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