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Amend HB 3732 (2nd Reading Engrossment) by striking page 15,
line 6, through page 16, line 1, and substituting the following:
(d) To qualify for the tax rate reduction under this section,
the operator must apply for a certification from:
(1) the Railroad Commission of Texas, if carbon dioxide
used in the project is to be sequestered in a reservoir productive
of oil or natural gas;
(2) the Texas Commission on Environmental Quality, if
carbon dioxide used in the project is to be sequestered in a
geological formation other than a reservoir productive of oil or
natural gas; or
(3) both the Railroad Commission of Texas and the Texas
Commission on Environmental Quality if both Subdivisions (1) and
(2) apply.
(e) An agency to which an operator applies for a
certification under Subsection (d) may issue the certification only
if the agency finds that, based on substantial evidence, there is a
reasonable expectation that:
(1) the operator's planned sequestration program will
ensure that at least 99 percent of the carbon dioxide sequestered as
required by Subsection (a)(4) will remain sequestered for at least
1,000 years; and
(2) the operator's planned sequestration program will
include appropriately designed monitoring and verification
measures that will be employed for a period sufficient to
demonstrate whether the sequestration program is performing as
expected.
(e-1) The tax rate reduction does not apply if the operator's
sequestration program or the operator's monitoring and
verification measures differ substantially from the planned
program described by Subsection (e), and the operator shall refund
the difference between the amount of the tax paid under this section
and the amount that would have been imposed in the absence of this
section.