Texas 2023 - 88th Regular

Texas Senate Bill SB2014 Compare Versions

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1	1	By: King, et al. S.B. No. 2014
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the legislature's goals for renewable electric
7	7	generating capacity.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 36.053(d), Utilities Code, is amended to
10	10	read as follows:
11	11	(d) If the commission issues a certificate of convenience
12	12	and necessity or if the commission, acting under the authority
13	13	formerly provided by Section 39.203(e), ordered [orders] an
14	14	electric utility or a transmission and distribution utility to
15	15	construct or enlarge transmission or transmission-related
16	16	facilities to facilitate meeting the goal for generating capacity
17	17	from renewable energy technologies under former Section 39.904(a),
18	18	the commission shall find that the facilities are used and useful to
19	19	the utility in providing service for purposes of this section and
20	20	are prudent and includable in the rate base, regardless of the
21	21	extent of the utility's actual use of the facilities.
22	22	SECTION 2. Section 37.0541, Utilities Code, is amended to
23	23	read as follows:
24	24	Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The
25	25	commission shall consolidate the proceeding on an application to
26	26	obtain or amend a certificate of convenience and necessity for the
27	27	construction of a transmission line with the proceeding on another
28	28	application to obtain or amend a certificate of convenience and
29	29	necessity for the construction of a transmission line if it is
30	30	apparent from the applications or a motion to intervene in either
31	31	proceeding that the transmission lines that are the subject of the
32	32	separate proceedings share a common point of interconnection.
33	33	[This section does not apply to a proceeding on an application for a
34	34	certificate of convenience and necessity for a transmission line to
35	35	serve a competitive renewable energy zone as part of a plan
36	36	developed by the commission under Section 39.904(g)(2).]
37	37	SECTION 3. Sections 37.056(c) and (d), Utilities Code, are
38	38	amended to read as follows:
39	39	(c) The commission shall grant each certificate on a
40	40	nondiscriminatory basis after considering:
41	41	(1) the adequacy of existing service;
42	42	(2) the need for additional service;
43	43	(3) the effect of granting the certificate on the
44	44	recipient of the certificate and any electric utility serving the
45	45	proximate area; and
46	46	(4) other factors, such as:
47	47	(A) community values;
48	48	(B) recreational and park areas;
49	49	(C) historical and aesthetic values;
50	50	(D) environmental integrity; and
51	51	(E) the probable improvement of service or
52	52	lowering of cost to consumers in the area if the certificate is
53	53	granted, including any potential economic or reliability benefits
54	54	associated with dual fuel and fuel storage capabilities in areas
55	55	outside the ERCOT power region[; and
56	56	[(F) to the extent applicable, the effect of
57	57	granting the certificate on the ability of this state to meet the
58	58	goal established by Section 39.904(a) of this title].
59	59	(d) The commission by rule shall establish criteria, in
60	60	addition to the criteria described by Subsection (c), for granting
61	61	a certificate for a transmission project that serves the ERCOT
62	62	power region and[,] that is not necessary to meet state or federal
63	63	reliability standards[, and that is not included in a plan
64	64	developed under Section 39.904(g)]. The criteria must include a
65	65	comparison of the estimated cost of the transmission project for
66	66	consumers and the estimated congestion cost savings for consumers
67	67	that may result from the transmission project, considering both
68	68	current and future expected congestion levels and the transmission
69	69	project's ability to reduce those congestion levels. The
70	70	commission shall include with its decision on an application for a
71	71	certificate to which this subsection applies findings on the
72	72	criteria.
73	73	SECTION 4. Section 39.002, Utilities Code, as amended by
74	74	Chapters 908 (H.B. 4492) and 950 (S.B. 1580), Acts of the 87th
75	75	Legislature, Regular Session, 2021, is reenacted and amended to
76	76	read as follows:
77	77	Sec. 39.002. APPLICABILITY. This chapter, other than
78	78	Sections 39.151, 39.1516, 39.155, 39.157(e), 39.159, 39.160,
79	79	39.203, [39.904,] 39.9051, 39.9052, and 39.914(e), and Subchapters
80	80	M and N, does not apply to a municipally owned utility or an
81	81	electric cooperative. Sections 39.157(e) and[,] 39.203[, and
82	82	39.904, however,] apply only to a municipally owned utility or an
83	83	electric cooperative that is offering customer choice. If there is
84	84	a conflict between the specific provisions of this chapter and any
85	85	other provisions of this title, except for Chapters 40 and 41, the
86	86	provisions of this chapter control.
87	87	SECTION 5. Section 39.203(e), Utilities Code, is amended to
88	88	read as follows:
89	89	(e) The commission may require an electric utility or a
90	90	transmission and distribution utility to construct or enlarge
91	91	facilities to ensure safe and reliable service for the state's
92	92	electric markets and to reduce transmission constraints within
93	93	ERCOT in a cost-effective manner where the constraints are such
94	94	that they are not being resolved through Chapter 37 or the ERCOT
95	95	transmission planning process. [The commission shall require an
96	96	electric utility or a transmission and distribution utility to
97	97	construct or enlarge transmission or transmission-related
98	98	facilities for the purpose of meeting the goal for generating
99	99	capacity from renewable energy technologies under Section
100	100	39.904(a).] In any proceeding brought under Chapter 37, an
101	101	electric utility or transmission and distribution utility ordered
102	102	to construct or enlarge facilities under this subchapter need not
103	103	prove that the construction ordered is necessary for the service,
104	104	accommodation, convenience, or safety of the public and need not
105	105	address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E).
106	106	Notwithstanding any other law, including Section 37.057, in any
107	107	proceeding brought under Chapter 37 by an electric utility or a
108	108	transmission and distribution utility related to an application for
109	109	a certificate of public convenience and necessity to construct or
110	110	enlarge transmission or transmission-related facilities under this
111	111	subsection, the commission shall issue a final order before the
112	112	181st day after the date the application is filed with the
113	113	commission. If the commission does not issue a final order before
114	114	that date, the application is approved.
115	115	SECTION 6. Section 39.402(a), Utilities Code, is amended to
116	116	read as follows:
117	117	(a) Until the date on which an electric utility subject to
118	118	this subchapter is authorized by the commission to implement
119	119	customer choice, the rates of the utility shall be regulated under
120	120	traditional cost of service regulation and the utility is subject
121	121	to all applicable regulatory authority prescribed by this subtitle
122	122	and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until the
123	123	date on which an electric utility subject to this subchapter
124	124	implements customer choice, the provisions of this chapter, other
125	125	than this subchapter, Sections 39.1516[, 39.904,] and 39.905, and
126	126	the provisions relating to the duty to obtain a permit from the
127	127	Texas Commission on Environmental Quality for an electric
128	128	generating facility and to reduce emissions from an electric
129	129	generating facility, shall not apply to that utility. That portion
130	130	of any commission order entered before September 1, 2001, to comply
131	131	with this subchapter shall be null and void.
132	132	SECTION 7. Section 39.452(d), Utilities Code, is amended to
133	133	read as follows:
134	134	(d) Until the date on which an electric utility subject to
135	135	this subchapter implements customer choice:
136	136	(1) the provisions of this chapter do not apply to that
137	137	electric utility, other than this subchapter, Sections 39.1516[,
138	138	39.904,] and 39.905, the provisions relating to the duty to obtain a
139	139	permit from the Texas Commission on Environmental Quality for an
140	140	electric generating facility and to reduce emissions from an
141	141	electric generating facility, and the provisions of Subchapter G
142	142	that pertain to the recovery and securitization of hurricane
143	143	reconstruction costs authorized by Sections 39.458-39.463; and
144	144	(2) the electric utility is not subject to a rate
145	145	freeze and, subject to the limitation provided by Subsection (b),
146	146	may file for rate changes under Chapter 36 and for approval of one
147	147	or more of the rate rider mechanisms authorized by Sections 39.454
148	148	and 39.455.
149	149	SECTION 8. Section 39.502(b), Utilities Code, is amended to
150	150	read as follows:
151	151	(b) Until the date on which an electric utility subject to
152	152	this subchapter implements customer choice, the provisions of this
153	153	chapter, other than this subchapter and Sections 39.1516[, 39.904,]
154	154	and 39.905, do not apply to that utility.
155	155	SECTION 9. Section 39.552(b), Utilities Code, is amended to
156	156	read as follows:
157	157	(b) Until the date on which an electric utility subject to
158	158	this subchapter implements customer choice, the provisions of this
159	159	chapter, other than this subchapter and Sections 39.1516[, 39.904,]
160	160	and 39.905, do not apply to that utility.
161	161	SECTION 10. Subchapter Z, Chapter 39, Utilities Code, is
162	162	amended by adding Sections 39.9111, 39.9112, and 39.9113 to read as
163	163	follows:
164	164	Sec. 39.9111. RULES RELATED TO RENEWABLE POWER FACILITIES.
165	165	The commission may adopt rules requiring renewable power facilities
166	166	to have reactive power control capabilities or any other feasible
167	167	technology designed to reduce the facilities' effects on system
168	168	reliability.
169	169	Sec. 39.9112. REPORT ON TRANSMISSION AND GENERATION
170	170	CAPACITY. The commission and the independent organization
171	171	certified under Section 39.151 for the ERCOT power region shall
172	172	study the need for increased transmission and generation capacity
173	173	throughout this state and report to the legislature the results of
174	174	the study and any recommendations for legislation. The report must
175	175	be filed with the legislature not later than December 31 of each
176	176	even-numbered year.
177	177	Sec. 39.9113. RENEWABLE ENERGY CREDITS. To facilitate
178	178	voluntary contractual obligations and verify claims regarding
179	179	environmental attributes of renewable energy production in this
180	180	state, the independent organization certified under Section 39.151
181	181	for the ERCOT power region shall maintain an accreditation and
182	182	banking system to award and track voluntary renewable energy
183	183	credits generated by eligible facilities.
184	184	SECTION 11. Section 39.916(a), Utilities Code, is amended
185	185	by amending Subdivision (1) and adding Subdivision (4) to read as
186	186	follows:
187	187	(1) "Distributed renewable generation" means electric
188	188	generation with a capacity of not more than 2,000 kilowatts
189	189	provided by a renewable energy technology[, as defined by Section
190	190	39.904,] that is installed on a retail electric customer's side of
191	191	the meter.
192	192	(4) "Renewable energy technology" means any
193	193	technology that relies exclusively on an energy source that is
194	194	naturally regenerated over a short time and is derived from the sun
195	195	directly or indirectly or from moving water or other natural
196	196	movements or mechanisms of the environment. The term includes a
197	197	technology that relies on energy derived from the sun directly, on
198	198	wind, geothermal, hydroelectric, wave, or tidal energy, or on
199	199	biomass or biomass-based waste products, including landfill gas.
200	200	The term does not include a technology that relies on an energy
201	201	resource derived from a fossil fuel, a waste product from a fossil
202	202	fuel, or a waste product from an inorganic source.
203	203	SECTION 12. Section 40.001(a), Utilities Code, is amended
204	204	to read as follows:
205	205	(a) Notwithstanding any other provision of law, except
206	206	Sections 39.155, 39.157(e), and 39.203, [and 39.904,] this chapter
207	207	governs the transition to and the establishment of a fully
208	208	competitive electric power industry for municipally owned
209	209	utilities. With respect to the regulation of municipally owned
210	210	utilities, this chapter controls over any other provision of this
211	211	title, except for sections in which the term "municipally owned
212	212	utility" is specifically used.
213	213	SECTION 13. Section 40.004, Utilities Code, is amended to
214	214	read as follows:
215	215	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
216	216	specifically otherwise provided in this chapter, the commission has
217	217	jurisdiction over municipally owned utilities only for the
218	218	following purposes:
219	219	(1) to regulate wholesale transmission rates and
220	220	service, including terms of access, to the extent provided by
221	221	Subchapter A, Chapter 35;
222	222	(2) to regulate certification of retail service areas
223	223	to the extent provided by Chapter 37;
224	224	(3) to regulate rates on appeal under Subchapters D
225	225	and E, Chapter 33, subject to Section 40.051(c);
226	226	(4) to establish a code of conduct as provided by
227	227	Section 39.157(e) applicable to anticompetitive activities and to
228	228	affiliate activities limited to structurally unbundled affiliates
229	229	of municipally owned utilities, subject to Section 40.054;
230	230	(5) to establish terms and conditions for open access
231	231	to transmission and distribution facilities for municipally owned
232	232	utilities providing customer choice, as provided by Section 39.203;
233	233	(6) to administer [the renewable energy credits
234	234	program under Section 39.904(b) and] the natural gas energy credits
235	235	program under Section 39.9044(b);
236	236	(7) to require reports of municipally owned utility
237	237	operations only to the extent necessary to:
238	238	(A) enable the commission to determine the
239	239	aggregate load and energy requirements of the state and the
240	240	resources available to serve that load; or
241	241	(B) enable the commission to determine
242	242	information relating to market power as provided by Section 39.155;
243	243	and
244	244	(8) to evaluate and monitor the cybersecurity
245	245	preparedness of a municipally owned utility described by Section
246	246	39.1516(a)(3) or (4).
247	247	SECTION 14. Section 41.001, Utilities Code, is amended to
248	248	read as follows:
249	249	Sec. 41.001. APPLICABLE LAW. Notwithstanding any other
250	250	provision of law, except Sections 39.155, 39.157(e), and 39.203,
251	251	[and 39.904,] this chapter governs the transition to and the
252	252	establishment of a fully competitive electric power industry for
253	253	electric cooperatives. Regarding the regulation of electric
254	254	cooperatives, this chapter shall control over any other provision
255	255	of this title, except for sections in which the term "electric
256	256	cooperative" is specifically used.
257	257	SECTION 15. Sections 39.904 and 39.916(g), Utilities Code,
258	258	are repealed.
259	259	SECTION 16. It is the intent of the 88th Legislature,
260	260	Regular Session, 2023, that the amendments made by this Act be
261	261	harmonized with another Act of the 88th Legislature, Regular
262	262	Session, 2023, relating to nonsubstantive additions to and
263	263	corrections in enacted codes.
264	264	SECTION 17. This Act takes effect September 1, 2023.