89R8612 JXC-D
 
  By: Anchía H.B. No. 4091
 
 
 
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.  Section 31.002(5), Utilities Code, is amended to
  read as follows:
               (5)  "Electric Reliability Council of Texas" or "ERCOT"
  means:
                     (A)  the area in Texas served by electric
  utilities, municipally owned utilities, and electric cooperatives
  that is not synchronously interconnected with electric utilities
  outside the state; or
                     (B)  if the commission approves a synchronous
  interconnection under Chapter 39A, an area designated by the
  commission by rule as necessary to administer this subtitle.
         SECTION 2.  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)  interconnect transmission facilities inside the
  ERCOT power region to transmission facilities outside of the ERCOT
  power region; and
               (2)  purchase power at wholesale from outside of the
  ERCOT power region.
         Sec. 39A.0102.  SALE AUTHORITY.  Notwithstanding any other
  law, an electric utility, electric cooperative, municipally owned
  utility, or power generation company operating in this state may
  sell electric energy at wholesale for retail sale inside or outside
  the ERCOT power region for the purposes of this chapter.
         Sec. 39A.0103.  COMMISSION AUTHORITY. (a) The commission
  may request any federal approval necessary for the synchronous or
  nonsynchronous interconnection of a facility described by Section
  39A.0101.
         (b)  The commission may require the independent organization
  certified for the ERCOT power region under Section 39.151 to
  approve the synchronous or nonsynchronous interconnection of a
  facility described by Section 39A.0101 unless otherwise provided by
  federal law or 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.
         (d)  The commission shall implement, and shall provide to the
  Federal Energy Regulatory Commission, the Electric Reliability
  Organization as defined by 16 U.S.C. Section 824o, and the
  independent organization certified under Section 39.151 for the
  ERCOT power region any assistance necessary to implement, a
  reliability standard for the purposes of this chapter that requires
  minimum total transfer capabilities between the ERCOT power region
  and other regions as follows: 
               (1)  4.3 gigawatts between the area under functional
  control of the independent organization and the area under
  functional control of the Southwest Power Pool;
               (2)  2.5 gigawatts between the area under functional
  control of the independent organization and the area under
  functional control of Midcontinent Independent System Operator;
  and
               (3)  2.6 gigawatts between the area under functional
  control of the independent organization and the Western
  Interconnection.
         (e)  The commission shall designate one or more entities
  described by Section 39A.0101 to site and construct new
  transmission facilities or modify existing transmission facilities
  to achieve the minimum total transfer capabilities described by
  Subsection (d) or delegate authority to the independent
  organization certified under Section 39.151 for the ERCOT power
  region to designate the entities.
         (f)  Notwithstanding any other law, the commission may
  require an entity designated under Subsection (e) to make requests,
  obtain approvals, enter into contracts, and construct or modify
  facilities as necessary to interconnect a transmission facility
  with a facility outside of ERCOT.
         SECTION 3.  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 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)  The commission may approve an application for a
  certificate described by Subsection (a) unless otherwise provided
  by federal law or 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 4.  This Act takes effect September 1, 2025.