By: West S.B. No. 1529
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from property taxation for certain
facilities that convert landfill generated methane into renewable
natural gas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.35 to read as follows:
Sec. 11.35. LANDFILL GENERATED METHANE CONVERSION
FACILITIES. (a) A person is entitled to an exemption from
taxation of all real and personal property owned or leased by a
person that is used as part of or in connection with a Renewable
Natural Gas Facility to produce Renewable Natural Gas, which
collectively is a facility, device, or method for the control of
air, water, or land pollution.
(b) In this section, "Renewable Natural Gas" means product
gas derived from landfill gas collected at a landfill that has been
processed by a Renewable Natural Gas Facility to meet either:
(i) the gas quality requirements of the natural gas
pipeline into which such product gas is injected; or
(ii) the gas quality required for use as a
transportation fuel in methane powered on-road or off-road vehicles
or equipment.
(c) In this section, "Renewable Natural Gas Facility" means
the real and personal property used to accomplish the collection,
compression, transport and processing of landfill gas into
Renewable Natural Gas either into a natural gas pipeline or by
delivery to a methane fueling station and/or a methane fueling
station, including dispensing equipment, if located on or in close
proximity to the landfill from which the Renewable Natural Gas is
produced. "Renewable Natural Gas Facility" includes wells;
wellheads and related hardware; wells, pipes and equipment for
injection of liquids into a landfill to enhance production of
landfill gas and recovery of landfill air space; all landfill gas
collection system and processing equipment piping; waste liquids
disposal equipment; hoses; pipelines; pumps; sumps; blowers;
compressors; gas dryers; gas treatment equipment used to separate
or remove carbon dioxide, sulfur and other chemicals from the
product gas; valves; thermal destruction equipment, including
flares and thermal oxidizers; electronic controls and processors;
electric equipment; wiring; transformers; switchgear; onsite
offices, storage and equipment buildings, containers, tanks and
other structures; spare parts; chemical media; meters; calibration
gas; gas chromatographs and other measuring equipment; valves;
flanges; pipeline interconnection equipment; and fueling station
equipment, including compressors, buffering vessels, methane
fueling posts, hoses, fast-fill dispensers, control equipment and
all related equipment.
SECTION 2. Section 11.43(c), Tax Code, is amended to read as
follows:
(c) An exemption provided by Section 11.13, 11.131, 11.17,
11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
11.23(h), (j), or (j-1), 11.231, 11.254, 11.29, 11.30, or 11.31, or
11.35, once allowed, need not be claimed in subsequent years, and
except as otherwise provided by Subsection (e), the exemption
applies to the property until it changes ownership or the person's
qualification for the exemption changes. However, the chief
appraiser may require a person allowed one of the exemptions in a
prior year to file a new application to confirm the person's current
qualification for the exemption by delivering a written notice that
a new application is required, accompanied by an appropriate
application form, to the person previously allowed the exemption.
SECTION 3. EFFECTIVE DATE. 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, 2013. The
changes in law made by this Act apply to an application for an
exemption from taxation under Section 11.31 of this chapter that is
pending at the time of enactment of this Act.