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Amend CSSB 743 by adding the following appropriately numbered
SECTIONS to read as follows:
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 __. Section 39.203(e), 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)-(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 3,113 megawatts by January 1, 2007, 3,946 megawatts by
January 1, 2009, 4,779 megawatts by January 1, 2011, 5,612
megawatts by January 1, 2013, 6,445 megawatts by January 1, 2015,
and 7,880 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 that 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;
(3) shall consider the level of financial commitment
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 the
comptroller, the Texas Commission on Environmental Quality, the
State Energy Conservation Office, the Office of Rural Community
Affairs, and 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;
(4) an assessment of the net impact of renewable
energy generation on statewide fuel use, fuel cost savings, and
wholesale energy costs;
(5) an evaluation of the impact that historical and
additional renewable generation has on air quality, water
resources, environmental impact mitigation costs, and how
renewable energy use by electric customers may qualify for any
credits stemming from emission reductions; and
(6) an assessment of the economic development and tax
revenue impacts of historical and additional renewable energy
generation.
(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
power 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 may cap the price of renewable energy credits and may
suspend the goal contained in Subsection (a) if that suspension is
necessary to protect the reliability and operation of the grid.