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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a solar and distributed renewable |
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generation incentive program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.917 to read as follows: |
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Sec. 39.917. SOLAR GENERATION INCENTIVE PROGRAM. (a) It is |
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the goal of the legislature that electric utilities administer |
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incentive programs for residential, commercial, and industrial |
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customers to increase the amount of solar generation capacity |
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installed in this state in a cost-effective, market-neutral, and |
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nondiscriminatory manner, with a goal of installing at least 3,000 |
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megawatts of solar generation capacity in this state by 2020, at |
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least 1,000 of which must be distributed renewable generation as |
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defined by Section 39.916. |
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(b) The commission by rule shall: |
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(1) establish a solar generation incentive program, to |
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be implemented by electric utilities, municipally owned electric |
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utilities, and electric cooperatives; |
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(2) oversee the implementation of the program required |
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by Subdivision (1); and |
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(3) establish procedures to achieve the goal |
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established by Subsection (a). |
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(c) The rules adopted under Subsection (b) must include |
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provisions for: |
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(1) a solar generation capacity cost recovery factor |
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to ensure timely and reasonable cost recovery for electric utility |
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expenditures under this section; |
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(2) recovery of the cost of electric utility programs |
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through nonbypassable fees of not less than $0.000636 per kilowatt |
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hour for residential, commercial, and industrial customers; |
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(3) awarding incentive rebates in the first year of |
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the program of not less than: |
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(A) $2.40 per watt for residential installation; |
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(B) $1.50 per watt for commercial installation; |
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and |
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(C) $1.10 per watt for industrial installation; |
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(4) reducing the rebate amounts by not less than seven |
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percent annually; |
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(5) eliminating the incentive provided by electric |
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utilities under this subsection on the date the goals established |
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by Subsection (a) are achieved; and |
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(6) allowing a utility to collect up to five percent of |
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the awarded incentives for administrative costs. |
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(d) Electric utilities may not provide incentives under |
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this section for solar generation that is installed after the 10th |
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anniversary of the date on which the commission by rule establishes |
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the program required by this section. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, but not later than January 1, 2010, the Public Utility |
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Commission of Texas shall adopt rules establishing the solar |
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generation incentive program required by Section 39.917, Utilities |
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Code, as added by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |