[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1424.4]

[Page 490-491]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1424_BIOENERGY PROGRAM--Table of Contents
 
Sec. 1424.4  General eligibility rules.

    (a) An applicant must be determined eligible by KCCO and be assigned 
an agreement number.
    (b) To be eligible for program payments, a producer must maintain 
records indicating for all relevant FY's and FY quarters:
    (1) The use of eligible commodities in bioenergy production;
    (2) The quantity of bioenergy produced from an eligible commodity by 
location;
    (3) The quantity of eligible commodity used by location to produce 
the bioenergy referred to in paragraph (b)(2) of this section; and
    (4) All other records, needed, or required by the agreement to 
establish program eligibility and compliance.
    (c) A producer must allow verification by CCC of all information 
provided. Refusal to allow CCC or any other agency of USDA to verify any 
information provided will result in a producer being determined not 
eligible.
    (d) For producers not purchasing raw commodity inputs, the 
production must equal or exceed that amount of production that would be 
calculated using the raw commodity inputs and

[[Page 491]]

the conversion factor set out in Sec. 1424.3. A producer that purchases 
soy oil from a soybean crushing plant for further refinement into 
biodiesel must be able to prove to CCC's satisfaction both soy oil 
purchases and biodiesel production for the applicable quarter. Any 
special conversion factors needed will be the province of CCC and CCC 
alone and CCC's decision will be final.
    (e) A producer must meet all other conditions set out in these 
regulations, in the agreement, or in other program documents.