S.B. No. 1281
AN ACT
relating to a reliability assessment of the ERCOT power grid and
certificates of public convenience and necessity for certain
transmission projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.052, Utilities Code, is amended by
adding Subsection (c) to read as follows:
(c) An electric utility is not required to amend the
utility's certificate of public convenience and necessity to
construct a transmission line that connects the utility's existing
transmission facilities to a substation or metering point if:
(1) the transmission line does not exceed:
(A) three miles in length, if the line connects
to a load-serving substation or metering point; or
(B) two miles in length, if the line connects to a
generation substation or metering point;
(2) each landowner whose property would be directly
affected by the transmission line, as provided by commission rules,
provides written consent for the transmission line; and
(3) all rights-of-way necessary for construction of
the transmission line have been purchased.
SECTION 2. Section 37.056, Utilities Code, is amended by
adding Subsection (c-1) and amending Subsection (d) to read as
follows:
(c-1) In considering the need for additional service under
Subsection (c)(2) for a reliability transmission project that
serves the ERCOT power region, the commission must consider the
historical load, forecasted load growth, and additional load
currently seeking interconnection.
(d) The commission by rule shall establish criteria, in
addition to the criteria described by Subsection (c), for granting
a certificate for a transmission project that serves the ERCOT
power region, that is not necessary to meet state or federal
reliability standards, and that is not included in a plan developed
under Section 39.904(g) [does not serve a competitive renewable
energy zone]. The criteria must include a comparison of the
estimated cost of the transmission project for consumers and the
estimated congestion cost savings for consumers that may result
from the transmission project, considering both current and future
expected congestion levels and the transmission project's ability
to reduce those congestion levels. The commission shall include
with its decision on an application for a certificate to which this
subsection applies findings on the criteria.
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.159 to read as follows:
Sec. 39.159. GRID RELIABILITY ASSESSMENT. (a) The
independent organization certified under Section 39.151 for the
ERCOT power region shall conduct a biennial assessment of the ERCOT
power grid to assess the grid's reliability in extreme weather
scenarios.
(b) Each assessment must:
(1) consider the impact of different levels of thermal
and renewable generation availability; and
(2) recommend transmission projects that may increase
the grid's reliability in extreme weather scenarios.
SECTION 4. The changes in law made by this Act apply only to
a proceeding affecting a certificate of public convenience and
necessity that commences on or after the effective date of this Act.
A proceeding affecting a certificate of public convenience and
necessity that commenced before the effective date of this Act is
governed by the law in effect on the date the proceeding is
commenced, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1281 passed the Senate on
April 19, 2021, by the following vote: Yeas 31, Nays 0;
May 28, 2021, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 28, 2021, House
granted request of the Senate; May 30, 2021, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1281 passed the House, with
amendments, on May 26, 2021, by the following vote: Yeas 142,
Nays 1, two present not voting; May 28, 2021, House granted request
of the Senate for appointment of Conference Committee;
May 30, 2021, House adopted Conference Committee Report by the
following vote: Yeas 137, Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor