Texas 2015 - 84th Regular

Texas Senate Bill SB1827 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R6271 DDT-D
2	2	By: Campbell S.B. No. 1827
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the legislature's goals for renewable electric
8	8	generating capacity.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2305.0322(b)(5), Government Code, is
11	11	amended to read as follows:
12	12	(5) "Renewable energy technology" has the meaning
13	13	assigned by Section 39.916 [39.904(d)], Utilities Code.
14	14	SECTION 2. Section 36.053(d), Utilities Code, is amended to
15	15	read as follows:
16	16	(d) If the commission issues a certificate of convenience
17	17	and necessity or if the commission, acting under the authority
18	18	formerly provided by Section 39.203(e), ordered [orders] an
19	19	electric utility or a transmission and distribution utility to
20	20	construct or enlarge transmission or transmission-related
21	21	facilities to facilitate meeting the goal for generating capacity
22	22	from renewable energy technologies under former Section 39.904(a),
23	23	the commission shall find that the facilities are used and useful to
24	24	the utility in providing service for purposes of this section and
25	25	are prudent and includable in the rate base, regardless of the
26	26	extent of the utility's actual use of the facilities.
27	27	SECTION 3. Section 37.051(f), Utilities Code, is amended to
28	28	read as follows:
29	29	(f) The commission shall consider the requirements of
30	30	Subsection (e) to have been met by an electric utility or other
31	31	person that:
32	32	(1) was [is] selected by the commission as a
33	33	transmission provider under a plan adopted by the commission under
34	34	former Section 39.904 [not later than September 1, 2009]; and
35	35	(2) before the certificate is issued, provides to the
36	36	commission a detailed plan regarding the offices, personnel, and
37	37	other resources the electric utility or other person will have in
38	38	this state to ensure provision of continuous and adequate
39	39	transmission service.
40	40	SECTION 4. Section 37.0541, Utilities Code, is amended to
41	41	read as follows:
42	42	Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The
43	43	commission shall consolidate the proceeding on an application to
44	44	obtain or amend a certificate of convenience and necessity for the
45	45	construction of a transmission line with the proceeding on another
46	46	application to obtain or amend a certificate of convenience and
47	47	necessity for the construction of a transmission line if it is
48	48	apparent from the applications or a motion to intervene in either
49	49	proceeding that the transmission lines that are the subject of the
50	50	separate proceedings share a common point of interconnection.
51	51	[This section does not apply to a proceeding on an application for a
52	52	certificate of convenience and necessity for a transmission line to
53	53	serve a competitive renewable energy zone as part of a plan
54	54	developed by the commission under Section 39.904(g)(2).]
55	55	SECTION 5. Sections 37.056(c) and (d), Utilities Code, are
56	56	amended to read as follows:
57	57	(c) The commission shall grant each certificate on a
58	58	nondiscriminatory basis after considering:
59	59	(1) the adequacy of existing service;
60	60	(2) the need for additional service;
61	61	(3) the effect of granting the certificate on the
62	62	recipient of the certificate and any electric utility serving the
63	63	proximate area; and
64	64	(4) other factors, such as:
65	65	(A) community values;
66	66	(B) recreational and park areas;
67	67	(C) historical and aesthetic values;
68	68	(D) environmental integrity; and
69	69	(E) the probable improvement of service or
70	70	lowering of cost to consumers in the area if the certificate is
71	71	granted[; and
72	72	[(F) to the extent applicable, the effect of
73	73	granting the certificate on the ability of this state to meet the
74	74	goal established by Section 39.904(a) of this title].
75	75	(d) The commission by rule shall establish criteria, in
76	76	addition to the criteria described by Subsection (c), for granting
77	77	a certificate for a transmission project that serves the ERCOT
78	78	power region and [,] that is not necessary to meet state or federal
79	79	reliability standards[, and that does not serve a competitive
80	80	renewable energy zone]. The criteria must include a comparison of
81	81	the estimated cost of the transmission project and the estimated
82	82	cost savings that may result from the transmission project. The
83	83	commission shall include with its decision on an application for a
84	84	certificate to which this subsection applies findings on the
85	85	criteria.
86	86	SECTION 6. Section 39.002, Utilities Code, is amended to
87	87	read as follows:
88	88	Sec. 39.002. APPLICABILITY. This chapter, other than
89	89	Sections 39.155, 39.157(e), 39.203, 39.903, [39.904,] 39.9051,
90	90	39.9052, and 39.914(e), does not apply to a municipally owned
91	91	utility or an electric cooperative. Sections 39.157(e) and [,]
92	92	39.203, [and 39.904,] however, apply only to a municipally owned
93	93	utility or an electric cooperative that is offering customer
94	94	choice. If there is a conflict between the specific provisions of
95	95	this chapter and any other provisions of this title, except for
96	96	Chapters 40 and 41, the provisions of this chapter control.
97	97	SECTION 7. Section 39.203(e), Utilities Code, is amended to
98	98	read as follows:
99	99	(e) The commission may require an electric utility or a
100	100	transmission and distribution utility to construct or enlarge
101	101	facilities to ensure safe and reliable service for the state's
102	102	electric markets and to reduce transmission constraints within
103	103	ERCOT in a cost-effective manner where the constraints are such
104	104	that they are not being resolved through Chapter 37 or the ERCOT
105	105	transmission planning process. [The commission shall require an
106	106	electric utility or a transmission and distribution utility to
107	107	construct or enlarge transmission or transmission-related
108	108	facilities for the purpose of meeting the goal for generating
109	109	capacity from renewable energy technologies under Section
110	110	39.904(a).] In any proceeding brought under Chapter 37, an
111	111	electric utility or transmission and distribution utility ordered
112	112	to construct or enlarge facilities under this subchapter need not
113	113	prove that the construction ordered is necessary for the service,
114	114	accommodation, convenience, or safety of the public and need not
115	115	address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E).
116	116	Notwithstanding any other law, including Section 37.057, in any
117	117	proceeding brought under Chapter 37 by an electric utility or a
118	118	transmission and distribution utility related to an application for
119	119	a certificate of public convenience and necessity to construct or
120	120	enlarge transmission or transmission-related facilities under this
121	121	subsection, the commission shall issue a final order before the
122	122	181st day after the date the application is filed with the
123	123	commission. If the commission does not issue a final order before
124	124	that date, the application is approved.
125	125	SECTION 8. Section 39.402(a), Utilities Code, is amended to
126	126	read as follows:
127	127	(a) Until the date on which an electric utility subject to
128	128	this subchapter is authorized by the commission to implement
129	129	customer choice, the rates of the utility shall be regulated under
130	130	traditional cost of service regulation and the utility is subject
131	131	to all applicable regulatory authority prescribed by this subtitle
132	132	and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until
133	133	the date on which an electric utility subject to this subchapter
134	134	implements customer choice, the provisions of this chapter, other
135	135	than this subchapter, Section [Sections 39.904 and] 39.905, and the
136	136	provisions relating to the duty to obtain a permit from the Texas
137	137	Commission on Environmental Quality for an electric generating
138	138	facility and to reduce emissions from an electric generating
139	139	facility, shall not apply to that utility. That portion of any
140	140	commission order entered before September 1, 2001, to comply with
141	141	this subchapter shall be null and void.
142	142	SECTION 9. Section 39.452(d), Utilities Code, is amended to
143	143	read as follows:
144	144	(d) Until the date on which an electric utility subject to
145	145	this subchapter implements customer choice:
146	146	(1) the provisions of this chapter do not apply to that
147	147	electric utility, other than this subchapter, Section [Sections
148	148	39.904 and] 39.905, the provisions relating to the duty to obtain a
149	149	permit from the Texas Commission on Environmental Quality for an
150	150	electric generating facility and to reduce emissions from an
151	151	electric generating facility, and the provisions of Subchapter G
152	152	that pertain to the recovery and securitization of hurricane
153	153	reconstruction costs authorized by Sections 39.458-39.463; and
154	154	(2) the electric utility is not subject to a rate
155	155	freeze and, subject to the limitation provided by Subsection (b),
156	156	may file for rate changes under Chapter 36 and for approval of one
157	157	or more of the rate rider mechanisms authorized by Sections 39.454
158	158	and 39.455.
159	159	SECTION 10. Section 39.502(b), Utilities Code, is amended
160	160	to read as follows:
161	161	(b) Until the date on which an electric utility subject to
162	162	this subchapter implements customer choice, the provisions of this
163	163	chapter, other than this subchapter and Section [Sections 39.904
164	164	and] 39.905, do not apply to that utility.
165	165	SECTION 11. Section 39.552(b), Utilities Code, is amended
166	166	to read as follows:
167	167	(b) Until the date on which an electric utility subject to
168	168	this subchapter implements customer choice, the provisions of this
169	169	chapter, other than this subchapter and Section [Sections 39.904
170	170	and] 39.905, do not apply to that utility.
171	171	SECTION 12. Section 39.916(a), Utilities Code, is amended
172	172	by amending Subdivision (1) and adding Subdivision (4) to read as
173	173	follows:
174	174	(1) "Distributed renewable generation" means electric
175	175	generation with a capacity of not more than 2,000 kilowatts
176	176	provided by a renewable energy technology[, as defined by Section
177	177	39.904,] that is installed on a retail electric customer's side of
178	178	the meter.
179	179	(4) "Renewable energy technology" means any
180	180	technology that relies exclusively on an energy source that is
181	181	naturally regenerated over a short time and is derived from the sun
182	182	directly or indirectly or from moving water or other natural
183	183	movements or mechanisms of the environment. The term includes a
184	184	technology that relies on energy derived from the sun directly, on
185	185	wind, geothermal, hydroelectric, wave, or tidal energy, or on
186	186	biomass or biomass-based waste products, including landfill gas.
187	187	The term does not include a technology that relies on an energy
188	188	resource derived from a fossil fuel, a waste product from a fossil
189	189	fuel, or a waste product from an inorganic source.
190	190	SECTION 13. Section 40.001(a), Utilities Code, is amended
191	191	to read as follows:
192	192	(a) Notwithstanding any other provision of law, except
193	193	Sections 39.155, 39.157(e), 39.203, and 39.903, [and 39.904,] this
194	194	chapter governs the transition to and the establishment of a fully
195	195	competitive electric power industry for municipally owned
196	196	utilities. With respect to the regulation of municipally owned
197	197	utilities, this chapter controls over any other provision of this
198	198	title, except for sections in which the term "municipally owned
199	199	utility" is specifically used.
200	200	SECTION 14. Section 40.004, Utilities Code, is amended to
201	201	read as follows:
202	202	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
203	203	specifically otherwise provided in this chapter, the commission has
204	204	jurisdiction over municipally owned utilities only for the
205	205	following purposes:
206	206	(1) to regulate wholesale transmission rates and
207	207	service, including terms of access, to the extent provided by
208	208	Subchapter A, Chapter 35;
209	209	(2) to regulate certification of retail service areas
210	210	to the extent provided by Chapter 37;
211	211	(3) to regulate rates on appeal under Subchapters D
212	212	and E, Chapter 33, subject to Section 40.051(c);
213	213	(4) to establish a code of conduct as provided by
214	214	Section 39.157(e) applicable to anticompetitive activities and to
215	215	affiliate activities limited to structurally unbundled affiliates
216	216	of municipally owned utilities, subject to Section 40.054;
217	217	(5) to establish terms and conditions for open access
218	218	to transmission and distribution facilities for municipally owned
219	219	utilities providing customer choice, as provided by Section 39.203;
220	220	(6) to require collection of the nonbypassable fee
221	221	established under Section 39.903(b) and to administer the
222	222	[renewable energy credits program under Section 39.904(b) and the]
223	223	natural gas energy credits program under Section 39.9044(b); and
224	224	(7) to require reports of municipally owned utility
225	225	operations only to the extent necessary to:
226	226	(A) enable the commission to determine the
227	227	aggregate load and energy requirements of the state and the
228	228	resources available to serve that load; or
229	229	(B) enable the commission to determine
230	230	information relating to market power as provided by Section 39.155.
231	231	SECTION 15. Section 41.001, Utilities Code, is amended to
232	232	read as follows:
233	233	Sec. 41.001. APPLICABLE LAW. Notwithstanding any other
234	234	provision of law, except Sections 39.155, 39.157(e), 39.203, and
235	235	39.903, [and 39.904,] this chapter governs the transition to and
236	236	the establishment of a fully competitive electric power industry
237	237	for electric cooperatives. Regarding the regulation of electric
238	238	cooperatives, this chapter shall control over any other provision
239	239	of this title, except for sections in which the term "electric
240	240	cooperative" is specifically used.
241	241	SECTION 16. Sections 39.904 and 39.916(g), Utilities Code,
242	242	are repealed.
243	243	SECTION 17. This Act takes effect September 1, 2015.