Putting a clean coal demonstration project on the ground takes more than know-how. It takes financial capital, environmental permits, and the right geology. Texas is ideal for clean coal projects.
- The state legislature has created generous financial incentives to help minimize the risk experimental projects pose for companies.
- Texas has streamlined the permitting process for clean coal projects.
- Extensive community commitments to clean coal projects.
Legislative financial incentives
In 2007, the state Legislature passed HB 3732, a bill designed to give Texas the highest clean-energy standards in the nation and help local communities build clean power facilities.
Financial incentives include:
- $30 million in grants and loans on clean power generation projects
- $250 million from the sale proceeds of general obligation bonds (if a subsequent constitutional amendment is passed)
- Eliminates the gross receipts tax for the sale of electricity generated by clean energy projects (about 2%)
- Property tax exemptions and abatement eligibility
- 75% Severance tax exemption for oil recovered from Enhanced Oil Recovery (EOR) projects using man-made CO2
The bill also helps keep projects on track with “time-certain” permitting processes
- TCEQ approval within 18 months
- Technical review within 9 months
- Public hearing process within 9 months
- Preserves public input
Another feature of the bill is that it overcomes the barriers “Best Available Control Technology” (BACT) and “Lowest Achievable Emissions Rate” (LAER) standards would pose to disqualifying valuable projects.
- New clean energy projects do not have to prove they have been successfully operated on a commercial scale
- New clean energy projects do not have to set new emissions-reducing records in order to qualify for assistance
HB 3732 also sets clear emissions standards for projects to qualify for assistance. They are:
- Reduce sulfur dioxide (SOX) emissions by 99%
- Reduce mercury emissions by 95%
- Meet a nitrogen dioxide (NOX) emissions rate of no more than 0.05 pounds per million BTUs
- Render CO2 capable of capture, sequestration, or abatement.
