Texas 2009 - 81st Regular

Texas Senate Bill SB435 Compare Versions

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

Old	New	Differences
1	1	81R3863 JJT-D
2	2	By: Ellis S.B. No. 435
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a statewide goal for electric energy generation during
8	8	peak load periods from renewable energy technologies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 39.002, Utilities Code, is amended to
11	11	read as follows:
12	12	Sec. 39.002. APPLICABILITY. This chapter, other than
13	13	Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051,
14	14	39.9052, [and] 39.914(e), and 39.917, does not apply to a
15	15	municipally owned utility or an electric cooperative. Sections
16	16	39.157(e), 39.203, [and] 39.904, and 39.917, however, apply only to
17	17	a municipally owned utility or an electric cooperative that is
18	18	offering customer choice. If there is a conflict between the
19	19	specific provisions of this chapter and any other provisions of
20	20	this title, except for Chapters 40 and 41, the provisions of this
21	21	chapter control.
22	22	SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
23	23	amended by adding Section 39.917 to read as follows:
24	24	Sec. 39.917. GOAL FOR PEAK LOAD PERIOD RENEWABLE ENERGY
25	25	GENERATION. (a) In this section, "renewable energy technology"
26	26	has the meaning assigned by Section 39.904.
27	27	(b) It is the intent of the legislature that by January 1,
28	28	2020, generating capacity from renewable energy technologies will
29	29	have been installed in this state that is capable of producing not
30	30	less than an additional 3,000 megawatts during peak load periods,
31	31	as compared to the peak load period generating capacity from
32	32	renewable energy technologies installed in this state as of
33	33	September 1, 2009, for use by retail electric providers,
34	34	municipally owned utilities, and electric cooperatives and their
35	35	customers.
36	36	(c) Each retail electric provider, municipally owned
37	37	utility, or electric cooperative in this state shall directly own
38	38	or purchase the appropriate generating capacity or peak load
39	39	renewable energy credits not later than January 1, 2020, so that the
40	40	installed peak load generating capacity from renewable energy
41	41	technologies in this state increases to meet the goal provided by
42	42	Subsection (b).
43	43	(d) The commission by rule shall establish a peak load
44	44	renewable energy credits trading program. Each retail electric
45	45	provider, municipally owned utility, or electric cooperative that
46	46	does not satisfy the requirements of Subsection (c) by directly
47	47	owning or purchasing generating capacity for peak load periods from
48	48	sources using renewable energy technologies shall purchase
49	49	sufficient peak load renewable energy credits to satisfy the
50	50	requirements by holding peak load renewable energy credits in lieu
51	51	of peak load generating capacity from renewable energy
52	52	technologies. Commission rules must provide for peak load capacity
53	53	from electric energy that is generated by renewable energy
54	54	technologies and stored for later release to the electric
55	55	transmission and distribution system to be eligible for a credit
56	56	that is double the credit for which capacity from renewable energy
57	57	technologies alone is eligible.
58	58	(e) The commission shall adopt rules necessary to
59	59	administer and enforce this section. At a minimum, the rules shall:
60	60	(1) establish the minimum annual peak load renewable
61	61	energy requirement for each retail electric provider, municipally
62	62	owned utility, and electric cooperative operating in this state in
63	63	a manner reasonably calculated by the commission to produce, on a
64	64	statewide basis, compliance with the requirement prescribed by
65	65	Subsection (c); and
66	66	(2) specify reasonable performance standards that all
67	67	peak load renewable capacity additions must meet to count against
68	68	the requirement prescribed by Subsection (c) 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, as necessary to meet demand at
72	72	peak load periods; and
73	73	(B) encourage the development, construction, and
74	74	operation of new peak load renewable energy projects at those sites
75	75	in this state that have the greatest economic potential for capture
76	76	and development of this state's environmentally beneficial
77	77	renewable resources.
78	78	(f) A municipally owned utility operating a gas
79	79	distribution system may credit toward satisfaction of the
80	80	requirements of this section any production or acquisition of
81	81	landfill gas supplied to the gas distribution system, based on
82	82	conversion to kilowatt hours of the thermal energy content in
83	83	British thermal units of the renewable source and using for the
84	84	conversion factor the systemwide average heat rate of the gas-fired
85	85	units of the combined utility's electric system as measured in
86	86	British thermal units per kilowatt hour.
87	87	(g) The commission, after consultation with each
88	88	appropriate independent organization, electric reliability
89	89	council, or regional transmission organization, shall develop a
90	90	plan to construct transmission capacity necessary to deliver to
91	91	electric customers during peak load periods, in a manner that is
92	92	most beneficial and cost-effective to the customers, the electric
93	93	output from renewable energy technologies.
94	94	(h) The commission, after consultation with each
95	95	appropriate independent organization, electric reliability
96	96	council, or regional transmission organization, shall file a report
97	97	with the legislature not later than December 31 of each
98	98	even-numbered year. The report must include:
99	99	(1) an evaluation of the commission's implementation
100	100	of this section;
101	101	(2) the estimated cost of transmission service
102	102	improvements and other system improvements necessary to implement
103	103	this section; and
104	104	(3) an evaluation of the effects that additional peak
105	105	load renewable generation has on system reliability and on the cost
106	106	of alternatives to mitigate the effects.
107	107	(i) The commission may adopt rules requiring renewable peak
108	108	load power facilities to have reactive power control capabilities
109	109	or any other feasible technology designed to reduce the facilities'
110	110	effects on system reliability.
111	111	(j) As provided by this subsection, the commission shall
112	112	reduce the requirement under Subsection (c) for a retail electric
113	113	provider, municipally owned utility, or electric cooperative that
114	114	is subject to a requirement under this section and that serves a
115	115	customer receiving electric service at transmission-level voltage
116	116	if, before any year for which the commission calculates
117	117	requirements for peak load generating capacity from renewable
118	118	energy technologies under Subsection (c), the customer notifies the
119	119	commission in writing that the customer chooses not to support that
120	120	goal as established under this section for that year. The
121	121	commission shall exclude from the calculation of a retail electric
122	122	provider's, municipally owned utility's, or electric cooperative's
123	123	requirement under Subsection (c) energy sold by the retail electric
124	124	provider, municipally owned utility, or electric cooperative at
125	125	transmission-level voltage to customers who have submitted the
126	126	notice to the commission under this subsection for the applicable
127	127	year. The commission shall determine the reporting requirements
128	128	and schedule necessary to implement this subsection. This
129	129	subsection does not alter the goals established in Subsection (b)
130	130	or reduce the minimum statewide requirements of Subsection (c).
131	131	SECTION 3. This Act takes effect immediately if it receives
132	132	a vote of two-thirds of all the members elected to each house, as
133	133	provided by Section 39, Article III, Texas Constitution. If this
134	134	Act does not receive the vote necessary for immediate effect, this
135	135	Act takes effect September 1, 2009.