| 1 | 1 | | 81R10756 TRH-F |
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| 2 | 2 | | By: Swinford H.B. No. 2366 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the creation of the Texas bioenergy fund. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 12, Agriculture Code, is amended by |
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| 10 | 10 | | adding Section 12.044 to read as follows: |
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| 11 | 11 | | Sec. 12.044. TEXAS BIOENERGY FUND. (a) In this section, |
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| 12 | 12 | | "bioenergy" means a renewable energy derived from biological |
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| 13 | 13 | | sources. |
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| 14 | 14 | | (b) The Texas bioenergy fund is a dedicated account in the |
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| 15 | 15 | | general revenue fund. The fund consists of: |
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| 16 | 16 | | (1) money appropriated to the fund; |
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| 17 | 17 | | (2) money from gifts, grants, or donations to the fund |
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| 18 | 18 | | for a designated or general use; and |
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| 19 | 19 | | (3) interest earned on the investment of money in the |
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| 20 | 20 | | fund. |
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| 21 | 21 | | (c) Money in the fund may be used by the department only to: |
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| 22 | 22 | | (1) make grants or loans to public or private entities |
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| 23 | 23 | | for projects relating to the development, research, or generation |
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| 24 | 24 | | of bioenergy, but only if a project: |
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| 25 | 25 | | (A) has strong support among persons located near |
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| 26 | 26 | | the entities performing the projects; |
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| 27 | 27 | | (B) provides a significant return on the state's |
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| 28 | 28 | | investment; and |
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| 29 | 29 | | (C) stimulates a diversified bioenergy sector in |
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| 30 | 30 | | this state; and |
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| 31 | 31 | | (2) administer the grant and loan program authorized |
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| 32 | 32 | | by this section. |
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| 33 | 33 | | (d) In making a grant or loan for a project, the department |
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| 34 | 34 | | shall consider: |
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| 35 | 35 | | (1) the project's effect on job creation and wages; |
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| 36 | 36 | | (2) the applicant's financial position; |
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| 37 | 37 | | (3) the applicant's business history; |
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| 38 | 38 | | (4) the project's plan for the development or |
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| 39 | 39 | | acquisition of feedstock grown or produced in this state; |
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| 40 | 40 | | (5) the project's use of fallow or out-of-production |
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| 41 | 41 | | land for feedstock development; |
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| 42 | 42 | | (6) the project's use of non-food; |
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| 43 | 43 | | (7) the project's benefit to agriculture producers; |
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| 44 | 44 | | (8) an analysis of the business sector relevant to the |
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| 45 | 45 | | project; and |
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| 46 | 46 | | (9) the existence of public or private sector |
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| 47 | 47 | | financial support for the project. |
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| 48 | 48 | | (e) Sections 403.095 and 404.071, Government Code, do not |
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| 49 | 49 | | apply to the fund. |
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| 50 | 50 | | (f) The department may accept gifts, donations, or grants |
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| 51 | 51 | | from any source for the benefit of the fund. |
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| 52 | 52 | | (g) The department shall adopt rules to administer this |
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| 53 | 53 | | section. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2009. |
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