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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing a goal of reducing carbon dioxide |
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emissions from electric generation in this state to 1990 levels not |
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later than 2020. |
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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 39.911 to read as follows: |
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Sec. 39.911. STATEWIDE CARBON DIOXIDE EMISSIONS GOAL FOR |
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ELECTRIC GENERATION; ALLOWANCES TRADING. (a) The commission and |
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the Texas Commission on Environmental Quality jointly by rule |
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shall establish a program to encourage electric generation in this |
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state by means that produce lower carbon dioxide emissions levels. |
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(b) The commission and the Texas Commission on |
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Environmental Quality by rule separately or jointly may establish |
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incentives for persons: |
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(1) to generate electricity in this state to be made |
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available for consumers or for consumption by a type of generator |
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that will produce electric power by means that produce relatively |
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low carbon dioxide emissions, including by: |
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(A) solar power; |
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(B) wind power; |
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(C) biomass technologies; |
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(D) geothermal technologies; or |
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(E) combined heat and power; and |
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(2) to reduce the consumption of electric power |
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generated by means that produce relatively high carbon dioxide |
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emissions, including by energy efficiency projects or programs. |
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(c) The commission and the Texas Commission on |
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Environmental Quality jointly by rule shall establish an emissions |
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allowance program for electric generation facilities' emissions of |
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carbon dioxide in this state. The program must establish an annual |
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limit on the amount of statewide emissions of carbon dioxide from |
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electric generation, and the limit must be reduced incrementally so |
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that by January 1, 2020, the limit must be equal to or below the |
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amount of carbon dioxide emissions in this state from electric |
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generation in 1990, as estimated by the Texas Commission on |
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Environmental Quality. |
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(d) The program adopted under Subsection (c) must provide |
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for the issuance to electric generation facilities in this state of |
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an appropriate number of emissions allowances that authorize the |
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electric generation facilities each to emit a limited amount of |
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carbon dioxide in a year or in another compliance period specified |
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by rule. Emissions allowances under the program must be made |
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available and issued to various persons, companies, organizations, |
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or other entities through a sale by auction or by direct allocation. |
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The allowances made available in any specified compliance period |
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may not in the aggregate authorize emissions of carbon dioxide in an |
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amount greater than the adopted statewide limit for that compliance |
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period. The program must provide for persons to be eligible for |
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carbon dioxide emissions allowances for reducing demand for |
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electric generation by energy efficiency projects or programs. |
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(e) An electric generation facility subject to the |
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emissions allowance program shall: |
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(1) completely and accurately measure and report all |
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carbon dioxide emissions subject to the allowance; and |
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(2) acquire and submit the number of allowances |
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necessary to authorize the facility to emit the appropriate amount |
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of carbon dioxide at the end of the compliance period. |
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(f) The program must be designed to allow a holder of a |
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carbon dioxide emissions allowance to trade the allowance with |
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other persons, and the program may allow trading of carbon dioxide |
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emissions allowances available through similar allowance trading |
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programs in other states or countries. |
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SECTION 2. The Public Utility Commission of Texas and the |
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Texas Commission on Environmental Quality shall establish the |
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emissions allowance program required by Section 39.911, Utilities |
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Code, as added by this Act so that the initial carbon dioxide |
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emissions limit is enforced not later than January 1, 2009. |
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SECTION 3. This Act takes effect September 1, 2007. |