81R3863 JJT-D
	By: Ellis	S.B. No. 435

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