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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of electricity from certain non-dispatchable |
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generation facilities in the ERCOT power region. |
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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 Section 39.904(a), the |
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commission shall find that the facilities are used and useful to the |
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utility in providing service for purposes of this section and are |
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prudent and includable in the rate base, regardless of the extent of |
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the utility's actual use of the facilities. |
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SECTION 2. Section 39.159, Utilities Code, as added by |
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Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular |
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Session, 2021, is amended by adding Subsection (d) to read as |
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follows: |
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(d) Notwithstanding any other law, the commission shall |
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prohibit the sale of electric energy from a non-dispatchable |
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generation facility at wholesale in the ERCOT power region after |
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January 1, 2030. This subsection does not prohibit a sale of |
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electricity under Section 39.914 or 39.916 or another sale of |
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electricity from distributed renewable generation. |
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SECTION 3. 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 4. Sections 39.904(a), (j), (k), and (n), Utilities |
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Code, are amended to read as follows: |
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(a) It is the intent of the legislature that by January 1, |
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2015, an additional 5,000 megawatts of generating capacity from |
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renewable energy technologies will have been installed in this |
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state. The cumulative installed renewable capacity in this state |
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shall total 5,880 megawatts by January 1, 2015[, and the commission |
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shall establish a target of 10,000 megawatts of installed renewable |
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capacity by January 1, 2025]. The cumulative installed renewable |
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capacity in this state shall total 2,280 megawatts by January 1, |
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2007, 3,272 megawatts by January 1, 2009, 4,264 megawatts by |
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January 1, 2011, 5,256 megawatts by January 1, 2013, and 5,880 |
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megawatts by January 1, 2015. Of the renewable energy technology |
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generating capacity installed to meet the goal of this subsection |
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after September 1, 2005, the commission shall establish a target of |
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having at least 500 megawatts of capacity from a renewable energy |
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technology other than a source using wind energy. |
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(j) The commission, after consultation with each |
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appropriate independent organization, electric reliability |
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council, or regional transmission organization, shall file a report |
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with the legislature not later than December 31, 2024 [of each |
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even-numbered year]. The report must include: |
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(1) an evaluation of the commission's implementation |
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of competitive renewable energy zones; |
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(2) the estimated cost of transmission service |
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improvements needed for each competitive renewable energy zone; and |
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(3) an evaluation of the effects that additional |
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renewable generation has on system reliability and on the cost of |
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alternatives to mitigate the effects. |
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(k) The commission and the independent organization |
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certified for ERCOT shall study the need for increased transmission |
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and generation capacity throughout this state and report to the |
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legislature the results of the study and any recommendations for |
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legislation. The report must be filed with the legislature [not |
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later than December 31 of each even-numbered year and may be filed] |
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as a part of the report required by Subsection (j). |
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(n) Notwithstanding any other provision of law, before |
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January 1, 2030, the commission shall: |
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(1) have the authority to cap the price of renewable |
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energy credits; |
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(2) [and may] suspend the goal [contained] in |
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Subsection (a) [if such suspension is necessary] to protect the |
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reliability and operation of the grid; and |
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(3) abolish all programs and terminate any payments or |
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credits required under this section. |
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SECTION 5. The changes in law made by this Act apply only to |
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a contract involving the sale of electric energy from a |
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non-dispatchable generation facility entered into on or after the |
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effective date of this Act. A contract involving the sale of |
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electric energy from a non-dispatchable generation facility |
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entered into before the effective date of this Act is governed by |
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the law in effect on the date the contract was entered into, and the |
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former law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2023. |