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A BILL TO BE ENTITLED
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AN ACT
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relating to the right of an electric cooperative to construct, |
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maintain, and operate facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 41.005, Utilities Code, is amended to |
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read as follows: |
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Sec. 41.005. LIMITATION ON MUNICIPAL AUTHORITY. |
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Notwithstanding any other provision of this title, a municipality |
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may not directly or indirectly regulate the rates, operations, and |
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services, as that term is defined under Section 11.003, Utilities |
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Code, including transmission services, as that term is defined |
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under Section 31.002, Utilities Code, of an electric cooperative, |
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except, with respect to operations, a municipality may impose |
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conditions reasonably [to the extent] necessary to protect the |
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public health, safety, or welfare. This section does not prohibit a |
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municipality from making a lawful charge for the use of public |
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rights-of-way within the municipality as provided by Section |
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182.025, Tax Code, and Section 33.008. An electric cooperative |
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shall be an electric utility for purposes of Section 182.025, Tax |
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Code, and Section 33.008. |
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SECTION 2. Section 31.002(20), Utilities Code, is amended |
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to read as follows: |
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(20) "Transmission service" includes construction or |
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enlargement of facilities, siting of infrastructure facilities, |
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transmission over distribution facilities, control area services, |
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scheduling resources, regulation services, reactive power support, |
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voltage control, provision of operating reserves, and any other |
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associated electrical service the commission determines |
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appropriate, except that, on and after the implementation of |
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customer choice, control area services, scheduling resources, |
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regulation services, provision of operating reserves, and reactive |
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power support, voltage control, and other services provided by |
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generation resources are not "transmission service." |
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SECTION 3. Section 37.052, Utilities Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) If an electric utility requests consent under |
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Subsection (c)(2) from a municipality, the municipality must grant |
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or deny such request within 90 days of the electric utility's |
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request for consent. If the municipality fails to grant or deny |
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consent within 90 days of the electric utility's consent, the |
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electric utility is presumed to have been granted such consent. |
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SECTION 4. Section 181.041(1), Utilities Code, is amended |
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to read as follows: |
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(1) "Electric utility" means: |
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(A) [an electric cooperative organized under |
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Chapter 161; |
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[(B)] a corporation or river authority, if the |
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river authority is created by a statute of this state: |
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(i) that generates, transmits, or |
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distributes electric energy in this state; and |
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(ii) whose operations are subject to the |
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judicial and legislative processes of this state; or |
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(B) [(C)] a municipal electric utility. |
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SECTION 5. Section 161.125, Utilities Code, is amended to |
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read as follows: |
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Sec. 161.125. EMINENT DOMAIN AND AUTHORITY TO CONSTRUCT, |
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MAINTAIN, AND OPERATE FACILITIES. (a) An electric cooperative may |
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exercise the power of eminent domain in the manner provided by state |
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law for acquiring private property for public use. The power does |
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not apply to state property or property of a political subdivision |
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in this state. |
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(b) An electric cooperative has the right to construct, |
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maintain, and operate facilities over, under, across, on, or along |
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state property or property of a political subdivision in this |
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state. |
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(1) An electric cooperative may exercise this |
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authority subject to reasonable conditions of the relevant state |
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agency or governing body of the political subdivision necessary to |
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protect the public health, safety, or welfare. |
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(2) Any such conditions must be issued by the relevant |
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state agency or governing body of the political subdivision within |
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90 days of notice by the electric cooperative. |
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(3) The electric cooperative shall be authorized to |
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proceed with the construction, maintenance, and operation of the |
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facilities by the earlier of: |
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(A) the date the conditions issued under |
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Subsection (b)(2) are satisfied; or |
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(B) a date that is not later than 120 days after |
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any such conditions under Subsection (b)(2) are issued by the |
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relevant state agency or governing body of the political |
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subdivision. |
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(4) An electric cooperative exercising this right |
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shall be subject to the requirements applicable to electric |
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utilities under Sections 181.044, 181.045, and 181.046, Utilities |
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Code. |
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SECTION 6. This Act takes effect September 1, 2023. |