41-112. Arizona biofuels conversion program; fund; program termination; definitions

A. The Arizona biofuels conversion program is established in the governor's office of energy policy to encourage the use of biofuels.

B. The Arizona biofuels conversion program fund is established consisting of monies received through gifts, grants, donations, other state and United States government funds or private sources.

C. The office of energy policy shall develop a procedure for awarding grants from the fund to provide for conversion of existing and installation of new storage and dispensing equipment for biofuels as follows:

1. For commercial motor fuel dispensing sites, the procedure for awarding grants shall include consideration of traffic patterns, the proximity to other biofuel dispensing sites, fleet involvement, the population of vehicles that uses biofuels and the costs of the project.

2. For county, city, town and school district motor fuel dispensing sites, the procedure for awarding grants shall include consideration of the project plan, the expected usage of biofuels per year for each site, the number of vehicles in the fleet capable of using biofuels and the costs of the project.

3. For wholesale manufacturing and distribution facility sites, the procedure for awarding grants shall include consideration of the project plan, the type of biofuel to be manufactured or distributed, an assessment of potential customers for the biofuel to be manufactured or distributed, how the project furthers the use of biofuels and the costs of the project.

D. The office of energy policy shall administer the program and the fund.

E. Subject to the availability of monies in the fund, the office of energy policy shall award grants equal to the lesser of seventy-five thousand dollars or the conversion cost per site to applicants who provide an acceptable project plan that includes a detailed cost schedule and timeline for the completion of the project.

F. Monies in the fund:

1. Shall be spent only for the purposes prescribed in this section, except that the office of energy policy may use up to five percent of the monies in the fund each year to administer the program.

2. Are continuously appropriated.

3. Are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

G. The program established by this section ends on July 1, 2015 pursuant to section 41-3102.

H. For the purposes of this section, " biofuel" and " biomass" have the same meanings prescribed in section 3-3401.