81R11050 TRH-D
By: Gonzalez Toureilles H.B. No. 3145
A BILL TO BE ENTITLED
AN ACT
relating to the goal for renewable energy capacity derived from
renewable energy technologies other than sources using wind energy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.904, Utilities Code, is amended by
amending Subsections (a), (b), (c), (d), and (o) and adding
Subsection (a-1) to read as follows:
(a) It is the intent of the legislature that by January 1,
2015, an additional 5,000 megawatts of generating capacity from
renewable energy technologies will have been installed in this
state. The cumulative installed renewable capacity in this state
shall total 5,880 megawatts by January 1, 2015, and the commission
shall establish a goal [target] of 10,000 megawatts of installed
renewable capacity by January 1, 2020 [2025]. The cumulative
installed renewable capacity in this state shall total 2,280
megawatts by January 1, 2007, 3,272 megawatts by January 1, 2009,
4,264 megawatts by January 1, 2011, 5,256 megawatts by January 1,
2013, and 5,880 megawatts by January 1, 2015.
(a-1) It is the intent of the legislature that by January 1,
2020, the commission shall establish a goal of an additional 4,000
megawatts [Of the renewable energy technology generating capacity
installed to meet the goal of this subsection after September 1,
2005, the commission shall establish a target of having at least 500
megawatts] of capacity from a combination of renewable energy
technology other than a source using wind energy and small-scale
wind-powered generating installations with a capacity of less than
150 kilowatts each. The cumulative installed capacity to comply
with this subsection in this state shall total 500 megawatts by
January 1, 2012, 2,000 megawatts by January 1, 2015, and 4,000
megawatts by January 1, 2020.
(b) The commission shall establish a renewable energy
credits trading program. Any retail electric provider, municipally
owned utility, or electric cooperative that does not satisfy the
requirements of Subsections [Subsection] (a) and (a-1) by directly
owning or purchasing capacity using renewable energy technologies
shall purchase sufficient renewable energy credits to satisfy the
requirements by holding renewable energy credits in lieu of
capacity from renewable energy technologies.
(c) Not later than January 1, 2000, the commission shall
adopt rules necessary to administer and enforce Subsection (a), and
not later than January 1, 2010, the commission shall adopt rules
necessary to administer and enforce Subsection (a-1) [this
section]. At a minimum, the rules shall:
(1) establish the minimum annual renewable energy
requirement for each retail electric provider, municipally owned
utility, and electric cooperative operating in this state in a
manner reasonably calculated by the commission to produce, on a
statewide basis, compliance with the requirement prescribed by
Subsection (a) and the requirement prescribed by Subsection (a-1);
and
(2) specify reasonable performance standards that all
renewable capacity additions must meet to count against the
requirement prescribed by Subsection (a) and the requirement
prescribed by Subsection (a-1) and that:
(A) are designed and operated so as to maximize
the energy output from the capacity additions in accordance with
then-current industry standards; and
(B) encourage the development, construction, and
operation of new renewable energy projects at those sites in this
state that have the greatest economic potential for capture and
development of this state's environmentally beneficial renewable
resources.
(d) In this section:
(1) "Renewable energy technology" [, "renewable
energy technology"] means any technology that exclusively relies on
an energy source that is naturally regenerated over a short time and
derived directly from the sun, indirectly from the sun, or from
moving water or other natural movements and mechanisms of the
environment. Renewable energy technologies include those that rely
on energy derived directly from the sun, on wind, geothermal,
hydroelectric, wave, or tidal energy, or on renewable biomass or
renewable biomass-based waste products, including landfill gas. A
renewable energy technology does not rely on energy resources
derived from fossil fuels, waste products from fossil fuels, or
waste products from inorganic sources.
(2) "Renewable biomass or renewable biomass-based
waste product" means:
(A) planted crops and crop residue harvested from
agricultural land cleared or cultivated at any time before the
enactment of this subsection that is either actively managed or
fallow, and non-forested;
(B) planted trees and tree residue from actively
managed tree plantations on nonfederal land cleared at any time
before the enactment of this subsection, including land belonging
to an Indian tribe or Indian individual, that is held in trust by
the United States or subject to a restriction against alienation
imposed by the United States;
(C) animal waste material and animal byproducts;
(D) slash and pre-commercial thinning of
nonfederal forestlands, including forestlands belonging to an
Indian tribe or an Indian individual that are held in trust by the
United States or subject to a restriction against alienation
imposed by the United States, but not forests or forestlands that
are ecological communities with a global or state ranking of
critically imperiled, imperiled, or rare pursuant to a state
natural heritage program, old-growth forest, or late successional
forest;
(E) biomass obtained from the immediate vicinity
of buildings and other areas regularly occupied by people or public
infrastructures at risk from wildfire;
(F) algae; and
(G) separated yard or food waste including
recycled cooking and trap grease.
(o) The commission may establish an alternative compliance
payment. An entity that has a renewable energy purchase
requirement under this section may elect to pay the alternative
compliance payment instead of applying renewable energy credits
toward the satisfaction of the entity's obligation under this
section. The commission may establish a separate alternative
compliance payment for the goal of 500 megawatts of capacity from
renewable energy technologies other than wind energy. [The
alternative compliance payment for a renewable energy purchase
requirement that could be satisfied with a renewable energy credit
from wind energy may not be less than $2.50 per credit or greater
than $20 per credit. Prior to September 1, 2009, an alternative
compliance payment under this subsection may not be set above $5 per
credit. In implementing this subsection, the commission shall
consider:
[(1) the effect of renewable energy credit prices on
retail competition;
[(2) the effect of renewable energy credit prices on
electric rates;
[(3) the effect of the alternative compliance payment
level on the renewable energy credit market; and
[(4) any other factors necessary to ensure the
continued development of the renewable energy industry in this
state while protecting ratepayers from unnecessary rate
increases.]
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.