mandating and incentivizing further deployment of significant
 
non-dispatchable electricity sources such as wind and solar without
 
providing sufficient resilient backup power will impose
 
reliability and resilience penalties on the bulk power system
 
relied on by the residents and industries of the state; and
 
                         (6)    it is essential that the legislature immediately
 
provide further direction to the Public Utility Commission of Texas
 
regrading reliability standards for the ERCOT market and new
 
mechanisms to address the reliability and resilience shortcomings
 
of the grid.
 
             SECTION  2.    Chapter 39, Utilities Code, is amended by adding
 
Subchapter M to read as follows:
 
SUBCHAPTER M.  RELIABILITY STANDARD FOR NON-DISPATCHABLE
 
GENERATORS
 
             Sec.  39.601.    DEFINITIONS. In this subchapter:
 
                         (1)    "Dispatchable generator" means a source of
 
electricity that:
 
                                     (A)    is available for use on demand;
 
                                     (B)    may be dispatched on the request of a power
 
grid operator;
 
                                     (C)    may have its power output adjusted, according
 
to market need; and
 
                                     (D)    does not derive its power output primarily
 
from sources that inherently change from minute to minute, such as
 
those dependent on local weather conditions to be present.
 
                         (2)    "Expected availability factor" means the average
 
generation of a non-dispatchable generator, divided by its
 
installed capacity, during the highest 100 net load hours each year
 
in an average of two or more immediately preceding calendar years,
 
as determined by the commission.
 
                         (3)    "Firming requirement" is a requirement for a
 
non-dispatchable generator to ensure that its hourly availability
 
factor during at least 95 hours of the highest 100 net load hours
 
equals or exceeds its expected availability factor by continuing to
 
operate, constructing, or acquiring through a power purchase
 
agreement or other means sufficient resources that are eligible to
 
act as ancillary service reserves according to ERCOT protocols.
 
                         (4)    "Hourly availability factor" means the hourly
 
average generation of a non-dispatchable generator, divided by its