SB1978 - Relating to the interconnection of a facility in the ERCOT power region to certain other facilities.

      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.