The bill, H.B. No. 405, proposes amendments to the Agriculture Code regarding fees and grants associated with the production of fuel ethanol, renewable methane, biodiesel, and renewable diesel. Specifically, it reenacts Section 16.005(a) to establish a fee structure where producers are charged 3.2 cents for each gallon of fuel ethanol, renewable diesel, or MMBtu of renewable methane, and 1.6 cents for each gallon of biodiesel produced. Additionally, Section 16.006(b) is reenacted to entitle producers to receive grants of 20 cents for each gallon of fuel ethanol, renewable diesel, or MMBtu of renewable methane, and 10 cents for each gallon of biodiesel produced, applicable until the 10th anniversary of the plant's production start date.

The bill is designed to support the renewable energy sector by providing a financial framework that encourages the production of these alternative fuels. It stipulates that the Act will take effect immediately if it secures a two-thirds majority vote in both houses of the legislature; otherwise, it will become effective on September 1, 2025.