H.B. No. 3837
AN ACT
relating to the designation of advanced clean energy projects.
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) 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:
(i) [(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;
(ii) [(B)] with regard to the portion of the
emissions stream from the facility that is associated with the
project, is capable of achieving:
(a) [(i)] on an annual basis:
(1) [(a)] a 99 percent or
greater reduction of sulfur dioxide emissions;
(2) [(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
(3) [(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;
(b) [(ii)] on an annual basis:
(1) [(a)] a 95 percent or
greater reduction of mercury emissions; or
(2) [(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;
(c) [(iii)] an annual average
emission rate for nitrogen oxides of:
(1) [(a)] 0.05 pounds or less
per million British thermal units;
(2) [(b)] if the project uses
gasification technology, 0.034 pounds or less per million British
thermal units; or
(3) [(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; and
(d) [(iv)] an annual average emission
rate for filterable particulate matter of 0.015 pounds or less per
million British thermal units; and
(iii) [(C)] captures not less than 50
percent of the carbon dioxide in the portion of the emissions stream
from the facility that is associated with the project and
sequesters that captured carbon dioxide by geologic storage or
other means; or
(B) a project that is a facility:
(i) for which an authorization to use a
standard permit was approved after January 1, 2020, but before
September 1, 2023; and
(ii) that:
(a) utilizes natural gas to create
methanol; and
(b) converts methanol to zero-sulfur
transportation fuels.
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(1-a)(A) [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.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3837 was passed by the House on April
28, 2023, by the following vote: Yeas 141, Nays 6, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3837 on May 25, 2023, by the following vote: Yeas 122, Nays 18,
3 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3837 was passed by the Senate, with
amendments, on May 22, 2023, by the following vote: Yeas 26, Nays
5.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor