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By: Van de Putte S.B. No. 1039
A BILL TO BE ENTITLED
AN ACT
relating to fuel cell demonstration and deployment for electric
generation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) a fuel cell deployment incentive program is
necessary to assure economic development and to leverage federal
money available for fuel cells and fuel cell power plants;
(2) stimulating the market for fuel cells and fuel
cell power plants in this state will create in this state jobs in
the manufacture, installation, and maintenance of fuel cells;
(3) creating a robust market for fuel cells and fuel
cell power plants in this state will help to mitigate air pollution
concerns that threaten economic development in this state; and
(4) research and development of fuel cells and fuel
cell power plants in this state's institutions of higher education
will assure continued economic development of the fuel cell
industry and related industries and will place this state at the
forefront of clean power technologies.
SECTION 2. Section 386.252, Health and Safety Code, is
amended by adding Subsection (c) to read as follows:
(c) The council may impose on a recipient of a grant under
the new technology research and development program a fee in an
amount equal to not more than five percent of the amount of the
grant. A fee collected under this subsection may be used by the
council only to:
(1) monitor the progress of a project;
(2) disseminate information about accomplishments
related to a project;
(3) track the deployment of technology into the
marketplace; or
(4) provide estimates of the effects that
commercialization of funded projects may have on the environment.
SECTION 3. Section 387.001, Health and Safety Code, is
amended to read as follows:
Sec. 387.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Fuel cell power plant" means an integrated system
composed of a fuel cell stack assembly and associated components
that uses a fuel and oxygen to generate electricity by
electrochemical means.
(2) "Program"[, "program"] means the new technology
research and development program.
SECTION 4. Section 387.003, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) Under the program, the Texas Council on Environmental
Technology shall provide grants to be used to support development
of emissions-reducing technologies that may be used for projects
eligible for awards under Chapter 386 and other new technologies
that show promise for commercialization.
(c) The primary objective of this chapter is to promote the
development of commercialization technologies that will support
projects that may be funded under Chapter 386 and this chapter,
including advanced technologies such as fuel cells, catalysts, and
fuel additives.
SECTION 5. Subsection (a), Section 387.006, Health and
Safety Code, is amended to read as follows:
(a) An application for a technology grant under this chapter
must show clear and compelling evidence that:
(1) the proposed technology project has a strong
commercialization plan and organization; and
(2) the technology proposed for funding:
(A) is likely to be offered for commercial sale
in this state within five years after the date of the application
for funding; and
(B) once commercialized, will offer
opportunities for projects eligible for funding under Chapter 386
or can be the basis for receiving benefits under incentive programs
for reducing emissions of air pollutants.
SECTION 6. Section 387.009, Health and Safety Code, is
amended to read as follows:
Sec. 387.009. ADVISORY COMMITTEES. (a) The Texas Council
on Environmental Technology may appoint advisory committees as
necessary or desirable to assist the council in performing its
duties. An advisory committee may include representatives of
industry, environmental groups, consumer groups, local
governments, agriculture, the commission, the General Land Office,
the Public Utility Commission of Texas, the state energy
conservation office, and the Railroad Commission of Texas.
(b) The Texas Council on Environmental Technology shall
appoint an advisory committee on fuel cell power plant technology
to provide input to the council regarding the council's
responsibilities under Section 387.010.
(c) Any senator or representative desiring to do so may
participate on any advisory committee appointed under this section.
(d) Members of an advisory committee are not entitled to
compensation.
SECTION 7. Section 387.010, Health and Safety Code, is
amended to read as follows:
Sec. 387.010. REPORTS. (a) Not later than December 1 of
each even-numbered[, 2002, and not later than December 1 of each
subsequent second] year, the Texas Council on Environmental
Technology shall:
(1) report to the legislature on projects funded under
the new technology research and development program, describing the
technical objectives and accomplishments of the project and the
progress of the project technology toward commercialization; and
(2) provide legislative recommendations on additional
steps the state could take to further assist the commercialization
of advanced environmental technologies, including stationary and
mobile applications of fuel cell power plants, and to facilitate
the attraction or use of private and federal money for development
of the technologies in this state.
(b) Using sound science, the report under Subsection (a)(1)
shall detail the costs and actual realized benefits of the program
and of each project funded under the program.
SECTION 8. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.356 to read as follows:
Sec. 151.356. STATIONARY FUEL CELL POWER PLANTS. (a) The
sale of stationary fuel cell power plants is exempted from the taxes
imposed by this chapter.
(b) This section expires January 1, 2011.
SECTION 9. This Act takes effect September 1, 2003.