HBA-DMD H.B. 3121 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3121 By: Chisum State Affairs 4/8/1999 Introduced BACKGROUND AND PURPOSE Currently, certain older electric generating units are exempt from meeting certain air quality standards. H.B. 3121 authorizes the Public Utility Commission, when establishing rates for an electric utility, to allow for a timely recovery of the reasonable costs of conservation, load management, purchased power, and environmental cleanup. This bill also requires that costs be included for the timely recovery of reasonable costs only when the costs are applied to the reduction in the emissions of airborne pollutants from an electric generating facility for which air quality authorization has not been obtained as of January 1, 1999. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 36.204, Utilities Code, as follows: Sec. 36.204. COST RECOVERY AND INCENTIVES. (a) Authorizes the Public Utility Commission, when establishing rates for an electric utility, rather than an electric utility that is not required to file an integrated resource plan, to allow for the timely recovery of reasonable costs of conservation, load management, purchased power, and environmental cleanup, notwithstanding Section 36.201 (Automatic Adjustment for Changes in Costs), Utilities Code. Makes a conforming change. (b) Requires the costs to be included for the timely recovery of reasonable costs only when the cost is applied to reducing or offsetting the emissions of airborne pollutants from an electric generating facility for which air quality authorization under Title 30 (Environmental Quality), Chapter 116 (Control of Air Pollution by Permits for New Construction or Modification), Texas Administrative Code, has not been obtained as of January 1, 1999, and the electric utility commits 100 percent of any resulting emissions credits to use within the state. SECTION 2.Effective date: September 1, 1998. SECTION 3.Emergency clause. Effective date: upon passage.