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A BILL TO BE ENTITLED
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AN ACT
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relating to a statewide goal for electric energy generation during |
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peak load periods from renewable energy technologies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.002, Utilities Code, is amended to |
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read as follows: |
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Sec. 39.002. APPLICABILITY. This chapter, other than |
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Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051, |
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39.9052, [and] 39.914(e), and 39.917, does not apply to a |
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municipally owned utility or an electric cooperative. Sections |
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39.157(e), 39.203, [and] 39.904, and 39.917, however, apply only to |
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a municipally owned utility or an electric cooperative that is |
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offering customer choice. If there is a conflict between the |
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specific provisions of this chapter and any other provisions of |
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this title, except for Chapters 40 and 41, the provisions of this |
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chapter control. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.917 to read as follows: |
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Sec. 39.917. GOAL FOR PEAK LOAD PERIOD RENEWABLE ENERGY |
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GENERATION. (a) In this section, "renewable energy technology" |
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has the meaning assigned by Section 39.904. |
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(b) It is the intent of the legislature that by January 1, |
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2020, generating capacity from renewable energy technologies will |
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have been installed in this state that is capable of producing not |
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less than an additional 3,000 megawatts during peak load periods, |
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as compared to the peak load period generating capacity from |
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renewable energy technologies installed in this state as of |
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September 1, 2009, for use by retail electric providers, |
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municipally owned utilities, and electric cooperatives and their |
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customers. |
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(c) Each retail electric provider, municipally owned |
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utility, or electric cooperative in this state shall directly own |
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or purchase the appropriate generating capacity or peak load |
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renewable energy credits not later than January 1, 2020, so that the |
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installed peak load generating capacity from renewable energy |
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technologies in this state increases to meet the goal provided by |
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Subsection (b). |
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(d) The commission by rule shall establish a peak load |
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renewable energy credits trading program. Each retail electric |
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provider, municipally owned utility, or electric cooperative that |
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does not satisfy the requirements of Subsection (c) by directly |
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owning or purchasing generating capacity for peak load periods from |
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sources using renewable energy technologies shall purchase |
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sufficient peak load renewable energy credits to satisfy the |
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requirements by holding peak load renewable energy credits in lieu |
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of peak load generating capacity from renewable energy |
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technologies. Commission rules must provide for peak load capacity |
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from electric energy that is generated by renewable energy |
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technologies and stored for later release to the electric |
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transmission and distribution system to be eligible for a credit |
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that is double the credit for which capacity from renewable energy |
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technologies alone is eligible. |
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(e) The commission shall adopt rules necessary to |
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administer and enforce this section. At a minimum, the rules shall: |
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(1) establish the minimum annual peak load renewable |
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energy requirement for each retail electric provider, municipally |
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owned utility, and electric cooperative operating in this state in |
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a manner reasonably calculated by the commission to produce, on a |
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statewide basis, compliance with the requirement prescribed by |
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Subsection (c); and |
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(2) specify reasonable performance standards that all |
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peak load renewable capacity additions must meet to count against |
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the requirement prescribed by Subsection (c) and that: |
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(A) are designed and operated so as to maximize |
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the energy output from the capacity additions in accordance with |
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then current industry standards, as necessary to meet demand at |
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peak load periods; and |
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(B) encourage the development, construction, and |
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operation of new peak load renewable energy projects at those sites |
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in this state that have the greatest economic potential for capture |
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and development of this state's environmentally beneficial |
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renewable resources. |
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(f) A municipally owned utility operating a gas |
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distribution system may credit toward satisfaction of the |
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requirements of this section any production or acquisition of |
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landfill gas supplied to the gas distribution system, based on |
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conversion to kilowatt hours of the thermal energy content in |
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British thermal units of the renewable source and using for the |
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conversion factor the systemwide average heat rate of the gas-fired |
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units of the combined utility's electric system as measured in |
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British thermal units per kilowatt hour. |
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(g) The commission, after consultation with each |
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appropriate independent organization, electric reliability |
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council, or regional transmission organization, shall develop a |
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plan to construct transmission capacity necessary to deliver to |
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electric customers during peak load periods, in a manner that is |
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most beneficial and cost-effective to the customers, the electric |
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output from renewable energy technologies. |
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(h) The commission, after consultation with each |
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appropriate independent organization, electric reliability |
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council, or regional transmission organization, shall file a report |
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with the legislature not later than December 31 of each |
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even-numbered year. The report must include: |
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(1) an evaluation of the commission's implementation |
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of this section; |
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(2) the estimated cost of transmission service |
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improvements and other system improvements necessary to implement |
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this section; and |
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(3) an evaluation of the effects that additional peak |
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load renewable generation has on system reliability and on the cost |
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of alternatives to mitigate the effects. |
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(i) The commission may adopt rules requiring renewable peak |
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load power facilities to have reactive power control capabilities |
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or any other feasible technology designed to reduce the facilities' |
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effects on system reliability. |
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(j) As provided by this subsection, the commission shall |
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reduce the requirement under Subsection (c) for a retail electric |
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provider, municipally owned utility, or electric cooperative that |
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is subject to a requirement under this section and that serves a |
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customer receiving electric service at transmission-level voltage |
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if, before any year for which the commission calculates |
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requirements for peak load generating capacity from renewable |
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energy technologies under Subsection (c), the customer notifies the |
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commission in writing that the customer chooses not to support that |
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goal as established under this section for that year. The |
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commission shall exclude from the calculation of a retail electric |
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provider's, municipally owned utility's, or electric cooperative's |
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requirement under Subsection (c) energy sold by the retail electric |
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provider, municipally owned utility, or electric cooperative at |
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transmission-level voltage to customers who have submitted the |
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notice to the commission under this subsection for the applicable |
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year. The commission shall determine the reporting requirements |
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and schedule necessary to implement this subsection. This |
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subsection does not alter the goals established in Subsection (b) |
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or reduce the minimum statewide requirements of Subsection (c). |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |