California governor signs bill correcting tax problem for biodiesel

Source: By Biofuels Digest • Posted: Wednesday, October 14, 2015

In California, on Oct. 4 California Gov. Jerry Brown signed AB 1032 into law, correcting a tax problem and clearing the way for a significant increase in the volumes of biodiesel blended in the state. The bill, introduced by Assembly Member Rudy Salas and sponsored by the California Biodiesel Alliance, amended Section 60501 of the Revenue and Taxation Code by adding biodiesel to the law allowing for refunds on nontaxable fuel.

Beginning Jan. 1, refunds will be available through the State Board of Equalization on the portion of the nontaxable (dyed) biodiesel removed from the terminal to those that can show they have already paid tax on that fuel.