By: Swinford H.B. No. 3405
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a solar generation incentive program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.917 to read as follows:
Sec. 39.917. SOLAR GENERATION INCENTIVE PROGRAM. (a) It is
the goal of the legislature that electric utilities administer
incentive programs for residential, commercial, and industrial
customers to increase the amount of solar generation capacity
installed in this state in a cost-effective, market-neutral, and
nondiscriminatory manner, with a goal of installing at least 3,000
megawatts of solar generation capacity in this state by 2020, at
least 1,000 of which must be distributed renewable generation as
defined by Section 39.916.
(b) The commission by rule shall:
(1) establish a solar generation incentive program, to
be implemented by electric utilities, municipally owned electric
utilities, and electric cooperatives;
(2) oversee the implementation of the program required
by Subdivision (1); and
(3) establish procedures to achieve the goal
established by Subsection (a).
(c) The rules adopted under Subsection (b) must include
provisions for:
(1) a solar generation capacity cost recovery factor
to ensure timely and reasonable cost recovery for electric utility
expenditures under this section;
(2) recovery of the cost of electric utility programs
through nonbypassable fees of not less than $0.000636 per kilowatt
hour for residential, commercial, and industrial customers;
(3) awarding incentive rebates in the first year of
the program of not less than:
(A) $2.40 per watt for residential installation;
(B) $1.50 per watt for commercial installation;
and
(C) $1.10 per watt for industrial installation;
(4) reducing the rebate amounts by not less than seven
percent annually;
(5) eliminating the incentive provided by electric
utilities under this subsection on the date the goals established
by Subsection (a) are achieved; and
(6) allowing a utility to collect up to five percent of
the awarded incentives for administrative costs.
(d) Electric utilities may not provide incentives under
this section for solar generation that is installed after the 10th
anniversary of the date on which the commission by rule establishes
the program required by this section.
SECTION 2. As soon as practicable after the effective date
of this Act, but not later than January 1, 2010, the Public Utility
Commission of Texas shall adopt rules establishing the solar
generation incentive program required by Section 39.917, Utilities
Code, as added by this Act.
SECTION 3. 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.