87R10584 CXP-D
By: Rogers H.B. No. 3386
A BILL TO BE ENTITLED
AN ACT
relating to a statewide requirement for natural gas generating
capacity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.9044, Utilities Code, is amended by
amending Subsections (a) and (c) and adding Subsection (a-1) to
read as follows:
(a) Of the total amount of generating capacity installed in
this state, [It is the intent of the legislature that] 50 percent
must [of the megawatts of generating capacity installed in this
state after January 1, 2000,] use natural gas. To the extent
permitted by law, the commission shall establish a program to
encourage utilities to comply with this section by using natural
gas produced in this state as the preferential fuel. This section
does not apply to generating capacity for renewable energy
technologies.
(a-1) If the commission determines that the market price for
natural gas at the wellhead in this state averages at least $6 per
1,000 cubic feet for at least one month, the requirement
established by Subsection (a) does not apply until the price
averages less than $6 for at least one month.
(c) The [Not later than January 1, 2000, the] commission
shall adopt rules necessary to administer and enforce this section
and to perform any necessary studies in cooperation with the
Railroad Commission of Texas. At a minimum, the rules shall:
(1) establish the minimum annual natural gas
generation requirement for each power generation company,
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
natural gas capacity additions must meet to 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 best industry standards; and
(B) encourage the development, construction, and
operation of new natural gas energy projects at those sites in this
state that have the greatest economic potential for capture and
development of this state's environmentally beneficial natural gas
resources.
SECTION 2. As soon as practicable after the effective date
of this Act, the Public Utility Commission of Texas shall adopt the
rules necessary to administer and enforce Section 39.9044,
Utilities Code, as amended by this Act.
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, 2021.