# Title 17 — Energy

## Chapter 17-06 — Ethanol Council

### § 17-06-01. Definitions.

As used in this chapter:
1. "Council" means the North Dakota ethanol council.
2. "Producer" means the owner of a facility that is located in this state and which
produces annually more than one million gallons of agriculturally derived denatured
ethanol that is suitable for blending with a petroleum product for use in internal
combustion engines.
### § 17-06-02. Council - Membership - Election - Term.

1. The council consists of one individual appointed by each producer.
2. Each member of the council must be employed by a producer in the state.
3. The term of each member is four years and begins on April first following the members'
appointment. The terms must be staggered by the council to ensure that an
approximately equal number of appointments expire each year.
4. If at any time during a member's term the member ceases to possess any of the
qualifications provided by this section, the member's office is deemed vacant and the
producer who appointed that member shall appoint another qualified individual for the
remainder of the term.
### § 17-06-03. Election of chairman - Meetings.

1. Annually, the council shall elect one member to serve as the chairman.
2. The chairman shall call all meetings of the council and shall call a special meeting of
the council within seven days when petitioned to do so by three council members.
### § 17-06-04. Council members - Compensation.

Each member of the council is entitled to receive compensation in the amount established
by the council, but not exceeding one hundred thirty-five dollars per day plus reimbursement for
expenses as provided by law for state officers if the member is attending meetings or
performing duties directed by the council.
### § 17-06-05. Council - Powers.

1. The council may:
a. Expend moneys collected pursuant to this chapter for its administration;
b. Employ, bond, and compensate necessary personnel;
c. Accept gifts, grants, and donations of money, property, and services to carry out
this chapter;
d. Contract with any person for any purpose permitted under this chapter;
e. Sue and be sued; and
f. Do all things necessary and proper to enforce and administer this chapter.
2. The council may not engage in a commercial business enterprise.
### § 17-06-06. Council - Duties.

1. The council shall determine the uses to which any moneys raised under this chapter
may be expended. The uses may include:
a. The funding of research, education programs, promotion, and market
development efforts; and
b. The support of state, regional, national, and international entities that promote
ethanol utilization.
2. The council shall develop and disseminate information regarding the purpose of the
ethanol assessment and ways in which the assessment benefits producers.

### § 17-06-07. Assessment.

An assessment at the rate of three one-hundredths of one cent per gallon is imposed upon
all ethanol produced and sold in this state.
### § 17-06-08. Calculation of assessment - Records.

1. Each producer shall calculate the assessment imposed by section 17-06-07 at the
time of sale.
2. Each producer shall keep documents regarding its ethanol production and sales for a
period of three years. The producer shall make these records available to the council
for examination upon request.
3. No later than thirty days after the conclusion of each calendar quarter, each producer
shall file with the council a report stating the quantity of ethanol produced and the
quantity sold during the preceding quarter.
### § 17-06-09. Submission of assessments - Civil penalty.

1. Each producer shall forward to the council all assessments imposed by section
2. If a producer fails to submit the assessments as required by this section, the council
may impose a penalty equal to ten percent of the amount due, plus interest at the rate
of twelve percent per annum from the due date.
### § 17-06-10. Refund of assessment.

1. To receive a refund of any assessment paid in accordance with this chapter, a
producer shall submit to the council a written request for a refund application within
sixty days after the conclusion of each calendar quarter.
2. The producer shall complete the refund application and return the application to the
council, together with a record of the assessment collected, within ninety days after the
conclusion of each calendar quarter. The council shall then refund the net amount of
the assessment that had been collected.
3. If a request for a refund is not submitted to the council within the prescribed time
period, the producer is presumed to have agreed to the assessment.
### § 17-06-11. Expenditure of funds.

The council shall approve all expenditures made pursuant to this chapter. The expenditures
must be recorded as directed by the office of management and budget.
### § 17-06-12. Continuing appropriation.

The council shall forward all moneys received under this chapter to the state treasurer for
deposit in the ethanol fund. All moneys in the ethanol fund are appropriated on a continuing
basis to the council to carry out this chapter.
### § 17-06-13. Penalty.

Any person willfully violating this chapter is guilty of a class B misdemeanor.
