Texas 2023 - 88th Regular

Texas House Bill HB1158 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Darby H.B. No. 1158
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to advanced clean energy projects and certain other
7	7	projects that reduce or eliminate emissions of carbon dioxide or
8	8	other pollutants.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 382.003(1-a), Health and Safety Code, is
11	11	amended to read as follows:
12	12	(1-a) "Advanced clean energy project" means a project
13	13	[for which an application for a permit or for an authorization to
14	14	use a standard permit under this chapter is received by the
15	15	commission on or after January 1, 2008, and before January 1, 2020,
16	16	and] that:
17	17	(A) involves the use of coal, biomass, petroleum
18	18	coke, solid waste, natural gas, or fuel cells using hydrogen
19	19	derived from such fuels, in the generation of electricity, or the
20	20	creation of liquid fuels outside of the existing fuel production
21	21	infrastructure while co-generating electricity, whether the
22	22	project is implemented in connection with the construction of a new
23	23	facility or in connection with the modification of an existing
24	24	facility and whether the project involves the entire emissions
25	25	stream from the facility or only a portion of the emissions stream
26	26	from the facility;
27	27	(B) with regard to the portion of the emissions
28	28	stream from the facility that is associated with the project, is
29	29	capable of achieving:
30	30	(i) on an annual basis:
31	31	(a) a 99 percent or greater reduction
32	32	of sulfur dioxide emissions;
33	33	(b) if the project is designed for the
34	34	use of feedstock, substantially all of which is subbituminous coal,
35	35	an emission rate of 0.04 pounds or less of sulfur dioxide per
36	36	million British thermal units as determined by a 30-day average; or
37	37	(c) if the project is designed for the
38	38	use of one or more combustion turbines that burn natural gas, a
39	39	sulfur dioxide emission rate that meets best available control
40	40	technology requirements as determined by the commission;
41	41	(ii) on an annual basis:
42	42	(a) a 95 percent or greater reduction
43	43	of mercury emissions; or
44	44	(b) if the project is designed for the
45	45	use of one or more combustion turbines that burn natural gas, a
46	46	mercury emission rate that complies with applicable federal
47	47	requirements;
48	48	(iii) an annual average emission rate for
49	49	nitrogen oxides of:
50	50	(a) 0.05 pounds or less per million
51	51	British thermal units;
52	52	(b) if the project uses gasification
53	53	technology, 0.034 pounds or less per million British thermal units;
54	54	or
55	55	(c) if the project is designed for the
56	56	use of one or more combustion turbines that burn natural gas, two
57	57	parts per million by volume or an emission rate that meets best
58	58	available control technology requirements as determined by the
59	59	commission; and
60	60	(iv) an annual average emission rate for
61	61	filterable particulate matter of 0.015 pounds or less per million
62	62	British thermal units; and
63	63	(C) captures not less than 75 [50] percent of the
64	64	carbon dioxide in the portion of the emissions stream from the
65	65	facility that is associated with the project and utilizes or
66	66	sequesters, in whole or in part, that captured carbon dioxide by
67	67	geologic storage or other means.
68	68	SECTION 2. Section 391.002(b), Health and Safety Code, is
69	69	amended to read as follows:
70	70	(b) Projects that may be considered for a grant under the
71	71	program include:
72	72	(1) advanced clean energy projects, as defined by
73	73	Section 382.003;
74	74	(2) new technology projects that reduce emissions of
75	75	regulated pollutants from stationary sources;
76	76	(3) new technology projects that reduce emissions from
77	77	upstream and midstream oil and gas production, completions,
78	78	gathering, storage, processing, and transmission activities
79	79	through:
80	80	(A) the replacement, repower, or retrofit of
81	81	stationary compressor engines;
82	82	(B) the installation of systems to reduce or
83	83	eliminate the loss of gas, flaring of gas, or burning of gas using
84	84	other combustion control devices; or
85	85	(C) the installation of systems that reduce
86	86	flaring emissions and other site emissions; [and]
87	87	(4) electricity storage projects related to renewable
88	88	energy, including projects to store electricity produced from wind
89	89	and solar generation that provide efficient means of making the
90	90	stored energy available during periods of peak energy use;
91	91	(5) projects that utilize technology to capture, use,
92	92	reuse, store, gather, transport, or sequester carbon dioxide
93	93	emissions from a new or existing cement plant, petrochemical plant,
94	94	or electric generation facility, including a facility powered by
95	95	coal, petroleum coke, natural gas, hydrogen, or ammonia, for the
96	96	principal purpose of preventing carbon dioxide from entering or
97	97	remaining in the atmosphere; and
98	98	(6) projects that involve the use of renewable energy
99	99	to produce hydrogen fuel for use in transportation, agricultural,
100	100	or industrial processes and result in a reduction of pollutants
101	101	entering the atmosphere.
102	102	SECTION 3. Section 151.334, Tax Code, is amended to read as
103	103	follows:
104	104	Sec. 151.334. COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED
105	105	IN CONNECTION WITH CERTAIN CLEAN ENERGY PROJECTS OR BY CARBON
106	106	CAPTURE FACILITIES [SEQUESTRATION OF CARBON DIOXIDE]. Components
107	107	of tangible personal property used in connection with an advanced
108	108	clean energy project, as defined by Section 382.003, Health and
109	109	Safety Code, or a clean energy project, as defined by Section
110	110	120.001, Natural Resources Code, or purchased and installed by a
111	111	carbon capture facility are exempted from the taxes imposed by this
112	112	chapter if[:
113	113	[(1)] the components are installed to capture carbon
114	114	dioxide from the atmosphere or an anthropogenic emission source,
115	115	transport or inject carbon dioxide from the atmosphere or an
116	116	anthropogenic emission [such a] source, or prepare carbon dioxide
117	117	from the atmosphere or an anthropogenic emission [such a] source
118	118	for transportation, utilization, or injection[;] and:
119	119	(1) [(2)] the carbon dioxide is sequestered in this
120	120	state[:
121	121	[(A)] as part of an enhanced oil recovery project
122	122	that qualifies for a tax rate reduction under Section 202.0545, as
123	123	provided by Subsection (c) of that section; [or]
124	124	(2) the components are used in connection with the
125	125	capture, use, reuse, storage, transportation, or injection of
126	126	carbon dioxide emissions to prevent carbon dioxide from entering or
127	127	remaining in the atmosphere; or
128	128	(3) the components are used in connection with the
129	129	sequestration of carbon dioxide emissions [(B)] in a manner and
130	130	under conditions that create a reasonable expectation that at least
131	131	99 percent of the carbon dioxide will remain sequestered from the
132	132	atmosphere for at least 1,000 years.
133	133	SECTION 4. The change in law made by this Act to Section
134	134	151.334, Tax Code, does not affect tax liability accruing before
135	135	the effective date of this Act. That liability continues in effect
136	136	as if this Act had not been enacted, and the former law is continued
137	137	in effect for the collection of taxes due and for civil and criminal
138	138	enforcement of the liability for those taxes.
139	139	SECTION 5. This Act takes effect September 1, 2023.