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AN ACT
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relating to the fuel ethanol and biodiesel incentive program of the |
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Department of Agriculture. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 16, Agriculture Code, is |
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amended to read as follows: |
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CHAPTER 16. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL |
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PRODUCTION INCENTIVE PROGRAM |
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SECTION 2. Section 16.001, Agriculture Code, is amended by |
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amending Subdivisions (1) and (6) and adding Subdivision (4-a) to |
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read as follows: |
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(1) "Account" means the fuel ethanol, renewable |
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methane, and biodiesel production account. |
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(4-a) "Renewable methane" means methane gas derived |
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from animal waste or an agricultural byproduct, including creamery |
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or fruit waste or corn silage. |
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(6) "Producer" means a person who operates a fuel |
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ethanol, renewable methane, or biodiesel plant in this state. |
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SECTION 3. Sections 16.002(a) and (b), Agriculture Code, |
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are amended to read as follows: |
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(a) To be eligible for a grant for fuel ethanol, renewable |
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methane, or biodiesel produced in a plant, a producer must apply to |
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the office for the registration of the plant. A producer may apply |
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for the registration of more than one plant. |
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(b) An application for the registration of a plant must show |
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to the satisfaction of the office that: |
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(1) the plant is capable of producing fuel ethanol, |
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renewable methane, or biodiesel; |
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(2) the producer has made a substantial investment of |
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resources in this state in connection with the plant; and |
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(3) the plant constitutes a permanent fixture in this |
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state. |
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SECTION 4. Section 16.003(a), Agriculture Code, is amended |
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to read as follows: |
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(a) On or before the fifth day of each month, a producer |
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shall report to the office on: |
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(1) the number of gallons of fuel ethanol or biodiesel |
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or MMBtu of renewable methane produced at each registered plant |
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operated by the producer during the preceding month; |
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(2) the number of gallons of fuel ethanol or biodiesel |
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imported into this state by the producer during the preceding |
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month; |
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(3) the number of gallons of fuel ethanol or biodiesel |
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sold or blended with motor fuels by the producer during the |
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preceding month; and |
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(4) the total value of agricultural products consumed |
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in each registered plant operated by the producer during the |
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preceding month. |
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SECTION 5. The heading to Section 16.004, Agriculture Code, |
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is amended to read as follows: |
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Sec. 16.004. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL |
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PRODUCTION ACCOUNT. |
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SECTION 6. Section 16.004(a), Agriculture Code, is amended |
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to read as follows: |
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(a) The fuel ethanol, renewable methane, and biodiesel |
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production account is an account in the general revenue fund that |
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may be appropriated only to the office for the purposes of this |
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chapter, including the making of grants under this chapter. |
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SECTION 7. The heading to Section 16.005, Agriculture Code, |
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is amended to read as follows: |
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Sec. 16.005. FEE ON FUEL ETHANOL, RENEWABLE METHANE, AND |
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BIODIESEL PRODUCTION. |
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SECTION 8. Sections 16.005(a), (b), and (d), Agriculture |
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Code, are amended to read as follows: |
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(a) The office shall impose a fee on each producer in an |
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amount equal to 3.2 cents for each gallon of fuel ethanol or MMBtu |
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of renewable methane and 1.6 cents for each gallon of biodiesel |
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produced in each registered plant operated by the producer. |
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(b) For each fiscal year, the office may not impose fees on a |
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producer for more than 18 million gallons of fuel ethanol or |
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biodiesel or MMBtu of renewable methane produced at any one |
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registered plant. |
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(d) The office may not impose fees on a producer for fuel |
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ethanol, renewable methane, or biodiesel produced at a registered |
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plant after the 10th anniversary of the date production from the |
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plant begins. |
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SECTION 9. The heading to Section 16.006, Agriculture Code, |
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is amended to read as follows: |
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Sec. 16.006. FUEL ETHANOL, RENEWABLE METHANE, AND BIODIESEL |
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GRANTS. |
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SECTION 10. Sections 16.006(a), (b), (c), and (e), |
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Agriculture Code, are amended to read as follows: |
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(a) The office, after consultation with the department, |
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shall make grants to producers as an incentive for the development |
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of the fuel ethanol, renewable methane, and biodiesel industry and |
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agricultural production in this state. |
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(b) A producer is entitled to receive from the account 20 |
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cents for each gallon of fuel ethanol or MMBtu of renewable methane |
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and 10 cents for each gallon of biodiesel produced in each |
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registered plant operated by the producer until the 10th |
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anniversary of the date production from the plant begins. |
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(c) For each fiscal year a producer may not receive grants |
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for more than 18 million gallons of fuel ethanol or biodiesel or |
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MMBtu of renewable methane produced at any one registered plant. |
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(e) If the office determines that the amount of money |
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credited to the account is not sufficient to distribute the full |
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amount of grant funds to eligible producers as provided by this |
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chapter for a fiscal year, the office shall proportionately reduce |
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the amount of each grant for each gallon of fuel ethanol or |
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biodiesel or each MMBtu of renewable methane produced as necessary |
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to continue the incentive program during the remainder of the |
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fiscal year. |
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SECTION 11. The changes in a fee charged or a payment made |
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for the production of biodiesel under Sections 16.005 and 16.006, |
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Agriculture Code, as amended by this Act, apply only to biodiesel |
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produced on or after the effective date of this Act. |
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SECTION 12. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2318 was passed by the House on April |
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24, 2009, by the following vote: Yeas 132, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2318 was passed by the Senate on May |
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20, 2009, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |