SB739 H ENG AM #1 3-7
Akers 3254
The Committee on Energy and Manufacturing moves to amend the bill on page 1, after the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
(a) Definitions.--
(1) "Carbon offset agreement" means any agreement, whether designated as a carbon capture agreement, carbon sequestration agreement, or otherwise, entered into between an owner of an interest in real estate in West Virginia including any type of minerals or growing timber, and any other person, entity or company, with the intent of providing payment, compensation, or remuneration for nondevelopment of a real estate interest in West Virginia to prevent the release of carbon dioxide or other greenhouse gases into the atmosphere or to absorb, suppress, or contain carbon dioxide or other greenhouse gases. A carbon offset agreement may be in the form of a contract, lease, easement, covenant, option, or otherwise, with the form of the agreement not being determinative of its status as a carbon offset agreement; Provided, That such agreements or restrictions for the injection and containment of carbon dioxide or other greenhouse gases into underground pore or container spaces and methane capture and flaring operations are not carbon offset agreements.
(2) "Greenhouse gases" means any of various gaseous or vaporous compounds such as carbon dioxide or methane that absorb infrared radiation and may trap heat in Earth’s atmosphere.
(b) Registration.-- Any party or parties that enter into a carbon offset agreement, as that term is defined in this section, with a West Virginia landowner, and their assignees of rights, shall apply to the Tax Commissioner for an initial business registration certificate within 60 days of entering into such agreement or within 60 days of the effective date of this section, whichever is later, on forms created through rulemaking authority by the State Tax Department. This requirement applies to carbon offset agreements entered on or before the effective date of this section and currently in effect, and new carbon offset agreements entered after the effective date of this section. The application for the business registration certificate for carbon offset agreements shall provide the following information:
(1) Legal names, addresses, and other contact information of all parties to the carbon offset agreement;
(2) Location and description of the real estate in West Virginia covered by the carbon offset agreement, including the postal address of the property, if available, and tax parcel or other tax map identifier of the property;
(3) Term of the agreement in years;
(4) Identification of the carbon offset program or programs, if any, with which the agreement is intended to comply;
(5) Identification and description of any and all restrictions placed on the West Virginia real estate or other property by the carbon offset agreement;
(6) Estimated yearly consideration to be paid; and
(7) Any other information required by the Tax Commissioner.
(c) The party or parties that enter into a carbon offset agreement with a West Virginia landowner and their assignees of rights shall inform the Tax Commissioner of any changes to the agreement or assignments of rights under the agreement within 60 days of the change or assignment taking effect.
(d) Registration.-- Notwithstanding any other provision of this code, the party or parties that enter into a carbon offset agreement with a West Virginia landowner and their assignees of rights to a carbon offset agreement shall apply to the Tax Commissioner for a new registration certificate within five years of the effective date of the agreement, and at five-year intervals thereafter, unless the agreement is terminated before that time.
(e) Reporting.-- Beginning on July 1, 2024, and on or before July 1 of every year thereafter, the Tax Commissioner shall submit a report to the Governor and the Joint Committee on Government and Finance setting forth at a minimum the following information:
(1) The number and type of carbon offset agreements in effect burdening real estate in West Virginia during the preceding calendar year,
(2) The number of acres of real estate burdened by carbon offset agreements during the preceding calendar year and the counties in West Virginia in which they are found, and
(3) The amount of consideration paid to West Virginia landowners under carbon offset agreements during the preceding calendar year.
(f) The provisions of this article are subject to the West Virginia Tax Procedure and Administration Act, set forth in §11-10-1 et seq. of this code, and the West Virginia Tax Crimes and Penalties Act, set forth in §11-9-1 et seq. of this code, as if the provisions thereof were set forth in extenso in this article.
(g) Information disclosure.-- Notwithstanding the provisions of §11-10-5d of this code and notwithstanding any other provision of this code, the Tax Commissioner is authorized to disclose such generalized registration information and other information as may be necessary to administer these provisions and compile the report required under this section.
Adopted
Rejected