By: Darby H.B. No. 1158
A BILL TO BE ENTITLED
AN ACT
relating to advanced clean energy projects and certain other
projects that reduce or eliminate emissions of carbon dioxide or
other pollutants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 382.003(1-a), Health and Safety Code, is
amended to read as follows:
(1-a) "Advanced clean energy project" means a project
[for which an application for a permit or for an authorization to
use a standard permit under this chapter is received by the
commission on or after January 1, 2008, and before January 1, 2020,
and] that:
(A) involves the use of coal, biomass, petroleum
coke, solid waste, natural gas, or fuel cells using hydrogen
derived from such fuels, in the generation of electricity, or the
creation of liquid fuels outside of the existing fuel production
infrastructure while co-generating electricity, whether the
project is implemented in connection with the construction of a new
facility or in connection with the modification of an existing
facility and whether the project involves the entire emissions
stream from the facility or only a portion of the emissions stream
from the facility;
(B) with regard to the portion of the emissions
stream from the facility that is associated with the project, is
capable of achieving:
(i) on an annual basis:
(a) a 99 percent or greater reduction
of sulfur dioxide emissions;
(b) if the project is designed for the
use of feedstock, substantially all of which is subbituminous coal,
an emission rate of 0.04 pounds or less of sulfur dioxide per
million British thermal units as determined by a 30-day average; or
(c) if the project is designed for the
use of one or more combustion turbines that burn natural gas, a
sulfur dioxide emission rate that meets best available control
technology requirements as determined by the commission;
(ii) on an annual basis:
(a) a 95 percent or greater reduction
of mercury emissions; or
(b) if the project is designed for the
use of one or more combustion turbines that burn natural gas, a
mercury emission rate that complies with applicable federal
requirements;
(iii) an annual average emission rate for
nitrogen oxides of:
(a) 0.05 pounds or less per million
British thermal units;
(b) if the project uses gasification
technology, 0.034 pounds or less per million British thermal units;
or
(c) if the project is designed for the
use of one or more combustion turbines that burn natural gas, two
parts per million by volume or an emission rate that meets best
available control technology requirements as determined by the
commission; and
(iv) an annual average emission rate for
filterable particulate matter of 0.015 pounds or less per million
British thermal units; and
(C) captures not less than 75 [50] percent of the
carbon dioxide in the portion of the emissions stream from the
facility that is associated with the project and utilizes or
sequesters, in whole or in part, that captured carbon dioxide by
geologic storage or other means.
SECTION 2. Section 391.002(b), Health and Safety Code, is
amended to read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) advanced clean energy projects, as defined by
Section 382.003;
(2) new technology projects that reduce emissions of
regulated pollutants from stationary sources;
(3) new technology projects that reduce emissions from
upstream and midstream oil and gas production, completions,
gathering, storage, processing, and transmission activities
through:
(A) the replacement, repower, or retrofit of
stationary compressor engines;
(B) the installation of systems to reduce or
eliminate the loss of gas, flaring of gas, or burning of gas using
other combustion control devices; or
(C) the installation of systems that reduce
flaring emissions and other site emissions; [and]
(4) electricity storage projects related to renewable
energy, including projects to store electricity produced from wind
and solar generation that provide efficient means of making the
stored energy available during periods of peak energy use;
(5) projects that utilize technology to capture, use,
reuse, store, gather, transport, or sequester carbon dioxide
emissions from a new or existing cement plant, petrochemical plant,
or electric generation facility, including a facility powered by
coal, petroleum coke, natural gas, hydrogen, or ammonia, for the
principal purpose of preventing carbon dioxide from entering or
remaining in the atmosphere; and
(6) projects that involve the use of renewable energy
to produce hydrogen fuel for use in transportation, agricultural,
or industrial processes and result in a reduction of pollutants
entering the atmosphere.
SECTION 3. Section 151.334, Tax Code, is amended to read as
follows:
Sec. 151.334. COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED
IN CONNECTION WITH CERTAIN CLEAN ENERGY PROJECTS OR BY CARBON
CAPTURE FACILITIES [SEQUESTRATION OF CARBON DIOXIDE]. Components
of tangible personal property used in connection with an advanced
clean energy project, as defined by Section 382.003, Health and
Safety Code, or a clean energy project, as defined by Section
120.001, Natural Resources Code, or purchased and installed by a
carbon capture facility are exempted from the taxes imposed by this
chapter if[:
[(1)] the components are installed to capture carbon
dioxide from the atmosphere or an anthropogenic emission source,
transport or inject carbon dioxide from the atmosphere or an
anthropogenic emission [such a] source, or prepare carbon dioxide
from the atmosphere or an anthropogenic emission [such a] source
for transportation, utilization, or injection[;] and:
(1) [(2)] the carbon dioxide is sequestered in this
state[:
[(A)] as part of an enhanced oil recovery project
that qualifies for a tax rate reduction under Section 202.0545, as
provided by Subsection (c) of that section; [or]
(2) the components are used in connection with the
capture, use, reuse, storage, transportation, or injection of
carbon dioxide emissions to prevent carbon dioxide from entering or
remaining in the atmosphere; or
(3) the components are used in connection with the
sequestration of carbon dioxide emissions [(B)] in a manner and
under conditions that create a reasonable expectation that at least
99 percent of the carbon dioxide will remain sequestered from the
atmosphere for at least 1,000 years.
SECTION 4. The change in law made by this Act to Section
151.334, Tax Code, 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, 2023.