Office of House Bill AnalysisH.B. 78
By: Gallego
State Affairs


Texas currently produces most of its electricity through the burning of
fossil fuels such as coal, petroleum, and natural gas.  The finite nature
of these resources suggests that a transition to renewable energy resources
might benefit the producers and consumers of electricity.  H.B. 78
facilitates that transition by creating a credit program for electricity
production from renewable resources and establishing a schedule which
guides electricity producers to a more diverse resource portfolio.  


It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Public Utility Commission in
SECTION 2 (Section 34.0055, Utilities Code) of this bill. 


SECTION 1.  Amends Section 34.003(c), Utilities Code, to provide that the
mix of resources, rather than an appropriate and reliable mix, under
Subsection (b)(4) (regarding the cost of an electric utility's integrated
resource plan), must, rather than may, include a portfolio of
cost-effective sources of power. 

SECTION 2.  Amends Subchapter A, Chapter 34, Utilities Code, by adding
Section 34.0055, as follows: 

Sec. 34.0055.  RENEWABLE RESOURCES REQUIREMENT.  (a)  Requires the Public
Utility Commission of Texas (commission), by rule, to establish a renewable
generation credit program which requires each generating electric utility
that sells power to another entity to submit renewable generation credits
to the commission.  Sets forth the amounts of the renewable generation

(b)  Requires the commission to issue to a generating electric utility that
sells power to another entity one renewable generation credit for each
megawatt of power the utility generates using renewable resources. 

(c)  Authorizes an electric utility that possesses a renewable generation
credit to convey the credit to another utility that is subject to the
credit program. 

(d)  Requires the commission, by rule, to prescribe procedures governing
the issuance and submission of renewable generation credits and the
recording and monitoring of credits conveyed under the program.   

(e)  Authorizes the commission to charge a fee to a person who submits or
conveys renewable generation credits, in order to cover the administrative
costs of the credit program. 

SECTION 3.  Requires the commission to submit a report not later than
January 15, 2005, to the 79th Legislature on the use of renewable resources
for electric generation in this state, the progress of electric utilities
under this Act, and the feasibility of utilities meeting the requirements
of Section  34.0055, Utilities Code, by January 1, 2010, without
threatening the reliability of the state's electric power system. 

SECTION 4.  Effective date:  September 1, 1999.

SECTION 5.  Emergency clause.