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A BILL TO BE ENTITLED
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AN ACT
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relating to statewide requirements for renewable electric |
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generating capacity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 39.904(a), (c), and (o), Utilities |
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Code, are amended to read as follows: |
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(a) Of the total amount of generating capacity installed in |
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this state: |
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(1) 50 percent must come from renewable energy |
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technologies by January 1, 2030; and |
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(2) 100 percent must come from renewable energy |
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technologies by January 1, 2050. [It is the intent of the |
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legislature that by January 1, 2015, an additional 5,000 megawatts |
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of generating capacity from renewable energy technologies will have |
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been installed in this state. The cumulative installed renewable |
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capacity in this state shall total 5,880 megawatts by January 1, |
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2015, and the commission shall establish a target of 10,000 |
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megawatts of installed renewable capacity by January 1, 2025. The |
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cumulative installed renewable capacity in this state shall total |
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2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1, |
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2009, 4,264 megawatts by January 1, 2011, 5,256 megawatts by |
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January 1, 2013, and 5,880 megawatts by January 1, 2015. Of the |
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renewable energy technology generating capacity installed to meet |
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the goal of this subsection after September 1, 2005, the commission |
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shall establish a target of having at least 500 megawatts of |
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capacity from a renewable energy technology other than a source |
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using wind energy.] |
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(c) The [Not later than January 1, 2000, the] commission |
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shall adopt rules necessary to administer and enforce this section. |
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At a minimum, the rules shall: |
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(1) establish the minimum annual renewable energy |
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requirement for each retail electric provider, municipally owned |
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utility, and electric cooperative operating in this state in a |
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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 (a); and |
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(2) specify reasonable performance standards that all |
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renewable energy technologies [capacity additions] must meet to |
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count against the requirement prescribed by Subsection (a) and |
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that: |
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(A) are designed and operated so as to maximize |
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the energy output from the technologies [capacity additions] in |
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accordance with then-current industry standards; and |
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(B) encourage the development, construction, and |
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operation of new renewable energy projects at those sites in this |
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state that have the greatest economic potential for capture and |
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development of this state's environmentally beneficial renewable |
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resources. |
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(o) The commission may establish an alternative compliance |
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payment. An entity that has a renewable energy purchase requirement |
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under this section may elect to pay the alternative compliance |
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payment instead of applying renewable energy credits toward the |
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satisfaction of the entity's obligation under this section. [The |
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commission may establish a separate alternative compliance payment |
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for the goal of 500 megawatts of capacity from renewable energy |
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technologies other than wind energy. The alternative compliance |
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payment for a renewable energy purchase requirement that could be |
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satisfied with a renewable energy credit from wind energy may not be |
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less than $2.50 per credit or greater than $20 per credit. Prior to |
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September 1, 2009, an alternative compliance payment under this |
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subsection may not be set above $5 per credit.] In implementing this |
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subsection, the commission shall consider: |
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(1) the effect of renewable energy credit prices on |
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retail competition; |
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(2) the effect of renewable energy credit prices on |
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electric rates; |
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(3) the effect of the alternative compliance payment |
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level on the renewable energy credit market; and |
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(4) any other factors necessary to ensure the |
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continued development of the renewable energy industry in this |
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state while protecting ratepayers from unnecessary rate increases. |
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SECTION 2. Not later than January 1, 2024, the Public |
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Utility Commission of Texas shall adopt rules required to |
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administer and enforce Section 39.904, Utilities Code, as amended |
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by this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |