Texas House Bill HB2151

Texas 2009 - 81st Regular

Caption

Relating to the creation of a fuel ethanol and biodiesel producer loan guarantee program.

Impact

The implementation of this loan guarantee program could significantly impact state laws concerning agricultural finance and energy production. By providing guarantees for loans of up to $250,000 or 90% of the loan amount, the program is designed to lessen the risk for lenders, potentially increasing access to capital for those in the ethanol and biodiesel sectors. The creation of a designated loan guarantee account within the Texas agricultural fund will help streamline the funding process and may also attract private investments and donations for additional funding initiatives.

Summary

House Bill 2151 aims to establish a loan guarantee program in Texas specifically for producers of fuel ethanol and biodiesel. This legislation is framed to promote the development and production of alternative fuels, thereby enhancing the state's agricultural economy and supporting renewable energy initiatives. By guaranteeing loans, the bill seeks to reduce financial barriers for eligible applicants engaged in the production of these renewable energies, encouraging investment in sustainable practices within the agricultural sector.

Conclusion

Ultimately, HB2151 represents a legislative effort to foster renewable energy production in Texas through financial support mechanisms. As the state continues to focus on diversifying its energy portfolio, this bill could serve as a model for future investments in green technology and agricultural advancements within the renewable energy sector.

Contention

Discussions surrounding the bill may likely focus on the effectiveness of such programs in achieving their goals. Some critics might argue that state-funded loan guarantees could lead to misallocation of funds or may not produce the anticipated economic growth. Furthermore, there could be concerns regarding the environmental impact of increased biofuel production and whether such initiatives align with broader environmental goals. The balance between incentivizing economic growth through renewable energy and ensuring sustainable practices will also be a key point of contention.