SB1146 Summary

• Establishes a tiered tax exemption for biodiesel, renewable diesel, and biodiesel blends starting January 1, 2024, with varying biodiesel percentage thresholds that change quarterly and increase over time through April 2026.

• Creates new definition of "renewable diesel" as a hydrocarbon fuel derived from biomass meeting ASTM standards D975 or D396, excluding co-processed fuels.

• Applies tax exemptions to proceeds of sales under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act for qualifying biodiesel products.

• Adds blending rights for properly licensed distributors to blend petroleum-based diesel fuel with biodiesel and prohibits suppliers from refusing to sell fuel to licensed blenders based on blending intent.