| (a) A Tier III application requesting a partial determination
must be submitted for all property that is either not used as described
on the Tier I Table located in §17.14(a) of this title (relating
to Tier I Pollution Control Property), or does not fully satisfy the
requirements for a 100% positive use determination under this chapter.
For all property for which a partial use determination is sought,
the cost analysis procedure (CAP) described in subsection (c) of this
section must be used.
(b) The Expedited Review List in this subsection is
adopted as a nonexclusive list of facilities, devices, or methods
for the control of air, water, and/or land pollution. This table consists
of the list located in Texas Tax Code, §11.31(k) with changes
as authorized by Texas Tax Code, §11.31(l). The commission shall
review and update the items listed in this table only if there is
compelling evidence to support the conclusion that the item provides
pollution control benefits. The commission may remove an item from
this table only if there is compelling evidence to support the conclusion
that the item does not render pollution control benefits.
Attached Graphic
(c) Consistent with subsection (a) of this section,
the following calculation (cost analysis procedure) must be used to
determine the creditable partial percentage for a property that is
filed on a Tier III application:
(1) If no marketable product results from the use of
the property, use the following equation and enter "0" for
the net present value of the marketable product (NPVMP):
Attached Graphic
(2) For property that generates a marketable product
(MP), the net present value (NPV) of the MP is used to reduce the
partial determination when used in the equation in the figure in paragraph
(1) of this subsection. The value of the MP is calculated by subtracting
the production costs of the MP from the market value of the MP. This
value is then used to calculate the NPV of the MP (NPVMP) over the
lifetime of the equipment. The equation for calculating NPVMP is as
follows:
Attached Graphic
(d) If the cost analysis procedure of this section
produces a negative number or a zero, the property is not eligible
for a positive use determination.
|
| Source Note: The provisions of this §17.17 adopted to be effective January 9, 2002, 27 TexReg 185; amended to be effective February 7, 2008, 33 TexReg 932; amended to be effective December 13, 2010, 35 TexReg 10964; amended to be effective January 7, 2021, 46 TexReg 176 |
