Issues

In addition to the new conservation measures, the legislature took steps to promote cleaner energy and cleaner air. A more predictable permitting process for the installation of ultra clean energy has now been established. An ultra clean energy grant and loan program has been created that will provide the State Energy Conservation Office with significant resources to encourage the development of ultra clean energy technology. Financial incentives are now in place for ultra clean energy projects by allowing limitations on the appraised value of property used for such purposes, enhancing pollution control property tax exemptions, and providing tax incentives for ultra clean coal technology.

The uses of both the Texas Emissions Reduction Program and the Low Income Vehicle Repair Assistance Program (LIRAP) has now been expanded to help reduce emissions from mobile sources, increase the number of individuals eligible for grants under LIRAP and increase the amount of the grant for purchase of a new vehicle and the retirement of older vehicles with higher emissions. Statewide emissions are to now be reduced from electrical generation units by providing for the update of building energy codes, encouraging the purchase of efficient appliances and providing efficiency standards for school districts, institutions of higher education, state agencies and governmental entities in counties.

Strong measures have been passed to attract the FutureGen clean coal project to Texas. These include tax incentives, a university program for long term moni¬toring of carbon dioxide and liability protection for plant owners or operators. FutureGen is a $1 billion public-private venture to design, build and operate the world’s first near-zero-emissions, fossil-fueled power plant. This energy facility will use a variety of coals to produce electricity and hydrogen, and will capture and store carbon dioxide. Texas has two of the four finalists for the site, and both are strong candidates to attract this first-of-its-kind clean energy venture.