Texas
A ^^>Jl United States
*S*b^~r~Mim. Environmental Protection
^t^kl *m Agency
State Incentives for Achieving Clean and Renewable "
Energy Development on Contaminated Lands
The development of dean and renewable energy on formerly used land offers many economic and environmental benefits. Combining dean and renewable ~~*
energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects.
This document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Incentives for Clean and Renewable Energy
Tax Incentives (abatements, credits, deductions, etc.)
Texas Franchise Tax Exemption
www.seco.cpa.state.tx.us/rejncentives-taxcode-statutes.htm
Provides a franchise tax exemption to manufacturers, sellers, or installers
of solar energy devices, which allows for the deduction of the total cost of
the system from the company's taxable capital or 10% of the system's cost
off the company's income.
Technical Assistance and Other Incentives _
Renewable Energy Credit (REC)
www.seco.cpa.state.tx.us/rejps-portfolio.htm
Creates flexibility in the development of renewable energy projects through
an REC trading system. The program is anticipated to continue through 2019.
Innovative Energy Demonstration Project
www.seco.cpa.state.tx.us/re.htm
Funds solar, wind, and biomass demonstration projects throughout Texas,
and sponsors conferences, workshops, and educational efforts that
motivate Texans to use and promote all renewable energy systems in their
communities.
Net Metering _
www.puc.state.tx.us/rules/subrules/electric/25.242/25.242ei.cfm
Requires Texas utilities to offer a net metering option to qualifying facilities
of 50 kW or less, using renewable energy resources. There is no statewide
limit on the number of customers or total capacity under the net metering
program.
Quick Facts
Public Benefit Fund (PBF)
Renewable Portfolio Standard
5,880 MW by 2015
Net Metering
Interconnection Standards
Yes D No 0
Yes 0 No D
Yes 0 No D
Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 0.4% Nuclear 10.3%
Natural Gas-Fired 49.0% Hydroelectric 0.2%
Coal-Fired 36.5% Other Renewables 2.0%
Points of Contact
Texas Franchise Tax Exemption
Theresa Bostick, (512) 305-9952
REC, Innovative Energy Demonstration Program
Pam Grace, pam.groce@cpa.state.tx.us (512) 463-1889 or
1-800-531-5441, Ext. 3-1889
Net Metering
Public Utility Commission of Texas
customer@puc.state.tx.us, (512) 936-7000
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
Texas Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Railroad Commission of Texas (RRC) Brownfield Response
Program (BRP)/Voluntary Cleanup Program
www.rrc.state.tx.us/divisions/og/brownfield/index.html
Provides EPA grant funding for environmental site assessments. Provides
an incentive to remediate oil and gas-related pollution by participants as
long as they did not cause or contribute to the contamination. RRC
promotes voluntary cleanups by identifying brownfield sites associated with
exploration and production.
Tax Incentives (abatements, credits, deductions, etc.)
State Property Tax Incentives for Brownfields Redevelopment
(Ad Valorem Property Tax Abatements)
www.tceq.state.tx.us/remediation/bsa/bsa.html#prop
Provides state property tax incentives for brownfields redevelopment. To
be eligible, the real property must: 1) be located in a reinvestment zone
created under Section 311 of the Texas Tax Code; 2) not be in an
improvement project financed by tax increment bonds; and 3) have
received a Certificate of Completion (COC) from the voluntary cleanup
program (VCP). The governing body must enter into a tax abatement
agreement with the owner of the property. The governing body is allowed
to exempt from taxation: 1) not more than 100% of the value of the
property in the first year covered by the agreement; 2) not more than 75%
of the value of the property in the second year covered by the agreement;
3) not more than 50% of the value of the property in the third year covered
by the agreement; and 4) not more than 25% of the value of the property in
the fourth year covered by the agreement.
Technical Assistance and Other Incentives
Technical Assistance to Local Governments
www.tceq.state.tx.us/remediation/bsa/bsa.html#assist
Allows state to provide technical advice, education, and project partnering
(including partnering with other federal and state agencies) for some
brownfields redevelopment projects owned by local governments, or where
the local government plays a key role in the redevelopment.
Innocent Owner Program (IOP)
www.tceq.state.tx.us/remediation/iop/iop.html
Provides a certificate to an innocent owner or operator if their property is
contaminated as a result of a release or migration of contaminants from a
source or sources not located on the property, and they did not cause or
contribute to the source or sources of contamination. Like the Texas VCP,
the IOP can be used as a redevelopment tool or as a tool to add value to a
contaminated property by providing an Innocent Owner/Operator
Certificate (IOC). However, unlike the VCP release of liability, lOCs are not
transferable to future owners/operators. Future innocent owners or
operators are eligible to enter the IOP and may receive an IOC only after
they become an owner or operator of the site.
Limitations on Liability
Texas Voluntary Cleanup Program
www. tceq. state, tx. us/remediation/vcpA/cp. html#Database
Provides that any site not subject to response actions under RRC authority
or an order or permit from the Texas Commission on Environmental Quality
(TCEQ), or where TCEQ enforcement action is pending, is eligible to enter
the voluntary cleanup program. Provides parties with a COC after cleanup
completion. The COC states that all non-responsible parties are released
from all liability to the state for cleanup of areas covered.
Quick Facts
Yes 0 No D
1,955
Limitations on Liability
Number of State-Tracked Contaminated Properties:
Includes Voluntary Remediation Program
Number of EPA CERCLIS Sites: 488
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 493
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Texas.
Points of Contact
RRC BRP/Voluntary Cleanup Program, Texas Voluntary Cleanup
Program Limitations on Liability
Aimee Beveridge, aimee.beveridge@rrc.state.tx.us, (512) 463-7995
State Property Tax Incentives for Brownfields Redevelopment,
Technical Assistance to Local Governments, IOP
Mike Frew, mfrew@tceq.state.tx.us, (512) 239-5872
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Texas Incentives for Development of Contaminated Land - Page 2
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