88R13223 ANG-D By: Hall S.B. No. 2002 A BILL TO BE ENTITLED AN ACT relating to a limitation on the generation capacity provided for the ERCOT power grid from wind and solar generation facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.159, Utilities Code, as added by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular Session, 2021, is amended by amending Subsection (b) and adding Subsection (d) to read as follows: (b) The commission shall ensure that the independent organization certified under Section 39.151 for the ERCOT power region: (1) subject to Subsection (d), establishes requirements to meet the reliability needs of the power region; (2) periodically, but at least annually, determines the quantity and characteristics of ancillary or reliability services necessary to ensure appropriate reliability during extreme heat and extreme cold weather conditions and during times of low non-dispatchable power production in the power region; (3) procures ancillary or reliability services on a competitive basis to ensure appropriate reliability during extreme heat and extreme cold weather conditions and during times of low non-dispatchable power production in the power region; (4) develops appropriate qualification and performance requirements for providing services under Subdivision (3), including appropriate penalties for failure to provide the services; and (5) sizes the services procured under Subdivision (3) to prevent prolonged rotating outages due to net load variability in high demand and low supply scenarios. (d) Beginning January 1, 2027, notwithstanding any other law, if the commission determines that installed generation capacity from wind and solar generation facilities is contributing more than 20 percent of the available generation capacity for the ERCOT power region, the commission shall: (1) prohibit the interconnection of new wind and solar generation facilities to the power grid; and (2) by rule establish standards for the disconnection of wind and solar power facilities from the power grid to ensure that wind and solar generation is not contributing more than 20 percent of the available generation capacity for the ERCOT power region at any time. SECTION 2. This Act takes effect September 1, 2023.