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79R5289 JJT-F
By: Duncan S.B. No. 836
A BILL TO BE ENTITLED
AN ACT
relating to 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
technology generation 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
amending Subsection (a) and adding Subsections (c-1) and (c-2) to
read as follows:
(a) It is the intent of the legislature that by January 1,
2015 [2009], an additional 10,000 [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 [1,280 megawatts by January 1,
2003, 1,730 megawatts by January 1, 2005,] 2,280 megawatts by
January 1, 2007, [and] 2,880 megawatts by January 1, 2009, 4,880
megawatts by January 1, 2011, 7,880 megawatts by January 1, 2013,
and 10,880 megawatts by January 1, 2015. At least 500 megawatts of
the generating capacity from renewable energy technologies
installed in this state by January 1, 2015, must be from distributed
renewable energy generation technologies.
(c-1) The commission by rule shall establish competitive
renewable energy generation zones in appropriate areas of this
state and annually shall consider designating new competitive
renewable energy generation zones. 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 technology.
The initial competitive renewable energy generation zones
designated by the commission must define a contiguous area of not
more than four counties in which renewable energy technology
generation capacity of at least 80 megawatts of nameplate capacity
is available or under construction on December 31, 2005.
(c-2) For the purposes of Section 39.101(b)(3) and to
promote the development of renewable energy technology, the
commission shall take all 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 technology generation 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 technology generation
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 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
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
technology 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.
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.