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A JOINT RESOLUTION
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proposing constitutional amendments authorizing the issuance of |
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general obligation bonds to provide and guarantee loans to |
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encourage the use of carbon-free hydrogen energy and for clean |
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energy projects. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article III, Texas Constitution, is amended by |
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adding Section 49-p to read as follows: |
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Sec. 49-p. (a) To provide and guarantee loans to encourage |
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the use of carbon-free hydrogen energy in this state, the |
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legislature by general law may authorize the Texas Public Finance |
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Authority or its successor to issue general obligation bonds of the |
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State of Texas in an amount not to exceed $250 million and to enter |
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into related bond enhancement agreements. The proceeds from the |
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sale of the bonds may be used only to make and guarantee loans to |
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business entities for projects that: |
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(1) expand the use of carbon-free hydrogen energy in |
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this state; or |
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(2) relate to the manufacture, storage, distribution, |
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or sale of carbon-free hydrogen energy in this state. |
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(b) For purposes of this section, hydrogen is considered to |
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be carbon-free if: |
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(1) any carbon resulting from the production of the |
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hydrogen is captured during production and: |
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(A) permanently geologically sequestered; or |
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(B) used in the production of other carbon-based |
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products at a rate that exceeds 90 percent of the input; and |
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(2) any carbon resulting from the generation of any |
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electricity used in the production of the hydrogen is captured and: |
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(A) permanently geologically sequestered; or |
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(B) used in the production of other carbon-based |
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products at a rate that exceeds 90 percent of the input. |
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(c) The bonds authorized under this section constitute a |
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general obligation of the state. While any of the bonds or interest |
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on the bonds is outstanding and unpaid, there is appropriated out of |
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the first money coming into the treasury in each fiscal year not |
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otherwise appropriated by this constitution an amount sufficient to |
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pay the principal of and interest on the bonds that mature or become |
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due during the fiscal year, including an amount sufficient to make |
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payments under a related bond enhancement agreement. |
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SECTION 2. Article III, Texas Constitution, is amended by |
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adding Section 49-q to read as follows: |
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Sec. 49-q. (a) To provide and guarantee loans to encourage |
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advanced clean energy projects in this state, the legislature by |
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general law may authorize the Texas Public Finance Authority or its |
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successor to issue general obligation bonds of the State of Texas in |
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an amount not to exceed $250 million and to enter into related bond |
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enhancement agreements. The proceeds from the sale of the bonds may |
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be used only to make and guarantee loans to business entities for |
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advanced clean energy projects. |
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(b) For purposes of this section, "advanced clean energy |
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project" means a project: |
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(1) for which an application for a permit under |
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Chapter 382, Health and Safety Code, is received by the Texas |
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Commission on Environmental Quality on or after September 1, 2008, |
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and before September 1, 2020; |
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(2) that involves the use of coal, biomass, petroleum |
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coke, or solid waste in the generation of electricity, process |
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steam, or industrial products, including gasification and the |
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creation of liquid fuels, hydrogen for fuel cells, and other |
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coproducts; and |
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(3) that: |
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(A) is capable of achieving: |
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(i) a 99 percent reduction of sulfur |
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dioxide emissions; |
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(ii) a 95 percent reduction of mercury |
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emissions; and |
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(iii) an emission rate for oxides of |
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nitrogen of 0.05 pounds per million Btu; and |
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(B) renders carbon dioxide capable of capture, |
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sequestration, or abatement. |
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(c) The bonds authorized under this section constitute a |
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general obligation of the state. While any of the bonds or interest |
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on the bonds is outstanding and unpaid, there is appropriated out of |
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the first money coming into the treasury in each fiscal year not |
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otherwise appropriated by this constitution an amount sufficient to |
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pay the principal of and interest on the bonds that mature or become |
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due during the fiscal year, including an amount sufficient to make |
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payments under a related bond enhancement agreement. |
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SECTION 3. (a) The constitutional amendment proposed by |
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Section 1 of this resolution shall be submitted to the voters at an |
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election to be held November 6, 2007. The ballot shall be printed |
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to permit voting for or against the proposition: "The |
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constitutional amendment authorizing the issuance of state general |
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obligation bonds to stimulate economic development and reduce |
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greenhouse gases by providing and guaranteeing loans to encourage |
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the use of carbon-free hydrogen energy." |
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(b) The constitutional amendment proposed by Section 2 of |
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this resolution shall be submitted to the voters at an election to |
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be held November 6, 2007. The ballot shall be printed to permit |
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voting for or against the proposition: "The constitutional |
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amendment authorizing the issuance of general obligation bonds to |
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provide and guarantee loans to encourage clean energy projects." |
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(c) The resolutions described by Subsections (a) and (b) of |
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this section shall be submitted separately to the voters at the |
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election. The failure of either resolution to be approved by the |
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voters at the election does not affect the approval of the other |
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resolution. |