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By: Hunter H.B. No. 3265
A BILL TO BE ENTITLED
AN ACT
relating to compensation for certain federal production tax credits
lost by certain existing renewable generation projects due to lack
of electric transmission capabilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.9045 to read as follows:
Sec. 39.9045. COMPENSATION FOR PRODUCTION TAX CREDITS LOST
DUE TO LACK OF ELECTRIC TRANSMISSION CAPABILITIES. (a) Each
independent organization certified under Section 39.151 shall
adopt procedures to compensate a renewable energy project for
federal production tax credits that the renewable energy project
did not receive due to the lack of transmission capabilities that
prevented the energy generated by the project from reaching
consumers in this state.
(b) The procedures adopted under Subsection (a) must
provide for:
(1) not more than $10 million in compensation to be
paid annually to renewable energy projects in each power region;
and
(2) compensation to be paid only to renewable energy
projects that were constructed to meet the goal for renewable
energy prescribed by Section 39.904 and that began operating on or
before January 1, 2002.
(c) The procedures adopted under Subsection (a) expire when
the independent organization implements locational marginal
pricing.
SECTION 2. (a) 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, 2003.
(b) An independent organization certified under Section
39.151, Utilities Code, shall adopt procedures as required by
Section 39.9045, Utilities Code, as added by this Act, not later
than October 31, 2003.