Bill Text: TX HB774 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to renewable energy capacity, jobs, and trading credits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-16 - Left pending in committee [HB774 Detail]

Download: Texas-2011-HB774-Introduced.html
  82R3970 JXC-D
 
  By: Anchia H.B. No. 774
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to renewable energy capacity, jobs, and trading credits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The purpose of this Act is to continue Texas'
  leadership in installing clean, renewable energy in Texas in a
  market-based manner that provides price protection for businesses
  and consumers.
         SECTION 2.  Section 36.053(d), Utilities Code, is amended to
  read as follows:
         (d)  If the commission issues a certificate of convenience
  and necessity or, acting under Section 39.203(e), orders an
  electric utility or a transmission and distribution utility to
  construct or enlarge transmission or transmission-related
  facilities to facilitate meeting the goals [goal] for generating
  capacity from renewable energy technologies established by
  Sections [under Section] 39.904(a) and (a-1), the commission shall
  find that the facilities are used and useful to the utility in
  providing service for purposes of this section and are prudent and
  includable in the rate base, regardless of the extent of the
  utility's actual use of the facilities.
         SECTION 3.  Section 37.056(c), Utilities Code, is amended to
  read as follows:
         (c)  The commission shall grant each certificate on a
  nondiscriminatory basis after considering:
               (1)  the adequacy of existing service;
               (2)  the need for additional service;
               (3)  the effect of granting the certificate on the
  recipient of the certificate and any electric utility serving the
  proximate area; and
               (4)  other factors, such as:
                     (A)  community values;
                     (B)  recreational and park areas;
                     (C)  historical and aesthetic values;
                     (D)  environmental integrity;
                     (E)  the probable improvement of service or
  lowering of cost to consumers in the area if the certificate is
  granted; and
                     (F)  to the extent applicable, the effect of
  granting the certificate on the ability of this state to meet the
  goals [goal] established by Sections [Section] 39.904(a) and (a-1)
  of this title.
         SECTION 4.  Section 39.203(e), Utilities Code, is amended to
  read as follows:
         (e)  The commission may require an electric utility or a
  transmission and distribution utility to construct or enlarge
  facilities to ensure safe and reliable service for the state's
  electric markets and to reduce transmission constraints within
  ERCOT in a cost-effective manner where the constraints are such
  that they are not being resolved through Chapter 37 or the ERCOT
  transmission planning process.  The commission shall require an
  electric utility or a transmission and distribution utility to
  construct or enlarge transmission or transmission-related
  facilities for the purpose of meeting the goals [goal] for
  generating capacity from renewable energy technologies established
  by Sections [under Section] 39.904(a) and (a-1).  In any proceeding
  brought under Chapter 37, an electric utility or transmission and
  distribution utility ordered to construct or enlarge facilities
  under this subchapter need not prove that the construction ordered
  is necessary for the service, accommodation, convenience, or safety
  of the public and need not address the factors listed in Sections
  37.056(c)(1)-(3) and (4)(E).  Notwithstanding any other law,
  including Section 37.057, in any proceeding brought under Chapter
  37 by an electric utility or a transmission and distribution
  utility related to an application for a certificate of public
  convenience and necessity to construct or enlarge transmission or
  transmission-related facilities under this subsection, the
  commission shall issue a final order before the 181st day after the
  date the application is filed with the commission.  If the
  commission does not issue a final order before that date, the
  application is approved.
         SECTION 5.  Section 39.904, Utilities Code, is amended by
  amending Subsections (a), (b), (c), (d), (n), and (o) and adding
  Subsections (a-1), (c-1), (n-1), and (p) to read as follows:
         (a)  It is the intent of the legislature that by January 1,
  2015, an additional 5,000 megawatts of generating capacity from
  tier 1 renewable energy technologies will have been installed in
  this state. The cumulative installed renewable capacity in this
  state shall total 5,880 megawatts by January 1, 2015, and the
  commission shall establish a target of 10,000 megawatts of
  installed renewable capacity by January 1, 2025. The cumulative
  installed tier 1 renewable capacity in this state shall total
  [2,280 megawatts by January 1, 2007, 3,272 megawatts by January 1,
  2009, 4,264 megawatts by January 1, 2011,] 5,256 megawatts by
  January 1, 2013, and 5,880 megawatts by January 1, 2015. [Of the
  renewable energy technology generating capacity installed to meet
  the goal of this subsection after September 1, 2005, the commission
  shall establish a target of having at least 500 megawatts of
  capacity from a renewable energy technology other than a source
  using wind energy.]
         (a-1)  It is the goal of the legislature that by January 1,
  2020, an additional 1,500 megawatts of generating capacity from
  tier 2 renewable energy will have been installed in this state.  The
  cumulative installed tier 2 renewable capacity in this state shall
  total at least 100 megawatts by January 1, 2012; 200 megawatts by
  January 1, 2013; 350 megawatts by January 1, 2014; 500 megawatts by
  January 1, 2015; 750 megawatts by January 1, 2016; 900 megawatts by
  January 1, 2017; 1,000 megawatts by January 1, 2018; 1,250
  megawatts by January 1, 2019; and 1,500 megawatts by January 1,
  2020. On January 1, 2016, if the commission determines the state
  has not made significant progress toward the goals of this
  subsection, then the commission may take action to suspend future
  obligations under this subsection.
         (b)  The commission shall establish a tier 1 renewable energy
  credits trading program and a tier 2 renewable energy credits
  trading program. Any retail electric provider, municipally owned
  utility, or electric cooperative that does not satisfy the
  requirements of Subsection (a) or (a-1) by directly owning or
  purchasing capacity using renewable energy technologies shall
  purchase sufficient renewable energy credits to satisfy the
  requirements by holding renewable energy credits in lieu of
  capacity from renewable energy technologies. In calculating
  capacity factors for tier 2 renewable energy credits, the
  commission shall encourage a diverse portfolio of tier 2 renewable
  energy technologies.  The commission may adopt rules to establish a
  sub-tier within the tier 2 renewable energy credits trading program
  for one or more types of renewable energy technology included in the
  tier 2 program.
         (c)  The [Not later than January 1, 2000, the] commission
  shall adopt rules necessary to administer and enforce this section.
  At a minimum, the rules shall:
               (1)  establish the minimum annual renewable energy
  requirement for each retail electric provider, 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 requirements [requirement]
  prescribed by Subsections (a) and (a-1) [Subsection (a)]; and
               (2)  specify reasonable performance standards that all
  renewable capacity additions must meet to count against the
  requirements [requirement] prescribed by Subsections (a) and (a-1)
  [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
                     (B)  encourage the development, construction, and
  operation of new renewable energy projects at those sites in this
  state that have the greatest economic potential for capture and
  development of this state's environmentally beneficial renewable
  resources.
         (c-1)  Not later than January 1, 2013, the commission shall
  adopt rules necessary to provide a "Made in Texas" incentive for
  tier 1 and tier 2 renewable energy credits generated by electricity
  generation equipment that is manufactured in Texas.  The commission
  by rule shall define "manufactured" for the purposes of this
  subsection.  The incentive provided by this subsection is available
  for the first three years after the electricity generation
  equipment first produces electricity on a commercial basis.
         (d)  For purposes of [In] this section:
               (1)  "Tier 1 renewable energy technology" [, "renewable
  energy technology"] means any technology that exclusively relies on
  an energy source that is naturally regenerated over a short time and
  derived directly from the sun, indirectly from the sun, or from
  moving water or other natural movements and mechanisms of the
  environment. Renewable energy technologies include those that rely
  on energy derived directly from the sun, on wind, geothermal,
  hydroelectric, wave, or tidal energy, or on biomass or
  biomass-based waste products, including landfill gas. A renewable
  energy technology does not rely on energy resources derived from
  fossil fuels, waste products from fossil fuels, or waste products
  from inorganic sources.
               (2)  "Tier 2 renewable energy" means tier 1 renewable
  energy technology, excluding energy derived from wind, with a
  capacity of more than 150 kilowatts.
         (n)  Notwithstanding any other provision of law, the
  commission shall have the authority to cap the price of renewable
  energy credits and may suspend the goals [goal] contained in
  Subsections (a) and (a-1) [Subsection (a)] if such suspension is
  necessary to protect the reliability and operation of the grid.
         (n-1)  The commission shall reduce the requirement under
  Subsection (c)(1) for a retail electric provider, municipally owned
  utility, or electric cooperative that is subject to a renewable
  energy requirement under this section if the commission determines
  that compliance with the goals of Subsection (a-1) and a federal
  renewable portfolio standard that is more stringent than those
  goals would result in a net rate increase of one percent or more for
  retail customers.
         (o)  The commission may establish tier 1 and tier 2 [an]
  alternative compliance payments [payment]. An entity that has a
  renewable energy purchase requirement under this section may elect
  to pay the alternative compliance payment instead of applying
  renewable energy credits toward the satisfaction of the entity's
  obligation under this section. [The commission may establish a
  separate alternative compliance payment for the goal of 500
  megawatts of capacity from renewable energy technologies other than
  wind energy.] The tier 1 alternative compliance payment for a
  renewable energy purchase requirement that could be satisfied with
  a renewable energy credit from wind energy may not be less than
  $2.50 per credit or greater than $20 per credit.  The tier 2
  alternative compliance payment for a renewable energy purchase
  requirement that could be satisfied with a tier 2 renewable energy
  credit may not be set above $90 per credit before December 31, 2014;
  $80 per credit before December 31, 2015; $65 per credit before
  December 31, 2016; $45 per credit before December 31, 2017; $40 per
  credit before December 31, 2018; $35 per credit before December 31,
  2019; and $30 per credit before December 31, 2020. [Prior to
  September 1, 2009, an alternative compliance payment under this
  subsection may not be set above $5 per credit.]  In implementing
  this subsection, the commission shall consider:
               (1)  the effect of renewable energy credit prices on
  retail competition;
               (2)  the effect of renewable energy credit prices on
  electric rates;
               (3)  the effect of the alternative compliance payment
  level on the renewable energy credit market; and
               (4)  any other factors necessary to ensure the
  continued development of the renewable energy industry in this
  state while protecting ratepayers from unnecessary rate increases.
         (p)  If the commission suspends the tier 2 renewable energy
  goals under Subsection (a-1), retail electric providers shall
  refund, under the guidance of the commission, all alternative
  compliance payment funds collected to the residential and
  commercial electric customers covered by this subchapter. If the
  commission does not suspend the tier 2 renewable energy goal under
  Subsection (a-1), the alternative compliance payment funds
  collected by the commission shall be used for the purposes of a
  solar rebate program established by the commission.
         SECTION 6.  This Act takes effect September 1, 2011.
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