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A BILL TO BE ENTITLED
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AN ACT
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relating to advanced clean energy projects and certain other |
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projects that reduce or eliminate emissions of carbon dioxide or |
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other pollutants. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 382.003(1-a), Health and Safety Code, is |
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amended to read as follows: |
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(1-a) "Advanced clean energy project" means a project |
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[for which an application for a permit or for an authorization to |
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use a standard permit under this chapter is received by the |
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commission on or after January 1, 2008, and before January 1, 2020, |
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and] that: |
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(A) involves the use of coal, biomass, petroleum |
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coke, solid waste, natural gas, or fuel cells using hydrogen |
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derived from such fuels, in the generation of electricity, or the |
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creation of liquid fuels outside of the existing fuel production |
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infrastructure while co-generating electricity, whether the |
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project is implemented in connection with the construction of a new |
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facility or in connection with the modification of an existing |
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facility and whether the project involves the entire emissions |
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stream from the facility or only a portion of the emissions stream |
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from the facility; |
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(B) with regard to the portion of the emissions |
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stream from the facility that is associated with the project, is |
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capable of achieving: |
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(i) on an annual basis: |
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(a) a 99 percent or greater reduction |
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of sulfur dioxide emissions; |
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(b) if the project is designed for the |
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use of feedstock, substantially all of which is subbituminous coal, |
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an emission rate of 0.04 pounds or less of sulfur dioxide per |
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million British thermal units as determined by a 30-day average; or |
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(c) if the project is designed for the |
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use of one or more combustion turbines that burn natural gas, a |
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sulfur dioxide emission rate that meets best available control |
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technology requirements as determined by the commission; |
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(ii) on an annual basis: |
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(a) a 95 percent or greater reduction |
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of mercury emissions; or |
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(b) if the project is designed for the |
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use of one or more combustion turbines that burn natural gas, a |
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mercury emission rate that complies with applicable federal |
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requirements; |
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(iii) an annual average emission rate for |
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nitrogen oxides of: |
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(a) 0.05 pounds or less per million |
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British thermal units; |
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(b) if the project uses gasification |
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technology, 0.034 pounds or less per million British thermal units; |
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or |
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(c) if the project is designed for the |
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use of one or more combustion turbines that burn natural gas, two |
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parts per million by volume or an emission rate that meets best |
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available control technology requirements as determined by the |
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commission; and |
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(iv) an annual average emission rate for |
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filterable particulate matter of 0.015 pounds or less per million |
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British thermal units; and |
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(C) captures not less than 75 [50] percent of the |
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carbon dioxide in the portion of the emissions stream from the |
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facility that is associated with the project and utilizes or |
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sequesters, in whole or in part, that captured carbon dioxide by |
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geologic storage or other means. |
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SECTION 2. Section 391.002(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) Projects that may be considered for a grant under the |
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program include: |
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(1) advanced clean energy projects, as defined by |
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Section 382.003; |
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(2) new technology projects that reduce emissions of |
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regulated pollutants from stationary sources; |
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(3) new technology projects that reduce emissions from |
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upstream and midstream oil and gas production, completions, |
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gathering, storage, processing, and transmission activities |
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through: |
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(A) the replacement, repower, or retrofit of |
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stationary compressor engines; |
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(B) the installation of systems to reduce or |
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eliminate the loss of gas, flaring of gas, or burning of gas using |
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other combustion control devices; or |
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(C) the installation of systems that reduce |
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flaring emissions and other site emissions; [and] |
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(4) electricity storage projects related to renewable |
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energy, including projects to store electricity produced from wind |
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and solar generation that provide efficient means of making the |
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stored energy available during periods of peak energy use; |
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(5) projects that utilize technology to capture, use, |
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reuse, store, gather, transport, or sequester carbon dioxide |
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emissions from a new or existing cement plant, petrochemical plant, |
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or electric generation facility, including a facility powered by |
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coal, petroleum coke, natural gas, hydrogen, or ammonia, for the |
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principal purpose of preventing carbon dioxide from entering or |
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remaining in the atmosphere; and |
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(6) projects that involve the use of renewable energy |
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to produce hydrogen fuel for use in transportation, agricultural, |
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or industrial processes and result in a reduction of pollutants |
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entering the atmosphere. |
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SECTION 3. Section 151.334, Tax Code, is amended to read as |
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follows: |
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Sec. 151.334. COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED |
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IN CONNECTION WITH CERTAIN CLEAN ENERGY PROJECTS OR BY CARBON |
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CAPTURE FACILITIES [SEQUESTRATION OF CARBON DIOXIDE]. Components |
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of tangible personal property used in connection with an advanced |
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clean energy project, as defined by Section 382.003, Health and |
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Safety Code, or a clean energy project, as defined by Section |
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120.001, Natural Resources Code, or purchased and installed by a |
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carbon capture facility are exempted from the taxes imposed by this |
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chapter if[: |
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[(1)] the components are installed to capture carbon |
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dioxide from the atmosphere or an anthropogenic emission source, |
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transport or inject carbon dioxide from the atmosphere or an |
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anthropogenic emission [such a] source, or prepare carbon dioxide |
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from the atmosphere or an anthropogenic emission [such a] source |
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for transportation, utilization, or injection[;] and: |
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(1) [(2)] the carbon dioxide is sequestered in this |
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state[: |
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[(A)] as part of an enhanced oil recovery project |
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that qualifies for a tax rate reduction under Section 202.0545, as |
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provided by Subsection (c) of that section; [or] |
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(2) the components are used in connection with the |
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capture, use, reuse, storage, transportation, or injection of |
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carbon dioxide emissions to prevent carbon dioxide from entering or |
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remaining in the atmosphere; or |
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(3) the components are used in connection with the |
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sequestration of carbon dioxide emissions [(B)] in a manner and |
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under conditions that create a reasonable expectation that at least |
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99 percent of the carbon dioxide will remain sequestered from the |
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atmosphere for at least 1,000 years. |
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SECTION 4. The change in law made by this Act to Section |
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151.334, Tax Code, does not affect tax liability accruing before |
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the effective date of this Act. That liability continues in effect |
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as if this Act had not been enacted, and the former law is continued |
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in effect for the collection of taxes due and for civil and criminal |
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enforcement of the liability for those taxes. |
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SECTION 5. This Act takes effect September 1, 2023. |