HomeMy WebLinkAboutRes 2017-03-297 Supporting House Bill 1427 CITY OF ANNA, TEXAS
RESOLUTION NO. )- 00.03 -Mq
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE ANNA, TEXAS,
SUPPORTING HOUSE BILL 1427 WHICH AMENDS SECTION 41.005 OF THE TEXAS
UTILITIES CODE TO CLARIFY THAT A MUNICIPALITY MAY REGULATE THE
OPERATIONS OF AN ELECTRIC COOPERATIVE THROUGH THE CITY'S ZONING
ORDINANCE WHICH IS A PERMISSIBLE PUBLIC HEALTH, SAFETY, OR WELFARE
REGULATION; PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE.
WHEREAS, House Bill 1427 (2017), a copy of which is attached hereto as Exhibit A, proposes
to amend Section 41.005 of the Texas Utilities Code, also referred to as the Public Utility
Regulatory Act ("PURA"); and
WHEREAS, Section 41.005 of the Texas Utilities Code currently provides in part that a
municipality may not directly or indirectly regulate the rates, operations, and services of an
electric cooperative except, with respect to operations, to the extent necessary to protect the
public health, safety, or welfare, and
WHEREAS, municipal zoning authority is contained in Chapter 211 of the Texas Local
Government Code; and
WHEREAS, Section 211.001 of the Texas Local Government Code states the following: "The
[zoning] powers granted under this subchapter are for the purpose of promoting the public
health, safety, morals, or general welfare and protecting and preserving places and areas of
historical, cultural, or architectural importance and significance;" and
WHEREAS, an inline electrical substation has been defined by the rules of the Public Utility
Commission of Texas ("PUC") to be an electrical substation constructed within one (1) mile of
an existing electrical transmission line; and
WHEREAS, the Public Utility Commission of Texas currently does not control where an electric
cooperative may locate an inline electrical substation; and
WHEREAS, the Public Utility Commission of Texas currently does not require a certificate of
convenience and necessity ("CCN") to be held by an electric cooperative for the placement and
location of an inline electrical substation; and
WHEREAS, electrical cooperatives' and the PVC's view of Section 41.005 of the Texas Utilities
Code and PURA is that electrical cooperatives are the first, only, and final decision-maker on
the placement and location of inline electrical substations; and
WHEREAS, electrical cooperatives' and the PUC's view of Section 41.005 of the Texas Utilities
Code and PURA results in a regulatory vacuum with no oversight by the State of Texas, or any
county or municipality as to the placement and location of inline electrical substations; and
WHEREAS, the City Council of the City of Anna, Texas, believes Section 41.005 of the Texas
Utilities Code currently preserves the authority for the City, through its zoning ordinance, to
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SUPPORTING HOUSE BILL 1427 1
regulate the location of an inline electrical substation of an electric cooperative, provided the
City does not use its zoning powers to exclude the electric cooperative from the City; and
WHEREAS, to conclude otherwise leaves the citizens of the State of Texas to the whims of
electrical cooperatives on the placement and location of inline electrical substations with no
venue for contesting such placement and no oversight by the State of Texas or the impacted
local municipality.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA,
TEXAS, THAT:
SECTION 1. The City Council of the City of Anna, Texas, strongly supports House Bill 1427
(2017) and any legislation that would clarify that Section 41.005 of the Texas Utilities Code
does not prohibit Texas municipalities from enforcing zoning or other land use regulations,
authorized pursuant to the Texas Constitution or the laws of the State of Texas, on an electric
cooperative.
SECTION 2. This support for House Bill 1427 (2017) and any similar legislation be
communicated to members of the Texas Legislature and the Texas Governor's office.
SECTION 3. This Resolution shall become effective from and after its date of passage in
accordance with law.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 28th day
of March, 2017.
ATTEST: APP OVED:
\`gtiltU / r
City Secretary Carrie L. Smith ,\t`,`(y OF q % Mayor Mike Crist
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Exhibit A
[House Bill 1427 (2017)]
By: Fallon H.B. No. 1427
A BILL TO BE ENTITLED
1 AN ACT
2 relating to a municipality's ability to enforce zoning and other
3 land use regulations against electric companies.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
5 SECTION 1. Section 41.005, Utilities Code, is amended to
6 read as follows:
7 Sec. 41.005. LIMITATION ON MUNICIPAL AUTHORITY. (a)
18 Notwithstanding any other provision of this title, a municipality
9 may not directly or indirectly regulate the rates, operations, and
10 services of an electric cooperative, except, with respect to
11 operations, to the extent necessary to protect the public health,
12 safety, or welfare.
13 (b) This section does not prohibit a municipality from
14 making a lawful charge for the use of public rights-of-way within
15 the municipality as provided by Section 182.025, Tax Code, and
16 Section 33.008 of this code. An electric cooperative shall be an
17 electric utility for purposes of Section 182.025, Tax Code, and
18 Section 33.008 of this code.
19 (c) This section does not prohibit a municipality from
20 enforcing the municipality's zoning or other land. use regulations,
21 including a specific use permit, except that a municipality's
22 enforcement of the ro-unicipality's land use regulations rnay not:
23 (1) operate to exclude the electric cooperative from
24 the mvnicipality; or
85RS256 GRM-F 1
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SUPPORTING HOUSE BILL 1427 3
E.B. No. 1427
1 (2) directly conflict with a certification granted by
2 the commission under Chapter 37.
3 SECTION 2. This Act takes effect September 1, 2017.
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