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Texas House Passes Bill For Subsidies For Clean Coal Power Projects
Energy Business Review - May 5, 2009

Texas House of Representatives has passed a bill that will offer $100 billion subsidies for clean coal power production projects. Texas Senate is yet to look into the bill. Sponsored by Representative Phil King, R-Weatherford, the bill is a follow-up to a series of tax subsidies sanctioned in 2007 by the Legislature as part of an attempt to secure the federally sponsored ‘FutureGen’ project, a private-public partnership seeking to construct a coal-fueled power plant with no dangerous emissions.

Texas lost out in the race and Illinois bagged the FutureGen project from the Department of Energy. However, subsequently the Department of Energy terminated it.

One project close to Sweetwater and one close to Odessa are in drafting stages and could capitalize on the subsidies, which come in the shape of franchise tax credits.

Tenaska Inc. has developed the Sweetwater project, while Washington-based Summit Power Group has developed the Odessa project.

The bill would enable the Texas Railroad Commission to grant those tax credits to three power projects.


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