By: King, et al. 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 the ERCOT power   region [this state] after January 1, 2024 [2000], be sourced from   dispatchable generation [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 rights to dispatchable   generation capacity [using natural gas technologies] shall   purchase sufficient dispatchable generation [natural gas energy]   credits to satisfy the requirements of this section [by holding   natural gas energy credits in lieu of capacity from 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 must   [shall]:                (1)  describe how the commission will calculate   [establish] the [minimum] annual dispatchable [natural gas]   generation requirement for each power generation company,   municipally owned utility, and electric cooperative operating in   the ERCOT power region [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 implemented [operated] so as   to maximize reliability [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 the   ERCOT power region [this state] that have the greatest economic   potential for capture and development of this state's   environmentally beneficial natural gas resources.          (d)  On or before January 1, 2025, the commission shall   activate the dispatchable generation credits trading program   established by this section if the commission determines that   dispatchable generation may provide less than 55 percent of all new   generating capacity installed in the ERCOT power region after   January 1, 2024. Not later than the 180th day after the date of the   program's activation, the commission by rule shall determine the   conditions for compliance and penalties for noncompliance for each   power generation company, municipally owned utility, and electric   cooperative subject to the program. The commission may adopt rules   providing for alternative compliance payments [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)  In this section, "dispatchable generation" ["natural   gas technology"] means generating technologies other than   technologies considered non-dispatchable under Section 39.159(a),   as added by Chapter 426 (S.B. 3), Acts of the 87th Legislature,   Regular Session, 2021 [any technology that exclusively relies on   natural gas as a primary fuel source].          (f)  The independent organization certified under Section   39.151 for the ERCOT power region shall establish a tracking system   to award dispatchable generation credits to new dispatchable   generation facilities that meet eligibility requirements   established by the commission. Each megawatt of installed   dispatchable generation capacity energized after January 1, 2024,   is eligible for one dispatchable generation credit.          (g)  Not later than September 15 of each year, the   independent organization certified under Section 39.151 for the   ERCOT power region shall file with the commission a report on all   generating facilities energized in the ERCOT power region during   the prior year that includes a calculation of whether the prior   year's installed dispatchable generation capacity is in compliance   with this section.          (h)  Not later than January 15 of each year, the commission   shall notify each power generation company, municipally owned   utility, and electric cooperative of the power generation   company's, municipally owned utility's, or electric cooperative's   dispatchable generation credits requirement for the prior year, if   any.          (i)  Each power generation company, municipally owned   utility, or electric cooperative shall retire sufficient   dispatchable generation credits to meet the power generation   company's, municipally owned utility's, or electric cooperative's   dispatchable generation credits requirement not later than an   annual deadline established by the commission.          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.