2011S0557-2 03/09/11
By: Fraser S.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to state energy policy and the planning of energy
development and utilization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1
SECTION 1.01. This article may be cited as the Energy Policy
Act.
SECTION 1.02. The Utilities Code is amended by adding Title
6 to read as follows:
TITLE 6. ENERGY POLICY ACT
CHAPTER 300. STRATEGIC ENERGY PLANNING
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 300.001. PURPOSE AND FINDINGS. (a) This title is
enacted to promote, in accordance with the public interest, the
strategic planning of energy development, production, delivery,
commercialization, and utilization in this state.
(b) The purpose of this title is to establish a statewide
energy policy planning entity and process that recognizes:
(1) public health and general welfare as a critical
concern in the development of energy policies;
(2) energy as a valuable and vital commodity in the
state's economy;
(3) protection of the environment as a major
consideration in the production of energy and utilization of
natural resources;
(4) cost-effective, market-based solutions as a
preferred policy for energy planning;
(5) utilization of Texas-based resources to provide
energy security, stability, and reliability; and
(6) the importance of portfolio diversity in promoting
energy system flexibility, affordability, and efficiency.
Sec. 300.002. DEFINITIONS. In this title:
(1) "Council" means the Texas Energy Policy Council.
(2) "Office" means the State Energy Conservation
Office.
(3) "Plan" means the statewide energy policy plan.
Sec. 300.003. TEXAS ENERGY POLICY COUNCIL. (a) The Texas
Energy Policy Council is created to develop and present a statewide
energy policy plan to the legislature. The plan must include a
20-year planning horizon and be updated to reflect changing
conditions and should be considered a living document.
(b) The council is composed of 11 members as follows:
(1) the chairman of the Public Utility Commission of
Texas;
(2) the chairman of the Railroad Commission of Texas;
(3) the chairman of the Texas Commission on
Environmental Quality;
(4) the president and chief executive officer of the
Electric Reliability Council of Texas;
(5) two members of the senate appointed by the
lieutenant governor;
(6) two members of the house of representatives
appointed by the speaker of the house of representatives;
(7) one member of the academic community with
expertise in energy appointed by the governor;
(8) one member of the academic community with
expertise in environmental issues related to energy appointed by
the governor; and
(9) the director of the office.
(c) The governor shall designate the presiding officer from
among the members of the council.
(d) An appointed member of the council serves for a full
planning cycle and may be reappointed at the pleasure of the
appointing official.
(e) The council shall meet at least quarterly in
even-numbered years while developing a plan for submission to the
legislature. The council may meet annually in odd-numbered years
after submitting plans to the legislature.
(f) The council shall develop and implement policies and
procedures that provide the public with reasonable opportunity to
appear before the council and to speak on issues under the
jurisdiction of the council.
(g) The office is designated as the state agency responsible
for administering the council. Staff from the office shall be
tasked, as necessary, with assisting the council in carrying out
its duties.
Sec. 300.004. POWERS, DUTIES, AND RESPONSIBILITIES OF
COUNCIL. (a) In developing the plan, the council shall:
(1) encourage cooperation and coordination between
public and private entities regarding energy usage, planning,
research and development, and commercialization;
(2) seek policies that promote a diverse portfolio of
clean, reliable, and competitively priced energy sources;
(3) promote research, pilot projects, and
market-based incentives to explore and expand long-term energy
options;
(4) develop policies to prevent supply interruptions
and infrastructure failure;
(5) examine the impact on the environment of energy
exploration, production, and use; and
(6) make recommendations for increasing public
knowledge of energy use issues and public awareness of the
importance of more efficient consumption of energy.
(b) The council shall submit to the legislature the initial
plan by December 1, 2012. Thereafter, the council shall report to
the legislature by December 1 of each even-numbered year the status
of the plan's implementation and make any recommendations for
legislative action as necessary to implement or revise the plan.
The council may update the plan as necessary to reflect evolving
conditions.
Sec. 300.005. FUELS AND TECHNOLOGIES. (a) The council
shall consider the following fuel sources, types of generation, and
innovative technologies associated with these fuels and types of
generation when creating the plan. These fuels, types of
generation, and technologies include:
(1) oil and natural gas;
(2) coal and lignite;
(3) nuclear;
(4) renewable energy technologies;
(5) geothermal;
(6) methane;
(7) distributed generation;
(8) fuel cells and storage; and
(9) any other fuels and technologies as defined in
Section 39.904(d).
(b) The council shall develop policies that ensure fuel
resources available to the state are utilized in a balanced and
efficient manner. The council shall consider the economic
viability and environmental impact of types of fuel and technology
when making its recommendations.
Sec. 300.006. ENERGY EFFICIENT TECHNOLOGY. (a) In order
to reduce the energy demand of customers in this state, the council
shall consider energy-efficient technologies when formulating the
plan and include them in its recommendations. Energy-efficient
technologies shall be considered for the following:
(1) residential, commercial, industrial, and state
and local energy users; and
(2) any other user group or application the council
deems appropriate.
(b) The council shall consider the economic viability and
competitiveness of new technologies when making its
recommendations.
(c) The council shall consider the ability of
energy-efficient technologies to reduce the demand for energy and
the need for additional transmission capacity in the state and
shall consider opportunities for reducing transmission constraints
by using these technologies.
Sec. 300.007. TRANSMISSION. (a) The council shall
consider and recommend strategies to ensure that customers in this
state have access to reliable energy.
(b) The council shall consider transmission constraints,
and make recommendations in the plan to alleviate or prevent those
constraints, for the following sources of energy:
(1) oil and natural gas;
(2) coal and lignite;
(3) wind and solar; and
(4) electricity.
Sec. 300.008. ALTERNATIVE FUEL VEHICLES. (a) The council
shall consider and make recommendations on strategies that involve
the use of alternative fuel vehicles such as natural gas vehicles
and plug-in electric vehicles.
(b) The council shall consider the economic feasibility of
alternative fuel vehicles and infrastructure constraints and may
make recommendations on how to incorporate and promote these
vehicles as a component of the plan.
Sec. 300.009. ENVIRONMENT. (a) The council, when creating
the plan or in formulating recommendations, shall consider the
effects of energy exploration, production, and consumption on the
environment.
(b) The council shall recommend strategies that protect and
preserve the environment of the state and allow for access to and
the production of safe, economically viable, and reliable sources
of energy. The council shall consider:
(1) air quality;
(2) water quality; and
(3) waste disposal.
SECTION 2.01. Chapter 36, Utilities Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. REPORT ON RESERVES AND EMISSIONS REDUCTIONS PLAN
Sec. 36.501. REPORT ON RESERVES. (a) Not later than
December 1, 2011, the Railroad Commission of Texas shall prepare
and submit to the commission a report on coal and gas reserves in
this state that includes information relating to:
(1) natural gas reserves in this state proven and
probable on November 1, 2011;
(2) estimates of the proven and probable natural gas
reserves in this state for each of the next 15 years;
(3) estimates of natural gas prices for each of the
next 15 years;
(4) coal reserves in this state proven and probable on
November 1, 2011;
(5) estimates of the proven and probable coal reserves
in this state for each of the next 15 years; and
(6) estimates of coal prices for each of the next 15
years.
(b) The Railroad Commission of Texas may request financial
information and forecasts from the comptroller to assist the
Railroad Commission of Texas in carrying out its duties under this
section. The comptroller shall provide that information and those
forecasts to the Railroad Commission of Texas as quickly as
possible.
Sec. 36.502. REPORT AND PLAN. (a) The commission shall
prepare a report on electric energy generation in this state. The
report must include an air pollution reduction plan.
(b) In preparing the report, the commission shall:
(1) analyze information from the reports submitted
under this subchapter by electric generating facilities and the
Railroad Commission of Texas; and
(2) consult with the Railroad Commission of Texas, the
Texas Commission on Environmental Quality, the Electric
Reliability Council of Texas, the Southwest Power Pool, the
Southeastern Electric Reliability Council, and the Western
Electricity Coordinating Council.
(c) The air pollution reduction plan must be designed to:
(1) maintain electric grid reliability;
(2) ensure the availability of electric energy at
reasonable rates;
(3) reduce air pollution, as defined by Section
382.003, Health and Safety Code;
(4) increase the state's ability to comply with state
and federal clean air standards in nonattainment and
near-nonattainment areas;
(5) reduce the use of water for electricity generation
in this state; and
(6) increase the use of existing natural gas combined
cycle electric generating facilities in this state.
(d) The plan must identify the electric generating
facilities in this state that produced the greatest amounts of air
pollution during the preceding five years and recommend retirement
of at least 4,000 megawatts of generation capacity from those
facilities.
(e) Not later than June 1, 2012, the commission shall make a
draft of the report available for public review and comment for a
period of not less than 30 days.
(f) Not later than August 1, 2012, the commission shall
finalize and publish the report.
SECTION 2.02. Section 39.904, Utilities Code, is amended by
adding Subsection (p) to read as follows:
(p) This section is intended to increase the amount of
renewable generating capacity as provided by Subsection (a) and is
not intended, unless specifically stated otherwise in this section,
to provide operational or competitive advantages to renewable
energy generators to the detriment of other generation resources.
SECTION 3.01. As soon as practicable after the effective
date of this Act, the designated appointing officials shall appoint
the members to the Texas Energy Policy Council established under
Chapter 300, Utilities Code, as added by this Act.
SECTION 3.02. This Act takes effect September 1, 2011.