| 1 | 1 | | By: Swinford H.B. No. 3405 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the creation of a solar generation incentive program. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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| 9 | 9 | | amended by adding Section 39.917 to read as follows: |
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| 10 | 10 | | Sec. 39.917. SOLAR GENERATION INCENTIVE PROGRAM. (a) It is |
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| 11 | 11 | | the goal of the legislature that electric utilities administer |
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| 12 | 12 | | incentive programs for residential, commercial, and industrial |
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| 13 | 13 | | customers to increase the amount of solar generation capacity |
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| 14 | 14 | | installed in this state in a cost-effective, market-neutral, and |
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| 15 | 15 | | nondiscriminatory manner, with a goal of installing at least 3,000 |
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| 16 | 16 | | megawatts of solar generation capacity in this state by 2020, at |
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| 17 | 17 | | least 1,000 of which must be distributed renewable generation as |
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| 18 | 18 | | defined by Section 39.916. |
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| 19 | 19 | | (b) The commission by rule shall: |
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| 20 | 20 | | (1) establish a solar generation incentive program, to |
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| 21 | 21 | | be implemented by electric utilities, municipally owned electric |
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| 22 | 22 | | utilities, and electric cooperatives; |
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| 23 | 23 | | (2) oversee the implementation of the program required |
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| 24 | 24 | | by Subdivision (1); and |
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| 25 | 25 | | (3) establish procedures to achieve the goal |
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| 26 | 26 | | established by Subsection (a). |
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| 27 | 27 | | (c) The rules adopted under Subsection (b) must include |
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| 28 | 28 | | provisions for: |
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| 29 | 29 | | (1) a solar generation capacity cost recovery factor |
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| 30 | 30 | | to ensure timely and reasonable cost recovery for electric utility |
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| 31 | 31 | | expenditures under this section; |
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| 32 | 32 | | (2) recovery of the cost of electric utility programs |
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| 33 | 33 | | through nonbypassable fees of not less than $0.000636 per kilowatt |
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| 34 | 34 | | hour for residential, commercial, and industrial customers; |
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| 35 | 35 | | (3) awarding incentive rebates in the first year of |
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| 36 | 36 | | the program of not less than: |
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| 37 | 37 | | (A) $2.40 per watt for residential installation; |
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| 38 | 38 | | (B) $1.50 per watt for commercial installation; |
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| 39 | 39 | | and |
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| 40 | 40 | | (C) $1.10 per watt for industrial installation; |
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| 41 | 41 | | (4) reducing the rebate amounts by not less than seven |
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| 42 | 42 | | percent annually; |
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| 43 | 43 | | (5) eliminating the incentive provided by electric |
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| 44 | 44 | | utilities under this subsection on the date the goals established |
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| 45 | 45 | | by Subsection (a) are achieved; and |
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| 46 | 46 | | (6) allowing a utility to collect up to five percent of |
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| 47 | 47 | | the awarded incentives for administrative costs. |
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| 48 | 48 | | (d) Electric utilities may not provide incentives under |
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| 49 | 49 | | this section for solar generation that is installed after the 10th |
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| 50 | 50 | | anniversary of the date on which the commission by rule establishes |
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| 51 | 51 | | the program required by this section. |
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| 52 | 52 | | SECTION 2. As soon as practicable after the effective date |
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| 53 | 53 | | of this Act, but not later than January 1, 2010, the Public Utility |
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| 54 | 54 | | Commission of Texas shall adopt rules establishing the solar |
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| 55 | 55 | | generation incentive program required by Section 39.917, Utilities |
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| 56 | 56 | | Code, as added by this Act. |
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| 57 | 57 | | SECTION 3. This Act takes effect immediately if it receives |
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| 58 | 58 | | a vote of two-thirds of all the members elected to each house, as |
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| 59 | 59 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 60 | 60 | | Act does not receive the vote necessary for immediate effect, this |
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| 61 | 61 | | Act takes effect September 1, 2009. |
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