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A BILL TO BE ENTITLED
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AN ACT
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relating to the reuse and recycling of wastewater in oil and gas |
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related activities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.318, Subsection (a), Tax Code, is |
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amended to read as follows: |
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(a) The following items are exempted from the taxes imposed |
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by this chapter if sold, leased, or rented, or stored, used, or |
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consumed by a manufacturer: |
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(1) tangible personal property that will become an |
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ingredient or component part of tangible personal property |
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manufactured, processed, or fabricated for ultimate sale; |
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(2) tangible personal property directly used or |
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consumed in or during the actual manufacturing, processing, or |
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fabrication of tangible personal property for ultimate sale if the |
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use or consumption of the property is necessary or essential to the |
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manufacturing, processing, or fabrication operation and directly |
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makes or causes a chemical or physical change to: |
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(A) the product being manufactured, processed, |
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or fabricated for ultimate sale; or |
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(B) any intermediate or preliminary product that |
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will become an ingredient or component part of the product being |
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manufactured, processed, or fabricated for ultimate sale; |
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(3) services performed directly on the product being |
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manufactured prior to its distribution for sale and for the purpose |
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of making the product more marketable; |
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(4) actuators, steam production equipment and its |
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fuel, in-process flow through tanks, cooling towers, generators, |
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heat exchangers, transformers and the switches, breakers, |
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capacitor banks, regulators, relays, reclosers, fuses, |
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interruptors, reactors, arrestors, resistors, insulators, |
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instrument transformers, and telemetry units that are related to |
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the transformers, electronic control room equipment, computerized |
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control units, pumps, compressors, and hydraulic units, that are |
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used to power, supply, support, or control equipment that qualifies |
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for exemption under Subdivision (2) or (5) or to generate |
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electricity, chilled water, or steam for ultimate sale; |
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transformers located at an electric generating facility that |
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increase the voltage of electricity generated for ultimate sale, |
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the electrical cable that carries the electricity from the electric |
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generating equipment to the step-up transformers, and the switches, |
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breakers, capacitor banks, regulators, relays, reclosers, fuses, |
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interruptors, reactors, arrestors, resistors, insulators, |
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instrument transformers, and telemetry units that are related to |
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the step-up transformers; and transformers that decrease the |
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voltage of electricity generated for ultimate sale and the |
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switches, breakers, capacitor banks, regulators, relays, |
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reclosers, fuses, interruptors, reactors, arrestors, resistors, |
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insulators, instrument transformers, and telemetry units that are |
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related to the step-down transformers; |
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(5) tangible personal property used or consumed in the |
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actual manufacturing, processing, or fabrication of tangible |
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personal property for ultimate sale if the use or consumption of the |
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property is necessary and essential to a pollution control process; |
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(6) lubricants, chemicals, chemical compounds, gases, |
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or liquids that are used or consumed during the actual |
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manufacturing, processing, or fabrication of tangible personal |
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property for ultimate sale if their use or consumption is necessary |
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and essential to prevent the decline, failure, lapse, or |
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deterioration of equipment exempted by this section; |
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(7) gases used on the premises of a manufacturing |
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plant to prevent contamination of raw material or product, or to |
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prevent a fire, explosion, or other hazardous or environmentally |
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damaging situation at any stage in the manufacturing process or in |
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loading or storage of the product or raw material on premises; |
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(8) tangible personal property used or consumed during |
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the actual manufacturing, processing, or fabrication of tangible |
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personal property for ultimate sale if the use or consumption of the |
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property is necessary and essential to a quality control process |
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that tests tangible personal property that is being manufactured, |
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processed, or fabricated for ultimate sale; |
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(9) safety apparel or work clothing that is used |
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during the actual manufacturing, processing, or fabrication of |
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tangible personal property for ultimate sale if: |
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(A) the manufacturing process would not be |
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possible without the use of the apparel or clothing; and |
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(B) the apparel or clothing is not resold to the |
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employee; |
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(10) tangible personal property used or consumed in |
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the actual manufacturing, processing, or fabrication of tangible |
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personal property for ultimate sale if the use or consumption of the |
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property is necessary and essential to comply with federal, state, |
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or local laws or rules that establish requirements related to |
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public health; and |
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(11) tangible personal property specifically |
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installed to: |
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(A) reduce water use and wastewater flow volumes |
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from the manufacturing, processing, fabrication, or repair |
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operation; |
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(B) reuse and recycle wastewater streams |
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generated within the manufacturing, processing, fabrication, or |
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repair operation or used for oil and gas activities; or |
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(C) treat wastewater from another industrial or |
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municipal source for the purpose of replacing existing freshwater |
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sources in the manufacturing, processing, fabrication, or repair |
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operation. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |