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A BILL TO BE ENTITLED
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AN ACT
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relating to renewable energy technology capable of serving peak |
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demand. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.904, Utilities Code, is amended by |
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amending Subsections (a), (b), and (o) and adding Subsection (d-1) |
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to read as follows: |
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(a) It is the intent of the legislature that after January |
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1, 2022, [by January 1, 2015, an additional 5,000] 10,880 megawatts |
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of generating capacity from renewable energy technologies will have |
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been installed in this state, 5,000 megawatts of which must be |
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renewable energy technology capable of serving peak demand. The |
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cumulative installed renewable capacity in this state shall total: |
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(1) 6,880 megawatts by January 1, 2015, 1,000 |
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megawatts of which must be from renewable energy technology capable |
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of serving peak demand and 5,880 megawatts of which may be from |
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other renewable energy technologies; |
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(2) 7,880 megawatts by January 1, 2016, 2,000 |
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megawatts of which must be from renewable energy technology capable |
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of serving peak demand and 5,880 megawatts of which may be from |
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other renewable energy technologies; |
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(3) 8,880 megawatts by January 1, 2018, 3,000 |
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megawatts of which must be from renewable energy technology capable |
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of serving peak demand and 5,880 megawatts of which may be from |
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other renewable energy technologies; |
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(4) 9,880 megawatts by January 1, 2020, 4,000 |
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megawatts of which must be from renewable energy technology capable |
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of serving peak demand and 5,880 megawatts of which may be from |
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other renewable energy technologies; |
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(5) 10,880 megawatts after January 1, 2022, 5,000 |
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megawatts of which must be from renewable energy technology capable |
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of serving peak demand and 5,880 megawatts of which may be from |
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other renewable energy technologies[5,880 megawatts by January 1,
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2015, and the commission shall establish a target of 10,000
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megawatts of installed renewable capacity by January 1, 2025. The
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cumulative installed renewable capacity in this state shall total
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2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1,
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2009,
4,264 megawatts by January 1, 2011, 5,256 megawatts by
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January 1, 2013, and 5,880 megawatts by January 1, 2015. Of the
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renewable energy technology generating capacity installed to meet
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the goal of this subsection 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 from a renewable energy technology other than a source
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using wind energy]. |
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(b) The commission shall establish a renewable energy |
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credits trading program. Any retail electric provider, municipally |
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owned 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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(d-1) In this section, "renewable energy technology capable |
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of serving peak demand" means a renewable energy technology that: |
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(1) may be dispatched by the operator regardless of |
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environmental or weather conditions; or |
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(2) during the preceding year, provided energy at a |
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capacity factor of at least 40 percent between 1 p.m. and 8 p.m. in |
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June, July, August, and September. |
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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 requirement |
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under this section may elect to pay the alternative compliance |
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payment instead of applying renewable energy credits toward the |
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satisfaction of the entity's obligation under this section. The |
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commission may establish a separate alternative compliance payment |
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for the goal of installing 5,000 [500] megawatts of capacity from |
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renewable energy technologies capable of serving peak demand [other
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than wind energy]. The alternative compliance payment for a |
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renewable energy purchase requirement that could be satisfied with |
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a renewable energy credit from wind energy may not be less than |
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$2.50 per credit or greater than $20 per credit. Prior to September |
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1, 2009, an alternative compliance payment under this subsection |
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may not be set above $5 per credit. In implementing this subsection, |
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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 2. This Act takes effect September 1, 2013. |