81R9099 TJS-F

By: Gallego H.B. No. 3478

A BILL TO BE ENTITLED

AN ACT

relating to this state's goal for renewable energy.

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

SECTION 1. Section 39.904, Utilities Code, is amended by amending Subsections (a), (d), and (o) and adding Subsections (d-1) and (d-2) to read as follows:

(a) It is the intent of the legislature that by January 1, 2015, an additional 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 5,880 megawatts by January 1, 2015, and the commission shall establish a goal [target] of 10,000 megawatts of installed renewable capacity by January 1, 2020 [2025]. The cumulative installed renewable capacity in this state shall total [2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1, 2009,] 4,264 megawatts by January 1, 2011, 5,256 megawatts by January 1, 2013, and 5,880 megawatts by January 1, 2015. Of the renewable energy technology generating capacity installed to meet the goal of this subsection by January 1, 2020 [after September 1, 2005], the commission shall establish a goal [target] of having at least 4,000 [500] megawatts of capacity from a renewable energy technology other than a source that uses high-capacity [using] wind energy. The cumulative installed renewable capacity from a source other than high-capacity wind energy shall total 500 megawatts by January 1, 2012, 2,000 megawatts by January 1, 2015, and 4,000 megawatts by January 1, 2020.

(d) In this section, "renewable energy technology" means any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly from the sun, indirectly from the sun, or from moving water or other natural movements and mechanisms of the environment. Renewable energy technologies include those that rely on energy derived directly from the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or on renewable biomass or renewable biomass-based waste products, including landfill gas. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources.

(d-1) In this section, "renewable biomass" means:

(1) planted crops and crop residue harvested from agricultural land cleared before September 1, 2009, whether actively managed or fallow, excluding forest land;

(2) wood waste from actively managed tree plantations on nonfederal land cleared before September 1, 2009, including land that belongs to an Indian tribe and is held in trust by the United States or is otherwise subject to a restriction on alienation imposed by the United States;

(3) forest wood waste, including residual tops and limbs of trees, unused cull trees, pre-commercial thinnings, and wood or debris from noncommercial tree species, slash, or brush obtained from nonfederal forest land, including land that belongs to an Indian tribe and is held in trust by the United States or is otherwise subject to a restriction on alienation imposed by the United States, excluding old growth forests or ecologically sensitive areas;

(4) residential or commercial yard waste or food waste, including recycled cooking grease;

(5) organic matter from the vicinity of buildings, public infrastructure, or other areas regularly occupied by people;

(6) animal waste and animal by-products; and

(7) algae.

(d-2) In this section, "high-capacity wind energy" means energy from a source using wind that has a capacity of more than 150 kilowatts.

(o) The commission shall [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 shall [may] establish a separate alternative compliance payment for the goal of 4,000 [500] megawatts of capacity from renewable energy technologies other than high-capacity 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.]

SECTION 2. This Act takes effect September 1, 2009.