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Amend SB 743 on third reading by striking the section of the
bill amending Section 39.904, Utilities Code, as added on second
reading by Amendment No. 1 by Hunter amendment and by Amendment No.
2 Swinford amendment and substituting:
SECTION . Section 39.904, Utilities Code, is amended by
amending Subsections (a) and (d) and adding Subsections (a-1) and
(g)-(o) 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. 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 [2003, 1,730 megawatts
by January 1, 2005, 2,280 megawatts by January 1, 2007, and 2,880
megawatts by January 1, 2009].
(a-1) The commission shall establish a target of 10,000
megawatts of installed renewable capacity by January 1, 2025. The
commission shall also establish a target of 500 megawatts of
generating capacity from non-wind renewable technologies or
emerging ultra-clean distributed generation technologies including
generation from industrial waste heat and fuel cells, installed in
this state after September 1, 2005. Non-renewable utlra-clean
distributed generation projects as defined in this section, shall
not exceed 200 megawatts of the 500 megawatt target and individual
projects shall not exceed 10 megawatts capacity.
(d) In this section, "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, or on gasification of municipal solid
waste. In this subsection, "municipal solid waste" means
nondurable goods, containers, packaging, food wastes, yard
trimmings, and miscellaneous organic wastes from residential,
commercial, and industrial nonprocess sources. A renewable energy
technology, other the gasification of municipal solid waste, does
not rely on energy resources derived from fossil fuels, waste
products from fossil fuels, or waste products from inorganic
sources.
(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 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
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;
(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; and
(5) 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).
(1) 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 shall ensure that all renewable capacity installed in
this state and all renewable energy credits awarded, produced,
procured, or sold in this state are counted toward the goal in
Subsection (a).
(n) 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.
(o) 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
with each appropriate independent organization, electric
reliability council, or regional transmission organization, shall
file a report with the legislature not later than December 31, 2006,
detailing the costs and benefits of additional renewable energy use
in this state. The report must include the projected net effects
throughout this state on fuel costs, transmission costs, wholesale
energy costs, environmental impacts, tax revenues, and economic
development of achieving renewable energy use of up to 10 percent of
electric energy consumption in this state on or before January 1,
2020.