H.B. No. 2712

	AN ACT
	relating to the exemption from ad valorem taxation of energy
	storage systems used for the control of air pollution in a
	nonattainment area.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
	adding Section 11.315 to read as follows:
	Sec. 11.315.  ENERGY STORAGE SYSTEM IN NONATTAINMENT AREA.
	(a)  In this section, "energy storage system" means a device capable
	of storing energy to be discharged at a later time, including a
	chemical, mechanical, or thermal storage device.
	(b)  A person is entitled to an exemption from taxation by a
	taxing unit of an energy storage system owned by the person if:
	(1)  the exemption is adopted by the governing body of
	the taxing unit in the manner provided by law for official action by
	the governing body; and
	(2)  the energy storage system:
	(A)  is used, constructed, acquired, or installed
	wholly or partly to meet or exceed 40 C.F.R. Section 50.11 or any
	other rules or regulations adopted by any environmental protection
	agency of the United States, this state, or a political subdivision
	of this state for the prevention, monitoring, control, or reduction
	of air pollution;
	(B)  is located in:
	(i)  an area designated as a nonattainment
	area within the meaning of Section 107(d) of the federal Clean Air
	Act (42 U.S.C. Section 7407); and
	(ii)  a municipality with a population of at
	least 100,000 adjacent to a municipality with a population of more
	than two million;
	(C)  has a capacity of at least 10 megawatts; and
	(D)  is installed on or after January 1, 2014.
	(c)  Once authorized, an exemption adopted under this
	section may be repealed by the governing body of a taxing unit in
	the manner provided by law for official action by the governing
	body.
	SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
	follows:
	(c)  An exemption provided by Section 11.13, 11.131, 11.17,
	11.18, 11.182, 11.1827, 11.183, 11.19, 11.20, 11.21, 11.22,
	11.23(h), (j), or (j-1), 11.231, 11.254, 11.29, 11.30, [or] 11.31,
	or 11.315, once allowed, need not be claimed in subsequent years,
	and except as otherwise provided by Subsection (e), the exemption
	applies to the property until it changes ownership or the person's
	qualification for the exemption changes.  However, the chief
	appraiser may require a person allowed one of the exemptions in a
	prior year to file a new application to confirm the person's current
	qualification for the exemption by delivering a written notice that
	a new application is required, accompanied by an appropriate
	application form, to the person previously allowed the exemption.
	SECTION 3.  Section 26.012(6), Tax Code, is amended to read
	as follows:
	(6)  "Current total value" means the total taxable
	value of property listed on the appraisal roll for the current year,
	including all appraisal roll supplements and corrections as of the
	date of the calculation, less the taxable value of property
	exempted for the current tax year for the first time under Section
	11.31 or 11.315, except that:
	(A)  the current total value for a school district
	excludes:
	(i)  the total value of homesteads that
	qualify for a tax limitation as provided by Section 11.26; and
	(ii)  new property value of property that is
	subject to an agreement entered into under Chapter 313; and
	(B)  the current total value for a county,
	municipality, or junior college district excludes the total value
	of homesteads that qualify for a tax limitation provided by Section
	11.261.
	SECTION 4.  This Act applies only to ad valorem taxes imposed
	for a tax year that begins on or after the effective date of this
	Act.
	SECTION 5.  This Act takes effect January 1, 2014.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2712 was passed by the House on May 7,
	2013, by the following vote:  Yeas 89, Nays 38, 3 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2712 was passed by the Senate on May
	21, 2013, by the following vote:  Yeas 29, Nays 2.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor