By: Bonnen, et al. (Senate Sponsor - Averitt) H.B. No. 2713

(In the Senate - Received from the House April 27, 2007; May 1, 2007, read first time and referred to Committee on Natural Resources; May 18, 2007, reported favorably by the following vote: Yeas 11, Nays 0; May 18, 2007, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to studies, plans, and projects concerning electric generation capacity or electric energy storage, transmission, or distribution.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. INTERIM SPECIAL COMMITTEE ON ELECTRIC ENERGY GENERATION

CAPACITY AND ENVIRONMENTAL IMPACT

SECTION 1.01. COMPOSITION OF COMMITTEE. (a) The Interim Special Committee on Electric Energy Generation Capacity and Environmental Impact is composed of:

(1) the chair of the House Environmental Regulation Committee;

(2) the chair of the House Energy Resources Committee;

(3) the chair of the House Committee on Regulated Industries;

(4) the chair of the Senate Natural Resources Committee;

(5) the chair of the Senate Business and Commerce Committee;

(6) four members of the house of representatives, appointed by the speaker of the house of representatives;

(7) five members of the senate, appointed by the lieutenant governor;

(8) one member representing the electric generation industry, appointed by the governor;

(9) one member representing the academic community in the area of energy and environmental studies, appointed by the governor; and

(10) one member representing a public interest organization, appointed by the governor.

(b) The speaker of the house of representatives and the lieutenant governor shall each designate a co-chair from among the committee members.

(c) Not later than the 60th day after the effective date of this Act, the speaker of the house of representatives and the lieutenant governor shall appoint the members of the interim committee.

SECTION 1.02. STUDY; PLAN. (a) The committee shall:

(1) study the state's demand for electric generation capacity for the next 50 years and the infrastructure and technology available for meeting that demand;

(2) study the environmental effects of existing electric generating facilities, including the effects on global warming or climate change; and

(3) prepare a long-term electric energy and environmental impact plan for the 80th Legislature that includes:

(A) an estimate of the demand for electric generation capacity by this state for each of the next 50 years;

(B) an inventory of all existing electric generating facilities operating in this state;

(C) an assessment of the types of, and amount of electric generation capacity from, electric generation technology available to be used to meet the demand for generation capacity, including:

(i) coal;

(ii) renewable energy;

(iii) liquefied natural gas;

(iv) nuclear energy;

(v) integrated gasification combined cycle technology; and

(vi) hydrogen gas;

(D) an assessment of the environmental effects of existing and potential electric generating facilities and energy generation technology, including the effects on:

(i) the emission of pollutants regulated by the federal Clean Air Act (42 U.S.C. Section 7412);

(ii) the emission of carbon dioxide and other greenhouse gasses;

(iii) the cumulative effect on air quality in nonattainment areas;

(iv) whether an increase in emissions would cause an area to become a nonattainment area; and

(v) global warming or climate change;

(E) an assessment of the reliability of existing electric generating facilities to meet the demand for electric generation capacity;

(F) an estimate of the costs associated with meeting the demand for electric generation capacity; and

(G) recommendations for reducing demand through the use of energy efficiency programs.

(b) In preparing the plan required by Subsection (a), the committee may consult with:

(1) the Texas Commission on Environmental Quality;

(2) the Public Utility Commission of Texas;

(3) the Railroad Commission of Texas; and

(4) the Electric Reliability Council of Texas.

(c) Each agency named by Subsection (b) shall designate an individual as the point of contact for the committee.

(d) The committee shall file with the legislature the long-term electric energy and environmental impact plan required by Subsection (a) not later than January 15, 2009.

SECTION 1.03. COMMITTEE MEETINGS. The joint interim committee shall meet initially at the joint call of the co-chairs, and the committee shall subsequently hold meetings and public hearings at the call of the co-chairs.

SECTION 1.04. COMMITTEE POWERS AND DUTIES. The committee has all powers and duties provided to special committees by the senate and house of representatives rules of procedure, by Subchapter B, Chapter 301, Government Code, and by policies of the committees on administration.

SECTION 1.05. COMMITTEE FUNDING. (a) From the contingent expense fund of the senate and the contingent expense fund of the house of representatives equally, the members of the committee shall be reimbursed for expenses incurred in carrying out the provisions of this article in accordance with the senate and house of representatives rules of procedure and the policies of the committees on administration.

(b) Other necessary expenses of operation shall be paid from the contingent expense fund of the senate and the contingent expense fund of the house of representatives equally.

SECTION 1.06. EFFECTIVE DATE. This article takes effect September 1, 2007.

ARTICLE 2. ELECTRIC ENERGY STORAGE DEVICES

SECTION 2.01. DEFINITION. In this article, "commission" means the Public Utility Commission of Texas.

SECTION 2.02. STUDY. (a) The commission shall conduct a study on the potential of electric energy storage devices to benefit the operation of transmission and distribution systems. In conducting the study, the commission shall consider any relevant issues, including:

(1) the effect of the devices on system reliability;

(2) the advantages and disadvantages of transmission and distribution utilities owning and operating those devices as transmission and distribution facilities;

(3) the manner in which the devices may be integrated into the ERCOT operating system, if applicable;

(4) the manner in which the devices may benefit power generation companies, retail electric providers, electric utilities, and transmission and distribution utilities; and

(5) the appropriate methods to bill and account for any costs and revenue associated with the electric energy that is used to charge, and that is later discharged from, a device.

(b) The commission shall prepare a report on the results of the study. The report must include the commission's conclusions on the potential of electric energy storage devices and, as appropriate, recommendations to the legislature on legislation or other action necessary to realize that potential. The commission shall include the report in the electric market scope of competition report required by Section 31.003, Utilities Code, that the commission submits to the 81st Legislature.

(c) The commission shall conduct the study and prepare the report as required by this section:

(1) with input from the ERCOT independent system operator; and

(2) after requesting comments and input from all interested parties.

SECTION 2.03. DEMONSTRATION PROJECTS. (a) The commission may authorize one or more electric utilities or transmission or distribution utilities to operate demonstration projects that involve facilities capable of not more than two megawatts of electric energy storage for the purpose of obtaining a better understanding of the facilities':

(1) cost;

(2) value; and

(3) operational characteristics, including the efficient use of the transmission system and the facilities' effect on removing transmission constraints.

(b) The operation of a demonstration project under this section does not prejudice the study required by Section 2.02 of this article or any future determination relating to the appropriateness of an electric utility or transmission and distribution utility owning and operating electric energy storage facilities.

(c) This section may not be interpreted to require an electric utility or transmission and distribution utility to install an electric energy storage facility.

SECTION 2.04. EFFECTIVE DATE. This article takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this article takes effect September 1, 2007.

ARTICLE 3. EFFECTIVE DATE

SECTION 3.01. Except as otherwise provided by this Act, this Act takes effect September 1, 2007.

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