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A BILL TO BE ENTITLED
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AN ACT
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relating to certain matters regarding a clean coal project, |
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including contracting authority and indemnification requirements, |
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liability, representation of a state agency by the attorney |
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general, and monitoring of sequestered carbon dioxide. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 490.301, Government Code, as added by |
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Chapter 1097, Acts of the 79th Legislature, Regular Session, 2005, |
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is amended to read as follows: |
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Sec. 490.301. DEFINITION. In this subchapter [section], |
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"clean coal project" has the meaning assigned by Section 5.001, |
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Water Code. |
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SECTION 2. Subchapter G, Chapter 490, Government Code, as |
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added by Chapter 1097, Acts of the 79th Legislature, Regular |
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Session, 2005, is amended by adding Section 490.304 to read as |
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follows: |
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Sec. 490.304. CONTRACTING AUTHORITY. (a) The governor may |
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contract for the state with an organization exempt from federal |
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income taxation under Section 501(a), Internal Revenue Code of |
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1986, by being listed as an exempt entity under Section 501(c)(3) of |
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that code, including the FutureGen Industrial Alliance, Inc., for a |
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purpose related to implementing a clean coal project, including an |
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innovative energy demonstration program described by Section |
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2305.037. |
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(b) This section expires on the date the FutureGen |
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Industrial Alliance, Inc., loses its qualification as being exempt |
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from federal taxation under Section 501(a), Internal Revenue Code |
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of 1986, by being listed as an exempt entity under Section 501(c)(3) |
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of that code. |
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SECTION 3. Chapter 119, Natural Resources Code, is amended |
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by adding Section 119.0025 to read as follows: |
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Sec. 119.0025. MONITORING OF SEQUESTERED CARBON DIOXIDE. |
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The Bureau of Economic Geology of The University of Texas at Austin |
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shall monitor, measure, and verify the permanent status of |
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sequestered carbon dioxide in which the commission has acquired the |
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right, title, and interest under Section 119.002. |
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SECTION 4. Section 119.004, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 119.004. LIABILITY. (a) The transfer of title to the |
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state under Section 119.002 does not relieve an owner or operator of |
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a clean coal project of liability for any act or omission regarding |
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the generation of carbon dioxide performed before the carbon |
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dioxide was captured. |
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(b) On the date the commission acquires the right, title, |
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and interest in carbon dioxide captured by a clean coal project |
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under Section 119.002, the owner or operator of the clean coal |
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project is relieved from liability for any act or omission |
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regarding the carbon dioxide injection location, and the method or |
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means of performing carbon dioxide injection, if the injection |
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location and method or means of injection comply with the terms of a |
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license or permit issued by the state and applicable state law and |
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regulations. |
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(c) Notwithstanding subsection (b) of this section, no |
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owner, operator or contractor of the clean coal project is immune |
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from liability for personal injury or death that results from |
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construction of the site, or drilling or operation of the injection |
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wells. |
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SECTION 5. Section 119.006, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 119.006. INDEMNIFICATION. The University of Texas |
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System, [and] the permanent university fund, and the Texas Board of |
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Criminal Justice may enter into a lease with the commission[,] or |
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with an owner or operator of a clean coal project[,] for the use of |
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lands owned or controlled by the system, the [or] fund, or the board |
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for permanent storage of carbon dioxide captured by a clean coal |
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project, provided that such lease adequately indemnifies the |
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system, the [and] fund, the board, and the Texas Department of |
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Criminal Justice against liability for personal injury or property |
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damage incurred by the system, the [or] fund, the board, or the |
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department as a result of the escape or migration of the carbon |
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dioxide after it is injected into a zone or reservoir. This section |
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does not affect the application of Chapter 101, Civil Practice and |
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Remedies Code, to any activity carried out by a governmental unit, |
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as defined by that chapter. |
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SECTION 6. Chapter 119, Natural Resources Code, is amended |
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by adding Section 119.007 to read as follows: |
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Sec. 119.007. REPRESENTATION BY ATTORNEY GENERAL. (a) In |
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this section, "state agency" includes: |
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(1) a department, commission, board, office, or other |
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agency in the legislative, executive, or judicial branch of state |
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government; and |
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(2) a university system or institution of higher |
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education as defined by Section 61.003, Education Code. |
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(b) A state agency may request the attorney general to |
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represent the state agency in a legal proceeding that arises from an |
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escape or migration of carbon dioxide captured or sequestered in |
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connection with a clean coal project. |
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(c) If the attorney general declines to represent the state |
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agency, the state agency may obtain outside counsel in accordance |
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with Section 402.0212, Government Code, and for purposes of that |
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section, the attorney general's declination to represent the agency |
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constitutes the attorney general's approval of the outside counsel |
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for the matter. |
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SECTION 7. This Act takes effect September 1, 2007. |