Texas 2023 - 88th Regular

Texas House Bill HB5297 Compare Versions

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Version 2 (New)

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1	1	88R14140 JXC-D
2	2	By: Bryant H.B. No. 5297
3	3
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5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the interconnection of the ERCOT power grid to grids
8	8	outside the ERCOT power region.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
11	11	by adding Chapter 39A to read as follows:
12	12	CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS
13	13	OUTSIDE ERCOT POWER REGION
14	14	Sec. 39A.0101. UTILITY AND COOPERATIVE AUTHORITY.
15	15	Notwithstanding any other law, a transmission and distribution
16	16	utility, municipally owned utility, or electric cooperative that
17	17	transmits or distributes power purchased at wholesale in the ERCOT
18	18	power region may construct, own, and operate facilities as
19	19	necessary to:
20	20	(1) access transmission service from outside of the
21	21	ERCOT power region; and
22	22	(2) purchase power at wholesale from outside of the
23	23	ERCOT power region.
24	24	Sec. 39A.0102. COMMISSION AUTHORITY. (a) The commission
25	25	may request any federal approval necessary for the interconnection
26	26	of a facility described by Section 39A.0101.
27	27	(b) Unless otherwise provided by federal law, the
28	28	commission shall require the independent organization certified
29	29	for the ERCOT power region under Section 39.151 to approve the
30	30	interconnection of a facility described by Section 39A.0101 unless
31	31	the commission or the independent organization determines that the
32	32	interconnection poses a significant and imminent risk to public
33	33	health and safety.
34	34	(c) The commission may provide technical and administrative
35	35	assistance to a transmission and distribution utility, municipally
36	36	owned utility, or electric cooperative seeking to construct, own,
37	37	or operate a facility described by Section 39A.0101.
38	38	(d) The commission may approve wholesale electricity
39	39	transactions between entities in the ERCOT power region and
40	40	entities outside the ERCOT power region.
41	41	Sec. 39A.0103. SYNCHRONOUS AND NON-SYNCHRONOUS
42	42	INTERCONNECTIONS. (a) This chapter applies to synchronous and
43	43	non-synchronous interconnections.
44	44	(b) Unless otherwise provided by federal law, the
45	45	commission shall approve an application for a certificate of
46	46	convenience and necessity submitted under Section 39A.0104 by a
47	47	transmission and distribution utility, municipally owned utility,
48	48	or electric cooperative for a facility that would synchronously
49	49	interconnect to a facility outside the ERCOT power region if the
50	50	application complies with all applicable provisions of Chapter 37
51	51	and this chapter.
52	52	SECTION 2. Sections 37.051(c-1), (c-2), and (c-3),
53	53	Utilities Code, are redesignated as Section 39A.0104, Utilities
54	54	Code, and amended to read as follows:
55	55	Sec. 39A.0104. CERTIFICATES OF CONVENIENCE AND NECESSITY.
56	56	(a) A transmission and distribution utility, [(c-1)
57	57	Notwithstanding any other provision of this title except Section
58	58	11.009, and except as provided by Subsection (c-2), a person,
59	59	including an electric utility or] municipally owned utility, or
60	60	electric cooperative may not interconnect a facility described by
61	61	Section 39A.0101 [to the ERCOT transmission grid that enables
62	62	additional power to be imported into or exported out of the ERCOT
63	63	power grid] unless the utility or cooperative [person] obtains a
64	64	certificate from the commission in the manner provided by Chapter
65	65	37 and this chapter stating that the interconnection does not pose a
66	66	significant and imminent risk to public health and safety [public
67	67	convenience and necessity requires or will require the
68	68	interconnection].
69	69	(b) In the case of a conflict between Chapter 37 and this
70	70	chapter, this chapter prevails.
71	71	(c) Sections 37.056(c)(1) and (2) and (d) do not apply to an
72	72	application for a certificate described by Subsection (a).
73	73	(d) Unless otherwise provided by federal law, the
74	74	commission shall approve an application for a certificate described
75	75	by Subsection (a) unless the commission determines that granting
76	76	the application poses a significant and imminent risk to public
77	77	health and safety.
78	78	(e) The transmission and distribution utility, municipally
79	79	owned utility, or electric cooperative [person] must apply to the
80	80	commission for a [the] certificate described by Subsection (a) not
81	81	later than the 180th day before the date the utility or cooperative
82	82	[person] seeks any order from the Federal Energy Regulatory
83	83	Commission related to the interconnection.
84	84	(f) [The commission shall apply Section 37.056 in
85	85	considering an application under this subsection. In addition, the
86	86	commission must determine that the application is consistent with
87	87	the public interest before granting the certificate. The commission
88	88	may adopt rules necessary to implement this subsection. This
89	89	subsection does not apply to a facility that is in service on
90	90	December 31, 2014.
91	91	[(c-2)] The commission, not later than the 185th day after
92	92	the date the application is filed, shall approve an application
93	93	[filed under Subsection (c-1)] for a facility that is to be
94	94	constructed under an interconnection agreement appended to an offer
95	95	of settlement approved in a final order of the Federal Energy
96	96	Regulatory Commission that was issued in Docket No. TX11-01-001 on
97	97	or before December 31, 2014, directing physical connection between
98	98	the ERCOT and SERC regions under Sections 210, 211, and 212 of the
99	99	Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In
100	100	approving the application, the commission may prescribe reasonable
101	101	conditions to protect the public interest that are consistent with
102	102	the final order of the Federal Energy Regulatory Commission.
103	103	(g) [(c-3)] Nothing in this section [Subsection (c-1) or
104	104	(c-2)] is intended to restrict the authority of the commission or
105	105	the independent organization certified under Section 39.151 for the
106	106	ERCOT power region to adopt rules or protocols of general
107	107	applicability.
108	108	SECTION 3. (a) It is the intent of the legislature that the
109	109	ERCOT power region become synchronously interconnected to other
110	110	power regions not later than December 31, 2030.
111	111	(b) Not later than October 1, 2024, the Public Utility
112	112	Commission of Texas shall examine the laws and rules governing the
113	113	entities and facilities described by Section 39A.0101, Utilities
114	114	Code, as added by this Act, and submit a report to the legislature
115	115	with recommendations for legislative and administrative action
116	116	needed to facilitate the interconnection of facilities in the ERCOT
117	117	power region with other power regions.
118	118	(c) Not later than October 1, 2024, the comptroller of
119	119	public accounts shall conduct a study on the costs to the public and
120	120	this state of the power outages that occurred as a result of Winter
121	121	Storm Uri. The study must include an estimate of the average cost
122	122	per household in the ERCOT power region and a comparison of those
123	123	costs to costs incurred by households in other states that
124	124	experienced power outages from Winter Storm Uri.
125	125	SECTION 4. This Act takes effect September 1, 2023.