1-1     By:  Sibley                                           S.B. No. 1825
 1-2           (In the Senate - Filed April 23, 2001; April 23, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 25, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 25, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1825                  By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to state energy policy and the creation, powers, and
1-11     duties of the Texas Energy Policy Council.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  This Act may be cited as the Texas Energy Policy
1-14     Act.
1-15           SECTION 2.  The Utilities Code is amended by adding Title 6
1-16     to read as follows:
1-17                      TITLE 6.  TEXAS ENERGY POLICY ACT
1-18                   CHAPTER 300.  STRATEGIC ENERGY PLANNING
1-19                      SUBCHAPTER A.  GENERAL PROVISIONS
1-20           Sec. 300.001.  PURPOSE AND FINDINGS.  (a)  This title is
1-21     enacted to protect the public interest through the strategic
1-22     planning of energy development, production, delivery,
1-23     commercialization, and utilization.
1-24           (b)  The purpose of this title is to establish a statewide
1-25     energy policy that recognizes:
1-26                 (1)  the public's health and general welfare as a
1-27     critical concern in the development of energy policies;
1-28                 (2)  energy as a valuable commodity in the state's
1-29     economy;
1-30                 (3)  the protection of the environment as a major
1-31     consideration in the production and utilization of energy;
1-32                 (4)  market-based solutions as a preferred policy for
1-33     energy planning; and
1-34                 (5)  state planning and oversight as an important
1-35     mechanism in ensuring energy system reliability, flexibility,
1-36     affordability, and efficiency.
1-37           Sec. 300.002.  DEFINITIONS.  In this title:
1-38                 (1)  "Council" means the Texas Energy Policy Council.
1-39                 (2)  "Office" means the State Energy Conservation
1-40     Office.
1-41                 (3)  "Plan" means the statewide energy policy plan.
1-42           Sec. 300.003.  TEXAS ENERGY POLICY COUNCIL.  (a)  The Texas
1-43     Energy Policy Council is created to develop and recommend a
1-44     statewide energy policy plan to the legislature.  A statewide
1-45     energy policy plan must be updated to reflect evolving conditions
1-46     and as such should be considered a living document.
1-47           (b)  The council is composed of nine members as follows:
1-48                 (1)  the chairman of the Public Utility Commission of
1-49     Texas;
1-50                 (2)  the chairman of the Railroad Commission of Texas;
1-51                 (3)  the chairman of the Texas Natural Resource
1-52     Conservation Commission;
1-53                 (4)  two members of the senate appointed by the
1-54     lieutenant governor;
1-55                 (5)  two members of the house of representatives
1-56     appointed by the speaker of the house of representatives;
1-57                 (6)  one member of the academic community with
1-58     expertise in energy, appointed by the governor; and
1-59                 (7)  the director of the office.
1-60           (c)  The governor shall designate the presiding officer from
1-61     among the members of the council.
1-62           (d)  An appointed member of the council serves at the
1-63     pleasure of the appointing official.
1-64           (e)  Members of the council receive no compensation but are
 2-1     entitled to reimbursement of actual and necessary expenses incurred
 2-2     in the performance of their duties.
 2-3           (f)  The council shall meet at least quarterly while
 2-4     developing an initial plan.  The council may meet annually after
 2-5     submitting the plan to the legislature.
 2-6           (g)  The council shall develop and implement policies that
 2-7     provide the public with a reasonable opportunity to appear before
 2-8     the council and to speak on any issue under the jurisdiction of the
 2-9     council.
2-10           (h)  The office is designated as the state agency responsible
2-11     for administering the council.  Staff from the office shall be
2-12     designated, as necessary, to assist the council in carrying out its
2-13     duties.
2-14           Sec. 300.004.  POWERS, DUTIES, AND RESPONSIBILITIES OF THE
2-15     COUNCIL.  (a)  In developing a long-term plan, the council shall:
2-16                 (1)  encourage cooperation and coordination between
2-17     public and private entities regarding energy use, research,
2-18     development, and commercialization;
2-19                 (2)  seek policies that ensure a robust portfolio of
2-20     clean and reasonably priced energy sources;
2-21                 (3)  promote basic research, pilot projects, and
2-22     market-based incentives to expand long-term energy options;
2-23                 (4)  develop policies to ensure against interrupted
2-24     supplies and infrastructure failure;
2-25                 (5)  examine the impact of the waste produced by
2-26     various sources of energy and review the adequacy of our waste
2-27     disposal capabilities; and
2-28                 (6)  make recommendations for increasing public
2-29     awareness of the importance of reduced consumption of energy.
2-30           (b)  The council shall submit to the legislature its initial
2-31     plan by December 1, 2002.  The council shall report to the
2-32     legislature by December 1 of each even-numbered year the status of
2-33     the plan's implementation and make any recommendations for
2-34     legislative action as necessary to implement or revise the plan.
2-35     The council may update the plan as necessary.
2-36           Sec. 300.005.  FUELS AND TECHNOLOGIES.  (a)  The council
2-37     shall consider the following fuel sources and new, innovative
2-38     technologies associated with these fuels in creating and
2-39     recommending a plan.  These fuels and technologies include, but are
2-40     not limited to, the following:
2-41                 (1)  oil and natural gas;
2-42                 (2)  coal and lignite;
2-43                 (3)  nuclear;
2-44                 (4)  fuel cells;
2-45                 (5)  distributed generation;
2-46                 (6)  geothermal energy;
2-47                 (7)   methane; and
2-48                 (8)  any other fuels and technologies as defined in
2-49     Section 39.904(d).
2-50           (b)  The council shall seek policies to ensure that fuel
2-51     resources available to the state are used in a balanced and
2-52     efficient manner.  The council shall consider the economic
2-53     viability and environmental impact of new fuels and technologies
2-54     when making its recommendations.
2-55           Sec. 300.006.  ENERGY EFFICIENT TECHNOLOGY.  (a)  In order to
2-56     reduce the energy demand of customers in this state, the council
2-57     shall consider energy efficient technologies in creating and
2-58     recommending its plan.  Energy efficient technologies shall be
2-59     considered for the following:
2-60                 (1)  residential, commercial, industrial, and state and
2-61     local government energy users; and
2-62                 (2)  any other application the council determines
2-63     appropriate.
2-64           (b)  The council shall consider the economic viability of new
2-65     technologies when making its recommendations.
2-66           (c)  Due to the ability of energy efficient technologies to
2-67     reduce the demand for energy and the need for additional
2-68     transmission capacity throughout the state, the council shall give
2-69     these technologies priority when creating its plan.
 3-1           Sec. 300.007.  TRANSMISSION AND TRANSPORTATION.  (a)  The
 3-2     council shall consider and recommend strategies to ensure that
 3-3     customers of this state have access to reliable energy.
 3-4           (b)  The council shall consider transmission and
 3-5     transportation constraints, and make recommendations in the plan to
 3-6     alleviate or prevent those constraints, for the following sources
 3-7     of energy:
 3-8                 (1)  oil and natural gas;
 3-9                 (2)  coal and lignite; and
3-10                 (3)  electricity.
3-11           Sec. 300.008.  EXPLORATION.  (a)  The council shall consider
3-12     and recommend strategies for the exploration and capture of natural
3-13     resources necessary for energy production in this state.
3-14           (b)  The council shall consider strategies for the following
3-15     resources:
3-16                 (1)  oil and natural gas;
3-17                 (2)  coal and lignite; and
3-18                 (3)  any other resources the council determines
3-19     appropriate.
3-20           Sec. 300.009.  ENVIRONMENT.  (a)  The council, when creating
3-21     and recommending its plan, shall consider the effect of energy
3-22     production on the environment.
3-23           (b)  The council shall recommend strategies which protect and
3-24     preserve the environment of the state while allowing for access to
3-25     safe, economical, and reliable sources of energy.  The council
3-26     shall consider the following:
3-27                 (1)  air quality;
3-28                 (2)  water quality; and
3-29                 (3)  waste disposal.
3-30           SECTION 3.  Section 39.9044, Utilities Code, is repealed.
3-31           SECTION 4.  This Act takes effect September 1, 2001.
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