H.B. No. 149




AN ACT

relating to the ownership and use of carbon dioxide captured by a 
clean coal project.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle D, Title 3, Natural Resources Code, is 
amended by adding Chapter 119 to read as follows:

CHAPTER 119. OWNERSHIP OF CARBON DIOXIDE CAPTURED BY CLEAN COAL 
PROJECT
	Sec. 119.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Clean coal project" has the meaning assigned by 
Section 5.001, Water Code.
		(2)  "Commission" means the Railroad Commission of 
Texas.            
	Sec. 119.002.  ACQUISITION OF CARBON DIOXIDE.  (a)  The 
commission shall acquire title to carbon dioxide captured by a 
clean coal project.
	(b)  The right, title, and interest in carbon dioxide 
acquired under this section are the property of the commission, 
acting on behalf of the state, and shall be administered and 
controlled by the commission in the name of the state.
	(c)  A right, title, or interest acquired under this section 
does not vest in any fund created by the Texas Constitution.
	Sec. 119.003.  TRANSFER COSTS.  Carbon dioxide transferred 
to the state under Section 119.002 shall be transferred to the state 
without cost, other than administrative and legal costs incurred in 
making the transfer.
	Sec. 119.004.  LIABILITY.  The transfer of title to the state 
under Section 119.002 does not relieve an owner or operator of a 
clean coal project of liability for any act or omission regarding 
the generation of carbon dioxide performed before the carbon 
dioxide was captured.
	Sec. 119.005.  SALE OF CARBON DIOXIDE FOR BENEFICIAL USE. 
(a) The commission may sell, for enhanced oil recovery or other 
beneficial use, carbon dioxide that is:
		(1)  captured by a clean coal project; and                             
		(2)  not injected for permanent storage in a geologic 
formation.     
	(b)  The commission shall deposit any proceeds from the sale 
of carbon dioxide under this section to the credit of the general 
revenue fund.
	Sec. 119.006.  INDEMNIFICATION.  The University of Texas 
System and the permanent university fund may enter into a lease with 
the commission, or an owner or operator of a clean coal project, for 
the use of lands owned or controlled by the system or fund for 
permanent storage of carbon dioxide captured by a clean coal 
project, provided that such lease adequately indemnifies the system 
and fund against liability for personal injury or property damage 
incurred by the system or fund as a result of the escape or 
migration of the carbon dioxide after it is injected into a zone or 
reservoir.  This section does not affect the application of Chapter 
101, Civil Practice and Remedies Code, to any activity carried out 
by a governmental unit, as defined by that chapter.
	SECTION 2.  This Act takes effect September 1, 2006.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 149 was passed by the House on May 12, 
2006, by the following vote:  Yeas 143, Nays 0, 2 present,  not 
voting; and that the House concurred in Senate amendments to H.B. 
No. 149 on May 15, 2006, by the following vote:  Yeas 140, Nays 0, 1 
present, not voting.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 149 was passed by the Senate, with 
amendments, on May 15, 2006, by the following vote:  Yeas 30, Nays 
0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor