79R4508 JJT-F

By:  Farabee                                                      H.B. No. 1565

relating to establishing a state goal for electric generation capacity using certain emerging generation technologies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9042 to read as follows: Sec. 39.9042. GOAL FOR RENEWABLE ENERGY. (a) In this section, "emerging generation technology" has the meaning Section 39.904(d) assigns to "renewable energy technology" except that the term: (1) includes clean distributed generation from sources such as fuel cells or waste heat; and (2) does not include renewable energy technology that relies on energy derived from: (A) wind; or (B) landfill gas. (b) It is the intent of the legislature that by January 1, 2015, an additional 500 megawatts of generating capacity from emerging generation technology will have been installed in this state. (c) The commission by rule shall establish an emerging generation technology credits trading program. Any retail electric provider, municipally owned utility, or electric cooperative that does not satisfy the requirements of Subsection (b) by directly owning or purchasing capacity using emerging generation technology shall purchase sufficient emerging generation technology credits to satisfy the requirements by holding emerging generation technology credits in lieu of capacity from emerging generation technology. (d) Not later than January 1, 2007, the commission shall adopt rules necessary to administer and enforce this section. At a minimum, the rules shall: (1) establish the minimum annual emerging generation technology generation 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 (b); and (2) specify reasonable performance standards that all emerging generation technology capacity additions must meet to count against the requirement prescribed by Subsection (b) and that: (A) are designed and operated so as to maximize the energy output from the capacity additions in accordance with then current industry standards; and (B) encourage the development, construction, and operation of new emerging generation technology generation projects at those sites in this state that have the greatest economic potential for capture and development of this state's environmentally beneficial energy resources. SECTION 2. 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, 2005.