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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a Tex Sun solar energy system rebate |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.903(a), (b), and (e), Utilities Code, |
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are amended to read as follows: |
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(a) The system benefit fund is created as a trust fund with |
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the comptroller in the state treasury and shall be administered by |
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the Commission as trustee on behalf of the recipients of money from |
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the fund [an account in the general revenue fund]. Money in the |
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account may be appropriated only for the purposes provided by this |
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section or other law. Interest earned on the system benefit fund |
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shall be credited to the fund. [Section 403.095, Government Code,
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does not apply to the system benefit fund.] |
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(b) The system benefit fund is financed by a nonbypassable |
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fee set by the commission at [in] an amount not to exceed 65 cents |
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per megawatt hour for energy efficiency programs and 65 cents per |
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megawatt hour for solar energy programs. The system benefit fund |
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fee for energy efficiency programs is allocated to customers based |
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on the amount of kilowatt hours used. The funds will be allocated to |
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the following programs: |
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(1) funds collected through the 65 cent per megawatt |
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charge will be allocated to Energy Efficiency Programs as per |
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Sec.39.903(e), and |
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(2) funds collected through the 65 cent per megawatt |
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charge will be allocated to the TexSUN solar rebate program |
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administered by the Texas Public Utilities Commission as per |
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Sec.39.9031. |
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(e) Money for Energy Efficiency Programs from [in] the |
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system benefit fund may be appropriated to provide funding solely |
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for the following regulatory purposes, in the following order of |
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priority: |
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(1) programs to: |
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(A) assist low-income electric customers by |
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providing the 10 percent reduced rate prescribed by Subsection (h); |
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and |
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(B) provide one-time bill payment assistance to |
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electric customers who are or who have in their households one or |
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more seriously ill or disabled low-income persons and who have been |
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threatened with disconnection for nonpayment |
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(2) customer education programs, administrative |
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expenses incurred by the commission in implementing and |
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administering this chapter, and expenses incurred by the office |
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under this chapter; |
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(3) programs to assist low-income electric customers |
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by providing the targeted energy efficiency programs described by |
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Subsection (f) (2); |
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(4) programs to assist low-income electric customers |
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by providing the 20 percent reduced rate prescribed by Subsection |
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(h); and |
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(5) reimbursement to the commission and the Health and |
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Human Services commission for expenses incurred in the |
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implementation and administration of an integrated eligibility |
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process created under Section 17.007 for customer service discounts |
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relating to retail electric service, including outreach expenses |
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the commission determines are reasonable and necessary. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Sections 39.9031 and 39.9032 to read as follows: |
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Sec. 39.9031. TexSUN SOLAR ENERGY SYSTEM REBATE PROGRAM. |
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(a) In this section: |
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(1) "Solar Energy System" means a solar electric |
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device used for the function of generating electricity that is |
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installed with a five-year warranty against breakdown or undue |
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degradation. |
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(2) "Renewable Energy System" means a renewable energy |
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device utilizing solar or wind energy for the function of |
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generating electricity that is installed with a five-year warranty |
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against breakdown or undue degradation. |
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(b) The commission shall administer the TexSUN Solar Energy |
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System Rebate Program for all ratepayers of the regulated |
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Transmission and Distribution Utilities. |
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(c) The commission shall be a trustee of the funds collected |
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through the systems benefit fund for the TexSUN Solar Energy System |
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Rebate Program on behalf of the customers who receive solar |
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rebates. |
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(d) The commission shall begin the process of establishing |
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rules for the collection and distribution of the TexSUN Solar |
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Energy System Rebate Program funds through the transmission and |
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distribution utilities of the state, commencing September 1, 2007. |
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The TexSUN Solar Energy System Rebate Program shall commence no |
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later than January 1, 2008 |
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(e) The commission by rule shall adopt procedures for |
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requiring a transmission and distribution utility to provide a |
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standard rebate offer to a customer that interconnects an eligible |
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solar energy system to the utility's transmission and distribution |
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system. The standard rebate shall be calculated based on the direct |
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current rating of the PV module multiplied by the efficiency of the |
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direct current to alternating current inverter. The standard |
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rebate offer shall decline at an average rate of 10% per year over |
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the term of the program. The initial rebate offer shall be: |
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(1) $4.50 per watt for a residential customer; |
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(2) $4.00 per watt for a nonresidential customer that |
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installs a solar energy system with a generating capacity of less |
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than or equal to 200 kilowatts; and |
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(3) $3.50 per watt for a nonresidential customer that |
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installs a solar energy system with a generating capacity greater |
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than 200 kilowatts and up to a maximum of one-thousand kilowatts. |
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(f) The commission shall: |
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(1) institute mechanisms to ensure that solar |
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incentives are set at the optimal level to ensure the program funds |
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are used efficiently, while ensuring that the solar market develops |
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at a rate commensurate with the level of annual funding; |
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(2) establish a goal that the program funds are fully |
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allocated each year; |
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(3) hold a stakeholder workshop three times per year, |
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inviting all interested parties, to determine if the incentive is |
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set at the appropriate level to maintain an efficient and steady |
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flow of incentives to retail customers; |
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(4) have the right to increase or decrease the |
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incentive levels based on market conditions, especially noting |
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changes to or expiration of the Federal Solar Investment Tax |
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Credit. The customer rebate level for residential and |
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nonresidential customers shall be achieved through a combination of |
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state and federal incentive amounts, with the state incentive |
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contribution adjusted to accommodate changes in available federal |
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incentive levels; and |
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(5) shall require the transmission and distribution |
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utility to submit an annual report that provides information |
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relating to the actions taken to comply with section 39.9031. The |
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report shall be done within the time prescribed and in a format |
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approved by the commission and include information including, but |
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not limited to the following: |
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(A) total solar rebate funding available; |
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(B) number of solar rebates allocated; |
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(C) funding for solar rebates allocated; and |
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(D) cumulative installed solar capacity. |
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(g) A transmission and distribution utility shall determine |
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the amounts allocated to provide rebates to residential and |
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nonresidential customers based on the percentage of funds collected |
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for this section under Section 39.903 from each class of customer. |
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Amounts allocated for rebates to one class of customers may not be |
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reallocated for rebates for another class customers. |
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(h) No single retail customer shall pay more than $2,000 per |
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month into the TexSUN Solar Energy System Rebate Program fund. If |
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the customer is served by multiple transmission and distribution |
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utilities, then the payments to each transmission and distribution |
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utility shall be proportional to the proportion of the customer's |
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purchases from each transmission and distribution utility. |
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(i) Each transmission and distribution utility can allocate |
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no more than 5% of the annual funding for the TexSUN Solar Energy |
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System Rebate Program for administrative purposes of the solar |
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rebate program. Any funding not used for administration shall be |
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used for providing incentives. |
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(j) All renewable energy credits from solar energy systems |
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will be the sole property of the customer, unless the customer |
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engages in a transaction to sell or trade those renewable energy |
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credits with another party. |
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(k) If a customer with a renewable energy system generates |
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renewable energy in excess of the customer's monthly consumption, |
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the retail value of excess kilowatt-hours shall be credited against |
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the customer's bill in subsequent months. To the extent that solar |
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electricity generation exceeds the customer's consumption during a |
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12 month period, commencing with the start of operation of the |
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renewable energy system, the customer shall grant excess production |
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to their retail electric provider. |
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(l) A customer's facility that generates renewable energy |
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from a renewable energy system shall be equipped with meterinq |
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equipment that can measure the flow of electricity in both |
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directions. If the customer's existing electric revenue meter does |
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not meet the requirements of these rules the transmission and |
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distribution utility shall install and maintain a new revenue meter |
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for the customer, at the utility's expense. Any subsequent meter |
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changes requested by the customer shall be paid for by the customer. |
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(m) A customer with an eligible renewable energy system |
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shall be offered electricity tariffs that are identical, with |
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respect to rate structure, retail rate components and monthly |
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charges to the tariff that would be available to the customer if the |
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customer did not use an eligible renewable energy system. |
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(n) All applications for renewable energy system connection |
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shall be processed within 30 days of the transmission and |
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distribution utility company's receipt of the application from the |
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customer. If the utility does not notify the customer whether the |
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application is approved or rejected on or before the 30th day after |
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receiving the application, the interconnection application is |
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considered approved. |
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SECTION 3. This Act takes effect September 1, 2007. |