By: Hall, Hughes S.B. No. 1978
      Kolkhorst
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the interconnection of a facility in the ERCOT power
  region to certain other facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 37.051, Utilities Code, is amended by
  amending Subsections (c), (c-1), (c-2), and (c-3) and adding
  Subsection (c-4) to read as follows:
         (c)  Notwithstanding any other provision of this chapter
  except Subsection (c-1)[, including Subsection (a)], an electric
  cooperative is not required to obtain a certificate of public
  convenience and necessity for the construction, installation,
  operation, or extension of any generating facilities or necessary
  interconnection facilities.
         (c-1)  In this subsection, "facility" means a facility that
  consumes, generates, transmits, or distributes electricity.  
  Notwithstanding any other provision of this title except Section
  11.009, and except as provided by Subsection (c-3) [(c-2)], an
  electric cooperative, [a person, including] an electric utility, a
  [or] municipally owned utility, or another person[,] may not
  interconnect a facility in [to] the ERCOT power region to a facility
  located wholly or partly outside of this state or to a facility that
  is connected directly or indirectly with a facility located wholly
  or partly outside of this state, [transmission grid that enables
  additional power to be imported into or exported out of the ERCOT
  power grid] unless:
               (1)  the proposed interconnection will not subject the
  ERCOT power region to additional federal control or jurisdiction;
               (2)  the commission first determines that the proposed
  interconnection is in the public interest after considering:
                     (A)  the technical attributes of the proposed
  interconnection;
                     (B)  the expected costs to the public to install,
  operate, and maintain the interconnection;
                     (C)  the results of relevant criteria adopted by
  the commission under Section 37.056(d);
                     (D)  the results of a reliability assessment
  conducted by the independent organization certified under Section
  39.151 for the ERCOT power region; and
                     (E)  any other information the commission
  considers appropriate;
               (3)  the cooperative, utility, or person applies for a
  public interest determination from the commission under
  Subdivision (2) [the person obtains a certificate from the
  commission stating that public convenience and necessity requires
  or will require the interconnection. The person must apply for the
  certificate] not later than the 180th day before the date the
  cooperative, utility, or person seeks any order from the Federal
  Energy Regulatory Commission related to the proposed
  interconnection; and
               (4)  after the cooperative, utility, or person obtains
  any order from the Federal Energy Regulatory Commission related to
  the proposed interconnection, the commission grants a certificate
  stating that public convenience or necessity requires or will
  require the interconnection.
         (c-2)  The commission shall apply Section 37.056 in
  considering an application under Subsection (c-1) [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 Subsection (c-1) [this subsection]. Subsection (c-1)
  [This subsection] does not apply to a facility that is in service on
  December 31, 2014.
         (c-3) [(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.
         (c-4) [(c-3)]  Nothing in Subsection (c-1), [or] (c-2), or
  (c-3) 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 2.  The changes in law made by this Act in Section
  37.051, Utilities Code, apply only to an interconnection made on or
  after the effective date of this Act. An interconnection made
  before the effective date of this Act is governed by the law in
  effect when the interconnection was made, and the former law is
  continued in effect for that purpose.
         SECTION 3.  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, 2025.