BILL ANALYSIS |
C.S.H.B. 1736 |
By: Anchia |
Ways & Means |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
There are currently projects throughout the state that help control pollution by capturing methane gas that is naturally emitted by landfills. In addition to preventing the release of the harmful gas into the atmosphere, the practice removes a fire hazard and is reported to extend the life of a landfill by compressing its solid waste. Once the methane is captured, these projects convert the methane into a more environmentally friendly form of fuel.
Interested parties assert that despite their environmental benefit, these projects present economic challenges due to the heavy capital investment required and that some businesses have had to pull out of these projects altogether due to this economic strain, resulting in a relatively small number of projects of this kind in Texas. Many other states have addressed these challenges by granting property tax exemptions for methane capture and conversion projects. Although current law exempts property used for pollution control from property taxes, no laws have been enacted to address this specific situation in Texas. C.S.H.B. 1736 seeks to address some of the economic challenges facing facilities that convert landfill-generated methane into renewable natural gas.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 1736 amends the Tax Code to add a temporary provision, set to expire December 31, 2015, to entitle a person to a property tax exemption of the real and personal property the person owns that is located on or in close proximity to a landfill and is used, on January 1, 2014, to collect gas generated by the landfill, compress and transport the gas, process the gas so that it may be delivered into a natural gas pipeline or used as a transportation fuel in methane-powered on-road or off-road vehicles or equipment, and deliver the gas into a natural gas pipeline or to a methane fueling station. The bill establishes that such property is considered to be property used as a facility, device, or method for the control of air, water, or land pollution.
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EFFECTIVE DATE
January 1, 2014.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 1736 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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