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  81R9099 TJS-F
 
  By: Lucio S.B. No. 1419
 
 
 
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.