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A BILL TO BE ENTITLED
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AN ACT
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relating to the oil production tax rate reduction for oil recovered |
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through certain enhanced oil recovery projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 202.0545(a), Tax Code, is amended to |
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read as follows: |
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(a) Subject to the limitations provided by this section, |
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until the later of the 30th [seventh] anniversary of the date that |
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the comptroller first approves an application for a tax rate |
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reduction under this section or the effective date of a final rule |
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adopted by the United States Environmental Protection Agency |
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regulating carbon dioxide as a pollutant, the producer of oil |
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recovered through an enhanced oil recovery project that qualifies |
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under Section 202.054 for the recovered oil tax rate provided by |
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Section 202.052(b) is entitled to an additional 50 percent |
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reduction in that tax rate if in the recovery of the oil the |
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enhanced oil recovery project uses carbon dioxide that: |
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(1) is captured from an anthropogenic source in this |
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state; |
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(2) would otherwise be released into the atmosphere as |
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industrial emissions; |
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(3) is measurable at the source of capture; and |
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(4) is sequestered in one or more geological |
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formations in this state following the enhanced oil recovery |
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process. |
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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, 2009. |