Texas 2009 - 81st Regular

Texas Senate Bill SB645 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3427 KJM-F
2	2	By: Hegar S.B. No. 645
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the production and taxation of renewable diesel fuel.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 162.001, Tax Code, is amended by
10	10	amending Subdivisions (7) and (19) and adding Subdivision (53-a) to
11	11	read as follows:
12	12	(7) "Biodiesel fuel" has the meaning assigned to
13	13	"biodiesel" by Section 16.001, Agriculture Code [means any motor
14	14	fuel or mixture of motor fuels that is:
15	15	[(A) derived wholly or partly from agricultural
16	16	products, vegetable oils, recycled greases, or animal fats, or the
17	17	wastes of those products or fats; and
18	18	[(B) advertised, offered for sale, suitable for
19	19	use, or used as a motor fuel in an internal combustion engine].
20	20	(19) "Diesel fuel" means kerosene or another liquid,
21	21	or a combination of liquids blended together, that is suitable for
22	22	or used for the propulsion of diesel-powered motor vehicles. The
23	23	term includes products commonly referred to as kerosene, light
24	24	cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel
25	25	fuel, aviation jet fuel, renewable diesel, biodiesel, distillate
26	26	fuel, cutter stock, or heating oil, but does not include gasoline,
27	27	aviation gasoline, or liquefied gas.
28	28	(53-a) "Renewable diesel" has the meaning assigned by
29	29	Section 16.001, Agriculture Code.
30	30	SECTION 2. Section 162.204(a), Tax Code, is amended to read
31	31	as follows:
32	32	(a) The tax imposed by this subchapter does not apply to:
33	33	(1) diesel fuel sold to the United States for its
34	34	exclusive use, provided that the exemption does not apply to diesel
35	35	fuel sold or delivered to a person operating under a contract with
36	36	the United States;
37	37	(2) diesel fuel sold to a public school district in
38	38	this state for the district's exclusive use;
39	39	(3) diesel fuel sold to a commercial transportation
40	40	company or a metropolitan rapid transit authority operating under
41	41	Chapter 451, Transportation Code, that provides public school
42	42	transportation services to a school district under Section 34.008,
43	43	Education Code, and that uses the diesel fuel only to provide those
44	44	services;
45	45	(4) diesel fuel exported by either a licensed supplier
46	46	or a licensed exporter from this state to any other state, provided
47	47	that:
48	48	(A) for diesel fuel in a situation described by
49	49	Subsection (d), the bill of lading indicates the destination state
50	50	and the supplier collects the destination state tax; or
51	51	(B) for diesel fuel in a situation described by
52	52	Subsection (e), the bill of lading indicates the destination state,
53	53	the diesel fuel is subsequently exported, and the exporter is
54	54	licensed in the destination state to pay that state's tax and has an
55	55	exporter's license issued under this subchapter;
56	56	(5) diesel fuel moved by truck or railcar between
57	57	licensed suppliers or licensed permissive suppliers and in which
58	58	the diesel fuel removed from the first terminal comes to rest in the
59	59	second terminal, provided that the removal from the second terminal
60	60	rack is subject to the tax imposed by this subchapter;
61	61	(6) diesel fuel delivered or sold into a storage
62	62	facility of a licensed aviation fuel dealer from which the diesel
63	63	fuel will be delivered solely into the fuel supply tanks of aircraft
64	64	or aircraft servicing equipment, or sold from one licensed aviation
65	65	fuel dealer to another licensed aviation fuel dealer who will
66	66	deliver the diesel fuel exclusively into the fuel supply tanks of
67	67	aircraft or aircraft servicing equipment;
68	68	(7) diesel fuel exported to a foreign country if the
69	69	bill of lading indicates the foreign destination and the fuel is
70	70	actually exported to the foreign country;
71	71	(8) dyed diesel fuel sold or delivered by a supplier to
72	72	another supplier and dyed diesel fuel sold or delivered by a
73	73	supplier or distributor into the bulk storage facility of a dyed
74	74	diesel fuel bonded user or to a purchaser who provides a signed
75	75	statement as provided by Section 162.206;
76	76	(9) the volume of water, fuel ethanol, renewable
77	77	diesel, biodiesel, or mixtures thereof that are blended together
78	78	with taxable diesel fuel when the finished product sold or used is
79	79	clearly identified on the retail pump, storage tank, and sales
80	80	invoice as a combination of diesel fuel and water, fuel ethanol,
81	81	renewable diesel, biodiesel, or mixtures thereof;
82	82	(10) dyed diesel fuel sold by a supplier or permissive
83	83	supplier to a distributor, or by a distributor to another
84	84	distributor;
85	85	(11) dyed diesel fuel delivered by a license holder
86	86	into the fuel supply tanks of railway engines, motorboats, or
87	87	refrigeration units or other stationary equipment powered by a
88	88	separate motor from a separate fuel supply tank;
89	89	(12) dyed kerosene when delivered by a supplier,
90	90	distributor, or importer into a storage facility at a retail
91	91	business from which all deliveries are exclusively for heating,
92	92	cooking, lighting, or similar nonhighway use; or
93	93	(13) diesel fuel used by a person, other than a
94	94	political subdivision, who owns, controls, operates, or manages a
95	95	commercial motor vehicle as defined by Section 548.001,
96	96	Transportation Code, if the fuel:
97	97	(A) is delivered exclusively into the fuel supply
98	98	tank of the commercial motor vehicle; and
99	99	(B) is used exclusively to transport passengers
100	100	for compensation or hire between points in this state on a fixed
101	101	route or schedule.
102	102	SECTION 3. The heading to Chapter 16, Agriculture Code, is
103	103	amended to read as follows:
104	104	CHAPTER 16. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE DIESEL
105	105	PRODUCTION INCENTIVE PROGRAM
106	106	SECTION 4. Section 16.001, Agriculture Code, is amended by
107	107	amending Subdivisions (1), (3), and (6) and adding Subdivision (7)
108	108	to read as follows:
109	109	(1) "Account" means the fuel ethanol, [and] biodiesel,
110	110	and renewable diesel production account.
111	111	(3) "Biodiesel" means a motor fuel that:
112	112	(A) meets the registration requirements for
113	113	fuels and fuel additives established by the United States
114	114	Environmental Protection Agency under Section 211 of the federal
115	115	Clean Air Act (42 U.S.C. Section 7545);
116	116	(B) is mono-alkyl esters of long chain fatty
117	117	acids derived from vegetable oils and animal fats;
118	118	(C) meets the requirements of ASTM specification
119	119	D-6751;
120	120	(D) is intended for use in engines that are
121	121	designed to run on conventional, petroleum-derived diesel fuel; and
122	122	(E) is derived from agricultural products,
123	123	vegetable oils, recycled greases, biomass, or animal fats or the
124	124	wastes of those products or fats [a monoalkyl ester that:
125	125	[(A) is derived from vegetable oils, rendered
126	126	animal fats, or renewable lipids or a combination of those
127	127	ingredients; and
128	128	[(B) meets the requirements of ASTM PS 121, the
129	129	provisional specification for biodiesel].
130	130	(6) "Producer" means a person who operates a fuel
131	131	ethanol, [or] biodiesel, or renewable diesel plant in this state.
132	132	(7) "Renewable diesel" means a motor fuel that:
133	133	(A) meets the registration requirements for
134	134	fuels and fuel additives established by the United States
135	135	Environmental Protection Agency under Section 211 of the federal
136	136	Clean Air Act (42 U.S.C. Section 7545);
137	137	(B) is a hydrocarbon;
138	138	(C) meets the requirements of ASTM specification
139	139	D-975;
140	140	(D) is intended for use in engines that are
141	141	designed to run on conventional, petroleum-derived diesel fuel; and
142	142	(E) is derived from agricultural products,
143	143	vegetable oils, recycled greases, biomass, or animal fats or the
144	144	wastes of those products or fats.
145	145	SECTION 5. Sections 16.002(a) and (b), Agriculture Code,
146	146	are amended to read as follows:
147	147	(a) To be eligible for a grant for fuel ethanol, [or]
148	148	biodiesel, or renewable diesel produced in a plant, a producer must
149	149	apply to the office for the registration of the plant. A producer
150	150	may apply for the registration of more than one plant.
151	151	(b) An application for the registration of a plant must show
152	152	to the satisfaction of the office that:
153	153	(1) the plant is capable of producing fuel ethanol,
154	154	[or] biodiesel, or renewable diesel;
155	155	(2) the producer has made a substantial investment of
156	156	resources in this state in connection with the plant; and
157	157	(3) the plant constitutes a permanent fixture in this
158	158	state.
159	159	SECTION 6. Section 16.003(a), Agriculture Code, is amended
160	160	to read as follows:
161	161	(a) On or before the fifth day of each month, a producer
162	162	shall report to the office on:
163	163	(1) the number of gallons of fuel ethanol, [or]
164	164	biodiesel, or renewable diesel produced at each registered plant
165	165	operated by the producer during the preceding month;
166	166	(2) the number of gallons of fuel ethanol, [or]
167	167	biodiesel, or renewable diesel imported into this state by the
168	168	producer during the preceding month;
169	169	(3) the number of gallons of fuel ethanol, [or]
170	170	biodiesel, or renewable diesel sold or blended with motor fuels by
171	171	the producer during the preceding month; and
172	172	(4) the total value of agricultural products consumed
173	173	in each registered plant operated by the producer during the
174	174	preceding month.
175	175	SECTION 7. The heading to Section 16.004, Agriculture Code,
176	176	is amended to read as follows:
177	177	Sec. 16.004. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE
178	178	DIESEL PRODUCTION ACCOUNT.
179	179	SECTION 8. Section 16.004(a), Agriculture Code, is amended
180	180	to read as follows:
181	181	(a) The fuel ethanol, [and] biodiesel, and renewable diesel
182	182	production account is an account in the general revenue fund that
183	183	may be appropriated only to the office for the purposes of this
184	184	chapter, including the making of grants under this chapter.
185	185	SECTION 9. The heading to Section 16.005, Agriculture Code,
186	186	is amended to read as follows:
187	187	Sec. 16.005. FEE ON FUEL ETHANOL, [AND] BIODIESEL, AND
188	188	RENEWABLE DIESEL PRODUCTION.
189	189	SECTION 10. Sections 16.005(a), (b), and (d), Agriculture
190	190	Code, are amended to read as follows:
191	191	(a) The office shall impose a fee on each producer in an
192	192	amount equal to 3.2 cents for each gallon of fuel ethanol, [or]
193	193	biodiesel, or renewable diesel produced in each registered plant
194	194	operated by the producer.
195	195	(b) For each fiscal year, the office may not impose fees on a
196	196	producer for more than 18 million gallons of fuel ethanol, [or]
197	197	biodiesel, or renewable diesel produced at any one registered
198	198	plant.
199	199	(d) The office may not impose fees on a producer for fuel
200	200	ethanol, [or] biodiesel, or renewable diesel produced at a
201	201	registered plant after the 10th anniversary of the date production
202	202	from the plant begins.
203	203	SECTION 11. The heading to Section 16.006, Agriculture
204	204	Code, is amended to read as follows:
205	205	Sec. 16.006. FUEL ETHANOL, [AND] BIODIESEL, AND RENEWABLE
206	206	DIESEL GRANTS.
207	207	SECTION 12. Sections 16.006(a), (b), (c), and (e),
208	208	Agriculture Code, are amended to read as follows:
209	209	(a) The office, after consultation with the department,
210	210	shall make grants to producers as an incentive for the development
211	211	of the fuel ethanol, [and] biodiesel, and renewable diesel industry
212	212	and agricultural production in this state.
213	213	(b) A producer is entitled to receive from the account 20
214	214	cents for each gallon of fuel ethanol, [or] biodiesel, or renewable
215	215	diesel produced in each registered plant operated by the producer
216	216	until the 10th anniversary of the date production from the plant
217	217	begins.
218	218	(c) For each fiscal year a producer may not receive grants
219	219	for more than 18 million gallons of fuel ethanol, [or] biodiesel, or
220	220	renewable diesel produced at any one registered plant.
221	221	(e) If the office determines that the amount of money
222	222	credited to the account is not sufficient to distribute the full
223	223	amount of grant funds to eligible producers as provided by this
224	224	chapter for a fiscal year, the office shall proportionately reduce
225	225	the amount of each grant for each gallon of fuel ethanol, [or]
226	226	biodiesel, or renewable diesel produced as necessary to continue
227	227	the incentive program during the remainder of the fiscal year.
228	228	SECTION 13. The change in law made by Section 2 of this Act
229	229	does not affect tax liability accruing before the effective date of
230	230	this Act. That liability continues in effect as if this Act had not
231	231	been enacted, and the former law is continued in effect for the
232	232	collection of taxes due and for civil and criminal enforcement of
233	233	the liability for those taxes.
234	234	SECTION 14. The change in law made by this Act to Chapter
235	235	16, Agriculture Code, applies only to a fee that is imposed on or
236	236	after the effective date of this Act. A fee that is imposed before
237	237	the effective date of this Act is governed by the law in effect when
238	238	the fee was imposed, and that law is continued in effect for that
239	239	purpose.
240	240	SECTION 15. This Act takes effect immediately if it
241	241	receives a vote of two-thirds of all the members elected to each
242	242	house, as provided by Section 39, Article III, Texas Constitution.
243	243	If this Act does not receive the vote necessary for immediate
244	244	effect, this Act takes effect September 1, 2009.