Brazos Electric Power Cooperative, Inc. v. Texas Commission on Environmental Quality (Opinion)Annotate this Case
The Supreme Court reversed the judgment of the court of appeals ruling that the Texas Commission on Environmental Quality does not have the discretion to deny an ad valorem tax exemption for heat recovery steam generators (HRSGs), devices the Legislature considers "pollution control property," holding that the Legislature did not exceed its constitutional authority in exempting pollution control property from taxation.
Brazos Electric Power Cooperative, Inc. filed for an exemption seeking a positive use determination for the HRSG used in two of its facilities. The Commission's Executive Director issued negative use determinations for the applications on the grounds that HRSGs are not eligible for a positive use determination. The Commission eventually affirmed the determinations as to both facilities. The trial court affirmed. The court of appeals affirmed. The Supreme Court reversed, holding (1) under Texas Tax Code 11.31, property that qualifies as pollution control property, is entitled to a tax exemption, and HRSGs qualify, at least in part, as pollution control property; and (2) thus, assuming the applicant otherwise complies with the statute's requirements, the Executive Director may not issue a negative use determination for HRSGs.