H.B. 2576 78(R)    BILL ANALYSIS


H.B. 2576
By: Baxter
Regulated Industries
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Vast amounts of municipal solid waste are daily buried in landfills in
Texas that could be converted to electric energy with proper incentives.
Converting municipal solid waste to energy could help meet two critical
needs of Texas; vastly reduce the volume of waste going into landfills and
help conserve a finite supply of fossil fuels now used to produce electric
energy.  Chapter 363, Health and Safety Code, cited as the Comprehensive
Municipal Solid Waste Management, Resource Recovery, and Conservation Act,
states that it is the public policy of Texas "to protect the environment
by encouraging the reduction in solid waste generation and the proper
management of solid waste, including disposal and processing to extract
usable materials or energy." 

HB 2576 provides for a pilot program to encourage the development of
waste-to-energy technology. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

HB 2576 amends Chapter 363, Health and Safety Code by adding Subchapter H
to provide that a retail electric provider, municipally owned utility, or
electric cooperative may credit toward satisfaction of the requirements
for renewable energy provided for in Section 39.904 of the Utilities Code
any production or acquisition of electric energy produced by a
waste-to-energy technology. This credit cannot exceed 50 megawatts in
total for all providers.  "Waste-to-energy technology" is defined as any
technology that relies on energy derived from municipal solid waste. 

EFFECTIVE DATE

September 1, 2003.