| 1 | 1 | | 81R9767 TRH-F |
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| 2 | 2 | | By: Huffman S.B. No. 1423 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to goals for renewable energy capacity derived from |
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| 8 | 8 | | renewable energy sources other than sources using wind energy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 39.904(a) and (o), Utilities Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) It is the intent of the legislature that by January 1, |
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| 13 | 13 | | 2015, an additional 5,000 megawatts of generating capacity from |
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| 14 | 14 | | renewable energy technologies will have been installed in this |
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| 15 | 15 | | state. The cumulative installed renewable capacity in this state |
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| 16 | 16 | | shall total 5,880 megawatts by January 1, 2015, and the commission |
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| 17 | 17 | | shall establish a goal [target] of 10,000 megawatts of installed |
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| 18 | 18 | | renewable capacity by January 1, 2025. The cumulative installed |
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| 19 | 19 | | renewable capacity in this state shall total 2,280 megawatts by |
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| 20 | 20 | | January 1, 2007, 3,272 megawatts by January 1, 2009, 4,264 |
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| 21 | 21 | | megawatts by January 1, 2011, 5,256 megawatts by January 1, 2013, |
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| 22 | 22 | | and 5,880 megawatts by January 1, 2015. Of the renewable energy |
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| 23 | 23 | | technology generating capacity installed to meet the goal of this |
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| 24 | 24 | | subsection after September 1, 2005, the commission shall establish |
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| 25 | 25 | | a goal [target] of having at least 3,000 [500] megawatts of capacity |
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| 26 | 26 | | from a renewable energy technology other than a source using wind |
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| 27 | 27 | | energy. |
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| 28 | 28 | | (o) The commission may establish an alternative compliance |
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| 29 | 29 | | payment. An entity that has a renewable energy purchase |
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| 30 | 30 | | requirement under this section may elect to pay the alternative |
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| 31 | 31 | | compliance payment instead of applying renewable energy credits |
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| 32 | 32 | | toward the satisfaction of the entity's obligation under this |
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| 33 | 33 | | section. The commission may establish a separate alternative |
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| 34 | 34 | | compliance payment for the goal of 3,000 [500] megawatts of |
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| 35 | 35 | | capacity from renewable energy technologies other than wind energy. |
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| 36 | 36 | | The alternative compliance payment for a renewable energy purchase |
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| 37 | 37 | | requirement that could be satisfied with a renewable energy credit |
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| 38 | 38 | | from wind energy may not be less than $2.50 per credit or greater |
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| 39 | 39 | | than $20 per credit. Prior to September 1, 2009, an alternative |
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| 40 | 40 | | compliance payment under this subsection may not be set above $5 per |
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| 41 | 41 | | credit. In implementing this subsection, the commission shall |
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| 42 | 42 | | consider: |
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| 43 | 43 | | (1) the effect of renewable energy credit prices on |
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| 44 | 44 | | retail competition; |
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| 45 | 45 | | (2) the effect of renewable energy credit prices on |
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| 46 | 46 | | electric rates; |
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| 47 | 47 | | (3) the effect of the alternative compliance payment |
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| 48 | 48 | | level on the renewable energy credit market; and |
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| 49 | 49 | | (4) any other factors necessary to ensure the |
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| 50 | 50 | | continued development of the renewable energy industry in this |
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| 51 | 51 | | state while protecting ratepayers from unnecessary rate increases. |
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| 52 | 52 | | SECTION 2. This Act takes effect September 1, 2009. |
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