§ 3:3712 — Purchase of feedstock by operators of renewable fuel manufacturing facilities; notice

§3712. Purchase of feedstock by operators of renewable fuel manufacturing facilities; notice
requirements; annual report
A. The legislature hereby finds and declares that the production of renewable fuels
in Louisiana derived from Louisiana feedstock is vital to the health of the agricultural
economy of Louisiana. The use of renewable domestic fuels such as ethanol and biodiesel
will increase available supplies of motor fuels without increasing dependency on foreign oil.
The construction and operation of facilities manufacturing renewable fuels will serve as an
economic boost to many rural areas of our state. Assuring that the optimal use of Louisiana
grown crops in the manufacturing of renewable fuels by facilities located in Louisiana will
provide a deeper, broader and longer-lasting benefit to the state's economy and is a matter
of public policy.
B. The purpose of this Chapter is to assure that Louisiana farmers have the
opportunity to have Louisiana harvested crops purchased as feedstock by operators of
renewable fuels manufacturing facilities in Louisiana by requiring the collection and
reporting of information regarding the operation of the facilities and to provide for the
certification of the facilities for certain programs provided by this state.
C. The provisions of this Section shall apply to all renewable fuels manufacturing
facilities who have either been assigned by Louisiana Works a North American Industrial
Classification System code within the nonpotable ethyl alcohol manufacturing Sector 325193
or a facility that produces biodiesel or other fuel additives and must register with the United
States Environmental Protection Agency according to the requirements of 40 CFR 79.
D.(1) Beginning July 1, 2006, there will be a presumption that renewable fuel plants
operating in Louisiana and deriving ethanol from the distillation of corn shall use as
feedstock at least twenty percent of the corn crop harvested in Louisiana. In succeeding years,
the minimum percentage of Louisiana harvested corn used to produce renewable fuel in
Louisiana facilities shall be at least the same percentage of corn used nationally to produce
renewable fuel as reported by the United States Department of Agriculture's Office of the
Chief Economist.
(2) Beginning July 1, 2006, there will be a presumption that renewable fuel plants
operating in Louisiana and deriving biodiesel from soybeans and other crops shall use as
feedstock at least two and a half percent of the soybean crop harvested in Louisiana. In
succeeding years, the minimum percentage of Louisiana harvested soybeans presumptively
to be used to produce renewable fuel in Louisiana facilities shall be the percentage of
soybeans used nationally to produce renewable fuel as reported by the United States
Department of Agriculture's Office of the Chief Economist.
(3) As additional crops are used in the production of renewable fuels at facilities in
Louisiana, there will be a presumption that renewable fuel plants operating in Louisiana shall
use Louisiana harvested crops in a percentage rate at least equal to the percentage of the
crops's usage nationally in the production of renewable fuel as reported by the United States
Department of Agriculture's Office of the Chief Economist.
(4)(a) In an effort to enable the renewable fuel plants in operation in Louisiana to
systematically increase the use of Louisiana crops as feedstock over time as provided in this
Subsection, the provisions of R.S. 3:4674, except as it relates to biodiesel, shall not be
effective until six months after the average wholesale price of a gallon of Louisiana-manufactured ethanol, less any federal alcohol fuel mixture tax credit, is equal to or below
the average wholesale price of a gallon of regular unleaded gasoline in Louisiana for a period
of not less than sixty days, as determined by the commissioner of agriculture and forestry.
(b) In gathering pricing information to be used in making the determination required
by Subparagraph (a), the commissioner shall rely upon sales in Louisiana and shall utilize
recognized information services, including but not limited to the Oil Price Information
Service.
(c) The commissioner shall provide public notice of his determination in the
Louisiana Register within ten days after the determination is made.
E. To improve dissemination of information regarding supply needs of renewable
fuel manufacturing facilities operating in Louisiana and to assure that Louisiana farmers are
adequately and timely informed about the feedstock needs of these facilities, the operators
of all renewable fuel manufacturing facilities shall, at least one hundred eighty days prior to
the start of commercial operation of such facilities, provide notice to the commissioner of
agriculture and forestry, the secretary of the Department of Conservation and Energy, and the
secretary of Louisiana Economic Development.
F. The initial notice shall also contain the anticipated production level for the
facility's first twelve months of operation, the amount and type of feedstock anticipated
necessary to meet production levels for the first twelve months of operation, the location
from where the feedstock originated if already secured, and the steps taken to obtain
feedstock from Louisiana harvested crops. The report shall also itemize the federal, state,
and local grants, loans or incentive program benefits obtained by the facility obtained for the
construction or operation of the facility.
G. By December thirty-first of each calendar year, renewable fuels manufacturers
operating in the state shall provide notice to the commissioner of agriculture and forestry of
their anticipated production levels and specific feedstock requirements for the next calendar
year so that Louisiana farmers will be able to adjust, if necessary, the crops they intend to
plant and harvest during the upcoming growing season.
H. Each renewable fuels manufacturing facility operating in Louisiana shall provide
an annual report to the commissioner of agriculture and forestry, the secretary of the
Department of Conservation and Energy, and the secretary of Louisiana Economic
Development certifying that it has purchased all of the competitively priced Louisiana
feedstock available during its operations. The report shall also list the production levels for
the previous twelve months, the amount and type of feedstock used to achieve the production
levels, the location from where the feedstock originated, and the steps taken to obtain
Louisiana harvested feedstock. The report shall also itemize the financial benefits that the
facility has received from the state, including but not limited to the use of state grants,
state-assisted financing, participation in the Quality Jobs Program, the Enterprise Zone
Program, and the 10-Year Industrial Exemption Program.
I. The commissioner of agriculture and forestry shall promulgate rules and
regulations with regard to documenting the information supplied by the renewable fuels
manufacturing facilities as provided for in this Section.

Legislative History

Acts 2006, No. 656, §1, eff. July 1, 2006; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2013, No. 184, §6; Acts 2023, No. 150, §1, eff. Jan. 10, 2024.