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.