Relating to exempting fuel ethanol derived from cellulosic biomass and blended with gasoline from the motor fuels tax.
Impact
If enacted, HB 797 would amend Texas Tax Code Section 162.104 to clarify that the motor fuels tax will not apply to the volume of fuel ethanol derived from cellulosic biomass that is clearly identified on sales invoices as blended with gasoline. This legislative change is expected to incentivize the production and use of alternative fuel sources, potentially leading to an increase in local production of ethanol from cellulosic materials, thus making Texas a more competitive player in the renewable energy market.
Summary
House Bill 797 aims to exempt fuel ethanol derived from cellulosic biomass that is blended with gasoline from the state motor fuels tax. The bill was introduced to promote the use of renewable energy sources, specifically targeting the ethanol production sector and supporting the transition towards more sustainable fuel options. By providing a tax incentive for cellulosic biomass-derived ethanol, the bill seeks to encourage businesses to adopt greener practices in fuel production and consumption.
Contention
Discussions around HB 797 may emerge regarding its potential economic effects, including concerns for businesses involved in traditional fuel production who could be affected by market shifts. While proponents argue that the bill aligns with environmental goals and promotes energy independence, opponents may express apprehensions about the implications for existing industries and the adequacy of the regulations to ensure that the tax exemption does indeed lead to environmental benefits without undue negative impacts on the economy.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.