Texas 2023 - 88th Regular

Texas Senate Bill SB2243 Compare Versions

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1	1	88R4156 JRR-F
2	2	By: Johnson S.B. No. 2243
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to advanced clean energy projects and certain other
8	8	projects that reduce or eliminate carbon dioxide emissions.
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; and
58	58	(iv) an annual average emission rate for
59	59	filterable particulate matter of 0.015 pounds or less per million
60	60	British thermal units; and
61	61	(C) captures not less than 90 [50] percent of the
62	62	carbon dioxide in the portion of the emissions stream from the
63	63	facility that is associated with the project and sequesters that
64	64	captured carbon dioxide by geologic storage or other means.
65	65	SECTION 2. Section 391.002(b), Health and Safety Code, is
66	66	amended to read as follows:
67	67	(b) Projects that may be considered for a grant under the
68	68	program include:
69	69	(1) advanced clean energy projects, as defined by
70	70	Section 382.003;
71	71	(2) new technology projects that reduce emissions of
72	72	regulated pollutants from stationary sources;
73	73	(3) new technology projects that reduce emissions from
74	74	upstream and midstream oil and gas production, completions,
75	75	gathering, storage, processing, and transmission activities
76	76	through:
77	77	(A) the replacement, repower, or retrofit of
78	78	stationary compressor engines;
79	79	(B) the installation of systems to reduce or
80	80	eliminate carbon dioxide emissions or the loss of gas, flaring of
81	81	gas, or burning of gas using other combustion control devices; or
82	82	(C) the installation of systems that reduce
83	83	flaring emissions and other site emissions; [and]
84	84	(4) electricity storage projects related to renewable
85	85	energy, including projects to store electricity produced from wind
86	86	and solar generation that provide efficient means of making the
87	87	stored energy available during periods of peak energy use; and
88	88	(5) projects that:
89	89	(A) utilize technology to capture, use, reuse,
90	90	store, or sequester carbon dioxide emissions for the principal
91	91	purpose of preventing carbon dioxide from entering the atmosphere;
92	92	and
93	93	(B) are constructed integral or adjacent to a
94	94	petrochemical plant or an electric generation facility, including a
95	95	facility powered by coal, natural gas, hydrogen, or ammonia.
96	96	SECTION 3. Section 151.334, Tax Code, is amended to read as
97	97	follows:
98	98	Sec. 151.334. COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED
99	99	IN CONNECTION WITH CERTAIN CLEAN ENERGY PROJECTS [SEQUESTRATION OF
100	100	CARBON DIOXIDE]. Components of tangible personal property used in
101	101	connection with an advanced clean energy project, as defined by
102	102	Section 382.003, Health and Safety Code, or a clean energy project,
103	103	as defined by Section 120.001, Natural Resources Code, are exempted
104	104	from the taxes imposed by this chapter if[:]
105	105	[(1)] the components are installed to capture carbon
106	106	dioxide from an anthropogenic emission source, transport or inject
107	107	carbon dioxide from such a source, or prepare carbon dioxide from
108	108	such a source for transportation or injection[;] and:
109	109	(1) [(2)] the carbon dioxide is sequestered in this
110	110	state[:
111	111	[(A)] as part of an enhanced oil recovery project
112	112	that qualifies for a tax rate reduction under Section 202.0545, as
113	113	provided by Subsection (c) of that section; or
114	114	(2) the components are used in connection with the
115	115	capture, use, reuse, storage, or sequestration of carbon dioxide
116	116	emissions for the principal purpose of preventing [(B) in a manner
117	117	and under conditions that create a reasonable expectation that at
118	118	least 99 percent of the] carbon dioxide [will remain sequestered
119	119	from] from entering the atmosphere [for at least 1,000 years].
120	120	SECTION 4. The change in law made by this Act to Section
121	121	151.334, Tax Code, does not affect tax liability accruing before
122	122	the effective date of this Act. That liability continues in effect
123	123	as if this Act had not been enacted, and the former law is continued
124	124	in effect for the collection of taxes due and for civil and criminal
125	125	enforcement of the liability for those taxes.
126	126	SECTION 5. This Act takes effect September 1, 2023.