88R22860 DIO-F

By: Darby, Guillen, Hernandez, Slawson, H.B. No. 2848

Burrows

Substitute the following for H.B. No. 2848:

By: Smithee C.S.H.B. No. 2848

A BILL TO BE ENTITLED

AN ACT

relating to the approval of a certificate of public convenience and necessity for certain transmission projects.

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

SECTION 1. Section 37.056, Utilities Code, is amended by amending Subsections (c-1) and (d) and adding Subsections (d-1) and (d-2) to read as follows:

(c-1) In considering the need for additional service under Subsection (c)(2) for a reliability transmission project that serves the ERCOT power region, the commission must consider the historical load, forecasted load growth, and additional load currently seeking interconnection, including load for which the electric utility has yet to sign an interconnection agreement, as determined by the electric utility with the responsibility for serving the load.

(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, that is not necessary to meet state or federal reliability standards, and that is not included in a plan developed under Section 39.904(g). [The criteria must include a comparison of the estimated cost of the transmission project for consumers and the estimated congestion cost savings for consumers that may result from the transmission project, considering both current and future expected congestion levels and the transmission project's ability to reduce those congestion levels.] The commission shall include with its decision on an application for a certificate to which this subsection applies findings on the criteria. The criteria must:

(1) include a comparison of the estimated cost of the transmission project to consumers and the estimated congestion cost savings for consumers that may result from the project, considering both current and expected congestion levels and the project's ability to reduce those levels;

(2) address:

(A) other benefits of the transmission project, including deferral of reliability upgrade costs, reduction of transmission system losses, and reduction of operating reserve costs;

(B) solutions to relieve generic transmission constraints;

(C) potential for increasing transmission system reliability, resiliency, and operational flexibility;

(D) potential for minimizing outage moratoria and transmission system congestion by employing planning criteria that include contingencies for a planned outage followed by an unplanned outage under peak conditions; and

(E) the operational benefits and reduced impacts on affected landowners of constructing new transmission lines operating at or below 345 kilovolts as double circuit capable lines;

(3) evaluate:

(A) the costs of the transmission project on a levelized basis over the life of the project; and

(B) the benefits of the transmission project on a levelized basis over the life of the project or the longest period determined to be reasonable by the commission; and

(4) in high growth areas and areas experiencing or expected to experience rapid growth in power demand, including coastal regions, oil and gas producing, processing, or refining regions, and semiconductor manufacturing regions, prioritize the development of additional and sufficient transmission capacity to provide flexibility to serve new load.

(d-1) For a transmission project described by Subsection (d), the commission shall require all new transmission lines operating at or below 345 kilovolts to be constructed as double circuit capable lines unless the electric utility requests an exception.

(d-2) For a transmission project described by Subsection (d)(4), the applicant for the transmission project certificate shall submit a copy of the application to the independent organization certified under Section 39.151 for the ERCOT power region. The independent organization shall review and provide the commission with the organization's recommendations regarding the application not later than the 90th day after the date the application is received. If the organization fails to provide the commission with its recommendations before the 91st day after the date the application is received, the commission shall consider the transmission project to be a project that meets the need for additional service under this section.

SECTION 2. Section 37.057, Utilities Code, is amended to read as follows:

Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION FACILITY. The commission must approve or deny an application for a certificate for a new transmission facility not later than the 181st day after [the first anniversary of] the date the application is filed. If the commission does not approve or deny the application on or before that date, a party may seek a writ of mandamus in a district court of Travis County to compel the commission to decide on the application.

SECTION 3. The changes in law made by this Act apply only to a proceeding affecting a certificate of public convenience and necessity that commences on or after the effective date of this Act. A proceeding affecting a certificate of public convenience and necessity that commenced before the effective date of this Act is governed by the law in effect on the date the proceeding is commenced, and that law is continued in effect for that purpose.

SECTION 4. 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, 2023.