79R6806 JJT-D

By:  Baxter                                                       H.B. No. 2265



A BILL TO BE ENTITLED

AN ACT

relating to meeting the state's goal for electric generation 
capacity by renewable energy technologies and the rate treatment of 
utility expenditures for interconnecting generating capacity by 
certain renewable technologies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 36.053, Utilities Code, is amended by 
adding Subsection (d) to read as follows:
	(d)  If, in a proceeding in which transmission or 
transmission related facilities are certificated under Chapter 37, 
the commission found that the facilities are needed to accommodate 
future development or future interconnection of renewable energy 
generation technology capacity, the commission shall find that the 
facilities are used by and useful to the utility in providing 
service, regardless of the extent of the actual use of the 
facilities.
	SECTION 2.  Section 39.904, Utilities Code, is amended by 
adding Subsections (c-1) and (c-2) to read as follows:
	(c-1)  The commission by rule shall establish competitive 
renewable energy generation zones in appropriate areas of this 
state.  The commission may designate as a competitive renewable 
energy generation zone any defined geographic area in which 
renewable energy resources and suitable land areas are sufficient 
to develop at least 1,000 megawatts of nameplate generating 
capacity from renewable energy generation technology.
	(c-2)  For the purposes of Section 39.101(b)(3) and to 
promote the development of renewable energy generation technology, 
the commission shall take necessary actions, including:
		(1)  ordering the construction of transmission 
facilities to alleviate local or regional transmission capacity 
constraints or congestion measured by the nameplate capacity of 
renewable energy generation technology that is operational or under 
construction on December 31, 2005;
		(2)  directing the appropriate independent 
organization or electric reliability council and transmission and 
distribution service providers to study, plan for, and route 
additional transmission facilities to anticipate and to facilitate 
the further development of renewable energy generation technology 
capacity in those partially developed competitive renewable energy 
generation zones in which existing transmission capacity is already 
constrained, congested, or at capacity;
		(3)  designating competitive renewable energy 
generation zones and, in conjunction with each appropriate 
independent organization, electric reliability council, or 
regional transmission organization, develop a plan to construct 
transmission capacity to interconnect and deliver full output to 
customers of energy generated by existing and anticipated renewable 
energy generation technology in the zones in a manner that is most 
beneficial and cost-effective for electric consumers; and
		(4)  establishing a process by which, if the commission 
finds that the evidence shows the transmission facilities will be 
needed by the time anticipated renewable energy generation 
technology facilities can become operational, the commission may 
grant a certificate of convenience and necessity for transmission 
facilities to provide retail customer access to energy from 
competitive renewable energy generation zones, without requiring 
that an interconnection agreement be executed by a renewable energy 
generator.
	SECTION 3.  The Public Utility Commission of Texas shall 
designate the initial competitive renewable energy generation 
zones under Section 39.904, Utilities Code, as amended by this Act, 
not later than January 1, 2006.  Notwithstanding the general 
requirements of Section 39.904(c-1), Utilities Code, as added by 
this Act, the initial competitive renewable energy generation zones 
must define a contiguous area encompassing four counties in which 
renewable energy generation technology capacity of at least 200 
megawatts of nameplate capacity is available on December 31, 2005.
	SECTION 4.  The Public Utility Commission of Texas shall 
adopt rules to implement this Act as soon as practicable.
	SECTION 5.  This Act takes effect September 1, 2005.