81st Texas Legislative Session At-a-Glance
The 81st Legislative Session was highly successful for the future of clean coal technology in Texas. Several bills were signed into law providing financial incentives for clean coal projects statewide. This combination of laws is the most comprehensive incentive package for clean coal projects in the nation.
HB 469 and SB 2111
(Rep. Phil King/Sen. Kel Seliger)
The combination of these laws established a two-tiered incentive package for clean coal projects in Texas. Projects that capture at least 50 percent of their CO2 emissions are eligible for sales tax exemptions for the equipment that captures, transports and stores the CO2, as well as more freedom for local taxing authorities to defer taxes in the early years of a project’s development. Additionally, the first three projects that reach 70 percent carbon capture will qualify for an additional $100 million (per project) franchise tax credit.
HB 469 also provides a 75 percent, 30-year severance tax exemption for oil recovered using CO2 captured from man-made emission source. These financial benefits will attract projects using carbon capture and sequestration as well as enhanced oil recovery with captured CO2.
HB 3676
(Rep. Joe Heflin/Sen. Kel Seliger)
This law extends the Texas Economic Development Act until December 31, 2014, thus enabling local school districts more tax freedoms to attract major clean coal projects, some worth several billion dollars, to their areas (Chapter 313 of the Tax Code).
HB 3896
(Rep. Rene Olivieira/Sen. Kel Seliger)
This law extends the authority of cities, counties and other taxing jurisdictions, giving them more freedom to attract major economic developments, including major energy projects. Without this legislation, this authority would have expired in September 2009. The law extends the authority for 10 years (Chapter 312 of the Tax Code).
SB 1387
(Sen. Kel Seliger/Rep. Myra Crownover)
This law clarifies the short-term jurisdiction responsibilities of the RRC and TCEQ regarding enhanced oil recovery operations involving man-made CO2, setting in motion an interim study process for the two agencies to develop a proposed long-term regulatory framework for CO2 storage activities.
Financial Incentives for Promoting Commercially Viable Projects
The challenge of the clean coal industry is not necessarily to develop newer solutions for controlling carbon emissions, but rather to advance existing technologies to become viable on a commercial scale. Initiatives to take these technologies to the commercial production level require a good deal of investment. The Department of Energy has granted $500-700 million for research in Texas. With continued grant funding and energy-friendly financial legislation Texas can remain on top and continue to develop cutting-edge clean coal technology for the state and nation.
Texas Legislative Incentives for Clean Coal Projects
