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  88R13866 CXP-D
 
  By: King, Schwertner S.B. No. 2015
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the legislature's goals for electric generation
  capacity in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.9044, Utilities Code, is amended to
  read as follows:
         Sec. 39.9044.  GOAL FOR DISPATCHABLE GENERATION [NATURAL
  GAS]. (a) It is the intent of the legislature that 50 percent of
  the megawatts of generating capacity installed in this state after
  January 1, 2024 [2000], be dispatchable [use natural gas]. [To the
  extent permitted by law, the commission shall establish a program
  to encourage utilities to comply with this section by using natural
  gas produced in this state as the preferential fuel. This section
  does not apply to generating capacity for renewable energy
  technologies.]
         (b)  The commission shall establish a dispatchable
  generation [natural gas] energy credits trading program. Any power
  generation company, municipally owned utility, or electric
  cooperative that does not satisfy the requirements of Subsection
  (a) by directly owning or purchasing capacity using dispatchable
  generation [natural gas] technologies shall purchase sufficient
  dispatchable generation [natural gas] energy credits to satisfy the
  requirements by holding dispatchable generation [natural gas]
  energy credits in lieu of capacity from dispatchable generation
  [natural gas] energy technologies.
         (c)  The [Not later than January 1, 2000, the] commission
  shall adopt rules necessary to administer and enforce this section
  and to perform any necessary studies in cooperation with the
  Railroad Commission of Texas. At a minimum, the rules shall:
               (1)  establish the minimum annual dispatchable
  [natural gas] generation requirement for each power generation
  company, municipally owned utility, and electric cooperative
  operating in this state in a manner reasonably calculated by the
  commission to produce, on a statewide basis, compliance with the
  requirement prescribed by Subsection (a); and
               (2)  specify reasonable performance standards that all
  dispatchable generation [natural gas] capacity additions must meet
  to count against the requirement prescribed by Subsection (a) and
  that:
                     (A)  are designed and operated so as to maximize
  the energy output from the capacity additions in accordance with
  then-current industry standards and best industry standards; and
                     (B)  encourage the development, construction, and
  operation of new natural gas energy projects at those sites in this
  state that have the greatest economic potential for capture and
  development of this state's environmentally beneficial natural gas
  resources.
         (d)  The commission, with the assistance of the Railroad
  Commission of Texas, shall adopt rules allowing and encouraging
  retail electric providers and municipally owned utilities and
  electric cooperatives that have adopted customer choice to market
  electricity generated using natural gas produced in this state as
  environmentally beneficial. The rules shall allow a provider,
  municipally owned utility, or cooperative to:
               (1)  emphasize that natural gas produced in this state
  is the cleanest-burning fossil fuel; and
               (2)  label the electricity generated using natural gas
  produced in this state as "green" electricity.
         (e)  On or before January 1, 2027, the commission shall
  activate the dispatchable generation energy credits trading
  program established by this section if the commission determines
  that dispatchable generation generating capacity installed in this
  state after January 1, 2024, may fall below 55 percent of all
  generating capacity installed in this state after January 1, 2024.  
  The commission shall adopt rules not later than 180 days after the
  date of the program's activation to determine the conditions for
  compliance and penalties for noncompliance for each power
  generation company, municipally owned utility, and electric
  cooperative subject to the program [In this section, "natural gas
  technology" means any technology that exclusively relies on natural
  gas as a primary fuel source].
         (f)  Notwithstanding Subsection (e), the commission may
  accelerate implementation of individual requirements for power
  generation companies, municipally owned utilities, and electric
  cooperatives if the commission determines that such action is in
  the public interest.
         (g)  Before September 15 of each year, each power generation
  company, municipally owned utility, and electric cooperative shall
  file with the commission on a form prescribed by the commission a
  report regarding all generating facilities the power generation
  company, municipally owned utility, or electric cooperative owns or
  operates in this state.
         (h)  Not later than May 15 of each year, the commission shall
  publish, in aggregate form only, information submitted to the
  commission in compliance with this section and calculations that
  show whether the prior year's generating capacity in this state is
  in compliance with this section and whether capacity for the
  following three years is likely to be in compliance with this
  section based on the forecast information submitted.
         SECTION 2.  Section 40.004, Utilities Code, is amended to
  read as follows:
         Sec. 40.004.  JURISDICTION OF COMMISSION. Except as
  specifically otherwise provided in this chapter, the commission has
  jurisdiction over municipally owned utilities only for the
  following purposes:
               (1)  to regulate wholesale transmission rates and
  service, including terms of access, to the extent provided by
  Subchapter A, Chapter 35;
               (2)  to regulate certification of retail service areas
  to the extent provided by Chapter 37;
               (3)  to regulate rates on appeal under Subchapters D
  and E, Chapter 33, subject to Section 40.051(c);
               (4)  to establish a code of conduct as provided by
  Section 39.157(e) applicable to anticompetitive activities and to
  affiliate activities limited to structurally unbundled affiliates
  of municipally owned utilities, subject to Section 40.054;
               (5)  to establish terms and conditions for open access
  to transmission and distribution facilities for municipally owned
  utilities providing customer choice, as provided by Section 39.203;
               (6)  to administer the renewable energy credits program
  under Section 39.904(b) and the dispatchable generation [natural
  gas] energy credits program under Section 39.9044(b);
               (7)  to require reports of municipally owned utility
  operations only to the extent necessary to:
                     (A)  enable the commission to determine the
  aggregate load and energy requirements of the state and the
  resources available to serve that load; or
                     (B)  enable the commission to determine
  information relating to market power as provided by Section 39.155;
  and
               (8)  to evaluate and monitor the cybersecurity
  preparedness of a municipally owned utility described by Section
  39.1516(a)(3) or (4).
         SECTION 3.  This Act takes effect September 1, 2023.