BILL ANALYSIS

S.B. 365

By: Zaffirini

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

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 seeks to address this issue by requiring electric utilities to notify adjacent landowners of proposed substations so that they may 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.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 365 amends the Utilities Code to require the Public Utility Commission of Texas (PUC) to require an applicant for a certificate of convenience and necessity (CCN) to provide written notice of each electrical substation proposed to be authorized by the CCN to each owner of property adjacent to the property on which the substation will be located and to each owner of property located directly across a highway, road, or street that is adjacent to the property on which the substation will be located. This notice is in addition to any notice given by the PUC to interested parties when the CCN application was filed. The bill applies only to a proceeding affecting a CCN that commences on or after the bill's effective date. A proceeding that commenced before the bill's effective date is governed by the law in effect on the date the proceeding is commenced, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2023.