By: Anchia H.B. No. 2388

A BILL TO BE ENTITLED

AN ACT

relating to a limitation on the emission of nitrogen oxides by certain electric generating facilities during certain months and to incentives for the construction of certain facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 382, Health and Safety Code, is amended by adding Section 382.067 to read as follows:

Sec. 382.067. LIMITATION ON NITROGEN OXIDES EMISSIONS OF CERTAIN ELECTRIC GENERATING FACILITIES DURING CERTAIN MONTHS. (a) This section applies only to an electric generating facility:

(1) located less than 125 miles from an area designated as a nonattainment area for a national ambient air quality standard under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and

(2) the construction of which began on or after January 1, 2007, and the operation of which begins on or after January 1, 2008.

(b) The commission by rule or by permit condition shall provide that during the months of June, July, August, and September of each year an electric generating facility may not emit more than 0.3 pounds of nitrogen oxides for each megawatt-hour of electric energy generated by the facility.

SECTION 2. (a) Section 171.108(b) and (c), Tax Code, as effective January 1, 2008, is amended to read as follows:

(b) A taxable entity may deduct from its apportioned margin 10 percent of the amortized cost of equipment:

(1) that is used in a clean coal project, or a coal-fired electric generating facility that emits less than 0.3 pounds of nitrogen oxides for each megawatt-hour of electric energy generated by the facility and begins operation on or after January 1, 2008;

(2) that is acquired by the taxable entity for use in generation of electricity, production of process steam, or industrial production;

(3) that the taxable entity uses in this state; and

(4) the cost of which is amortized in accordance with Subsection (c).

(c) The amortization of the cost of capital used in a clean coal project, or a coal-fired electric generating facility that emits less than 0.3 pounds of nitrogen oxides for each megawatt-hour of electric energy generated by the facility and begins operation on or after January 1, 2008 must:

(1) be for a period of at least 60 months;

(2) provide for equal monthly amounts;

(3) begin in the month during which the equipment is placed in service in this state; and

(4) cover only a period during which the equipment is used in this state.

SECTION 3. Except as otherwise provided by this Act, this Act takes effect September 1, 2007.