81R9099 TJS-F
By: Lucio S.B. No. 1419
A BILL TO BE ENTITLED
AN ACT
relating to this state's goal for renewable 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), (d), and (o) and adding Subsections (d-1)
and (d-2) 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. Of the renewable
energy technology generating capacity installed to meet the goal of
this subsection by January 1, 2020 [after September 1, 2005], the
commission shall establish a goal [target] of having at least 4,000
[500] megawatts of capacity from a renewable energy technology
other than a source that uses high-capacity [using] wind energy.
The cumulative installed renewable capacity from a source other
than high-capacity wind energy shall total 500 megawatts by January
1, 2012, 2,000 megawatts by January 1, 2015, and 4,000 megawatts by
January 1, 2020.
(d) In this section, "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.
(d-1) In this section, "renewable biomass" means:
(1) planted crops and crop residue harvested from
agricultural land cleared before September 1, 2009, whether
actively managed or fallow, excluding forest land;
(2) wood waste from actively managed tree plantations
on nonfederal land cleared before September 1, 2009, including land
that belongs to an Indian tribe and is held in trust by the United
States or is otherwise subject to a restriction on alienation
imposed by the United States;
(3) forest wood waste, including residual tops and
limbs of trees, unused cull trees, pre-commercial thinnings, and
wood or debris from noncommercial tree species, slash, or brush
obtained from nonfederal forest land, including land that belongs
to an Indian tribe and is held in trust by the United States or is
otherwise subject to a restriction on alienation imposed by the
United States, excluding old growth forests or ecologically
sensitive areas;
(4) residential or commercial yard waste or food
waste, including recycled cooking grease;
(5) organic matter from the vicinity of buildings,
public infrastructure, or other areas regularly occupied by people;
(6) animal waste and animal by-products; and
(7) algae.
(d-2) In this section, "high-capacity wind energy" means
energy from a source using wind that has a capacity of more than 150
kilowatts.
(o) The commission shall [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 shall [may] establish a separate
alternative compliance payment for the goal of 4,000 [500]
megawatts of capacity from renewable energy technologies other than
high-capacity 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 September 1, 2009.