BILL ANALYSIS

Senate Research Center	S.B. 365
	By: Zaffirini
	Business & Commerce
	6/5/2023
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

An electrical substation is a facility that controls the flow of electricity and ensures that it is delivered to the appropriate locations. Although electric utilities must notify affected landowners about potential transmission lines, they are not required to notify landowners about substations. Consequently, landowners may not know about a planned substation close to their property until construction begins.

S.B. 365 would require electric utilities to notify landowners within 300 feet of where they intend to construct a substation, so property owners can plan accordingly, as proximity to a substation may lower the appeal of a home to current residents or potential buyers due to aesthetic or other concerns.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 365 would change the notification requirement from within 300 feet to landowners of adjacent properties, including properties across from throughfares such as roads or highways. It also would no longer be a requirement for a utility's certificate of convenience and necessity.

S.B. 365 amends current law relating to the issuance or amendment of a certificate of public convenience and necessity that authorizes the construction of an electrical substation.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 37.054, Utilities Code, by adding Subsection (c) to require the Public Utility Commission of Texas (PUC), in addition to any notice provided under Subsection (a) (relating to requiring the PUC to give notice when an application for a certificate is filed), to require the applicant to provide written notice of each substation proposed to be authorized by a certificate of convenience and necessity to each owner of property adjacent to the property on which the substation will be located and property located directly across a highway, road, or street that is adjacent to the property on which the substation will be located.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2023.