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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (9019)	6/4/2009 6:09:31 PM
From: RetiredNow	Respond to of 86356

Texas takes the lead in renewable energy legislation. That's the Texas I know and love. Texas Legislature Passes Clean Sweep on Clean Carbon Incentives By: Mike Nasi and Travis Wussow The 81st Texas Legislature passed sweeping legislation designed to ensure that Texas remains a leader in next-generation clean carbon technology, which is the use of advanced, low-pollution electricity generation from coal, petroleum coke, solid waste, and biomass. Momentum behind clean carbon technology incentives carried forward from bills passed in the 2007 session into the 2009 legislative session with the filing of several additional clean carbon incentive bills by key members of the House and Senate. The end result was the passage of a series of measures that combined the various bills to establish the most comprehensive incentive package for clean carbon projects in the nation. Two-Tiered Sales, Property, and Franchise Tax Credits The combination of HB 469 (Rep. Phil King/Sen. Kel Seliger) and key elements of SB 2111 (Sen. Kip Averitt/Rep. Rick Hardcastle) resulted in the final passage of HB 469, which establishes a two-tiered incentive package for clean carbon projects in Texas. Projects that capture at least 50% of their CO2 emissions are eligible for sales tax exemptions for the equipment that captures, transports, and stores their CO2. That tier of projects is also eligible for key tax incentives at the local level as the bill provides local taxing authorities more freedom to defer taxes in the early years of a project's development. These tax abatement agreements can fundamentally change the economics of clean carbon projects in Texas. The first three projects that can achieve a 70% carbon capture rate will quality for an additional bonus—a $100 million per-project franchise tax credit. Finally, a subtle but key change in the definition of "advanced clean energy project" will make all of these incentives (except the franchise tax credit) available for retrofit projects, including slipstream carbon capture and sequestration projects that will be essential to the commercialization of full-scale carbon capture projects. Severance Tax Exemption Another key incentive in HB 469 provides a 75%, 30-year severance tax exemption for oil recovered using CO2 captured from a man-made emission source. The financial benefits of this incentive will play a key role in attracting the first carbon capture projects to Texas, where there are significant opportunities for enhanced oil recovery using CO2—an established practice in Texas for over 35 years. Offshore Carbon Repository The Texas Legislature also passed HB 1796 (Rep. Warren Chisum/Sen. Kirk Watson), which sets in motion an offshore carbon repository program that will ensure Texas becomes a leader in the capture and sequestration of CO2, paving the way for the creation of a multi-billion dollar carbon sequestration industry in Texas. Not only will this legislation bring cutting-edge carbon sequestration technology to the state, it will also create a network of CO2 pipelines throughout Texas that can be tapped for enhanced oil recovery. New Technology Grant Program A key element of Senator Averitt's omnibus clean air legislation, SB 16, was included in HB 1796 to establish a grant program for new emission-reducing technology, including clean coal technology and carbon capture and sequestration projects. The funding for this grant program was included in the TCEQ budget in the general appropriations act. Energy storage projects are also eligible for grants under the program, which could pave the way for utility scale solar energy projects and further expansion of Texas wind power. Other Clean Carbon-Benefitting Legislation From the 2009 Legislative Session HB 3676 (Rep. Joe Heflin/Sen. Kel Seliger) Extends the Texas Economic Development Act until December 31, 2014, enabling local school districts more tax freedom to attract major projects, some worth several billion dollars to their areas (313 of the Texas Tax Code). HB 3896 (Rep. Rene Oliviera/Sen. Kel Seliger) Extends the authority of cities, counties, and other taxing jurisdiction more freedom to attract major economic developments, including major energy projects. Without this legislation, this authority would have expired in September 2009. The bill extends the authority for ten years (Chapter 312 of the Texas Tax Code). HB 1387 (Rep. Myra Crownover/Sen. Kel Seliger) Addresses the regulatory oversight of CO2 capture and storage between the Railroad Commission of Texas and the Texas Commission on Environmental Quality.