BILL NUMBER: AB 2240	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Tran and Price

                        FEBRUARY 20, 2008

   An act to add Section 8651.4 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2240, as introduced, Tran. Use fuel tax: exemption: biodiesel.
   The Use Fuel Tax Law imposes an excise tax for the use of fuel at
a specified rate and provides specified exemptions from that tax.
   This bill would provide an exemption from that tax for biodiesel
produced in this state with California feedstock and require the
California Energy Commission to provide specified oversight and make
an annual report in connection therewith, as provided.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8651.4 is added to the Revenue and Taxation
Code, to read:
   8651.4.  (a) Notwithstanding Section 8651, on and after January 1,
2009, biodiesel produced in this state with California feedstock
shall be exempt from the tax prescribed by Section 8651.
   (b) If any person or entity is exempt or partially exempt from the
federal fuel tax at the time of a reduction, the person or entity
shall continue to be exempt under this section.
   (c) All references in this code to Section 8651 shall be deemed,
with respect to the rate imposed upon biodiesel fuel, to also refer
to this section.
   (d) The California Energy Commission shall, in cooperation with
the board, oversee the tax incentive program established by this
section and shall annually report to the Legislature regarding the
program. The report shall be posted on the commission's Internet Web
site and shall include all of the following information:
   (1) The effect of the tax incentive program on the consumption of
biodiesel by consumers.
   (2) Economic benefits or losses to the state as the result of the
program.
   (3) Calculation of greenhouse gas emission reductions.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.