80R5374 TAD-D

By: Burnam H.B. No. 3337

A BILL TO BE ENTITLED

AN ACT

relating to the development and use of a comprehensive energy plan and to a corresponding temporary moratorium on authorizations for certain coal-fired electric generating facilities.

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

SECTION 1. Chapter 31, Utilities Code, is amended by adding Section 31.006 to read as follows:

Sec. 31.006. COMPREHENSIVE ELECTRIC ENERGY PLAN. (a) Not later than December 31, 2007, the commission shall develop and submit to the legislature and the governor a comprehensive electric energy plan that details this state's demand for electric generation capacity for the next 10 years, the infrastructure and technology for meeting that demand, and recommendations for meeting that demand.

(b) In developing the comprehensive electric energy plan, the commission shall consider and include:

(1) an estimate of the demand for electric generation capacity by this state for each of the next 10 years;

(2) the number, types, and use of existing electric generating facilities necessary for meeting the demand for generation capacity;

(3) the types of, and the amount of electric generation capacity from, renewable energy electric generation technology available to be used to meet the demand for generation capacity;

(4) recommendations for building additional electric generation facilities or installing additional renewable energy electric generation technology to meet the demand for generation capacity;

(5) recommendations, and an analysis of costs and energy savings benefits of the recommendations, to help meet the demand for electric generating capacity by energy efficiency practices, measures, and programs, including recommendations for energy efficiency programs conducted by electric utilities as market transformation programs or standard offer programs designed to reduce system peak demand, reduce energy consumption, and reduce energy costs by encouraging or providing incentives for energy-efficient practices and equipment; and

(6) recommendations for increasing the use of combined heat and power systems to help meet the demand for electric generation capacity.

(c) The commission shall update the plan every three years to cover the next 10-year period.

(d) The commission shall consider the plan in accordance with Section 382.05171, Health and Safety Code, in determining whether the issuance of a permit to operate a coal-fired electric generation facility is necessary to meet the state's demand for electric generation capacity.

SECTION 2. Subchapter C, Chapter 382, Health and Safety Code, is amended by adding Section 382.05171 to read as follows:

Sec. 382.05171. REVIEW WITH COMPREHENSIVE ELECTRIC ENERGY PLAN. (a) In addition to the requirements for obtaining a permit under this chapter, before the commission may issue a permit to operate a coal-fired electric generating facility, the commission shall submit an application for a permit to operate a coal-fired electric generating facility to the Public Utility Commission of Texas to determine whether the issuance of the permit is necessary to meet the state's demand for electric generation capacity as provided in the comprehensive electric energy plan under Section 31.006, Utilities Code.

(b) On determination by the commission that an application for a permit to operate a coal-fired electric generating facility is administratively complete, the commission shall submit the application to the Public Utility Commission of Texas. Not later than the 30th day after receiving the application from the commission, the Public Utility Commission of Texas shall notify the commission of its determination of whether the issuance of the permit is necessary to meet the state's demand for electric generation capacity as provided in the comprehensive electric energy plan under Section 31.006, Utilities Code. If the Public Utility Commission does not notify the commission of its determination on or before the 30th day after receiving the application, the issuance of the permit is considered to be necessary to meet the state's demand for electric generation capacity.

(c) The commission may not grant a permit to operate a coal-fired electric generating facility under this chapter if the Public Utility Commission of Texas determines that the issuance of the permit is not necessary to meet the state's demand for electric generation capacity as provided in the comprehensive electric energy plan under Section 31.006, Utilities Code.

SECTION 3. (a) In this section, "modification of existing facility" has the meaning assigned by Section 382.003, Health and Safety Code.

(b) Until January 1, 2008, the Texas Commission on Environmental Quality, a municipality, or a county may not accept an application for or issue, amend, or renew a permit, license, variance, or other authorization for or in connection with:

(1) the construction of a new coal-fired electric generating facility; or

(2) the modification of an existing coal-fired electric generating facility.

(c) This section applies to the issuance, amendment, or renewal of a permit, license, variance, or other authorization regardless of whether the application for the authorization is pending on the effective date of this Act.

(d) This section does not apply to the construction of a new electric generating facility that will use integrated gasification combined cycle technology.

SECTION 4. Section 382.05171, Health and Safety Code, as added by this Act, applies only to an application for a permit to operate a coal-fired electric generating facility for which the Texas Commission on Environmental Quality has not issued a permit before the effective date of this Act.

SECTION 5. This Act takes effect immediately if it 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 Act takes effect September 1, 2007.