80R1751 ATP/KLA/MTB/JD-D
 
  By: Chisum H.B. No. 2970
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to programs, incentives, and tax exemptions to encourage
  the use, manufacture, storage, distribution, or sale of carbon-free
  hydrogen energy; providing for the issuance of bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 447, Government Code, is amended by
  adding Section 447.013 to read as follows:
         Sec. 447.013.  HYDROGEN ENERGY LOAN PROGRAM. (a)  The state
  energy conservation office shall establish and administer a program
  to make and guarantee loans to business entities for projects that:
               (1)  expand the use of carbon-free hydrogen energy in
  this state; or
               (2)  relate to the manufacture, storage, distribution,
  or sale of carbon-free hydrogen energy in this state.
         (b)  For a project to be eligible for a loan or loan guarantee
  under the program established by this section, the carbon-free
  hydrogen must qualify under Section 49-p, Article III, Texas
  Constitution.
         (c)  The Texas Public Finance Authority shall issue general
  obligation bonds in an aggregate amount not to exceed $250 million
  as authorized by Section 49-p, Article III, Texas Constitution.
         (d)  The program may be funded by:
               (1)  the proceeds of bonds issued under Subsection (c);
  or
               (2)  gifts, grants, and donations made for that
  purpose.
         (e)  The comptroller may adopt rules to implement this
  section.
         SECTION 2.  Subchapter B, Chapter 11, Tax Code, is amended by
  adding Section 11.34 to read as follows:
         Sec. 11.34.  CARBON-FREE HYDROGEN PROPERTY. (a) A person is
  entitled to an exemption from taxation of 25 percent of the
  appraised value of real and tangible personal property that the
  person owns and that is used for the production, storage,
  distribution, or wholesale or retail sale of carbon-free hydrogen.
         (b)  To be eligible for an exemption under Subsection (a),
  the carbon-free hydrogen must qualify under Section 1-p, Article
  VIII, Texas Constitution.
         (c)  For purposes of Subsection (a), pipelines and vehicles
  are included in the meaning of property used for the distribution of
  carbon-free hydrogen.
         (d)  This section does not apply to real or tangible personal
  property that is or was subject to a tax abatement agreement
  executed before January 1, 2008.
         (e)  The comptroller shall develop guidelines to assist
  local officials in the administration of this section.
         SECTION 3.  Subchapter E, Chapter 152, Tax Code, is amended
  by adding Section 152.090 to read as follows:
         Sec. 152.090.  CERTAIN HYDROGEN-POWERED MOTOR VEHICLES. (a)  
  In this section, "hydrogen-powered motor vehicle" means a vehicle
  that meets the Phase II standards established by the California Air
  Resources Board as of September 1, 2007, for an ultra low-emission
  vehicle II or stricter Phase II emission standards established by
  that board and:
               (1)  is hydrogen power capable and has a fuel economy
  rating of at least 45 miles per gallon; or
               (2)  is fully hydrogen-powered.
         (b)  The taxes imposed by this chapter do not apply to the
  sale or use of a hydrogen-powered motor vehicle.
         SECTION 4.  Subchapter D, Chapter 162, Tax Code, is amended
  by adding Section 162.3022 to read as follows:
         Sec. 162.3022.  EXEMPTION FOR CARBON-FREE HYDROGEN AND
  HYDROGEN-POWERED MOTOR VEHICLES. (a)  The tax imposed by this
  subchapter does not apply to carbon-free hydrogen.
         (b)  Notwithstanding any other provision of this chapter, a
  hydrogen-powered motor vehicle, as defined by Section 152.090, is
  not required to have a liquefied gas tax decal or a special use
  liquefied gas tax decal.
         (c)  For purposes of this section, hydrogen is considered to
  be carbon-free if:
               (1)  any carbon resulting from the production of the
  hydrogen is captured during production and:
                     (A)  permanently geologically sequestered; or
                     (B)  used in the production of other carbon-based
  products at a rate that exceeds 90 percent of the input; and
               (2)  any carbon resulting from the generation of any
  electricity used in the production of the hydrogen is captured and:
                     (A)  permanently geologically sequestered; or
                     (B)  used in the production of other carbon-based
  products at a rate that exceeds 90 percent of the input.
         (d)  For purposes of Subsection (c), the generation of wind
  power, solar power, hydroelectricity, geothermal electricity,
  tidal electricity, or nuclear power is considered to result in no
  carbon.
         SECTION 5.  Section 224.153, Transportation Code, is amended
  by adding Subsections (e), (f), and (g) to read as follows:
         (e)  A hydrogen-powered motor vehicle may use a high
  occupancy vehicle lane regardless of the number of occupants in the
  vehicle unless the use would impair the receipt of federal transit
  funds.
         (f)  The department shall by rule determine the best method
  for implementing the use of high occupancy vehicle lanes by
  hydrogen-powered motor vehicles under Subsection (e).
         (g)  In this section, "hydrogen-powered motor vehicle" means
  a vehicle that meets the Phase II standards established by the
  California Air Resources Board as of September 1, 2007, for an ultra
  low-emission vehicle II or stricter Phase II emission standards
  established by that board and:
               (1)  is hydrogen power capable and has a fuel economy
  rating of at least 45 miles per gallon; or
               (2)  is fully hydrogen-powered.
         SECTION 6.  Subtitle G, Title 6, Transportation Code, is
  amended by adding Chapter 371 to read as follows:
  CHAPTER 371. PROVISIONS APPLICABLE TO MORE THAN
  ONE TYPE OF TOLL PROJECT
         Sec. 371.001.  HYDROGEN-POWERED MOTOR VEHICLES. (a)  In
  this chapter:
               (1)  "Department" means the Texas Department of
  Transportation.
               (2)  "Hydrogen-powered motor vehicle" has the meaning
  assigned by Section 224.153(g).
               (3)  "Toll project" means a toll project described by
  Section 201.001(b), regardless of whether the toll project is:
                     (A)  a part of the state highway system; or
                     (B)  subject to the jurisdiction of the
  department.
               (4)  "Toll project entity" means an entity authorized
  by law to acquire, design, construct, finance, operate, and
  maintain a toll project, including:
                     (A)  the department under Chapter 227 or 228;
                     (B)  a regional tollway authority under Chapter
  366;
                     (C)  a regional mobility authority under Chapter
  370; or
                     (D)  a county under Chapter 284.
         (b)  A toll project entity may not require a hydrogen-powered
  motor vehicle to pay a toll for the use of a toll project.
         (c)  The department shall by rule provide procedures for
  implementing this section through the use of toll tags.
         SECTION 7.  The state energy conservation office shall
  establish a program under Section 447.013, Government Code, as
  added by this Act, not later than January 1, 2008.
         SECTION 8.  (a) Section 11.34, Tax Code, as added by this
  Act, applies only to ad valorem taxes imposed for a tax year
  beginning on or after January 1, 2008.
         (b)  The changes in law made by Sections 152.090 and
  162.3022, Tax Code, as added by this Act, do not affect tax
  liability accruing before September 1, 2007.  That liability
  continues in effect as if this Act had not been enacted, and the
  former law is continued in effect for the collection of taxes due
  and for civil and criminal enforcement of the liability for those
  taxes.
         SECTION 9.  (a)  Except as provided by Subsections (b) and
  (c) of this section, this Act takes effect September 1, 2007.
         (b)  Section 1 of this Act takes effect only if the
  constitutional amendment proposed by the 80th Legislature, Regular
  Session, 2007, authorizing the issuance of general obligation bonds
  to provide and guarantee loans to encourage the use of carbon-free
  hydrogen energy, is approved by the voters.  If that amendment is
  not approved by the voters, Section 1 of this Act has no effect.
         (c)  Section 2 of this Act takes effect January 1, 2008, but
  only if the constitutional amendment proposed by the 80th
  Legislature, Regular Session, 2007, to exempt from ad valorem
  taxation 25 percent of the assessed value of real and tangible
  personal property used for the production, storage, distribution,
  or wholesale or retail sale of carbon-free hydrogen is approved by
  the voters. If that amendment is not approved by the voters,
  Section 2 of this Act has no effect.