Texas House Bill HB2446

Texas 2013 - 83rd Regular

Caption

Relating to the definitions of advanced clean energy projects and clean energy projects and to franchise tax credits for certain of those projects.

Impact

The enactment of this bill is expected to significantly influence state laws concerning energy production and environmental compliance. By creating a structured definition of clean energy projects, the bill not only sets standards for new energy facilities but also promotes advancements in technology and innovation in the energy sector. It provides a substantial financial incentive, up to $100 million or 10% of the project's costs, to foster investment in clean energy infrastructure, thereby enhancing Texas's commitment to sustainable energy sources.

Summary

House Bill 2446 focuses on the definitions and criteria for clean energy projects in Texas, along with the provision of franchise tax credits to incentivize these initiatives. The bill establishes a framework for what constitutes a 'clean energy project,' particularly emphasizing requirements for carbon dioxide sequestration and operational standards. Projects certified under this bill must construct facilities that can capture and sequester a minimum of 70 percent of the carbon dioxide produced in electricity generation, encouraging environmentally responsible approaches to energy production.

Contention

However, the bill has sparked discussion around its implications for existing energy projects and the competitive landscape of energy production in Texas. Notably, the provision limiting certification to just three clean energy projects raises concerns about potential monopolies or favoritism towards larger energy corporations. Critics argue that the stringent requirements and restrictions may hinder smaller projects from gaining traction, concentrating resources among a few larger entities. Moreover, the limitations imposed on natural gas projects have been points of contention among industry stakeholders, leading to debates on energy diversification strategies.