House committee approves amended bill creating ethanol grant program to promote higher-ethanol blends

The Kansas House Committee on Agriculture voted to pass House Bill 2012, as amended, creating an Ethanol Grant Program to incentivize retail sales of higher-ethanol motor fuel blends (15% ethanol or greater).

Representative Kyle Hamilton, committee staff, outlined the substitute language that converts an income tax credit into a grant fund administered by the Kansas Department of Agriculture. "The Ethanol Grant Program Fund would be administered by the secretary of agriculture," Hamilton said, and he explained the mechanics: a retailer may apply in July of each fiscal year with a verified report of gallons of higher-ethanol blends sold in the preceding fiscal year; grants would reimburse retailers up to 5¢ per gallon on the increase in higher-blend gallons sold between two fiscal years, subject…