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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 electric generation |
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capacity in this state. |
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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 to |
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read as follows: |
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Sec. 39.9044. GOAL FOR DISPATCHABLE GENERATION [NATURAL |
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GAS]. (a) It is the intent of the legislature that 50 percent of |
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the megawatts of generating capacity installed in this state after |
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January 1, 2024 [2000], be dispatchable [use natural gas]. [To the |
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extent permitted by law, the commission shall establish a program |
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to 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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(b) The commission shall establish a dispatchable |
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generation [natural gas] energy credits trading program. Any power |
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generation company, municipally owned utility, or electric |
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cooperative that does not satisfy the requirements of Subsection |
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(a) by directly owning or purchasing capacity using dispatchable |
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generation [natural gas] technologies shall purchase sufficient |
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dispatchable generation [natural gas] energy credits to satisfy the |
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requirements by holding dispatchable generation [natural gas] |
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energy credits in lieu of capacity from dispatchable generation |
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[natural gas] energy technologies. |
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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 dispatchable |
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[natural gas] generation requirement for each power generation |
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company, municipally owned utility, and electric cooperative |
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operating in this state in a manner reasonably calculated by the |
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commission to produce, on a statewide basis, compliance with the |
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requirement prescribed by Subsection (a); and |
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(2) specify reasonable performance standards that all |
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dispatchable generation [natural gas] capacity additions must meet |
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to count against the requirement prescribed by Subsection (a) and |
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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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(d) The commission, with the assistance of the Railroad |
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Commission of Texas, shall adopt rules allowing and encouraging |
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retail electric providers and municipally owned utilities and |
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electric cooperatives that have adopted customer choice to market |
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electricity generated using natural gas produced in this state as |
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environmentally beneficial. The rules shall allow a provider, |
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municipally owned utility, or cooperative to: |
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(1) emphasize that natural gas produced in this state |
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is the cleanest-burning fossil fuel; and |
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(2) label the electricity generated using natural gas |
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produced in this state as "green" electricity. |
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(e) On or before January 1, 2027, the commission shall |
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activate the dispatchable generation energy credits trading |
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program established by this section if the commission determines |
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that dispatchable generation generating capacity installed in this |
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state after January 1, 2024, may fall below 55 percent of all |
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generating capacity installed in this state after January 1, 2024. |
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The commission shall adopt rules not later than 180 days after the |
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date of the program's activation to determine the conditions for |
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compliance and penalties for noncompliance for each power |
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generation company, municipally owned utility, and electric |
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cooperative subject to the program [In this section, "natural gas |
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technology" means any technology that exclusively relies on natural |
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gas as a primary fuel source]. |
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(f) Notwithstanding Subsection (e), the commission may |
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accelerate implementation of individual requirements for power |
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generation companies, municipally owned utilities, and electric |
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cooperatives if the commission determines that such action is in |
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the public interest. |
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(g) Before September 15 of each year, each power generation |
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company, municipally owned utility, and electric cooperative shall |
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file with the commission on a form prescribed by the commission a |
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report regarding all generating facilities the power generation |
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company, municipally owned utility, or electric cooperative owns or |
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operates in this state. |
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(h) Not later than May 15 of each year, the commission shall |
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publish, in aggregate form only, information submitted to the |
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commission in compliance with this section and calculations that |
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show whether the prior year's generating capacity in this state is |
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in compliance with this section and whether capacity for the |
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following three years is likely to be in compliance with this |
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section based on the forecast information submitted. |
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SECTION 2. 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 program |
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under Section 39.904(b) and the dispatchable generation [natural |
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gas] energy credits 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 3. This Act takes effect September 1, 2023. |