State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > 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.

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > 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.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > 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.