88R14140 JXC-D     By: Bryant H.B. No. 5297       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.  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)  access transmission service from outside of the   ERCOT power region; and                (2)  purchase power at wholesale from outside of the   ERCOT power region.          Sec. 39A.0102.  COMMISSION AUTHORITY. (a) The commission   may request any federal approval necessary for the interconnection   of a facility described by Section 39A.0101.          (b)  Unless otherwise provided by federal law, the   commission shall require the independent organization certified   for the ERCOT power region under Section 39.151 to approve the   interconnection of a facility described by Section 39A.0101 unless   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 may approve wholesale electricity   transactions between entities in the ERCOT power region and   entities outside the ERCOT power region.          Sec. 39A.0103.  SYNCHRONOUS AND NON-SYNCHRONOUS   INTERCONNECTIONS. (a) This chapter applies to synchronous and   non-synchronous interconnections.          (b)  Unless otherwise provided by federal law, the   commission shall approve an application for a certificate of   convenience and necessity submitted under Section 39A.0104 by a   transmission and distribution utility, municipally owned utility,   or electric cooperative for a facility that would synchronously   interconnect to a facility outside the ERCOT power region if the   application complies with all applicable provisions of Chapter 37   and this chapter.          SECTION 2.  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 described by   Section 39A.0101 [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)  Unless otherwise provided by federal law, the   commission shall approve an application for a certificate described   by Subsection (a) unless 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 3.  (a)  It is the intent of the legislature that the   ERCOT power region become synchronously interconnected to other   power regions not later than December 31, 2030.          (b)  Not later than October 1, 2024, the Public Utility   Commission of Texas shall examine the laws and rules governing the   entities and facilities described by Section 39A.0101, Utilities   Code, as added by this Act, and submit a report to the legislature   with recommendations for legislative and administrative action   needed to facilitate the interconnection of facilities in the ERCOT   power region with other power regions.          (c)  Not later than October 1, 2024, the comptroller of   public accounts shall conduct a study on the costs to the public and   this state of the power outages that occurred as a result of Winter   Storm Uri. The study must include an estimate of the average cost   per household in the ERCOT power region and a comparison of those   costs to costs incurred by households in other states that   experienced power outages from Winter Storm Uri.          SECTION 4.  This Act takes effect September 1, 2023.