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A BILL TO BE ENTITLED
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AN ACT
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relating to the legislature's goal for electric generation capacity |
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using combined heat and power technology. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9042 to read as follows: |
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Sec. 39.9042. GOAL FOR COMBINED HEAT AND POWER |
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INSTALLATIONS. (a) In this section, "combined heat and power |
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technology" means any technology that allows consumption of |
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electricity and thermal energy at an industrial or commercial |
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facility or building, provided that the efficiency of that |
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technology allows total energy captured and used to exceed 60 |
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percent of the primary energy input. Combined heat and power |
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technologies include technologies that use natural gas or a number |
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of renewable energy sources such as solar, geothermal, or biomass |
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or biomass-based waste products, including landfill gas. |
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(b) It is the intent of the legislature that by January 1, |
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2016, a total of 21,000 megawatts of generating capacity from |
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combined heat and power technologies will have been installed in |
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this state. The cumulative installed combined heat and power |
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capacity in this state shall total 17,000 megawatts by January 1, |
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2010, 18,000 megawatts by January 1, 2012, 19,000 megawatts by |
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January 1, 2014, and 21,000 megawatts by January 1, 2016. |
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(c) The commission shall establish a combined heat and power |
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credits trading program. Any retail electric provider, municipally |
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owned utility, or electric cooperative that does not satisfy the |
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requirements of Subsection (b) by directly owning or purchasing |
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capacity using combined heat and power technologies shall purchase |
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sufficient combined heat and power credits to satisfy the |
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requirements by holding combined heat and power credits in lieu of |
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capacity from combined heat and power technologies. |
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(d) Not later than January 1, 2008, the commission shall |
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adopt rules necessary to administer and enforce this section. At a |
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minimum, the rules shall: |
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(1) establish the minimum annual combined heat and |
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power requirement for each retail electric provider, municipally |
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owned utility, and electric cooperative operating in this state in |
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a manner reasonably calculated by the commission to produce, on a |
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statewide basis, compliance with the requirement prescribed by |
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Subsection (a); and |
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(2) specify reasonable performance standards that all |
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combined heat and power capacity additions must meet to count |
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against the requirement prescribed by Subsection (b) and that: |
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(A) are designed and operated so as to maximize |
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the energy output from the capacity additions in accordance with |
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then-current industry standards; and |
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(B) encourage the development, construction, and |
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operation of new combined heat and power energy projects at those |
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sites in this state that have the greatest economic potential for |
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capture and development of this state's environmentally beneficial |
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combined heat and power resources. |
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SECTION 2. This Act takes effect September 1, 2007. |