Texas 2023 - 88th Regular

Texas House Bill HB1254 Compare Versions

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1	1	88R4533 ANG-F
2	2	By: Darby H.B. No. 1254
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. Section 37.0541, Utilities Code, is amended to
11	11	read as follows:
12	12	Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The
13	13	commission shall consolidate the proceeding on an application to
14	14	obtain or amend a certificate of convenience and necessity for the
15	15	construction of a transmission line with the proceeding on another
16	16	application to obtain or amend a certificate of convenience and
17	17	necessity for the construction of a transmission line if it is
18	18	apparent from the applications or a motion to intervene in either
19	19	proceeding that the transmission lines that are the subject of the
20	20	separate proceedings share a common point of interconnection. [This
21	21	section does not apply to a proceeding on an application for a
22	22	certificate of convenience and necessity for a transmission line to
23	23	serve a competitive renewable energy zone as part of a plan
24	24	developed by the commission under Section 39.904(g)(2).]
25	25	SECTION 2. Section 37.056, Utilities Code, is amended by
26	26	adding Subsections (a-1), (d-1), (d-2), and (d-3) and amending
27	27	Subsection (d) to read as follows:
28	28	(a-1) In this section:
29	29	(1) "Interzonal" means involving more than one ERCOT
30	30	load zone.
31	31	(2) "Intrazonal" means involving a single ERCOT load
32	32	zone.
33	33	(d) The commission by rule shall establish criteria, in
34	34	addition to the criteria described by Subsection (c), for granting
35	35	a certificate for a transmission project that serves the ERCOT
36	36	power region and[,] that is not necessary to meet state or federal
37	37	reliability standards[, and that is not included in a plan
38	38	developed under Section 39.904(g)].
39	39	(d-1) Except as provided by Subsection (d-2), an
40	40	application for a certificate described by Subsection (d) [The
41	41	criteria] must include a comparison of the levelized estimated cost
42	42	of the transmission project [for consumers] and the levelized
43	43	estimated [congestion] cost savings and economic benefits [for
44	44	consumers] that may result from the [transmission] project[,
45	45	considering both current and future expected congestion levels and
46	46	the transmission project's ability to reduce those congestion
47	47	levels]. The commission shall include with the commission's
48	48	decision to grant or deny the certificate the commission's findings
49	49	on the comparison. The comparison must account for:
50	50	(1) the probable improvement of service and reduction
51	51	of costs for consumers that may be realized from the project;
52	52	(2) an estimated value of the reduction in curtailment
53	53	costs that may be realized from the project;
54	54	(3) an estimation of reduced transmission losses that
55	55	may be realized from the project;
56	56	(4) an assessment of whether the project will provide
57	57	improved access to the ERCOT power grid for new generation
58	58	facilities and the benefits that improved access could provide to
59	59	generation facilities, industrial load, and the ERCOT market;
60	60	(5) an estimation of reduced future transmission
61	61	investment costs that may be realized from the project;
62	62	(6) an estimation of costs of projects described by
63	63	Subsection (d-2) that may be avoided as a result of the project; and
64	64	(7) an estimation of direct economic benefits that may
65	65	be realized from the construction of the project [The commission
66	66	shall include with its decision on an application for a certificate
67	67	to which this subsection applies findings on the criteria].
68	68	(d-2) If an application does not include a comparison
69	69	described by Subsection (d-1), the commission may not grant a
70	70	certificate for a project described by Subsection (d) unless the
71	71	commission finds that the project is needed to support a reliable
72	72	and adequate transmission network, to facilitate wholesale
73	73	competition, or to minimize curtailments due to interzonal
74	74	constraints and intrazonal congestion.
75	75	(d-3) Not less than once per year, the independent
76	76	organization certified under Section 39.151 for the ERCOT power
77	77	region shall identify pending applications for transmission
78	78	projects that will meet commission findings under Subsection (d-2).
79	79	SECTION 3. Section 39.904(k), Utilities Code, is amended to
80	80	read as follows:
81	81	(k) The commission and the independent organization
82	82	certified for ERCOT shall study the need for increased transmission
83	83	and generation capacity throughout this state and report to the
84	84	legislature the results of the study and any recommendations for
85	85	legislation. The report must be filed with the legislature not
86	86	later than December 31 of each even-numbered year [and may be filed
87	87	as a part of the report required by Subsection (j)].
88	88	SECTION 4. Subchapter Z, Chapter 39, Utilities Code, is
89	89	amended by adding Section 39.919 to read as follows:
90	90	Sec. 39.919. CRITICAL DESIGNATION TRANSMISSION
91	91	INFRASTRUCTURE PROJECTS. (a) In this section:
92	92	(1) "Interzonal" means involving more than one ERCOT
93	93	load zone.
94	94	(2) "Intrazonal" means involving a single ERCOT load
95	95	zone.
96	96	(b) Not later than December 30, 2023, the independent
97	97	organization certified under Section 39.151 for the ERCOT power
98	98	region shall:
99	99	(1) identify, in consultation with the commission,
100	100	critical designation transmission infrastructure projects and the
101	101	transmission and distribution utilities that will construct and
102	102	operate the projects in a manner consistent with Section 37.056;
103	103	and
104	104	(2) submit a written description of each project to
105	105	the commission.
106	106	(c) Projects identified under Subsection (b) must
107	107	facilitate a timely and targeted expansion of the electric power
108	108	grid in ERCOT for the purposes of:
109	109	(1) resolving existing interzonal and intrazonal
110	110	transmission constraints, congestion, or curtailments, including
111	111	generic transmission constraints; and
112	112	(2) ensuring the future reliability of the ERCOT
113	113	electric power grid.
114	114	(d) To the extent practicable, projects identified under
115	115	Subsection (b) should:
116	116	(1) be cost-effective and designed to transmit high
117	117	volumes of electricity in and across ERCOT load zones efficiently;
118	118	(2) minimize the need for the acquisition of new
119	119	rights-of-way by replacing aging infrastructure or following
120	120	routes that align with existing rights-of-way or existing
121	121	transmission infrastructure;
122	122	(3) minimize interzonal constraints and intrazonal
123	123	congestion during construction activities;
124	124	(4) be designed to accommodate new solutions,
125	125	including higher voltages, if the independent organization
126	126	determines that new solutions are required; and
127	127	(5) be designed to significantly reduce present or
128	128	expected future interzonal constraints and intrazonal congestion.
129	129	(e) The independent organization certified under Section
130	130	39.151 for the ERCOT power region shall identify as a critical
131	131	designation transmission infrastructure project under Subsection
132	132	(b) a project addressing an interzonal constraint or intrazonal
133	133	congestion in an area if:
134	134	(1) the constraint or congestion has been present for
135	135	three years or longer; and
136	136	(2) the area has experienced constraint or congestion
137	137	costs greater than or equal to $100 million per year in each of the
138	138	previous three years.
139	139	(f) The independent organization certified under Section
140	140	39.151 for the ERCOT power region may consult with the independent
141	141	organization's market participant segments and other stakeholders
142	142	to identify projects under Subsection (b) that could facilitate:
143	143	(1) the growth of the economy of this state; or
144	144	(2) oil and gas, commercial, and industrial
145	145	development that could provide substantial new tax revenue,
146	146	landowner income, or new jobs in this state.
147	147	(g) Not later than the 450th day after the date that the
148	148	independent organization certified under Section 39.151 for the
149	149	ERCOT power region submits a written description of a project to the
150	150	commission under Subsection (b), the utility that will construct
151	151	and operate the project shall submit to the commission an
152	152	application for a certificate of public convenience and necessity
153	153	for the project.
154	154	(h) In considering an application for a certificate of
155	155	public convenience and necessity for a project identified under
156	156	Subsection (b), the commission is not required to consider the
157	157	factors provided by Sections 37.056(c)(1) and (2). The commission
158	158	shall consider all factors provided by Section 37.056, including
159	159	Sections 37.056(c)(1) and (2), for a project not identified under
160	160	Subsection (b).
161	161	(i) If the commission issues a certificate of public
162	162	convenience and necessity for a project identified under Subsection
163	163	(b), the commission shall find that the project is used and useful
164	164	to the utility in providing service for purposes of this section,
165	165	prudent, and includable in the rate base, regardless of the extent
166	166	of the utility's actual use of the project.
167	167	(j) Transmission service that is facilitated through a
168	168	project identified under Subsection (b) must be provided in a
169	169	manner consistent with Subchapter A, Chapter 35.
170	170	(k) This section expires September 1, 2032.
171	171	SECTION 5. Sections 39.904(g), (h), (i), and (j), Utilities
172	172	Code, are repealed.
173	173	SECTION 6. The changes in law made by this Act apply only to
174	174	a proceeding affecting a certificate of public convenience and
175	175	necessity that commences on or after the effective date of this Act.
176	176	A proceeding affecting a certificate of public convenience and
177	177	necessity that commenced before the effective date of this Act is
178	178	governed by the law in effect on the date the proceeding is
179	179	commenced, and that law is continued in effect for that purpose.
180	180	SECTION 7. The recovery of a transmission facility
181	181	investment made by an electric utility to serve a competitive
182	182	renewable energy zone is governed by the law in effect on the date
183	183	the facility is placed in service, regardless of whether the
184	184	facility is completed before, on, or after the effective date of
185	185	this Act, and that law is continued in effect for that purpose.
186	186	SECTION 8. This Act takes effect September 1, 2023.