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. 3-32 * * * * *