80R18291 ATP-F

By: Chisum, Darby, Hardcastle H.J.R. No. 93

A JOINT RESOLUTION

proposing constitutional amendments authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage the use of carbon-free hydrogen energy and for clean energy projects.

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

SECTION 1. Article III, Texas Constitution, is amended by adding Section 49-p to read as follows:

Sec. 49-p. (a) To provide and guarantee loans to encourage the use of carbon-free hydrogen energy in this state, the legislature by general law may authorize the Texas Public Finance Authority or its successor to issue general obligation bonds of the State of Texas in an amount not to exceed $250 million and to enter into related bond enhancement agreements. The proceeds from the sale of the bonds may be used only 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 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.

(c) The bonds authorized under this section constitute a general obligation of the state. While any of the bonds or interest on the bonds is outstanding and unpaid, there is appropriated out of the first money coming into the treasury in each fiscal year not otherwise appropriated by this constitution an amount sufficient to pay the principal of and interest on the bonds that mature or become due during the fiscal year, including an amount sufficient to make payments under a related bond enhancement agreement.

SECTION 2. Article III, Texas Constitution, is amended by adding Section 49-q to read as follows:

Sec. 49-q. (a) To provide and guarantee loans to encourage advanced clean energy projects in this state, the legislature by general law may authorize the Texas Public Finance Authority or its successor to issue general obligation bonds of the State of Texas in an amount not to exceed $250 million and to enter into related credit enhancement agreements. The proceeds from the sale of the bonds may be used only to make and guarantee loans to business entities for advanced clean energy projects.

(b) For purposes of this section, "advanced clean energy project" means a project that:

(1) involves the use of coal, biomass, petroleum coke, or solid waste in the generation of electricity or the creation of liquid fuels outside of existing fuel production infrastructure while cogenerating electricity;

(2) is capable of achieving on an annual basis:

(A) a 99 percent reduction of sulfur dioxide emissions;

(B) a 95 percent reduction of mercury emissions; and

(C) an emission rate for oxides of nitrogen of 0.05 pounds per million Btu; and

(3) renders carbon dioxide capable of capture, sequestration, or abatement.

(c) The bonds authorized under this section constitute a general obligation of the state. While any of the bonds or interest on the bonds is outstanding and unpaid, there is appropriated out of the first money coming into the treasury in each fiscal year not otherwise appropriated by this constitution an amount sufficient to pay the principal of and interest on the bonds that mature or become due during the fiscal year, including an amount sufficient to make payments under a related credit enhancement agreement.

SECTION 3. (a) The constitutional amendment proposed by Section 1 of this resolution shall be submitted to the voters at an election to be held November 6, 2007. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the issuance of state general obligation bonds to stimulate economic development and reduce greenhouse gases by providing and guaranteeing loans to encourage the use of carbon-free hydrogen energy."

(b) The constitutional amendment proposed by Section 2 of this resolution shall be submitted to the voters at an election to be held November 6, 2007. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the issuance of general obligation bonds to provide and guarantee loans to encourage clean energy projects."

(c) The propositions described by Subsections (a) and (b) of this section shall be submitted separately to the voters at the election. The failure of either proposition to be approved by the voters at the election does not affect the approval of the other proposition.