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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority and obligation of this state to comply |
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with and implement a Clean Power Plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 382, Health and Safety |
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Code, is amended by adding Section 382.0174 to read as follows: |
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Sec. 382.0174. STATE AUTHORITY AND OBLIGATIONS UNDER |
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CERTAIN FEDERAL REQUIREMENTS. (a) In this section: |
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(1) "Clean Power Plan" means a final rulemaking action |
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of the United States Environmental Protection Agency that |
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establishes carbon pollution guidelines for existing electric |
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utility generating units under Section 111(d) of the federal Clean |
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Air Act (42 U.S.C. Section 7411). |
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(2) "Utility commission" means the Public Utility |
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Commission of Texas. |
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(b) The governor and the attorney general, in consultation |
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with the commission and the utility commission, shall work to |
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prevent federal commandeering of state police powers, protect the |
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sovereignty of this state under the federal Clean Air Act (42 U.S.C. |
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Section 7401 et seq.), and retain authority to develop a state plan |
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to meet judicially or legislatively approved goals to reduce carbon |
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dioxide emissions. |
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(c) Notwithstanding any other law, the commission and the |
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utility commission: |
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(1) may examine the implications of complying with and |
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implementing a Clean Power Plan; |
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(2) shall take measures necessary to comply with or |
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implement a Clean Power Plan only after: |
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(A) the plan has been finally determined to be |
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authorized under federal law by the United States Supreme Court; |
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(B) the House Committee on Environmental |
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Regulation or a successor committee and the Senate Committee on |
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Natural Resources and Economic Development or a successor committee |
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have affirmatively approved the plan and submitted to the |
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legislature a report on the plan's impacts on commercial and |
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residential electricity customers in this state; and |
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(C) the utility commission and the Federal Energy |
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Regulatory Commission have certified that this state's plan to |
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implement the Clean Power Plan meets the grid reliability standards |
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of the Federal Energy Regulatory Commission; and |
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(3) have the authority necessary to comply with and |
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implement a Clean Power Plan if the requirements of Subdivision (2) |
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are satisfied. |
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(d) The commission and the utility commission shall develop |
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and adopt a memorandum of understanding as necessary to clarify or |
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provide for their respective duties, responsibilities, or |
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functions regarding any matter under the jurisdiction of the |
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commission or utility commission that relates to a Clean Power Plan |
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and is not expressly assigned to either the commission or utility |
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commission. |
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(e) During the examination of the implications of complying |
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with and implementing a Clean Power Plan and during the |
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implementation of the plan, the utility commission: |
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(1) may not authorize the retirement of a functioning |
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electric generating unit in this state before the unit has aged past |
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the engineering lifetime of the unit, unless: |
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(A) the unit is not necessary to maintain the |
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grid reliability required by the Federal Energy Regulatory |
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Commission; |
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(B) the owner of the unit has recouped the costs |
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of constructing and financing the unit; |
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(C) the state has sufficient replacement |
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capacity to meet the dispatchable capacity of the unit to be |
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retired; and |
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(D) an electric generating unit brought online to |
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replace the unit to be retired will not increase costs to consumers; |
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(2) shall require operators of electric generating |
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units to operate the units in accordance with the design parameters |
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and design life of the unit approved by the utility commission when |
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the generating unit began operation; |
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(3) shall regulate electricity generation and |
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distribution based on least-cost proposals that comply with federal |
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and state regulations of air pollutants for which criteria have |
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been adopted under Section 108 of the federal Clean Air Act (42 |
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U.S.C. Section 7408) or that are listed in Section 112 of the |
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federal Clean Air Act (42 U.S.C. Section 7412); and |
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(4) to the extent possible, shall ensure that each |
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entity engaged in generating, transmitting, or distributing |
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electric energy that increases non-fuel rates based on |
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implementation of a Clean Power Plan or anticipated implementation |
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of a Clean Power Plan does not increase the rates by more than 1.5 |
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percent. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |