Texas 2021 - 87th Regular

Texas House Bill HB3937 Compare Versions

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

Old	New	Differences
1	1	87R10623 BRG-D
2	2	By: Sanford H.B. No. 3937
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 36.053(d), Utilities Code, is amended to
11	11	read as follows:
12	12	(d) If the commission issues a certificate of convenience
13	13	and necessity or if the commission, acting under the authority
14	14	formerly provided by Section 39.203(e), ordered [orders] an
15	15	electric utility or a transmission and distribution utility to
16	16	construct or enlarge transmission or transmission-related
17	17	facilities to facilitate meeting the goal for generating capacity
18	18	from renewable energy technologies under former Section 39.904(a),
19	19	the commission shall find that the facilities are used and useful to
20	20	the utility in providing service for purposes of this section and
21	21	are prudent and includable in the rate base, regardless of the
22	22	extent of the utility's actual use of the facilities.
23	23	SECTION 2. Section 37.0541, Utilities Code, is amended to
24	24	read as follows:
25	25	Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The
26	26	commission shall consolidate the proceeding on an application to
27	27	obtain or amend a certificate of convenience and necessity for the
28	28	construction of a transmission line with the proceeding on another
29	29	application to obtain or amend a certificate of convenience and
30	30	necessity for the construction of a transmission line if it is
31	31	apparent from the applications or a motion to intervene in either
32	32	proceeding that the transmission lines that are the subject of the
33	33	separate proceedings share a common point of interconnection.
34	34	[This section does not apply to a proceeding on an application for a
35	35	certificate of convenience and necessity for a transmission line to
36	36	serve a competitive renewable energy zone as part of a plan
37	37	developed by the commission under Section 39.904(g)(2).]
38	38	SECTION 3. Sections 37.056(c) and (d), Utilities Code, are
39	39	amended to read as follows:
40	40	(c) The commission shall grant each certificate on a
41	41	nondiscriminatory basis after considering:
42	42	(1) the adequacy of existing service;
43	43	(2) the need for additional service;
44	44	(3) the effect of granting the certificate on the
45	45	recipient of the certificate and any electric utility serving the
46	46	proximate area; and
47	47	(4) other factors, such as:
48	48	(A) community values;
49	49	(B) recreational and park areas;
50	50	(C) historical and aesthetic values;
51	51	(D) environmental integrity; and
52	52	(E) the probable improvement of service or
53	53	lowering of cost to consumers in the area if the certificate is
54	54	granted[; and
55	55	[(F) to the extent applicable, the effect of
56	56	granting the certificate on the ability of this state to meet the
57	57	goal established by Section 39.904(a) of this title].
58	58	(d) The commission by rule shall establish criteria, in
59	59	addition to the criteria described by Subsection (c), for granting
60	60	a certificate for a transmission project that serves the ERCOT
61	61	power region and [,] that is not necessary to meet state or federal
62	62	reliability standards[, and that does not serve a competitive
63	63	renewable energy zone]. The criteria must include a comparison of
64	64	the estimated cost of the transmission project and the estimated
65	65	cost savings that may result from the transmission project. The
66	66	commission shall include with its decision on an application for a
67	67	certificate to which this subsection applies findings on the
68	68	criteria.
69	69	SECTION 4. Section 39.002, Utilities Code, is amended to
70	70	read as follows:
71	71	Sec. 39.002. APPLICABILITY. This chapter, other than
72	72	Sections 39.1516, 39.155, 39.157(e), 39.203, [39.904,] 39.9051,
73	73	39.9052, and 39.914(e), does not apply to a municipally owned
74	74	utility or an electric cooperative. Sections 39.157(e) and [,]
75	75	39.203[, and 39.904, however,] apply only to a municipally owned
76	76	utility or an electric cooperative that is offering customer
77	77	choice. If there is a conflict between the specific provisions of
78	78	this chapter and any other provisions of this title, except for
79	79	Chapters 40 and 41, the provisions of this chapter control.
80	80	SECTION 5. Section 39.203(e), Utilities Code, is amended to
81	81	read as follows:
82	82	(e) The commission may require an electric utility or a
83	83	transmission and distribution utility to construct or enlarge
84	84	facilities to ensure safe and reliable service for the state's
85	85	electric markets and to reduce transmission constraints within
86	86	ERCOT in a cost-effective manner where the constraints are such
87	87	that they are not being resolved through Chapter 37 or the ERCOT
88	88	transmission planning process. [The commission shall require an
89	89	electric utility or a transmission and distribution utility to
90	90	construct or enlarge transmission or transmission-related
91	91	facilities for the purpose of meeting the goal for generating
92	92	capacity from renewable energy technologies under Section
93	93	39.904(a).] In any proceeding brought under Chapter 37, an
94	94	electric utility or transmission and distribution utility ordered
95	95	to construct or enlarge facilities under this subchapter need not
96	96	prove that the construction ordered is necessary for the service,
97	97	accommodation, convenience, or safety of the public and need not
98	98	address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E).
99	99	Notwithstanding any other law, including Section 37.057, in any
100	100	proceeding brought under Chapter 37 by an electric utility or a
101	101	transmission and distribution utility related to an application for
102	102	a certificate of public convenience and necessity to construct or
103	103	enlarge transmission or transmission-related facilities under this
104	104	subsection, the commission shall issue a final order before the
105	105	181st day after the date the application is filed with the
106	106	commission. If the commission does not issue a final order before
107	107	that date, the application is approved.
108	108	SECTION 6. Section 39.402(a), Utilities Code, is amended to
109	109	read as follows:
110	110	(a) Until the date on which an electric utility subject to
111	111	this subchapter is authorized by the commission to implement
112	112	customer choice, the rates of the utility shall be regulated under
113	113	traditional cost of service regulation and the utility is subject
114	114	to all applicable regulatory authority prescribed by this subtitle
115	115	and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until the
116	116	date on which an electric utility subject to this subchapter
117	117	implements customer choice, the provisions of this chapter, other
118	118	than this subchapter, Sections 39.1516 [, 39.904,] and 39.905, and
119	119	the provisions relating to the duty to obtain a permit from the
120	120	Texas Commission on Environmental Quality for an electric
121	121	generating facility and to reduce emissions from an electric
122	122	generating facility, shall not apply to that utility. That portion
123	123	of any commission order entered before September 1, 2001, to comply
124	124	with this subchapter shall be null and void.
125	125	SECTION 7. Section 39.452(d), Utilities Code, is amended to
126	126	read as follows:
127	127	(d) Until the date on which an electric utility subject to
128	128	this subchapter implements customer choice:
129	129	(1) the provisions of this chapter do not apply to that
130	130	electric utility, other than this subchapter, Sections 39.1516 [,
131	131	39.904,] and 39.905, the provisions relating to the duty to obtain a
132	132	permit from the Texas Commission on Environmental Quality for an
133	133	electric generating facility and to reduce emissions from an
134	134	electric generating facility, and the provisions of Subchapter G
135	135	that pertain to the recovery and securitization of hurricane
136	136	reconstruction costs authorized by Sections 39.458-39.463; and
137	137	(2) the electric utility is not subject to a rate
138	138	freeze and, subject to the limitation provided by Subsection (b),
139	139	may file for rate changes under Chapter 36 and for approval of one
140	140	or more of the rate rider mechanisms authorized by Sections 39.454
141	141	and 39.455.
142	142	SECTION 8. Section 39.502(b), Utilities Code, is amended to
143	143	read as follows:
144	144	(b) Until the date on which an electric utility subject to
145	145	this subchapter implements customer choice, the provisions of this
146	146	chapter, other than this subchapter and Sections 39.1516 [,
147	147	39.904,] and 39.905, do not apply to that utility.
148	148	SECTION 9. Section 39.552(b), Utilities Code, is amended to
149	149	read as follows:
150	150	(b) Until the date on which an electric utility subject to
151	151	this subchapter implements customer choice, the provisions of this
152	152	chapter, other than this subchapter and Sections 39.1516 [,
153	153	39.904,] and 39.905, do not apply to that utility.
154	154	SECTION 10. Section 39.916(a), Utilities Code, is amended
155	155	by amending Subdivision (1) and adding Subdivision (4) to read as
156	156	follows:
157	157	(1) "Distributed renewable generation" means electric
158	158	generation with a capacity of not more than 2,000 kilowatts
159	159	provided by a renewable energy technology[, as defined by Section
160	160	39.904,] that is installed on a retail electric customer's side of
161	161	the meter.
162	162	(4) "Renewable energy technology" means any
163	163	technology that relies exclusively on an energy source that is
164	164	naturally regenerated over a short time and is derived from the sun
165	165	directly or indirectly or from moving water or other natural
166	166	movements or mechanisms of the environment. The term includes a
167	167	technology that relies on energy derived from the sun directly, on
168	168	wind, geothermal, hydroelectric, wave, or tidal energy, or on
169	169	biomass or biomass-based waste products, including landfill gas.
170	170	The term does not include a technology that relies on an energy
171	171	resource derived from a fossil fuel, a waste product from a fossil
172	172	fuel, or a waste product from an inorganic source.
173	173	SECTION 11. Section 40.001(a), Utilities Code, is amended
174	174	to read as follows:
175	175	(a) Notwithstanding any other provision of law, except
176	176	Sections 39.155, 39.157(e), and 39.203, [and 39.904,] this chapter
177	177	governs the transition to and the establishment of a fully
178	178	competitive electric power industry for municipally owned
179	179	utilities. With respect to the regulation of municipally owned
180	180	utilities, this chapter controls over any other provision of this
181	181	title, except for sections in which the term "municipally owned
182	182	utility" is specifically used.
183	183	SECTION 12. Section 40.004, Utilities Code, is amended to
184	184	read as follows:
185	185	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
186	186	specifically otherwise provided in this chapter, the commission has
187	187	jurisdiction over municipally owned utilities only for the
188	188	following purposes:
189	189	(1) to regulate wholesale transmission rates and
190	190	service, including terms of access, to the extent provided by
191	191	Subchapter A, Chapter 35;
192	192	(2) to regulate certification of retail service areas
193	193	to the extent provided by Chapter 37;
194	194	(3) to regulate rates on appeal under Subchapters D
195	195	and E, Chapter 33, subject to Section 40.051(c);
196	196	(4) to establish a code of conduct as provided by
197	197	Section 39.157(e) applicable to anticompetitive activities and to
198	198	affiliate activities limited to structurally unbundled affiliates
199	199	of municipally owned utilities, subject to Section 40.054;
200	200	(5) to establish terms and conditions for open access
201	201	to transmission and distribution facilities for municipally owned
202	202	utilities providing customer choice, as provided by Section 39.203;
203	203	(6) to administer [the renewable energy credits
204	204	program under Section 39.904(b) and] the natural gas energy credits
205	205	program under Section 39.9044(b);
206	206	(7) to require reports of municipally owned utility
207	207	operations only to the extent necessary to:
208	208	(A) enable the commission to determine the
209	209	aggregate load and energy requirements of the state and the
210	210	resources available to serve that load; or
211	211	(B) enable the commission to determine
212	212	information relating to market power as provided by Section 39.155;
213	213	and
214	214	(8) to evaluate and monitor the cybersecurity
215	215	preparedness of a municipally owned utility described by Section
216	216	39.1516(a)(3) or (4).
217	217	SECTION 13. Section 41.001, Utilities Code, is amended to
218	218	read as follows:
219	219	Sec. 41.001. APPLICABLE LAW. Notwithstanding any other
220	220	provision of law, except Sections 39.155, 39.157(e), and 39.203,
221	221	[and 39.904,] this chapter governs the transition to and the
222	222	establishment of a fully competitive electric power industry for
223	223	electric cooperatives. Regarding the regulation of electric
224	224	cooperatives, this chapter shall control over any other provision
225	225	of this title, except for sections in which the term "electric
226	226	cooperative" is specifically used.
227	227	SECTION 14. Sections 39.904 and 39.916(g), Utilities Code,
228	228	are repealed.
229	229	SECTION 15. This Act takes effect September 1, 2021.