By: Ellis S.B. No. 1192
A BILL TO BE ENTITLED
AN ACT
relating to biodiesel and cellulosic ethanol content requirements
for certain fuels.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Agriculture Code, is amended by adding
Chapter 16A to read as follows:
CHAPTER 16A. BIODIESEL AND CELLULOSIC ETHANOL CONTENT REQUIREMENTS
FOR FUELS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 16A.001. DEFINITIONS. In this subchapter:
(1) "ASTM" means the American Society for Testing and
Materials.
(2) "Biodiesel" means a monoalkyl ester that:
(A) is derived from vegetable oils, rendered
animal fats, algae, or renewable lipids or a combination of those
ingredients; and
(B) meets the established ASTM specification for
biodiesel.
(3) "Cellulosic ethanol" means ethanol:
(A) derived from any lingocellulosic or
hemicellulosic matter that is available on a renewable or recurring
basis including:
(i) dedicated energy crops and trees;
(ii) wood and wood residues;
(iii) plants;
(iv) grasses;
(v) agricultural residues;
(vi) fibers;
(vii) animal wastes and other waste
materials; and
(viii) municipal solid waste; or
(B) produced in facilities where animal wastes or
other waste materials are digested or otherwise used to displace
not less than 90 percent of the fossil fuel normally used in the
production of ethanol.
(4) "Renewable diesel" means a nonester diesel fuel or
fuel blending component derived from nonpetroleum resources that:
(A) is used to replace or reduce the quantity of
fossil fuels present in fuels sold to consumers;
(B) is registered under 40 C.F.R. Part 79 for
motor vehicle fuels or fuel additives;
(C) meets an established ASTM specification;
(D) is compatible for use in engines and
equipment designed to run on conventional petroleum diesel fuels;
and
(E) is derived from renewable content at the
percentages required by this chapter.
[Sections 16A.002-16A.050 reserved for expansion]
SUBCHAPTER B. FUEL CONTENT REQUIREMENTS
Sec. 16A.051. BIODIESEL CONTENT IN DIESEL FUEL SOLD FOR
ON-ROAD USE. (a) Subject to Subsections (b) and (c) and Section
16A.053, diesel fuel sold or offered for sale to ultimate consumers
in this state for use in on-road compression ignition engines must
contain not less than:
(1) two percent biodiesel by volume, beginning on the
first anniversary of the date, as determined by the department,
that in-state production of biodiesel, on an annualized basis,
reaches 80 million gallons and is sustained for three consecutive
months;
(2) five percent biodiesel by volume, beginning on the
first anniversary of the date, as determined by the department,
that in-state production of biodiesel, on an annualized basis,
reaches 200 million gallons and is sustained for three consecutive
months;
(3) 10 percent biodiesel by volume, beginning on the
first anniversary of the date, as determined by the department,
that in-state production of biodiesel, on an annualized basis,
reaches 400 million gallons and is sustained for three consecutive
months; and
(4) 20 percent biodiesel by volume, beginning on the
first anniversary of the date, as determined by the department,
that in-state production of biodiesel, on an annualized basis,
reaches 800 million gallons and is sustained for three consecutive
months.
(b) The biodiesel volume requirements provided by
Subsection (a) take effect only if the department, in cooperation
with the Texas Department of Transportation and the Texas
Commission on Environmental Quality, makes a determination that
manufacturers of diesel-fueled motor vehicles sold in this state
have publicly stated that they will not void or withdraw vehicle
engine warranties due to the use of the biodiesel blends as
specified by Subsection (a). The determination must be published
in the Texas Register and transmitted to the governor, the
lieutenant governor, the speaker of the house of representatives,
and each member of the standing committees of the house of
representatives and the senate with primary jurisdiction over
environmental matters.
(c) Renewable diesel produced in this state may be used in
place of biodiesel to meet not more than 25 percent of the biodiesel
volume requirements provided by Subsection (a).
(d) This section does not apply to aviation fuel, home
heating fuel, or to the extent this section conflicts with other
law.
Sec. 16A.052. CELLULOSIC ETHANOL CONTENT IN GASOLINE.
(a) Subject to Subsections (b) and (c) and Section 16A.053,
gasoline sold or offered for sale to ultimate consumers in this
state must contain not less than:
(1) two percent cellulosic ethanol by volume,
beginning on the first anniversary of the date, as determined by the
department, that in-state production of cellulosic ethanol, on an
annualized basis, reaches 240 million gallons and is sustained for
three consecutive months;
(2) five percent cellulosic ethanol by volume,
beginning on the first anniversary of the date, as determined by the
department, that in-state production of cellulosic ethanol, on an
annualized basis, reaches 600 million gallons and is sustained for
three consecutive months; and
(3) 10 percent cellulosic ethanol by volume, beginning
on the first anniversary of the date, as determined by the
department, that in-state production of cellulosic ethanol, on an
annualized basis, reaches 1.2 billion gallons and is sustained for
three consecutive months;
(b) A renewable fuel other than cellulosic ethanol may be
used to meet the cellulosic ethanol volume requirements provided by
Subsection (a) if the renewable fuel:
(1) meets the requirements of 40 C.F.R. Part 79;
(2) has an emissions profile comparable to cellulosic
ethanol;
(3) is suitable for use in motor vehicle engines;
(4) is derived from renewable resources or feedstock;
(5) is not derived from corn-based ethanol unless it
is from cellulosic materials; and
(6) is approved by the department.
(c) This section does not apply to gasoline sold in regions
of this state where the use of cellulosic ethanol would violate,
conflict with, or otherwise interfere with compliance with a
national ambient air quality standards attainment program.
Sec. 16A.053. MODIFICATION OF VOLUME REQUIREMENTS.
(a) The department, in consultation with the Texas Department of
Transportation and the Texas Commission on Environmental Quality,
may delay or reduce the volume requirements provided by Section
16A.051(a) or 16A.052(a) if the department determines that to do so
is warranted by factors including:
(1) substantially increased costs to consumers; or
(2) insufficient quantity or distribution of
biodiesel or cellulosic ethanol.
(b) If under Section 16A.054(a) the department determines
that there is insufficient infrastructure in place to meet a volume
requirement of Section 16A.051(a) or 16A.052(a), the department
shall delay the implementation of the requirement until the
department determines that there is sufficient infrastructure in
place.
Sec. 16A.054. STUDIES AND REPORTS. (a) Not less than six
months before the implementation of a volume requirement provided
by Section 16A.051(a) or 16A.052(a), including a volume requirement
reduced under Section 16A.053(a), the department, in conjunction
with the Texas Department of Transportation, shall determine
whether there is sufficient transportation, distribution, and
other infrastructure necessary to implement the requirements.
(b) Not later than September 1 of each year, the department
shall compile:
(1) the name and location of each facility producing
biodiesel or cellulosic ethanol;
(2) the amount of biodiesel or cellulosic ethanol
produced by each facility in the preceding year; and
(3) the amount and type of any financial assistance
made available to a biodiesel or cellulosic ethanol production
facility by the state in the preceding year.
(c) Not later than December 31, 2010, the Texas Commission
on Environmental Quality shall complete a study of the effects on
this state's ability to achieve and maintain national ambient air
quality standards of the biodiesel and cellulosic ethanol volume
requirements of this chapter. The Texas Commission on
Environmental Quality may contract with a qualified independent
third party to conduct the study.
(d) Not later than September 1 of each year, the Texas
Forest Service shall submit to the department a report documenting
the effect, if any, on forest health, condition, and productivity
of in-state production of cellulosic ethanol from woody biomass.
Sec. 16A.055. RULES. The department, in consultation with
the Texas Department of Transportation and the Texas Commission on
Environmental Quality, shall adopt rules to implement and enforce
this chapter.
SECTION 2. This Act takes effect September 1, 2009.