Texas 2015 - 84th Regular

Texas Senate Bill SB931 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Fraser S.B. No. 931
2		-	(In the Senate - Filed March 4, 2015; March 9, 2015, read
3		-	first time and referred to Committee on Natural Resources and
4		-	Economic Development; March 30, 2015, reported adversely, with
5		-	favorable Committee Substitute by the following vote: Yeas 8,
6		-	Nays 2; March 30, 2015, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 931 By: Fraser
	1	+	By: Fraser, Campbell S.B. No. 931
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the goal for renewable energy and competitive renewable
14	7		energy zones.
15	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	9		SECTION 1. Section 39.904, Utilities Code, is amended by
17	10		amending Subsections (a), (b), (c), (h), (j), and (o) and adding
18	11		Subsections (h-1) and (h-2) to read as follows:
19	12		(a) It is the intent of the legislature that by January 1,
20	13		2015, an additional 5,000 megawatts of generating capacity from
21	14		renewable energy technologies will have been installed in this
22	15		state. The cumulative installed renewable capacity in this state
23	16		shall total 5,880 megawatts by January 1, 2015, and the commission
24	17		shall establish a target of 10,000 megawatts of installed renewable
25	18		capacity by January 1, 2025. The cumulative installed renewable
26	19		capacity in this state shall total 2,280 megawatts by January 1,
27	20		2007, 3,272 megawatts by January 1, 2009, 4,264 megawatts by
28	21		January 1, 2011, 5,256 megawatts by January 1, 2013, and 5,880
29	22		megawatts by January 1, 2015. Of the renewable energy technology
30	23		generating capacity installed to meet the goal of this subsection
31	24		after September 1, 2005, the commission shall establish a target of
32	25		having at least 500 megawatts of capacity from a renewable energy
33	26		technology other than a source using wind energy. The goal and
34	27		targets established under this subsection terminate on December 31,
35	28		2015.
36	29		(b) The commission shall establish a renewable energy
37	30		credits trading program. Before December 31, 2015, a [Any] retail
38	31		electric provider, municipally owned utility, or electric
39	32		cooperative that does not satisfy the requirements of Subsection
40	33		(a) by directly owning or purchasing capacity using renewable
41	34		energy technologies shall purchase sufficient renewable energy
42	35		credits to satisfy the requirements by holding renewable energy
43	36		credits in lieu of capacity from renewable energy technologies. On
44	37		or after December 31, 2015, a retail electric provider shall
45	38		purchase sufficient renewable energy credits to verify any
46	39		marketing claims the provider makes related to the content of
47	40		renewable energy, as determined by the commission.
48	41		(c) Not later than January 1, 2000, the commission shall
49	42		adopt rules necessary to administer and enforce this section. At a
50	43		minimum, the rules shall:
51	44		(1) establish the minimum annual renewable energy
52	45		requirement for each retail electric provider, municipally owned
53	46		utility, and electric cooperative operating in this state in a
54	47		manner reasonably calculated by the commission to produce, on a
55	48		statewide basis, compliance with the requirement prescribed by
56	49		Subsection (a); and
57	50		(2) specify reasonable performance standards that all
58	51		renewable capacity additions must meet to earn renewable energy
59	52		credits [count against the requirement prescribed by Subsection
60	53		(a)] and that:
61	54		(A) are designed and operated so as to maximize
62	55		the energy output from the capacity additions in accordance with
63	56		then-current industry standards; and
64	57		(B) encourage the development, construction, and
65	58		operation of new renewable energy projects at those sites in this
66	59		state that have the greatest economic potential for capture and
67	60		development of this state's environmentally beneficial renewable
68	61		resources.
69	62		(h) The commission, in consultation with the independent
70	63		organization certified for ERCOT, shall plan for transmission needs
71	64		related to the incorporation of renewable energy in a manner
72	65		consistent with the planning process for other types of generation
73	66		resources, including by considering in the planning process [In
74	67		considering an application for a certificate of public convenience
75	68		and necessity for a transmission project intended to serve a
76	69		competitive renewable energy zone, the commission is not required
77	70		to consider] the factors provided by Section 37.056 [Sections
78	71		37.056(c)(1) and (2)].
79	72		(h-1) The commission may not designate a new competitive
80	73		renewable energy zone after January 1, 2015.
81	74		(h-2) After January 1, 2015, the commission may not approve
82	75		additional transmission facilities in a previously approved
83	76		competitive renewable energy zone unless:
84	77		(1) the facilities have been evaluated through the
85	78		planning process described by Subsection (h); or
86	79		(2) the addition of the facilities:
87	80		(A) will cost not more than $130 million; and
88	81		(B) involves adding a second circuit to existing
89	82		single circuit lines and associated electrical equipment
90	83		identified as necessary by the independent organization certified
91	84		for ERCOT in a system planning report issued before May 1, 2014.
92	85		(j) The commission, after consultation with each
93	86		appropriate independent organization, electric reliability
94	87		council, or regional transmission organization, shall file a report
95	88		with the legislature not later than December 31 of each
96	89		even-numbered year. The report must include[:
97	90		[(1) an evaluation of the commission's implementation
98	91		of competitive renewable energy zones;
99	92		[(2) the estimated cost of transmission service
100	93		improvements needed for each competitive renewable energy zone; and
101	94		[(3)] an evaluation of the effects that additional
102	95		renewable generation has on system reliability and on the cost of
103	96		alternatives to mitigate the effects.
104	97		(o) The commission may establish an alternative compliance
105	98		payment to meet the goal established by Subsection (a) before its
106	99		termination. An entity that has a renewable energy purchase
107	100		requirement under this section may elect to pay the alternative
108	101		compliance payment instead of applying renewable energy credits
109	102		toward the satisfaction of the entity's obligation under this
110	103		section. The commission may establish a separate alternative
111	104		compliance payment for the goal of 500 megawatts of capacity from
112	105		renewable energy technologies other than wind energy that an entity
113	106		may use until January 1, 2016, to meet that goal. The alternative
114	107		compliance payment for a renewable energy purchase requirement that
115	108		could be satisfied with a renewable energy credit from wind energy
116	109		may not be less than $2.50 per credit or greater than $20 per
117	110		credit. Prior to September 1, 2009, an alternative compliance
118	111		payment under this subsection may not be set above $5 per credit.
119	112		In implementing this subsection, the commission shall consider:
120	113		(1) the effect of renewable energy credit prices on
121	114		retail competition;
122	115		(2) the effect of renewable energy credit prices on
123	116		electric rates;
124	117		(3) the effect of the alternative compliance payment
125	118		level on the renewable energy credit market; and
126	119		(4) any other factors necessary to ensure the
127	120		continued development of the renewable energy industry in this
128	121		state while protecting ratepayers from unnecessary rate increases.
129	122		SECTION 2. The recovery of a transmission facility
130	123		investment made by an electric utility to serve a competitive
131	124		renewable energy zone is governed by the law in effect on the date
132	125		the facility is placed in service, regardless of whether the
133	126		facility is completed before, on, or after the effective date of
134	127		this Act, and that law is continued in effect for that purpose.
135	128		SECTION 3. This Act takes effect immediately if it receives
136	129		a vote of two-thirds of all the members elected to each house, as
137	130		provided by Section 39, Article III, Texas Constitution. If this
138	131		Act does not receive the vote necessary for immediate effect, this
139	132		Act takes effect September 1, 2015.
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