1-1 By: Madla S.B. No. 857 1-2 (In the Senate - Filed February 22, 2001; February 26, 2001, 1-3 read first time and referred to Committee on Finance; 1-4 April 24, 2001, reported favorably, as amended, by the following 1-5 vote: Yeas 12, Nays 0; April 24, 2001, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Lindsay 1-7 Amend S.B. No. 857 by inserting the following at the end of 1-8 SECTION 151.357(2) in SECTION 1 of the bill (page 1, line 50): 1-9 The term does not include air-source heat pump systems. 1-10 COMMITTEE AMENDMENT NO. 2 By: Lindsay 1-11 Amend S.B. No. 857 by inserting an appropriately numbered 1-12 SECTION of the bill to read as follows and renumbering subsequent 1-13 SECTION appropriately: 1-14 SECTION 2. Section 151.357, Tax Code, as added by this Act, 1-15 expires August 31, 2003. 1-16 A BILL TO BE ENTITLED 1-17 AN ACT 1-18 relating to exempting renewable energy devices from the sales and 1-19 use tax. 1-20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-21 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended 1-22 by adding Section 151.357 to read as follows: 1-23 Sec. 151.357. RENEWABLE ENERGY DEVICES. (a) In this 1-24 section: 1-25 (1) "Renewable energy" means an energy source that is 1-26 naturally regenerated over a short time scale and derived directly 1-27 or indirectly from the sun or from other natural movements and 1-28 mechanisms of the environment. The term: 1-29 (A) includes energy derived directly from: 1-30 (i) the sun, wind, water, waves, and 1-31 tides; 1-32 (ii) geothermal forces; and 1-33 (iii) biomass and biomass-derived waste 1-34 products, including landfill gas; and 1-35 (B) does not include energy derived from: 1-36 (i) fossil fuels and waste products from 1-37 fossil fuels; and 1-38 (ii) waste products from inorganic 1-39 sources. 1-40 (2) "Renewable energy device" means that portion of a 1-41 system or series of mechanisms designed primarily to provide 1-42 heating or cooling, to provide liquid or gaseous fuels, or to 1-43 produce electrical or mechanical power by means of collecting, 1-44 transferring, or converting renewable energy. The term includes a 1-45 mechanical or chemical device that has the capacity for storing 1-46 renewable energy for use in heating or cooling, in the production 1-47 of power, or as liquid or gaseous fuels. 1-48 (b) The sale or use of a renewable energy device, including 1-49 its component parts and repair or replacement parts, is exempt from 1-50 the tax imposed by this chapter. 1-51 SECTION 2. (a) This Act takes effect July 1, 2001, if it 1-52 receives a vote of two-thirds of all the members elected to each 1-53 house, as provided by Section 39, Article III, Texas Constitution. 1-54 If this Act does not receive the vote necessary for effect on that 1-55 date, this Act takes effect October 1, 2001. 1-56 (b) The change in law made by this Act does not affect taxes 1-57 imposed before the effective date of this Act, and the law in 1-58 effect before the effective date of this Act is continued in effect 1-59 for purposes of the liability for and collection of those taxes. 1-60 * * * * *