Legislature OKs Harcastles Advanced Clean Energy Bill

AUSTIN Texas – The state of Texas will become the first state in the nation to adopt a regulatory framework that will reward energy companies who can meet advanced clean energy emission standards when Governor Rick Perry signs House Bill 3732 which passed the Texas Legislature on the last night of the 80th Legislative Session.

Texas House Energy Resources Committee Chairman Rick Hardcastle of Vernon today announced passage of the legislation that gives Texas the highest clean-energy standards in the nation for any new advanced clean energy projects and that will help local communities build clean power facilities.

"House Bill 3732 means cleaner air cleaner energy and a cleaner Texas. Through financial tax and regulatory incentives this legislation encourages the development of advanced clean energy projects that will use the next generation of technology to produce cleaner more affordable and more reliable electricity" said Hardcastle the author of HB 3732.

The Texas Legislature late Monday sent the bill to Governor Rick Perry for his consideration.

Hardcastle noted that HB 3732 has already attracted statewide praise as the only significant air quality bill to pass the legislature in 2007.

The Dallas Morning News identified this legislation as one of the top 10 steps the Legislature should take in 2007 to ensure cleaner air.

To qualify as an advanced clean energy project and be eligible for the incentives under this bill an energy plant must meet all four of the following emissions standards.  Although these are clean coal emissions goals the federal government has set for 2020 Texas projects will have to meet them 12 years earlier:

• Reduce sulfur dioxide (SOx) emissions by 99 percent
• Reduce mercury emissions by 95 percent
• Meet a nitrogen dioxide (NOx) emissions rate of no more than 0.05 pounds per million BTUs
• And be carbon-capture ready.

Projects meeting these standards can share in $20 million in grants $10 million in loans and are assured a decision will be made on their permit application within 18 months.

Hardcastle said HB 3732 is also an important economic development tool for rural areas because it will promote the building of FutureGen-like clean power plants.

"Regional Councils of Government and cities throughout Texas including the city of Vernon have identified local resources that are available to build clean energy projects. This legislation puts in place real incentives and offers concrete support that is available to help get these local projects built" Hardcastle said.