Texas 2021 - 87th Regular

Texas House Bill HB1672 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R16201 CXP-F
2		-	By: Holland, Paddie, Hernandez, Lucio III, H.B. No. 1672
3		-	et al.
4		-	Substitute the following for H.B. No. 1672:
5		-	By: Paddie C.S.H.B. No. 1672
	1	+	87R3757 CXP-F
	2	+	By: Holland H.B. No. 1672
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to use of electric energy storage facilities in the ERCOT
11	8		power region.
12	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	10		SECTION 1. Section 35.151, Utilities Code, is amended to
14	11		read as follows:
15	12		Sec. 35.151. ELECTRIC ENERGY STORAGE. This subchapter
16	13		applies only to the ownership or operation of electric energy
17	14		storage equipment or facilities in the ERCOT power region that are
18	15		intended to:
19	16		(1) provide energy or ancillary services at wholesale,
20	17		including electric energy storage equipment or facilities listed on
21	18		a power generation company's registration with the commission or,
22	19		for an exempt wholesale generator, on the generator's registration
23	20		with the Federal Energy Regulatory Commission; or
24	21		(2) provide reliable delivery of electric energy to
25	22		distribution customers.
26	23		SECTION 2. Subchapter E, Chapter 35, Utilities Code, is
27	24		amended by adding Section 35.153 to read as follows:
28	25		Sec. 35.153. CONTRACTS FOR ELECTRIC ENERGY STORAGE FOR
29	26		RELIABILITY SERVICES. (a) A transmission and distribution
30	27		utility, with prior approval of the commission, may contract with a
31	28		power generation company to provide electric energy from an
32	29		electric energy storage facility to ensure reliable service to
33	30		distribution customers.
34	31		(b) The commission may not authorize ownership of an
35	32		electric energy storage facility by a transmission and distribution
36	33		utility.
37	34		(c) Before entering into a contract under Subsection (a),
38	35		the transmission and distribution utility must issue a request for
39	36		proposals for use of an electric energy storage facility to meet the
40	37		utility's reliability needs.
41	38		(d) A transmission and distribution utility may enter into a
42	39		contract under Subsection (a) only if use of an electric energy
43	40		storage facility is more cost-effective than construction or
44	41		modification of traditional distribution facilities.
45	42		(e) A transmission and distribution utility may not enter
46	43		into a contract under Subsection (a) that reserves an amount of
47	44		capacity exceeding the amount of capacity required to ensure
48	45		reliable service to the utility's distribution customers.
49	46		(f) A power generation company that owns or operates an
50	47		electric energy storage facility subject to a contract under
51	48		Subsection (a) may sell electric energy or ancillary services
52	49		through use of the facility only to the extent that the company
53	50		reserves capacity as required by the contract.
54	51		(g) A power generation company that owns or operates an
55	52		electric energy storage facility subject to a contract under
56	53		Subsection (a) may not discharge the facility to satisfy the
57	54		contract's requirements unless directed by the transmission and
58	55		distribution utility.
59	56		(h) A contract under Subsection (a) must require a power
60	57		generation company that owns or operates an electric energy storage
61	58		facility to reimburse a transmission and distribution utility for
62	59		the cost of an administrative penalty assessed against the utility
63	60		for a violation caused by the facility's failure to meet the
64	61		requirements of the agreement.
65	62		(i) In establishing the rates of a transmission and
66	63		distribution utility, a regulatory authority shall review a
67	64		contract between the utility and a power generation company under
68	65		Subsection (a). The utility has the burden of proof to establish
69	66		that the costs of the contract are reasonable and necessary. The
70	67		regulatory authority may authorize a transmission and distribution
71	68		utility to include a reasonable return on the payments required
72	69		under the contract only if the contract terms satisfy the relevant
73	70		accounting standards for a capital lease or finance lease.
74	71		(j) The total amount of electric energy storage capacity
75		-	reserved by contracts under Subsection (a) may not exceed ~~100~~
	72	+	reserved by contracts under Subsection (a) may not exceed 40
76	73		megawatts. The commission shall by rule establish the maximum
77	74		amount of electric energy storage capacity allotted to each
78	75		transmission and distribution utility.
79	76		(k) The commission shall adopt rules as necessary to
80	77		implement this section and establish criteria for approving
81	78		contracts under Subsection (a).
82	79		SECTION 3. The Public Utility Commission of Texas shall
83	80		adopt rules required by Section 35.153, Utilities Code, as added by
84	81		this Act, as soon as practicable after the effective date of this
85	82		Act.
86	83		SECTION 4. This Act takes effect September 1, 2021.