| 1 | 1 | | 81R4750 TJS-D |
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| 2 | 2 | | By: Shapleigh S.B. No. 620 |
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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 the state's goal for non-wind renewable electric |
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| 8 | 8 | | generating capacity. |
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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 6,000 [5,000] megawatts of generating capacity |
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| 14 | 14 | | from 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 6,880 [5,880] megawatts by January 1, 2015, and the |
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| 17 | 17 | | commission shall establish a target of 11,000 [10,000] megawatts of |
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| 18 | 18 | | installed renewable capacity by January 1, 2025. The cumulative |
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| 19 | 19 | | installed renewable capacity in this state shall total 5,264 [2,280 |
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| 20 | 20 | | megawatts by January 1, 2007, 3,272 megawatts by January 1, 2009, |
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| 21 | 21 | | 4,264] megawatts by January 1, 2011, 6,256 [5,256] megawatts by |
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| 22 | 22 | | January 1, 2013, and 6,880 [5,880] megawatts by January 1, 2015. Of |
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| 23 | 23 | | the renewable energy technology generating capacity installed to |
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| 24 | 24 | | meet the goal of this subsection after September 1, 2005, the |
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| 25 | 25 | | commission shall establish a target of having at least 1,500 [500] |
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| 26 | 26 | | megawatts of capacity from a renewable energy technology other than |
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| 27 | 27 | | a source using wind energy by January 1, 2015. |
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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 1,500 [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 immediately if it receives |
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| 53 | 53 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 54 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 55 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 56 | | Act takes effect September 1, 2009. |
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