NBB, petroleum industry team up in Texas for regulation change

By NBB | September 08, 2011

The biodiesel industry scored a win in Texas with a change made to a motor fuel tax reporting rule in the state. The change makes it easier for petroleum companies to take advantage of a tax exemption for blended biodiesel.

The percentage of biodiesel blended with petroleum diesel fuel must be disclosed on invoices, storage tanks and retail pumps. To receive the tax exemption for biodiesel, the blend percent previously required reporting to the nearest tenth of a percent. The amendment allows for reporting to now be to the nearest whole percentage or whole gallon.

The change was a result of efforts by the National Biodiesel Board along with NBB member company Renewable Energy Group Inc., the Texas Oil and Gas Association, Valero Energy Corp., and the Texas Petroleum Marketers and Convenience Store Association.

“The change in the tax code language in Texas is a great example of cooperation among the biodiesel industry, petroleum industry and state regulators,” said NBB Chairman Gary Haer.
Haer added that many obligated parties weren’t taking advantage of the tax exemption because it was simply too complicated to track, record and report the biodiesel blends to such a small percentage, and frankly impossible to enforce.

“This seems like a small change on paper but will make all the difference in real-world reporting,” said Haer. “It makes it much easier for diesel retailers to offer biodiesel blends and will likely lead to increased markets in Texas.”


The rule change, effective Aug. 1, was posted in the Texas Register. The NBB State Government Affairs program works on biodiesel issues, both legislative and regulatory, in all 50 states.

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