BILL ANALYSIS

C.S.H.B. 5250

By: Hayes

Agriculture & Livestock

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The Fuel Ethanol & Biodiesel Production Incentive Program was created by S.B. 275 in the 78th Legislative Session when the Dept. of Economic Development was abolished and it's functions were transferred to the Texas Economic Development & Tourism Office within the Office of the Governor. Then in the 80th Legislative Session through H.B. 2417, this program was transferred from the Office of the Governor to the Texas Dept. of Agriculture.

Acts from previous Legislative Sessions amending Texas Agriculture Code Sections resulted in the duplication of subsections.  These duplicate subsections create conflicting fees and grant payouts for the Fuel Ethanol & Biodiesel Production Incentive Program.

C.S.H.B. 5250 seeks to provide clarity on which fees and grant payout tiers the program will operate under.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

ANALYSIS

SECTION 1. Section 16.005(a), Agriculture Code, is amended to read as follows:

(a) The office shall impose a fee on each producer in an amount equal to 3.2 cents for each gallon of fuel ethanol, renewable diesel, or MMBtu of renewable methane and 1.6 cents for each gallon of biodiesel produced in each registered plant operated by the producer.

SECTION 2. Section 16.006(b), Agriculture Code, is amended to read as follows:

(b)  A producer is entitled to receive from the account 20 cents for each gallon of fuel ethanol, renewable diesel, 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.

SECTION 3. Provides that this Act takes effect upon passage, or, if the bill does not receive the necessary vote, or September 1, 2023.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF ORIGINAL TO SUBSTITUTE

While C.S.H.B. 5250 may differ from the introduced in minor or nonsubstantive ways, the

following summarizes the substantial differences between the introduced and committee

substitute versions of the bill.

The substitute strikes the duplicative and conflicting sections of the Ag Code under Section 16.005 and Section 16.006 which state different tiers of fees and payouts for the program. The removal of duplicative and contradicting sections will provide clarity on what fee and payout tiers the program will operate under.