Bill Text: TX HB1158 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to advanced clean energy projects and certain other projects that reduce or eliminate emissions of carbon dioxide or other pollutants.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2023-05-01 - Referred to Natural Resources & Economic Development [HB1158 Detail]
Download: Texas-2023-HB1158-Engrossed.html
By: Darby | H.B. No. 1158 |
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relating to advanced clean energy projects and certain other | ||
projects that reduce or eliminate emissions of carbon dioxide or | ||
other pollutants. | ||
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 project | ||
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(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; | ||
(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) a 99 percent or greater reduction | ||
of sulfur dioxide emissions; | ||
(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 | ||
(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; | ||
(ii) on an annual basis: | ||
(a) a 95 percent or greater reduction | ||
of mercury emissions; or | ||
(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; | ||
(iii) an annual average emission rate for | ||
nitrogen oxides of: | ||
(a) 0.05 pounds or less per million | ||
British thermal units; | ||
(b) if the project uses gasification | ||
technology, 0.034 pounds or less per million British thermal units; | ||
or | ||
(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 or an emission rate that meets best | ||
available control technology requirements as determined by the | ||
commission; 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 75 [ |
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carbon dioxide in the portion of the emissions stream from the | ||
facility that is associated with the project and utilizes or | ||
sequesters, in whole or in part, that captured carbon dioxide by | ||
geologic storage or other means. | ||
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; | ||
(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; [ |
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(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; | ||
(5) projects that utilize technology to capture, use, | ||
reuse, store, gather, transport, or sequester carbon dioxide | ||
emissions from a new or existing cement plant, petrochemical plant, | ||
or electric generation facility, including a facility powered by | ||
coal, petroleum coke, natural gas, hydrogen, or ammonia, for the | ||
principal purpose of preventing carbon dioxide from entering or | ||
remaining in the atmosphere; and | ||
(6) projects that involve the use of renewable energy | ||
to produce hydrogen fuel for use in transportation, agricultural, | ||
or industrial processes and result in a reduction of pollutants | ||
entering the atmosphere. | ||
SECTION 3. Section 151.334, Tax Code, is amended to read as | ||
follows: | ||
Sec. 151.334. COMPONENTS OF TANGIBLE PERSONAL PROPERTY USED | ||
IN CONNECTION WITH CERTAIN CLEAN ENERGY PROJECTS OR BY CARBON | ||
CAPTURE FACILITIES [ |
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of tangible personal property used in connection with an advanced | ||
clean energy project, as defined by Section 382.003, Health and | ||
Safety Code, or a clean energy project, as defined by Section | ||
120.001, Natural Resources Code, or purchased and installed by a | ||
carbon capture facility are exempted from the taxes imposed by this | ||
chapter if[ |
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dioxide from the atmosphere or an anthropogenic emission source, | ||
transport or inject carbon dioxide from the atmosphere or an | ||
anthropogenic emission [ |
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from the atmosphere or an anthropogenic emission [ |
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for transportation, utilization, or injection[ |
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(1) [ |
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state[ |
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that qualifies for a tax rate reduction under Section 202.0545, as | ||
provided by Subsection (c) of that section; [ |
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(2) the components are used in connection with the | ||
capture, use, reuse, storage, transportation, or injection of | ||
carbon dioxide emissions to prevent carbon dioxide from entering or | ||
remaining in the atmosphere; or | ||
(3) the components are used in connection with the | ||
sequestration of carbon dioxide emissions [ |
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under conditions that create a reasonable expectation that at least | ||
99 percent of the carbon dioxide will remain sequestered from the | ||
atmosphere for at least 1,000 years. | ||
SECTION 4. The change in law made by this Act to Section | ||
151.334, Tax Code, does not affect tax liability accruing before | ||
the effective date of this Act. That liability continues in effect | ||
as if this Act had not been enacted, and the former law is continued | ||
in effect for the collection of taxes due and for civil and criminal | ||
enforcement of the liability for those taxes. | ||
SECTION 5. This Act takes effect September 1, 2023. |