By:  Sibley                                           S.B. No. 1825
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state energy policy and the creation, powers, and
 1-3     duties of the Texas Energy Policy Council.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  This Act may be cited as the Texas Energy Policy
 1-6     Act.
 1-7           SECTION 2.  The Utilities Code is amended by adding Title 6
 1-8     to read as follows:
 1-9                      TITLE 6.  TEXAS ENERGY POLICY ACT
1-10                   CHAPTER 300.  STRATEGIC ENERGY PLANNING
1-11                      SUBCHAPTER A.  GENERAL PROVISIONS
1-12           Sec. 300.001.  PURPOSE AND FINDINGS.  (a)  This title is
1-13     enacted to protect the public interest through the strategic
1-14     planning of energy development, production, delivery,
1-15     commercialization, and utilization.
1-16           (b)  The purpose of this title is to establish a statewide
1-17     energy policy that recognizes:
1-18                 (1)  the public's health and general welfare as a
1-19     critical concern in the development of energy policies;
1-20                 (2)  energy as a valuable commodity in the state's
1-21     economy;
1-22                 (3)  the protection of the environment as a major
1-23     consideration in the production and utilization of energy;
1-24                 (4)  market-based solutions as a preferred policy for
1-25     energy planning; and
 2-1                 (5)  state planning and oversight as an important
 2-2     mechanism in ensuring energy system reliability, flexibility,
 2-3     affordability, and efficiency.
 2-4           Sec. 300.002.  DEFINITIONS.  In this title:
 2-5                 (1)  "Council" means the Texas Energy Policy Council.
 2-6                 (2)  "Office" means the State Energy Conservation
 2-7     Office.
 2-8                 (3)  "Plan" means the statewide energy policy plan.
 2-9           Sec. 300.003.  TEXAS ENERGY POLICY COUNCIL.  (a)  The Texas
2-10     Energy Policy Council is created to develop and recommend a
2-11     statewide energy policy plan to the legislature.  A statewide
2-12     energy policy plan must be updated to reflect evolving conditions
2-13     and as such should be considered a living document.
2-14           (b)  The council is composed of nine members as follows:
2-15                 (1)  the chairman of the Public Utility Commission of
2-16     Texas;
2-17                 (2)  the chairman of the Railroad Commission of Texas;
2-18                 (3)  the chairman of the Texas Natural Resource
2-19     Conservation Commission;
2-20                 (4)  two members of the senate appointed by the
2-21     lieutenant governor;
2-22                 (5)  two members of the house of representatives
2-23     appointed by the speaker of the house of representatives;
2-24                 (6)  one member of the academic community with
2-25     expertise in energy, appointed by the governor; and
2-26                 (7)  the director of the office.
 3-1           (c)  The governor shall designate the presiding officer from
 3-2     among the members of the council.
 3-3           (d)  An appointed member of the council serves at the
 3-4     pleasure of the appointing official.
 3-5           (e)  Members of the council receive no compensation but are
 3-6     entitled to reimbursement of actual and necessary expenses incurred
 3-7     in the performance of their duties.
 3-8           (f)  The council shall meet at least quarterly while
 3-9     developing an initial plan.  The council may meet annually after
3-10     submitting the plan to the legislature.
3-11           (g)  The council shall develop and implement policies that
3-12     provide the public with a reasonable opportunity to appear before
3-13     the council and to speak on any issue under the jurisdiction of the
3-14     council.
3-15           (h)  The office is designated as the state agency responsible
3-16     for administering the council.  Staff from the office shall be
3-17     designated, as necessary, to assist the council in carrying out its
3-18     duties.
3-19           Sec. 300.004.  POWERS, DUTIES, AND RESPONSIBILITIES OF THE
3-20     COUNCIL.  (a)  In developing a long-term plan, the council shall:
3-21                 (1)  encourage cooperation and coordination between
3-22     public and private entities regarding energy use, research,
3-23     development, and commercialization;
3-24                 (2)  seek policies that ensure a robust portfolio of
3-25     clean and reasonably priced energy sources;
3-26                 (3)  promote basic research, pilot projects, and
 4-1     market-based incentives to expand long-term energy options;
 4-2                 (4)  develop policies to ensure against interrupted
 4-3     supplies and infrastructure failure;
 4-4                 (5)  examine the impact of the waste produced by
 4-5     various sources of energy and review the adequacy of our waste
 4-6     disposal capabilities; and
 4-7                 (6)  make recommendations for increasing public
 4-8     awareness of the importance of reduced consumption of energy.
 4-9           (b)  The council shall submit to the legislature its initial
4-10     plan by December 1, 2002.  The council shall report to the
4-11     legislature by December 1 of each even-numbered year the status of
4-12     the plan's implementation and make any recommendations for
4-13     legislative action as necessary to implement or revise the plan.
4-14     The council may update the plan as necessary.
4-15           Sec. 300.005.  FUELS AND TECHNOLOGIES.  (a)  The council
4-16     shall consider the following fuel sources and new, innovative
4-17     technologies associated with these fuels in creating and
4-18     recommending a plan.  These fuels and technologies include, but are
4-19     not limited to, the following:
4-20                 (1)  oil and natural gas;
4-21                 (2)  coal and lignite;
4-22                 (3)  nuclear;
4-23                 (4)  fuel cells;
4-24                 (5)  distributed generation;
4-25                 (6)  geothermal energy;
4-26                 (7)   methane; and
 5-1                 (8)  any other fuels and technologies as defined in
 5-2     Section 39.904(d).
 5-3           (b)  The council shall seek policies to ensure that fuel
 5-4     resources available to the state are used in a balanced and
 5-5     efficient manner.  The council shall consider the economic
 5-6     viability and environmental impact of new fuels and technologies
 5-7     when making its recommendations.
 5-8           Sec. 300.006.  ENERGY EFFICIENT TECHNOLOGY.  (a)  In order to
 5-9     reduce the energy demand of customers in this state, the council
5-10     shall consider energy efficient technologies in creating and
5-11     recommending its plan.  Energy efficient technologies shall be
5-12     considered for the following:
5-13                 (1)  residential, commercial, industrial, and state and
5-14     local government energy users; and
5-15                 (2)  any other application the council determines
5-16     appropriate.
5-17           (b)  The council shall consider the economic viability of new
5-18     technologies when making its recommendations.
5-19           (c)  Due to the ability of energy efficient technologies to
5-20     reduce the demand for energy and the need for additional
5-21     transmission capacity throughout the state, the council shall give
5-22     these technologies priority when creating its plan.
5-23           Sec. 300.007.  TRANSMISSION AND TRANSPORTATION.  (a)  The
5-24     council shall consider and recommend strategies to ensure that
5-25     customers of this state have access to reliable energy.
5-26           (b)  The council shall consider transmission and
 6-1     transportation constraints, and make recommendations in the plan to
 6-2     alleviate or prevent those constraints, for the following sources
 6-3     of energy:
 6-4                 (1)  oil and natural gas;
 6-5                 (2)  coal and lignite; and
 6-6                 (3)  electricity.
 6-7           Sec. 300.008.  EXPLORATION.  (a)  The council shall consider
 6-8     and recommend strategies for the exploration and capture of natural
 6-9     resources necessary for energy production in this state.
6-10           (b)  The council shall consider strategies for the following
6-11     resources:
6-12                 (1)  oil and natural gas;
6-13                 (2)  coal and lignite; and
6-14                 (3)  any other resources the council determines
6-15     appropriate.
6-16           Sec. 300.009.  ENVIRONMENT.  (a)  The council, when creating
6-17     and recommending its plan, shall consider the effect of energy
6-18     production on the environment.
6-19           (b)  The council shall recommend strategies which protect and
6-20     preserve the environment of the state while allowing for access to
6-21     safe, economical, and reliable sources of energy.  The council
6-22     shall consider the following:
6-23                 (1)  air quality;
6-24                 (2)  water quality; and
6-25                 (3)  waste disposal.
6-26           SECTION 3.  Section 39.9044, Utilities Code, is repealed.
 7-1           SECTION 4.  This Act takes effect September 1, 2001.