| 1 | 1 | | 88R4127 DIO-D |
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| 2 | 2 | | By: Gervin-Hawkins H.B. No. 1013 |
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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 statewide requirements for renewable electric |
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| 8 | 8 | | generating 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. Sections 39.904(a), (c), and (o), Utilities |
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| 11 | 11 | | Code, are amended to read as follows: |
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| 12 | 12 | | (a) Of the total amount of generating capacity installed in |
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| 13 | 13 | | this state: |
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| 14 | 14 | | (1) 50 percent must come from renewable energy |
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| 15 | 15 | | technologies by January 1, 2030; and |
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| 16 | 16 | | (2) 100 percent must come from renewable energy |
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| 17 | 17 | | technologies by January 1, 2050. [It is the intent of the |
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| 18 | 18 | | legislature that by January 1, 2015, an additional 5,000 megawatts |
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| 19 | 19 | | of generating capacity from renewable energy technologies will have |
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| 20 | 20 | | been installed in this state. The cumulative installed renewable |
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| 21 | 21 | | capacity in this state shall total 5,880 megawatts by January 1, |
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| 22 | 22 | | 2015, and the commission shall establish a target of 10,000 |
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| 23 | 23 | | megawatts of installed renewable capacity by January 1, 2025. The |
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| 24 | 24 | | cumulative installed renewable capacity in this state shall total |
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| 25 | 25 | | 2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1, |
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| 26 | 26 | | 2009, 4,264 megawatts by January 1, 2011, 5,256 megawatts by |
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| 27 | 27 | | January 1, 2013, and 5,880 megawatts by January 1, 2015. Of the |
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| 28 | 28 | | renewable energy technology generating capacity installed to meet |
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| 29 | 29 | | the goal of this subsection after September 1, 2005, the commission |
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| 30 | 30 | | shall establish a target of having at least 500 megawatts of |
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| 31 | 31 | | capacity from a renewable energy technology other than a source |
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| 32 | 32 | | using wind energy.] |
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| 33 | 33 | | (c) The [Not later than January 1, 2000, the] commission |
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| 34 | 34 | | shall adopt rules necessary to administer and enforce this section. |
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| 35 | 35 | | At a minimum, the rules shall: |
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| 36 | 36 | | (1) establish the minimum annual renewable energy |
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| 37 | 37 | | requirement for each retail electric provider, municipally owned |
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| 38 | 38 | | utility, and electric cooperative operating in this state in a |
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| 39 | 39 | | manner reasonably calculated by the commission to produce, on a |
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| 40 | 40 | | statewide basis, compliance with the requirement prescribed by |
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| 41 | 41 | | Subsection (a); and |
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| 42 | 42 | | (2) specify reasonable performance standards that all |
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| 43 | 43 | | renewable energy technologies [capacity additions] must meet to |
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| 44 | 44 | | count against the requirement prescribed by Subsection (a) and |
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| 45 | 45 | | that: |
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| 46 | 46 | | (A) are designed and operated so as to maximize |
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| 47 | 47 | | the energy output from the technologies [capacity additions] in |
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| 48 | 48 | | accordance with then-current industry standards; and |
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| 49 | 49 | | (B) encourage the development, construction, and |
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| 50 | 50 | | operation of new renewable energy projects at those sites in this |
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| 51 | 51 | | state that have the greatest economic potential for capture and |
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| 52 | 52 | | development of this state's environmentally beneficial renewable |
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| 53 | 53 | | resources. |
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| 54 | 54 | | (o) The commission may establish an alternative compliance |
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| 55 | 55 | | payment. An entity that has a renewable energy purchase requirement |
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| 56 | 56 | | under this section may elect to pay the alternative compliance |
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| 57 | 57 | | payment instead of applying renewable energy credits toward the |
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| 58 | 58 | | satisfaction of the entity's obligation under this section. [The |
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| 59 | 59 | | commission may establish a separate alternative compliance payment |
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| 60 | 60 | | for the goal of 500 megawatts of capacity from renewable energy |
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| 61 | 61 | | technologies other than wind energy. The alternative compliance |
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| 62 | 62 | | payment for a renewable energy purchase requirement that could be |
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| 63 | 63 | | satisfied with a renewable energy credit from wind energy may not be |
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| 64 | 64 | | less than $2.50 per credit or greater than $20 per credit. Prior to |
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| 65 | 65 | | September 1, 2009, an alternative compliance payment under this |
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| 66 | 66 | | subsection may not be set above $5 per credit.] In implementing this |
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| 67 | 67 | | subsection, the commission shall consider: |
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| 68 | 68 | | (1) the effect of renewable energy credit prices on |
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| 69 | 69 | | retail competition; |
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| 70 | 70 | | (2) the effect of renewable energy credit prices on |
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| 71 | 71 | | electric rates; |
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| 72 | 72 | | (3) the effect of the alternative compliance payment |
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| 73 | 73 | | level on the renewable energy credit market; and |
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| 74 | 74 | | (4) any other factors necessary to ensure the |
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| 75 | 75 | | continued development of the renewable energy industry in this |
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| 76 | 76 | | state while protecting ratepayers from unnecessary rate increases. |
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| 77 | 77 | | SECTION 2. Not later than January 1, 2024, the Public |
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| 78 | 78 | | Utility Commission of Texas shall adopt rules required to |
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| 79 | 79 | | administer and enforce Section 39.904, Utilities Code, as amended |
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| 80 | 80 | | by this Act. |
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| 81 | 81 | | SECTION 3. This Act takes effect September 1, 2023. |
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