Ethanol and Biodiesel Fuel Production Grant

The Texas Economic Development and Tourism Office administers a grant program for ethanol and biodiesel fuel producers. In order to be eligible for a grant, ethanol and biodiesel fuel producers are required to register with the state and contribute $0.032 per gallon, up to 18 million gallons per producer, to a fund. Additionally, the state contributes $0.168 per gallon produced to the fund. A producer is then entitled to receive a grant of $0.20 per gallon from the fund, up until the 10th anniversary of the date production from the plant began. For each fiscal year a fuel producer may not receive a grant for more than 18 million gallons of fuel ethanol or biodiesel produced at any one registered plant, regardless of total gallons produced. This incentive expires August 31, 2005. (Reference Texas Statutes, Agriculture Code, Chapter 16)