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|  | A BILL TO BE ENTITLED | 
|  | AN ACT | 
|  | relating to energy demand and incentives for distributed renewable | 
|  | generation. | 
|  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
|  | SECTION 1.  Subchapter Z, Chapter 39, Utilities Code, is | 
|  | amended by adding Section 39.917 to read as follows: | 
|  | Sec. 39.917.  GOAL FOR DISTRIBUTED RENEWABLE GENERATION. | 
|  | (a)  In this section, "distributed renewable generation" has the | 
|  | meaning assigned by Section 39.916. | 
|  | (b)  It is the goal of the legislature that by January 1, | 
|  | 2020, an additional 2,000 megawatts of generating capacity from | 
|  | distributed renewable energy sources will have been installed in | 
|  | this state and that, by January 1, 2015, at least 1,000 megawatts of | 
|  | that additional generating capacity will have been installed in | 
|  | this state. | 
|  | (c)  Electric utilities shall administer programs to give | 
|  | all customers, in all customer classes, an opportunity and | 
|  | incentive to use distributed renewable generation as a supplemental | 
|  | energy source, including programs that provide incentives to: | 
|  | (1)  commercial and residential customers to build | 
|  | integrated solar and geothermal generation of their residence or | 
|  | place of business; and | 
|  | (2)  homebuilders to build integrated solar and | 
|  | geothermal generation in new homes. | 
|  | (d)  A retail electric provider shall provide its customers | 
|  | with distributed renewable generation educational materials. | 
|  | (e)  The commission shall provide oversight and adopt rules | 
|  | and procedures to ensure that the utilities can achieve the goal | 
|  | prescribed by this section, including rules and procedures: | 
|  | (1)  establishing a distributed renewable generation | 
|  | cost recovery factor for ensuring timely and reasonable cost | 
|  | recovery for utility expenditures made to satisfy the goal | 
|  | prescribed by this section; | 
|  | (2)  establishing an incentive under Section 36.204 to | 
|  | reward utilities administering programs under this section; | 
|  | (3)  providing a utility that is unable to establish a | 
|  | distributed renewable generation cost recovery factor in a timely | 
|  | manner due to a rate freeze with a mechanism to enable the utility | 
|  | to: | 
|  | (A)  defer the costs of complying with this | 
|  | section; and | 
|  | (B)  recover the deferred costs through a | 
|  | distributed renewable generation cost recovery factor on the | 
|  | expiration of the rate freeze period; | 
|  | (4)  ensuring that the costs associated with the | 
|  | programs provided under this section are borne by the customer | 
|  | classes that receive the services under the programs; and | 
|  | (5)  ensuring the program encourages the utilities to | 
|  | pass on the value of the incentives to end-use consumers. | 
|  | (f)  The distributed renewable generation cost recovery | 
|  | factor under Subsection (e) may not result in an over-recovery of | 
|  | costs but may be adjusted each year to change rates to enable | 
|  | utilities to match revenues against distributed renewable | 
|  | generation costs and any incentives they receive.  The factor shall | 
|  | be adjusted to reflect any over-collection or under-collection of | 
|  | distributed renewable generation cost recovery revenue in previous | 
|  | years. | 
|  | SECTION 2.  This Act takes effect immediately if it receives | 
|  | a vote of two-thirds of all the members elected to each house, as | 
|  | provided by Section 39, Article III, Texas Constitution.  If this | 
|  | Act does not receive the vote necessary for immediate effect, this | 
|  | Act takes effect September 1, 2009. |