By: Hancock H.J.R. No. 123
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment authorizing the issuance of
  general obligation bonds to provide and guarantee loans to
  encourage advanced 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-q to read as follows:
         Sec. 49-q.  (a)  For purposes of this section:
               (1)  "Advanced clean energy project" means a project
  for which an application for a permit to emit air contaminants is
  received by the Texas Commission on Environmental Quality or its
  successor after January 1, 2008, and before January 1, 2020, and
  that:
                     (A)  involves the use of coal, biomass, petroleum
  coke, solid waste, or fuel cells using hydrogen derived from such
  fuels, in the generation of electricity, or the creation of liquid
  fuels outside of the existing fuel production infrastructure while
  co-generating electricity;
                     (B)  is capable of achieving on an annual basis a
  99 percent reduction of sulfur dioxide emissions and a 95 percent
  reduction of mercury emissions and an annual average emission rate
  for nitrogen oxides of 0.05 pounds or less per million British
  thermal units; and
                     (C)  captures not less than 50 percent of any
  carbon dioxide produced by the combustion of fuel and sequesters
  that captured carbon dioxide by geologic storage or other means.
               (2)  "Geologic storage" means the underground storage
  of carbon dioxide in a suitable geologic formation, including
  storage that is accomplished in conjunction with an enhanced oil
  recovery project.
         (b)  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 $300 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 in this state.
         (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.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 3, 2009.
  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 advanced clean energy projects."