| 1 | 1 | | 88R13223 ANG-D |
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| 2 | 2 | | By: Hall S.B. No. 2002 |
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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 limitation on the generation capacity provided for |
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| 8 | 8 | | the ERCOT power grid from wind and solar generation facilities. |
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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 39.159, Utilities Code, as added by |
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| 11 | 11 | | Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular |
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| 12 | 12 | | Session, 2021, is amended by amending Subsection (b) and adding |
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| 13 | 13 | | Subsection (d) to read as follows: |
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| 14 | 14 | | (b) The commission shall ensure that the independent |
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| 15 | 15 | | organization certified under Section 39.151 for the ERCOT power |
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| 16 | 16 | | region: |
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| 17 | 17 | | (1) subject to Subsection (d), establishes |
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| 18 | 18 | | requirements to meet the reliability needs of the power region; |
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| 19 | 19 | | (2) periodically, but at least annually, determines |
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| 20 | 20 | | the quantity and characteristics of ancillary or reliability |
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| 21 | 21 | | services necessary to ensure appropriate reliability during |
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| 22 | 22 | | extreme heat and extreme cold weather conditions and during times |
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| 23 | 23 | | of low non-dispatchable power production in the power region; |
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| 24 | 24 | | (3) procures ancillary or reliability services on a |
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| 25 | 25 | | competitive basis to ensure appropriate reliability during extreme |
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| 26 | 26 | | heat and extreme cold weather conditions and during times of low |
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| 27 | 27 | | non-dispatchable power production in the power region; |
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| 28 | 28 | | (4) develops appropriate qualification and |
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| 29 | 29 | | performance requirements for providing services under Subdivision |
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| 30 | 30 | | (3), including appropriate penalties for failure to provide the |
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| 31 | 31 | | services; and |
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| 32 | 32 | | (5) sizes the services procured under Subdivision (3) |
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| 33 | 33 | | to prevent prolonged rotating outages due to net load variability |
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| 34 | 34 | | in high demand and low supply scenarios. |
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| 35 | 35 | | (d) Beginning January 1, 2027, notwithstanding any other |
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| 36 | 36 | | law, if the commission determines that installed generation |
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| 37 | 37 | | capacity from wind and solar generation facilities is contributing |
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| 38 | 38 | | more than 20 percent of the available generation capacity for the |
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| 39 | 39 | | ERCOT power region, the commission shall: |
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| 40 | 40 | | (1) prohibit the interconnection of new wind and solar |
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| 41 | 41 | | generation facilities to the power grid; and |
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| 42 | 42 | | (2) by rule establish standards for the disconnection |
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| 43 | 43 | | of wind and solar power facilities from the power grid to ensure |
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| 44 | 44 | | that wind and solar generation is not contributing more than 20 |
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| 45 | 45 | | percent of the available generation capacity for the ERCOT power |
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| 46 | 46 | | region at any time. |
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| 47 | 47 | | SECTION 2. This Act takes effect September 1, 2023. |
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