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.
1-21           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.
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