By Gallego H.B. No. 78
76R478 JJT-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appropriate mix of resources of an electric
1-3 utility.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 34.003(c), Utilities Code, is amended to
1-6 read as follows:
1-7 (c) The mix of resources [An appropriate and reliable mix]
1-8 under Subsection (b)(4) must [may] include a portfolio of
1-9 cost-effective sources of power, including fueled and nonfueled
1-10 resources, such as renewable resources and conservation measures,
1-11 and a mixture of long-term and short-term contracts.
1-12 SECTION 2. Subchapter A, Chapter 34, Utilities Code, is
1-13 amended by adding Section 34.0055 to read as follows:
1-14 Sec. 34.0055. RENEWABLE RESOURCES REQUIREMENT. (a) The
1-15 commission by rule shall establish a renewable generation credit
1-16 program under which each generating electric utility that sells
1-17 power to another entity shall submit to the commission renewable
1-18 generation credits equal to:
1-19 (1) at least one percent of the power the utility sold
1-20 during the previous year for each year of the period beginning
1-21 January 1, 2000, and ending December 31, 2004;
1-22 (2) at least five percent of the power the utility
1-23 sold during the previous year for each year of the period beginning
1-24 January 1, 2005, and ending December 31, 2009; and
2-1 (3) at least 10 percent of the power the utility sold
2-2 during the previous year for each year beginning on or after
2-3 January 1, 2010.
2-4 (b) The commission shall issue to a generating electric
2-5 utility that sells power to another entity one renewable generation
2-6 credit for each megawatt of power the utility generates using
2-7 renewable resources.
2-8 (c) An electric utility that possesses a renewable
2-9 generation credit may convey the credit to another utility subject
2-10 to the credit program.
2-11 (d) The commission by rule shall prescribe procedures
2-12 governing:
2-13 (1) the issuance and submission of renewable
2-14 generation credits; and
2-15 (2) the recording and monitoring of credits conveyed
2-16 under the program.
2-17 (e) The commission may assess a fee against a person
2-18 submitting or conveying renewable generation credits in an amount
2-19 necessary to cover the costs of administering the credit program.
2-20 SECTION 3. Not later than January 15, 2005, the Public
2-21 Utility Commission of Texas shall submit a report to the 79th
2-22 Legislature on:
2-23 (1) the use of renewable resources for electric
2-24 generation in this state;
2-25 (2) the progress of electric utilities in meeting the
2-26 requirements of Section 34.0055, Utilities Code, as added by this
2-27 Act; and
3-1 (3) whether it is possible for electric utilities to
3-2 meet the requirements of Section 34.0055, Utilities Code, as added
3-3 by this Act, by January 1, 2010, without threatening the
3-4 reliability of the state's electric power system.
3-5 SECTION 4. This Act takes effect September 1, 1999.
3-6 SECTION 5. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended.