88R3710 JXC-D
 
  By: Rosenthal H.B. No. 3177
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the interconnection of the ERCOT power grid to grids
  outside the ERCOT power region.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 2, Utilities Code, is amended
  by adding Chapter 39A to read as follows:
  CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS
  OUTSIDE ERCOT POWER REGION
         Sec. 39A.0101.  UTILITY AND COOPERATIVE AUTHORITY.
  Notwithstanding any other law, a transmission and distribution
  utility, municipally owned utility, or electric cooperative that
  transmits or distributes power purchased at wholesale in the ERCOT
  power region may construct, own, and operate facilities as
  necessary to:
               (1)  access transmission service from outside of the
  ERCOT power region; and
               (2)  purchase power at wholesale from outside of the
  ERCOT power region.
         Sec. 39A.0102.  COMMISSION AUTHORITY. (a) The commission
  may request any federal approval necessary for the interconnection
  of a facility described by Section 39A.0101.
         (b)  Unless otherwise provided by federal law, the
  commission shall require the independent organization certified
  for the ERCOT power region under Section 39.151 to approve the
  interconnection of a facility described by Section 39A.0101 unless
  the commission or the independent organization determines that the
  interconnection poses a significant and imminent risk to public
  health and safety.
         (c)  The commission may provide technical and administrative
  assistance to a transmission and distribution utility, municipally
  owned utility, or electric cooperative seeking to construct, own,
  or operate a facility described by Section 39A.0101.
         Sec. 39A.0103.  SYNCHRONOUS AND NON-SYNCHRONOUS
  INTERCONNECTIONS. (a) This chapter applies to synchronous and
  non-synchronous interconnections.
         (b)  Unless otherwise provided by federal law, the
  commission shall approve an application for a certificate of
  convenience and necessity submitted under Section 39A.0104 by a
  transmission and distribution utility, municipally owned utility,
  or electric cooperative for a facility that would synchronously
  interconnect to a facility outside the ERCOT power region if the
  application complies with all applicable provisions of Chapter 37
  and this chapter.
         (c)  Not later than September 1, 2025, the commission shall
  identify transmission facilities in ERCOT that may be synchronously
  interconnected with transmission facilities outside of ERCOT for
  the purpose of allowing federal regulation of transmission service
  and wholesale power sales in ERCOT. Notwithstanding any other law,
  the commission shall require a transmission and distribution
  utility, municipally owned utility, or electric cooperative that
  owns a transmission facility identified by the commission to make
  requests, obtain approvals, enter into contracts, and construct
  facilities as necessary to synchronously interconnect the facility
  with a transmission facility outside of ERCOT. This subsection
  expires August 31, 2029.
         SECTION 2.  Sections 37.051(c-1), (c-2), and (c-3),
  Utilities Code, are redesignated as Section 39A.0104, Utilities
  Code, and amended to read as follows:
         Sec. 39A.0104.  CERTIFICATES OF CONVENIENCE AND NECESSITY.
  (a) A transmission and distribution utility, [(c-1)
  Notwithstanding any other provision of this title except Section
  11.009, and except as provided by Subsection (c-2), a person,
  including an electric utility or] municipally owned utility, or
  electric cooperative may not interconnect a facility described by
  Section 39A.0101 [to the ERCOT transmission grid that enables
  additional power to be imported into or exported out of the ERCOT
  power grid] unless the utility or cooperative [person] obtains a
  certificate from the commission in the manner provided by Chapter
  37 and this chapter stating that the interconnection does not pose a
  significant and imminent risk to public health and safety [public
  convenience and necessity requires or will require the
  interconnection].
         (b)  In the case of a conflict between Chapter 37 and this
  chapter, this chapter prevails. 
         (c)  Sections 37.056(c)(1) and (2) and (d) do not apply to an
  application for a certificate described by Subsection (a).
         (d)  Unless otherwise provided by federal law, the
  commission shall approve an application for a certificate described
  by Subsection (a) unless the commission determines that granting
  the application poses a significant and imminent risk to public
  health and safety.
         (e)  The transmission and distribution utility, municipally
  owned utility, or electric cooperative [person] must apply to the
  commission for a [the] certificate described by Subsection (a) not
  later than the 180th day before the date the utility or cooperative
  [person] seeks any order from the Federal Energy Regulatory
  Commission related to the interconnection.
         (f) [The commission shall apply Section 37.056 in
  considering an application under this subsection. In addition, the
  commission must determine that the application is consistent with
  the public interest before granting the certificate. The commission
  may adopt rules necessary to implement this subsection. This
  subsection does not apply to a facility that is in service on
  December 31, 2014.
         [(c-2)] The commission, not later than the 185th day after
  the date the application is filed, shall approve an application
  [filed under Subsection (c-1)] for a facility that is to be
  constructed under an interconnection agreement appended to an offer
  of settlement approved in a final order of the Federal Energy
  Regulatory Commission that was issued in Docket No. TX11-01-001 on
  or before December 31, 2014, directing physical connection between
  the ERCOT and SERC regions under Sections 210, 211, and 212 of the
  Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In
  approving the application, the commission may prescribe reasonable
  conditions to protect the public interest that are consistent with
  the final order of the Federal Energy Regulatory Commission.
         (g) [(c-3)] Nothing in this section [Subsection (c-1) or
  (c-2)] is intended to restrict the authority of the commission or
  the independent organization certified under Section 39.151 for the
  ERCOT power region to adopt rules or protocols of general
  applicability.
         SECTION 3.  This Act takes effect September 1, 2023.