posted on Friday, March 30, 2007 5:06 PM by Tracy Davis

Texas Legislature Considers Tax Incentives Aimed at Greenhouse Gas Emissions

On the heels of efforts in California to reduce greenhouse gas emissions by limiting the amount of coal-generated power that in-state utilities may purchase, members of the Texas Legislature are similarly aiming to provide incentives for energy companies to reduce greenhouse gas emissions and use cleaner technologies.  Proposed House Bill 270, introduced by Rep. Rafael Anchia (D-Dallas), would impose a 7.5 percent tax on coal purchased in Texas for use in the state.  The revenue raised from the new tax would be used to promote new energy technologies.  Currently, H.B. 270 is pending in the House Regulated Industries Committee.  Another proposed bill, H.B. 3431, introduced by Rep. Mark Strama (D-Travis Co.) and currently being considered by the House Ways and Means Committee, would exempt from property taxes any pollution controls installed to reduce carbon dioxide emissions in enhanced oil recovery projects.  This bill would also reduce by half the tax on oil produced in the state if carbon dioxide is used in the recovery.  The current Texas legislative session ends May 28.