By: Landgraf H.B. No. 3355
A BILL TO BE ENTITLED
AN ACT
relating to exemption from taxation of facilities, devices, or
methods used to control pollution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 11.31(b), (i), and (k), Tax Code, are
amended to read as follows:
(b) In this section, "facility, device, or method for the
control of air, water, or land pollution" means land that is
acquired after January 1, 1994, or any structure, building,
installation, excavation, machinery, equipment, or device, other
than a motor vehicle, and any attachment or addition to or
reconstruction, replacement, or improvement of that property, that
is:
(1) used, constructed, acquired, or installed wholly
or partly to meet or exceed rules or regulations adopted by any
agency [environmental protection agency] of the United States, this
state, or a political subdivision of this state for the prevention,
monitoring, control, or reduction of air, water, or land pollution;
(2) demonstrated to prevent, monitor, control, or
reduce air, water or land pollution; or
(3) used, constructed, acquired, or installed wholly
or partly for the purpose of:
(A) capturing, storing, sequestering, using,
reusing, gathering or transporting carbon dioxide emissions to
prevent carbon dioxide from entering the atmosphere; or
(B) removing carbon dioxide from the atmosphere.
[This section does not apply to a motor vehicle.]
(i) A person seeking an exemption under this section shall
provide to the chief appraiser a copy of the letter issued by the
executive director of the Texas Commission on Environmental Quality
under Subsection (d) determining that the facility, device, or
method is used wholly or partly as pollution control property. The
chief appraiser shall accept a final determination by the executive
director as conclusive evidence that the facility, device, or
method is used wholly or partly as pollution control property, and
shall issue an appraisal that is no less than twenty-five percent of
the cost of capital of the pollution control property.
(k) The Texas Commission on Environmental Quality shall
adopt rules establishing a nonexclusive list of facilities,
devices, or methods for the control of air, water, or land
pollution, which must include:
(1) coal cleaning or refining facilities;
(2) atmospheric or pressurized and bubbling or
circulating fluidized bed combustion systems and gasification
fluidized bed combustion combined cycle systems;
(3) ultra-supercritical pulverized coal boilers;
(4) flue gas recirculation components;
(5) syngas purification systems and gas-cleanup
units;
(6) enhanced heat recovery systems;
(7) exhaust heat recovery boilers;
(8) heat recovery steam generators;
(9) superheaters and evaporators;
(10) enhanced steam turbine systems;
(11) methanation;
(12) coal combustion or gasification byproduct and
coproduct handling, storage, or treatment facilities;
(13) biomass cofiring storage, distribution, and
firing systems;
(14) coal cleaning or drying processes, such as coal
drying/moisture reduction, air jigging, precombustion
decarbonization, and coal flow balancing technology;
(15) oxy-fuel combustion technology, amine or chilled
ammonia scrubbing, fuel or emission conversion through the use of
catalysts, enhanced scrubbing technology, modified combustion
technology such as chemical looping, and cryogenic technology;
(16) [if the United States Environmental Protection
Agency adopts a final rule or regulation regulating carbon dioxide
as a pollutant,,
installed wholly or partly to capture carbon dioxide [from an
anthropogenic source] in this state that is geologically
sequestered or utilized in this state;
(17) fuel cells generating electricity using hydrogen
derived from coal, biomass, petroleum coke, or solid waste; and
(18) any other equipment designed to prevent, capture,
abate, or monitor nitrogen oxides, volatile organic compounds,
particulate matter, mercury, carbon monoxide, or any criteria
pollutant.
SECTION 2. The changes in law made by this Act to Section
11.31(b), Tax Code, applies to facilities, devices, or methods for
the control of air, water, or land pollution that are used for the
purposes described in Section 11.31(b), Tax Code, on or after the
effective date of this Act.
SECTION 3. 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, 2023.