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Amend HB 3168 by striking all below the enacting clause and 
substituting the following:
	SECTION 1.  Chapter 16, Agriculture Code, is amended by 
adding Section 16.007 to read as follows:
	Sec. 16.007.  REGULATION OF FUEL ETHANOL OR BIODIESEL IN A 
MANNER MORE STRINGENT THAN FEDERAL LAW.  (a)  In this section, 
"state agency" has the meaning assigned by Section 315.002, 
Government Code.
	(b)  Except as provided by this section and the Reid vapor 
pressure requirements for gasoline used as control measures in the 
state implementation plan, a state agency may not adopt or 
implement rules in a manner that restricts the production or 
distribution of fuel ethanol or biodiesel if the rules impose a 
restriction more stringent than federal law provides.
	(c)  After July 1st, 2008, Subsection (b) does not apply to a 
rule adopted by the Texas Commission on Environmental Quality if 
that commission determines that, without imposing the restriction 
provided by the rule, emissions generated by using fuel ethanol or 
biodiesel will jeopardize compliance with the state implementation 
plan for attaining national ambient air quality standards.
	(d)  Subsection (b) does not apply if:                                  
		(1)  the United States Environmental Protection Agency 
determines that compliance with that subsection will result in 
noncompliance with the state implementation plan for attaining 
national ambient air quality standards; or
		(2)  producers of biodiesel fail to provide proof on or 
before July 1st, 2008, of testing that:
			(A)  demonstrates compliance with the Texas Low 
Emission Diesel Program; and
			(B)  was conducted in accordance with protocols 
approved by the Texas Commission on Environmental Quality.
	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, 2007.