1. The agriculture commissioner, in consultation with the director of the department of transportation, shall develop policies to administer the agriculture infrastructure grant program to include a grant application process and eligibility criteria. 2. The agriculture commissioner, in consultation with the director of the department of transportation, shall award grants to a county, township, or city with a population of one thousand five hundred residents or less, for road and bridge improvements necessary to accommodate value -added agriculture businesses. Grant funding under this subsection may be used for: a. Corridor improvements on city, county, and township roadways; and b. Improvements to roads or bridges that provide access to value -added agriculture businesses. 3. The agriculture commissioner shall award grants to entities for water and sewer line improvements and electrical and gas supply improvements necessary to accommodate value-added agriculture businesses. 4. Grants awarded under this section may not exceed: a. The lesser of one million two hundred fifty thousand dollars per project or eighty percent of the infrastructure project cost for grants awarded under subsection 2. b. The lesser of three hundred fifty thousand dollars per project or eighty percent of the capital improvement project costs for grants awarded under subsection 3. 5. For purposes of grant eligibility under this section, value -added agriculture businesses include the same businesses as provided under section 4.1-01.1-07. 6. Grant funding under this section may not be used for routine maintenance or operating costs.
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