HB4091 - Relating to the interconnection of the ERCOT power grid to grids outside the ERCOT power region.

  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.