La. Admin. Code tit. 7 § XXXVI-103

Current through Register Vol. 50, No. 11, November 20, 2024
Section XXXVI-103 - Definitions
A. In addition to definitions listed below and unless otherwise provided, the definitions in R.S. 3:3703 shall apply to these regulations.

Act-the Agricultural Ethanol Production Law.

Adjudicatory Proceeding-an open public hearing by the board to determine whether violations of the Act or these regulations have occurred. Such proceedings are conducted in accordance with the Louisiana Administrative Procedure Act (R.S. 49:950 et seq.).

Agency Contract-a contract between a certified market participant and an intermediary, such as a grain dealer or warehouseman, who purchases or stores agricultural commodities or products for use in ethanol.

Agricultural Commodities or Products-crops and products made from processing crops. Commodities or products shall include sugar cane, grains (rice, rough rice, corn, wheat, oats, rye, soybeans, barley, milo and grain sorghum), sweet potatoes and sugar beets. Products shall include syrup and molasses. Any other agricultural commodity or product capable of producing ethanol may be declared to be an agricultural product or commodity by the board.

Applicant-a person who applies for designation as a certified market participant.

Authorized Agent-any representative of a certified market participant whose name has been filed with the board is empowered by the certified market participant and the board to act for or on behalf of a certified market participant.

Blender-any person who purchases and mixes ethanol and gasoline for sale as gasohol and who files the required reports with the Louisiana Department of Revenue and Taxation.

Board-the Agricultural Industry Board established by R.S. 3:3704.

Capital Costs-all expenditures made for the acquisition of land, equipment, buildings, engineering, construction interests and other expenses necessary to build an ethanol facility.

Central Registry-the public filing and listing of security devices encumbering agricultural crops, commodities or products maintained by the commissioner.

Certified Market Participant-an applicant approved by the board to participate in a cooperative endeavor authorized under this Chapter.

Certified Market Participant Confidential Business Plan-a confidential financial document or series of documents presented by an applicant or certified market participant periodically with the board, containing proposed agency and producer contracts and all other confidential and financial audit information.

Certified Market Participant Contract-a contract or cooperative endeavor between the board and a certified market participant relating to the production of ethanol.

Commissioner-the Louisiana Commissioner of Agriculture and Forestry or his duly authorized representative.

Controlling Interest-ownership by an individual or his spouse, either individually or collectively, of an interest in a person or entity which exceeds 25 percent of any legal entity.

Cooperative Endeavor-a contractual relationship between the state of Louisiana through the board with a person for a public purpose.

Ethanol-an ethyl alcohol which meets all of the following conditions in that it:

a. has a purity of at least 99 percent, determined without regard to any added denaturants;

b. has been denatured in conformity with one of the approved methods set forth by the United States Bureau of Alcohol, Tobacco and Firearms;

c. has been derived from agricultural commodities or products; and

d. has been produced in the state of Louisiana wholly from fermentation and distillation in the state of Louisiana.

Ethanol Facility-a facility:

a. which is located in Louisiana;

b. owned or leased and shall be permanently constructed or converted and operated for the purpose of producing ethanol as its primary product from agricultural commodities or products;

c. whose entire production, fermentation and distillation shall occur in Louisiana; and

d. whose ethanol shall be produced and sold for use in gasohol in Louisiana.

First Point of Sale-

a. the initial time when title to agricultural commodities or products passes from a seller to a buyer; or

b. the time when agricultural commodities or products are removed from storage.

Fund-the Agricultural Industry Incentive Fund established by R.S. 3:3706.

Gasohol-a fuel that contains not more than 90 percent gasoline and at least 10 percent ethanol.

Gasohol Multiplier-the number 10, which reflects the fact that 10 gallons of gasohol contains at least one gallon of ethanol.

Grain Dealer-any person who purchases agricultural commodities or products from producers, sells agricultural commodities for producers or represents producers in the purchase or sale of agricultural commodities. The term does not include producers who purchase grain commodities for their own use as feed or seed.

Intermediary-any person who purchases or stores agriculture commodities to be used to produce ethanol by a certified market participant. Grain dealers, a warehousemen and warehouse operators are intermediaries.

Licensee-any person holding a license as a warehouse or grain dealer issued by the Louisiana Agricultural Commodities Commission.

Person-any individual, partnership, association, corporation or other legal entity.

Principal Managers-the individuals or persons responsible for the daily operation of an ethanol facility.

Principal Office-the location where the records of the certified market participant will be maintained in the state of Louisiana.

Principal Stockholders or Owners-any individual who owns directly or indirectly 10 percent of an ethanol facility operated by a certified market participant.

Producer-a farmer, individual or person that engages in the production of agricultural commodities or products.

Producer Contracts-a two or three party contract between and among an agriculture producer, certified market participant and intermediaries, such as a grain dealer or a warehouseman.

Production Records-written evidence of the ethanol produced daily by a certified market participant.

Rules or Regulations-the rules or regulations adopted by the Agricultural Industry Board under the authority granted by the Act.

Scale Ticket-the document issued to a producer when agricultural commodities or products are delivered to intermediaries such as a warehouse or grain dealer.

Security Device-any assignment, pawn, pledge, mortgage, privilege, lien or other device by which an interest in agricultural commodities or products is encumbered, either legally or conventionally, to secure the fulfillment of any obligation.

Settlement Sheets-documents which reconcile contracts, shipping tickets, charges, deductions and payments to determine the value and quantity of agriculture commodities or products received by the certified market participant.

Shipping Documents-the written evidence of ethanol produced and shipped by a certified market participant.

Sold for Use in Gasohol-that ethanol will be blended with gasoline and Louisiana taxes are paid on the sale of gasohol in Louisiana. This intent is evidenced by any document of gasohol sales as reported to the Louisiana Department of Revenue and Taxation on its Monthly Motor Fuels Report.

Spot or Spot Sale-a transaction where title to agricultural commodities or products passes from the producer to the buyer on the day of delivery, in which transaction the producer is paid promptly at the market price established on the day of delivery.

Storage-the physical possession by a warehouse, in any manner and/or under any type of fee arrangement, of agricultural commodities or products belonging to any person other than the owner of the warehouse. The term storage does not apply to a transaction in which title passes from the seller to the buyer upon delivery.

Taxes Imposed on Gasohol-any state tax levied on gasohol and includes any tax levied on gasohol under the provisions of R.S. 47:711, R.S. 47:802, R.S. 47:302(A), and R.S. 47:331(A).

Under Substantial Construction-the certified market participant has entered into binding contracts for capital costs, including contracts for the purchase of land, engineering, capital construction and all other projects costs, the total of which shall be not less than 25 percent of the project costs.

Warehouse-any building, structure or any other protected enclosure in which agricultural commodities or products or farm products are stored for the public for a fee. The term includes facilities which commingle commodities, facilities which preserve the identity of separate lots of agricultural commodities or products and facilities which dry and/or condition agricultural commodities or products belonging to any person other than the facility owner.

Warehouseman or Warehouse Operator-any person or entity operating a warehouse.

La. Admin. Code tit. 7, § XXXVI-103

Promulgated by the Department of Agriculture and Forestry, Office of Management and Finance, Agricultural Industry Board, LR 12:503 (August 1986), amended LR 13:11 (January 1987).
AUTHORITY NOTE: Promulgated in accordance with R.S. 3:3703 and R.S. 3:3704.