Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter H - ELECTRICAL PLANNING
Division 1 - RENEWABLE ENERGY RESOURCES AND USE OF NATURAL GAS
Section 25.173 - Renewable Energy Credit Program
Universal Citation: 16 TX Admin Code § 25.173
Current through Reg. 50, No. 13; March 28, 2025
(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.
(6) Participants that were registered and
certified to participate in the trading program prior to the effective date of
this rule continue to be registered and certified under this subsection and are
not required to re-register or be recertified to participate in the trading
program.
(e) Renewable energy credits, solar renewable energy credits, and compliance premiums.
(1) Renewable energy credits (RECs).
(A) Facilities eligible for producing RECs in
the trading program. For a renewable facility to be eligible to produce RECs
for the trading program it must be either a new facility, a small producer, or
a repowered facility as defined in subsection (c) of this section and must also
meet the requirements of this subsection.
(i)
A renewable energy resource must not be ineligible under subparagraph (B) of
this paragraph and must be certified under subsection (d) of this
section.
(ii) For a renewable
energy technology that requires fossil fuel, the facility's use of fossil fuel
must not exceed 25.0% of the total annual fuel input on a British thermal unit
(BTU) or equivalent basis.
(iii)
For a renewable energy technology that requires the use of fossil fuel that
exceeds 2.0% of the total annual fuel input on a BTU or equivalent basis, RECs
can only be earned on the renewable portion of the production. A renewable
energy resource using a technology described by this clause must comply with
the following requirements:
(I) A meter must
be installed and periodic tests of the heat content of the fuel must be
conducted to measure the amount of fossil fuel input on a British thermal unit
(BTU) or equivalent basis that is used at the facility;
(II) The renewable energy resource must
calculate the electricity generated by the unit in MWh, based on the BTUs (or
equivalent) produced by the fossil fuel and the efficiency of the renewable
energy resource, subtract the MWh generated with fossil fuel input from the
total MWh of generation and report the renewable energy generated to the
program administrator;
(III) The
renewable energy resource must report the generation to the program
administrator in the measurements, format, and frequency prescribed by the
program administrator, which may include a description of the methodology for
calculating the non-renewable energy produced by the resource; and
(IV) The renewable energy resource is subject
to audit to verify the accuracy of the data submitted to the program
administrator and compliance with this section, to be conducted by the program
administrator or an independent third party as requested by the program
administrator. If the program administrator requires a third party audit, the
audit must be performed at the expense of the renewable energy
resource.
(iv) The output
of the facility must be readily capable of being physically metered and
verified in Texas by the program administrator. Energy from a renewable
facility that is delivered into a transmission system where it is commingled
with electricity from non-renewable resources before being metered cannot be
verified as delivered to Texas customers. A facility is not ineligible if the
facility is a generation-offset, off-grid, or on-site distributed renewable
facility and it otherwise meets the requirements of this
subparagraph.
(v) For a municipally
owned utility operating a gas distribution system, any production or
acquisition of landfill gas that is directly supplied to the gas distribution
system is eligible to produce RECs based upon the conversion of the thermal
energy in BTUs to electric energy in kWh using for the conversion factor the
systemwide average heat rate of the gas-fired units of the combined utility's
electric system as measured in BTUs per kWh.
(vi) For industry-standard thermal
technologies, the RECs can be earned only on the renewable portion of energy
production.
(B)
Facilities not eligible for producing RECs in the trading program. A renewable
facility is not eligible to produce RECs if it is:
(i) A renewable energy capacity addition
associated with an emissions reductions project described in Health and Safety
Code §
382.05193,
that is used to satisfy the permit requirements in Health and Safety Code
§
382.0519;
or
(ii) An existing facility that
is not a small producer as defined in subsection (c) of this section or has not
been repowered as permitted under subparagraph (A) of this paragraph.
(2) Solar renewable
energy credits (solar RECs) for solar RPS.
(A)
Facilities eligible for producing solar RECs and compliance premiums for the
solar RPS. For a renewable facility to be eligible to produce solar RECs and
compliance premiums for the solar RPS, it must be either a new facility, a
small producer, or a repowered facility as defined in subsection (c) of this
section and must also meet the requirements of this paragraph:
(i) A renewable energy resource must not be
ineligible under subparagraph (B) of this paragraph and must register under
subsection (d) of this section.
(ii) A facility must only use renewable
energy technologies that exclusively rely on an energy source that is naturally
regenerated, over a short time and derived directly from the sun.
(iii) The output of the facility must be
readily capable of being physically metered and verified in Texas by the
program administrator. Energy from a solar renewable facility that is delivered
into a transmission system where it is commingled with electricity from
non-solar renewable resources before being metered cannot be verified as
delivered to Texas customers. A facility is not ineligible by virtue of the
fact that the facility is a generation-offset, off-grid, or on-site distributed
solar renewable facility if it otherwise meets the requirements of this
subparagraph.
(iv) For repowered
facilities, a facility is eligible to earn solar RECs on all renewable energy
produced up to a capacity of 150 MW. A repowered facility with a capacity
greater than 150 MW may earn solar RECs for the energy produced in proportion
to 150 divided by nameplate capacity.
(B) Facilities not eligible for producing
solar RECs and compliance premiums for use in the solar RPS. A renewable
facility is not eligible to produce solar RECs and compliance premiums for use
in the solar RPS if it is:
(i) A renewable
energy capacity addition associated with an emissions reductions project
described in Health and Safety Code §
382.05193,
that is used to satisfy the permit requirements in Health and Safety Code
§
382.0519;
or
(ii) An existing facility that
is not a small producer as defined in subsection (c) of this section or has not
been repowered as permitted under this subsection.
(3) Compliance premiums. The
program administrator will award compliance premiums to solar REC generators
certified by the commission under subsection (d) of this section.
(A) For eligible solar technologies as set
forth in paragraph (2)(A)(ii) of this subsection, one compliance premium will
be created and awarded in conjunction with each solar REC generated January 1,
2008 through December 31, 2024. Compliance premiums will not be created or
awarded after December 31, 2024.
(B) Except as provided in this paragraph, the
award, retirement, trade, and registration of compliance premiums must follow
the requirements of paragraph (4) of this subsection and subsections (f) and
(i) of this section.
(C) A
compliance premium may be used by any retail entity toward its solar RPS
requirement under subsection (f)(2) of this section.
(D) A compliance premium may not be used by
any retail entity toward the RPS requirement after the settlement period for
2024 compliance period.
(E) The
program administrator must increase the statewide RPS requirement calculated
under subsection (f)(2)(A) of this section by the number of compliance premiums
retired during the previous compliance period.
(4) Production, transfer, and expiration of
RECs and solar RECs. The production, transfer, and expiration of RECs and solar
RECs must follow the requirements of this paragraph. RECs and solar RECs issued
through December 31, 2023, continue to exist and retire consistent with their
issuance.
(A) The owner of a renewable
resource will earn one REC or solar REC when a MWh is metered at that renewable
resource. The program administrator will record the energy in metered MWh and
credit the REC account of the renewable resource that generated the energy on a
quarterly basis. Quarterly production must be rounded to the nearest whole MWh,
with fractions of 0.5 MWh or greater rounded up.
(B) The transfer of RECs or solar RECs
between parties is effective only when the transfer is recorded by the program
administrator.
(C) The program
administrator will require that RECs or solar RECs be adequately identified
prior to recording a transfer and must issue an acknowledgement of the
transaction to parties upon provision of adequate information. At a minimum,
the following information must be provided:
(i) identification of the parties;
(ii) REC or solar REC serial number, REC or
solar REC issue date, and the renewable resource that produced the REC or solar
REC;
(iii) the number of RECs or
solar RECs to be transferred; and
(iv) the transaction date.
(D) A retail entity must surrender
RECs or solar RECs to the program administrator for retirement from the market
for a compliance period. The program administrator will document all REC and
solar REC retirements annually.
(E)
On or after each April 1, the program administrator will retire RECs and solar
RECs that have not been retired by retail entities and have reached the end of
their compliance life.
(F) The
program administrator may establish a procedure to ensure that the award,
transfer, and retirement of RECs and solar RECs are accurately
recorded.
(G) The issue date of
RECs or solar RECs generated by renewable energy resources will coincide with
the compliance period in which the credits are created. All RECs and solar RECs
will have a compliance life of three compliance periods, after which the
program administrator will retire them from the trading program.
(H) Each REC or solar REC that is not used in
the compliance period in which it was created may be banked and is valid for
the next two compliance periods. For purposes of this subparagraph, calendar
year 2023 counts as a single compliance period.
(f) Solar renewable portfolio standard (solar RPS).
(1) Solar RECs may be generated,
transferred, and retired by renewable energy power generators certified under
subsection (d) of this section, retail entities, and other market participants
as set forth in subsection (e)(4) of this section. Solar RECs generated by
renewable energy resources in the calendar year 2025 may be used by any retail
entity toward the solar RPS requirement for the compliance period beginning
January 1, 2025, or on a voluntary basis in the subsequent years.
(A) The program administrator will allocate a
solar RPS requirement among all retail entities as a percentage of the retail
sales of each retail entity as set forth in paragraph (2) of this subsection.
Each retail entity is responsible for retiring sufficient solar RECs as set
forth in paragraph (2) of this subsection and subsection (e)(4) of this section
for the 2024 and 2025 compliance periods. The requirement to retire solar RECs
to comply with this section becomes effective on the date a retail entity
begins serving retail electric customers in Texas or, for an electric utility,
as specified by law.
(B) Solar RECs
will be credited on an energy basis as set forth in subsection (e)(4) of this
section.
(C) A municipally-owned
utility or distribution cooperative possessing renewable resources that meet
the requirements of subsection (e)(2)(A) of this section may sell solar RECs
generated by such a resource to retail entities as set forth in subsection
(e)(4) of this section.
(D) Except
where specifically stated, the provisions of this section apply uniformly to
all participants in the trading program.
(E) The solar RPS end on September 1,
2025.
(2) Allocation of
solar RPS requirement to retail entities. The program administrator must
allocate solar RPS requirements among retail entities. The solar RPS terminates
September 1, 2025, but is subject to the settlement period following that
termination date. The program administrator must use the following methodology
to determine the total annual solar RPS requirement for a given year and the
final solar RPS allocation for individual retail entities:
(A) The total statewide solar RPS requirement
for each applicable compliance period must be calculated in terms of MWh and
must be equal to the applicable capacity requirement set forth in this
paragraph multiplied by 8,760 hours for the 2024 compliance period and 5,840
hours for the 2025 compliance period, multiplied by the appropriate capacity
conversion factor set forth in paragraph (3) of this subsection. The solar
renewable energy capacity requirements for the compliance periods beginning
January 1, 2024, and January 1, 2025, respectively are:
(i) 1,310 MW of resources from New Facilities
in the 2024 compliance period; and
(ii) 655 MW of resources from New Facilities
in the 2025 compliance period.
(B) The final solar RPS allocation for an
individual retail entity for a compliance period must be calculated as follows:
(i) Prior to the preliminary solar RPS
allocation, each retail entity's total retail energy sales are reduced to
exclude the consumption of customers that opt out in accordance with paragraph
(4) of this subsection. Each retail entity's preliminary solar RPS allocation
is determined by dividing its total retail energy sales in Texas by the total
retail sales in Texas of all retail entities and multiplying that percentage by
the total statewide solar RPS requirement for that compliance period.
(ii) The adjusted solar RPS allocation for
each retail entity that is entitled to an offset is determined by reducing its
preliminary solar RPS allocation by the offsets to which it qualifies, as
determined under paragraph (5) of this subsection, with the maximum reduction
equal to the retail entity's preliminary solar RPS allocation. The total
reduction for all retail entities is equal to the total usable offsets for that
compliance period.
(iii) Each
retail entity's final solar RPS allocation for a compliance period must be
increased to recapture the total usable offsets calculated under clause (ii) of
this subparagraph. The additional solar RPS allocation must be calculated by
dividing the retail entity's preliminary RPS allocation by the total
preliminary solar RPS allocation of all retail entities. This fraction must be
multiplied by the total usable offsets for that compliance period and this
amount must be added to the retail entity's adjusted solar RPS allocation to
produce the retail entity's final solar RPS allocation for the compliance
period.
(C) Concurrent
with determining final individual solar RPS allocations for the current
compliance period in accordance with this subsection, the program administrator
must recalculate the final solar RPS allocations for the previous compliance
periods, taking into account corrections to retail sales resulting from
resettlements. The difference between a retail entity's corrected final solar
RPS allocation and its original final solar RPS allocation for the previous
compliance periods must be added to or subtracted from the retail entity's
final solar RPS allocation for the current compliance period.
(3) Calculation of capacity
conversion factor. The capacity conversion factor used by the program
administrator to allocate solar RECs to retail entities must be calculated
during the first quarter of the 2024 compliance period and will be utilized
through the end of the solar RPS. The capacity conversion factor must:
(A) Be based on actual generator performance
data for the previous two years for solar renewable resources in the trading
program during that period for which at least 12 months of performance data are
available;
(B) Represent a weighted
average of generator performance; and
(C) Use all actual generator performance data
that is available for each solar renewable resource, excluding data for testing
periods.
(4) Opt-out
notice.
(A) A customer receiving electrical
service at transmission-level voltage who submits an opt-out notice to the
commission for the applicable compliance period must have its load excluded
from the solar RPS calculation. Any opt-out notice submitted under the RPS as
it existed prior to the effective date of this section continues to apply to
the solar RPS for the compliance period as specified in this
subsection.
(B) An investor-owned
utility that is subject to the solar RPS requirement under this section must
not collect costs attributable to the solar RPS from an eligible customer who
has submitted an opt-out notice. An investor-owned utility whose rates include
the cost of solar RECs must file a tariff to implement this paragraph, not
later than 30 days after the effective date of this section.
(C) A customer opt-out notice must be filed
in the commission-designated project number before the beginning of a
compliance period for the notice to be effective for that period. Each opt-out
notice must include the name of the individual customer opting out, the
customer's ESI IDs, the retail entities serving those ESI IDs, and the term for
which the notice is effective, which may not exceed two years. The customer
opting out must also provide the information included in the opt-out notice
directly to ERCOT and may request that ERCOT protect the customer's ESI ID and
consumption as confidential information. A customer may revoke a notice under
this paragraph at any time prior to the end of a compliance period by filing a
letter in the designated project number and providing notice to
ERCOT.
(5) Nomination and
award of REC offsets.
(A) A REP,
municipally-owned utility, G&T cooperative, distribution cooperative, or an
affiliate of a REP, municipally-owned utility, or distribution cooperative, may
apply offsets to meet all or a portion of its solar RPS requirement, as
calculated in paragraph (2) of this subsection, only if those offsets were
nominated in a filing with the commission by June 1, 2001.
(B) The program administrator must award
offsets consistent with the commission's actions to verify designations of REC
offsets and with this section.
(C)
REC offsets must be equal to the average annual MWh output of an existing
resource for the years 1991-2000 or the entire life of the existing resource,
whichever is less.
(D) REC offsets
qualify for use in a compliance period under paragraph (2) of this subsection
only to the extent that:
(i) The resource
producing the REC offset has continuously since September 1, 1999, been owned
by or its output has been committed under contract to a utility,
municipally-owned utility, or cooperative (or successor in interest) nominating
the resource under subparagraph (A) of this paragraph or, if the resource has
been committed under a contract that expired after September 1, 1999, and
before January 1, 2002, it was owned by or its output was committed under
contract to a utility, municipally-owned utility, or cooperative on January 1,
2002; and
(ii) The facility
producing the REC offsets is operated and producing energy during the
compliance period in a manner consistent with historic practice.
(E) If the production of energy
from a facility that is eligible for an award of REC offsets ceases for any
reason, or if the power purchase agreement with the facility's owner (or
successor in interest) that is referred to in subparagraph (D)(i) of this
paragraph has lapsed or is no longer in effect, the retail entity must no
longer be awarded REC offsets related to the facility.
(F) REC offsets must not be traded.
(g) Renewable energy credits trading program. The program administrator must maintain a voluntary banking and accreditation system to facilitate a voluntary renewable energy credit trading program. The program administrator must maintain the records, accounts, RECs, and compliance premiums from the trading program as it existed prior to August 31, 2023, and prior to the effective date of this section, as applicable.
(1) RECs may be generated,
transferred, and retired by renewable energy power generators certified under
subsection (d) of this section, retail entities, and other market participants
as set forth in this section. For purposes of this subsection, there is no
distinction between RECs and solar RECs.
(A) A
power generating company may participate in the trading program and may
generate RECs and buy or sell RECs as set forth in subsection (e)(4) of this
section.
(B) RECs must be credited
on an energy basis as set forth in subsection (e)(4) of this section.
(C) A municipally-owned utility or
distribution cooperative possessing renewable resources that meet the
requirements of subsection (e)(1)(A) and (e)(2)(A) of this section may sell
RECs generated by such a resource to retail entities as set forth in subsection
(e)(4) of this section.
(2) The program administrator may assign
additional attributes to RECs, such as more precise REC generation timestamps,
to allow buyers to distinguish between RECs.
(h) Responsibilities of the program administrator. At a minimum, the program administrator must perform the following functions:
(1) Create and maintain
accounts that track RECs, solar RECs, and compliance premiums for each
participant in the trading program;
(2) Award RECs, solar RECs, or compliance
premiums to certified renewable energy facilities on a quarterly basis based on
verified meter reads;
(3) Award
offsets to retail entities on an annual basis based on a nomination submitted
by the retail entity under subsection (f)(5) of this section;
(4) Annually record the retirement of RECs,
solar RECs, and compliance premiums that each retail entity submits;
(5) Retire RECs, solar RECs, and compliance
premiums at the end of each REC, solar REC, or compliance premium's compliance
life;
(6) Maintain public
information on its website that provides trading program information to
interested buyers and sellers of RECs, solar RECs, or compliance
premiums;
(7) Create an exchange
procedure where persons may purchase and sell RECs, solar RECs, or compliance
premiums. The exchange must ensure the anonymity of persons purchasing or
selling RECs, solar RECs, or compliance premiums. The program administrator may
delegate this function to an independent third party, subject to commission
approval;
(8) Make public each
month the total energy sales of retail entities in Texas for the previous
month;
(9) Perform audits of
generators participating in the trading program to verify accuracy of metered
production data;
(10) Allocate the
RPS requirement to each retail entity in accordance with subsection (f)(2) of
this section; and
(11) Submit an
annual report to the commission. The program administrator must submit a report
to the commission on or before May 15 of each calendar year. The report must
contain information pertaining to renewable energy power generators and retail
entities. At a minimum, the report must contain:
(A) the amount of existing and new renewable
energy capacity in MW installed in the state by technology type, the
owner/operator of each facility, the date each facility began to produce
energy, the amount of energy generated in megawatt-hours (MWh) each quarter for
all capacity participating in the trading program or that was retired from
service; and
(B) a listing of all
retail entities participating in the trading program, each retail entity's
solar RPS requirement, the number of offsets used by each retail entity, the
number of solar RECs retired by each retail entity, the number of compliance
premiums retired by each retail entity, a listing of all retail entities that
were in compliance with the solar RPS requirement, a listing of all retail
entities that failed to comply with the solar RPS requirement, and the
deficiency of each retail entity that failed to retire sufficient solar RECs or
compliance premiums to meet its solar RPS requirement.
(i) Settlement process. The 90 days following the compliance period is the settlement period during which the following actions will occur:
(1) 30 days
after the end of the compliance period, the program administrator will notify
each retail entity of its total solar RPS requirement for the previous
compliance period as determined under subsection (f)(2) of this
section.
(2) 90 days after the end
of the compliance period, each retail entity must submit solar RECs or
compliance premiums to the program administrator from its account equivalent to
its solar RPS requirement for the previous compliance period. If the retail
entity does not submit sufficient solar RECs or compliance premiums to satisfy
its obligation, the retail entity is subject to the penalty provisions in
subsection (j) of this section.
(3)
The program administrator may request the commission to adjust the deadlines
set forth in this section if changes to the ERCOT settlement calendar or other
factors affect the availability of reliable retail sales data.
(j) Penalties and enforcement. If by April 1 of the year following a compliance period in which the solar RPS was in effect the program administrator determines that a retail entity has not retired sufficient solar RECs or compliance premiums to satisfy its allocation of the solar RPS, the retail entity is subject to an administrative penalty, under PURA §15.023, of $50 per MWh that is deficient.
(k) Microgenerators and REC aggregators. A REC aggregator may manage the participation of multiple microgenerators in the trading program. The program administrator will assign to the REC aggregator all RECs or solar RECs accrued by the microgenerators who are under a REC management contract with the REC aggregator.
(1) The microgenerator's units must be
installed and connected to the grid in compliance with commission Substantive
Rules, applicable interconnection standards adopted under the commission
Substantive Rules, and federal rules.
(2) Notwithstanding subsection (e)(1)(A)(iii)
of this section, a REC aggregator may use any of the following methods for
reporting generation to the program administrator, as long as the same method
is used for each microgenerator in an aggregation unit, as defined by the REC
aggregator. A REC aggregator may have more than one aggregation and may choose
any of the methods listed below for each aggregation unit.
(A) The REC aggregator may provide the
program administrator with production data that is measured and verified by an
electronic meter that meets ANSI C12 standards and that will be separate from
the aggregator's billing meter for the service address and for which the
billing data and the renewable energy data are separate and verifiable data.
Such actual data must be collected and transmitted within a reasonable time and
is subject to verification by the program administrator. REC aggregators using
this method will be awarded one REC for every MWh generated.
(B) The REC aggregator may provide the
program administrator with sufficient information for the program administrator
to estimate with reasonable accuracy the output of each unit, based on known or
observed information that correlates closely with the generation output. REC
aggregators using this method will be awarded one REC for every 1.25 MWh
generated. After installing the unit, the certified technician must provide the
microgenerator, the REC aggregator, and the program administrator the
information required by the program administrator under this
paragraph.
(C) A generating unit
may have a meter that transmits actual generation data to the program
administrator using applicable protocols and procedures. Such protocols and
procedures must require that actual data be collected and transmitted within a
reasonable time. REC aggregators using this method will be awarded one REC for
every MWh generated.
(3)
REC aggregators must register with the commission and the program administrator
and must also register to participate in the trading program.
(4) A microgenerator participating in the
trading program individually without the assistance of a REC aggregator must
comply with the requirements of this subsection.
(5) REC aggregators and microgenerators that
were registered and certified to participate in the trading program prior to
the effective date of this section continue to be registered and certified
under this subsection and are not required to re-register or be recertified to
participate in the trading program.
(l) Effective date. This section is effective January 1, 2024. The version of this rule that existed prior to January 1, 2024 applies through December 31, 2023, including the settlement of the 2023 compliance period, except that the 2023 compliance period ended on August 31, 2023, and RPS calculation must use 5,832 hours rather than 8,760 hours.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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