Texas 2025 - 89th Regular

Texas House Bill HB4091 Compare Versions

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

Old	New	Differences
1	1	89R8612 JXC-D
2	2	By: Anchía H.B. No. 4091
3	3
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5	5
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the interconnection of the ERCOT power grid to grids
10	10	outside the ERCOT power region.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 31.002(5), Utilities Code, is amended to
13	13	read as follows:
14	14	(5) "Electric Reliability Council of Texas" or "ERCOT"
15	15	means:
16	16	(A) the area in Texas served by electric
17	17	utilities, municipally owned utilities, and electric cooperatives
18	18	that is not synchronously interconnected with electric utilities
19	19	outside the state; or
20	20	(B) if the commission approves a synchronous
21	21	interconnection under Chapter 39A, an area designated by the
22	22	commission by rule as necessary to administer this subtitle.
23	23	SECTION 2. Subtitle B, Title 2, Utilities Code, is amended
24	24	by adding Chapter 39A to read as follows:
25	25	CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS
26	26	OUTSIDE ERCOT POWER REGION
27	27	Sec. 39A.0101. UTILITY AND COOPERATIVE AUTHORITY.
28	28	Notwithstanding any other law, a transmission and distribution
29	29	utility, municipally owned utility, or electric cooperative that
30	30	transmits or distributes power purchased at wholesale in the ERCOT
31	31	power region may construct, own, and operate facilities as
32	32	necessary to:
33	33	(1) interconnect transmission facilities inside the
34	34	ERCOT power region to transmission facilities outside of the ERCOT
35	35	power region; and
36	36	(2) purchase power at wholesale from outside of the
37	37	ERCOT power region.
38	38	Sec. 39A.0102. SALE AUTHORITY. Notwithstanding any other
39	39	law, an electric utility, electric cooperative, municipally owned
40	40	utility, or power generation company operating in this state may
41	41	sell electric energy at wholesale for retail sale inside or outside
42	42	the ERCOT power region for the purposes of this chapter.
43	43	Sec. 39A.0103. COMMISSION AUTHORITY. (a) The commission
44	44	may request any federal approval necessary for the synchronous or
45	45	nonsynchronous interconnection of a facility described by Section
46	46	39A.0101.
47	47	(b) The commission may require the independent organization
48	48	certified for the ERCOT power region under Section 39.151 to
49	49	approve the synchronous or nonsynchronous interconnection of a
50	50	facility described by Section 39A.0101 unless otherwise provided by
51	51	federal law or the commission or the independent organization
52	52	determines that the interconnection poses a significant and
53	53	imminent risk to public health and safety.
54	54	(c) The commission may provide technical and administrative
55	55	assistance to a transmission and distribution utility, municipally
56	56	owned utility, or electric cooperative seeking to construct, own,
57	57	or operate a facility described by Section 39A.0101.
58	58	(d) The commission shall implement, and shall provide to the
59	59	Federal Energy Regulatory Commission, the Electric Reliability
60	60	Organization as defined by 16 U.S.C. Section 824o, and the
61	61	independent organization certified under Section 39.151 for the
62	62	ERCOT power region any assistance necessary to implement, a
63	63	reliability standard for the purposes of this chapter that requires
64	64	minimum total transfer capabilities between the ERCOT power region
65	65	and other regions as follows:
66	66	(1) 4.3 gigawatts between the area under functional
67	67	control of the independent organization and the area under
68	68	functional control of the Southwest Power Pool;
69	69	(2) 2.5 gigawatts between the area under functional
70	70	control of the independent organization and the area under
71	71	functional control of Midcontinent Independent System Operator;
72	72	and
73	73	(3) 2.6 gigawatts between the area under functional
74	74	control of the independent organization and the Western
75	75	Interconnection.
76	76	(e) The commission shall designate one or more entities
77	77	described by Section 39A.0101 to site and construct new
78	78	transmission facilities or modify existing transmission facilities
79	79	to achieve the minimum total transfer capabilities described by
80	80	Subsection (d) or delegate authority to the independent
81	81	organization certified under Section 39.151 for the ERCOT power
82	82	region to designate the entities.
83	83	(f) Notwithstanding any other law, the commission may
84	84	require an entity designated under Subsection (e) to make requests,
85	85	obtain approvals, enter into contracts, and construct or modify
86	86	facilities as necessary to interconnect a transmission facility
87	87	with a facility outside of ERCOT.
88	88	SECTION 3. Sections 37.051(c-1), (c-2), and (c-3),
89	89	Utilities Code, are redesignated as Section 39A.0104, Utilities
90	90	Code, and amended to read as follows:
91	91	Sec. 39A.0104. CERTIFICATES OF CONVENIENCE AND NECESSITY.
92	92	(a) A transmission and distribution utility, [(c-1)
93	93	Notwithstanding any other provision of this title except Section
94	94	11.009, and except as provided by Subsection (c-2), a person,
95	95	including an electric utility or] municipally owned utility, or
96	96	electric cooperative may not interconnect a facility to the ERCOT
97	97	transmission grid that enables additional power to be imported into
98	98	or exported out of the ERCOT power grid unless the utility or
99	99	cooperative [person] obtains a certificate from the commission in
100	100	the manner provided by Chapter 37 and this chapter stating that the
101	101	interconnection does not pose a significant and imminent risk to
102	102	public health and safety [public convenience and necessity requires
103	103	or will require the interconnection].
104	104	(b) In the case of a conflict between Chapter 37 and this
105	105	chapter, this chapter prevails.
106	106	(c) Sections 37.056(c)(1) and (2) and (d) do not apply to an
107	107	application for a certificate described by Subsection (a).
108	108	(d) The commission may approve an application for a
109	109	certificate described by Subsection (a) unless otherwise provided
110	110	by federal law or the commission determines that granting the
111	111	application poses a significant and imminent risk to public health
112	112	and safety.
113	113	(e) The transmission and distribution utility, municipally
114	114	owned utility, or electric cooperative [person] must apply to the
115	115	commission for a [the] certificate described by Subsection (a) not
116	116	later than the 180th day before the date the utility or cooperative
117	117	[person] seeks any order from the Federal Energy Regulatory
118	118	Commission related to the interconnection.
119	119	(f) [The commission shall apply Section 37.056 in
120	120	considering an application under this subsection. In addition, the
121	121	commission must determine that the application is consistent with
122	122	the public interest before granting the certificate. The commission
123	123	may adopt rules necessary to implement this subsection. This
124	124	subsection does not apply to a facility that is in service on
125	125	December 31, 2014.
126	126	[(c-2)] The commission, not later than the 185th day after
127	127	the date the application is filed, shall approve an application
128	128	[filed under Subsection (c-1)] for a facility that is to be
129	129	constructed under an interconnection agreement appended to an offer
130	130	of settlement approved in a final order of the Federal Energy
131	131	Regulatory Commission that was issued in Docket No. TX11-01-001 on
132	132	or before December 31, 2014, directing physical connection between
133	133	the ERCOT and SERC regions under Sections 210, 211, and 212 of the
134	134	Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In
135	135	approving the application, the commission may prescribe reasonable
136	136	conditions to protect the public interest that are consistent with
137	137	the final order of the Federal Energy Regulatory Commission.
138	138	(g) [(c-3)] Nothing in this section [Subsection (c-1) or
139	139	(c-2)] is intended to restrict the authority of the commission or
140	140	the independent organization certified under Section 39.151 for the
141	141	ERCOT power region to adopt rules or protocols of general
142	142	applicability.
143	143	SECTION 4. This Act takes effect September 1, 2025.