79S30160 CBH-D

By:  Burnam                                                       H.B. No. 27 



A BILL TO BE ENTITLED

AN ACT

relating to the imposition of an energy efficiency tax and to the 
use of the proceeds to fund education; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by 
adding Chapter 164 to read as follows:

CHAPTER 164.  ENERGY EFFICIENCY TAX

SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 164.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Affiliated power generation company," "exempt 
wholesale generator," and "power generation company," have the 
meanings assigned by Section 31.002, Utilities Code.
		(2)  "Electric generator" includes a power generation 
company, an affiliated power generation company, and an exempt 
wholesale generator.

[Sections 164.002-164.020 reserved for expansion]

SUBCHAPTER B.  IMPOSITION AND COLLECTION OF TAX
	Sec. 164.021.  TAX IMPOSED.  A tax is imposed on each 
electric generator in this state that uses a process to generate 
electricity that results in the emission of nitrogen oxides.
	Sec. 164.022.  RATE OF TAX.  The rate of the tax imposed by 
this chapter is 60 cents for each pound of nitrogen oxides emitted 
by the electric generator in generating a megawatt hour of 
electricity multiplied by the total megawatt hours of electricity 
generated by the electric generator.
	Sec. 164.023.  PAYMENT OF TAX.  On or before the 25th day of 
each month, each electric generator on whom a tax is imposed by this 
chapter shall send to the comptroller the amount of tax due under 
this chapter for the preceding month.
	Sec. 164.024.  REPORTS.  On or before the 25th day of each 
month, each electric generator on whom a tax is imposed by this 
chapter shall file with the comptroller a report stating:
		(1)  the number of pounds of nitrogen oxides emitted by 
the electric generator in generating electricity during the 
preceding month;
		(2)  the total number of megawatt hours generated by 
the electric generator during the preceding month; and
		(3)  any other information required by the comptroller.                
	Sec. 164.025.  RECORDS.  A person on whom a tax is imposed by 
this chapter shall keep a complete record of:
		(1)  the number of pounds of nitrogen oxides emitted by 
the electric generator in generating electricity during the 
preceding month;
		(2)  the total number of megawatt hours generated by 
the electric generator during the preceding month; and
		(3)  any other information required by the comptroller.                

[Sections 164.026-164.050 reserved for expansion]

SUBCHAPTER C.  PENALTIES AND OFFENSES
	Sec. 164.051.  INTEREST ON DELINQUENT TAX.  A tax imposed by 
this chapter that is delinquent draws interest as provided by 
Section 111.060.
	Sec. 164.052.  PENALTY.  (a)  An electric generator on whom a 
tax is imposed by this chapter and who fails to file a report as 
required by this chapter or does not pay the tax when it is due 
forfeits to the state a penalty of 12 percent of the amount of tax 
delinquent.
	(b)  If a report required by this chapter is not filed or a 
tax imposed by this chapter is not paid on or before the 30th day 
after the date it is due, the electric generator on whom the tax is 
imposed forfeits to the state a penalty of an additional 12 percent 
of the amount of tax delinquent.
	(c)  The minimum penalty under this section is $1.                      
	Sec. 164.053.  CRIMINAL PENALTY.  (a)  A person who violates 
this chapter commits an offense.
	(b)  An offense under this section is a Class C misdemeanor.            

[Sections 164.054-164.070 reserved for expansion]

SUBCHAPTER D.  ALLOCATION AND USE
	Sec. 164.071.  ALLOCATION OF TAX REVENUE.  All of the revenue 
from the tax imposed by this chapter shall be deposited to the 
credit of the foundation school fund.
	SECTION 2.  This Act takes effect September 1, 2006.