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Amend CSHB 469 (Senate committee report) as follows:
(1) Strike SECTIONS 1, 2, and 3 of the bill (page 1, lines
15-29).
(2) Strike the recital to SECTION 4 of the bill (page 1,
lines 30 and 31) and substitute the following:
SECTION 1. Chapter 490, Government Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. CLEAN ENERGY PROJECTS
Sec. 490.351. DEFINITION. In this subchapter, "clean
energy project" has the meaning assigned by Section 120.001,
Natural Resources Code.
(3) In SECTION 4 of the bill, strike the heading to added
Section 490.305, Government Code (page 1, lines 32 and 33), and
substitute the following:
Sec. 490.352. FRANCHISE TAX CREDIT FOR CLEAN ENERGY
PROJECT.
(4) At the end of SECTION 4 of the bill, immediately
following added Section 490.305, Government Code (page 2, between
lines 8 and 9), insert the following:
Sec. 490.353. USE OF MONEY FOR CLEAN ENERGY PROJECTS. (a)
Notwithstanding Section 490.102, the governor may allocate under
this section proceeds deposited in the fund to eligible applicants
if the governor has the express written agreement of the lieutenant
governor and the speaker of the house of representatives to do so.
(b) An allocation under this section may take the form of an
investment in the form of equity, a convertible note, a debt
instrument, a grant, a matching grant, or any combination of those
methods.
(c) Before making an allocation under this subchapter, the
governor shall enter into a written agreement with the entity to
which the allocation is to be awarded.
(d) An applicant for an allocation under this section must
provide any information considered necessary by the governor to
determine whether the applicant qualifies for an allocation.
(e) In addition to any other provisions of this chapter, a
clean energy project constitutes an opportunity for emerging
technology suitable for consideration for an allocation under this
section. Sections 490.102 and 490.103 and Subchapters D, E, and F
do not apply to an allocation made pursuant to this section.
(5) In SECTION 5 of the bill, strike added Section
120.001(2)(B), Natural Resources Code (page 2, lines 21-30), and
substitute the following:
(B) meet the emissions profile for an advanced
clean energy project under Section 382.003(1-a)(B), Health and
Safety Code;
(6) In SECTION 5 of the bill, in added Section 120.003(a),
Natural Resources Code (page 2, line 66), strike "490.305(b)(4)"
and substitute "490.352(b)(4)".
(7) In SECTION 5 of the bill, in added Section
120.003(b)(5), Natural Resources Code (page 3, line 10), strike
"Section 490.305(b)(4)" and substitute "Section 490.352(b)(4)".
(8) In SECTION 6 of the bill, in the heading to added Section
151.334, Tax Code (page 3, line 40), strike "GEOLOGIC".
(9) In SECTION 6 of the bill, in added Section 151.334(2),
Tax Code (page 3, line 50), strike "geologically".
(10) In SECTION 6 of the bill, in added Section
151.334(2)(B), Tax Code (page 3, line 57), strike "injected".
(11) Strike SECTION 7 of the bill (page 3, lines 59-68).
(12) In SECTION 8 of the bill (page 4, line 1), strike
"490.305" and substitute "490.352".
(13) Add the following SECTIONS to the bill, appropriately
numbered:
SECTION ___. Section 382.003(1-a), Health and Safety Code,
is amended to read as follows:
(1-a) "Advanced clean energy project" means 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:
(A) involves the use of coal, biomass, petroleum
coke, solid waste, 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;
(B) with regard to the portion of the emissions
stream from the facility that is associated with the project, is
capable of achieving:
(i) on an annual basis a 99 percent or
greater reduction of sulfur dioxide emissions or, 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;
(ii) on an annual basis [,] a 95 percent or
greater reduction of mercury emissions;
(iii) [, and] an annual average emission
rate for nitrogen oxides of:
(a) 0.05 pounds or less per million
British thermal units; or
(b) if the project uses gasification
technology, 0.034 pounds or less per million British thermal units;
and
(iv) an annual average emission rate for
filterable particulate matter of 0.015 pounds or less per million
British thermal units; and
(C) captures not less than 50 percent of the
[renders] 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 [capable of capture, sequestration, or abatement if any
carbon dioxide is produced by the project].
SECTION ____. Subsections (a) and (d), Section 202.0545,
Tax Code, are amended to read as follows:
(a) Subject to the limitations provided by this section,
until [the later of] the 30th [seventh] anniversary of the date that
the comptroller first approves an application for a tax rate
reduction under this section [or the effective date of a final rule
adopted by the United States Environmental Protection Agency
regulating carbon dioxide as a pollutant], the producer of oil
recovered through an enhanced oil recovery project that qualifies
under Section 202.054 for the recovered oil tax rate provided by
Section 202.052(b) is entitled to an additional 50 percent
reduction in that tax rate if in the recovery of the oil the
enhanced oil recovery project uses carbon dioxide that:
(1) is captured from an anthropogenic source in this
state;
(2) would otherwise be released into the atmosphere as
industrial emissions;
(3) is measurable at the source of capture; and
(4) is sequestered in one or more geological
formations in this state following the enhanced oil recovery
process.
(d) An agency to which an operator applies for a
certification under Subsection (c)(2) may issue the certification
only if the agency finds that, based on substantial evidence, there
is a reasonable expectation that:
(1) [the operator's planned sequestration program will
ensure that] at least 99 percent of the carbon dioxide sequestered
as required by Subsection (a)(4) will remain sequestered for at
least 1,000 years; and
(2) the operator's planned sequestration program will
include appropriately designed monitoring and verification
measures that will be employed for a period sufficient to
demonstrate whether the sequestration program is performing as
expected.
SECTION ____. Subdivision (4), Section 313.021, Tax Code,
is amended to read as follows:
(4) "Qualifying time period" means:
(A) the first two tax years that begin on or after
the date a person's application for a limitation on appraised value
under this subchapter is approved, except as provided by Paragraph
(B) or (C); [or]
(B) in connection with a nuclear electric power
generation facility, the first seven tax years that begin on or
after the third anniversary of the date the school district
approves the property owner's application for a limitation on
appraised value under this subchapter, unless a shorter time period
is agreed to by the governing body of the school district and the
property owner; or
(C) in connection with an advanced clean energy
project, as defined by Section 382.003, Health and Safety Code, the
first five tax years that begin on or after the third anniversary of
the date the school district approves the property owner's
application for a limitation on appraised value under this
subchapter, unless a shorter time period is agreed to by the
governing body of the school district and the property owner.
SECTION ____. Subchapter M, Chapter 5, Water Code, is
amended by adding Section 5.559 to read as follows:
Sec. 5.559. ADVANCED CLEAN ENERGY PROJECT PERMITTING
PROCEDURE. (a) In this section, "advanced clean energy project"
has the meaning assigned by Section 382.003, Health and Safety
Code.
(b) As authorized by federal law, not later than nine months
after the executive director declares an application for a permit
under Chapter 26 for an advanced clean energy project to be
administratively complete, the executive director shall complete
the technical review of the application.
(c) The commission shall issue a final order issuing or
denying the permit not later than nine months after the executive
director declares the application technically complete. The
commission may extend the deadline set out in this subsection up to
three months if it determines that the number of complex pending
applications for permits under this chapter will prevent the
commission from meeting the deadline imposed by this subsection
without creating an extraordinary burden on the resources of the
commission.
(d) The permit process authorized by this section is subject
to the requirements relating to a contested case hearing under this
chapter or Subchapters C-G, Chapter 2001, Government Code, as
applicable.
(e) The commission shall adopt rules to implement this
section.
SECTION ____. (a) Not later than September 1, 2010,
September 1, 2012, and September 1, 2016, the Texas Commission on
Environmental Quality shall make recommendations to the
legislature on whether the emissions profile set out in Sections
120.001(2)(B) and (C), Natural Resources Code, as added by this
Act, and Sections 382.003(1-a)(B) and (C), Health and Safety Code,
as amended by this Act, should be adjusted to increase or decrease
elements of the emissions profile. Before making its
recommendations, the commission shall determine whether any
commercially demonstrated electric generating facility operating
in the United States that meets the criteria and emissions profile
specified by Section 120.001(2), Natural Resources Code, as added
by this Act, is capturing and sequestering a greater percentage of
the carbon dioxide in the emissions stream from the facility than
would be required to meet the emissions profile set out in that
subdivision and whether any commercially demonstrated electric
generating facility operating in the United States that meets the
criteria and emissions profile specified by Sections
382.003(1-a)(A), (B), and (C), Health and Safety Code, as amended
by this Act, is capturing and sequestering a greater percentage of
the carbon dioxide in the emissions stream from the facility than
would be required to meet the emissions profile set out in those
paragraphs. If at least one such facility exists, the commission
shall recommend raising the minimum percentage of carbon dioxide in
the emissions stream from a facility that is required to be captured
and sequestered for the facility to qualify as a clean energy
project or advanced clean energy project to the highest percentage
of carbon dioxide that is being captured and sequestered by such a
facility.
(b) Factors that must be considered in the assessment of the
emissions profile include:
(1) the technical and economic feasibility of meeting
all of the elements of the emissions profile set out in Sections
120.001(2)(B) and (C), Natural Resources Code, as added by this
Act, or Sections 382.003(1-a)(A), (B), and (C), Health and Safety
Code, as amended by this Act, in a commercially viable project, as
documented by the United States Department of Energy;
(2) the technical and economic feasibility of projects
to meet all of the elements of the emissions profile and still use a
diverse range of fuels, including lignite; and
(3) the adequacy of the incentives provided by this
Act, or similar legislation that becomes law, to continue to
attract investment in and federal funding for clean energy projects
and advanced clean energy projects in this state.
(c) Any adjustments to the emissions profile implemented by
the legislature in response to a report required by this section do
not apply to an application considered administratively complete on
or before the date the adjustment takes effect.
SECTION ____. Not later than January 1, 2010, the Texas
Commission on Environmental Quality shall adopt rules as necessary
to implement Section 382.003, Health and Safety Code, as amended by
this Act, and Section 5.559, Water Code, as added by this Act.
SECTION ____. The Railroad Commission of Texas may adopt
rules as necessary to implement Section 202.0545, Tax Code, as
amended by this Act.
SECTION ____. The comptroller of public accounts may adopt
rules as necessary to implement Section 202.0545, Tax Code, as
amended by this Act.
(14) Renumber the existing SECTIONS of the bill
accordingly.