Amend CSSB 408 by adding the following appropriately numbered 
sections to the bill and by renumbering existing sections of the 
bill accordingly.
	(1)  SECTION __. Section 36.053, Utilities Code, is amended 
by adding Subsection (d) to read as follows:
	(d)  If the commission issues a certificate of convenience 
and necessity or, acting under Section 39.203(e), orders an 
electric utility or a transmission and distribution utility to 
construct or enlarge transmission or transmission-related 
facilities to facilitate meeting the goal for generating capacity 
from renewable energy technologies under Section 39.904(a), the 
commission shall find that the facilities are used and useful to the 
utility in providing service for purposes of this section and are 
prudent and includable in the rate base, regardless of the extent of 
the utility's actual use of the facilities.
	SECTION __.  Subsection (e), Section 39.203, Utilities Code, 
is amended to read as follows:
	(e)  The commission may require an electric utility or a 
transmission and distribution utility to construct or enlarge 
facilities to ensure safe and reliable service for the state's 
electric markets and to reduce transmission constraints within 
ERCOT in a cost-effective manner where the constraints are such 
that they are not being resolved through Chapter 37 or the ERCOT 
transmission planning process. The commission shall require an 
electric utility or a transmission and distribution utility to 
construct or enlarge transmission or transmission-related 
facilities for the purpose of meeting the goal for generating 
capacity from renewable energy technologies under Section 
39.904(a). In any proceeding brought under Chapter 37, an electric 
utility or transmission and distribution utility ordered to 
construct or enlarge facilities under this subchapter need not 
prove that the construction ordered is necessary for the service, 
accommodation, convenience, or safety of the public and need not 
address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E). 
Notwithstanding any other law, including Section 37.057, in any 
proceeding brought under Chapter 37 by an electric utility or a 
transmission and distribution utility related to an application for 
a certificate of public convenience and necessity to construct or 
enlarge transmission or transmission-related facilities under this 
subsection, the commission shall issue a final order before the 
181st day after the date the application is filed with the 
commission. If the commission does not issue a final order before 
that date, the application is approved.
	SECTION __. Section 39.904, Utilities Code, is amended by 
amending Subsection (a) and adding Subsections (g) through (m) to 
read as follows:
	(a)  It is the intent of the legislature that by January 1, 
2017 [2009], an additional 7,000 [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 7,880 [1,280] megawatts by 
January 1, 2017, and the commission shall establish a target of 
10,000 megawatts of installed renewable capacity by January 1, 
2025. The cumulative installed renewable capacity in this state 
shall total 2,280 megawatts by January 1, 2007, 3,272 megawatts by 
January 1, 2009, 4,264 megawatts by January 1, 2011, 5,256 
megawatts by January 1, 2013, and 5,880 megawatts by January 1, 
2015, and 7880 megawatts by January 1, 2017. Of the renewable energy 
technology generating capacity installed to meet the goal of this 
subsection after September 1, 2005, the commission shall establish 
a target of having at least 500 megawatts of capacity from a 
renewable energy technology other than a source using wind energy 
[2003, 1,730 megawatts by January 1, 2005, 2,280 megawatts by 
January 1, 2007, and 2,880 megawatts by January 1, 2009].
	(g)  The commission, after consultation with each appropriate 
independent organization, electric reliability council, or 
regional transmission organization:
		(1)  shall designate competitive renewable energy zones 
throughout this state in areas in which renewable energy resources 
and suitable land areas are sufficient to develop generating 
capacity from renewable energy technologies;
		(2)  shall develop a plan to construct transmission 
capacity necessary to deliver to electric customers, in a manner 
that is most beneficial and cost-effective to the customers, the 
electric output from renewable energy technologies in the 
competitive renewable energy zones; and
		(3)  shall consider the amount of existing generation 
resources and level of financial commitment toward future 
generation resources by generators for each competitive renewable 
energy zone in determining whether to designate an area as a 
competitive renewable energy zone and whether to grant a 
certificate of convenience and necessity.
	(h)  In considering an application for a certificate of 
public convenience and necessity for a transmission project 
intended to serve a competitive renewable energy zone, the 
commission is not required to consider the factors provided by 
Sections 37.056(c)(1) and (2).
	(i)  Transmission service to a competitive renewable energy 
zone must be provided in a manner consistent with Subchapter A, 
Chapter 35.
	(j)  The commission, after consultation with each appropriate 
independent organization, electric reliability council, or 
regional transmission organization, shall file a report with the 
legislature not later than December 31 of each even-numbered year. 
The report must include:
		(1) an evaluation of the commission's implementation of 
competitive renewable energy zones;
		(2)  the estimated cost of transmission service 
improvements needed for each competitive renewable energy zone; and
		(3)  an evaluation of the effects that additional 
renewable generation has on system reliability and on the cost of 
alternatives to mitigate the effects.
	(k)  The commission and the independent organization 
certified for ERCOT shall study the need for increased transmission 
and generation capacity throughout this state and report to the 
legislature the results of the study and any recommendations for 
legislation. The report must be filed with the legislature not 
later than December 31 of each even-numbered year and may be filed 
as a part of the report required by Subsection (j).
	(l)  The commission may adopt rules requiring renewable 
energy facilities to have reactive power control capabilities or 
any other feasible technology designed to reduce the facilities' 
effects on system reliability.
	(m)  Notwithstanding any other provision of law, the 
commission shall have the authority to cap the price of renewable 
energy credits and may suspend the goal contained in Subsection (a) 
if such suspension is necessary to protect the reliability and 
operation of the grid.