By Chisum                                             H.B. No. 3121
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the recovery of costs incurred by electric utilities to
 1-3     comply with environmental standards.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 36.204, Utilities Code, is amended to
 1-6     read as follows:
 1-7           Sec. 36.204.  Cost Recovery and Incentives.  (a)  In
 1-8     establishing rates for an electric utility [not required to file an
 1-9     integrated resource plan], the commission may:
1-10                 (1)  allow timely recovery of the reasonable costs of
1-11     conservation, load management, [and] purchased power, and
1-12     environmental cleanup, notwithstanding Section 36.201; and
1-13                 (2)  authorize additional incentives for conservation,
1-14     load management, purchased power, and renewable resources.
1-15           (b)  Costs incurred under Subsection (a) for cleanup shall be
1-16     included for timely recovery of reasonable costs only to the extent
1-17     that:
1-18                 (1)  the cost is applied to reduce or offset the
1-19     emissions of airborne pollutants from an electric generating
1-20     facility for which air quality authorization pursuant to 30 T.A.C.
1-21     Chapter 116 has not been obtained as of January 1, 1999; and
 2-1                 (2)  the electric utility commits one-hundred percent
 2-2     of any resulting emissions credits to use within the state.
 2-3           SECTION 2.  This Act takes effect September 1, 1998.
 2-4           SECTION 3.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended,
 2-9     and that this Act take effect and be in force from and after its
2-10     passage, and it is so enacted.