| 1 | 1 | | 81R6456 KLA-D |
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| 2 | 2 | | By: Strama H.B. No. 1210 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the oil production tax rate reduction for oil recovered |
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| 8 | 8 | | through certain enhanced oil recovery projects. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 202.0545(a), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (a) Subject to the limitations provided by this section, |
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| 13 | 13 | | until the later of the 30th [seventh] anniversary of the date that |
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| 14 | 14 | | the comptroller first approves an application for a tax rate |
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| 15 | 15 | | reduction under this section or the effective date of a final rule |
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| 16 | 16 | | adopted by the United States Environmental Protection Agency |
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| 17 | 17 | | regulating carbon dioxide as a pollutant, the producer of oil |
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| 18 | 18 | | recovered through an enhanced oil recovery project that qualifies |
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| 19 | 19 | | under Section 202.054 for the recovered oil tax rate provided by |
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| 20 | 20 | | Section 202.052(b) is entitled to an additional 50 percent |
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| 21 | 21 | | reduction in that tax rate if in the recovery of the oil the |
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| 22 | 22 | | enhanced oil recovery project uses carbon dioxide that: |
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| 23 | 23 | | (1) is captured from an anthropogenic source in this |
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| 24 | 24 | | state; |
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| 25 | 25 | | (2) would otherwise be released into the atmosphere as |
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| 26 | 26 | | industrial emissions; |
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| 27 | 27 | | (3) is measurable at the source of capture; and |
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| 28 | 28 | | (4) is sequestered in one or more geological |
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| 29 | 29 | | formations in this state following the enhanced oil recovery |
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| 30 | 30 | | process. |
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| 31 | 31 | | SECTION 2. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect September 1, 2009. |
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