By Chisum                                             H.B. No. 1060
       74R3157 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the consideration of environmental externalities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article V, Public Utility Regulatory Act (Article
    1-5  1446c, Vernon's Texas Civil Statutes), is amended by adding Section
    1-6  31A to read as follows:
    1-7        Sec. 31A.  (a)  An electric utility may not consider or be
    1-8  required to consider environmental externalities in any activity of
    1-9  the utility, including:
   1-10              (1)  collecting or changing rates;
   1-11              (2)  determining the utility's cost of service or
   1-12  designing a cost of service study;
   1-13              (3)  acquiring demand-side or supply-side resources;
   1-14              (4)  planning;
   1-15              (5)  competitive bidding; or
   1-16              (6)  dispatching resources.
   1-17        (b)  The regulatory authority may not consider environmental
   1-18  externalities in:
   1-19              (1)  determining the cost of electric service or of any
   1-20  energy resource for the generation of electricity;
   1-21              (2)  setting electric utility rates under Article VI of
   1-22  this Act; or
   1-23              (3)  deciding whether to grant to an electric utility a
   1-24  notice of intent or certificate of convenience and necessity under
    2-1  Article VII of this Act.
    2-2        (c)  In this section, "environmental externalities" means:
    2-3              (1)  damage to the environment that is alleged to be
    2-4  the result of an electric utility's actions, regardless of whether
    2-5  the utility complied with any applicable environmental regulation;
    2-6  or
    2-7              (2)  the alleged cost of complying with future
    2-8  environmental regulations.
    2-9        SECTION 2.  The importance of this legislation and the
   2-10  crowded condition of the calendars in both houses create an
   2-11  emergency and an imperative public necessity that the
   2-12  constitutional rule requiring bills to be read on three several
   2-13  days in each house be suspended, and this rule is hereby suspended,
   2-14  and that this Act take effect and be in force from and after its
   2-15  passage, and it is so enacted.