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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of incentives by this state for the |
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implementation of certain projects to capture and sequester in |
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geological formations carbon dioxide that would otherwise be |
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emitted into the atmosphere. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter G, Chapter 490, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER G. CLEAN COAL PROJECTS AND CLEAN ENERGY PROJECTS |
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SECTION 2. Section 490.301, Government Code, is amended to |
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read as follows: |
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Sec. 490.301. DEFINITIONS [DEFINITION]. In this |
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subchapter: |
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(1) "Clean [, "clean] coal project" has the meaning |
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assigned by Section 5.001, Water Code. |
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(2) "Clean energy project" has the meaning assigned by |
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Section 120.001, Natural Resources Code. |
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SECTION 3. The heading to Section 490.304, Government Code, |
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is amended to read as follows: |
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Sec. 490.304. CONTRACTING AUTHORITY RELATED TO |
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IMPLEMENTING CLEAN COAL PROJECT; FRANCHISE TAX CREDIT. |
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SECTION 4. Subchapter G, Chapter 490, Government Code, is |
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amended by adding Section 490.305 to read as follows: |
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Sec. 490.305. CONTRACTING AUTHORITY RELATED TO |
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IMPLEMENTING CLEAN ENERGY PROJECT; FRANCHISE TAX CREDIT. (a) The |
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governor may contract for the state with an organization for a |
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purpose related to implementing a clean energy project. |
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(b) The governor and the comptroller jointly may adopt |
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provisions for issuing to the entity with which the governor |
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contracts under Subsection (a) franchise tax credits to promote |
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research and development activities related to a clean energy |
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project in this state. The governor and comptroller must act under |
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this subsection not later than December 31, 2010. The total amount |
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of franchise tax credits that may be issued to the entity may not |
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exceed $100 million. A franchise tax credit may be issued, in |
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accordance with the governor's and comptroller's provisions, to the |
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entity, irrespective of whether the entity owes or pays a franchise |
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tax under Chapter 171, Tax Code. The entity may assign the tax |
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credits to a taxable entity, as defined by Section 171.0002, Tax |
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Code, in accordance with the governor's and comptroller's |
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provisions. |
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SECTION 5. Subtitle D, Title 3, Natural Resources Code, is |
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amended by adding Chapter 120 to read as follows: |
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CHAPTER 120. MONITORING OF CARBON DIOXIDE CAPTURED BY CLEAN ENERGY |
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PROJECT |
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Sec. 120.001. DEFINITION. In this chapter, "clean energy |
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project" means a project to construct a coal-fired electric |
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generating facility that will: |
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(1) have a capacity of at least 200 megawatts; |
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(2) use integrated gasification combined cycle |
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technology; and |
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(3) be capable of capturing and permanently |
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sequestering in a geologic formation at least 60 percent of the |
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carbon dioxide resulting from the generation of electricity by the |
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facility. |
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Sec. 120.002. 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 generated by the first three clean |
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energy projects with regard to which the governor enters into a |
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contract under Section 490.305, Government Code. |
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SECTION 6. Section 202.0545, Tax Code, is amended by adding |
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Subsection (i) to read as follows: |
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(i) Notwithstanding Subsections (a) and (d)(1), the |
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producer of oil recovered through an enhanced oil recovery project |
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that uses carbon dioxide that is generated by a clean energy project |
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as defined by Section 120.001, Natural Resources Code, is entitled |
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to a tax rate reduction under this section until the later of the |
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30th anniversary of the date that the producer first claims a tax |
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rate reduction under this section on a return or the effective date |
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of a final rule adopted by the United States Environmental |
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Protection Agency regulating carbon dioxide as a pollutant if: |
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(1) the agency to which the operator applies for a |
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certification under Subsection (c)(2) finds that, based on |
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substantial evidence, there is a reasonable expectation that the |
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operator's planned sequestration program will ensure that at least |
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60 percent of the carbon dioxide sequestered as required by |
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Subsection (a)(4) will remain sequestered for at least 500 years; |
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and |
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(2) the producer otherwise qualifies for the tax rate |
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reduction. |
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SECTION 7. This Act takes effect September 1, 2009. |