By: Hilderbran H.B. No. 3387
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from the sales tax for certified water
conservation technologies, authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.355, Tax Code, is amended by adding
subsection (8) as follows:
Sec. 151.355. WATER-RELATED EXEMPTIONS. The following are
exempted from taxes imposed by this chapter:
(1) rainwater harvesting equipment or supplies, water
recycling and reuse equipment or supplies, or other equipment,
services, or supplies used solely to reduce or eliminate water use;
(2) equipment, services, or supplies used solely for
desalination of surface water or groundwater;
(3) equipment, services, or supplies used solely for
brush control designed to enhance the availability of water;
(4) equipment, services, or supplies used solely for
precipitation enhancement;
(5) equipment, services, or supplies used solely to
construct or operate a water or wastewater system certified by the
Texas Commission on Environmental Quality as a regional system;
(6) equipment, services, or supplies used solely to
construct or operate a water supply or wastewater system by a
private entity as a public-private partnership as certified by the
political subdivision that is a party to the project; and
(7) tangible personal property specifically used to
process, reuse, or recycle wastewater that will be used in
fracturing work performed at an oil or gas well.
(8) items used in technologies certified by the
railroad commission pursuant to section 81.080, natural resources
code, to reduce or eliminate fresh water usage in stimulating oil
and gas production.
SECTION 2. Subsection 81.067(c), Natural Resources Code, is
amended as follows:
(c) The fund consists of:
(1) proceeds from bonds and other financial security
required by this chapter and benefits under well-specific plugging
insurance policies described by Section 91.104(c) that are paid to
the state as contingent beneficiary of the policies, subject to the
refund provisions of Section 91.1091, if applicable;
(2) private contributions, including contributions
made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) fees imposed under Section 85.2021;
(5) costs recovered under Section 91.457 or 91.459;
(6) proceeds collected under Sections 89.085 and
91.115;
(7) interest earned on the funds deposited in the
fund;
(8) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(9) costs recovered under Section 91.113(f);
(10) hazardous oil and gas waste generation fees
collected under Section 91.605;
(11) oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(12) oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(13) fees for a reissued certificate collected under
Section 91.707;
(14) fees collected under Section 91.1013;
(15) fees collected under Section 89.088;
(16) fees collected under Section 91.142;
(17) fees collected under Section 91.654;
(18) costs recovered under Sections 91.656 and 91.657;
(19) two-thirds of the fees collected under Section
81.0521;
(20) fees collected under Sections 89.024 and 89.026;
(21) legislative appropriations; and
(22) any surcharges collected under Section 81.070.;
and
(23) fees collected under Section 81.080.
SECTION 3. Chapter 81, Natural Resources Code, is amended
by adding Section 81.080 as follows:
Sec. 81.080. CERTIFICATION OF WATER CONSERVATION
TECHNOLOGIES. The commission shall receive applications for and
may certify technologies that demonstrably reduce or eliminate
fresh water usage in stimulating oil and gas production. The
commission shall publish and periodically update a list of approved
technologies on the agency website. The commission may impose a fee
in an amount sufficient to cover the costs of administering this
section.
SECTION 4. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 5. This Act takes effect September 1, 2013.