By: Hardcastle, et al. H.B. No. 3732
  COMMITTEE SUBSTITUTE FOR H.B. No. 3732By:  Averitt By:  Averitt
         (In the Senate - Received from the House April 27, 2007;
  May 1, 2007, read first time and referred to Committee on Natural
  Resources; May 15, 2007, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 9, Nays 0;
  May 15, 2007, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the implementation of advanced clean energy projects
  and other environmentally protective projects in this state.
         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.  ADVANCED CLEAN ENERGY PROJECT GRANT AND LOAN
  PROGRAM. (a) In this section:
               (1)  "Account" means the advanced clean energy project
  account established under this section.
               (2)  "Program" means the advanced clean energy project
  grant and loan program established under this section.
               (3)  "Advanced clean energy project" has the meaning
  assigned by Section 382.003, Health and Safety Code.
         (b)  The advanced clean energy project grant and loan program
  is established to encourage the development of advanced clean
  energy projects in an environmentally protective manner. The
  program is administered by the State Energy Conservation Office.
         (c)  The advanced clean energy project account is an account
  in the general revenue fund.
         (d)  The account consists of:
               (1)  a sub-account in the account that consists of the
  proceeds of bonds issued under Subsection (j);
               (2)  revenues allocated to the account under Section
  182.122, Tax Code;
               (3)  any amount appropriated by the legislature for the
  account;
               (4)  gifts, grants, and other donations received for
  the account; and
               (5)  interest earned on the investment of money in the
  account.
         (e)  Money in the account may be appropriated only to the
  State Energy Conservation Office to award grants or to make or
  guarantee loans under this section. The total amount of grants that
  may be awarded under this section in any state fiscal biennium from
  revenues described by Subsection (d)(2) may not exceed $20 million.
  The total amount of loans that may be made or guaranteed under this
  section in any state fiscal biennium from revenues described by
  Subsection (d)(2) may not exceed $10 million.
         (f)  Before awarding a grant or making a loan under this
  section, the State Energy Conservation Office shall enter into a
  written agreement with the entity to which the grant is to be
  awarded or the loan is to be made. The agreement may specify that
  if, as of a date specified by the agreement, the entity has not used
  the grant or loan for the purposes for which the grant or loan was
  intended, the entity shall repay the amount of the grant or the
  amount of the loan and any accrued interest, as applicable, under
  terms specified by the agreement.
         (g)  Under the program, the State Energy Conservation Office
  may award a grant to the managing entity of an advanced clean energy
  project in an amount not to exceed 50 percent of the total amount
  invested in the project by private industry sources. The managing
  entity of the project must provide any information considered
  necessary by the State Energy Conservation Office to determine
  whether the entity qualifies for the grant.
         (h)  Under the program, the State Energy Conservation Office
  may make or guarantee a loan to the managing entity of an advanced
  clean energy project in this state. If the loan or guarantee is to
  be funded by the proceeds of bonds issued under Subsection (j), the
  project must qualify for the loan or guarantee under Section 49-q,
  Article III, Texas Constitution.
         (i)  A recipient of a grant or loan under this section is
  encouraged to purchase goods and services from small businesses and
  historically underutilized businesses, as those terms are defined
  by Section 481.191, Government Code.
         (j)  The Texas Public Finance Authority shall issue general
  obligation bonds in accordance with and subject to Chapter 1232,
  Government Code, for the purposes authorized by Section 49-q,
  Article III, Texas Constitution.
         SECTION 2.  Section 382.003, Health and Safety Code, is
  amended by adding Subdivisions (1-a), (3-a), (7-a), and (11-a) to
  read as follows:
               (1-a)  "Advanced clean energy project" means a project
  for which an application for a permit under this chapter is received
  by the commission on or after January 1, 2008, and before January 1,
  2020, and that:
                     (A)  involves the use of coal, biomass, petroleum
  coke, or solid waste, or hydrogen fuel cells derived from such
  fuels, in the generation of electricity, or the creation of liquid
  fuels outside of the existing fuel production infrastructure while
  co-generating electricity;
                     (B)  is capable of achieving on an annual basis a
  99 percent or greater reduction of sulfur dioxide emissions, a 95
  percent or greater reduction of mercury emissions, and an emission
  rate for nitrogen oxides of 0.05 pounds or less per million British
  thermal units or of achieving the emissions profile required by
  rules adopted by the commission under Section 382.0566, if
  applicable; and
                     (C)  renders carbon dioxide capable of capture,
  sequestration, or abatement.
               (3-a)  "Coal" has the meaning assigned by Section
  134.004, Natural Resources Code.
               (7-a)  "Federally qualified clean coal technology"
  means a technology or process, including a technology or process
  applied at the precombustion, combustion, or postcombustion stage,
  for use at a new or existing facility that will achieve on an annual
  basis a 97 percent or greater reduction of sulfur dioxide
  emissions, an emission rate for nitrogen oxides of 0.08 pounds or
  less per million British thermal units, and significant reductions
  in mercury emissions associated with the use of coal in the
  generation of electricity, process steam, or industrial products,
  including the creation of liquid fuels, hydrogen for fuel cells,
  and other coproducts. The technology used must comply with
  applicable federal law regarding mercury emissions and must render
  carbon dioxide capable of capture, sequestration, or abatement.
  Federally qualified clean coal technology includes atmospheric or
  pressurized fluidized bed combustion technology, integrated
  gasification combined cycle technology, methanation technology,
  magnetohydrodynamic technology, direct and indirect coal-fired
  turbines, undiluted high-flame temperature oxygen combustion
  technology that excludes air, and integrated gasification fuel
  cells.
               (11-a)  "Solid waste" has the meaning assigned by
  Section 361.003.
         SECTION 3.  Section 382.0518, Health and Safety Code, is
  amended by adding Subsection (c-1) to read as follows:
         (c-1)  In considering the issuance of a permit for a new
  electric generating facility, the commission shall analyze and
  consider:
               (1)  the cumulative effects of the facility's expected
  emissions together with the cumulative effects of the authorized
  emissions from all sources of pollution permitted under this
  section that are located within a radius of impact specified by
  commission rule; and
               (2)  whether the emissions from the facility will cause
  an area to be designated a nonattainment area.
         SECTION 4.  Subchapter C, Chapter 382, Health and Safety
  Code, is amended by adding Sections 382.0566 and 382.0567 to read as
  follows:
         Sec. 382.0566.  ADVANCED CLEAN ENERGY PROJECT PERMITTING
  PROCEDURE. (a) As authorized by federal law, not later than nine
  months after the executive director declares an application for a
  permit under this chapter for an advanced clean energy project to be
  administratively complete, the executive director shall complete
  its technical review of the application.
         (b)  The commission shall issue a final order issuing or
  denying the permit not later than nine months after the executive
  director declares the application technically complete.  The
  commission may extend the deadline set out in this subsection up to
  three months if it determines that the number of complex pending
  applications for permits under this chapter will prevent the
  commission from meeting the deadline imposed by this subsection
  without creating an extraordinary burden on the resources of the
  commission.
         (c)  The permit process authorized by this section is subject
  to the requirements relating to a contested case hearing under this
  chapter, Chapter 5, Water Code, or Subchapters C-G, Chapter 2001,
  Government Code, as applicable.
         (d)  The commission shall adopt rules to implement this
  section.
         (e)  Not later than September 1 of the years 2010, 2012,
  2014, 2016, and 2018, the commission shall:
               (1)  determine whether any element of the emissions
  profile specified by Section 382.003(1-a)(B) should be increased or
  decreased;
               (2)  determine whether any other regulated pollutant
  should be added to the emissions profile; and
               (3)  adopt rules adjusting the profile if the
  commission determines an adjustment to be appropriate.
         (f)  The factors the commission must consider under
  Subsection (e) in determining whether the emissions profile should
  be adjusted include:
               (1)  the technical and economic feasibility of
  achieving all of the elements of the emissions profile in a
  commercially viable project, as documented by the United States
  Department of Energy;
               (2)  the technical and economic feasibility of projects
  to achieve all of the elements of the emissions profile and still
  use a diverse range of fuels, including lignite; and
               (3)  the adequacy of the incentives provided by this
  section, Section 447.013, Government Code, and Sections 11.31,
  26.045, 182.022, 182.122, 202.0545, and 313.024, Tax Code, to
  continue to attract investment in and federal funding for advanced
  clean energy projects in this state.
         (g)  Any adjustment to the emissions profile that is adopted
  by commission rule under Subsection (e) applies only to an
  application that the executive director has not declared to be
  administratively complete as of the date the rule is adopted.
         (h)  The commission may not consider any technology or level
  of emission reduction to be adequately demonstrated or achievable
  for purposes of a best available control technology analysis or
  lowest achievable emission rate analysis conducted by the
  commission under another provision of this chapter solely because
  the technology is used or the emission reduction is achieved by a
  facility receiving an incentive under a law listed in Subsection
  (f)(3).
         Sec. 382.0567.  PROOF THAT TECHNOLOGY IS COMMERCIALLY
  FEASIBLE NOT REQUIRED.  An applicant for a permit under this chapter
  for a project in connection with which advanced clean energy
  technology, federally qualified clean coal technology, or another
  technology is proposed to be used is not required to prove, as part
  of an analysis of whether the project will use the best available
  control technology or reduce emissions to the lowest achievable
  rate, that the technology proposed to be used has been demonstrated
  to be feasible in a commercial operation.
         SECTION 5.  Section 11.31, Tax Code, is amended by adding
  Subsections (k), (l), and (m) to read as follows:
         (k)  The Texas Commission on Environmental Quality shall
  adopt rules establishing a nonexclusive list of facilities,
  devices, or methods for the control of air, water, or land
  pollution, which must include:
               (1)  coal cleaning or refining facilities;
               (2)  atmospheric or pressurized and bubbling or
  circulating fluidized bed combustion systems and gasification
  fluidized bed combustion combined cycle systems;
               (3)  ultra-supercritical pulverized coal boilers;
               (4)  flue gas recirculation components;
               (5)  syngas purification systems and gas-cleanup
  units;
               (6)  enhanced heat recovery systems;
               (7)  exhaust heat recovery boilers;
               (8)  heat recovery steam generators;
               (9)  superheaters and evaporators;
               (10)  enhanced steam turbine systems;
               (11)  methanation;
               (12)  coal combustion or gasification byproduct and
  coproduct handling, storage, or treatment facilities;
               (13)  biomass cofiring storage, distribution, and
  firing systems;
               (14)  coal cleaning or drying processes, such as coal
  drying/moisture reduction, air jigging, precombustion
  decarbonization, and coal flow balancing technology;
               (15)  oxy-fuel combustion technology, amine or chilled
  ammonia scrubbing, fuel or emission conversion through the use of
  catalysts, enhanced scrubbing technology, modified combustion
  technology such as chemical looping, and cryogenic technology;
               (16)  if the United States Environmental Protection
  Agency or the Texas Commission on Environmental Quality adopts a
  final rule or regulation regulating carbon dioxide as a pollutant,
  property that is used, constructed, acquired, or installed wholly
  or partly to capture carbon dioxide from an anthropogenic source
  that is used in an enhanced recovery project in this state or that
  is geologically sequestered in this state;
               (17)  fuel cells generating electricity using
  hydrocarbons without combustion; and
               (18)  any other equipment designed to prevent, capture,
  abate, or monitor nitrogen oxides, volatile organic compounds,
  particulate matter, mercury, carbon monoxide, or any criteria
  pollutant.
         (l)  The Texas Commission on Environmental Quality by rule
  shall update the list adopted under Subsection (k) at least once
  every three years. An item may be removed from the list if the
  commission finds compelling evidence to support the conclusion that
  the item does not provide pollution control benefits.
         (m)  Notwithstanding the other provisions of this section,
  if the facility, device, or method for the control of air, water, or
  land pollution described in an application for an exemption under
  this section is a facility, device, or method included on the list
  adopted under Subsection (k), the executive director of the Texas
  Commission on Environmental Quality, not later than the 30th day
  after the date of receipt of the information required by
  Subsections (c)(2) and (3) and without regard to whether the
  information required by Subsection (c)(1) has been submitted, shall
  determine that the facility, device, or method described in the
  application is used wholly or partly as a facility, device, or
  method for the control of air, water, or land pollution and shall
  take the actions that are required by Subsection (d) in the event
  such a determination is made.
         SECTION 6.  Section 26.045, Tax Code, is amended to read as
  follows:
         Sec. 26.045.  ROLLBACK RELIEF FOR POLLUTION CONTROL
  REQUIREMENTS. (a) The rollback tax rate for a political
  subdivision of this state is increased by the rate that, if applied
  to the total current value, would impose an amount of taxes equal to
  the amount the political subdivision will spend out of its
  maintenance and operation funds under Section 26.012(16)[, Tax
  Code,] to pay for a facility, device, or method for the control of
  air, water, or land pollution that is necessary to meet the
  requirements of a permit issued by the Texas [Natural Resource
  Conservation] Commission on Environmental Quality.
         (b)  In this section, "facility, device, or method for
  control of air, water, or land pollution" means any land,
  structure, building, installation, excavation, machinery,
  equipment, or device, and any attachment or addition to or
  reconstruction, replacement, or improvement of that property, that
  is used, constructed, acquired, or installed wholly or partly to
  meet or exceed rules or regulations adopted by any environmental
  protection agency of the United States or this state for the
  prevention, monitoring, control, or reduction of air, water, or
  land pollution.
         (c)  To receive an adjustment to the rollback tax rate under
  this section, a political subdivision shall present information to
  the executive director of the Texas [Natural Resource Conservation]
  Commission on Environmental Quality in a permit application or in a
  request for any exemption from a permit that would otherwise be
  required detailing:
               (1)  the anticipated environmental benefits from the
  installation of the facility, device, or method for the control of
  air, water, or land pollution;
               (2)  the estimated cost of the pollution control
  facility, device, or method; and
               (3)  the purpose of the installation of the facility,
  device, or method, and the proportion of the installation that is
  pollution control property.
         (d)  Following submission of the information required by
  Subsection (c), the executive director of the Texas [Natural
  Resource Conservation] Commission on Environmental Quality shall
  determine whether [if] the facility, device, or method is used
  wholly or partly as a facility, device, or method for the control of
  air, water, or land pollution. If the executive director determines
  that the facility, device, or method is used wholly or partly to
  control pollution, the director shall issue a letter to the
  political subdivision stating that determination and the portion of
  the cost of the installation that is pollution control property.
         (e)  The Texas [Natural Resource Conservation] Commission on
  Environmental Quality may charge a political subdivision seeking a
  determination that property is pollution control property an
  additional fee not to exceed its administrative costs for
  processing the information, making the determination, and issuing
  the letter required by this section. The commission may adopt rules
  to implement this section.
         (f)  The Texas Commission on Environmental Quality shall
  adopt rules establishing a nonexclusive list of facilities,
  devices, or methods for the control of air, water, or land
  pollution, which must include:
               (1)  coal cleaning or refining facilities;
               (2)  atmospheric or pressurized and bubbling or
  circulating fluidized bed combustion systems and gasification
  fluidized bed combustion combined cycle systems;
               (3)  ultra-supercritical pulverized coal boilers;
               (4)  flue gas recirculation components;
               (5)  syngas purification systems and gas-cleanup
  units;
               (6)  enhanced heat recovery systems;
               (7)  exhaust heat recovery boilers;
               (8)  heat recovery steam generators;
               (9)  superheaters and evaporators;
               (10)  enhanced steam turbine systems;
               (11)  methanation;
               (12)  coal combustion or gasification byproduct and
  coproduct handling, storage, or treatment facilities;
               (13)  biomass cofiring storage, distribution, and
  firing systems;
               (14)  coal cleaning or drying processes such as coal
  drying/moisture reduction, air jigging, precombustion
  decarbonization, and coal flow balancing technology;
               (15)  oxy-fuel combustion technology, amine or chilled
  ammonia scrubbing, fuel or emission conversion through the use of
  catalysts, enhanced scrubbing technology, modified combustion
  technology such as chemical looping, and cryogenic technology;
               (16)  if the United States Environmental Protection
  Agency or the Texas Commission on Environmental Quality adopts a
  final rule or regulation regulating carbon dioxide as a pollutant,
  property that is used, constructed, acquired, or installed wholly
  or partly to capture carbon dioxide from an anthropogenic source
  that is used in an enhanced recovery project in this state or that
  is geologically sequestered in this state;
               (17)  fuel cells generating electricity using
  hydrocarbons without combustion; and
               (18)  any other equipment designed to prevent, capture,
  abate, or monitor nitrogen oxides, volatile organic compounds,
  particulate matter, mercury, carbon monoxide, or any criteria
  pollutant.
         (g)  The Texas Commission on Environmental Quality by rule
  shall update the list adopted under Subsection (f) at least once
  every three years. An item may be removed from the list if the
  commission finds compelling evidence to support the conclusion that
  the item does not render pollution control benefits.
         (h)  Notwithstanding the other provisions of this section,
  if the facility, device, or method for the control of air, water, or
  land pollution described in a permit application or in a request for
  any exemption from a permit that would otherwise be required is a
  facility, device, or method included on the list adopted under
  Subsection (f), the executive director of the Texas Commission on
  Environmental Quality, not later than the 30th day after the date of
  receipt of the information required by Subsections (c)(2) and (3)
  and without regard to whether the information required by
  Subsection (c)(1) has been submitted, shall determine that the
  facility, device, or method described in the permit application or
  in the request for an exemption from a permit that would otherwise
  be required is used wholly or partly as a facility, device, or
  method for the control of air, water, or land pollution and shall
  take the action that is required by Subsection (d) in the event such
  a determination is made.
         (i)  A political subdivision of the state seeking an
  adjustment in its rollback tax rate under this section shall
  provide to its tax assessor a copy of the letter issued by the
  executive director of the Texas [Natural Resource Conservation]
  Commission on Environmental Quality under Subsection (d). The tax
  assessor shall accept the copy of the letter from the executive
  director as conclusive evidence that the facility, device, or
  method is used wholly or partly as pollution control property and
  shall adjust the rollback tax rate for the political subdivision as
  provided for by Subsection (a).
         SECTION 7.  Section 182.022, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  Notwithstanding any other provision of this chapter, a
  tax under this chapter may not be imposed on gross receipts from the
  sale of electricity generated by an advanced clean energy project,
  as defined by Section 382.003, Health and Safety Code.
         SECTION 8.  Section 182.122, Tax Code, is amended to read as
  follows:
         Sec. 182.122.  ALLOCATION OF TAX.  (a) Revenues collected
  under this chapter are allocated:
               (1)  one-fourth to the foundation school fund; and
               (2)  three-fourths to the general revenue fund.
         (b)  The comptroller shall transfer to the advanced clean
  energy project account the first $30 million of the revenues
  collected under this chapter that are allocated to the general
  revenue fund under Subsection (a)(2) in any state fiscal biennium.
         SECTION 9.  Effective September 1, 2020, Section 182.122,
  Tax Code, is amended to read as follows:
         Sec. 182.122.  ALLOCATION OF TAX. Revenues collected under
  this chapter are allocated:
               (1)  one-fourth to the foundation school fund; and
               (2)  three-fourths to the general revenue fund.
         SECTION 10.  Subchapter B, Chapter 202, Tax Code, is amended
  by adding Section 202.0545 to read as follows:
         Sec. 202.0545.  TAX EXEMPTION FOR ENHANCED RECOVERY PROJECTS
  USING ANTHROPOGENIC CARBON DIOXIDE. (a) Until the United States
  Environmental Protection Agency or the Texas Commission on
  Environmental Quality adopts a final rule or regulation regulating
  carbon dioxide as a pollutant and subject to the limitations
  provided by this section, the producer of oil recovered through an
  enhanced oil recovery project that qualifies under Section 202.054
  for the recovered oil tax rate provided by Section 202.052(b) is
  entitled to an additional 50 percent reduction in that tax rate if
  in the recovery of the oil the enhanced oil recovery project uses
  carbon dioxide that:
               (1)  is captured from an anthropogenic source in this
  state;
               (2)  would otherwise be released into the atmosphere as
  industrial emissions;
               (3)  is measurable at the source of capture; and
               (4)  is sequestered in one or more geological
  formations in this state following the enhanced oil recovery
  process.
         (b)  In the event that a portion of the carbon dioxide used in
  the enhanced oil recovery project is anthropogenic carbon dioxide
  that satisfies the criteria of Subsection (a) and a portion of the
  carbon dioxide used in the project fails to satisfy the criteria of
  Subsection (a) because it is not anthropogenic, the tax reduction
  provided by Subsection (a) shall be reduced to reflect the
  proportion of the carbon dioxide used in the project that satisfies
  the criteria of Subsection (a).
         (c)  To qualify for the tax rate reduction under this
  section, the operator must:
               (1)  apply to the comptroller for the reduction and
  include with the application any information and documentation that
  the comptroller may require; and
               (2)  apply for a certification from:
                     (A)  the Railroad Commission of Texas, if carbon
  dioxide used in the project is to be sequestered in an oil or
  natural gas reservoir;
                     (B)  the Texas Commission on Environmental
  Quality, if carbon dioxide used in the project is to be sequestered
  in a geological formation other than an oil or natural gas
  reservoir; or
                     (C)  both the Railroad Commission of Texas and the
  Texas Commission on Environmental Quality if both Paragraphs (A)
  and (B) apply.
         (d)  An agency to which an operator applies for a
  certification under Subsection (c)(2) may issue the certification
  only if the agency finds that, based on substantial evidence, there
  is a reasonable expectation that:
               (1)  the operator's planned sequestration program will
  ensure that at least 99 percent of the carbon dioxide sequestered as
  required by Subsection (a)(4) will remain sequestered for at least
  1,000 years; and
               (2)  the operator's planned sequestration program will
  include appropriately designed monitoring and verification
  measures that will be employed for a period sufficient to
  demonstrate whether the sequestration program is performing as
  expected.
         (e)  The tax rate reduction does not apply if the operator's
  sequestration program or the operator's monitoring and
  verification measures differ substantially from the planned
  program described by Subsection (d), and the operator shall refund
  the difference between the amount of the tax paid under this section
  and the amount that would have been imposed in the absence of this
  section.
         (f)  The comptroller shall approve the application if the
  operator submits the certification or certifications required by
  Subsection (c)(2) and if the comptroller determines that the oil is
  otherwise eligible under this section.
         (g)  If, before the comptroller approves an application for
  the tax rate reduction under this section, the tax imposed by this
  chapter is paid at the rate provided by Section 202.052(a) or (b) on
  oil that qualifies under this section, the producer or producers of
  the oil are entitled to a credit against taxes imposed by this
  chapter in an amount equal to the difference between the tax paid on
  the oil and the tax due on the oil after the rate reduction under
  this section is applied. The credit is allowed to each producer
  according to the producer's proportionate share in the oil. To
  receive a credit, one or more of the producers of the oil must apply
  to the comptroller for the credit not later than the first
  anniversary of the date the oil is produced.
         (h)  The comptroller, the Railroad Commission of Texas, and
  the Texas Commission on Environmental Quality may adopt rules and
  establish procedures to implement and administer this section.
         SECTION 11.  Section 313.024(b), Tax Code, as effective
  January 1, 2008, is amended to read as follows:
         (b)  To be eligible for a limitation on appraised value under
  this subchapter, the entity must use the property in connection
  with:
               (1)  manufacturing;
               (2)  research and development;
               (3)  a clean coal project, as defined by Section 5.001,
  Water Code;
               (4)  an advanced clean energy [a gasification] project,
  as defined by Section 382.003, Health and Safety Code [for a coal
  and biomass mixture]; or
               (5)  renewable energy electric generation.
         SECTION 12.  Not later than September 1, 2015, the State
  Energy Conservation Office shall issue a report to the legislature
  providing an assessment of whether the advanced clean energy
  program should be extended due to a continued need for incentives to
  ensure that a diverse range of affordable fuels, including lignite,
  can be used in a manner that achieves the lowest emission profile
  that is technically and economically feasible.
         SECTION 13.  The State Energy Conservation Office shall
  adopt rules to establish the advanced clean energy grant and loan
  program under Section 447.013, Government Code, as added by this
  Act, not later than January 1, 2008.  Such rules may allow for the
  recovery of fees and administrative expenses.
         SECTION 14.  Section 382.0518(c-1), Health and Safety Code,
  as added by this Act, applies only to an application for a permit
  under Section 382.0518, Health and Safety Code, that is received by
  the Texas Commission on Environmental Quality on or after January
  1, 2008.
         SECTION 15.  Not later than January 1, 2008, the Texas
  Commission on Environmental Quality shall adopt rules required
  under Section 382.0566, Health and Safety Code, and Section
  11.31(k), Tax Code, as added by this Act, and Section 26.045(f), Tax
  Code, as amended by this Act.
         SECTION 16.  Section 447.013(j), Government Code, as added
  by 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 clean energy projects is approved by
  the voters. If that amendment is not approved by the voters,
  Section 447.013(j), Government Code, as added by this Act, has no
  effect.
         SECTION 17.  Except as otherwise provided by this Act, this
  Act takes effect immediately if it receives a vote of two-thirds of
  all the members elected to each house, as provided by Section 39,
  Article III, Texas Constitution. If this Act does not receive the
  vote necessary for immediate effect, this Act takes effect
  September 1, 2007.
 
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