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