Texas 2009 - 81st Regular

Texas House Bill HB2582 Compare Versions

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1	1	H.B. No. 2582
2	2
3	3
4	4	AN ACT
5	5	relating to the production and taxation of renewable diesel fuel.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 162.001, Tax Code, is amended by
8	8	amending Subdivisions (7) and (19) and adding Subdivision (53-a) to
9	9	read as follows:
10	10	(7) "Biodiesel fuel" has the meaning assigned to
11	11	"biodiesel" by Section 16.001, Agriculture Code [means any motor
12	12	fuel or mixture of motor fuels that is:
13	13	[(A) derived wholly or partly from agricultural
14	14	products, vegetable oils, recycled greases, or animal fats, or the
15	15	wastes of those products or fats; and
16	16	[(B) advertised, offered for sale, suitable for
17	17	use, or used as a motor fuel in an internal combustion engine].
18	18	(19) "Diesel fuel" means kerosene or another liquid,
19	19	or a combination of liquids blended together, that is suitable for
20	20	or used for the propulsion of diesel-powered motor vehicles. The
21	21	term includes products commonly referred to as kerosene, light
22	22	cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel
23	23	fuel, aviation jet fuel, renewable diesel, biodiesel, distillate
24	24	fuel, cutter stock, or heating oil, but does not include gasoline,
25	25	aviation gasoline, or liquefied gas.
26	26	(53-a) "Renewable diesel" has the meaning assigned by
27	27	Section 16.001, Agriculture Code.
28	28	SECTION 2. Section 162.204(a), Tax Code, is amended to read
29	29	as follows:
30	30	(a) The tax imposed by this subchapter does not apply to:
31	31	(1) diesel fuel sold to the United States for its
32	32	exclusive use, provided that the exemption does not apply to diesel
33	33	fuel sold or delivered to a person operating under a contract with
34	34	the United States;
35	35	(2) diesel fuel sold to a public school district in
36	36	this state for the district's exclusive use;
37	37	(3) diesel fuel sold to a commercial transportation
38	38	company or a metropolitan rapid transit authority operating under
39	39	Chapter 451, Transportation Code, that provides public school
40	40	transportation services to a school district under Section 34.008,
41	41	Education Code, and that uses the diesel fuel only to provide those
42	42	services;
43	43	(4) diesel fuel exported by either a licensed supplier
44	44	or a licensed exporter from this state to any other state, provided
45	45	that:
46	46	(A) for diesel fuel in a situation described by
47	47	Subsection (d), the bill of lading indicates the destination state
48	48	and the supplier collects the destination state tax; or
49	49	(B) for diesel fuel in a situation described by
50	50	Subsection (e), the bill of lading indicates the destination state,
51	51	the diesel fuel is subsequently exported, and the exporter is
52	52	licensed in the destination state to pay that state's tax and has an
53	53	exporter's license issued under this subchapter;
54	54	(5) diesel fuel moved by truck or railcar between
55	55	licensed suppliers or licensed permissive suppliers and in which
56	56	the diesel fuel removed from the first terminal comes to rest in the
57	57	second terminal, provided that the removal from the second terminal
58	58	rack is subject to the tax imposed by this subchapter;
59	59	(6) diesel fuel delivered or sold into a storage
60	60	facility of a licensed aviation fuel dealer from which the diesel
61	61	fuel will be delivered solely into the fuel supply tanks of aircraft
62	62	or aircraft servicing equipment, or sold from one licensed aviation
63	63	fuel dealer to another licensed aviation fuel dealer who will
64	64	deliver the diesel fuel exclusively into the fuel supply tanks of
65	65	aircraft or aircraft servicing equipment;
66	66	(7) diesel fuel exported to a foreign country if the
67	67	bill of lading indicates the foreign destination and the fuel is
68	68	actually exported to the foreign country;
69	69	(8) dyed diesel fuel sold or delivered by a supplier to
70	70	another supplier and dyed diesel fuel sold or delivered by a
71	71	supplier or distributor into the bulk storage facility of a dyed
72	72	diesel fuel bonded user or to a purchaser who provides a signed
73	73	statement as provided by Section 162.206;
74	74	(9) the volume of water, fuel ethanol, renewable
75	75	diesel, biodiesel, or mixtures thereof that are blended together
76	76	with taxable diesel fuel when the finished product sold or used is
77	77	clearly identified on the retail pump, storage tank, and sales
78	78	invoice as a combination of diesel fuel and water, fuel ethanol,
79	79	renewable diesel, biodiesel, or mixtures thereof;
80	80	(10) dyed diesel fuel sold by a supplier or permissive
81	81	supplier to a distributor, or by a distributor to another
82	82	distributor;
83	83	(11) dyed diesel fuel delivered by a license holder
84	84	into the fuel supply tanks of railway engines, motorboats, or
85	85	refrigeration units or other stationary equipment powered by a
86	86	separate motor from a separate fuel supply tank;
87	87	(12) dyed kerosene when delivered by a supplier,
88	88	distributor, or importer into a storage facility at a retail
89	89	business from which all deliveries are exclusively for heating,
90	90	cooking, lighting, or similar nonhighway use; or
91	91	(13) diesel fuel used by a person, other than a
92	92	political subdivision, who owns, controls, operates, or manages a
93	93	commercial motor vehicle as defined by Section 548.001,
94	94	Transportation Code, if the fuel:
95	95	(A) is delivered exclusively into the fuel supply
96	96	tank of the commercial motor vehicle; and
97	97	(B) is used exclusively to transport passengers
98	98	for compensation or hire between points in this state on a fixed
99	99	route or schedule.
100	100	SECTION 3. The heading to Chapter 16, Agriculture Code, is
101	101	amended to read as follows:
102	102	CHAPTER 16. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE DIESEL
103	103	PRODUCTION INCENTIVE PROGRAM
104	104	SECTION 4. Section 16.001, Agriculture Code, is amended by
105	105	amending Subdivisions (1), (3), and (6) and adding Subdivision (7)
106	106	to read as follows:
107	107	(1) "Account" means the fuel ethanol, [and] biodiesel,
108	108	and renewable diesel production account.
109	109	(3) "Biodiesel" means a motor fuel that:
110	110	(A) meets the registration requirements for
111	111	fuels and fuel additives established by the United States
112	112	Environmental Protection Agency under Section 211 of the federal
113	113	Clean Air Act (42 U.S.C. Section 7545);
114	114	(B) is mono-alkyl esters of long chain fatty
115	115	acids derived from vegetable oils and animal fats;
116	116	(C) meets the requirements of ASTM specification
117	117	D-6751;
118	118	(D) is intended for use in engines that are
119	119	designed to run on conventional, petroleum-derived diesel fuel; and
120	120	(E) is derived from agricultural products,
121	121	vegetable oils, recycled greases, biomass, or animal fats or the
122	122	wastes of those products or fats [a monoalkyl ester that:
123	123	[(A) is derived from vegetable oils, rendered
124	124	animal fats, or renewable lipids or a combination of those
125	125	ingredients; and
126	126	[(B) meets the requirements of ASTM PS 121, the
127	127	provisional specification for biodiesel].
128	128	(6) "Producer" means a person who operates a fuel
129	129	ethanol, [or] biodiesel, or renewable diesel plant in this state.
130	130	(7) "Renewable diesel" means a motor fuel that:
131	131	(A) meets the registration requirements for
132	132	fuels and fuel additives established by the United States
133	133	Environmental Protection Agency under Section 211 of the federal
134	134	Clean Air Act (42 U.S.C. Section 7545);
135	135	(B) is a hydrocarbon;
136	136	(C) meets the requirements of ASTM specification
137	137	D-975;
138	138	(D) is intended for use in engines that are
139	139	designed to run on conventional, petroleum-derived diesel fuel; and
140	140	(E) is derived from agricultural products,
141	141	vegetable oils, recycled greases, biomass, or animal fats or the
142	142	wastes of those products or fats.
143	143	SECTION 5. Sections 16.002(a) and (b), Agriculture Code,
144	144	are amended to read as follows:
145	145	(a) To be eligible for a grant for fuel ethanol, [or]
146	146	biodiesel, or renewable diesel produced in a plant, a producer must
147	147	apply to the office for the registration of the plant. A producer
148	148	may apply for the registration of more than one plant.
149	149	(b) An application for the registration of a plant must show
150	150	to the satisfaction of the office that:
151	151	(1) the plant is capable of producing fuel ethanol,
152	152	[or] biodiesel, or renewable diesel;
153	153	(2) the producer has made a substantial investment of
154	154	resources in this state in connection with the plant; and
155	155	(3) the plant constitutes a permanent fixture in this
156	156	state.
157	157	SECTION 6. Section 16.003(a), Agriculture Code, is amended
158	158	to read as follows:
159	159	(a) On or before the fifth day of each month, a producer
160	160	shall report to the office on:
161	161	(1) the number of gallons of fuel ethanol, [or]
162	162	biodiesel, or renewable diesel produced at each registered plant
163	163	operated by the producer during the preceding month;
164	164	(2) the number of gallons of fuel ethanol, [or]
165	165	biodiesel, or renewable diesel imported into this state by the
166	166	producer during the preceding month;
167	167	(3) the number of gallons of fuel ethanol, [or]
168	168	biodiesel, or renewable diesel sold or blended with motor fuels by
169	169	the producer during the preceding month; and
170	170	(4) the total value of agricultural products consumed
171	171	in each registered plant operated by the producer during the
172	172	preceding month.
173	173	SECTION 7. The heading to Section 16.004, Agriculture Code,
174	174	is amended to read as follows:
175	175	Sec. 16.004. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE
176	176	DIESEL PRODUCTION ACCOUNT.
177	177	SECTION 8. Section 16.004(a), Agriculture Code, is amended
178	178	to read as follows:
179	179	(a) The fuel ethanol, [and] biodiesel, and renewable diesel
180	180	production account is an account in the general revenue fund that
181	181	may be appropriated only to the office for the purposes of this
182	182	chapter, including the making of grants under this chapter.
183	183	SECTION 9. The heading to Section 16.005, Agriculture Code,
184	184	is amended to read as follows:
185	185	Sec. 16.005. FEE ON FUEL ETHANOL, [AND] BIODIESEL, AND
186	186	RENEWABLE DIESEL PRODUCTION.
187	187	SECTION 10. Sections 16.005(a), (b), and (d), Agriculture
188	188	Code, are amended to read as follows:
189	189	(a) The office shall impose a fee on each producer in an
190	190	amount equal to 3.2 cents for each gallon of fuel ethanol, [or]
191	191	biodiesel, or renewable diesel produced in each registered plant
192	192	operated by the producer.
193	193	(b) For each fiscal year, the office may not impose fees on a
194	194	producer for more than 18 million gallons of fuel ethanol, [or]
195	195	biodiesel, or renewable diesel produced at any one registered
196	196	plant.
197	197	(d) The office may not impose fees on a producer for fuel
198	198	ethanol, [or] biodiesel, or renewable diesel produced at a
199	199	registered plant after the 10th anniversary of the date production
200	200	from the plant begins.
201	201	SECTION 11. The heading to Section 16.006, Agriculture
202	202	Code, is amended to read as follows:
203	203	Sec. 16.006. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE
204	204	DIESEL GRANTS.
205	205	SECTION 12. Sections 16.006(a), (b), (c), and (e),
206	206	Agriculture Code, are amended to read as follows:
207	207	(a) The office, after consultation with the department,
208	208	shall make grants to producers as an incentive for the development
209	209	of the fuel ethanol, [and] biodiesel, and renewable diesel industry
210	210	and agricultural production in this state.
211	211	(b) A producer is entitled to receive from the account 20
212	212	cents for each gallon of fuel ethanol, [or] biodiesel, or renewable
213	213	diesel produced in each registered plant operated by the producer
214	214	until the 10th anniversary of the date production from the plant
215	215	begins. The incentive under this subsection is payable only on that
216	216	part of each gallon of fuel produced from renewable resources.
217	217	(c) For each fiscal year a producer may not receive grants
218	218	for more than 18 million gallons of fuel ethanol, [or] biodiesel, or
219	219	renewable diesel produced at any one registered plant.
220	220	(e) If the office determines that the amount of money
221	221	credited to the account is not sufficient to distribute the full
222	222	amount of grant funds to eligible producers as provided by this
223	223	chapter for a fiscal year, the office shall proportionately reduce
224	224	the amount of each grant for each gallon of fuel ethanol, [or]
225	225	biodiesel, or renewable diesel produced as necessary to continue
226	226	the incentive program during the remainder of the fiscal year.
227	227	SECTION 13. The change in law made by Section 2 of this Act
228	228	does not affect tax liability accruing before the effective date of
229	229	this Act. That liability continues in effect as if this Act had not
230	230	been enacted, and the former law is continued in effect for the
231	231	collection of taxes due and for civil and criminal enforcement of
232	232	the liability for those taxes.
233	233	SECTION 14. The change in law made by this Act to Chapter
234	234	16, Agriculture Code, applies only to a fee that is imposed on or
235	235	after the effective date of this Act. A fee that is imposed before
236	236	the effective date of this Act is governed by the law in effect when
237	237	the fee was imposed, and that law is continued in effect for that
238	238	purpose.
239	239	SECTION 15. This Act takes effect immediately if it
240	240	receives a vote of two-thirds of all the members elected to each
241	241	house, as provided by Section 39, Article III, Texas Constitution.
242	242	If this Act does not receive the vote necessary for immediate
243	243	effect, this Act takes effect September 1, 2009.
244	244	______________________________ ______________________________
245	245	President of the Senate Speaker of the House
246	246	I certify that H.B. No. 2582 was passed by the House on May 5,
247	247	2009, by the following vote: Yeas 141, Nays 0, 1 present, not
248	248	voting; that the House refused to concur in Senate amendments to
249	249	H.B. No. 2582 on May 29, 2009, and requested the appointment of a
250	250	conference committee to consider the differences between the two
251	251	houses; and that the House adopted the conference committee report
252	252	on H.B. No. 2582 on May 31, 2009, by the following vote: Yeas 140,
253	253	Nays 0, 1 present, not voting.
254	254	______________________________
255	255	Chief Clerk of the House
256	256	I certify that H.B. No. 2582 was passed by the Senate, with
257	257	amendments, on May 26, 2009, by the following vote: Yeas 31, Nays
258	258	0; at the request of the House, the Senate appointed a conference
259	259	committee to consider the differences between the two houses; and
260	260	that the Senate adopted the conference committee report on H.B. No.
261	261	2582 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
262	262	______________________________
263	263	Secretary of the Senate
264	264	APPROVED: __________________
265	265	Date
266	266	__________________
267	267	Governor