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A BILL TO BE ENTITLED
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AN ACT
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relating to a statewide requirement for natural gas generating |
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capacity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.9044, Utilities Code, is amended by |
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amending Subsections (a) and (c) and adding Subsection (a-1) to |
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read as follows: |
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(a) Of the total amount of generating capacity installed in |
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this state, [It is the intent of the legislature that] 50 percent |
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must [of the megawatts of generating capacity installed in this |
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state after January 1, 2000,] use natural gas. To the extent |
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permitted by law, the commission shall establish a program to |
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encourage utilities to comply with this section by using natural |
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gas produced in this state as the preferential fuel. This section |
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does not apply to generating capacity for renewable energy |
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technologies. |
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(a-1) If the commission determines that the market price for |
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natural gas at the wellhead in this state averages at least $6 per |
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1,000 cubic feet for at least one month, the requirement |
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established by Subsection (a) does not apply until the price |
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averages less than $6 for at least one month. |
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(c) The [Not later than January 1, 2000, the] commission |
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shall adopt rules necessary to administer and enforce this section |
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and to perform any necessary studies in cooperation with the |
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Railroad Commission of Texas. At a minimum, the rules shall: |
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(1) establish the minimum annual natural gas |
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generation requirement for each power generation company, |
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municipally owned utility, and electric cooperative operating in |
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this state in a manner reasonably calculated by the commission to |
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produce, on a statewide basis, compliance with the requirement |
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prescribed by Subsection (a); and |
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(2) specify reasonable performance standards that all |
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natural gas capacity additions must meet to count against the |
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requirement prescribed by Subsection (a) and that: |
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(A) are designed and operated so as to maximize |
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the energy output from the capacity additions in accordance with |
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then-current industry standards and best industry standards; and |
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(B) encourage the development, construction, and |
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operation of new natural gas energy projects at those sites in this |
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state that have the greatest economic potential for capture and |
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development of this state's environmentally beneficial natural gas |
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resources. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the Public Utility Commission of Texas shall adopt the |
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rules necessary to administer and enforce Section 39.9044, |
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Utilities Code, as amended by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |