2010 Session

Budget Amendments - SB30 (Member Request)

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Chief Patron: Marsh
Biofuels Facility Incentive Payment

Item 96 #1s

Item 96 #1s

First Year - FY2011 Second Year - FY2012
Commerce And Trade
Economic Development Incentive Payments FY2011 $2,500,000 FY2012 $6,500,000 GF

Page 51, line 39, strike "$38,950,436" and insert "$41,450,436".
Page 51, line 39, strike "$44,310,384" and insert "$50,810,384".
§Page 54, after line 3, insert:
"K.  Out of the appropriation for this item, $2,500,000 the first year and $6,500,000 the second year shall be deposited in the Biofuels Production Fund, as established in § 45.1-393 of the Code of Virginia.  Such funds shall be used to provide a grant in support of the location and construction of a non-advanced neat biofuel production facility in the City of Hopewell.  In accordance with § 45.1-393 et. seq, of the Code of Virginia, the grant shall be in an amount equal to $0.10 for each gallon of neat biofuels produced and sold by the facility in each calendar year.  The Director of the Department of Mines, Minerals and Energy shall certify to the Director of the Department of Planning and Budget that such company has established its eligibility to receive such funds by commencing qualifying sales during calendar year 2010."

(This amendment fulfills the Commonwealth's economic development commitment to a company that selected Virginia for the location of the nation's first barely ethanol production facility. This $170 million investment, which is the largest alternative energy project in Virginia, will produce 65 million gallons per year of alternative fuel and is on schedule to be completed in June 2010. The Commonwealth marketed funding from the Virginia Biofuel Production Fund as an economic development incentive to locate in the City of Hopewell. Funding for this commitment was not included in the introduced budget. A companion amendment to Item 111 strikes language in the introduced budget regarding the intent to fund the grant if the facility meets required production levels.)