81R3864 JJT-D
By: Ellis S.B. No. 436
A BILL TO BE ENTITLED
AN ACT
relating to a statewide goal for electric energy generation to meet
base load demands from renewable energy technologies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.002, Utilities Code, is amended to
read as follows:
Sec. 39.002. APPLICABILITY. This chapter, other than
Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051,
39.9052, [and] 39.914(e), and 39.918, does not apply to a
municipally owned utility or an electric cooperative. Sections
39.157(e), 39.203, [and] 39.904, and 39.918, however, apply only to
a municipally owned utility or an electric cooperative that is
offering customer choice. If there is a conflict between the
specific provisions of this chapter and any other provisions of
this title, except for Chapters 40 and 41, the provisions of this
chapter control.
SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.918 to read as follows:
Sec. 39.918. GOAL FOR BASE LOAD RENEWABLE ENERGY
GENERATION. (a) In this section, "renewable energy technology"
has the meaning assigned by Section 39.904.
(b) It is the intent of the legislature that by January 1,
2020, additional generating capacity from renewable energy
technologies will have been installed in this state that is capable
of producing not less than an additional 3,000 megawatts to meet
base load demands, as compared to the base load generating capacity
from renewable energy technologies installed in this state as of
September 1, 2009, for use by retail electric providers,
municipally owned utilities, and electric cooperatives and their
customers.
(c) Each retail electric provider, municipally owned
utility, or electric cooperative in this state shall directly own
or purchase the appropriate generating capacity or base load
renewable energy credits not later than January 1, 2020, so that the
installed base load generating capacity from renewable energy
technologies in this state increases to meet the goal provided by
Subsection (b).
(d) The commission by rule shall establish a base load
renewable energy credits trading program. Each retail electric
provider, municipally owned utility, or electric cooperative that
does not satisfy the requirements of Subsection (c) by directly
owning or purchasing generating capacity from sources using
renewable energy technologies to meet base load demands shall
purchase sufficient base load renewable energy credits to satisfy
the requirements by holding base load renewable energy credits in
lieu of base load generating capacity from renewable energy
technologies. Commission rules must provide for base load capacity
from electric energy that is generated by renewable energy
technologies and stored for later release to the electric
transmission and distribution system to be eligible for a credit
that is double that for which capacity from renewable energy
technologies alone is eligible.
(e) The commission shall adopt rules necessary to
administer and enforce this section. At a minimum, the rules shall:
(1) establish the minimum annual base load renewable
energy requirement for each retail electric provider, municipally
owned utility, and electric cooperative operating in this state in
a manner reasonably calculated by the commission to produce, on a
statewide basis, compliance with the requirement prescribed by
Subsection (c); and
(2) specify reasonable performance standards that all
base load renewable capacity additions must meet to count against
the requirement prescribed by Subsection (c) and that:
(A) are designed and operated so as to maximize
the energy output from the capacity additions in accordance with
then-current industry standards, as necessary to meet base load
demands; and
(B) encourage the development, construction, and
operation of new base load renewable energy projects at those sites
in this state that have the greatest economic potential for capture
and development of this state's environmentally beneficial
renewable resources.
(f) A municipally owned utility operating a gas
distribution system may credit toward satisfaction of the
requirements of this section any production or acquisition of
landfill gas supplied to the gas distribution system, based on
conversion to kilowatt hours of the thermal energy content in
British thermal units of the renewable source and using for the
conversion factor the systemwide average heat rate of the gas-fired
units of the combined utility's electric system as measured in
British thermal units per kilowatt hour.
(g) The commission, after consultation with each
appropriate independent organization, electric reliability
council, or regional transmission organization, shall develop a
plan to construct transmission capacity necessary to deliver to
electric customers in a manner that is most beneficial and
cost-effective to the customers the electric output from renewable
energy technologies to meet base load demands.
(h) The commission, after consultation with each
appropriate independent organization, electric reliability
council, or regional transmission organization, shall file a report
with the legislature not later than December 31 of each
even-numbered year. The report must include:
(1) an evaluation of the commission's implementation
of this section;
(2) the estimated cost of transmission service
improvements and other system improvements necessary to implement
this section; and
(3) an evaluation of the effects that additional base
load renewable generation has on system reliability and on the cost
of alternatives to mitigate the effects.
(i) The commission may adopt rules requiring renewable base
load power facilities to have reactive power control capabilities
or any other feasible technology designed to reduce the facilities'
effects on system reliability.
(j) As provided by this subsection, the commission shall
reduce the requirement under Subsection (c) for a retail electric
provider, municipally owned utility, or electric cooperative that
is subject to a requirement under this section and that serves a
customer receiving electric service at transmission-level voltage
if, before any year for which the commission calculates
requirements for base load generating capacity from renewable
energy technologies under Subsection (c), the customer notifies the
commission in writing that the customer chooses not to support that
goal as established under this section for that year. The
commission shall exclude from the calculation of a retail electric
provider's, municipally owned utility's, or electric cooperative's
requirement under Subsection (c) energy sold by the retail electric
provider, municipally owned utility, or electric cooperative at
transmission-level voltage to customers who have submitted the
notice to the commission under this subsection for the applicable
year. The commission shall determine the reporting requirements
and schedule necessary to implement this subsection. This
subsection does not alter the goal established in Subsection (b) or
reduce the minimum statewide requirements of Subsection (c).
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.