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A BILL TO BE ENTITLED
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AN ACT
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relating to the legislature's goals for renewable electric |
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generating capacity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.053(d), Utilities Code, is amended to |
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read as follows: |
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(d) If the commission issues a certificate of convenience |
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and necessity or if the commission, acting under the authority |
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formerly provided by Section 39.203(e), ordered [orders] an |
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electric utility or a transmission and distribution utility to |
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construct or enlarge transmission or transmission-related |
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facilities to facilitate meeting the goal for generating capacity |
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from renewable energy technologies under former Section 39.904(a), |
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the commission shall find that the facilities are used and useful to |
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the utility in providing service for purposes of this section and |
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are prudent and includable in the rate base, regardless of the |
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extent of the utility's actual use of the facilities. |
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SECTION 2. Section 37.0541, Utilities Code, is amended to |
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read as follows: |
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Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The |
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commission shall consolidate the proceeding on an application to |
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obtain or amend a certificate of convenience and necessity for the |
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construction of a transmission line with the proceeding on another |
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application to obtain or amend a certificate of convenience and |
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necessity for the construction of a transmission line if it is |
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apparent from the applications or a motion to intervene in either |
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proceeding that the transmission lines that are the subject of the |
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separate proceedings share a common point of interconnection. |
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[This section does not apply to a proceeding on an application for a |
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certificate of convenience and necessity for a transmission line to |
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serve a competitive renewable energy zone as part of a plan |
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developed by the commission under Section 39.904(g)(2).] |
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SECTION 3. Sections 37.056(c) and (d), Utilities Code, are |
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amended to read as follows: |
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(c) The commission shall grant each certificate on a |
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nondiscriminatory basis after considering: |
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(1) the adequacy of existing service; |
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(2) the need for additional service; |
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(3) the effect of granting the certificate on the |
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recipient of the certificate and any electric utility serving the |
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proximate area; and |
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(4) other factors, such as: |
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(A) community values; |
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(B) recreational and park areas; |
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(C) historical and aesthetic values; |
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(D) environmental integrity; and |
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(E) the probable improvement of service or |
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lowering of cost to consumers in the area if the certificate is |
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granted, including any potential economic or reliability benefits |
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associated with dual fuel and fuel storage capabilities in areas |
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outside the ERCOT power region[; and |
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[(F) to the extent applicable, the effect of |
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granting the certificate on the ability of this state to meet the |
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goal established by Section 39.904(a) of this title]. |
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(d) The commission by rule shall establish criteria, in |
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addition to the criteria described by Subsection (c), for granting |
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a certificate for a transmission project that serves the ERCOT |
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power region and[,] that is not necessary to meet state or federal |
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reliability standards[, and that is not included in a plan |
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developed under Section 39.904(g)]. The criteria must include a |
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comparison of the estimated cost of the transmission project for |
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consumers and the estimated congestion cost savings for consumers |
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that may result from the transmission project, considering both |
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current and future expected congestion levels and the transmission |
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project's ability to reduce those congestion levels. The |
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commission shall include with its decision on an application for a |
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certificate to which this subsection applies findings on the |
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criteria. |
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SECTION 4. Section 39.002, Utilities Code, as amended by |
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Chapters 908 (H.B. 4492) and 950 (S.B. 1580), Acts of the 87th |
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Legislature, Regular Session, 2021, is reenacted and amended to |
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read as follows: |
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Sec. 39.002. APPLICABILITY. This chapter, other than |
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Sections 39.151, 39.1516, 39.155, 39.157(e), 39.159, 39.160, |
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39.203, [39.904,] 39.9051, 39.9052, and 39.914(e), and Subchapters |
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M and N, does not apply to a municipally owned utility or an |
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electric cooperative. Sections 39.157(e) and[,] 39.203[, and |
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39.904, however,] apply only to a municipally owned utility or an |
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electric cooperative that is offering customer choice. If there is |
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a conflict between the specific provisions of this chapter and any |
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other provisions of this title, except for Chapters 40 and 41, the |
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provisions of this chapter control. |
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SECTION 5. Section 39.203(e), Utilities Code, is amended to |
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read as follows: |
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(e) The commission may require an electric utility or a |
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transmission and distribution utility to construct or enlarge |
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facilities to ensure safe and reliable service for the state's |
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electric markets and to reduce transmission constraints within |
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ERCOT in a cost-effective manner where the constraints are such |
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that they are not being resolved through Chapter 37 or the ERCOT |
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transmission planning process. [The commission shall require an |
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electric utility or a transmission and distribution utility to |
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construct or enlarge transmission or transmission-related |
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facilities for the purpose of meeting the goal for generating |
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capacity from renewable energy technologies under Section |
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39.904(a).] In any proceeding brought under Chapter 37, an |
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electric utility or transmission and distribution utility ordered |
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to construct or enlarge facilities under this subchapter need not |
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prove that the construction ordered is necessary for the service, |
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accommodation, convenience, or safety of the public and need not |
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address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E). |
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Notwithstanding any other law, including Section 37.057, in any |
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proceeding brought under Chapter 37 by an electric utility or a |
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transmission and distribution utility related to an application for |
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a certificate of public convenience and necessity to construct or |
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enlarge transmission or transmission-related facilities under this |
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subsection, the commission shall issue a final order before the |
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181st day after the date the application is filed with the |
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commission. If the commission does not issue a final order before |
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that date, the application is approved. |
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SECTION 6. Section 39.402(a), Utilities Code, is amended to |
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read as follows: |
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(a) Until the date on which an electric utility subject to |
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this subchapter is authorized by the commission to implement |
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customer choice, the rates of the utility shall be regulated under |
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traditional cost of service regulation and the utility is subject |
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to all applicable regulatory authority prescribed by this subtitle |
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and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until the |
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date on which an electric utility subject to this subchapter |
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implements customer choice, the provisions of this chapter, other |
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than this subchapter, Sections 39.1516[, 39.904,] and 39.905, and |
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the provisions relating to the duty to obtain a permit from the |
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Texas Commission on Environmental Quality for an electric |
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generating facility and to reduce emissions from an electric |
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generating facility, shall not apply to that utility. That portion |
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of any commission order entered before September 1, 2001, to comply |
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with this subchapter shall be null and void. |
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SECTION 7. Section 39.452(d), Utilities Code, is amended to |
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read as follows: |
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(d) Until the date on which an electric utility subject to |
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this subchapter implements customer choice: |
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(1) the provisions of this chapter do not apply to that |
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electric utility, other than this subchapter, Sections 39.1516[, |
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39.904,] and 39.905, the provisions relating to the duty to obtain a |
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permit from the Texas Commission on Environmental Quality for an |
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electric generating facility and to reduce emissions from an |
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electric generating facility, and the provisions of Subchapter G |
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that pertain to the recovery and securitization of hurricane |
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reconstruction costs authorized by Sections 39.458-39.463; and |
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(2) the electric utility is not subject to a rate |
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freeze and, subject to the limitation provided by Subsection (b), |
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may file for rate changes under Chapter 36 and for approval of one |
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or more of the rate rider mechanisms authorized by Sections 39.454 |
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and 39.455. |
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SECTION 8. Section 39.502(b), Utilities Code, is amended to |
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read as follows: |
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(b) Until the date on which an electric utility subject to |
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this subchapter implements customer choice, the provisions of this |
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chapter, other than this subchapter and Sections 39.1516[, 39.904,] |
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and 39.905, do not apply to that utility. |
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SECTION 9. Section 39.552(b), Utilities Code, is amended to |
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read as follows: |
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(b) Until the date on which an electric utility subject to |
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this subchapter implements customer choice, the provisions of this |
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chapter, other than this subchapter and Sections 39.1516[, 39.904,] |
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and 39.905, do not apply to that utility. |
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SECTION 10. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Sections 39.9111, 39.9112, and 39.9113 to read as |
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follows: |
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Sec. 39.9111. RULES RELATED TO RENEWABLE POWER FACILITIES. |
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The commission may adopt rules requiring renewable power facilities |
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to have reactive power control capabilities or any other feasible |
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technology designed to reduce the facilities' effects on system |
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reliability. |
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Sec. 39.9112. REPORT ON TRANSMISSION AND GENERATION |
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CAPACITY. The commission and the independent organization |
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certified under Section 39.151 for the ERCOT power region shall |
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study the need for increased transmission and generation capacity |
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throughout this state and report to the legislature the results of |
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the study and any recommendations for legislation. The report must |
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be filed with the legislature not later than December 31 of each |
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even-numbered year. |
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Sec. 39.9113. RENEWABLE ENERGY CREDITS. To facilitate |
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voluntary contractual obligations and verify claims regarding |
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environmental attributes of renewable energy production in this |
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state, the independent organization certified under Section 39.151 |
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for the ERCOT power region shall maintain an accreditation and |
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banking system to award and track voluntary renewable energy |
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credits generated by eligible facilities. |
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SECTION 11. Section 39.916(a), Utilities Code, is amended |
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by amending Subdivision (1) and adding Subdivision (4) to read as |
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follows: |
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(1) "Distributed renewable generation" means electric |
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generation with a capacity of not more than 2,000 kilowatts |
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provided by a renewable energy technology[, as defined by Section |
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39.904,] that is installed on a retail electric customer's side of |
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the meter. |
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(4) "Renewable energy technology" means any |
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technology that relies exclusively on an energy source that is |
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naturally regenerated over a short time and is derived from the sun |
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directly or indirectly or from moving water or other natural |
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movements or mechanisms of the environment. The term includes a |
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technology that relies on energy derived from the sun directly, on |
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wind, geothermal, hydroelectric, wave, or tidal energy, or on |
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biomass or biomass-based waste products, including landfill gas. |
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The term does not include a technology that relies on an energy |
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resource derived from a fossil fuel, a waste product from a fossil |
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fuel, or a waste product from an inorganic source. |
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SECTION 12. Section 40.001(a), Utilities Code, is amended |
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to read as follows: |
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(a) Notwithstanding any other provision of law, except |
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Sections 39.155, 39.157(e), and 39.203, [and 39.904,] this chapter |
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governs the transition to and the establishment of a fully |
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competitive electric power industry for municipally owned |
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utilities. With respect to the regulation of municipally owned |
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utilities, this chapter controls over any other provision of this |
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title, except for sections in which the term "municipally owned |
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utility" is specifically used. |
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SECTION 13. Section 40.004, Utilities Code, is amended to |
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read as follows: |
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Sec. 40.004. JURISDICTION OF COMMISSION. Except as |
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specifically otherwise provided in this chapter, the commission has |
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jurisdiction over municipally owned utilities only for the |
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following purposes: |
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(1) to regulate wholesale transmission rates and |
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service, including terms of access, to the extent provided by |
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Subchapter A, Chapter 35; |
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(2) to regulate certification of retail service areas |
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to the extent provided by Chapter 37; |
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(3) to regulate rates on appeal under Subchapters D |
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and E, Chapter 33, subject to Section 40.051(c); |
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(4) to establish a code of conduct as provided by |
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Section 39.157(e) applicable to anticompetitive activities and to |
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affiliate activities limited to structurally unbundled affiliates |
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of municipally owned utilities, subject to Section 40.054; |
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(5) to establish terms and conditions for open access |
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to transmission and distribution facilities for municipally owned |
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utilities providing customer choice, as provided by Section 39.203; |
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(6) to administer [the renewable energy credits |
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program under Section 39.904(b) and] the natural gas energy credits |
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program under Section 39.9044(b); |
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(7) to require reports of municipally owned utility |
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operations only to the extent necessary to: |
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(A) enable the commission to determine the |
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aggregate load and energy requirements of the state and the |
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resources available to serve that load; or |
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(B) enable the commission to determine |
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information relating to market power as provided by Section 39.155; |
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and |
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(8) to evaluate and monitor the cybersecurity |
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preparedness of a municipally owned utility described by Section |
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39.1516(a)(3) or (4). |
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SECTION 14. Section 41.001, Utilities Code, is amended to |
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read as follows: |
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Sec. 41.001. APPLICABLE LAW. Notwithstanding any other |
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provision of law, except Sections 39.155, 39.157(e), and 39.203, |
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[and 39.904,] this chapter governs the transition to and the |
|
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establishment of a fully competitive electric power industry for |
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electric cooperatives. Regarding the regulation of electric |
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cooperatives, this chapter shall control over any other provision |
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of this title, except for sections in which the term "electric |
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cooperative" is specifically used. |
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SECTION 15. Sections 39.904 and 39.916(g), Utilities Code, |
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are repealed. |
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SECTION 16. It is the intent of the 88th Legislature, |
|
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Regular Session, 2023, that the amendments made by this Act be |
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harmonized with another Act of the 88th Legislature, Regular |
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Session, 2023, relating to nonsubstantive additions to and |
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corrections in enacted codes. |
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SECTION 17. This Act takes effect September 1, 2023. |
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* * * * * |