Amend CSSB 408 by adding the following appropriately numbered 
section:     
	Section:                                                                
	Section 39.904, Utilities Code, is amended by amending 
Subsections (a), (b), (c), and (d) and adding Subsection (g) to read 
as follows:
	(a)  It is the goal of this state that before January 1, 2020, 
not less than 20 percent of electric energy consumed in this state 
must be generated by renewable energy technologies.  The [intent of 
the] legislature intends that the goal be met incrementally so that 
[by January 1, 2009, an additional 2,000 megawatts of generating 
capacity from renewable energy technologies will have been 
installed in this state. The cumulative installed renewable 
capacity in this state shall total [1,280 megawatts by January 1, 
2003, 1,730 megawatts by January 1, 2005,] 2,280 megawatts by 
January 1, 2007, [and] 2,880 megawatts by January 1, 2009, and 
10,880 megawatts by January 1, 2015. Of the generating capacity 
from renewable energy technologies installed by January 1, 2015, 
the goal is for at least 500 megawatts to be generating capacity 
from distributed renewable energy technologies, and, of that 500 
megawatts of distributed capacity, the goal is for at least 100 
megawatts to be generating capacity installed on the customer's 
side of the meter.
	(b)  The commission shall establish a renewable energy 
credits trading program and a program for recognizing the credits 
representing generating capacity by distributed renewable 
technologies on either side of the meter. Any retail electric 
provider, municipally owned utility, or electric cooperative that 
does not satisfy the requirements of Subsection (a) by directly 
owning or purchasing capacity using renewable energy technologies 
shall purchase sufficient renewable energy credits to satisfy the 
requirements by holding renewable energy credits in lieu of 
capacity from renewable energy technologies.
	(c) The [Not later than January 1, 2000, the] commission 
shall adopt rules necessary to administer and enforce this section.  
At a minimum, the rules shall:
		(1)  establish the minimum annual renewable energy 
technology and distributed renewable energy technology generating 
capacity 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 (a); and
		(2)  specify reasonable performance standards that all 
renewable and distributed generating capacity additions must meet 
to count against the requirement prescribed by Subsection (a) and 
that:
			(A)  are designed and operated so as to maximize 
the energy output from the generating capacity additions in 
accordance with then-current industry standards; and
			(B)  encourage the development, construction, and 
operation of new renewable energy technology 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.
	(d)  In this section: (1)  "Distributed renewable energy 
technology" includes renewable energy technology:
			(A)  connected to the electric energy transmission 
system at the distribution level, such as photovoltaic generation, 
solar thermal electric generation, small wind-powered generation, 
generation using biomass, or geothermal generation technologies; 
and
			(B)  that offsets electric energy generation when 
operated at a facility connected to the distribution system, such 
as solar water heating systems or geothermal water heating systems.
		(2)  "Renewable [,   "renewable] energy technology" 
means any technology that exclusively relies on an energy source 
that is naturally regenerated over a short time and derived 
directly from the sun, indirectly from the sun, or from moving water 
or other natural movements and mechanisms of the environment.  
Renewable energy technologies include those that rely on energy 
derived directly from the sun, on wind, geothermal, hydroelectric, 
wave, or tidal energy, or on biomass or biomass-based waste 
products, including landfill gas.  A renewable energy technology 
does not rely on energy resources derived from fossil fuels, waste 
products from fossil fuels, or waste products from inorganic 
sources.
	(g)  The commission and each appropriate independent 
organization certified under Section 39.151 and transmission group 
shall approve a plan to provide new transmission infrastructure 
necessary to support the goals established by Subsection (a).  The 
commission may adopt rules as necessary to implement the plan.  The 
plan must address:
		(1)  timely recovery of transmission infrastructure 
costs by transmission service providers before renewable energy 
technology generating capacity is installed;
		(2)  transmission and distribution infrastructure 
security;          
		(3)  reliability benefits; and                                         
		(4)  the priority of projects.