Bill Text: TX SB1752 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the generation and transmission of electricity.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Business & Commerce [SB1752 Detail]
Download: Texas-2023-SB1752-Introduced.html
88R10973 JXC-D | ||
By: Hall | S.B. No. 1752 |
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relating to the generation and transmission of electricity. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended | ||
by adding Section 312.0022 to read as follows: | ||
Sec. 312.0022. PROHIBITION ON ABATEMENT OF TAXES ON CERTAIN | ||
ELECTRIC GENERATING FACILITY PROPERTY. (a) In this section, | ||
"electric generating facility" means an electric generating | ||
facility described by Section 39.166(a), Utilities Code. | ||
(b) The governing body of a taxing unit may not enter into an | ||
agreement under this chapter to exempt from taxation a portion of | ||
the value of real property on which an electric generating facility | ||
is located or is planned to be located during the term of the | ||
agreement, or of tangible personal property that is located or is | ||
planned to be located on the real property during that term. | ||
SECTION 2. Section 36.053, Utilities Code, is amended by | ||
adding Subsection (e) to read as follows: | ||
(e) Notwithstanding Subsection (d), after September 1, | ||
2023, the commission may not authorize the recovery in the rate base | ||
of an electric utility or a transmission and distribution utility | ||
of investments made for transmission or transmission-related | ||
facilities in a competitive renewable energy zone. | ||
SECTION 3. Section 39.001, Utilities Code, is amended by | ||
amending Subsection (a) and adding Subsection (d-1) to read as | ||
follows: | ||
(a) The legislature finds that the production and sale of | ||
electricity is not a monopoly warranting regulation of rates, | ||
operations, and services and that the public interest in | ||
competitive electric markets requires that, except for | ||
transmission and distribution services and for the recovery of | ||
stranded costs, generation capacity and electric services and their | ||
prices should be determined by customer choices and the normal | ||
forces of competition. As a result, this chapter is enacted to | ||
protect the public interest during the transition to and in the | ||
establishment of a fully competitive electric power industry. | ||
(d-1) The legislature finds that the amount of installed | ||
generation capacity is best determined by investor, generator, and | ||
customer choices through the normal forces of competition. As a | ||
result, except as provided by Sections 39.152-39.158 and | ||
notwithstanding any other law, a regulatory authority may not | ||
mandate or otherwise regulate the amount of installed generation | ||
capacity or require a surplus or reserve of installed generation | ||
capacity above actual or forecasted levels of load. | ||
SECTION 4. Subchapter D, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.166 to read as follows: | ||
Sec. 39.166. PARTICIPATION IN MARKET BY CERTAIN GENERATING | ||
FACILITIES. (a) The commission by rule shall require each electric | ||
cooperative, power generation company, or exempt wholesale | ||
generator that sells electric energy at wholesale in the ERCOT | ||
power region and has received a federal tax credit provided under 26 | ||
U.S.C. Section 45 or 48 to notify the commission of the tax credit. | ||
(b) The commission and the independent organization | ||
certified under Section 39.151 for the ERCOT power region shall | ||
adopt rules and protocols that: | ||
(1) prohibit an entity described by Subsection (a) | ||
from offering electric energy for wholesale in the ERCOT power | ||
region at a price below $27.50 per megawatt hour; | ||
(2) prohibit an entity described by Subsection (a) | ||
from being reimbursed for the costs of interconnecting a new | ||
generation facility; and | ||
(3) notwithstanding Chapter 35, incorporate marginal | ||
losses in locational marginal pricing for electric energy sold from | ||
a generating facility by an entity described by Subsection (a). | ||
(c) The commission by rule shall require the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region to: | ||
(1) impose a periodic fee on each entity described by | ||
Subsection (a) that uses transmission service in a competitive | ||
renewable energy zone; and | ||
(2) regularly disburse the fee revenue to each | ||
electric utility or transmission and distribution utility | ||
described by Section 36.053(e) to provide for the recovery of the | ||
utility's transmission facility investment described by Section | ||
36.053(e). | ||
(d) The disbursements described by Subsection (c)(2) must | ||
be made on a pro rata basis according to the amount of investment to | ||
be recovered. | ||
SECTION 5. Section 39.904, Utilities Code, is amended by | ||
amending Subsections (a), (b), (c), (h), (j), and (o) and adding | ||
Subsections (h-1) and (h-2) 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 | ||
renewable energy technologies will have been installed in this | ||
state. The cumulative installed renewable capacity in this state | ||
shall total 5,880 megawatts by [ |
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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. The goal and | ||
targets established under this subsection terminate on December 31, | ||
2023. | ||
(b) The commission shall establish a renewable energy | ||
credits trading program. Before December 31, 2023, a [ |
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electric provider, municipally owned utility, or electric | ||
cooperative that does not satisfy the requirements of Subsection | ||
(a) 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. On | ||
or after December 31, 2023, a retail electric provider shall | ||
purchase sufficient renewable energy credits to verify any | ||
marketing claims the provider makes related to the content of | ||
renewable energy, as determined by the commission. | ||
(c) 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 requirement prescribed by | ||
Subsection (a); and | ||
(2) specify reasonable performance standards that all | ||
renewable capacity additions must meet to earn renewable energy | ||
credits [ |
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(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. | ||
(h) The commission, in consultation with the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region, shall plan for transmission needs related to the | ||
incorporation of renewable energy in a manner consistent with the | ||
planning process for other types of generation resources, including | ||
by considering in the planning process [ |
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the factors provided by Section 37.056 [ |
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(h-1) The commission may not designate a new competitive | ||
renewable energy zone after September 1, 2023. | ||
(h-2) After September 1, 2023, the commission may not | ||
approve additional transmission facilities in a previously | ||
approved competitive renewable energy zone unless the facilities | ||
have been evaluated through the planning process described by | ||
Subsection (h). | ||
(j) The commission, after consultation with each | ||
appropriate independent organization, electric reliability | ||
council, or regional transmission organization, shall file a report | ||
with the legislature not later than December 31 of each | ||
even-numbered year. The report must include[ |
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renewable generation has on system reliability and on the cost of | ||
alternatives to mitigate the effects. | ||
(o) The commission may establish an alternative compliance | ||
payment to meet the goal established by Subsection (a) before its | ||
termination. 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 that an entity | ||
may use until January 1, 2024, to meet that goal. The 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. 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. | ||
SECTION 6. Section 39.159, Utilities Code, as added by | ||
Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular | ||
Session, 2021, is repealed. | ||
SECTION 7. Section 312.0022, Tax Code, as added by this Act, | ||
applies only to an agreement entered into under Chapter 312, Tax | ||
Code, on or after the effective date of this Act. | ||
SECTION 8. This Act takes effect September 1, 2023. |