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A BILL TO BE ENTITLED
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AN ACT
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relating to incentives for Texas renewable energy jobs and |
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manufacturing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. PURPOSE. The purpose of this Act is to continue |
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promoting clean, renewable energy in Texas in a manner that creates |
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manufacturing jobs and bolsters the Texas economy. |
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SECTION 2. Section 39.904, Utilities Code, is amended by |
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amending Subsections (a), (b), (m-3), and (o), and adding |
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Subsection (c-1) to read as follows: |
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Sec. 39.904. GOAL FOR RENEWABLE ENERGY. (a) It is the |
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intent of the legislature that by January 1, 2015, an additional |
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5,000 megawatts of generating capacity from renewable energy |
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technologies will have been installed in this state. The |
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cumulative installed renewable capacity in this state shall total |
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5,880 megawatts by January 1, 2015, and [the commission shall
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establish a target of] 10,000 megawatts [of installed renewable
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capacity] by January 1, 2025. The cumulative installed renewable |
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capacity in this state shall total 2,280 megawatts by January 1, |
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2007, 3,272 megawatts by January 1, 2009, 4,264 megawatts by |
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January 1, 2011, 5,256 megawatts by January 1, 2013, and 5,880 |
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megawatts by January 1, 2015. Of the renewable energy technology |
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generating capacity installed to meet the goal of this subsection, |
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the cumulative installed [after September 1, 2005 the commission
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shall establish a target of having at least 500 megawatts of] |
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capacity in this state from a renewable energy technology other |
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than a source using wind energy shall total 3,000 megawatts by |
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January 1, 2020. |
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(b) The commission shall establish [a] renewable energy |
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credits trading programs to meet the goals provided by Subsection |
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(a). [program.] Any retail electric provider, municipally owned |
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utility, or electric cooperative that does not satisfy the |
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requirements of Subsection (a) by directly owning or purchasing |
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capacity using renewable energy technologies shall purchase |
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sufficient renewable energy credits to satisfy the requirements by |
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holding renewable energy credits in lieu of capacity from renewable |
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energy technologies. |
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(c-1) Not later than January 1, 2011, the commission shall |
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adopt rules necessary to provide a "Made in Texas" incentive for |
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renewable energy credits generated by generation equipment that is |
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wholly produced or substantially transformed by a Texas workforce, |
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as determined by the commission. The incentive under this |
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subsection shall be available for the first three years after the |
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renewable energy equipment first produces electricity on a |
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commercial basis. |
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(m-3) Subsections (m), (m-1), and (m-2) do not alter the |
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renewable energy goals [or targets] established in Subsection (a) |
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or reduce the minimum statewide renewable energy requirements of |
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Subsection (c)(1). |
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(o) The commission may establish an alternative compliance |
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payment. An entity that has a renewable energy purchase |
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requirement under this section may elect to pay the alternative |
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compliance payment instead of applying renewable energy credits |
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toward the satisfaction of the entity's obligation under this |
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section. The commission may establish a separate alternative |
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compliance payment for the goal of 3,000 [500] megawatts of |
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installed capacity from renewable energy technologies other than |
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wind energy by January 1, 2020. The alternative compliance payment |
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from a renewable energy purchase requirement that could be |
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satisfied with a renewable energy credit from wind energy may not be |
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less than $2.50 per credit or greater than $20 per credit. Prior to |
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September 1, 2009, an alternative compliance payment under this |
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subsection may not be set above $5 per credit. In implementing this |
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subsection, the commission shall consider: |
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(1) the effect of renewable energy credit prices on |
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retail competition; |
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(2) the effect of renewable energy credit prices on |
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electric rates; |
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(3) the effect of the alternative compliance payment |
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level on the renewable energy credit market; and |
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(4) any other factors necessary to ensure the |
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continued development of the renewable energy industry in this |
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state while protecting ratepayers from unnecessary rate increases. |
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SECTION 3. This Act takes effect September 1, 2009. |