By Paul Emerson
TAC Legislative Staff

In both the house and senate approximately 100 bills, including several resolutions, were filed that center around renewable energy technology.  This unofficial account is dominated by a majority of house bills.   With  the session winding down, though,only a limited number of these bills will reach the Governor‘s desk for his signature.   Highlighted below is a short explanation on a few of these bills that have steadily shown momentum as they have processed though both chambers.  The first three bills listed have successfully passed their prospective chamber (as engrossed) and have been assigned to the appropriate committee in the other chamber. 

In addition to these bills that relate to wind energy, the supplemental appropriations bill (HB 4586) introduced this session (81th Legislative Regular Session) has allocated $4.2 million for the purpose of developing and constructing the National Large Wind Turbine Research and Testing Facility on the campus of University of Houston.

SB 1311by Duncan –Relating to the authority of the commissioners court of a county to enter into an ad valorem tax abatement agreement with certain property owners. As proposed, this bill would allow a county to enter into a tax abatement agreement with a lessee of taxable real property located in a reinvestment zone.  This bill would clarify existing law that allows a county to execute a tax abatement agreement with the owner of the taxable property, but not necessarily with the lessee holder of the property.  There has been some confusion over this particular statute (312.402, Tax Code), especially since the Attorney General’s office issued opinion GA-0600.  4-21-09 Referred to House Ways and Means.

SB 1458by Seliger – Relating to the authority of the commissioners court of a county to enter into an ad valorem tax abatement agreement.Referred to House Ways and Means on 4/21:
As proposed, this bill would allow county commissioners court the authority to grant tax abatements for tangible personal property that is located in a designated reinvestment zone.  Other particular leasehold interests (owners of a leasehold interest and a lessee of taxable real property) are also covered under this bill.  In addition, SB 1458 limits the duration of a tax abatement agreement up to10 years. This bill is also applicable to municipalities. SB 1458 clarifies issues raised in the AG’s opinion (GA-0600) regarding the eligibility of property owned by a lessee for abatement. This bill is similar to SB 1311, but covers a wider area of leasehold interests.  4-21-09 Referred to House Ways and Means.

HB 394 by Rose – Relating to use of money from the Texas Enterprise Fund to benefit small businesses. As amended, this bill would require the Governor’s office when awarding grants from the Texas Enterprise Fund to consider small businesses that would create or bring additional jobs opportunities into Texas.  This bill defines small businesses as a for–profit legal entity (corporation, partnership, or sole proprietorship) that is independently owned and operated with less than 100 employees.  While the Texas Enterprise Fund has been successful over the years at expanding businesses and increasing capital investments, it has often favored larger businesses.   Wind turbine companies with less than 100 employees would also be eligible for these particular grants, even though they are not directly mentioned in the bill. 4-7-09 Referred to Senate Economic Development.

HB 977 by Burnam – Relating to use of the money from the Texas enterprise fund to promote renewable energy technology.Referred to House Calendars on 04/07:

As amended, this bill would require that at least 10 percent of the grants made though the Texas Enterprise Fund be allocated to renewable energy projects, unless the Governor determines that compliance would be inconsistent with the purpose and intent of the fund.  In addition, CSHB 977 would require the Governor’s office to submit an annual report to the legislature the number of grants awarded during the reporting period. 
Less than three percent of the Texas Enterprise Fund has been used to attract renewable energy firms in Texas.   4-14-09 Reported from committee as substituted House State Affairs

For more information concerning this article, please contact Julie Shussler or Paul Emerson at (800) 456-5974 or via email at JulieMS@county.org or PaulE@county.org.