TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB663 by Hegar (Relating to the production and taxation of renewable diesel fues. ), Committee Report 1st House, Substituted |
The bill would amend Chapter 162 of the Tax Code and Chapter 16 of the Agriculture Code, relating to "renewable diesel."
The bill would define "renewable diesel" and add it to the list of product common names that are defined as diesel fuel in Chapter 162. The bill would also add renewable diesel to the list of fuels, or mixtures of fuels, that are exempt from the diesel fuel tax.
The bill would amend Chapter 16 of the Agriculture Code to change the name of the "Fuel Ethanol and Biodiesel Production Incentive Program" to the "Fuel Ethanol, Biodiesel, and Renewable Diesel Production Incentive Program." It would add renewable diesel as a fuel that would be eligible for a grant of 20 cents per gallon, if the 3.2 cents per gallon fee imposed under the "Fuel Ethanol, Biodiesel, and Renewable Diesel Grant" provisions of the Agriculture Code had been paid.
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2007.
Source Agencies: | 304 Comptroller of Public Accounts
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LBB Staff: | JOB, SD, CT, WK
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