The Ethanol Production and Marketing Incentive Regulations
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1 ETHANOL PRODUCTION 1 The Ethanol Production and Marketing Incentive Regulations Repealed by Saskatchewan Regulations 27/97 (effective April 23, 1997). Formerly Chapter D-8 Reg 6 (effective November 5, 1987) as amended by Saskatchewan Regulations 111/88, 91/91, 88/93 and 73/95. NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.
2 2 ETHANOL PRODUCTION Table of Contents 1 Title PART I Ethanol Production For Blended Fuel of Ethanol Products 2 Interpretation 3 Application 4 Required records 5 Grant 6 Audit and inspection 7 Overpayment PART II Ethanol Production other than for Blended Gasoline or Beverage Alcohol 8 Interpretation 9 Application 10 Required records 11 Grant 12 Audit and inspection 13 Overpayment
3 ETHANOL PRODUCTION 3 CHAPTER The Department of Agriculture Act Title 1 These regulations may be cited as The Ethanol Production and Marketing Incentive Regulations. PART I Ethanol Production For Blended Fuel or Ethanol Products Interpretation 2 In this part: (a) applicant means a supplier who applies for a grant pursuant to section 3; (b) Repealed. 23 Dec 88 SR 111/88 s3; (c) ethanol means biologically derived anhydrous ethyl alcohol that is produced in Saskatchewan solely from Saskatchewan grown grain; (c.1) ethanol-blended gasoline means any blend of gasoline or gasolinemethanol that contains ethanol; (d) Repealed. 23 Dec 88 SR 111/88 s3; (e) gasoline means any liquid hydrocarbon fuel used to generate power by means of a spark-ignited internal combustion engine; (f) grant means a grant paid pursuant to section 5; (g) methanol means methyl alcohol; (h) producer means a person who: (i) produces or manufactures ethanol in Saskatchewan from Saskatchewan grown grain; and (ii) sells or provides that ethanol to an applicant; (i) supplier means a refiner, distributor or any other person who: (i) sells or provides enthanol-blended gasoline to a service station, bulk fuel dealer or any other person who, in turn, makes the blended fuel or gasohol available for retail sale in Saskatchewan; and (ii) is a collector pursuant to The Fuel Tax Act, Oct 87 cd-8 Reg 6 s2; 23 Dec 88 SR 111/88 s3; 4 Oct 91 SR 91/91 s4.
4 4 ETHANOL PRODUCTION Application 3(1) A supplier who wishes to obtain a grant shall apply to the minister on a form provided or authorized by the minister. (2) An applicant shall supply the minister, at the time the application is submitted or at any subsequent time, with any information that the minister may require in order to determine the applicant s eligibility for a grant. 23 Oct 87 cd-8 Reg 6 s3. Required records 4(1) No applicant is eligible for a grant unless he: (a) maintains records disclosing: (i) with respect to each purchase or acquisition of ethanol or ethanolblended gasoline: (A) the name and address of the seller, producer or seller and producer, as the case may be; or (B) the amount and type purchased or acquired; and (C) the consideration paid by the applicant; (ii) with respect to each sale or disposition of ethanol or ethanolblended gasoline: (A) the name and address of the purchaser or recipient; (B) the amount and type sold or disposed; and (C) the consideration received by the applicant; (iii) the dates and details of any mixing or blending of ethanol conducted by or on behalf of the applicant; (iv) the amount of tax imposed by The Fuel Tax Act, 1987 that the applicant collected with respect to the sale or provision of enthanolblended gasoline; and (v) the amount claimed as a grant; and (b) provides records proving to the satisfaction of the minister that the ethanol in the ethanol-blended gasoline that the applicant has sold or disposed of was produced in Saskatchewan solely using Saskatchewan grown grain and, without limiting the generality of the foregoing, provides records from the producer disclosing: (i) the dates and amounts of each purchase or acquisition of grain and other materials used or intended to be used in the production of ethanol and the name and address of the seller or supplier; (ii) the date, amount and grade of ethanol produced and the grain and other materials used to produce that ethanol; and (iii) the date and amount of each sale or disposition of ethanol, the amount of consideration received by the producer and the name and address of each purchaser or recipient of the ethanol.
5 ETHANOL PRODUCTION 5 (2) Every producer shall: (a) maintain; and (b) make available to an applicant for the purposes of clause (1)(b); records that are sufficient to prove to the minister that ethanol sold by the producer to the applicant was produced in Saskatchewan solely using Saskatchewan grown grain. 23 Oct 87 cd-8 Reg 6 s4; 23 Dec 88 SR 111/88 s4. Grant 5(1) Where the minister: (a) receives an application pursuant to section 3; and (b) is satisfied that the applicant is eligible for a grant and has complied with these regulations; he may provide financial assistance by way of a grant to the applicant in an amount calculated in accordance with subsection (2). (2) The amount of a grant provided pursuant to subsection (1) is not to exceed the product of: (a) the quotient obtained by dividing by 10 the percentage of ethanol by volume in each litre of ethanol-blended gasoline sold or provided by the applicant for eventual retail sale in Saskatchewan; (b) 4 ; and (c) the number of litres of ethanol-blended gasoline sold or provided by the applicant for eventual retail sale in Saskatchewan. (3) Where the minister provides financial assistance by way of a grant to an applicant, the minister shall provide that financial assistance: (a) for each of the first four years of production by a producer who is under contract with the applicant; and (b) with respect to ethanol-blended gasoline blended from ethanol produced by the producer mentioned in clause (a) and sold or provided by the applicant for eventual retail sale in Saskatchewan. (4) Notwithstanding subsections (1) and (3), if the minister is satisfied that a producer with whom an applicant has entered into a contract has not commenced production of ethanol within two years of the date the contract was entered into, the minister may provide financial assistance to the applicant for a period of less than four years with respect to any ethanol-blended gasoline that is: (a) blended from ethanol produced by that producer; and (b) sold or provided by the applicant for eventual retail sale in Saskatchewan.
6 6 ETHANOL PRODUCTION (5) No applicant is eligible for financial assistance with respect to ethanolblended gasoline if the producer that sold or provided him with the ethanol necessary to produce that gasoline: (a) has received; (b) is receiving; or (c) has applied for; assistance or benefit, either directly or indirectly, from any program pursuant to any Act other than The Department of Agriculture Act or other regulations with respect to the production of that ethanol. (6) No applicant is eligible for a grant pursuant to this Part with respect to ethanol produced by a production facility where: (a) a grant has been paid to the applicant or any other person pursuant to Part II with respect to ethanol produced by the facility; and (b) more than four years has passed since the applicant or other person who or that received the grant was determined to have been eligible to receive it. (6.1) At the expiration of the four-year period mentioned in clause (6)(b), the minister may pay a grant to an applicant for a further period of three months, at a rate not to exceed $0.25 per litre of ethanol sold or provided by the applicant for eventual retail sale in Saskatchewan during the three-month period. (6.2) The minister may pay a grant pursuant to subsection (6.1) only where the minister is of the opinion that to do so is necessary to ensure the economic viability, when assistance is no longer available pursuant to these regulations, of a producer who has entered into a contract with the applicant. (7) No applicant is eligible for a grant pursuant to this Part with respect to ethanol produced by a production facility that was not in operation on or before the date on which The Ethanol Production and Marketing Incentive Amendment Regulations, 1993 came into force. 23 Oct 87 cd-8 Reg 6 s5; 23 Dec 88 SR 111/88 s5; 4 Oct 91 SR 91/91 s5; 5 Nov 93 SR 88/93 s3; 24 Nov 95 SR 73/95 s3. Audit and inspection 6(1) Every applicant and producer shall make the records kept pursuant to section 4 available, at reasonable times and at a place in Saskatchewan, for audit and inspection by: (a) the minister; and (b) any officer or employee of the department or the Department of Finance who is authorized by the minister to conduct audits and inspections for the purposes of these regulations.
7 ETHANOL PRODUCTION 7 (2) Every applicant shall,at reasonable times and at a place in Saskatchewan, make available to the persons described in subsection (1), any sample of ethanolblended gasoline: (a) for which the applicant is claiming a grant; and (b) that the person described in subsection (1) requires for testing to ensure it is ethanol-blended gasoline as defined by these regulations. 23 Oct 87 cd-8 Reg 6 s6; 23 Dec 88 SR 111/88 s6. Overpayment 7 Where for any reason an overpayment of a grant has occurred, the amount of the overpayment is deemed to be a debt due to Her Majesty in right of Saskatchewan and may be recovered in any manner allowed by law. 23 Oct 87 cd-8 Reg 6 s7. PART II Ethanol Production other than for Blended Gasoline or Beverage Alcohol Interpretation 8(1) In this Part: (a) applicant means a producer who applies for a grant pursuant to section 9; (b) beverage alcohol means beverage alcohol as defined by The Alcohol Control Act; (c) ethanol means biologically derived anhydrous ethyl alcohol that is produced in Saskatchewan solely from Saskatchewan grown grain; (c.1) fiscal year means the period commencing on April 1 in one year and ending on March 31 in the following year; (d) grant means a grant paid pursuant to section 11; (e) producer means a person who produces or manufactures ethanol in Saskatchewan from Saskatchewan grown grain. (2) For the purposes of this Part arms length has the same meaning that it has pursuant to The Income Tax Act (Canada). 4 Oct 91 SR 91/91 s6; 5 Nov 93 SR 88/93 s4. Application 9(1) An applicant who wishes to obtain a grant shall apply to the minister on a form provided or authorized by the minister.
8 8 ETHANOL PRODUCTION (2) An applicant shall supply the minister, at the time the application is submitted or at any subsequent time, with any information that the minister may require in order to determine the applicant s eligibility for a grant. 4 Oct 91 SR 91/91 s6. Required records 10 No applicant is eligible for a grant unless the applicant: (a) maintains records disclosing with respect to each sale of ethanol: (i) the name and address of the purchaser or recipient; (ii) the amount and type sold; (iii) the consideration received by the applicant for the ethanol; and (iv) the amount claimed as a grant; and (b) provides records proving to the satisfaction of the minister that the ethanol the applicant has sold was produced in Saskatchewan solely using Saskatchewan grown grain and, without limiting the generality of the foregoing, provides records from the producer disclosing: (i) the dates and amounts of each purchase or acquisition of grain and other materials used or intended to be used in the production of ethanol and the name and address of the seller or supplier of the grain or materials; (ii) the date, amount and grade of ethanol produced and the amount and kind of grain and other materials used to produce that ethanol. 4 Oct 91 SR 91/91 s6. Grant 11(1) Where the minister: (a) receives an application pursuant to section 9; and (b) is satisfied that the applicant is eligible for a grant and has complied with these regulations; the minister, subject to this section, may provide financial assistance by way of a grant to the applicant. (2) The amount of a grant provided pursuant to subsection (1) is not to exceed $0.40 for each litre of ethanol produced and sold to an arms length purchaser or recipient: (a) to a maximum of two million litres per fiscal year for a production facility of the applicant; or (b) where an applicant is only eligible for a grant with respect to a production facility for a portion of a fiscal year, to a maximum number of litres for the production facility that is equal to the quantity M calculated in accordance with the following formula:
9 ETHANOL PRODUCTION 9 M= 2,000,000 N 12 where N is the number of months during the fiscal year for which the applicant is eligible for a grant with respect to the production facility. (3) Where the minister provides financial assistance by way of a grant to an applicant the minister shall provide that assistance for each of the first four years of production of ethanol by the applicant. (4) No applicant is eligible for a grant with respect to ethanol if: (a) the applicant: (i) has received; (ii) is receiving; or (iii) has applied for; assistance or benefit, either directly or indirectly, from any program pursuant to any Act other than The Department of Agriculture Act or other regulations with respect to the production of that ethanol; (b) the production facility, regardless of the ownership of it, that is supplying the ethanol has been the subject of a contract: (i) that has been in effect for more than four years; and (ii) with any applicant who or that has received a grant under Part I; or (c) the ethanol is to be used for beverage alcohol. (4.1) At the expiration of the four-year period mentioned in subclause (4)(b)(i), the minister may pay a grant to an applicant for a further period of three months, at a rate not to exceed $0.25 per litre of ethanol produced and sold by the applicant to an arms length purchaser or recipient during the three-month period. (4.2) The minister may pay a grant pursuant to subsection (4.1) only where the minister is of the opinion that to do so is necessary to ensure the economic viability of the applicant when assistance is no longer available pursuant to these regulations. (5) No applicant is eligible for a grant with respect to ethanol produced by a facility that was not in operation on or before the date on which The Ethanol Production and Marketing Incentive Amendment Regulations, 1993 came into force. 4 Oct 91 SR 91/91 s6; 5 Nov 93 SR 88/93 s5 24 Nov 95 SR 73/95 s4. Audit and inspection 12(1) Every applicant shall make the records retained as required by section 10 available, at reasonable times and at a place in Saskatchewan, for audit and inspection by: (a) the minister; and
10 10 ETHANOL PRODUCTION (b) any officer or employee of the department or the Department of Finance who is authorized by the minister to conduct audits and inspections for the purposes of these regulations. (2) Every applicant shall, at reasonable times and at a place in Saskatchewan, make available to the persons described in subsection (1), any sample of ethanol: (a) for which the applicant is claiming a grant; and (b) that the person described in subsection (1) requires for testing to ensure it is ethanol as defined by these regulations. 4 Oct 91 SR 91/91 s6. Overpayment 13 Where for any reason an overpayment of a grant has occurred, the amount of the overpayment is deemed to be a debt due to Her Majesty in right of Saskatchewan and may be recovered in any manner allowed by law. 4 Oct 91 SR 91/91 s6. REGINA, SASKATCHEWAN Printed by the authority of THE QUEEN S PRINTER Copyright 1996
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