CHAPTER 120. VERIFICATION, MONITORING, AND CERTIFICATION OF CLEAN ENERGY PROJECT
NATURAL RESOURCES CODE
TITLE 3. OIL AND GAS
SUBTITLE D. REGULATION OF SPECIFIC BUSINESSES AND OCCUPATIONS
CHAPTER 120. VERIFICATION, MONITORING, AND CERTIFICATION OF CLEAN
ENERGY PROJECT
Chapter 120, consisting of Secs. 120.001 to 120.004, was added by
Acts 2009, 81st Leg., R.S., Ch.
1109, Sec. 3.
For another Chapter 120, consisting of Secs. 120.001 to 120.004,
added by Acts 2009, 81st Leg., R.S., Ch.
224, Sec. 7, see Sec. 120.001 et seq., post.
Sec. 120.001. DEFINITIONS. In this chapter:
(1) "Bureau" means the Bureau of Economic Geology of The
University of Texas at Austin.
(2) "Clean energy project" means a project to construct a
coal-fueled or petroleum coke-fueled electric generating
facility, including a facility in which the fuel is gasified
before combustion, that will:
(A) have a capacity of at least 200 megawatts;
(B) meet the emissions profile for an advanced clean energy
project under Section 382.003(1-a)(B), Health and Safety Code;
(C) capture at least 70 percent of the carbon dioxide resulting
from or associated with the generation of electricity by the
facility;
(D) be capable of permanently sequestering in a geological
formation the carbon dioxide captured; and
(E) be capable of supplying the carbon dioxide captured for
purposes of an enhanced oil recovery project.
(3) "Commission" means the Railroad Commission of Texas.
(4) "Sequester" means to inject carbon dioxide into a geological
formation in a manner and under conditions that create a
reasonable expectation that at least 99 percent of the carbon
dioxide injected will remain sequestered from the atmosphere for
at least 1,000 years.
Added by Acts 2009, 81st Leg., R.S., Ch.
1109, Sec. 3, eff. September 1, 2009.
Sec. 120.002. CERTIFICATION OF CLEAN ENERGY PROJECT. (a) The
commission is the authority responsible for certifying whether a
project has met the requirements for a clean energy project.
(b) An entity may apply to the commission for a certification
that a project operated by the entity meets the requirements for
a clean energy project. The application must be accompanied by:
(1) a certificate from a qualified independent engineer that the
project is operational and meets the standards provided by
Sections 120.001(2)(A), (B), and (C); and
(2) a fee payable to the commission.
(c) The amount of the fee prescribed by Subsection (b)(2) is
$50,000 unless the commission by rule determines that a fee in a
greater amount is necessary to cover the commission's costs of
processing an application.
Added by Acts 2009, 81st Leg., R.S., Ch.
1109, Sec. 3, eff. September 1, 2009.
Sec. 120.003. MONITORING OF SEQUESTERED CARBON DIOXIDE. (a) An
entity that applies to the commission under Section 120.002 for a
certification that a project operated by the entity meets the
requirements for a clean energy project is responsible for
conducting a monitoring, measuring, and verification process that
demonstrates that the project complies with the requirements of
Section 490.352(b)(4), Government Code.
(b) The entity shall contract with the bureau for the bureau to:
(1) design initial protocols and standards for the process
described by Subsection (a);
(2) review the conduct of the process described by Subsection
(a) in order to make any necessary changes in the design of the
protocols and standards;
(3) evaluate the results of the process described by Subsection
(a);
(4) provide an evaluation of the results of the process
described by Subsection (a) to the commission; and
(5) determine whether to transmit to the comptroller the
verification described by Section 490.352(b)(4), Government Code.
(c) Unless otherwise agreed by the entity and the bureau, a
contract required by Subsection (b) must require the entity to
compensate the bureau by paying an annual fee in accordance with
the following schedule:
Year Amount
One $700,000
Two $1,300,000
Three $1,800,000
Four $1,500,000
Five $1,200,000
Six $900,000
Seven $500,000
Eight $200,000
(d) The first payment under Subsection (c) is due not later than
24 months before the date the entity first supplies carbon
dioxide captured by the project to an enhanced oil recovery
project.
Added by Acts 2009, 81st Leg., R.S., Ch.
1109, Sec. 3, eff. September 1, 2009.
Sec. 120.004. ISSUANCE OF CERTIFICATE OF COMPLIANCE. (a) On
verification that a project meets the requirements for
certification as a clean energy project, the commission shall
issue a certificate of compliance for the project to the entity
operating the project and shall provide a copy of the certificate
to the comptroller.
(b) The commission may not issue a certificate of compliance for
more than three clean energy projects.
Added by Acts 2009, 81st Leg., R.S., Ch.
1109, Sec. 3, eff. September 1, 2009.