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79R4508 JJT-F

By:  Carona                                                       S.B. No. 710



A BILL TO BE ENTITLED

AN ACT

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.