By: Sibley S.B. No. 1825 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 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. The Utilities Code is amended by adding Title 6 1-6 to read as follows: 1-7 TITLE 6. TEXAS ENERGY POLICY ACT 1-8 CHAPTER 300. STRATEGIC ENERGY PLANNING 1-9 SUBCHAPTER A. GENERAL PROVISIONS 1-10 Sec. 300.001. Short Title. This chapter may be cited as the 1-11 Texas Energy Policy Act. 1-12 Sec. 300.002. 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; and 2-1 (4) state planning and oversight as an important 2-2 mechanism in ensuring energy system reliability, flexibility, 2-3 affordability and efficiency. 2-4 Sec. 300.003. 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. 300.004. 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 is by its nature must reflect evolving 2-13 conditions and must therefore be updated as 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; 2-16 (2) the chairman of the Railroad Commission; 2-17 (3) the chairman of the Texas Natural Resource 2-18 Conservation Commission; 2-19 (4) two state senators appointed by the Lieutenant 2-20 Governor; 2-21 (5) two state representatives appointed by the Speaker 2-22 of the House of Representatives; 2-23 (6) one member of the academic community with 2-24 expertise in energy, appointed by the Governor; and 2-25 (7) the executive director of the office. 2-26 (c) The Governor shall designate the presiding officer from 3-1 among the members of the council. 3-2 (d) An appointed member of the council serves at the 3-3 pleasure of the appointing official. 3-4 (e) Members of the council receive no compensation but are 3-5 entitled to reimbursement of actual and necessary expenses incurred 3-6 in the performance of their duties. 3-7 (f) The council shall meet at least quarterly while 3-8 developing an initial statewide energy policy plan. The council 3-9 may meet annually after submitting the plan to the legislature. 3-10 (g) The council shall develop and implement policies that 3-11 provide the public with a reasonable opportunity to appear before 3-12 the council and to speak on any issue under the jurisdiction of the 3-13 council. 3-14 (h) The office is designated as the state agency responsible 3-15 for administering the council. Staff from the office shall be 3-16 designated as necessary to assist the council in carrying out its 3-17 duties. 3-18 (i) The council is subject to the Administrative Procedure 3-19 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil 3-20 Statutes), the Open Meetings Law, Chapter 271, Acts of the 60th 3-21 Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas 3-22 Civil Statutes), and the Open Records Law, Chapter 424, Acts of the 3-23 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 3-24 Texas Civil Statutes). 3-25 Sec. 300.005. FUNDING. (a) The council shall be funded 3-26 from appropriations made to the office from oil overcharge funds. 4-1 (b) Any unexpended balance shall be re-allocated to the 4-2 council. 4-3 Sec. 300.006. POWERS, DUTIES AND RESPONSIBILITIES OF THE 4-4 COUNCIL. (a) In developing a long-term statewide energy policy 4-5 plan, the council shall: 4-6 (1) make recommendations to the state and industry 4-7 regarding energy use; 4-8 (2) encourage cooperation and coordination between 4-9 public and private entities regarding energy use and energy 4-10 research, development and commercialization; 4-11 (3) seek policies that ensure a robust portfolio of 4-12 clean and reasonably priced energy sources; 4-13 (4) pursue basic research, pilot projects and 4-14 market-based incentives to expand long-term energy options; 4-15 (5) develop policies to ensure against interrupted 4-16 supplies and infrastructure failure; and 4-17 (6) make recommendations for increasing public 4-18 awareness of the importance of reduced consumption of energy. 4-19 (b) The council shall submit to the legislature its initial 4-20 plan by December 1, 2002. The council shall report to the 4-21 legislature by December 1 of each even-numbered year the status of 4-22 the plan's implementation and make any recommendations for 4-23 legislative action as necessary to implement or revise the plan. 4-24 Sec. 300.007. FUELS. (a) The council shall consider the 4-25 following fuel sources and new, innovative technologies associated 4-26 with these fuels in creating and recommending a plan. The fuels 5-1 include, but are not limited to the following: 5-2 (1) oil and natural gas; 5-3 (2) coal and lignite; 5-4 (3) nuclear; 5-5 (4) renewable energy technologies, as defined in Sec. 5-6 39.904(d) of the Utilities Code; and 5-7 (5) alternative fuels, including, but not limited to: 5-8 (A) geothermal energy; 5-9 (B) fuel cells; 5-10 (C) methane; and 5-11 (D) distributed generation. 5-12 (b) The Council shall ensure that various fuel resources 5-13 available to the state are used in a balanced and efficient manner. 5-14 The council shall consider the economic viability of new 5-15 technologies when making its recommendations. 5-16 Sec. 300.008. ENERGY EFFICIENT TECHNOLOGY. (a) In order to 5-17 reduce the energy demand of customers in this state, the council 5-18 shall consider energy efficient technologies in creating and 5-19 recommending its plan. Energy efficient technologies shall be 5-20 considered for the following: 5-21 (1) residential, commercial, industrial, and state and 5-22 local government energy users; and 5-23 (2) any other application the council determines 5-24 appropriate. 5-25 (b) The council shall consider the economic viability of new 5-26 technologies when making its recommendations. 6-1 (c) Due to the ability of energy efficient technologies to 6-2 reduce the demand for energy throughout the state, the council 6-3 shall give these technologies priority when creating its plan. 6-4 Sec. 300.009. TRANSMISSION AND TRANSPORTATION. (a) The 6-5 council shall consider and recommend strategies to ensure that the 6-6 customers of this state have access to reliable energy. 6-7 (b) The council shall consider transmission and 6-8 transportation constraints, and make recommendations in the plan to 6-9 alleviate those constraints, for the following sources of energy: 6-10 (1) oil and natural gas; 6-11 (2) coal and lignite; and 6-12 (3) electricity. 6-13 Sec. 300.010. EXPLORATION. (a) The council shall consider 6-14 and recommend strategies for the exploration and capture of natural 6-15 resources necessary for energy production in this state. 6-16 (b) The council shall consider strategies for the following 6-17 resources: 6-18 (1) oil and natural gas; 6-19 (2) coal and lignite; and 6-20 (3) any other resources the council determines 6-21 appropriate. 6-22 Sec. 300.011. ENVIRONMENT. (a) The council, when creating 6-23 and recommending its plan, shall consider the effect of energy 6-24 production on the environment. 6-25 (b) The council shall recommend strategies which protect and 6-26 preserve the environment of the state while allowing for access to 7-1 safe, economical and reliable sources of energy. The council shall 7-2 consider the following when creating and recommending its plan: 7-3 (1) air quality; 7-4 (2) water quality; and 7-5 (3) waste disposal. 7-6 SECTION 2. Section 39.9044 of the Utilities Code is 7-7 repealed. 7-8 SECTION 3. This Act takes effect September 1, 2001.