By: Bonnen, Hancock, Branch, King of Parker,	H.B. No. 2713
	England, et al.

	A BILL TO BE ENTITLED
	AN ACT
	relating to studies, plans, and projects concerning electric
	generation capacity or electric energy storage, transmission, or
	distribution.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1.  INTERIM SPECIAL COMMITTEE ON ELECTRIC ENERGY GENERATION
	CAPACITY AND ENVIRONMENTAL IMPACT
	SECTION 1.01.  COMPOSITION OF COMMITTEE. (a)  The Interim
	Special Committee on Electric Energy Generation Capacity and
	Environmental Impact is composed of:
	(1)  the chair of the House Environmental Regulation
	Committee;
	(2)  the chair of the House Energy Resources Committee;
	(3)  the chair of the House Committee on Regulated
	Industries;
	(4)  the chair of the Senate Natural Resources
	Committee;
	(5)  the chair of the Senate Business and Commerce
	Committee;
	(6)  four members of the house of representatives,
	appointed by the speaker of the house of representatives;
	(7)  five members of the senate, appointed by the
	lieutenant governor;
	(8)  one member representing the electric generation
	industry, appointed by the governor;
	(9)  one member representing the academic community in
	the area of energy and environmental studies, appointed by the
	governor; and
	(10)  one member representing a public interest
	organization, appointed by the governor.
	(b)  The speaker of the house of representatives and the
	lieutenant governor shall each designate a co-chair from among the
	committee members.
	(c)  Not later than the 60th day after the effective date of
	this Act, the speaker of the house of representatives and the
	lieutenant governor shall appoint the members of the interim
	committee.
	SECTION 1.02.  STUDY; PLAN.  (a)  The committee shall:
	(1)  study the state's demand for electric generation
	capacity for the next 50 years and the infrastructure and
	technology available for meeting that demand;
	(2)  study the environmental effects of existing
	electric generating facilities, including the effects on global
	warming or climate change; and
	(3)  prepare a long-term electric energy and
	environmental impact plan for the 80th Legislature that includes:
	(A)  an estimate of the demand for electric
	generation capacity by this state for each of the next 50 years;
	(B)  an inventory of all existing electric
	generating facilities operating in this state;
	(C)  an assessment of the types of, and amount of
	electric generation capacity from, electric generation technology
	available to be used to meet the demand for generation capacity,
	including:
	(i)  coal;
	(ii)  renewable energy;
	(iii)  liquefied natural gas;
	(iv)  nuclear energy;
	(v)  integrated gasification combined cycle
	technology;  and
	(vi)  hydrogen gas;
	(D)  an assessment of the environmental effects of
	existing and potential electric generating facilities and energy
	generation technology, including the effects on:
	(i)  the emission of pollutants regulated by
	the federal Clean Air Act (42 U.S.C. Section 7412);
	(ii)  the emission of carbon dioxide and
	other greenhouse gasses;
	(iii)  the cumulative effect on air quality
	in nonattainment areas;
	(iv)  whether an increase in emissions would
	cause an area to become a nonattainment area; and
	(v)  global warming or climate change;
	(E)  an assessment of the reliability of existing
	electric generating facilities to meet the demand for electric
	generation capacity;
	(F)  an estimate of the costs associated with
	meeting the demand for electric generation capacity; and
	(G)  recommendations for reducing demand through
	the use of energy efficiency programs.
	(b)  In preparing the plan required by Subsection (a), the
	committee may consult with:
	(1)  the Texas Commission on Environmental Quality;
	(2)  the Public Utility Commission of Texas;
	(3)  the Railroad Commission of Texas; and
	(4)  the Electric Reliability Council of Texas.
	(c)  Each agency named by Subsection (b) shall designate an
	individual as the point of contact for the committee.
	(d)  The committee shall file with the legislature the
	long-term electric energy and environmental impact plan required by
	Subsection (a) not later than January 15, 2009.
	SECTION 1.03.  COMMITTEE MEETINGS. The joint interim
	committee shall meet initially at the joint call of the co-chairs,
	and the committee shall subsequently hold meetings and public
	hearings at the call of the co-chairs.
	SECTION 1.04.  COMMITTEE POWERS AND DUTIES. The committee
	has all powers and duties provided to special committees by the
	senate and house of representatives rules of procedure, by
	Subchapter B, Chapter 301, Government Code, and by policies of the
	committees on administration.
	SECTION 1.05.  COMMITTEE FUNDING.  (a) From the contingent
	expense fund of the senate and the contingent expense fund of the
	house of representatives equally, the members of the committee
	shall be reimbursed for expenses incurred in carrying out the
	provisions of this article in accordance with the senate and house
	of representatives rules of procedure and the policies of the
	committees on administration.
	(b)  Other necessary expenses of operation shall be paid from
	the contingent expense fund of the senate and the contingent
	expense fund of the house of representatives equally.
	SECTION 1.06.  EFFECTIVE DATE. This article takes effect
	September 1, 2007.
	ARTICLE 2.  ELECTRIC ENERGY STORAGE DEVICES
	SECTION 2.01.  DEFINITION.  In this article, "commission"
	means the Public Utility Commission of Texas.
	SECTION 2.02.  STUDY.  (a) The commission shall conduct a
	study on the potential of electric energy storage devices to
	benefit the operation of transmission and distribution systems. In
	conducting the study, the commission shall consider any relevant
	issues, including:
	(1)  the effect of the devices on system reliability;
	(2)  the advantages and disadvantages of transmission
	and distribution utilities owning and operating those devices as
	transmission and distribution facilities;
	(3)  the manner in which the devices may be integrated
	into the ERCOT operating system, if applicable;
	(4)  the manner in which the devices may benefit power
	generation companies, retail electric providers, electric
	utilities, and transmission and distribution utilities; and
	(5)  the appropriate methods to bill and account for
	any costs and revenue associated with the electric energy that is
	used to charge, and that is later discharged from, a device.
	(b)  The commission shall prepare a report on the results of
	the study. The report must include the commission's conclusions on
	the potential of electric energy storage devices and, as
	appropriate, recommendations to the legislature on legislation or
	other action necessary to realize that potential. The commission
	shall include the report in the electric market scope of
	competition report required by Section 31.003, Utilities Code, that
	the commission submits to the 81st Legislature.
	(c)  The commission shall conduct the study and prepare the
	report as required by this section:
	(1)  with input from the ERCOT independent system
	operator; and
	(2)  after requesting comments and input from all
	interested parties.
	SECTION 2.03.  DEMONSTRATION PROJECTS. (a) The commission
	may authorize one or more electric utilities or transmission or
	distribution utilities to operate demonstration projects that
	involve facilities capable of not more than two megawatts of
	electric energy storage for the purpose of obtaining a better
	understanding of the facilities':
	(1)  cost;
	(2)  value; and
	(3)  operational characteristics, including the
	efficient use of the transmission system and the facilities' effect
	on removing transmission constraints.
	(b)  The operation of a demonstration project under this
	section does not prejudice the study required by Section 2.02 of
	this article or any future determination relating to the
	appropriateness of an electric utility or transmission and
	distribution utility owning and operating electric energy storage
	facilities.
	(c)  This section may not be interpreted to require an
	electric utility or transmission and distribution utility to
	install an electric energy storage facility.
	SECTION 2.04.  EFFECTIVE DATE. This article takes effect
	immediately if this Act 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 article takes effect September
	1, 2007.
	ARTICLE 3.  EFFECTIVE DATE
	SECTION 3.01.  Except as otherwise provided by this Act,
	this Act takes effect September 1, 2007.