouraging retailers to sell more higher ethanol blend fuel. Retailers can apply for reimbursement grants each July, with the amount based on their increased sales of higher ethanol blend compared to the previous fiscal year, at a rate of up to $0.05 per gallon sold. Each retailer is capped at receiving $500,000 in grants per fiscal year, and if total grant requests exceed the fund's balance, the secretary of agriculture will proportionally reduce the reimbursement rate. The program includes provisions to prevent fraud, requiring retailers to verify their sales reports, and includes penalties for fraudulent claims. The ethanol grant program is set to expire on September 1, 2030, at which point any remaining funds will be transferred back to the state general fund and the program will be abolished. The bill aims to support Kansas agriculture and promote the use of ethanol-blended fuels.

Committee Categories

Agriculture and Natural Resources, Budget and Finance

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Agriculture and Natural Resources (H)

Last Action

House Withdrawn from Calendar; Referred to Committee on Agriculture and Natural Resources (on 03/21/2025)

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