Bill Text: TX SB931 | 2015-2016 | 84th Legislature | Engrossed
Bill Title: Relating to the goal for renewable energy and competitive renewable energy zones.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2015-05-05 - Referred to State Affairs [SB931 Detail]
Download: Texas-2015-SB931-Engrossed.html
By: Fraser, Campbell | S.B. No. 931 |
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relating to the goal for renewable energy and competitive renewable | ||
energy zones. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. 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 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 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. The goal and | ||
targets established under this subsection terminate on December 31, | ||
2015. | ||
(b) The commission shall establish a renewable energy | ||
credits trading program. Before December 31, 2015, 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, 2015, 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 for ERCOT, 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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(h-1) The commission may not designate a new competitive | ||
renewable energy zone after January 1, 2015. | ||
(h-2) After January 1, 2015, the commission may not approve | ||
additional transmission facilities in a previously approved | ||
competitive renewable energy zone unless: | ||
(1) the facilities have been evaluated through the | ||
planning process described by Subsection (h); or | ||
(2) the addition of the facilities: | ||
(A) will cost not more than $130 million; and | ||
(B) involves adding a second circuit to existing | ||
single circuit lines and associated electrical equipment | ||
identified as necessary by the independent organization certified | ||
for ERCOT in a system planning report issued before May 1, 2014. | ||
(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, 2016, 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 2. The recovery of a transmission facility | ||
investment made by an electric utility to serve a competitive | ||
renewable energy zone is governed by the law in effect on the date | ||
the facility is placed in service, regardless of whether the | ||
facility is completed before, on, or after the effective date of | ||
this Act, and that law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |