BILL ANALYSIS

Senate Research Center	S.B. 365
	By: Zaffirini
	Business & Commerce
	4/11/2023
	As Filed

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.

As proposed, S.B. 365 amends current law relating to the construction of an electrical transmission line and associated substations.

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 37.052(c), Utilities Code, as follows:

(c) Provides that an electric utility is not required to amend the utility's certificate of public convenience and necessity to construct a transmission line that connects the utility's existing transmission facilitates to a substation or metering point if:

(1)-(2) makes no changes to these subdivisions;

(3) if applicable, the electric utility is required to provide written notice to each landowner whose property is located within 300 feet of the substation for the transmission line; and

(4) makes a nonsubstantive change to this subdivision.

SECTION 2. Amends Section 37.054, Utilities Code, by adding Subsection (c), as follows:

(c) Requires 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 associated substation to each owner of land located within 300 feet of the proposed substation.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Effective date: September 1, 2023.