AGRICULTURE CODE
CHAPTER 16. FUEL ETHANOL AND BIODIESEL PRODUCTION INCENTIVE PROGRAM
§ 16.001. DEFINITIONS. In this chapter:
(1) "Account" means the fuel ethanol and biodiesel
production account.
(2) "ASTM" means the American Society for Testing and
Materials.
(3) "Biodiesel" means a monoalkyl ester that:
(A) is derived from vegetable oils, rendered
animal fats, or renewable lipids or a combination of those
ingredients; and
(B) meets the requirements of ASTM PS 121, the
provisional specification for biodiesel.
(4) "Fuel ethanol" means ethyl alcohol that:
(A) has a purity of at least 99 percent,
exclusive of added denaturants;
(B) has been denatured in conformity with a
method approved by the Bureau of Alcohol, Tobacco, Firearms, and
Explosives of the United States Department of Justice;
(C) meets the requirements of ASTM D4806, the
standard specification for ethanol used as a motor fuel; and
(D) is produced exclusively from agricultural
products or by-products or municipal solid waste.
(5) "Office" means the Texas Economic Development and
Tourism Office.
(6) "Producer" means a person who operates a fuel
ethanol or biodiesel plant in this state.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
§ 16.002. PLANT REGISTRATION. (a) To be eligible for a
grant for fuel ethanol or biodiesel produced in a plant, a producer
must apply to the office for the registration of the plant. A
producer may apply for the registration of more than one plant.
(b) An application for the registration of a plant must show
to the satisfaction of the office that:
(1) the plant is capable of producing fuel ethanol or
biodiesel;
(2) the producer has made a substantial investment of
resources in this state in connection with the plant; and
(3) the plant constitutes a permanent fixture in this
state.
(c) The office, after consultation with the department,
shall register each plant that qualifies under this section. The
office shall notify the department of plants registered under this
section.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
§ 16.003. REPORTS. (a) On or before the fifth day of
each month, a producer shall report to the office on:
(1) the number of gallons of fuel ethanol or biodiesel
produced at each registered plant operated by the producer during
the preceding month;
(2) the number of gallons of fuel ethanol or biodiesel
imported into this state by the producer during the preceding
month;
(3) the number of gallons of fuel ethanol or biodiesel
sold or blended with motor fuels by the producer during the
preceding month; and
(4) the total value of agricultural products consumed
in each registered plant operated by the producer during the
preceding month.
(b) A producer who fails to file a report as required by this
section is ineligible to receive a grant for the period for which
the report is not filed.
(c) The office shall send a copy of each report to the
department.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
§ 16.004. FUEL ETHANOL AND BIODIESEL PRODUCTION
ACCOUNT. (a) The fuel ethanol and biodiesel production account
is an account in the general revenue fund that may be appropriated
only to the office for the purposes of this chapter, including the
making of grants under this chapter.
(b) The account is composed of:
(1) fees collected under Section 16.005; and
(2) money transferred to the account under Subsection
(c).
(c) The comptroller shall transfer from the undedicated
portion of the general revenue fund to the account an amount of
money equal to 5.25 times the amount of the fees collected under
Section 16.005.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
§ 16.005. FEE ON FUEL ETHANOL AND BIODIESEL
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
biodiesel produced in each registered plant operated by the
producer.
(b) For each fiscal year, the office may not impose fees on a
producer for more than 18 million gallons of fuel ethanol or
biodiesel produced at any one registered plant.
(c) The office shall transfer the fees collected under this
section to the comptroller for deposit to the credit of the account.
(d) The office may not impose fees on a producer for fuel
ethanol or biodiesel produced at a registered plant after the 10th
anniversary of the date production from the plant begins.
(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.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
§ 16.006. FUEL ETHANOL AND BIODIESEL GRANTS. (a) The
office, after consultation with the department, shall make grants
to producers as an incentive for the development of the fuel ethanol
and biodiesel 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 biodiesel produced in each
registered plant operated by the producer until the 10th
anniversary of the date production from the plant begins.
(c) For each fiscal year a producer may not receive grants
for more than 18 million gallons of fuel ethanol or biodiesel
produced at any one registered plant.
(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.
(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 or
biodiesel produced as necessary to continue the incentive program
during the remainder of the fiscal year.
Added by Acts 2003, 78th Leg., ch. 814, § 4.01, eff. Sept. 1,
2003.
