Texas 2009 - 81st Regular

Texas Senate Bill SB2020 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Watson S.B. No. 2020
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to incentives for Texas renewable energy jobs and
7	7	manufacturing.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. PURPOSE. The purpose of this Act is to continue
10	10	Texas's leadership in installing clean, renewable energy in Texas
11	11	in a market-based manner that drives manufacturing jobs and
12	12	provides price protection for businesses and consumers.
13	13	SECTION 2. Section 39.904, Utilities Code, is amended by
14	14	amending Subsections (a), (b), (c), (o), and (p), and adding
15	15	Subsections (a-1), and (c-1) to read as follows:
16	16	Sec. 39.904. GOAL FOR RENEWABLE ENERGY. (a) It is the
17	17	intent of the legislature that by January 1, 2015, an additional
18	18	5,000 megawatts of generating capacity from tier 1 renewable energy
19	19	technologies will have been installed in this state. The
20	20	cumulative installed renewable capacity in this state shall total
21	21	5,880 megawatts by January 1, 2015, and the commission shall
22	22	establish a target of 10,000 megawatts of installed renewable
23	23	capacity by January 1, 2025. The cumulative installed tier 1
24	24	renewable capacity in this state shall total 2,280 megawatts by
25	25	January 1, 2007, 3,272 megawatts by January 1, 2009, 4,264
26	26	megawatts by January 1, 2011, 5,256 megawatts by January 1, 2013,
27	27	and 5,880 megawatts by January 1, 2015. [Of the renewable energy
28	28	technology generating capacity installed to meet the goal of this
29	29	subsection, after September 1, 2005 the commission shall establish
30	30	a target of having at least 500 megawatts of capacity from a
31	31	renewable energy technology other than a source using wind energy.]
32	32	(a-1) It is the goal of the legislature that by January 1,
33	33	2020, an additional 3,000 megawatts of tier 2 renewable energy
34	34	technology will have been installed in this state. Of the renewable
35	35	energy technology generating capacity installed to meet the goal of
36	36	this subsection, up to 1,000 megawatts of renewable energy storage
37	37	may qualify to meet that goal. The cumulative installed tier 2
38	38	renewable energy resource capacity in this state shall total 150
39	39	megawatts by January 1, 2011, 300 megawatts by January 1, 2012, 700
40	40	megawatts by January 1, 2013, 800 megawatts by January 1, 2014, 1000
41	41	megawatts by January 1, 2015, 1,300 megawatts by January 1, 2016,
42	42	1,500 megawatts by January 1, 2017, 1,800 megawatts by January 1,
43	43	2018, 2,400 megawatts by January 1, 2019, and 3,000 megawatts by
44	44	January 1, 2020.
45	45	(b) The commission shall establish a tier 1 renewable energy
46	46	credits trading program and a tier 2 renewable energy credits
47	47	trading program. Any retail electric provider, municipally owned
48	48	utility, or electric cooperative that does not satisfy the
49	49	requirements of Subsection (a) by directly owning or purchasing
50	50	capacity using renewable energy technologies shall purchase
51	51	sufficient renewable energy credits to satisfy the requirements by
52	52	holding renewable energy credits in lieu of capacity from renewable
53	53	energy technologies. In calculating capacity factors for tier 2
54	54	renewable energy credits, the commission shall encourage a diverse
55	55	portfolio of tier 2 renewable energy technologies.
56	56	(c) (c) Not later than January 1, 2000, the commission
57	57	shall adopt rules necessary to administer and enforce this section.
58	58	At a minimum, the rules shall:
59	59	(1) establish the minimum annual renewable energy
60	60	requirement for each retail electric provider, municipally owned
61	61	utility, and electric cooperative operating in this state in a
62	62	manner reasonably calculated by the commission to produce, on a
63	63	statewide basis, compliance with the requirement prescribed by
64	64	subsections (a) and (a-1) [Subsection (a)] and
65	65	(2) specify reasonable performance standards that all
66	66	renewable capacity additions must meet to count against the
67	67	requirement prescribed by subsections (a) and (a-1) [Subsection
68	68	(a)] and that:
69	69	(A) are designed and operated so as to maximize
70	70	the energy output from the capacity additions in accordance with
71	71	then-current industry standards; and
72	72	(B) encourage the development, construction, and
73	73	operation of new renewable energy projects at those sites in this
74	74	state that have the greatest economic potential for capture and
75	75	development of this state's environmentally beneficial renewable
76	76	resources.
77	77	(c-1) Not later than January 1, 2011, the commission shall
78	78	adopt rules necessary to provide a "Made in Texas" incentive for
79	79	tier 1 and tier 2 renewable energy credits generated by generation
80	80	equipment that is wholly produced or substantially transformed by a
81	81	Texas workforce, as determined by the commission. The incentive
82	82	under this subsection shall be available for the first three years
83	83	after the renewable energy equipment first produces electricity on
84	84	a commercial basis.
85	85	(c-2) Not later than January 1, 2011, the commission shall
86	86	adopt rules necessary to track and account for renewable energy
87	87	credits earned from electric generating capacity derived from
88	88	renewable energy storage technology. The rules shall:
89	89	(1) allow for the renewable energy storage technology
90	90	to be located on the same or on a different site as the renewable
91	91	generation being stored;
92	92	(2) ensure that only one renewable energy credit is
93	93	retired for every megawatt hour of renewable energy generated prior
94	94	to being stored for later release; and
95	95	(3) account for any loss in energy resulting from
96	96	storage for later use.
97	97	(d) For purposes of [In] this section,
98	98	(1) "tier 1 renewable energy technology" ["renewable
99	99	energy technology"] means any technology that exclusively relies on
100	100	an energy source that is naturally regenerated over a short time and
101	101	derived directly from the sun, indirectly from the sun, or from
102	102	moving water or other natural movements and mechanisms of the
103	103	environment. Renewable energy technologies include those that rely
104	104	on energy derived directly from the sun, on wind, geothermal,
105	105	hydroelectric, wave, or tidal energy, or on biomass or
106	106	biomass-based waste products, including landfill gas. A renewable
107	107	energy technology does not rely on energy resources derived from
108	108	fossil fuels, waste products from fossil fuels, or waste products
109	109	from inorganic sources.
110	110	(2) "tier 2 renewable energy technology" means tier 1
111	111	renewable energy technology excluding energy derived from wind with
112	112	a capacity of more than 150 kilowatts.
113	113	(3) "renewable energy storage technology" means
114	114	energy storage technology that stores for later release energy
115	115	derived from tier 1 or tier 2 renewable energy technology.
116	116	(n) Notwithstanding any other provision of law, the
117	117	commission shall have the authority to cap the price of renewable
118	118	energy credits and may suspend the goal contained in subsections
119	119	(a) and (a-1) [Subsection (a)] if such suspension is necessary to
120	120	protect the reliability and operation of the grid.
121	121	(o) The commission may establish tier 1 and tier 2 [an]
122	122	alternative compliance payments [payment]. An entity that has a
123	123	renewable energy purchase requirement under this section may elect
124	124	to pay the alternative compliance payment instead of applying
125	125	renewable energy credits toward the satisfaction of the entity's
126	126	obligation under this section. [The commission may establish a
127	127	separate alternative compliance payment for the goal.] The tier 1
128	128	alternative compliance payment from a renewable energy purchase
129	129	requirement that could be satisfied with a renewable energy credit
130	130	from wind energy may not be less than $2.50 per credit or greater
131	131	than $20 per credit. Prior to September 1, 2009, an alternative
132	132	compliance payment under this subsection may not be set above $5 per
133	133	credit. The tier 2 alternative compliance payment that could be
134	134	satisfied with a tier 2 renewable energy credit shall not be less
135	135	$90 per renewable energy credit before December 31, 2014; $80 per
136	136	renewable energy credit before December 31, 2015; $65 per renewable
137	137	energy credit before December 31, 2016; $45 per renewable energy
138	138	credit before December 31, 2017; $40 per renewable energy credit
139	139	before December 31, 2018; $35 per renewable energy credit before
140	140	December 31, 2019; $30 per renewable energy credit before December
141	141	31, 2020. In implementing this subsection, the commission shall
142	142	consider:
143	143	(1) the effect of renewable energy credit prices on
144	144	retail competition;
145	145	(2) the effect of renewable energy credit prices on
146	146	electric rates;
147	147	(3) the effect of the alternative compliance payment
148	148	level on the renewable energy credit market; and
149	149	(4) any other factors necessary to ensure the
150	150	continued development of the renewable energy industry in this
151	151	state while protecting ratepayers from unnecessary rate increases.
152	152	(p) Tier 2 alternative compliance payment funds collected
153	153	by the commission shall be deposited into the Texas Emerging
154	154	Technology Fund and allocated exclusively for the research and
155	155	development of tier 2 renewable energy technologies and to
156	156	renewable energy storage technologies.
157	157	SECTION 3. This Act takes effect September 1, 2009.