80R8402 JJT-F

By: Anchia H.B. No. 3903

A BILL TO BE ENTITLED

AN ACT

relating to the state's goal of installing additional electric generating capacity by renewable energy technologies and distributed renewable energy generation technologies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 39.904(a) and (b), Utilities Code, are amended to read as follows:

(a) It is the intent of the legislature that by January 1, 2025 [2015], an additional 10,000 [5,000] 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 10,880 [5,880] megawatts by January 1, 2025 [2015, and the commission shall establish a target of 10,000 megawatts of installed renewable capacity by January 1, 2025]. The cumulative installed renewable capacity in this state shall total 4,825 [2,280 megawatts by January 1, 2007, 3,272] megawatts by January 1, 2009, 5,936 [4,264] megawatts by January 1, 2011, 7,047 [5,256] megawatts by January 1, 2013, 8,158 [and 5,880] megawatts by January 1, 2015, 9,269 megawatts by January 1, 2017, 9,769 megawatts by January 1, 2019, 10,069 megawatts by January 1, 2021, 10,480 megawatts by January 1, 2023, and 10,880 megawatts by January 1, 2025. The [Of the] renewable energy technology generating capacity installed to meet the goal of this subsection must include a total of at least 1,000 megawatts generating capacity from a combination of non-wind-powered renewable energy technologies and small-scale wind-powered generating installations each with a capacity of less than 150 kilowatts. For that 1,000 megawatt goal, the commission shall establish biennial benchmark dates for meeting specified capacities. Of the 1,000 megawatts of capacity to meet that 1,000 megawatt goal, 700 megawatts must be generation capacity installed on the utility's side of the electric meter and 300 megawatts must be generation capacity installed on the customer's side of the electric meter. Of the 300 megawatts capacity installed on the customer's side of the electric meter, at least 100 megawatts must be from solar-powered electric generating technology [after September 1, 2005, the commission shall establish a target of having at least 500 megawatts of capacity from a renewable energy technology other than a source using wind energy].

(b) The commission shall establish a renewable energy credits trading program. Any retail electric provider, municipally owned utility, or electric cooperative that does not satisfy the requirements of Subsection (a) by directly owning or purchasing capacity using renewable energy technologies shall purchase sufficient renewable energy credits to satisfy the requirements by holding renewable energy credits in lieu of capacity from renewable energy technologies. As part of the program, the commission by rule shall allow for the renewable energy portion of the electric generating capacity of a generating technology that uses a hybrid of fossil fuels and renewable technology to be counted toward meeting the installed renewable energy technology goals established under Subsection (a). To be eligible to count for meeting the goals established under Subsection (a), the fossil-fueled portion of the hybrid technology must contribute not more than 25 percent of the capacity.

SECTION 2. (a) The lieutenant governor and the speaker of the house of representatives shall appoint a study group that has expertise necessary to develop plans by which this state may:

(1) meet a goal of having 25 percent of all energy consumption in this state by January 1, 2025, be from renewable energy technology sources, as defined by Section 39.904, Utilities Code;

(2) provide incentives to build facilities for renewable energy storage or for conversion to hydrogen energy sources; and

(3) provide support for recovery of costs of building electric transmission infrastructure to facilitate exportation of electric power generated in this state by renewable energy technologies.

(b) The study group shall issue a report on the plans to the legislature not later than January 1, 2008.

SECTION 3. This Act takes effect September 1, 2007.