| 1 | 1 | | 87R10584 CXP-D |
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| 2 | 2 | | By: Rogers H.B. No. 3386 |
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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 a statewide requirement for natural gas generating |
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| 8 | 8 | | 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. Section 39.9044, Utilities Code, is amended by |
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| 11 | 11 | | amending Subsections (a) and (c) and adding Subsection (a-1) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (a) Of the total amount of generating capacity installed in |
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| 14 | 14 | | this state, [It is the intent of the legislature that] 50 percent |
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| 15 | 15 | | must [of the megawatts of generating capacity installed in this |
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| 16 | 16 | | state after January 1, 2000,] use natural gas. To the extent |
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| 17 | 17 | | permitted by law, the commission shall establish a program to |
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| 18 | 18 | | encourage utilities to comply with this section by using natural |
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| 19 | 19 | | gas produced in this state as the preferential fuel. This section |
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| 20 | 20 | | does not apply to generating capacity for renewable energy |
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| 21 | 21 | | technologies. |
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| 22 | 22 | | (a-1) If the commission determines that the market price for |
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| 23 | 23 | | natural gas at the wellhead in this state averages at least $6 per |
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| 24 | 24 | | 1,000 cubic feet for at least one month, the requirement |
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| 25 | 25 | | established by Subsection (a) does not apply until the price |
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| 26 | 26 | | averages less than $6 for at least one month. |
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| 27 | 27 | | (c) The [Not later than January 1, 2000, the] commission |
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| 28 | 28 | | shall adopt rules necessary to administer and enforce this section |
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| 29 | 29 | | and to perform any necessary studies in cooperation with the |
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| 30 | 30 | | Railroad Commission of Texas. At a minimum, the rules shall: |
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| 31 | 31 | | (1) establish the minimum annual natural gas |
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| 32 | 32 | | generation requirement for each power generation company, |
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| 33 | 33 | | municipally owned utility, and electric cooperative operating in |
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| 34 | 34 | | this state in a manner reasonably calculated by the commission to |
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| 35 | 35 | | produce, on a statewide basis, compliance with the requirement |
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| 36 | 36 | | prescribed by Subsection (a); and |
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| 37 | 37 | | (2) specify reasonable performance standards that all |
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| 38 | 38 | | natural gas capacity additions must meet to count against the |
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| 39 | 39 | | requirement prescribed by Subsection (a) and that: |
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| 40 | 40 | | (A) are designed and operated so as to maximize |
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| 41 | 41 | | the energy output from the capacity additions in accordance with |
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| 42 | 42 | | then-current industry standards and best industry standards; and |
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| 43 | 43 | | (B) encourage the development, construction, and |
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| 44 | 44 | | operation of new natural gas energy projects at those sites in this |
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| 45 | 45 | | state that have the greatest economic potential for capture and |
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| 46 | 46 | | development of this state's environmentally beneficial natural gas |
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| 47 | 47 | | resources. |
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| 48 | 48 | | SECTION 2. As soon as practicable after the effective date |
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| 49 | 49 | | of this Act, the Public Utility Commission of Texas shall adopt the |
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| 50 | 50 | | rules necessary to administer and enforce Section 39.9044, |
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| 51 | 51 | | Utilities Code, as amended by this Act. |
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| 52 | 52 | | SECTION 3. 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, 2021. |
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