Kansas would fund ethanol sales grants through 2030

The director of accounts and reports would transfer up to $5 million each year from the state general fund to an ethanol grant program fund. The fund would support grants and up to $50,000 per year in fund administration costs. Transfers would be made only when money is available and would follow appropriation acts. The yearly transfer would be reduced by any money remaining in the grant fund. Transfers would begin July 1, 2026, and continue each July 1 until the fund expires September 1, 2030.

The agriculture secretary would award reimbursement grants to approved retailers whose higher-ethanol-blend sales increase over the prior fiscal year. The program would cover Kansas retail service stations selling fuel containing at least 15% and no more than 85% ethanol directly into vehicle fuel tanks. Retailers would apply in July and report their prior-year sales in a signed and sworn application. The secretary would set one rate for all approved applicants, up to 5 cents per qualifying gallon, with a $500,000 yearly limit per retailer. If approved grants exceed available fund money, the secretary would lower the rate so payments stay within the transferred amount. After notice and a hearing, retailers that fraudulently or deceptively obtained grants would have to repay the full amount received. The secretary would compare sales each August beginning in 2026 and pay approved grants in one payment each August 31, beginning August 31, 2026; the program would expire September 1, 2030.