| 1 | 1 | | 88R10520 CXP-D |
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| 2 | 2 | | By: Hunter H.B. No. 4836 |
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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 the legislature's goals 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. Sections 39.9044(a) and (c), Utilities Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) It is the intent of the legislature that 50 percent of |
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| 13 | 13 | | the megawatts of generating capacity installed in this state after |
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| 14 | 14 | | January 1, 2000, use natural gas. To the extent permitted by law, |
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| 15 | 15 | | the commission shall establish a program to encourage utilities to |
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| 16 | 16 | | comply with this section by using natural gas produced in this state |
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| 17 | 17 | | as the preferential fuel. [This section does not apply to |
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| 18 | 18 | | generating capacity for renewable energy technologies.] |
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| 19 | 19 | | (c) The [Not later than January 1, 2000, the] commission |
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| 20 | 20 | | shall adopt rules necessary to administer and enforce this section |
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| 21 | 21 | | and to perform any necessary studies in cooperation with the |
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| 22 | 22 | | Railroad Commission of Texas. At a minimum, the rules shall: |
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| 23 | 23 | | (1) establish the minimum annual natural gas |
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| 24 | 24 | | generation requirement for each power generation company, |
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| 25 | 25 | | municipally owned utility, and electric cooperative operating in |
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| 26 | 26 | | this state in a manner reasonably calculated by the commission to |
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| 27 | 27 | | produce, on a statewide basis, compliance with the requirement |
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| 28 | 28 | | prescribed by Subsection (a); and |
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| 29 | 29 | | (2) specify reasonable performance standards that all |
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| 30 | 30 | | natural gas capacity additions must meet to count against the |
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| 31 | 31 | | requirement prescribed by Subsection (a) and that: |
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| 32 | 32 | | (A) are designed and operated so as to maximize |
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| 33 | 33 | | the energy output from the capacity additions in accordance with |
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| 34 | 34 | | then-current industry standards and best industry standards; and |
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| 35 | 35 | | (B) encourage the development, construction, and |
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| 36 | 36 | | operation of new natural gas energy projects at those sites in this |
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| 37 | 37 | | state that have the greatest economic potential for capture and |
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| 38 | 38 | | development of this state's environmentally beneficial natural gas |
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| 39 | 39 | | resources. |
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| 40 | 40 | | SECTION 2. This Act takes effect September 1, 2023. |
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