By: Fraser S.B. No. 931
(In the Senate - Filed March 4, 2015; March 9, 2015, read
first time and referred to Committee on Natural Resources and
Economic Development; March 30, 2015, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 8,
Nays 2; March 30, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 931 By: Fraser
A BILL TO BE ENTITLED
AN ACT
relating to the goal for renewable energy and competitive renewable
energy zones.
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), (c), (h), (j), and (o) and adding
Subsections (h-1) and (h-2) to read as follows:
(a) It is the intent of the legislature that by January 1,
2015, an additional 5,000 megawatts of generating capacity from
renewable energy technologies will have been installed in this
state. The cumulative installed renewable capacity in this state
shall total 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. The goal and
targets established under this subsection terminate on December 31,
2015.
(b) The commission shall establish a renewable energy
credits trading program. Before December 31, 2015, a [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. On
or after December 31, 2015, a retail electric provider shall
purchase sufficient renewable energy credits to verify any
marketing claims the provider makes related to the content of
renewable energy, as determined by the commission.
(c) Not later than January 1, 2000, the commission shall
adopt rules necessary to administer and enforce this section. At a
minimum, the rules shall:
(1) establish the minimum annual 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 (a); and
(2) specify reasonable performance standards that all
renewable capacity additions must meet to earn renewable energy
credits [count against the requirement prescribed by Subsection
(a)] 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; and
(B) encourage the development, construction, and
operation of new 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.
(h) The commission, in consultation with the independent
organization certified for ERCOT, shall plan for transmission needs
related to the incorporation of renewable energy in a manner
consistent with the planning process for other types of generation
resources, including by considering in the planning process [In
considering an application for a certificate of public convenience
and necessity for a transmission project intended to serve a
competitive renewable energy zone, the commission is not required
to consider] the factors provided by Section 37.056 [Sections
37.056(c)(1) and (2)].
(h-1) The commission may not designate a new competitive
renewable energy zone after January 1, 2015.
(h-2) After January 1, 2015, the commission may not approve
additional transmission facilities in a previously approved
competitive renewable energy zone unless:
(1) the facilities have been evaluated through the
planning process described by Subsection (h); or
(2) the addition of the facilities:
(A) will cost not more than $130 million; and
(B) involves adding a second circuit to existing
single circuit lines and associated electrical equipment
identified as necessary by the independent organization certified
for ERCOT in a system planning report issued before May 1, 2014.
(j) 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 competitive renewable energy zones;
[(2) the estimated cost of transmission service
improvements needed for each competitive renewable energy zone; and
[(3)] an evaluation of the effects that additional
renewable generation has on system reliability and on the cost of
alternatives to mitigate the effects.
(o) The commission may establish an alternative compliance
payment to meet the goal established by Subsection (a) before its
termination. 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 500 megawatts of capacity from
renewable energy technologies other than wind energy that an entity
may use until January 1, 2016, to meet that goal. 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. The recovery of a transmission facility
investment made by an electric utility to serve a competitive
renewable energy zone is governed by the law in effect on the date
the facility is placed in service, regardless of whether the
facility is completed before, on, or after the effective date of
this Act, and that law is continued in effect for that purpose.
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, 2015.
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