Texas 2009 - 81st Regular

Texas Senate Bill SB1192 Compare Versions

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1	1	By: Ellis S.B. No. 1192
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to biodiesel and cellulosic ethanol content requirements
7	7	for certain fuels.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Title 2, Agriculture Code, is amended by adding
10	10	Chapter 16A to read as follows:
11	11	CHAPTER 16A. BIODIESEL AND CELLULOSIC ETHANOL CONTENT REQUIREMENTS
12	12	FOR FUELS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 16A.001. DEFINITIONS. In this subchapter:
15	15	(1) "ASTM" means the American Society for Testing and
16	16	Materials.
17	17	(2) "Biodiesel" means a monoalkyl ester that:
18	18	(A) is derived from vegetable oils, rendered
19	19	animal fats, algae, or renewable lipids or a combination of those
20	20	ingredients; and
21	21	(B) meets the established ASTM specification for
22	22	biodiesel.
23	23	(3) "Cellulosic ethanol" means ethanol:
24	24	(A) derived from any lingocellulosic or
25	25	hemicellulosic matter that is available on a renewable or recurring
26	26	basis including:
27	27	(i) dedicated energy crops and trees;
28	28	(ii) wood and wood residues;
29	29	(iii) plants;
30	30	(iv) grasses;
31	31	(v) agricultural residues;
32	32	(vi) fibers;
33	33	(vii) animal wastes and other waste
34	34	materials; and
35	35	(viii) municipal solid waste; or
36	36	(B) produced in facilities where animal wastes or
37	37	other waste materials are digested or otherwise used to displace
38	38	not less than 90 percent of the fossil fuel normally used in the
39	39	production of ethanol.
40	40	(4) "Renewable diesel" means a nonester diesel fuel or
41	41	fuel blending component derived from nonpetroleum resources that:
42	42	(A) is used to replace or reduce the quantity of
43	43	fossil fuels present in fuels sold to consumers;
44	44	(B) is registered under 40 C.F.R. Part 79 for
45	45	motor vehicle fuels or fuel additives;
46	46	(C) meets an established ASTM specification;
47	47	(D) is compatible for use in engines and
48	48	equipment designed to run on conventional petroleum diesel fuels;
49	49	and
50	50	(E) is derived from renewable content at the
51	51	percentages required by this chapter.
52	52	[Sections 16A.002-16A.050 reserved for expansion]
53	53	SUBCHAPTER B. FUEL CONTENT REQUIREMENTS
54	54	Sec. 16A.051. BIODIESEL CONTENT IN DIESEL FUEL SOLD FOR
55	55	ON-ROAD USE. (a) Subject to Subsections (b) and (c) and Section
56	56	16A.053, diesel fuel sold or offered for sale to ultimate consumers
57	57	in this state for use in on-road compression ignition engines must
58	58	contain not less than:
59	59	(1) two percent biodiesel by volume, beginning on the
60	60	first anniversary of the date, as determined by the department,
61	61	that in-state production of biodiesel, on an annualized basis,
62	62	reaches 80 million gallons and is sustained for three consecutive
63	63	months;
64	64	(2) five percent biodiesel by volume, beginning on the
65	65	first anniversary of the date, as determined by the department,
66	66	that in-state production of biodiesel, on an annualized basis,
67	67	reaches 200 million gallons and is sustained for three consecutive
68	68	months;
69	69	(3) 10 percent biodiesel by volume, beginning on the
70	70	first anniversary of the date, as determined by the department,
71	71	that in-state production of biodiesel, on an annualized basis,
72	72	reaches 400 million gallons and is sustained for three consecutive
73	73	months; and
74	74	(4) 20 percent biodiesel by volume, beginning on the
75	75	first anniversary of the date, as determined by the department,
76	76	that in-state production of biodiesel, on an annualized basis,
77	77	reaches 800 million gallons and is sustained for three consecutive
78	78	months.
79	79	(b) The biodiesel volume requirements provided by
80	80	Subsection (a) take effect only if the department, in cooperation
81	81	with the Texas Department of Transportation and the Texas
82	82	Commission on Environmental Quality, makes a determination that
83	83	manufacturers of diesel-fueled motor vehicles sold in this state
84	84	have publicly stated that they will not void or withdraw vehicle
85	85	engine warranties due to the use of the biodiesel blends as
86	86	specified by Subsection (a). The determination must be published
87	87	in the Texas Register and transmitted to the governor, the
88	88	lieutenant governor, the speaker of the house of representatives,
89	89	and each member of the standing committees of the house of
90	90	representatives and the senate with primary jurisdiction over
91	91	environmental matters.
92	92	(c) Renewable diesel produced in this state may be used in
93	93	place of biodiesel to meet not more than 25 percent of the biodiesel
94	94	volume requirements provided by Subsection (a).
95	95	(d) This section does not apply to aviation fuel, home
96	96	heating fuel, or to the extent this section conflicts with other
97	97	law.
98	98	Sec. 16A.052. CELLULOSIC ETHANOL CONTENT IN GASOLINE.
99	99	(a) Subject to Subsections (b) and (c) and Section 16A.053,
100	100	gasoline sold or offered for sale to ultimate consumers in this
101	101	state must contain not less than:
102	102	(1) two percent cellulosic ethanol by volume,
103	103	beginning on the first anniversary of the date, as determined by the
104	104	department, that in-state production of cellulosic ethanol, on an
105	105	annualized basis, reaches 240 million gallons and is sustained for
106	106	three consecutive months;
107	107	(2) five percent cellulosic ethanol by volume,
108	108	beginning on the first anniversary of the date, as determined by the
109	109	department, that in-state production of cellulosic ethanol, on an
110	110	annualized basis, reaches 600 million gallons and is sustained for
111	111	three consecutive months; and
112	112	(3) 10 percent cellulosic ethanol by volume, beginning
113	113	on the first anniversary of the date, as determined by the
114	114	department, that in-state production of cellulosic ethanol, on an
115	115	annualized basis, reaches 1.2 billion gallons and is sustained for
116	116	three consecutive months;
117	117	(b) A renewable fuel other than cellulosic ethanol may be
118	118	used to meet the cellulosic ethanol volume requirements provided by
119	119	Subsection (a) if the renewable fuel:
120	120	(1) meets the requirements of 40 C.F.R. Part 79;
121	121	(2) has an emissions profile comparable to cellulosic
122	122	ethanol;
123	123	(3) is suitable for use in motor vehicle engines;
124	124	(4) is derived from renewable resources or feedstock;
125	125	(5) is not derived from corn-based ethanol unless it
126	126	is from cellulosic materials; and
127	127	(6) is approved by the department.
128	128	(c) This section does not apply to gasoline sold in regions
129	129	of this state where the use of cellulosic ethanol would violate,
130	130	conflict with, or otherwise interfere with compliance with a
131	131	national ambient air quality standards attainment program.
132	132	Sec. 16A.053. MODIFICATION OF VOLUME REQUIREMENTS.
133	133	(a) The department, in consultation with the Texas Department of
134	134	Transportation and the Texas Commission on Environmental Quality,
135	135	may delay or reduce the volume requirements provided by Section
136	136	16A.051(a) or 16A.052(a) if the department determines that to do so
137	137	is warranted by factors including:
138	138	(1) substantially increased costs to consumers; or
139	139	(2) insufficient quantity or distribution of
140	140	biodiesel or cellulosic ethanol.
141	141	(b) If under Section 16A.054(a) the department determines
142	142	that there is insufficient infrastructure in place to meet a volume
143	143	requirement of Section 16A.051(a) or 16A.052(a), the department
144	144	shall delay the implementation of the requirement until the
145	145	department determines that there is sufficient infrastructure in
146	146	place.
147	147	Sec. 16A.054. STUDIES AND REPORTS. (a) Not less than six
148	148	months before the implementation of a volume requirement provided
149	149	by Section 16A.051(a) or 16A.052(a), including a volume requirement
150	150	reduced under Section 16A.053(a), the department, in conjunction
151	151	with the Texas Department of Transportation, shall determine
152	152	whether there is sufficient transportation, distribution, and
153	153	other infrastructure necessary to implement the requirements.
154	154	(b) Not later than September 1 of each year, the department
155	155	shall compile:
156	156	(1) the name and location of each facility producing
157	157	biodiesel or cellulosic ethanol;
158	158	(2) the amount of biodiesel or cellulosic ethanol
159	159	produced by each facility in the preceding year; and
160	160	(3) the amount and type of any financial assistance
161	161	made available to a biodiesel or cellulosic ethanol production
162	162	facility by the state in the preceding year.
163	163	(c) Not later than December 31, 2010, the Texas Commission
164	164	on Environmental Quality shall complete a study of the effects on
165	165	this state's ability to achieve and maintain national ambient air
166	166	quality standards of the biodiesel and cellulosic ethanol volume
167	167	requirements of this chapter. The Texas Commission on
168	168	Environmental Quality may contract with a qualified independent
169	169	third party to conduct the study.
170	170	(d) Not later than September 1 of each year, the Texas
171	171	Forest Service shall submit to the department a report documenting
172	172	the effect, if any, on forest health, condition, and productivity
173	173	of in-state production of cellulosic ethanol from woody biomass.
174	174	Sec. 16A.055. RULES. The department, in consultation with
175	175	the Texas Department of Transportation and the Texas Commission on
176	176	Environmental Quality, shall adopt rules to implement and enforce
177	177	this chapter.
178	178	SECTION 2. This Act takes effect September 1, 2009.