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R E S O L U T I O N
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BE IT RESOLVED by the House of Representatives of the State of |
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Texas, 80th Legislature, Regular Session, 2007, That House Rule 13, |
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Section 9(a), be suspended in part as provided by House Rule 13, |
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Section 9(f), to enable the conference committee appointed to |
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resolve the differences on House Bill 1090, relating to the |
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establishment of a program by the Department of Agriculture to make |
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grants to encourage the construction of facilities that generate |
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electric energy with certain types of agricultural residues, waste, |
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debris, or crops and to the state's goal for generating renewable |
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energy, to consider and take action on the following matter: |
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House Rule 13, Sections 9(a)(3) and (4), are suspended to |
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permit the committee to add the following section to the bill: |
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SECTION 2. Section 39.904, Utilities Code, is amended by |
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amending Subsection (m) and adding Subsections (m-1), (m-2), (m-3), |
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and (o) to read as follows: |
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(m) A renewable energy credit retired for purposes other |
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than to meet the requirements of Subsection (c)(1) may not affect |
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the minimum annual renewable energy requirement under Subsection |
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(c)(1) for a retail electric provider, municipally owned utility, |
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or electric cooperative. |
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(m-1) As provided by this subsection, the commission shall |
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reduce the requirement under Subsection (c)(1) for a retail |
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electric provider, municipally owned utility, or electric |
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cooperative that is subject to a renewable energy requirement under |
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this section and that serves a customer receiving electric service |
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at transmission-level voltage if, before any year for which the |
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commission calculates renewable energy requirements under |
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Subsection (c)(1), the customer notifies the commission in writing |
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that the customer chooses not to support the goal for renewable |
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energy generation under this section for that year. The commission |
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shall exclude from the calculation of a retail electric provider's, |
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municipally owned utility's, or electric cooperative's requirement |
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under Subsection (c)(1) energy sold by the retail electric |
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provider, municipally owned utility, or electric cooperative at |
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transmission-level voltage to customers who have submitted the |
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notice to the commission under this subsection for the applicable |
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year. |
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(m-2) The commission shall determine the reporting |
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requirements and schedule necessary to implement Subsections (m) |
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and (m-1). |
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(m-3) Subsections (m), (m-1), and (m-2) do not alter the |
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renewable energy goals or targets established in Subsection (a) or |
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reduce the minimum statewide renewable energy requirements of |
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Subsection (c)(1) [Notwithstanding any other provision of law, the
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commission shall ensure that all renewable capacity installed in
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this state and all renewable energy credits awarded, produced,
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procured, or sold from renewable capacity in this state are counted
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toward the goal in Subsection (a)]. |
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(o) The commission may establish an alternative compliance |
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payment. An entity that has a renewable energy purchase |
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requirement under this section may elect to pay the alternative |
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compliance payment instead of applying renewable energy credits |
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toward the satisfaction of the entity's obligation under this |
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section. The commission may establish a separate alternative |
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compliance payment for the goal of 500 megawatts of capacity from |
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renewable energy technologies other than wind energy. The |
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alternative compliance payment for a renewable energy purchase |
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requirement that could be satisfied with a renewable energy credit |
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from wind energy may not be less than $2.50 per credit or greater |
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than $20 per credit. Prior to September 1, 2009, an alternative |
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compliance payment under this subsection may not be set above $5 per |
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credit. In implementing this subsection, the commission shall |
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consider: |
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(1) the effect of renewable energy credit prices on |
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retail competition; |
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(2) the effect of renewable energy credit prices on |
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electric rates; |
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(3) the effect of the alternative compliance payment |
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level on the renewable energy credit market; and |
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(4) any other factors necessary to ensure the |
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continued development of the renewable energy industry in this |
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state while protecting ratepayers from unnecessary rate increases. |
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Explanation: The addition of the amendment to Section |
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39.904, Utilities Code, is necessary to clarify that a renewable |
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energy credit retired for purposes other than to meet the state goal |
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for renewable energy does not count toward that goal, to authorize a |
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customer of certain retail electric providers, municipally owned |
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utilities, or electric cooperatives to choose not to support the |
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goal for renewable energy generation, and to authorize an |
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alternative compliance payment by which an entity that has a |
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renewable energy purchase requirement may satisfy that obligation. |
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House Rule 13, Sections 9(a)(3) and (4), are suspended to |
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permit the committee to add the following section to the bill: |
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SECTION 4. (a) The Public Utility Commission of Texas shall |
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conduct a study of the effect that Section 39.904, Utilities Code, |
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has had on: |
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(1) market power in this state; and |
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(2) the rates paid for electricity by residential |
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customers in this state. |
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(b) Not later than January 1, 2009, the Public Utility |
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Commission of Texas shall prepare and present to the governor, |
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lieutenant governor, and speaker of the house of representatives a |
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report describing the results of the study that specifies any |
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changes in market power and any costs to or savings for residential |
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customers because of the implementation of Section 39.904, |
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Utilities Code. |
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Explanation: The addition of the requirement that the Public |
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Utility Commission of Texas conduct a study and prepare and present |
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a report is necessary to provide information to the governor, |
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lieutenant governor, and speaker of the house of representatives |
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regarding the effects of the implementation of Section 39.904, |
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Utilities Code. |
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Swinford |
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______________________________ |
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Speaker of the House |
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I certify that H.R. No. 2851 was adopted by the House on May |
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26, 2007, by a non-record vote. |
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______________________________ |
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Chief Clerk of the House |
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