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.