By: Hayes H.B. No. 5250
A BILL TO BE ENTITLED
AN ACT
relating to the nonsubstantive revision of certain sections of the
Agriculture Code related to fees and grants for the production of
fuel ethanol, renewable methane, biodiesel, and renewable diesel.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 16.005 and 16.006, Agriculture Code,
are amended to read as follows:
Sec. 16.005. FEE ON FUEL ETHANOL, RENEWABLE METHANE,
BIODIESEL, AND RENEWABLE DIESEL PRODUCTION. (a) The office shall
impose a fee on each producer in an amount equal to 3.2 cents for
each gallon of fuel ethanol or MMBtu of renewable methane and 1.6
cents for each gallon of biodiesel produced in each registered
plant operated by the producer.
(b) [(a)] The office shall impose a fee on each producer in
an amount equal to 3.2 cents for each gallon of fuel ethanol,
biodiesel, or renewable diesel produced in each registered plant
operated by the producer.
(c) [(b)] For each fiscal year, the office may not impose
fees on a producer for more than 18 million gallons of fuel ethanol,
biodiesel, or renewable diesel or MMBtu of renewable methane
produced at any one registered plant.
(d) [(c)] The office shall transfer the fees collected
under this section to the comptroller for deposit to the credit of
the account.
(e) [(d)] The office may not impose fees on a producer for
fuel ethanol, renewable methane, biodiesel, or renewable diesel
produced at a registered plant after the 10th anniversary of the
date production from the plant begins.
(f) [(e)] The office may enter into an interagency contract
with the department authorizing the department to impose and
collect fees on behalf of the office under this section.
Sec. 16.006. FUEL ETHANOL, RENEWABLE METHANE, BIODIESEL,
AND RENEWABLE DIESEL GRANTS. (a) The office, after consultation
with the department, shall make grants to producers as an incentive
for the development of the fuel ethanol, renewable methane,
biodiesel, and renewable diesel industry and agricultural
production in this state.
(b) A producer is entitled to receive from the account 20
cents for each gallon of fuel ethanol or MMBtu of renewable methane
and 10 cents for each gallon of biodiesel produced in each
registered plant operated by the producer until the 10th
anniversary of the date production from the plant begins.
(c) [(b)] A producer is entitled to receive from the account
20 cents for each gallon of fuel ethanol, biodiesel, or renewable
diesel produced in each registered plant operated by the producer
until the 10th anniversary of the date production from the plant
begins. The incentive under this subsection is payable only on that
part of each gallon of fuel produced from renewable resources.
(d) [(c)] For each fiscal year a producer may not receive
grants for more than 18 million gallons of fuel ethanol, biodiesel,
or renewable diesel or MMBtu of renewable methane produced at any
one registered plant.
(c) [(d)] The office by rule shall provide for the
distribution of grant funds under this chapter to producers. The
office shall make grants not less often than quarterly.
(c) [(e)] If the office determines that the amount of money
credited to the account is not sufficient to distribute the full
amount of grant funds to eligible producers as provided by this
chapter for a fiscal year, the office shall proportionately reduce
the amount of each grant for each gallon of fuel ethanol, biodiesel,
or renewable diesel or each MMBtu of renewable methane produced as
necessary to continue the incentive program during the remainder of
the fiscal year.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.