By: Hall S.B. No. 1978

A BILL TO BE ENTITLED

AN ACT

relating to the interconnection of a facility in the ERCOT power region to a facility outside the power region.

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

SECTION 1. Sections 37.051(c-1), (c-2), and (c-3), Utilities Code, are transferred to Subchapter D, Chapter 39, Utilities Code, redesignated as Section 39.169, Utilities Code, and amended to read as follows:

Sec. 39.169. INTERCONNECTION OF FACILITY IN ERCOT POWER REGION TO FACILITY IN OTHER REGION OR STATE. (a) In this subsection, "facility" means a facility that consumes, produces, generates, transmits, distributes, or furnishes electricity. A person, including an electric cooperative or a municipally owned utility, may not take an action that would result in the interconnection of a facility in the ERCOT power region to a facility located wholly or partly outside of this state, or the interconnection of a facility in the ERCOT power region to a facility that is connected directly or indirectly with a facility located wholly or partly outside of this state, unless:

(1) the commission first determines that the interconnection is consistent with free market principles and does not bring control of the Texas electric grid under federal jurisdiction; and

(2) if applicable, the person complies with the requirements of Chapter 37 and Subsection (b) of this section.

(b) A person seeking to make an interconnection described by Subsection (a) [(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, 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 person obtains a certificate from the commission stating that public convenience and necessity requires or will require the interconnection. The person] must obtain the determination under (a)(1) from the commission [apply for the certificate] not later than the 180th day before the date the person seeks any order from the Federal Energy Regulatory Commission related to the interconnection. The commission shall apply Section 37.056 in considering an application for a certificate of convenience and necessity to which this section applies [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) [(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.

(d) [(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 2. Section 39.169(a), Utilities Code, as added by this Act, applies only to an action taken on or after the effective date of this Act. An action taken before the effective date of this Act is governed by the law in effect when the action was taken, 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.