By: Strama H.B. No. 3583
A BILL TO BE ENTITLED
AN ACT
relating to renewable energy technology capable of serving peak
demand.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.904, Utilities Code, is amended by
amending Subsections (a), (b), and (o) and adding Subsection (d-1)
to read as follows:
(a) It is the intent of the legislature that after January
1, 2022, [by January 1, 2015, an additional 5,000] 10,880 megawatts
of generating capacity from renewable energy technologies will have
been installed in this state, 5,000 megawatts of which must be
renewable energy technology capable of serving peak demand. The
cumulative installed renewable capacity in this state shall total:
(1) 6,880 megawatts by January 1, 2015, 1,000
megawatts of which must be from renewable energy technology capable
of serving peak demand and 5,880 megawatts of which may be from
other renewable energy technologies;
(2) 7,880 megawatts by January 1, 2016, 2,000
megawatts of which must be from renewable energy technology capable
of serving peak demand and 5,880 megawatts of which may be from
other renewable energy technologies;
(3) 8,880 megawatts by January 1, 2018, 3,000
megawatts of which must be from renewable energy technology capable
of serving peak demand and 5,880 megawatts of which may be from
other renewable energy technologies;
(4) 9,880 megawatts by January 1, 2020, 4,000
megawatts of which must be from renewable energy technology capable
of serving peak demand and 5,880 megawatts of which may be from
other renewable energy technologies;
(5) 10,880 megawatts after January 1, 2022, 5,000
megawatts of which must be from renewable energy technology capable
of serving peak demand and 5,880 megawatts of which may be from
other renewable energy technologies[5,880 megawatts by January 1,
2015, and the commission shall establish a target of 10,000
megawatts of installed renewable capacity by January 1, 2025. The
cumulative installed renewable capacity in this state shall total
2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1,
2009, 4,264 megawatts by January 1, 2011, 5,256 megawatts by
January 1, 2013, and 5,880 megawatts by January 1, 2015. Of the
renewable energy technology generating capacity installed to meet
the goal of this subsection after September 1, 2005, the commission
shall establish a target of having at least 500 megawatts of
capacity from a renewable energy technology other than a source
using wind energy].
(b) The commission shall establish a renewable energy
credits trading program. Any retail electric provider, municipally
owned utility, or electric cooperative that does not satisfy the
requirements of Subsection (a) by directly owning or purchasing
capacity using renewable energy technologies shall purchase
sufficient renewable energy credits to satisfy the requirements by
holding renewable energy credits in lieu of capacity from renewable
energy technologies.
(d-1) In this section, "renewable energy technology capable
of serving peak demand" means a renewable energy technology that:
(1) may be dispatched by the operator regardless of
environmental or weather conditions; or
(2) during the preceding year, provided energy at a
capacity factor of at least 40 percent between 1 p.m. and 8 p.m. in
June, July, August, and September.
(o) The commission may establish an alternative compliance
payment. An entity that has a renewable energy purchase requirement
under this section may elect to pay the alternative compliance
payment instead of applying renewable energy credits toward the
satisfaction of the entity's obligation under this section. The
commission may establish a separate alternative compliance payment
for the goal of installing 5,000 [500] megawatts of capacity from
renewable energy technologies capable of serving peak demand [other
than wind energy]. The alternative compliance payment for a
renewable energy purchase requirement that could be satisfied with
a renewable energy credit from wind energy may not be less than
$2.50 per credit or greater than $20 per credit. Prior to September
1, 2009, an alternative compliance payment under this subsection
may not be set above $5 per credit. In implementing this subsection,
the commission shall consider:
(1) the effect of renewable energy credit prices on
retail competition;
(2) the effect of renewable energy credit prices on
electric rates;
(3) the effect of the alternative compliance payment
level on the renewable energy credit market; and
(4) any other factors necessary to ensure the
continued development of the renewable energy industry in this
state while protecting ratepayers from unnecessary rate increases.
SECTION 2. This Act takes effect September 1, 2013.