LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 23, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB436 by Ellis (Relating to a statewide goal for electric energy generation to meet base load demands from renewable energy technologies.), As Introduced No significant fiscal implication to the State is anticipated. The bill would establish a goal of 3,000 megawatts of additional generating capacity from renewable energy technologies. The bill would require the Public Utility Commission (PUC) to establish by rule a base load renewable energy credit trading program to support reaching the goal. The bill would require the PUC to develop a plan to construct transmission capacity necessary to deliver to customers the output from renewable energy technologies to meet base load demands. The bill would require the PUC to submit a report to the legislature no later than December 31 of each even-numbered year regarding the implementation of these provisions, the estimated cost of transmission service improvements and other necessary system improvements, and an evaluation of the effects that additional base-load renewable generation has on system reliability. The bill would also authorize the PUC to adopt rules requiring renewable base-load power facilities to have reactive power control capabilities or any other technology designed to reduce the facilities' effects on system reliability. Based on the analysis of the Public Utility Commission, the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact According to information provided by the Texas Public Power Association, the provisions of the bill would not have an immediate fiscal impact on municipally owned utilities. Source Agencies:473 Public Utility Commission of Texas LBB Staff: JOB, JRO, ES LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 23, 2009 TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB436 by Ellis (Relating to a statewide goal for electric energy generation to meet base load demands from renewable energy technologies.), As Introduced TO: Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB436 by Ellis (Relating to a statewide goal for electric energy generation to meet base load demands from renewable energy technologies.), As Introduced Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board SB436 by Ellis (Relating to a statewide goal for electric energy generation to meet base load demands from renewable energy technologies.), As Introduced SB436 by Ellis (Relating to a statewide goal for electric energy generation to meet base load demands from renewable energy technologies.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would establish a goal of 3,000 megawatts of additional generating capacity from renewable energy technologies. The bill would require the Public Utility Commission (PUC) to establish by rule a base load renewable energy credit trading program to support reaching the goal. The bill would require the PUC to develop a plan to construct transmission capacity necessary to deliver to customers the output from renewable energy technologies to meet base load demands. The bill would require the PUC to submit a report to the legislature no later than December 31 of each even-numbered year regarding the implementation of these provisions, the estimated cost of transmission service improvements and other necessary system improvements, and an evaluation of the effects that additional base-load renewable generation has on system reliability. The bill would also authorize the PUC to adopt rules requiring renewable base-load power facilities to have reactive power control capabilities or any other technology designed to reduce the facilities' effects on system reliability. Based on the analysis of the Public Utility Commission, the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The bill would establish a goal of 3,000 megawatts of additional generating capacity from renewable energy technologies. The bill would require the Public Utility Commission (PUC) to establish by rule a base load renewable energy credit trading program to support reaching the goal. The bill would require the PUC to develop a plan to construct transmission capacity necessary to deliver to customers the output from renewable energy technologies to meet base load demands. The bill would require the PUC to submit a report to the legislature no later than December 31 of each even-numbered year regarding the implementation of these provisions, the estimated cost of transmission service improvements and other necessary system improvements, and an evaluation of the effects that additional base-load renewable generation has on system reliability. The bill would also authorize the PUC to adopt rules requiring renewable base-load power facilities to have reactive power control capabilities or any other technology designed to reduce the facilities' effects on system reliability. Based on the analysis of the Public Utility Commission, the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact According to information provided by the Texas Public Power Association, the provisions of the bill would not have an immediate fiscal impact on municipally owned utilities. Source Agencies: 473 Public Utility Commission of Texas 473 Public Utility Commission of Texas LBB Staff: JOB, JRO, ES JOB, JRO, ES