PART 1. RAILROAD COMMISSION OF TEXAS
CHAPTER 15. ALTERNATIVE FUELS RESEARCH AND EDUCATION DIVISION
SUBCHAPTER B. PROPANE CONSUMER REBATE PROGRAM
16 TAC §15.115
The Railroad Commission of Texas proposes amendments
to §15.115, relating to Availability of Funds, to add a reference
to Texas Natural Resources Code, §113.2435, as amended by House
Bill 1731, 81st Texas Legislature, Regular Session (2009). Section
113.2435 concerns money available for consumer incentive or rebate
programs for alternatively fueled appliances or equipment. HB 1731
adds new subsection (d) to read as follows: "(d) Notwithstanding Subsection
(c)(5), the commission shall make available for rebates during a fiscal
year the entire amount of money made available for rebates during
the preceding fiscal year that was not spent during the preceding
fiscal year. The amount of money made available for rebates during
the preceding fiscal year that was not spent during the preceding
fiscal year is not counted in determining the limitation on the proportion
of the fund usable for the rebate program during a fiscal year." The
bill requires money made available for consumer rebate programs in
a fiscal year, but not spent, to be carried forward and made available
for rebates the next fiscal year, notwithstanding the 50 percent limit
set out in §113.2435(c)(5). In §15.115, the Commission proposes
to add a reference to Natural Resources Code, §113.2435(d).
Dan Kelly, Director, Alternative Fuels Education and Research Division,
has determined that for the first five years that the proposed amendment
will be in effect, there will be no fiscal implications for state
or local governments as a result of enforcing or administering the
amendment. New §113.2435(d), Natural Resources Code, and the
proposed amendment to §15.115 may result in some reallocation
of funds among the division's programs in some fiscal years, but will
not affect overall revenue or program costs.
Mr. Kelly has also determined that there will be no cost of compliance
with the proposed amendment for individuals, small businesses, or
micro-businesses. Participation in all of the division's consumer
rebate and incentive programs is voluntary, and the proposed changes
would require no additional expenditures of time or money by individuals
and companies choosing to participate in the programs.
Mr. Kelly has also determined that the public benefit anticipated
as a result of enforcing or administering the section as amended will
be the continued availability of funds for the consumer rebate program.
The 80th Legislature (2007) adopted HB 3430, which amended Chapter
2006 of the Texas Government Code. As amended, Texas Government Code, §2006.002,
relating to Adoption of Rules with Adverse Economic Effect, requires
that as a part of the rulemaking process, a state agency prepare an
Economic Impact Statement that assesses the potential impact of a
proposed rule on small businesses and micro-businesses, and a Regulatory
Flexibility Analysis that considers alternative methods of achieving
the purpose of the rule if the proposed rule will have an adverse
economic effect on small businesses or micro-businesses. The Commission
has determined that the proposed amendment will not have an adverse
economic effect on small businesses or micro-businesses, and therefore
the analysis described in Texas Government Code, §2006.002, is
not required.
Comments on the proposal may be submitted to Rules Coordinator,
Office of General Counsel, Railroad Commission of Texas, P.O. Box
12967, Austin, Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.php;
or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission
will accept comments until 5:00 p.m. on Monday, August 17, 2009, which
is 31 days after publication in the Texas Register.
The Commission encourages all interested persons
to submit comments no later than the deadline. The Commission cannot
guarantee that comments submitted after the deadline will be considered.
For further information, call Mr. Kelly at (512) 463-7291 or AFRED
Marketing and Public Education Director Heather Ball at (512) 463-7359.
The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.php.
The Commission proposes the amendment under the Texas Natural Resources
Code §113.241, which authorizes the Commission to adopt all necessary
rules relating to activities regarding the use of LPG and other environmentally
beneficial alternative fuels; §113.243, which authorizes the
Commission to research, develop, and implement marketing, advertising,
and informational programs relating to alternative fuels to make alternative
fuels more understandable and readily available to consumers; and §113.2435,
which authorizes the Commission to establish consumer rebate programs
for purchasers of appliances and equipment fueled by LP-gas or other
environmentally beneficial alternative fuels for the purpose of achieving
energy conservation and efficiency and improving the quality of air
in this state, as amended by HB 1731, 81st Texas Legislature (2009).
Statutory authority: Texas Natural Resources Code, §§113.241,
113.243, and 113.2435.
Cross-reference to statute: Texas Natural Resources Code, Chapter 113.
Issued in Austin, Texas on June 30, 2009.
§15.115.Availability of Funds.
The commission may not use more than 50% of the funds available
in the Alternative Fuels Research and Education Fund Account for purposes
of consumer incentive or rebate programs except as provided in
Texas Natural Resources Code, §113.2435(d). If funds become
unavailable during a program year, the commission may carry over applications
until the next program year.
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office of the Secretary of State on June 30, 2009.
TRD-200902702
Mary Ross McDonald
Managing Director
Railroad Commission of Texas
Earliest possible date of adoption: August 16, 2009
For further information, please call: (512) 475-1295
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER H. ELECTRICAL PLANNING
DIVISION 1. RENEWABLE ENERGY RESOURCES AND USE OF NATURAL GAS
16 TAC §25.174
The Public Utility Commission of Texas (commission)
proposes an amendment to §25.174, relating to Competitive Renewable
Energy Zones (CREZs). The amendment will implement Public Utility
Regulatory Act (PURA) §39.904(g), which directs the commission
to consider the level of financial commitment by renewable generators
for each CREZ in determining whether to grant a certificate of convenience
and necessity (CCN). The amendment addresses the level of financial
commitment that renewable generators must satisfy before the commission
will process the CCN applications for transmission facilities to serve
certain CREZs previously designated by the commission, and deletes
language that would be inconsistent with the changes resulting from
the amendment. In addition, the amendment clarifies the conditions
under which the commission may initiate a proceeding to address the
issue of excess development in a CREZ.
For the three southern CREZs, McCamey, Central, and Central West,
the commission has determined that the amount of renewable generation
already developed in those CREZs and the amount of additional renewable
generation currently under development demonstrate sufficient financial
commitment in those zones. The commission finds that installed generating
capacity and continuing construction of new generation are the best
measures of wind-generator financial commitment. The commission believes
that generators have already proven that new generation development
has or will occur to use the new transmission lines built to these
CREZs.
In reaching this conclusion, the commission has relied on Electric
Reliability Council of Texas (ERCOT) data about installed renewable
generation and signed interconnection agreements. In Docket Number
33672, the commission designated the McCamey, Central, and West Central
zones as CREZs to be served by new transmission facilities necessary
to support generation capacities of 1859, 3047, and 1063 megawatts,
respectively. As of June 1, 2009, those three CREZs already had 906,
5221, and 1012 megawatts of installed renewable generation. Additionally,
those three CREZs already had interconnection agreements for 300,
987, and 716 megawatts of new renewable generation. The developers'
interest in these three southern CREZs is sufficient to satisfy the
three tiered financial commitment test proposed in this amendment
to §25.174. Accordingly, the commission believes the financial
commitment requirement has already been met for the southern CREZs.
For the two CREZs in the Texas Panhandle, Panhandle A and Panhandle
B, the commission proposes a tiered approach to evaluate whether renewable
generators have made sufficient financial commitments in those CREZs
to warrant the processing of CCNs for the transmission facilities
identified in Docket Number 33672 for the Panhandle CREZs. Project
Number 34577 is assigned to this proceeding. The amendment is a competition
rule subject to judicial review as specified in PURA §39.001(e).
Danielle Jaussaud, Director of Market Analysis, Competitive Markets
Division, has determined that for each year of the first five-year
period the amendment is in effect there will be no fiscal implication
for state or local government as a result of enforcing or administering
the amendment.
Ms. Jaussaud has determined that for each year of the first five
years the amendment is in effect the public benefit anticipated as
a result of enforcing the amendment will be to increase the amount
of electricity delivered to customers from renewable generation resources
in Texas, consistent with the goals that have been established in
PURA. The specific benefits include increasing the use of a resource
with no fuel cost by the state's electricity customers, reducing the
use of generation technologies that result in air emissions, and diversifying
the state's portfolio of electric generating resource.
There will be no adverse economic effect on small businesses or
micro-businesses as a result of enforcing this amendment. There may
be economic costs to persons who choose to provide evidence of the
financial commitment pursuant to this amendment. The amendment will
ensure that the construction of transmission facilities needed to
deliver electric output from renewable energy technologies to customers
will be done in a manner that is most beneficial and cost-effective
to customers.
Ms. Jaussaud has also determined that for each year of the first
five years the amendment is in effect, there will be no impact on
local economies as a result of implementing or administering this
amendment, and therefore, no local employment impact statement is
required under Administrative Procedure Act, Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking,
pursuant to the Administrative Procedure Act, Texas Government Code §2001.029,
at the commission's offices located in the William B. Travis Building,
1701 North Congress Avenue, Austin, Texas 78701 on Tuesday, August
11, 2009, at 10:00 a.m.
Initial comments on the amendment may be submitted to the Filing
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 20 days after publication.
Reply comments may be submitted within 31 days after publication.
Sixteen copies of comments on the amendment are required to be filed
pursuant to §22.71(c) of this title. Comments should be organized
in a manner consistent with the organization of the amended rule.
The commission invites specific comments regarding the costs associated
with, and benefits that will be gained by, implementation of the amendment.
The commission will consider the costs and benefits in deciding whether
to adopt the amendment. The commission also invites comments on the
following question:
Should a requirement that renewable energy developers post a security
deposit be added to any Tier of the proposed three-Tier test to establish
financial commitment in the Panhandle CREZs? If so, how should the
amount be determined? What procedure should govern the posting of
the deposit? Should the deposit be posted with ERCOT or with a transmission
service provider (TSP) designated to build transmission facilities
in or to the Panhandle CREZs? What event should trigger a return of
the deposit?
All comments should refer to Project Number 34577.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §§14.001, 14.002, 39.101(b)(3),
39.151, and 39.904 (Vernon 2007 & Supplement 2008) (PURA). Section
14.001 provides the commission the general power to regulate and supervise
the business of each public utility within its jurisdiction and to
do anything specifically designated or implied by PURA that is necessary
and convenient to the exercise of that power and jurisdiction; §14.002
provides the commission with the authority to adopt and enforce rules
reasonably required in the exercise of its powers and jurisdiction; §39.101(b)(3)
provides that a customer is entitled to have access to providers of
energy generated by renewable energy resources; §39.151 provides
the commission with authority over electricity dispatch and grid reliability
in ERCOT and over the accounting for the production and delivery of
electricity among generators and all other market participants in
ERCOT; and §39.904 provides the commission with the authority
to adopt rules necessary to administer and enforce the programs to
promote the development of renewable energy technologies and requires
the commission to designate competitive renewable energy zones and
develop a plan to construct transmission capacity necessary to deliver
electric output from renewable energy technologies to electricity
customers in a manner that is most beneficial and cost-effective to
the customers.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.001,
14.002, 39.101, 39.151, and 39.904.
§25.174.Competitive Renewable Energy Zones.
(a) (No change.)
(b) Level of financial commitment by generators for
designating a CREZ.
(1) - (2) (No change.)
(c) Plan to develop transmission capacity.
(1) - (3) (No change.)
(d) Certificates of convenience and necessity.
No later than one year after an order by the commission designating
a CREZ, the TSP or TSPs selected to provide transmission service in
or to a CREZ shall file applications for all required certificates
of convenience and necessity (CCNs) for transmission facilities identified
by the commission in the CREZ order as most beneficial and cost-effective
to the customers. The commission may allow additional time for a TSP
to file an application upon a showing of good cause by the TSP. The
commission may establish a filing schedule if a CREZ order requires
numerous CCN applications. [
(1) A CCN application for a transmission project
intended to serve a CREZ need not address the criteria in PURA §37.056(c)(1)
and (2). [
(2) In evaluating the CCN applications, the commission
shall consider the level of financial commitment by renewable generators.
Existing generation and generation under construction in the McCamey,
Central, and Central West CREZs approved by the commission in Docket
Number 33672 satisfy the financial commitment requirement for approval
of CCN applications for transmission facilities approved by the commission
related to those zones. [
(3) The TSP may propose
modifications to the transmission improvements described in the CREZ
order if such improvements would reduce the cost of transmission or
increase the amount of generating capacity that transmission improvements
for the CREZ can accommodate. The commission may direct ERCOT to review
modifications proposed by the TSP.
(4) Notwithstanding paragraph
(2) of this subsection, for the Panhandle A and Panhandle B CREZs
approved by the commission in Docket Number 33672, commission staff
shall initiate one or more proceedings for the commission to determine
the level of financial commitment by renewable generators. If the
commission determines that the financial commitments for the Panhandle
A or B CREZ satisfy paragraph (5) of this subsection, the commission
shall process the CCN applications for transmission facilities related
to that CREZ in accordance with this section and §25.101 of this
title (relating to Certification Criteria.) If the commission determines
that the financial commitments for one of these CREZs do not satisfy
paragraph (5) of this subsection, the commission shall order that
CCN applications for CREZ transmission facilities related to that
CREZ not be filed. If at a later date the commission determines, in
another proceeding initiated pursuant to this paragraph, that paragraph
(5) of this subsection has been satisfied, the commission shall establish
a new filing schedule for the applications.
(5) The commission will
permit a CCN application to proceed if it concludes that the level
of financial commitments for new CREZ generation capacity made by
renewable generators for the relevant CREZ meets or exceeds one of
the Tier standards in this paragraph. Within a tier, an existing or
planned renewable generation project cannot be counted more than once.
(A) The Tier 1 financial commitment threshold
will be satisfied if the sum of generating capacity from the following
meets or exceeds 50% of the generating capacity for the CREZ as ordered
by the commission:
(i) existing generation in the CREZ; and
(ii) generation projects under construction
that will be operational within 6 months in the CREZ.
(B) The Tier 2 financial commitment threshold
will be satisfied if the sum of generating capacity from the following
meets or exceeds 75% of the generating capacity for the CREZ as ordered
by the commission:
(i) existing generation in the CREZ;
(ii) generation projects under construction
that will be operational within 6 months in the CREZ;
(iii) planned projects with signed interconnection
agreements with a transmission service provider that has been designated
to construct and operate transmission facilities for the CREZ;
(iv) capacity represented by purchases of
surface rights to land for at least 20 years in a CREZ as calculated
at a presumptive conversion factor of 60 acres per megawatt; and
(v) capacity represented by a non-utility
entity's contractual commitments to build and own transmission facilities
dedicated to delivering the output of renewable energy resources in
the CREZ to the transmission system of a transmission service provider
that has been designated to operate transmission facilities for the CREZ.
(C) The Tier 3 financial commitment threshold
will be satisfied if the sum of generating capacity from the following
meets or exceeds 100% of the generating capacity for the CREZ as ordered
by the commission:
(i) existing generation in the CREZ;
(ii) generation projects under construction
that will be operational within 6 months in the CREZ;
(iii) planned projects with signed interconnection
agreements with a transmission service provider that has been designated
to construct and operate transmission facilities for the CREZ;
(iv) capacity represented by purchases of
surface rights to land for at least 20 years in a CREZ as calculated
at a presumptive conversion factor of 60 acres per megawatt;
(v) capacity represented by a non-utility
entity's contractual commitments to build and own transmission facilities
dedicated to delivering the output of renewable energy resources in
the CREZ to the transmission system of a transmission service provider
that has been designated to operate transmission facilities for the
CREZ; and
(vi) capacity represented by applications
for interconnection agreements with a transmission service provider
that has been designated to operate transmission facilities for the
CREZ.
(e) Excess [
This agency hereby certifies that the proposal has
been reviewed by legal counsel and found to be within the agency's
legal authority to adopt.
Filed with the Office of the Secretary of State on July 6, 2009.
TRD-200902769
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: August 16, 2009
For further information, please call: (512) 936-7211
DIVISION 2. INDEPENDENT ORGANIZATIONS
PART 2. PUBLIC UTILITY COMMISSION OF TEXAS[(4) No later than one
year after an order by the commission designating a CREZ, the TSP
or TSPs selected to provide transmission service in or to a CREZ shall
file applications for all required certificates of convenience and
necessity (CCNs) for transmission facilities identified by the commission
in the CREZ order as most beneficial and cost-effective to the customers.
The commission may allow additional time for a TSP to file an application
upon a showing of good cause by the TSP. The commission may establish
a filing schedule if a CREZ order requires numerous CCN applications.]
[(5) A CCN application
for a transmission project intended to serve a CREZ need not address
the criteria in PURA §37.056(c)(1) and (2).]
[(6) Within 45 days of
an application for a CCN for transmission improvements filed pursuant
to the order designating the zone a CREZ, each developer for that
CREZ shall post a letter of credit or other collateral to an amount
equal to 10% of the developer's pro rata share of the estimated capital
cost of the transmission improvements covered by the CREZ order, including
the TSP's cost of preparing its CCN application. If any developer
fails to deposit the required funds, the commission may take appropriate
action, including, but not limited to, the following: reconsideration
of its CREZ designation; dismissal of the TSP's CCN application; seeking
another developer to step into the shoes of a defaulting developer;
ordering the return of all deposits to developers who made adequate
deposits; ordering the application of the defaulting developer's deposits
toward the costs incurred by TSPs pertaining to planning and CCN proceedings
for the transmission facilities covered by the order designating the
zone a CREZ; and ordering the return of any remaining balance to the
defaulting developer.]
[(7) In evaluating the
CCN applications, the commission shall consider the level of financial
commitment by generators. The TSP may propose modifications to the
transmission improvements described in the CREZ order if such improvements
would reduce the cost of transmission or increase the amount of generating
capacity that transmission improvements for the CREZ can accommodate.
The commission may direct ERCOT to review modifications proposed by
the TSP.]
Obligation to take transmission service in a CREZ.]
A developer that deposited funds in accordance
with subsection (b)(1) or (c)(6) of this section shall take transmission
service in the CREZ no later than one year after the TSP notifies
it that the transmission system is capable of accommodating the developer's
renewable energy facility, unless the commission approves an extension
of time. If the developer does not take transmission service as required,
the developer shall be considered to have forfeited, for the benefit
of the TSP, all collateral, letters of credit or funds it has deposited.]
If the developer completes the
generation facilities and begins delivering energy from the CREZ within
one year of the completion of the transmission improvements, the TSP
and ERCOT shall refund to the developer all collateral, letters of
credit or funds it has deposited.]
Disincentives for excess]
development in a CREZ. If the aggregate level of renewable energy
capacity for which transmission service is requested for a CREZ exceeds
the maximum level of renewable capacity specified in the CREZ order,
and if the commission determines that the security constrained economic
dispatch mechanism used in the power region to establish a priority
in the dispatch of CREZ resources is insufficient to resolve the congestion
caused by excess development, the commission may initiate a
proceeding and may consider limiting [
limit] interconnection to and/or establishing [
establish] dispatch priorities regarding the transmission system in the CREZ,
and identifying [identify] the developers whose
projects may interconnect to the transmission system in the CREZ under
special protection schemes. [Priority in interconnecting to the
transmission system may be based on a number of factors, including
financial commitments of the developers in accordance with subsections
(b) and (c) of this section. In determining such priority, the commission
may also consider the progress that a developer has made in obtaining
the transmission studies required for a new generator interconnection
as indications of financial commitment.]
SUBCHAPTER O. UNBUNDLING AND MARKET POWER