Bill Text: TX SB2015 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the legislature's goals for electric generation capacity in this state.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Engrossed) 2023-04-17 - Referred to State Affairs [SB2015 Detail]

Download: Texas-2023-SB2015-Introduced.html

---

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.