Texas 2009 - 81st Regular

Texas House Bill HB1210

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the oil production tax rate reduction for oil recovered through certain enhanced oil recovery projects.

Impact

The enactment of HB1210 will likely alter the financial landscape for oil producers engaged in enhanced oil recovery projects. By incentivizing the use of carbon dioxide capture technologies, the bill aims to bolster environmental initiatives and support the state's carbon management goals. The bill is expected to lead to a slower pace of industrial emissions in Texas, which could resonate positively within broader climate change discussions. However, the implementation of this bill may also raise concerns about its effectiveness and the actual reduction in emissions it would facilitate compared to ongoing environmental challenges posed by oil production.

Summary

House Bill 1210 proposes a reduction in the oil production tax rate for oil that is recovered through specific enhanced oil recovery projects. This bill aims to encourage the collection and sequestration of carbon dioxide during the oil recovery process. Producers utilizing carbon dioxide captured from anthropogenic sources within Texas that would otherwise enter the atmosphere are entitled to an additional 50 percent reduction in their oil production tax rate. This measure is seen as a means to promote environmentally responsible practices within the oil industry while simultaneously incentivizing the effective use of carbon emissions.

Contention

Discussion around HB1210 indicates potential contention surrounding the effectiveness and scope of the tax reduction provided within the legislation. Critics may argue that while the tax incentives aim to support carbon sequestration practices, there could be skepticism regarding the enforcement and monitoring of these enhanced recovery projects. Furthermore, concerns exist about whether the bill will adequately address broader environmental concerns associated with oil production or if it merely serves to subsidize an industry with ongoing emissions. Stakeholders in environmental advocacy may advocate for stricter regulations on oil companies in conjunction with such incentives.

Companion Bills

No companion bills found.

Previously Filed As

TX SB2243

Relating to advanced clean energy projects and certain other projects that reduce or eliminate carbon dioxide emissions.

TX HB1158

Relating to advanced clean energy projects and certain other projects that reduce or eliminate emissions of carbon dioxide or other pollutants.

TX HB4724

Relating to the franchise tax credit for certain clean energy projects.

TX HB4983

Relating to the franchise tax credit for certain clean energy projects.

TX SB2203

Relating to the franchise tax credit for certain clean energy projects.

TX SB2153

Relating to certain school district tax abatements for power system reliability projects.

TX HB3837

Relating to the designation of advanced clean energy projects.

TX HB4225

Relating to a study conducted by the Railroad Commission of Texas to determine the net reduction in the amount of carbon dioxide in the atmosphere resulting from the use of carbon capture, utilization, and storage technology.

TX HB4419

Relating to the promotion of film and television production in this state, including the eligibility of film or television productions for funding under the major events reimbursement program, the creation of a film events trust fund and a film production tax rebate trust fund, the establishment of virtual film production institutes, and the designation of media production development zones.

TX HB4046

Relating to the reduction and plugging of orphaned oil and gas wells; providing for the imposition of a fee and an exemption from certain taxes and fees.

Similar Bills

No similar bills found.