BILL ANALYSIS
By: Cook, Byron
BACKGROUND AND PURPOSE
Current Water Code, defines the state’s partnership with the U.S. Department of Energy for purposes of constructing and operating a facility located in this state for the coal-based integrated sequestration and hydrogen research project, commonly referred to as the FutureGen project. The purpose of this bill is to demonstrate the significance of this project to the State of Texas and ensures that the project will continue to have the full attention of the state government’s highest office.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
This bill amends the Government Code by adding a section entitled "Contracting Authority." This bill gives the Governor of Texas specific authority to enter contractual agreements for the state with an organization exempt from federal income taxation under Section 501 (a), Internal Revenue Code of 1986, by being listed as an exempt entity under Section 501 (c) (3) of that code, including the FutureGen Industrial Alliance, Inc., for a purpose related to implementing a clean coal project, including an innovative energy demonstration program.
This bill clarifies that the contracting authority section added by this Act expires on the date the FutureGen Industrial Alliance, Inc., loses its qualification as being exempt from federal taxation as described by this bill.
EFFECTIVE DATE
September 1, 2007.