MONITORING OF SEQUESTERED CARBON DIOXIDE

(a) An entity that applies to the commission under Section 120.002 for a certification that a project operated by the entity meets the requirements for a clean energy project is responsible for conducting a monitoring, measuring, and verification process that demonstrates that the project complies with the requirements of Section 171.602(b)(4), Tax Code. (b) The entity shall contract with the bureau for the bureau to: (1) design initial protocols and standards for the process described by Subsection (a); (2) review the conduct of the process described by Subsection (a) in order to make any necessary changes in the design of the protocols and standards; (3) evaluate the results of the process described by Subsection (a); (4) provide an evaluation of the results of the process described by Subsection (a) to the commission; and (5) determine whether to transmit to the comptroller the verification described by Section 171.602(b)(4), Tax Code. (c) Unless otherwise agreed by the entity and the bureau, a contract required by Subsection (b) must require the entity to compensate the bureau by paying an annual fee in accordance with the following schedule: Year Amount One $700,000 Two $1,300,000 Three $1,800,000 Four $1,500,000 Five $1,200,000 Six $900,000 Seven $500,000 Eight $200,000 (d) The first payment under Subsection (c) is due not later than 24 months before the date the entity first supplies carbon dioxide captured by the project to an enhanced oil recovery project.