The bill establishes the Ethanol Grant Program Fund, which will be administered by the Secretary of Agriculture. It mandates the transfer of up to $5,000,000 from the state general fund to this new fund on July 1, 2026, and each July 1 thereafter. The program allows approved retailers to receive reimbursement grants of up to $0.05 per gallon for higher ethanol blends sold, with a cap of $500,000 per retailer per fiscal year. If the total approved grants exceed the amount available, the Secretary is required to prorate the grants accordingly. The program is set to expire on September 1, 2030, at which point all remaining funds will be transferred back to the state general fund.

Additionally, the bill defines key terms related to the program, such as "higher ethanol blend," "motor vehicle," and "retailer." It outlines the application process for retailers seeking reimbursement, including the requirement for a report on the total gallons sold and verification of the application. The Secretary will also conduct a comparison of sales from the previous two fiscal years to determine grant eligibility. If any retailer is found to have fraudulently obtained grants, they will be required to repay the funds received, in addition to facing potential civil or criminal penalties.