81R4126 SMH-F
By: King of Parker H.B. No. 469
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of incentives by this state for the
implementation of certain projects to capture and sequester in
geological formations carbon dioxide that would otherwise be
emitted into the atmosphere.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter G, Chapter 490,
Government Code, is amended to read as follows:
SUBCHAPTER G. CLEAN COAL PROJECTS AND CLEAN ENERGY PROJECTS
SECTION 2. Section 490.301, Government Code, is amended to
read as follows:
Sec. 490.301. DEFINITIONS [DEFINITION]. In this
subchapter:
(1) "Clean [, "clean] coal project" has the meaning
assigned by Section 5.001, Water Code.
(2) "Clean energy project" has the meaning assigned by
Section 120.001, Natural Resources Code.
SECTION 3. The heading to Section 490.304, Government Code,
is amended to read as follows:
Sec. 490.304. CONTRACTING AUTHORITY RELATED TO
IMPLEMENTING CLEAN COAL PROJECT; FRANCHISE TAX CREDIT.
SECTION 4. Subchapter G, Chapter 490, Government Code, is
amended by adding Section 490.305 to read as follows:
Sec. 490.305. CONTRACTING AUTHORITY RELATED TO
IMPLEMENTING CLEAN ENERGY PROJECT; FRANCHISE TAX CREDIT. (a) The
governor may contract for the state with an organization for a
purpose related to implementing a clean energy project.
(b) The governor and the comptroller jointly may adopt
provisions for issuing to the entity with which the governor
contracts under Subsection (a) franchise tax credits to promote
research and development activities related to a clean energy
project in this state. The governor and comptroller must act under
this subsection not later than December 31, 2010. The total amount
of franchise tax credits that may be issued to the entity may not
exceed $100 million. A franchise tax credit may be issued, in
accordance with the governor's and comptroller's provisions, to the
entity, irrespective of whether the entity owes or pays a franchise
tax under Chapter 171, Tax Code. The entity may assign the tax
credits to a taxable entity, as defined by Section 171.0002, Tax
Code, in accordance with the governor's and comptroller's
provisions.
SECTION 5. Subtitle D, Title 3, Natural Resources Code, is
amended by adding Chapter 120 to read as follows:
CHAPTER 120. MONITORING OF CARBON DIOXIDE CAPTURED BY CLEAN ENERGY
PROJECT
Sec. 120.001. DEFINITION. In this chapter, "clean energy
project" means a project to construct a coal-fired electric
generating facility that will:
(1) have a capacity of at least 200 megawatts;
(2) use integrated gasification combined cycle
technology; and
(3) be capable of capturing and permanently
sequestering in a geologic formation at least 60 percent of the
carbon dioxide resulting from the generation of electricity by the
facility.
Sec. 120.002. MONITORING OF SEQUESTERED CARBON DIOXIDE.
The Bureau of Economic Geology of The University of Texas at Austin
shall monitor, measure, and verify the permanent status of
sequestered carbon dioxide generated by the first three clean
energy projects with regard to which the governor enters into a
contract under Section 490.305, Government Code.
SECTION 6. Section 202.0545, Tax Code, is amended by adding
Subsection (i) to read as follows:
(i) Notwithstanding Subsections (a) and (d)(1), the
producer of oil recovered through an enhanced oil recovery project
that uses carbon dioxide that is generated by a clean energy project
as defined by Section 120.001, Natural Resources Code, is entitled
to a tax rate reduction under this section until the later of the
30th anniversary of the date that the producer first claims a tax
rate reduction under this section on a return or the effective date
of a final rule adopted by the United States Environmental
Protection Agency regulating carbon dioxide as a pollutant if:
(1) the agency to which the operator applies for a
certification under Subsection (c)(2) finds that, based on
substantial evidence, there is a reasonable expectation that the
operator's planned sequestration program will ensure that at least
60 percent of the carbon dioxide sequestered as required by
Subsection (a)(4) will remain sequestered for at least 500 years;
and
(2) the producer otherwise qualifies for the tax rate
reduction.
SECTION 7. This Act takes effect September 1, 2009.