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