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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a strategic reserve of gas and |
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crude oil and a severance tax credit for delivering gas and oil to |
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the reserve. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 81, Natural Resources Code, is amended |
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by adding Subchapter G to read as follows: |
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SUBCHAPTER G. STRATEGIC GAS AND CRUDE OIL RESERVE |
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Sec. 81.171. DEFINITIONS. In this subchapter: |
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(1) "Program" means the strategic gas and crude oil |
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reserve program established under this subchapter. |
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(2) "Reserve" means the strategic gas and crude oil |
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reserve maintained under this subchapter. |
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Sec. 81.172. PROGRAM ESTABLISHMENT; POWERS. (a) The |
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commission shall establish a program for acquiring and maintaining |
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a strategic gas and crude oil reserve for the distribution of gas |
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and crude oil in this state. |
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(b) The commission may purchase, lease, or sell property, |
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including gas or crude oil, or take any other action reasonably |
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necessary to establish the program required by Subsection (a). |
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(c) The commission may accept gifts, grants, and donations, |
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including gas or crude oil, to implement the program. |
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Sec. 81.173. GUIDELINE FOR PROGRAM ESTABLISHMENT AND |
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OPERATION. The program must be established and operated in a manner |
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that avoids unnecessary impacts on the gas and oil industries when |
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acquiring or distributing the gas or crude oil and minimizes the |
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cost of establishing and operating the program. |
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Sec. 81.174. RULES. (a) The Public Utility Commission of |
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Texas shall adopt rules governing the conditions under which gas or |
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crude oil may be distributed from the reserve. |
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(b) The commission may adopt rules to implement this |
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subchapter, other than the rules required by Subsection (a). |
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SECTION 2. Subchapter E, Chapter 201, Tax Code, is amended |
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by adding Section 201.2025 to read as follows: |
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Sec. 201.2025. TAX CREDIT FOR IN-KIND DELIVERY OF GAS. (a) |
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The person responsible for the payment of the tax imposed by this |
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chapter is entitled to a credit against the tax in the amount and |
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under the conditions provided by this section. |
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(b) The amount of the credit is equal to the market value of |
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gas delivered, including transportation, without charge to and |
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accepted by this state for the purpose of strategic energy storage. |
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(c) The credit may not be applied against any portion of the |
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tax that is required by the state constitution to be deposited to |
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the credit of the foundation school fund or transferred to the state |
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highway fund. |
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(d) A taxpayer may carry any unused credit forward until the |
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credit is used. |
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(e) The comptroller may adopt rules to implement this |
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section. |
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SECTION 3. Subchapter D, Chapter 202, Tax Code, is amended |
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by adding Section 202.1515 to read as follows: |
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Sec. 202.1515. TAX CREDIT FOR IN-KIND DELIVERY OF OIL. (a) |
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The person responsible for the payment of the tax imposed by this |
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chapter is entitled to a credit against the tax in the amount and |
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under the conditions provided by this section. |
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(b) The amount of the credit is equal to the market value of |
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oil delivered, including transportation, without charge to and |
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accepted by this state for the purpose of strategic energy storage. |
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(c) The credit may not be applied against any portion of the |
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tax that is required by the state constitution to be deposited to |
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the credit of the foundation school fund or transferred to the state |
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highway fund. |
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(d) A taxpayer may carry any unused credit forward until the |
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credit is used. |
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(e) The comptroller may adopt rules to implement this |
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section. |
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SECTION 4. As soon as practicable after the strategic gas |
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and crude oil reserve is established under Subchapter G, Chapter |
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81, Natural Resources Code, as added by this Act, the Public Utility |
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Commission of Texas shall adopt the rules required by Section |
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81.174(a), Natural Resources Code, as added by this Act. |
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SECTION 5. The change in law made by this Act does not |
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affect tax liability accruing before the effective date of this |
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Act. That liability continues in effect as if this Act had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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SECTION 6. This Act takes effect September 1, 2023. |