Texas 2009 - 81st Regular

Texas House Bill HB2520 Compare Versions

Only one version of the bill is available at this time.

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1	1	81R9438 TRH-F
2	2	By: Swinford H.B. No. 2520
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the state's goal for electric generating capacity
8	8	derived from emerging renewable energy resources.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 39.002, Utilities Code, is amended to
11	11	read as follows:
12	12	Sec. 39.002. APPLICABILITY. This chapter, other than
13	13	Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9041,
14	14	39.9051, 39.9052, and 39.914(e), does not apply to a municipally
15	15	owned utility or an electric cooperative. Sections 39.157(e),
16	16	39.203, [and] 39.904, and 39.9041, however, apply only to a
17	17	municipally owned utility or an electric cooperative that is
18	18	offering customer choice. If there is a conflict between the
19	19	specific provisions of this chapter and any other provisions of
20	20	this title, except for Chapters 40 and 41, the provisions of this
21	21	chapter control.
22	22	SECTION 2. Sections 39.904(a) and (o), Utilities Code, are
23	23	amended to read as follows:
24	24	(a) It is the intent of the legislature that by January 1,
25	25	2015, an additional 5,000 megawatts of generating capacity from
26	26	renewable energy technologies will have been installed in this
27	27	state. The cumulative installed renewable capacity in this state
28	28	shall total 5,880 megawatts by January 1, 2015, and the commission
29	29	shall establish a target of 10,000 megawatts of installed renewable
30	30	capacity by January 1, 2025. The cumulative installed renewable
31	31	capacity in this state shall total 2,280 megawatts by January 1,
32	32	2007, 3,272 megawatts by January 1, 2009, 4,264 megawatts by
33	33	January 1, 2011, 5,256 megawatts by January 1, 2013, and 5,880
34	34	megawatts by January 1, 2015. [Of the renewable energy technology
35	35	generating capacity installed to meet the goal of this subsection
36	36	after September 1, 2005, the commission shall establish a target of
37	37	having at least 500 megawatts of capacity from a renewable energy
38	38	technology other than a source using wind energy.]
39	39	(o) The commission may establish an alternative compliance
40	40	payment. An entity that has a renewable energy purchase
41	41	requirement under this section may elect to pay the alternative
42	42	compliance payment instead of applying renewable energy credits
43	43	toward the satisfaction of the entity's obligation under this
44	44	section. [The commission may establish a separate alternative
45	45	compliance payment for the goal of 500 megawatts of capacity from
46	46	renewable energy technologies other than wind energy.] The
47	47	alternative compliance payment for a renewable energy purchase
48	48	requirement that could be satisfied with a renewable energy credit
49	49	from wind energy may not be less than $2.50 per credit or greater
50	50	than $20 per credit. Prior to September 1, 2009, an alternative
51	51	compliance payment under this subsection may not be set above $5 per
52	52	credit. In implementing this subsection, the commission shall
53	53	consider:
54	54	(1) the effect of renewable energy credit prices on
55	55	retail competition;
56	56	(2) the effect of renewable energy credit prices on
57	57	electric rates;
58	58	(3) the effect of the alternative compliance payment
59	59	level on the renewable energy credit market; and
60	60	(4) any other factors necessary to ensure the
61	61	continued development of the renewable energy industry in this
62	62	state while protecting ratepayers from unnecessary rate increases.
63	63	SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is
64	64	amended by adding Section 39.9041 to read as follows:
65	65	Sec. 39.9041. GOAL FOR EMERGING RENEWABLE ENERGY RESOURCES.
66	66	(a) In this section:
67	67	(1) "Emerging renewable energy resource" means a
68	68	facility that produces energy derived from a renewable energy
69	69	technology, including generation offset technology, other than a
70	70	wind generation facility that produces more than 10 megawatts of
71	71	capacity.
72	72	(2) "Generation offset technology" means any
73	73	renewable energy technology that reduces the demand for electricity
74	74	at a site where a customer consumes electricity.
75	75	(3) "New emerging renewable energy resource" means a
76	76	facility first placed into service on or after September 1, 2009.
77	77	(4) "Renewable energy resource" means a facility that
78	78	produces energy derived from a renewable energy technology.
79	79	(5) "Renewable energy technology" has the meaning
80	80	assigned by Section 39.904.
81	81	(b) It is the intent of the legislature that by January 1,
82	82	2020, an additional 3,000 megawatts of generating capacity from
83	83	emerging renewable energy resources will have been installed in
84	84	this state. The cumulative installed new emerging renewable energy
85	85	resource generating capacity in this state shall total 150
86	86	megawatts by January 1, 2011, 300 megawatts by January 1, 2012, 450
87	87	megawatts by January 1, 2013, 600 megawatts by January 1, 2014, 900
88	88	megawatts by January 1, 2015, 1,200 megawatts by January 1, 2016,
89	89	1,500 megawatts by January 1, 2017, 1,800 megawatts by January 1,
90	90	2018, 2,400 megawatts by January 1, 2019, and 3,000 megawatts by
91	91	January 1, 2020.
92	92	(c) Not later than January 1, 2010, in addition to the
93	93	renewable energy credits trading program established by Section
94	94	39.904(b) or any other renewable energy credits trading program
95	95	established by the commission, the commission shall establish an
96	96	emerging renewable energy credits trading program. Any retail
97	97	electric provider, investor-owned electric utility operating
98	98	solely outside of ERCOT, municipally owned utility, or electric
99	99	cooperative that does not satisfy the requirements of Subsection
100	100	(b) by directly owning or purchasing new emerging renewable energy
101	101	resource generating capacity shall purchase sufficient emerging
102	102	renewable energy credits to satisfy the requirements by holding
103	103	emerging renewable energy credits in lieu of emerging renewable
104	104	energy resource generating capacity.
105	105	(d) Not later than January 1, 2010, the commission shall
106	106	adopt rules necessary to administer and enforce this section. At a
107	107	minimum, the rules shall:
108	108	(1) establish the minimum annual new emerging
109	109	renewable energy resource requirement for each retail electric
110	110	provider, investor-owned utility operating solely outside of
111	111	ERCOT, municipally owned utility, and electric cooperative
112	112	operating in this state in a manner reasonably calculated by the
113	113	commission to produce, on a statewide basis, compliance with the
114	114	requirement prescribed by Subsection (b);
115	115	(2) specify reasonable performance standards that all
116	116	new emerging renewable energy resource generating capacity
117	117	additions must meet to count against the requirement prescribed by
118	118	Subsection (b) and that:
119	119	(A) are designed and operated so as to maximize
120	120	the energy output from the capacity additions in accordance with
121	121	then-current industry standards; and
122	122	(B) encourage the development, construction, and
123	123	operation of new emerging renewable energy resource generating
124	124	capacity at those sites in this state that have the greatest
125	125	economic potential for capture and development of this state's
126	126	environmentally beneficial renewable resources;
127	127	(3) treat all renewable energy technologies equally;
128	128	and
129	129	(4) provide that installed new emerging renewable
130	130	energy resource generating capacity that receives emerging
131	131	renewable energy credits under Subsection (c) may not also receive
132	132	renewable energy credits under the program established by Section
133	133	39.904(b) or any other renewable energy credit program established
134	134	by the commission.
135	135	(e) A municipally owned utility operating a gas
136	136	distribution system may credit toward satisfaction of the
137	137	requirements of this section any production or acquisition of
138	138	landfill gas supplied to the gas distribution system, based on
139	139	conversion to kilowatt hours of the thermal energy content in
140	140	British thermal units of the emerging renewable energy resource and
141	141	using for the conversion factor the annual heat rate of the most
142	142	efficient gas-fired unit of the combined utility's electric system
143	143	as measured in British thermal units per kilowatt hour and using the
144	144	British thermal unit measurement based on the higher heating value
145	145	measurement.
146	146	(f) A municipally owned utility operating a gas
147	147	distribution system may credit toward satisfaction of the
148	148	requirements of this section any production or acquisition of
149	149	landfill gas supplied to the gas distribution system, based on
150	150	conversion to kilowatt hours of the thermal energy content in
151	151	British thermal units of the renewable energy resource and using
152	152	for the conversion factor the systemwide average heat rate of the
153	153	gas-fired units of the combined utility's electric system as
154	154	measured in British thermal units per kilowatt hour.
155	155	(g) The commission may adopt rules requiring installed
156	156	emerging renewable energy resource generating capacity to have
157	157	reactive power control capabilities or any other feasible
158	158	technology designed to reduce the resources' effects on system
159	159	reliability.
160	160	(h) An emerging renewable energy credit required for
161	161	purposes other than to meet the requirements of Subsection (d)(1)
162	162	may not affect the minimum annual renewable energy requirement
163	163	under Subsection (d)(1) for a retail electric provider,
164	164	investor-owned electric utility operating solely outside of ERCOT,
165	165	municipally owned utility, or electric cooperative.
166	166	(i) The commission shall reduce the requirement under
167	167	Subsection (d)(1) for a retail electric provider, investor-owned
168	168	utility operating solely outside of ERCOT, municipally owned
169	169	utility, or electric cooperative that is subject to an emerging
170	170	renewable energy requirement under this section and that serves a
171	171	customer receiving electric service at transmission-level voltage
172	172	if, before any year for which the commission calculates emerging
173	173	renewable energy requirements under Subsection (d)(1), the
174	174	customer notifies the commission in writing that the customer
175	175	chooses not to support the goal for emerging renewable energy
176	176	technology generation under this section for that year. The
177	177	commission shall exclude from the calculation of the applicable
178	178	requirement under Subsection (d)(1) energy sold by the retail
179	179	electric provider, investor-owned utility operating solely outside
180	180	of ERCOT, municipally owned utility, or electric cooperative at
181	181	transmission-level voltage to customers who have submitted the
182	182	notice to the commission under this subsection for the applicable
183	183	year.
184	184	(j) The commission shall determine the reporting
185	185	requirements and schedule necessary to implement Subsections (h)
186	186	and (i).
187	187	(k) Subsections (g), (h), and (i) do not affect the goals
188	188	established by Subsection (b) or reduce the minimum statewide
189	189	emerging renewable energy requirements of Subsection (d)(1).
190	190	(l) Notwithstanding any other provision of law, the
191	191	commission shall have the authority to cap the price of emerging
192	192	renewable energy credits and may suspend the goal contained in
193	193	Subsection (b) if such suspension is necessary to protect the
194	194	reliability and operation of the grid.
195	195	(m) The commission shall establish an alternative
196	196	compliance payment. An entity that has a new emerging renewable
197	197	energy resource capacity requirement under this section may elect
198	198	to pay the alternative compliance payment instead of applying
199	199	renewable energy credits toward the satisfaction of the entity's
200	200	obligation under this section. The alternative compliance payment
201	201	for an emerging renewable energy capacity requirement that could be
202	202	satisfied with an emerging renewable energy credit shall not be
203	203	more than the equivalent of 9 cents per kilowatt hour or $90 per
204	204	emerging renewable energy credit. The commission may allow an
205	205	entity that has an emerging renewable energy capacity requirement
206	206	under this section to pay the alternative compliance payment into a
207	207	social service fund that benefits the energy needs of low-income
208	208	retail electric customers. In implementing this subsection, the
209	209	commission shall consider:
210	210	(1) the effect of emerging renewable energy credit
211	211	prices on retail competition;
212	212	(2) the effect of emerging renewable energy credit
213	213	prices on electric rates;
214	214	(3) the effect of the alternative compliance payment
215	215	level on the renewable energy credit market;
216	216	(4) any federal legislation requiring the use of
217	217	renewable energy or renewable energy credits; and
218	218	(5) any other factors necessary to ensure the
219	219	continued development of the renewable energy industry in this
220	220	state while protecting ratepayers from unnecessary rate increases.
221	221	(n) This section expires on the third anniversary of the
222	222	date the commission determines that the final megawatt goal under
223	223	Subsection (b) has been reached.
224	224	SECTION 4. This Act takes effect September 1, 2009.