84R6271 DDT-D
 
  By: Campbell S.B. No. 1827
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the legislature's goals for renewable electric
  generating capacity.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2305.0322(b)(5), Government Code, is
  amended to read as follows:
               (5)  "Renewable energy technology" has the meaning
  assigned by Section 39.916 [39.904(d)], Utilities Code.
         SECTION 2.  Section 36.053(d), Utilities Code, is amended to
  read as follows:
         (d)  If the commission issues a certificate of convenience
  and necessity or if the commission, acting under the authority
  formerly provided by Section 39.203(e), ordered [orders] an
  electric utility or a transmission and distribution utility to
  construct or enlarge transmission or transmission-related
  facilities to facilitate meeting the goal for generating capacity
  from renewable energy technologies under former Section 39.904(a),
  the commission shall find that the facilities are used and useful to
  the utility in providing service for purposes of this section and
  are prudent and includable in the rate base, regardless of the
  extent of the utility's actual use of the facilities.
         SECTION 3.  Section 37.051(f), Utilities Code, is amended to
  read as follows:
         (f)  The commission shall consider the requirements of
  Subsection (e) to have been met by an electric utility or other
  person that:
               (1)  was [is] selected by the commission as a
  transmission provider under a plan adopted by the commission under
  former Section 39.904 [not later than September 1, 2009]; and
               (2)  before the certificate is issued, provides to the
  commission a detailed plan regarding the offices, personnel, and
  other resources the electric utility or other person will have in
  this state to ensure provision of continuous and adequate
  transmission service.
         SECTION 4.  Section 37.0541, Utilities Code, is amended to
  read as follows:
         Sec. 37.0541.  CONSOLIDATION OF CERTAIN PROCEEDINGS. The
  commission shall consolidate the proceeding on an application to
  obtain or amend a certificate of convenience and necessity for the
  construction of a transmission line with the proceeding on another
  application to obtain or amend a certificate of convenience and
  necessity for the construction of a transmission line if it is
  apparent from the applications or a motion to intervene in either
  proceeding that the transmission lines that are the subject of the
  separate proceedings share a common point of interconnection.  
  [This section does not apply to a proceeding on an application for a
  certificate of convenience and necessity for a transmission line to
  serve a competitive renewable energy zone as part of a plan
  developed by the commission under Section 39.904(g)(2).]
         SECTION 5.  Sections 37.056(c) and (d), Utilities Code, are
  amended to read as follows:
         (c)  The commission shall grant each certificate on a
  nondiscriminatory basis after considering:
               (1)  the adequacy of existing service;
               (2)  the need for additional service;
               (3)  the effect of granting the certificate on the
  recipient of the certificate and any electric utility serving the
  proximate area; and
               (4)  other factors, such as:
                     (A)  community values;
                     (B)  recreational and park areas;
                     (C)  historical and aesthetic values;
                     (D)  environmental integrity; and
                     (E)  the probable improvement of service or
  lowering of cost to consumers in the area if the certificate is
  granted[; and
                     [(F)     to the extent applicable, the effect of
  granting the certificate on the ability of this state to meet the
  goal established by Section 39.904(a) of this title].
         (d)  The commission by rule shall establish criteria, in
  addition to the criteria described by Subsection (c), for granting
  a certificate for a transmission project that serves the ERCOT
  power region and [,] that is not necessary to meet state or federal
  reliability standards[, and that does not serve a competitive
  renewable energy zone].  The criteria must include a comparison of
  the estimated cost of the transmission project and the estimated
  cost savings that may result from the transmission project.  The
  commission shall include with its decision on an application for a
  certificate to which this subsection applies findings on the
  criteria.
         SECTION 6.  Section 39.002, Utilities Code, is amended to
  read as follows:
         Sec. 39.002.  APPLICABILITY. This chapter, other than
  Sections 39.155, 39.157(e), 39.203, 39.903, [39.904,] 39.9051,
  39.9052, and 39.914(e), does not apply to a municipally owned
  utility or an electric cooperative. Sections 39.157(e) and [,]
  39.203, [and 39.904,] however, apply only to a municipally owned
  utility or an electric cooperative that is offering customer
  choice. If there is a conflict between the specific provisions of
  this chapter and any other provisions of this title, except for
  Chapters 40 and 41, the provisions of this chapter control.
         SECTION 7.  Section 39.203(e), Utilities Code, is amended to
  read as follows:
         (e)  The commission may require an electric utility or a
  transmission and distribution utility to construct or enlarge
  facilities to ensure safe and reliable service for the state's
  electric markets and to reduce transmission constraints within
  ERCOT in a cost-effective manner where the constraints are such
  that they are not being resolved through Chapter 37 or the ERCOT
  transmission planning process.  [The commission shall require an
  electric utility or a transmission and distribution utility to
  construct or enlarge transmission or transmission-related
  facilities for the purpose of meeting the goal for generating
  capacity from renewable energy technologies under Section
  39.904(a).]  In any proceeding brought under Chapter 37, an
  electric utility or transmission and distribution utility ordered
  to construct or enlarge facilities under this subchapter need not
  prove that the construction ordered is necessary for the service,
  accommodation, convenience, or safety of the public and need not
  address the factors listed in Sections 37.056(c)(1)-(3) and (4)(E).  
  Notwithstanding any other law, including Section 37.057, in any
  proceeding brought under Chapter 37 by an electric utility or a
  transmission and distribution utility related to an application for
  a certificate of public convenience and necessity to construct or
  enlarge transmission or transmission-related facilities under this
  subsection, the commission shall issue a final order before the
  181st day after the date the application is filed with the
  commission.  If the commission does not issue a final order before
  that date, the application is approved.
         SECTION 8.  Section 39.402(a), Utilities Code, is amended to
  read as follows:
         (a)  Until the date on which an electric utility subject to
  this subchapter is authorized by the commission to implement
  customer choice, the rates of the utility shall be regulated under
  traditional cost of service regulation and the utility is subject
  to all applicable regulatory authority prescribed by this subtitle
  and Subtitle A, including Chapters 14, 32, 33, 36, and 37.  Until
  the date on which an electric utility subject to this subchapter
  implements customer choice, the provisions of this chapter, other
  than this subchapter, Section [Sections 39.904 and] 39.905, and the
  provisions relating to the duty to obtain a permit from the Texas
  Commission on Environmental Quality for an electric generating
  facility and to reduce emissions from an electric generating
  facility, shall not apply to that utility.  That portion of any
  commission order entered before September 1, 2001, to comply with
  this subchapter shall be null and void.
         SECTION 9.  Section 39.452(d), Utilities Code, is amended to
  read as follows:
         (d)  Until the date on which an electric utility subject to
  this subchapter implements customer choice:
               (1)  the provisions of this chapter do not apply to that
  electric utility, other than this subchapter, Section [Sections
  39.904 and] 39.905, the provisions relating to the duty to obtain a
  permit from the Texas Commission on Environmental Quality for an
  electric generating facility and to reduce emissions from an
  electric generating facility, and the provisions of Subchapter G
  that pertain to the recovery and securitization of hurricane
  reconstruction costs authorized by Sections 39.458-39.463; and
               (2)  the electric utility is not subject to a rate
  freeze and, subject to the limitation provided by Subsection (b),
  may file for rate changes under Chapter 36 and for approval of one
  or more of the rate rider mechanisms authorized by Sections 39.454
  and 39.455.
         SECTION 10.  Section 39.502(b), Utilities Code, is amended
  to read as follows:
         (b)  Until the date on which an electric utility subject to
  this subchapter implements customer choice, the provisions of this
  chapter, other than this subchapter and Section [Sections 39.904
  and] 39.905, do not apply to that utility.
         SECTION 11.  Section 39.552(b), Utilities Code, is amended
  to read as follows:
         (b)  Until the date on which an electric utility subject to
  this subchapter implements customer choice, the provisions of this
  chapter, other than this subchapter and Section [Sections 39.904
  and] 39.905, do not apply to that utility.
         SECTION 12.  Section 39.916(a), Utilities Code, is amended
  by amending Subdivision (1) and adding Subdivision (4) to read as
  follows:
               (1)  "Distributed renewable generation" means electric
  generation with a capacity of not more than 2,000 kilowatts
  provided by a renewable energy technology[, as defined by Section
  39.904,] that is installed on a retail electric customer's side of
  the meter.
               (4)  "Renewable energy technology" means any
  technology that relies exclusively on an energy source that is
  naturally regenerated over a short time and is derived from the sun
  directly or indirectly or from moving water or other natural
  movements or mechanisms of the environment. The term includes a
  technology that relies on energy derived from the sun directly, on
  wind, geothermal, hydroelectric, wave, or tidal energy, or on
  biomass or biomass-based waste products, including landfill gas.
  The term does not include a technology that relies on an energy
  resource derived from a fossil fuel, a waste product from a fossil
  fuel, or a waste product from an inorganic source.
         SECTION 13.  Section 40.001(a), Utilities Code, is amended
  to read as follows:
         (a)  Notwithstanding any other provision of law, except
  Sections 39.155, 39.157(e), 39.203, and 39.903, [and 39.904,] this
  chapter governs the transition to and the establishment of a fully
  competitive electric power industry for municipally owned
  utilities. With respect to the regulation of municipally owned
  utilities, this chapter controls over any other provision of this
  title, except for sections in which the term "municipally owned
  utility" is specifically used.
         SECTION 14.  Section 40.004, Utilities Code, is amended to
  read as follows:
         Sec. 40.004.  JURISDICTION OF COMMISSION. Except as
  specifically otherwise provided in this chapter, the commission has
  jurisdiction over municipally owned utilities only for the
  following purposes:
               (1)  to regulate wholesale transmission rates and
  service, including terms of access, to the extent provided by
  Subchapter A, Chapter 35;
               (2)  to regulate certification of retail service areas
  to the extent provided by Chapter 37;
               (3)  to regulate rates on appeal under Subchapters D
  and E, Chapter 33, subject to Section 40.051(c);
               (4)  to establish a code of conduct as provided by
  Section 39.157(e) applicable to anticompetitive activities and to
  affiliate activities limited to structurally unbundled affiliates
  of municipally owned utilities, subject to Section 40.054;
               (5)  to establish terms and conditions for open access
  to transmission and distribution facilities for municipally owned
  utilities providing customer choice, as provided by Section 39.203;
               (6)  to require collection of the nonbypassable fee
  established under Section 39.903(b) and to administer the
  [renewable energy credits program under Section 39.904(b) and the]
  natural gas energy credits program under Section 39.9044(b); and
               (7)  to require reports of municipally owned utility
  operations only to the extent necessary to:
                     (A)  enable the commission to determine the
  aggregate load and energy requirements of the state and the
  resources available to serve that load; or
                     (B)  enable the commission to determine
  information relating to market power as provided by Section 39.155.
         SECTION 15.  Section 41.001, Utilities Code, is amended to
  read as follows:
         Sec. 41.001.  APPLICABLE LAW. Notwithstanding any other
  provision of law, except Sections 39.155, 39.157(e), 39.203, and 
  39.903, [and 39.904,] this chapter governs the transition to and
  the establishment of a fully competitive electric power industry
  for electric cooperatives. Regarding the regulation of electric
  cooperatives, this chapter shall control over any other provision
  of this title, except for sections in which the term "electric
  cooperative" is specifically used.
         SECTION 16.  Sections 39.904 and 39.916(g), Utilities Code,
  are repealed.
         SECTION 17.  This Act takes effect September 1, 2015.