Bill Text: TX SB1978 | 2025-2026 | 89th Legislature | Engrossed

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Bill Title: Relating to the interconnection of a facility in the ERCOT power region to certain other facilities.

Sponsorship: Partisan Bill (Republican 3)

Status: (Engrossed - Dead) 2025-05-23 - Referred to State Affairs [SB1978 Detail]

Download: Texas-2025-SB1978-Engrossed.html

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By: Hall, Hughes S.B. No. 1978
Kolkhorst

A BILL TO BE ENTITLED
AN ACT
relating to the interconnection of a facility in the ERCOT power
region to certain other facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.051, Utilities Code, is amended by
amending Subsections (c), (c-1), (c-2), and (c-3) and adding
Subsection (c-4) to read as follows:
(c) Notwithstanding any other provision of this chapter
except Subsection (c-1)[, including Subsection (a)], an electric
cooperative is not required to obtain a certificate of public
convenience and necessity for the construction, installation,
operation, or extension of any generating facilities or necessary
interconnection facilities.
(c-1) In this subsection, "facility" means a facility that
consumes, generates, transmits, or distributes electricity.
Notwithstanding any other provision of this title except Section
11.009, and except as provided by Subsection (c-3) [(c-2)], an
electric cooperative, [a person, including] an electric utility, a
[or] municipally owned utility, or another person[,] may not
interconnect a facility in [to] the ERCOT power region to a facility
located wholly or partly outside of this state or to a facility that
is connected directly or indirectly with a facility located wholly
or partly outside of this state, [transmission grid that enables
additional power to be imported into or exported out of the ERCOT
power grid] unless:
(1) the proposed interconnection will not subject the
ERCOT power region to additional federal control or jurisdiction;
(2) the commission first determines that the proposed
interconnection is in the public interest after considering:
(A) the technical attributes of the proposed
interconnection;
(B) the expected costs to the public to install,
operate, and maintain the interconnection;
(C) the results of relevant criteria adopted by
the commission under Section 37.056(d);
(D) the results of a reliability assessment
conducted by the independent organization certified under Section
39.151 for the ERCOT power region; and
(E) any other information the commission
considers appropriate;
(3) the cooperative, utility, or person applies for a
public interest determination from the commission under
Subdivision (2) [the person obtains a certificate from the
commission stating that public convenience and necessity requires
or will require the interconnection. The person must apply for the
certificate] not later than the 180th day before the date the
cooperative, utility, or person seeks any order from the Federal
Energy Regulatory Commission related to the proposed
interconnection; and
(4) after the cooperative, utility, or person obtains
any order from the Federal Energy Regulatory Commission related to
the proposed interconnection, the commission grants a certificate
stating that public convenience or necessity requires or will
require the interconnection.
(c-2) The commission shall apply Section 37.056 in
considering an application under Subsection (c-1) [this
subsection]. [In addition, the commission must determine that the
application is consistent with the public interest before granting
the certificate.] The commission may adopt rules necessary to
implement Subsection (c-1) [this subsection]. Subsection (c-1)
[This subsection] does not apply to a facility that is in service on
December 31, 2014.
(c-3) [(c-2)] The commission, not later than the 185th day
after the date the application is filed, shall approve an
application filed under Subsection (c-1) for a facility that is to
be constructed under an interconnection agreement appended to an
offer of settlement approved in a final order of the Federal Energy
Regulatory Commission that was issued in Docket No. TX11-01-001 on
or before December 31, 2014, directing physical connection between
the ERCOT and SERC regions under Sections 210, 211, and 212 of the
Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In
approving the application, the commission may prescribe reasonable
conditions to protect the public interest that are consistent with
the final order of the Federal Energy Regulatory Commission.
(c-4) [(c-3)] Nothing in Subsection (c-1), [or] (c-2), or
(c-3) is intended to restrict the authority of the commission or the
independent organization certified under Section 39.151 for the
ERCOT power region to adopt rules or protocols of general
applicability.
SECTION 2. The changes in law made by this Act in Section
37.051, Utilities Code, apply only to an interconnection made on or
after the effective date of this Act. An interconnection made
before the effective date of this Act is governed by the law in
effect when the interconnection was made, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.