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A BILL TO BE ENTITLED
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AN ACT
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relating to distributed generation of electric power by natural gas |
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powered generation facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002, Utilities Code, is amended by |
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adding Subdivision (4-a) and amending Subdivision (10) to read as |
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follows: |
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(4-a) "Distributed natural gas generation facility" |
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means a facility installed on the customer's side of the meter that |
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is used for the generation of not more than 2,000 kilowatts of |
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electricity. |
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(10) "Power generation company" means a person, |
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including a person who owns or operates a distributed natural gas |
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generation facility, that: |
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(A) generates electricity that is intended to be |
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sold at wholesale; |
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(B) does not own a transmission or distribution |
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facility in this state other than an essential interconnecting |
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facility, a facility not dedicated to public use, or a facility |
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otherwise excluded from the definition of "electric utility" under |
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this section; and |
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(C) does not have a certificated service area, |
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although its affiliated electric utility or transmission and |
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distribution utility may have a certificated service area. |
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SECTION 2. The heading to Subchapter B, Chapter 35, |
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Utilities Code, is amended to read as follows: |
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SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS, DISTRIBUTED NATURAL GAS |
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GENERATION FACILITIES, AND POWER MARKETERS |
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SECTION 3. Subchapter B, Chapter 35, Utilities Code, is |
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amended by adding Section 35.036 to read as follows: |
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Sec. 35.036. DISTRIBUTED NATURAL GAS GENERATION |
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FACILITIES. (a) A person who owns or operates a distributed |
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natural gas generation facility may sell electric power generated |
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by the facility. The electric utility, electric cooperative, or |
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retail electric provider that provides retail electricity service |
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to the facility shall: |
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(1) purchase electric power tendered to it by the |
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owner or operator of the facility at a fair market value price; or |
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(2) allow the owner or operator of the facility to use |
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the transmission and distribution facilities to transmit the |
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electric power to another market that is acceptable to the owner or |
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operator in accordance with commission rules. |
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(b) A distributed natural gas generation facility must |
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comply with emissions limitations established by the Texas |
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Commission on Environmental Quality for a standard emissions permit |
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for an electric generation facility unit installed after January 1, |
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1995. |
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SECTION 4. Subsection (c), Section 39.351, Utilities Code, |
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is amended to read as follows: |
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(c) The commission may establish simplified filing |
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requirements for distributed natural gas generation facilities [A
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power generation company may register any time after September 1,
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2000]. |
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SECTION 5. This Act takes effect September 1, 2009. |
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