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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the emission of nitrogen oxides by |
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certain electric generating facilities during certain months and to |
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incentives for the construction of certain facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 382, Health and Safety |
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Code, is amended by adding Section 382.067 to read as follows: |
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Sec. 382.067. LIMITATION ON NITROGEN OXIDES EMISSIONS OF |
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CERTAIN ELECTRIC GENERATING FACILITIES DURING CERTAIN MONTHS. (a) |
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This section applies only to an electric generating facility: |
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(1) located less than 125 miles from an area |
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designated as a nonattainment area for a national ambient air |
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quality standard under Section 107(d) of the federal Clean Air Act |
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(42 U.S.C. Section 7407); and |
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(2) the construction of which began on or after |
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January 1, 2007, and the operation of which begins on or after |
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January 1, 2008. |
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(b) The commission by rule or by permit condition shall |
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provide that during the months of June, July, August, and September |
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of each year an electric generating facility may not emit more than |
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0.3 pounds of nitrogen oxides for each megawatt-hour of electric |
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energy generated by the facility. |
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SECTION 2. (a) Section 171.108(b) and (c), Tax Code, as |
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effective January 1, 2008, is amended to read as follows: |
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(b) A taxable entity may deduct from its apportioned margin |
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10 percent of the amortized cost of equipment: |
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(1) that is used in a clean coal project, or a |
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coal-fired electric generating facility that emits less than 0.3 |
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pounds of nitrogen oxides for each megawatt-hour of electric energy |
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generated by the facility and begins operation on or after January |
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1, 2008; |
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(2) that is acquired by the taxable entity for use in |
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generation of electricity, production of process steam, or |
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industrial production; |
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(3) that the taxable entity uses in this state; and |
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(4) the cost of which is amortized in accordance with |
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Subsection (c). |
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(c) The amortization of the cost of capital used in a clean |
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coal project, or a coal-fired electric generating facility that |
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emits less than 0.3 pounds of nitrogen oxides for each |
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megawatt-hour of electric energy generated by the facility and |
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begins operation on or after January 1, 2008 must: |
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(1) be for a period of at least 60 months; |
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(2) provide for equal monthly amounts; |
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(3) begin in the month during which the equipment is |
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placed in service in this state; and |
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(4) cover only a period during which the equipment is |
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used in this state. |
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SECTION 3. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2007. |