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.