88R14131 CJC-F
By: Bryant H.B. No. 5029
A BILL TO BE ENTITLED
AN ACT
relating to imposing a surcharge on certain electric generators and
gas producers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
adding Chapter 165 to read as follows:
CHAPTER 165. SURCHARGE ON ELECTRIC GENERATORS AND GAS PRODUCERS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 165.001. DEFINITIONS. In this chapter:
(1) "Affiliated power generation company," "electric
utility," and "exempt wholesale generator" have the meanings
assigned by Section 31.002, Utilities Code.
(2) "Electric cooperative" has the meaning assigned by
Section 11.003, Utilities Code.
(3) "Electric generator" includes:
(A) an affiliated power generation company;
(B) an electric utility or electric cooperative
that owns or operates for compensation in this state equipment or
facilities to generate electricity in this state;
(C) an exempt wholesale generator; and
(D) a power generation company.
(4) "Gas" has the meaning assigned by Section 201.001.
(5) "Gas producer" means a producer as defined by
Section 201.001.
(6) "Power generation company" has the meaning
assigned by Section 31.002, Utilities Code, except that the term
does not include a distributed natural gas generation facility, as
that term is defined by Section 31.002, Utilities Code.
Sec. 165.002. COMPTROLLER POWERS AND DUTIES. The
comptroller shall adopt rules and forms necessary to implement this
chapter.
SUBCHAPTER B. IMPOSITION AND COLLECTION OF SURCHARGE
Sec. 165.021. SURCHARGE IMPOSED ON ELECTRIC GENERATOR;
AMOUNT OF SURCHARGE. (a) A surcharge is imposed on each electric
generator in this state.
(b) The amount of the surcharge imposed by this chapter on
an electric generator each year is equal to the amount of the net
profit received by the electric generator during that year that is
directly attributable to electricity sold by the electric generator
at wholesale for the price of $9,000 per megawatt hour beyond the
first four hours of sale at that price.
(c) Notwithstanding Subsection (b), the amount of the
surcharge imposed by this chapter on an electric generator in 2024
is equal to the amount of the net profit received by the electric
generator during the preceding four-year period that is directly
attributable to electricity sold by the electric generator at
wholesale for the price of $9,000 per megawatt hour beyond the first
four hours of sale at that price. This subsection expires January
1, 2025.
Sec. 165.022. SURCHARGE IMPOSED ON GAS PRODUCER; AMOUNT OF
SURCHARGE. (a) A surcharge is imposed on each gas producer in this
state.
(b) The amount of the surcharge imposed by this chapter on a
gas producer each year is equal to the amount of the net profit
received by the gas producer during that year that is directly
attributable to gas sold by the gas producer at the wellhead at a
price in excess of $200 per thousand cubic feet.
(c) Notwithstanding Subsection (b), the amount of the
surcharge imposed by this chapter on a gas producer in 2024 is equal
to the amount of the net profit received by the gas producer during
the preceding four-year period that is directly attributable to gas
sold by the gas producer at the wellhead at a price in excess of $200
per thousand cubic feet. This subsection expires January 1, 2025.
Sec. 165.023. PAYMENT OF SURCHARGE. Not later than
February 25 of each year, each electric generator and gas producer
on whom a surcharge is imposed by this chapter shall send to the
comptroller the amount of surcharge due under this chapter for the
preceding year.
Sec. 165.024. REPORTS. (a) Not later than February 25 of
each year:
(1) each electric generator on whom a surcharge is
imposed by this chapter shall send to the comptroller a report
stating:
(A) the amount of the net profit received by the
electric generator during the preceding year that was directly
attributable to electricity sold by the electric generator at
wholesale at a price in excess of $9,000 per megawatt hour beyond
the first four hours of sale at that price during that year; and
(B) any other information required by the
comptroller; and
(2) each gas producer on whom a surcharge is imposed by
this chapter shall send to the comptroller a report stating:
(A) the amount of the net profit received by the
gas producer during the preceding year that is directly
attributable to gas sold by the gas producer at the wellhead at a
price in excess of $200 per thousand cubic feet during the preceding
year; and
(B) any other information required by the
comptroller.
(b) Notwithstanding Subsection (a), for the report due in
2024:
(1) an electric generator shall state in the report
the amount of the net profit received by the electric generator
during the preceding four-year period that is directly attributable
to electricity sold by the electric generator at wholesale for the
price of $9,000 per megawatt hour beyond the first four hours of
sale at that price; and
(2) a gas producer shall state in the report the amount
of the net profit received by the gas producer during the preceding
four-year period that is directly attributable to gas sold by the
gas producer at the wellhead at a price in excess of $200 per
thousand cubic feet.
(c) This subsection and Subsection (b) expire January 1,
2025.
Sec. 165.025. RECORDS. An electric generator or gas
producer on whom a surcharge is imposed under this chapter shall
keep a complete record of all information required to be reported to
the comptroller under Section 165.024.
SUBCHAPTER C. DEPOSIT AND USE OF SURCHARGE REVENUE
Sec. 165.041. DEPOSIT AND USE OF REVENUE. (a) The
comptroller shall deposit the revenue from the surcharge imposed
under this chapter to the credit of the general revenue fund.
(b) Money deposited to the credit of the general revenue
fund under Subsection (a) may be appropriated to the comptroller
only for the purpose of paying charges owed toward the payment of
bonds issued under:
(1) Subchapter J, Chapter 36, Utilities Code;
(2) Subchapters M and N, Chapter 39, Utilities Code;
(3) Subchapter D, Chapter 41, Utilities Code; and
(4) Subchapter I, Chapter 104, Utilities Code.
SUBCHAPTER D. EXPIRATION OF CHAPTER
Sec. 165.061. EXPIRATION. This chapter expires on the date
the comptroller certifies that the bonds described by Section
165.041(b) have been fully paid and publishes that certification in
the Texas Register.
SECTION 2. Chapter 165, Tax Code, as added by this Act,
applies beginning with the 2024 calendar year.
SECTION 3. This Act takes effect September 1, 2023.