By:  Chisum                                                       H.B. No. 149



A BILL TO BE ENTITLED

AN ACT

relating to a clean coal project.                                             
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	Subchapter E, Chapter 27, Water Code, is amended by adding 
Sections 27.074 - 27.077 to read as follows:
	Sec. 27.074.  ACQUISITION OF CARBON DIOXIDE.  (a)  The 
railroad commission shall acquire title to carbon dioxide captured 
by a clean coal project that meets the FutureGen project profile.
	(b)  The right, title, and interest in carbon dioxide 
acquired under this section are the property of the railroad 
commission, acting on behalf of the state, and shall be 
administered and controlled by the railroad commission in the name 
of the state.
	(c)  A right, title, or interest acquired under this chapter 
does not vest in any fund created by the Texas Constitution.
	Sec. 27.075.  TRANSFER COSTS OF PROPERTY.  Carbon dioxide 
transferred to the state under this chapter shall be transferred to 
the state without cost, other than administrative and legal costs 
incurred in making the transfer.
	Sec. 27.076.  LIABILITY.  The transfer of the title to the 
state under this section does not relieve an owner or operator of a 
clean coal project of liability for any act or omission regarding 
the generation of carbon dioxide performed before the carbon 
dioxide was captured in a manner that meets the FutureGen project 
profile.
	Sec. 27.077.  SALE OF CARBON DIOXIDE FOR BENEFICIAL USE.  (a)  
"Carbon dioxide" as used in this section means that portion of 
carbon dioxide that is captured from an electric generation or 
industrial production facility and is not injected for permanent 
storage in a geologic formation in a manner that meets the FutureGen 
project profile.
	(b)  The railroad commission may transfer title to the buyer 
or end user of carbon dioxide that is sold for enhanced oil recovery 
or other beneficial use.
	(c)  The railroad commission shall transfer proceeds from 
the sale of carbon dioxide in accordance with this section to the 
state general revenue fund.