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Amend CSSB 541 (Senate committee printing) as follows:                       
	(1)  In the recitation (page 1, line 19), strike "and (c-2), 
and (p)" and substitute "(c-2), (c-3), (n-1), and (p)".
	(2)  In SECTION 2 of the bill by striking added Subsection 
(a-1), Section 39.904, Utilities Code (page 1, lines 36-48), and 
substituting:
	(a-1)  It is the goal of the legislature that by January 1, 
2020, an additional 1,500 megawatts of tier 2 renewable energy will 
have been installed in this state.  Of the renewable energy 
generating capacity installed to meet the goal of this subsection, 
up to 500 megawatts of renewable energy storage may qualify to meet 
the tier 2 goal.  The cumulative installed tier 2 renewable energy 
resource capacity in this state shall total 50 megawatts by January 
1, 2011; 100 megawatts by January 1, 2012; 200 megawatts by January 
1, 2013; 350 megawatts by January 1, 2014; 500 megawatts by January 
1, 2015; 750 megawatts by January 1, 2016; 900 megawatts by January 
1, 2017; 1,000 megawatts by January 1, 2018; 1,250 megawatts by 
January 1, 2019; and 1,500 megawatts by January 1, 2020.  On January 
1, 2016, if the commission determines the state has not made 
significant progress toward the goals of this subsection, then the 
commission may take action to suspend future obligations under this 
subsection.
	(3)  Add the following appropriately numbered SECTIONS to 
the bill and renumbering subsequent SECTIONS of the bill 
accordingly:
	SECTION ____.  Section 39.002, Utilities Code, is amended to 
read as follows:
	Sec. 39.002.  APPLICABILITY.  Except as provided by this 
section, this [This] chapter, other than Sections 39.155, 
39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, and 
39.914(e), does not apply to a municipally owned utility or an 
electric cooperative. Sections 39.157(e), 39.203, and 39.904[, 
however,] apply only to a municipally owned utility or an electric 
cooperative that is offering customer choice.  Section 39.9041 
applies to a municipally owned utility.  If there is a conflict 
between the specific provisions of this chapter and any other 
provisions of this title, except for Chapters 40 and 41, the 
provisions of this chapter control.
	SECTION ____.  Subchapter Z, Chapter 39, Utilities Code, is 
amended by adding Section 39.9041 to read as follows:
	Sec. 39.9041.  RENEWABLE ENERGY FOR MUNICIPALLY OWNED 
UTILITIES.  (a) It is the goal of the legislature that municipally 
owned utilities:
		(1)  increase the installed capacity in this state from 
tier 2 renewable energy or from renewable energy storage in a 
cost-effective, market neutral, and nondiscriminatory manner; and
		(2)  install capacity from tier 2 renewable energy or 
from renewable energy storage in proportion to and at a level 
consistent with the requirements for electric utilities under 
Section 39.904(a-1).
	(b)  This section applies only to a municipally owned utility 
with retail sales of more than 500,000 megawatt hours for the year 
beginning January 1, 2007.
	(c)  Beginning not later than September 1, 2012, a 
municipally owned utility annually shall report to the state energy 
conservation office, in a form determined by the office, 
information regarding the efforts of the utility under this 
section.
	(d)  This section does not prevent the governing body of a 
municipally owned utility from adopting rules, programs, and 
incentives that encourage or provide for the installation of 
capacity from tier 2 renewable energy or renewable energy storage 
in addition to the goals in Section 39.904(a-1).
	(e)  The commission shall count capacity from tier 2 
renewable energy or renewable energy storage installed on or after 
May 1, 2007, toward a municipally owned utility's compliance with 
this section.
	(f)  A municipally owned utility may satisfy the 
requirements of this section:
		(1)  by owning or purchasing capacity from tier 2 
renewable energy or renewable energy storage; or
		(2)  by purchasing renewable energy credits in lieu of 
capacity from tier 2 renewable energy technologies.
	(4)  In SECTION 2 of the bill After added Subsection (c-2), 
Section 39.904, Utilities Code (page 2, between lines 37 and 38), 
insert:
	(c-3)  Not later than January 1, 2010, the commission shall 
adopt rules necessary to allow generators of tier 2 renewable 
energy installed before September 1, 1999, to qualify annually for 
not more than 40 megawatts of tier 2 renewable energy credits.
	(5)  After amended Subsection (n), Section 39.904, Utilities 
Code (page 2, between lines 61 and 62), insert:
	(n-1)  If the commission determines that complying with the 
goals of Subsection (a-1) and a federal renewable portfolio 
standard that is more stringent than those goals would cause an 
undue burden to ratepayers in this state, the commission may 
suspend any requirement relating to meeting those goals.
	(6)  Amend Subsection (p), Section 39.904, Utilities Code 
(page 3, lines 25 through 30), by striking proposed subsection (p) 
and substituting the following:
	(p)  If the commission suspends the tier 2 renewable energy 
goal under subsection (a-1), all alternative compliance payment 
funds collected shall be refunded by the retail electric providers 
under the guidance of the commission to the residential and 
commercial electric customers covered by this subchapter.  If the 
commission does not suspend the tier 2 renewable energy goal under 
subsection (a-1), the alternative compliance payment funds 
collected by the commission shall be used for the purpose of a solar 
rebate program established by the commission.