(a) Purpose. The purposes of this section are to:
(1) Establish a solar renewable portfolio standard
pursuant to Section 53 of House Bill 1500, enacted by the 88th Texas
Legislature, Regular Session, to be phased out by September 1, 2025;
and
(2) Direct the independent organization certified under
PURA §39.151 for the ERCOT region to continue to administer a
renewable energy credit (REC) trading program on a voluntary basis.
(b) Application. This section applies to power generation
companies as defined in §25.5 of this title (relating to Definitions),
and retail entities as defined in subsection (c) of this section.
(c) Definitions.
(1) Compliance period--A calendar year beginning January
1 and ending December 31 in which renewable energy credits are generated.
(2) Compliance premium--A premium awarded by the program
administrator in conjunction with a solar renewable energy credit
that is generated by a renewable energy source that meets the criteria
of subsection (e)(2)(A) of this section. For the purpose of the solar
renewable energy portfolio standard requirements, one compliance premium
is equal to one solar renewable energy credit.
(3) Designated representative--A person authorized
by the owners or operators of a renewable resource to register that
resource with the program administrator. The designated representative
must have the authority to represent and legally bind the owners and
operators of the renewable resource in all matters pertaining to the
renewable energy credit trading program.
(4) Existing facilities--Renewable energy generators
placed in service before September 1, 1999.
(5) Generation offset technology--Any renewable technology
that reduces the demand for electricity at a site where a customer
consumes electricity. An example of this technology is solar water
heating.
(6) Microgenerator--A customer who owns one or more
eligible renewable energy generating units with a rated capacity of
less than one megawatt (1 MW) operating on the customer's side of
the utility meter.
(7) New facilities--Solar renewable energy generators
placed in service on or after September 1, 1999. A new facility includes
the incremental capacity and associated energy from an existing renewable
facility achieved through repowering activities undertaken on or after
September 1, 1999.
(8) Off-grid generation--The generation of renewable
energy in an application that is not interconnected to a utility transmission
or distribution system.
(9) Opt-out notice--Written notice submitted to the
commission by a transmission-level voltage customer.
(10) Program administrator--The entity responsible
for carrying out the administrative responsibilities related to the
REC trading program and the solar renewable portfolio standard as
set forth in this section. In accordance with PURA §39.9113,
the program administrator is the independent organization certified
under PURA §39.151 for the ERCOT region.
(11) REC aggregator--An entity managing the participation
of two or more microgenerators in the REC trading program.
(12) REC offset (offset)--A REC offset represents one
megawatt-hour (MWh) of renewable energy from an existing facility
that is not eligible to earn renewable energy credits or compliance
premiums.
(13) Renewable energy credit (REC)--A REC represents
one MWh of renewable energy that is physically metered and verified
in Texas and meets the requirements set forth in subsection (e)(1)(A)
of this section.
(14) Renewable energy credit account (REC account)--An
account maintained by the program administrator for the purpose of
tracking the production, sale, transfer, purchase, and retirement
of RECs, solar RECs, or compliance premiums by a program participant.
(15) Renewable energy credit trading program (trading
program)--The process of awarding, trading, tracking, and submitting
RECs as a means of meeting the renewable energy requirements set out
in subsection (g) of this section.
(16) Renewable energy resource (renewable resource)--A
resource that produces energy derived from renewable energy technologies.
(17) Renewable energy technology--Any technology that
exclusively relies on an energy source that is naturally regenerated
over a short time and derived directly from the sun, indirectly from
the sun, or from moving water or other natural movements and mechanisms
of the environment. Renewable energy technologies include those that
rely on energy derived directly from the sun, wind, geothermal, hydroelectric,
wave, or tidal energy, or on biomass or biomass-based waste products,
including landfill gas. A renewable energy technology does not rely
on energy resources derived from fossil fuels, waste products from
fossil fuels, or waste products from inorganic sources.
(18) Repowered facility--An existing facility that
has been modernized or upgraded to use renewable energy technology
to produce electricity consistent with this rule.
(19) Retail entity--Municipally-owned utilities, generation
and transmission cooperatives and distribution cooperatives that offer
customer choice, retail electric providers (REPs), and investor-owned
utilities that have not unbundled under PURA Chapter 39.
(20) Settlement period--The period following a compliance
period in which the settlement process for that compliance period
takes place as set forth in subsection (i) of this subsection.
(21) Small producer--A renewable resource that is less
than ten megawatts (10 MW) in size.
(22) Solar renewable energy credit (solar REC)--A REC
representing one MWh of renewable energy that is physically metered
and verified in Texas and meets the requirements set forth in subsection
(e)()(2) of this section.
(23) Solar renewable portfolio standard (solar RPS)
- The amount of solar capacity required in subsection (e)(2) of this
section to implement Section 53 of House Bill 1500 enacted by the
88th Texas Legislature, Regular Session.
(24) Transmission-level voltage customer--A customer
that receives electric service at 60 kilovolts (kV) or higher or that
receives electric service directly through a utility-owned substation
that is connected to the transmission network at 60 kV or higher.
(d) Certification of renewable energy facilities. The
commission will certify all renewable facilities that will produce
either REC offsets, RECs, solar RECs, or compliance premiums for sale
in the trading program. To be awarded REC offsets, RECs, solar RECs,
or compliance premiums, a power generator must complete the certification
process described in this subsection. The program administrator must
not award REC offsets, RECs, solar RECs, or compliance premiums for
energy produced by a power generator before it has been certified
by the commission.
(1) The designated representative of the generating
facility must file an application with the commission on a form approved
by the commission for each renewable energy generation facility. At
a minimum, the application must include the location, owner, technology,
and rated capacity of the facility, and must demonstrate that the
facility meets the resource eligibility criteria in subsection (e)
of this section. Any subsequent changes to the information in the
application must be filed with the commission within 30 days of such
changes.
(2) No later than 30 days after the designated representative
files the certification form with the commission, the commission will
inform both the program administrator and the designated representative
whether the renewable facility has met the certification requirements.
At that time, the commission will either certify the renewable facility
as eligible to receive REC offsets, RECs, solar RECs, or compliance
premiums or describe any insufficiencies to be remedied. If the application
is contested, the time for acting is extended for such time as is
necessary for commission action.
(3) Upon receiving notice of certification of new facilities,
the program administrator will create a REC account for the designated
representative of the renewable resource.
(4) The commission or program administrator may make
on-site visits to any certified facility, and the commission will
decertify any facility if it is not in compliance with the provisions
of this subsection.
(5) A decertified renewable generator may not be awarded
RECs, solar RECs, or compliance premiums. However, any RECs, solar
RECs, REC offsets, or compliance premiums awarded by the program administrator
and transferred to a retail entity prior to the decertification remain
valid.
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