H.B. No. 2318
AN ACT
relating to the fuel ethanol and biodiesel incentive program of the
Department of Agriculture.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 16, Agriculture Code, is
amended to read as follows:
CHAPTER 16. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL
PRODUCTION INCENTIVE PROGRAM
SECTION 2. Section 16.001, Agriculture Code, is amended by
amending Subdivisions (1) and (6) and adding Subdivision (4-a) to
read as follows:
(1) "Account" means the fuel ethanol, renewable
methane, and biodiesel production account.
(4-a) "Renewable methane" means methane gas derived
from animal waste or an agricultural byproduct, including creamery
or fruit waste or corn silage.
(6) "Producer" means a person who operates a fuel
ethanol, renewable methane, or biodiesel plant in this state.
SECTION 3. Sections 16.002(a) and (b), Agriculture Code,
are amended to read as follows:
(a) To be eligible for a grant for fuel ethanol, renewable
methane, or biodiesel produced in a plant, a producer must apply to
the office for the registration of the plant. A producer may apply
for the registration of more than one plant.
(b) An application for the registration of a plant must show
to the satisfaction of the office that:
(1) the plant is capable of producing fuel ethanol,
renewable methane, or biodiesel;
(2) the producer has made a substantial investment of
resources in this state in connection with the plant; and
(3) the plant constitutes a permanent fixture in this
state.
SECTION 4. Section 16.003(a), Agriculture Code, is amended
to read as follows:
(a) On or before the fifth day of each month, a producer
shall report to the office on:
(1) the number of gallons of fuel ethanol or biodiesel
or MMBtu of renewable methane produced at each registered plant
operated by the producer during the preceding month;
(2) the number of gallons of fuel ethanol or biodiesel
imported into this state by the producer during the preceding
month;
(3) the number of gallons of fuel ethanol or biodiesel
sold or blended with motor fuels by the producer during the
preceding month; and
(4) the total value of agricultural products consumed
in each registered plant operated by the producer during the
preceding month.
SECTION 5. The heading to Section 16.004, Agriculture Code,
is amended to read as follows:
Sec. 16.004. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL
PRODUCTION ACCOUNT.
SECTION 6. Section 16.004(a), Agriculture Code, is amended
to read as follows:
(a) The fuel ethanol, renewable methane, and biodiesel
production account is an account in the general revenue fund that
may be appropriated only to the office for the purposes of this
chapter, including the making of grants under this chapter.
SECTION 7. The heading to Section 16.005, Agriculture Code,
is amended to read as follows:
Sec. 16.005. FEE ON FUEL ETHANOL, RENEWABLE METHANE, AND
BIODIESEL PRODUCTION.
SECTION 8. Sections 16.005(a), (b), and (d), Agriculture
Code, are amended to read as follows:
(a) The office shall impose a fee on each producer in an
amount equal to 3.2 cents for each gallon of fuel ethanol or MMBtu
of renewable methane and 1.6 cents for each gallon of biodiesel
produced in each registered plant operated by the producer.
(b) For each fiscal year, the office may not impose fees on a
producer for more than 18 million gallons of fuel ethanol or
biodiesel or MMBtu of renewable methane produced at any one
registered plant.
(d) The office may not impose fees on a producer for fuel
ethanol, renewable methane, or biodiesel produced at a registered
plant after the 10th anniversary of the date production from the
plant begins.
SECTION 9. The heading to Section 16.006, Agriculture Code,
is amended to read as follows:
Sec. 16.006. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL
GRANTS.
SECTION 10. Sections 16.006(a), (b), (c), and (e),
Agriculture Code, are amended to read as follows:
(a) The office, after consultation with the department,
shall make grants to producers as an incentive for the development
of the fuel ethanol, renewable methane, and biodiesel industry and
agricultural production in this state.
(b) A producer is entitled to receive from the account 20
cents for each gallon of fuel ethanol or MMBtu of renewable methane
and 10 cents for each gallon of biodiesel produced in each
registered plant operated by the producer until the 10th
anniversary of the date production from the plant begins.
(c) For each fiscal year a producer may not receive grants
for more than 18 million gallons of fuel ethanol or biodiesel or
MMBtu of renewable methane produced at any one registered plant.
(e) If the office determines that the amount of money
credited to the account is not sufficient to distribute the full
amount of grant funds to eligible producers as provided by this
chapter for a fiscal year, the office shall proportionately reduce
the amount of each grant for each gallon of fuel ethanol or
biodiesel or each MMBtu of renewable methane produced as necessary
to continue the incentive program during the remainder of the
fiscal year.
SECTION 11. The changes in a fee charged or a payment made
for the production of biodiesel under Sections 16.005 and 16.006,
Agriculture Code, as amended by this Act, apply only to biodiesel
produced on or after the effective date of this Act.
SECTION 12. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2318 was passed by the House on April
24, 2009, by the following vote: Yeas 132, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2318 was passed by the Senate on May
20, 2009, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor