H.B. No. 3837

	AN ACT
	relating to the designation of advanced clean energy projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 382.003(1-a), Health and Safety Code, is
	amended to read as follows:
	(1-a)  "Advanced clean energy project" means:
	(A)  a project for which an application for a
	permit or for an authorization to use a standard permit under this
	chapter is received by the commission on or after January 1, 2008,
	and before January 1, 2020, and that:
	(i) [(A)]  involves the use of coal,
	biomass, petroleum coke, solid waste, natural gas, or fuel cells
	using hydrogen derived from such fuels, in the generation of
	electricity, or the creation of liquid fuels outside of the
	existing fuel production infrastructure while co-generating
	electricity, whether the project is implemented in connection with
	the construction of a new facility or in connection with the
	modification of an existing facility and whether the project
	involves the entire emissions stream from the facility or only a
	portion of the emissions stream from the facility;
	(ii) [(B)]  with regard to the portion of the
	emissions stream from the facility that is associated with the
	project, is capable of achieving:
	(a) [(i)]  on an annual basis:
	(1) [(a)]  a 99 percent or
	greater reduction of sulfur dioxide emissions;
	(2) [(b)]  if the project is
	designed for the use of feedstock, substantially all of which is
	subbituminous coal, an emission rate of 0.04 pounds or less of
	sulfur dioxide per million British thermal units as determined by a
	30-day average; or
	(3) [(c)]  if the project is
	designed for the use of one or more combustion turbines that burn
	natural gas, a sulfur dioxide emission rate that meets best
	available control technology requirements as determined by the
	commission;
	(b) [(ii)]  on an annual basis:
	(1) [(a)]  a 95 percent or
	greater reduction of mercury emissions; or
	(2) [(b)]  if the project is
	designed for the use of one or more combustion turbines that burn
	natural gas, a mercury emission rate that complies with applicable
	federal requirements;
	(c) [(iii)]  an annual average
	emission rate for nitrogen oxides of:
	(1) [(a)]  0.05 pounds or less
	per million British thermal units;
	(2) [(b)]  if the project uses
	gasification technology, 0.034 pounds or less per million British
	thermal units; or
	(3) [(c)]  if the project is
	designed for the use of one or more combustion turbines that burn
	natural gas, two parts per million by volume; and
	(d) [(iv)]  an annual average emission
	rate for filterable particulate matter of 0.015 pounds or less per
	million British thermal units; and
	(iii) [(C)]  captures not less than 50
	percent of the carbon dioxide in the portion of the emissions stream
	from the facility that is associated with the project and
	sequesters that captured carbon dioxide by geologic storage or
	other means; or
	(B)  a project that is a facility:
	(i)  for which an authorization to use a
	standard permit was approved after January 1, 2020, but before
	September 1, 2023; and
	(ii)  that:
	(a)  utilizes natural gas to create
	methanol; and
	(b)  converts methanol to zero-sulfur
	transportation fuels.
	SECTION 2.  Section 391.002(b), Health and Safety Code, is
	amended to read as follows:
	(b)  Projects that may be considered for a grant under the
	program include:
	(1)  advanced clean energy projects, as defined by
	Section 382.003(1-a)(A) [382.003];
	(2)  new technology projects that reduce emissions of
	regulated pollutants from stationary sources;
	(3)  new technology projects that reduce emissions from
	upstream and midstream oil and gas production, completions,
	gathering, storage, processing, and transmission activities
	through:
	(A)  the replacement, repower, or retrofit of
	stationary compressor engines;
	(B)  the installation of systems to reduce or
	eliminate the loss of gas, flaring of gas, or burning of gas using
	other combustion control devices; or
	(C)  the installation of systems that reduce
	flaring emissions and other site emissions; and
	(4)  electricity storage projects related to renewable
	energy, including projects to store electricity produced from wind
	and solar generation that provide efficient means of making the
	stored energy available during periods of peak energy use.
	SECTION 3.  This Act takes effect September 1, 2023.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3837 was passed by the House on April
	28, 2023, by the following vote:  Yeas 141, Nays 6, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 3837 on May 25, 2023, by the following vote:  Yeas 122, Nays 18,
	3 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3837 was passed by the Senate, with
	amendments, on May 22, 2023, by the following vote:  Yeas 26, Nays
	5.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor