Bill Text: TX SB1325 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to certificates of public convenience and necessity for certain transmission projects.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2021-03-25 - Co-author authorized [SB1325 Detail]
Download: Texas-2021-SB1325-Introduced.html
87R7740 BRG-F | ||
By: Hinojosa | S.B. No. 1325 |
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relating to certificates of public convenience and necessity for | ||
certain transmission projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The legislature finds that: | ||
(1) this state has long been a leader in energy policy | ||
that has delivered economic, electricity, and environmental | ||
benefits to millions of electricity consumers, businesses, | ||
state-owned lands, and landowners; | ||
(2) this state continues to experience population, | ||
business, industrial, and manufacturing growth that increases the | ||
need for reliable, low-cost electricity; | ||
(3) the ERCOT electric power grid is experiencing | ||
increased levels of congestion, constraint, and curtailment that | ||
are economically undesirable; | ||
(4) the ERCOT electric power grid is experiencing load | ||
growth management challenges; | ||
(5) while this state does not import large amounts of | ||
electricity, working to ensure that this state's electricity needs | ||
are met as fully as possible from in-state resources is of strategic | ||
interest to the legislature; | ||
(6) the electric power industry, including its wind | ||
and solar generation, energy storage, and transmission components, | ||
can play a substantial role in this state's economic recovery; | ||
(7) this state's oil and natural gas industries | ||
continue to grow and prosper, and those industries require low-cost | ||
electricity and a reliable electric power grid to thrive; and | ||
(8) to attract new capital projects to this state, | ||
create jobs, promote substantial new economic development, ensure a | ||
reliable and stable electric power grid that is powered by in-state | ||
resources, and keep this state as a leader on energy policy in the | ||
United States, a timely and targeted expansion of this state's | ||
electric transmission system is necessary to enhance the | ||
reliability of the system. | ||
SECTION 2. Section 37.0541, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The | ||
commission shall consolidate the proceeding on an application to | ||
obtain or amend a certificate of convenience and necessity for the | ||
construction of a transmission line with the proceeding on another | ||
application to obtain or amend a certificate of convenience and | ||
necessity for the construction of a transmission line if it is | ||
apparent from the applications or a motion to intervene in either | ||
proceeding that the transmission lines that are the subject of the | ||
separate proceedings share a common point of interconnection. [ |
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SECTION 3. Section 37.056, Utilities Code, is amended by | ||
amending Subsection (d) and adding Subsections (d-1), (d-2), and | ||
(d-3) to read as follows: | ||
(d) The commission by rule shall establish criteria, in | ||
addition to the criteria described by Subsection (c), for granting | ||
a certificate for a transmission project that serves the ERCOT | ||
power region and[ |
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reliability standards[ |
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(d-1) Except as provided by Subsection (d-2), an | ||
application for a certificate described by Subsection (d) [ |
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of the transmission project and the estimated cost savings and | ||
economic benefits that may result from the [ |
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The commission shall include with the commission's decision to | ||
grant or deny the certificate the commission's findings on the | ||
comparison. The comparison must account for: | ||
(1) the probable improvement of service or reduction | ||
of costs for consumers that may be realized from the project; | ||
(2) an estimated value for reduced congestion and | ||
curtailments that may be realized from the project; | ||
(3) an estimation of reduced transmission losses that | ||
may be realized from the project; | ||
(4) an assessment of the effect on sufficient access | ||
to the ERCOT power region market by new electric power generation | ||
that may be realized from the project; | ||
(5) an estimation of reduced future transmission | ||
investment costs that may be realized from the project; | ||
(6) an estimation of costs of projects described by | ||
Subsection (d-2) that may be avoided as a result of the project; and | ||
(7) an estimation of direct economic benefits that may | ||
be realized from the construction of the project [ |
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(d-2) If an application does not include a comparison | ||
described by Subsection (d-1), the commission may not grant a | ||
certificate for a project described by Subsection (d) unless the | ||
commission finds that the project is needed to support a reliable | ||
and adequate transmission network and to facilitate robust | ||
wholesale competition and minimize curtailments due to congestion. | ||
(d-3) Not less than once per year, the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region shall identify transmission projects that will meet | ||
commission findings under Subsection (d-2). | ||
SECTION 4. Section 39.904(k), Utilities Code, is amended to | ||
read as follows: | ||
(k) The commission and the independent organization | ||
certified for ERCOT shall study the need for increased transmission | ||
and generation capacity throughout this state and report to the | ||
legislature the results of the study and any recommendations for | ||
legislation. The report must be filed with the legislature not | ||
later than December 31 of each even-numbered year [ |
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SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.918 to read as follows: | ||
Sec. 39.918. CRITICAL DESIGNATION TRANSMISSION | ||
INFRASTRUCTURE PROJECTS. (a) Not later than December 30, 2021, the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region shall: | ||
(1) identify, in consultation with the commission, | ||
critical designation transmission infrastructure projects and the | ||
electric utilities or transmission and distribution utilities that | ||
will construct and operate the projects; and | ||
(2) submit a written description of each project to | ||
the commission. | ||
(b) Projects identified under Subsection (a) must | ||
facilitate a timely and targeted expansion of the electric power | ||
grid in ERCOT for the purposes of: | ||
(1) resolving existing transmission congestion, | ||
constraints, and curtailments, including generic transmission | ||
constraints; and | ||
(2) ensuring the future reliability of the ERCOT | ||
electric power grid. | ||
(c) To the extent practicable, projects identified under | ||
Subsection (a) should: | ||
(1) be cost-effective and designed to transmit high | ||
volumes of electricity across ERCOT regions efficiently; | ||
(2) replace aging infrastructure or follow routes that | ||
align with existing rights-of-way or existing transmission | ||
infrastructure; | ||
(3) be designed to accommodate circuit voltages of 500 | ||
kilovolts or greater, including high voltage direct current | ||
circuits; and | ||
(4) be designed to reduce significantly present or | ||
expected future congestion between ERCOT load zones and between | ||
ERCOT weather zones, including between: | ||
(A) the ERCOT Far West weather zone and the ERCOT | ||
North Central weather zone; | ||
(B) the ERCOT West load zone and the ERCOT North | ||
load zone; | ||
(C) the ERCOT South weather zone and the ERCOT | ||
North Central weather zone; | ||
(D) the ERCOT North load zone and the ERCOT | ||
Houston load zone; and | ||
(E) the ERCOT South load zone and the ERCOT | ||
Houston load zone. | ||
(d) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall consult with a | ||
representative of the comptroller and a representative of the Texas | ||
Economic Development and Tourism Office to identify projects under | ||
Subsection (a) that would facilitate the growth of the economy of | ||
this state, including oil and gas, commercial, and industrial | ||
development that will provide substantial new tax revenue, | ||
landowner income, or new jobs in this state. | ||
(e) Not later than 450 days after the date that the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region submits a written description of a project to the | ||
commission under Subsection (a), the utility that will construct | ||
and operate the project shall submit to the commission an | ||
application for a certificate of public convenience and necessity | ||
for the project. | ||
(f) In considering an application for a certificate of | ||
public convenience and necessity for a project identified under | ||
Subsection (a), the commission is not required to consider the | ||
factors provided by Sections 37.056(c)(1) and (2). The commission | ||
shall consider all factors provided by Section 37.056, including | ||
Sections 37.056(c)(1) and (2), for a project not identified under | ||
Subsection (a). | ||
(g) If the commission issues a certificate of public | ||
convenience and necessity for a project identified under Subsection | ||
(a), the commission shall find that the project is used and useful | ||
to the utility in providing service for purposes of this section, | ||
prudent, and includable in the rate base, regardless of the extent | ||
of the utility's actual use of the project. | ||
(h) Transmission service that is facilitated through a | ||
project identified under Subsection (a) must be provided in a | ||
manner consistent with Subchapter A, Chapter 35. | ||
(i) This section expires September 1, 2030. | ||
SECTION 6. Sections 39.904(g), (h), (i), and (j), Utilities | ||
Code, are repealed. | ||
SECTION 7. The changes in law made by this Act apply only to | ||
a proceeding affecting a certificate of public convenience and | ||
necessity that commences on or after the effective date of this Act. | ||
A proceeding affecting a certificate of public convenience and | ||
necessity that commenced before the effective date of this Act is | ||
governed by the law in effect on the date the proceeding is | ||
commenced, and that law is continued in effect for that purpose. | ||
SECTION 8. The recovery of a transmission facility | ||
investment made by an electric utility to serve a competitive | ||
renewable energy zone is governed by the law in effect on the date | ||
the facility is placed in service, regardless of whether the | ||
facility is completed before, on, or after the effective date of | ||
this Act, and that law is continued in effect for that purpose. | ||
SECTION 9. This Act takes effect September 1, 2021. |