Texas 2021 - 87th Regular

Texas Senate Bill SB1325 Compare Versions

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

Old	New	Differences
1	1	87R7740 BRG-F
2	2	By: Hinojosa S.B. No. 1325
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to certificates of public convenience and necessity for
8	8	certain transmission projects.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The legislature finds that:
11	11	(1) this state has long been a leader in energy policy
12	12	that has delivered economic, electricity, and environmental
13	13	benefits to millions of electricity consumers, businesses,
14	14	state-owned lands, and landowners;
15	15	(2) this state continues to experience population,
16	16	business, industrial, and manufacturing growth that increases the
17	17	need for reliable, low-cost electricity;
18	18	(3) the ERCOT electric power grid is experiencing
19	19	increased levels of congestion, constraint, and curtailment that
20	20	are economically undesirable;
21	21	(4) the ERCOT electric power grid is experiencing load
22	22	growth management challenges;
23	23	(5) while this state does not import large amounts of
24	24	electricity, working to ensure that this state's electricity needs
25	25	are met as fully as possible from in-state resources is of strategic
26	26	interest to the legislature;
27	27	(6) the electric power industry, including its wind
28	28	and solar generation, energy storage, and transmission components,
29	29	can play a substantial role in this state's economic recovery;
30	30	(7) this state's oil and natural gas industries
31	31	continue to grow and prosper, and those industries require low-cost
32	32	electricity and a reliable electric power grid to thrive; and
33	33	(8) to attract new capital projects to this state,
34	34	create jobs, promote substantial new economic development, ensure a
35	35	reliable and stable electric power grid that is powered by in-state
36	36	resources, and keep this state as a leader on energy policy in the
37	37	United States, a timely and targeted expansion of this state's
38	38	electric transmission system is necessary to enhance the
39	39	reliability of the system.
40	40	SECTION 2. 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. [This
51	51	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 3. Section 37.056, Utilities Code, is amended by
56	56	amending Subsection (d) and adding Subsections (d-1), (d-2), and
57	57	(d-3) to read as follows:
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].
64	64	(d-1) Except as provided by Subsection (d-2), an
65	65	application for a certificate described by Subsection (d) [The
66	66	criteria] must include a comparison of the levelized estimated cost
67	67	of the transmission project and the estimated cost savings and
68	68	economic benefits that may result from the [transmission] project.
69	69	The commission shall include with the commission's decision to
70	70	grant or deny the certificate the commission's findings on the
71	71	comparison. The comparison must account for:
72	72	(1) the probable improvement of service or reduction
73	73	of costs for consumers that may be realized from the project;
74	74	(2) an estimated value for reduced congestion and
75	75	curtailments that may be realized from the project;
76	76	(3) an estimation of reduced transmission losses that
77	77	may be realized from the project;
78	78	(4) an assessment of the effect on sufficient access
79	79	to the ERCOT power region market by new electric power generation
80	80	that may be realized from the project;
81	81	(5) an estimation of reduced future transmission
82	82	investment costs that may be realized from the project;
83	83	(6) an estimation of costs of projects described by
84	84	Subsection (d-2) that may be avoided as a result of the project; and
85	85	(7) an estimation of direct economic benefits that may
86	86	be realized from the construction of the project [The commission
87	87	shall include with its decision on an application for a certificate
88	88	to which this subsection applies findings on the criteria].
89	89	(d-2) If an application does not include a comparison
90	90	described by Subsection (d-1), the commission may not grant a
91	91	certificate for a project described by Subsection (d) unless the
92	92	commission finds that the project is needed to support a reliable
93	93	and adequate transmission network and to facilitate robust
94	94	wholesale competition and minimize curtailments due to congestion.
95	95	(d-3) Not less than once per year, the independent
96	96	organization certified under Section 39.151 for the ERCOT power
97	97	region shall identify transmission projects that will meet
98	98	commission findings under Subsection (d-2).
99	99	SECTION 4. Section 39.904(k), Utilities Code, is amended to
100	100	read as follows:
101	101	(k) The commission and the independent organization
102	102	certified for ERCOT shall study the need for increased transmission
103	103	and generation capacity throughout this state and report to the
104	104	legislature the results of the study and any recommendations for
105	105	legislation. The report must be filed with the legislature not
106	106	later than December 31 of each even-numbered year [and may be filed
107	107	as a part of the report required by Subsection (j)].
108	108	SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
109	109	amended by adding Section 39.918 to read as follows:
110	110	Sec. 39.918. CRITICAL DESIGNATION TRANSMISSION
111	111	INFRASTRUCTURE PROJECTS. (a) Not later than December 30, 2021, the
112	112	independent organization certified under Section 39.151 for the
113	113	ERCOT power region shall:
114	114	(1) identify, in consultation with the commission,
115	115	critical designation transmission infrastructure projects and the
116	116	electric utilities or transmission and distribution utilities that
117	117	will construct and operate the projects; and
118	118	(2) submit a written description of each project to
119	119	the commission.
120	120	(b) Projects identified under Subsection (a) must
121	121	facilitate a timely and targeted expansion of the electric power
122	122	grid in ERCOT for the purposes of:
123	123	(1) resolving existing transmission congestion,
124	124	constraints, and curtailments, including generic transmission
125	125	constraints; and
126	126	(2) ensuring the future reliability of the ERCOT
127	127	electric power grid.
128	128	(c) To the extent practicable, projects identified under
129	129	Subsection (a) should:
130	130	(1) be cost-effective and designed to transmit high
131	131	volumes of electricity across ERCOT regions efficiently;
132	132	(2) replace aging infrastructure or follow routes that
133	133	align with existing rights-of-way or existing transmission
134	134	infrastructure;
135	135	(3) be designed to accommodate circuit voltages of 500
136	136	kilovolts or greater, including high voltage direct current
137	137	circuits; and
138	138	(4) be designed to reduce significantly present or
139	139	expected future congestion between ERCOT load zones and between
140	140	ERCOT weather zones, including between:
141	141	(A) the ERCOT Far West weather zone and the ERCOT
142	142	North Central weather zone;
143	143	(B) the ERCOT West load zone and the ERCOT North
144	144	load zone;
145	145	(C) the ERCOT South weather zone and the ERCOT
146	146	North Central weather zone;
147	147	(D) the ERCOT North load zone and the ERCOT
148	148	Houston load zone; and
149	149	(E) the ERCOT South load zone and the ERCOT
150	150	Houston load zone.
151	151	(d) The independent organization certified under Section
152	152	39.151 for the ERCOT power region shall consult with a
153	153	representative of the comptroller and a representative of the Texas
154	154	Economic Development and Tourism Office to identify projects under
155	155	Subsection (a) that would facilitate the growth of the economy of
156	156	this state, including oil and gas, commercial, and industrial
157	157	development that will provide substantial new tax revenue,
158	158	landowner income, or new jobs in this state.
159	159	(e) Not later than 450 days after the date that the
160	160	independent organization certified under Section 39.151 for the
161	161	ERCOT power region submits a written description of a project to the
162	162	commission under Subsection (a), the utility that will construct
163	163	and operate the project shall submit to the commission an
164	164	application for a certificate of public convenience and necessity
165	165	for the project.
166	166	(f) In considering an application for a certificate of
167	167	public convenience and necessity for a project identified under
168	168	Subsection (a), the commission is not required to consider the
169	169	factors provided by Sections 37.056(c)(1) and (2). The commission
170	170	shall consider all factors provided by Section 37.056, including
171	171	Sections 37.056(c)(1) and (2), for a project not identified under
172	172	Subsection (a).
173	173	(g) If the commission issues a certificate of public
174	174	convenience and necessity for a project identified under Subsection
175	175	(a), the commission shall find that the project is used and useful
176	176	to the utility in providing service for purposes of this section,
177	177	prudent, and includable in the rate base, regardless of the extent
178	178	of the utility's actual use of the project.
179	179	(h) Transmission service that is facilitated through a
180	180	project identified under Subsection (a) must be provided in a
181	181	manner consistent with Subchapter A, Chapter 35.
182	182	(i) This section expires September 1, 2030.
183	183	SECTION 6. Sections 39.904(g), (h), (i), and (j), Utilities
184	184	Code, are repealed.
185	185	SECTION 7. The changes in law made by this Act apply only to
186	186	a proceeding affecting a certificate of public convenience and
187	187	necessity that commences on or after the effective date of this Act.
188	188	A proceeding affecting a certificate of public convenience and
189	189	necessity that commenced before the effective date of this Act is
190	190	governed by the law in effect on the date the proceeding is
191	191	commenced, and that law is continued in effect for that purpose.
192	192	SECTION 8. The recovery of a transmission facility
193	193	investment made by an electric utility to serve a competitive
194	194	renewable energy zone is governed by the law in effect on the date
195	195	the facility is placed in service, regardless of whether the
196	196	facility is completed before, on, or after the effective date of
197	197	this Act, and that law is continued in effect for that purpose.
198	198	SECTION 9. This Act takes effect September 1, 2021.