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A BILL TO BE ENTITLED
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AN ACT
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relating to the treatment for ad valorem tax purposes of pollution |
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control property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.31, Tax Code, is amended by amending |
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Subsections (k) and (m) and adding Subsections (m-1) and (m-2) to |
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read as follows: |
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(k) The Texas Commission on Environmental Quality shall |
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adopt rules establishing a nonexclusive list of facilities, |
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devices, or methods for the control of air, water, or land |
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pollution, which must include: |
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(1) coal cleaning or refining facilities; |
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(2) atmospheric or pressurized and bubbling or |
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circulating fluidized bed combustion systems and gasification |
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fluidized bed combustion combined cycle systems; |
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(3) ultra-supercritical pulverized coal boilers; |
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(4) flue gas recirculation components; |
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(5) syngas purification systems and gas-cleanup |
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units; |
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(6) enhanced heat recovery systems; |
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(7) exhaust heat recovery boilers; |
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(8) heat recovery steam generators; |
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(9) superheaters and evaporators; |
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(10) enhanced steam turbine systems; |
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(11) methanation; |
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(12) coal combustion or gasification byproduct and |
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coproduct handling, storage, or treatment facilities; |
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(13) biomass cofiring storage, distribution, and |
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firing systems; |
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(14) coal cleaning or drying processes, such as coal |
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drying/moisture reduction, air jigging, precombustion |
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decarbonization, and coal flow balancing technology; |
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(15) oxy-fuel combustion technology, amine or chilled |
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ammonia scrubbing, fuel or emission conversion through the use of |
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catalysts, enhanced scrubbing technology, modified combustion |
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technology such as chemical looping, and cryogenic technology; |
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(16) so long as [if] the United States Environmental |
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Protection Agency regulates [adopts a final rule or regulation
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regulating] carbon dioxide as a pollutant or if any other |
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environmental protection agency of the United States, this state, |
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or a political subdivision of this state adopts a final rule or |
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regulation regulating carbon dioxide for that purpose, property |
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that is used, constructed, acquired, or installed wholly or partly |
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to capture carbon dioxide from an anthropogenic source in this |
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state that is geologically sequestered in this state; |
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(17) fuel cells generating electricity using hydrogen |
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derived from coal, biomass, petroleum coke, or solid waste; and |
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(18) any other equipment designed to prevent, capture, |
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abate, or monitor nitrogen oxides, volatile organic compounds, |
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particulate matter, mercury, carbon monoxide, or any criteria |
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pollutant. |
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(m) Notwithstanding the other provisions of this section, |
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if the executive director of the Texas Commission on Environmental |
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Quality confirms that the facility, device, or method for the |
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control of air, water, or land pollution described in an |
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application for an exemption under this section is a facility, |
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device, or method included on the list adopted under Subsection |
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(k), the executive director [of the Texas Commission on
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Environmental Quality], not later than the 30th day after the date |
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of receipt of the information required by Subsections (c)(2) and |
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(3) and without regard to whether the information required by |
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Subsection (c)(1) has been submitted, shall determine that the |
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facility, device, or method described in the application is used |
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wholly or partly as a facility, device, or method for the control of |
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air, water, or land pollution and shall take the actions that are |
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required by Subsection (d) in the event such a determination is |
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made. |
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(m-1) Notwithstanding Subsections (g-1) and (m), if the |
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executive director of the Texas Commission on Environmental Quality |
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confirms that the facility, device, or method for the control of |
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air, water, or land pollution described in an application for an |
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exemption under this section is a facility, device, or method |
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described by Subsection (k)(16) and is part of an advanced clean |
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energy project as defined by Section 382.003, Health and Safety |
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Code, and determines that an established market for the sale of |
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carbon dioxide captured from an anthropogenic source for use in |
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enhanced oil recovery does not exist in the county in which the |
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project is located, the executive director shall determine that the |
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facility, device, or method described in the application is used |
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wholly as a facility, device, or method for the control of air, |
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water, or land pollution and shall take the actions that are |
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required by Subsection (d) in the event such a determination is |
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made. |
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(m-2) A determination by the executive director of the Texas |
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Commission on Environmental Quality under Subsection (d) that a |
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facility, device, or method is used wholly or partly as a facility, |
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device, or method for the control of air, water, or land pollution |
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or a determination by the executive director of the commission |
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under Subsection (m) that a facility, device, or method described |
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in an application is used wholly or partly for that purpose because |
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the executive director has confirmed that the facility, device, or |
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method is included on the list adopted under Subsection (k) does not |
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limit the authority of the chief appraiser under Chapter 23 to: |
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(1) evaluate whether the facility, device, or method |
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also facilitates an increase in the production of goods at the |
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facility at which the facility, device, or method is installed or |
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the sale of a marketable product at a profit in the ordinary course |
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of business of the facility; and |
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(2) take any resulting income into account if the |
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chief appraiser uses the income method of appraisal to determine |
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the market value of the facility. |
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SECTION 2. Sections 11.31(k) and (m), Tax Code, as amended |
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by this Act, and Section 11.31(m-2), Tax Code, as added by this Act, |
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are intended to clarify rather than change existing law. |
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SECTION 3. Section 11.31(m-1), Tax Code, as added by this |
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Act, applies only to ad valorem taxes imposed for a tax year |
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beginning on or after January 1, 2016. |
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SECTION 4. (a) Except as provided by Subsection (b) of this |
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section: |
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(1) this Act takes effect immediately if it receives a |
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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; and |
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(2) if this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2015. |
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(b) Section 11.31(m-1), Tax Code, as added by this Act, |
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takes effect January 1, 2016. |