| 1 | 1 | | 81R9637 SMH-F |
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| 2 | 2 | | By: Chisum H.B. No. 2872 |
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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 establishment by the State Soil and Water |
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| 8 | 8 | | Conservation Board of a carbon dioxide sequestration or emissions |
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| 9 | 9 | | offset program. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter B, Chapter 201, Agriculture Code, is |
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| 12 | 12 | | amended by adding Section 201.029 to read as follows: |
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| 13 | 13 | | Sec. 201.029. CARBON DIOXIDE SEQUESTRATION OR EMISSIONS |
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| 14 | 14 | | OFFSET PROGRAM. (a) In this section: |
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| 15 | 15 | | (1) "Aggregator" means a person who is authorized by |
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| 16 | 16 | | one or more landowners to enter into a contract for the use of land, |
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| 17 | 17 | | vegetation, or a geologic formation in connection with a project. |
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| 18 | 18 | | (2) "Project" means a project to sequester carbon |
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| 19 | 19 | | dioxide or offset emissions of carbon dioxide. |
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| 20 | 20 | | (3) "Verifier" means an entity that confirms, visually |
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| 21 | 21 | | or through direct measurement and by review of applicable records, |
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| 22 | 22 | | the accuracy of reported information regarding the sequestration of |
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| 23 | 23 | | carbon dioxide or the offsetting of emissions of carbon dioxide by a |
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| 24 | 24 | | project. |
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| 25 | 25 | | (b) The state board is designated as the lead agency in this |
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| 26 | 26 | | state for projects on private agricultural lands. |
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| 27 | 27 | | (c) A person must be certified by the state board to serve as |
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| 28 | 28 | | an aggregator. The state board shall work with the Texas Department |
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| 29 | 29 | | of Licensing and Regulation to establish a process for certifying |
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| 30 | 30 | | aggregators. |
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| 31 | 31 | | (d) The state board shall maintain a database of all |
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| 32 | 32 | | certified aggregators in this state. |
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| 33 | 33 | | (e) The state board is designated as the official verifier |
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| 34 | 34 | | for purposes of determining whether a project that is the subject of |
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| 35 | 35 | | a carbon dioxide credit bought and sold in this state has achieved |
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| 36 | 36 | | the goals of the credit. The state board may contract with |
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| 37 | 37 | | conservation districts to carry out the verification process. A |
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| 38 | 38 | | conservation district with which the state board enters into a |
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| 39 | 39 | | contract under this subsection must have expertise and experience |
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| 40 | 40 | | in the specifications and methods used to develop and assess carbon |
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| 41 | 41 | | dioxide sinks associated with agriculture. The state board shall |
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| 42 | 42 | | collect a fee for all verification services provided and may impose |
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| 43 | 43 | | a penalty for late payment of a fee. |
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| 44 | 44 | | (f) The state board shall maintain a database of all carbon |
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| 45 | 45 | | dioxide credits bought and sold in this state. Information in the |
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| 46 | 46 | | database that identifies a seller or purchaser of carbon dioxide |
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| 47 | 47 | | credits is confidential and not subject to public disclosure. |
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| 48 | 48 | | (g) The carbon dioxide sequestration or emissions offset |
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| 49 | 49 | | fund is created in the state treasury. |
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| 50 | 50 | | (h) The fund consists of: |
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| 51 | 51 | | (1) fees charged under this section; |
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| 52 | 52 | | (2) the penalties for the late payment of fees charged |
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| 53 | 53 | | under this section; |
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| 54 | 54 | | (3) gifts, grants, or other assistance received by the |
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| 55 | 55 | | state board from any source for the purposes of this section; and |
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| 56 | 56 | | (4) interest earned on amounts in the fund. |
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| 57 | 57 | | (i) The fund may be used only by the state board to pay for |
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| 58 | 58 | | activities relating to the carbon dioxide sequestration or |
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| 59 | 59 | | emissions offset program established under this section, including |
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| 60 | 60 | | direct and indirect costs relating to: |
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| 61 | 61 | | (1) researching, developing, marketing, advertising, |
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| 62 | 62 | | and informational programs relating to carbon dioxide |
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| 63 | 63 | | sequestration and emissions offsets to make them more |
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| 64 | 64 | | understandable and readily available; and |
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| 65 | 65 | | (2) the administrative costs incurred by the state |
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| 66 | 66 | | board under this section. |
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| 67 | 67 | | (j) The state board may apply for, request, solicit, |
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| 68 | 68 | | contract for, receive, and accept gifts, grants, and other |
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| 69 | 69 | | assistance from any source for the purposes of this section. Money |
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| 70 | 70 | | received under this subsection shall be deposited in the fund. |
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| 71 | 71 | | SECTION 2. This Act takes effect September 1, 2009. |
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