October 18, 2016, Introduced by Senator SHIRKEY and referred to the Committee on Energy and Technology.
A bill to amend 1995 PA 30, entitled
"Electric transmission line certification act,"
by amending sections 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 (MCL
460.562, 460.564, 460.565, 460.566, 460.567, 460.568, 460.569,
460.570, 460.571, 460.572, and 460.573), sections 2, 4, 5, 6, 7, 8,
9, 10, 11, and 13 as amended by 2004 PA 198.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Affiliated transmission company" means a person,
partnership, corporation, association, or other legal entity, or
its
successors or assigns, which that
has fully satisfied the
requirements to join a regional transmission organization as
determined
by the federal energy regulatory commission, Federal
Energy Regulatory Commission, is engaged in this state in the
transmission of electricity using facilities it owns that were
transferred to the entity by an electric utility that was engaged
in the generation, transmission, and distribution of electricity in
this state on December 31, 2000, and is not independent of an
electric utility or an affiliate of the utility, generating or
distributing electricity to retail customers in this state.
(b) "Certificate" means a certificate of public convenience
and necessity issued for a major transmission line under this act
or issued for a transmission line under section 9.
(c) "Commission" means the Michigan public service commission.
(d) "Construction" means any substantial action taken on a
route constituting placement or erection of the foundations or
structures supporting a transmission line. Construction does not
include preconstruction activity or the addition of circuits to an
existing transmission line.
(e) "Electric utility" means a person, partnership,
corporation, association, or other legal entity whose transmission
or distribution of electricity the commission regulates under 1909
PA 106, MCL 460.551 to 460.559, or 1939 PA 3, MCL 460.1 to
460.10cc.
460.11. Electric utility does not include a municipal
utility, affiliated transmission company, qualified transmission
company, or independent transmission company.
(f) "FERC competitive project" means a transmission project
awarded by the Federal Energy Regulatory Commission or the
appropriate regional transmission organization as part of either
Federal Energy Regulatory Commission Order 1000 or another
competitive bidding process.
(g) (f)
"Independent transmission
company" means a person,
partnership, corporation, association, or other legal entity, or
its successors or assigns, engaged in this state in the
transmission of electricity using facilities it owns that have been
divested to the entity by an electric utility that was engaged in
the generation, transmission, and distribution of electricity in
this state on December 31, 2000, and is independent of an electric
utility or an affiliate of the utility, generating or distributing
electricity to retail customers in this state.
(h) (g)
"Major transmission line"
means a transmission line of
5 miles or more in length wholly or partially owned by an electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company through which
electricity is transferred at system bulk supply voltage of 345
kilovolts or more.
(i) (h)
"Municipality" means a
city, township, or village.
(j) (i)
"Preconstruction
activity" means any activity on a
proposed route conducted before construction of a transmission line
begins. Preconstruction activity includes surveys, measurements,
examinations, soundings, borings, sample-taking, or other testing
procedures, photography, appraisal, or tests of soil, groundwater,
structures, or other materials in or on the real property for
contamination. Preconstruction activity does not include an action
that permanently or irreparably alters the real property on or
across the proposed route.
(k) "Qualified transmission company" means a person,
partnership, corporation, or other legal entity, or its successors
or assigns, other than an affiliated transmission company or an
independent transmission company, that is designated by the Federal
Energy Regulatory Commission or the appropriate regional
transmission organization as a qualified transmission developer and
that meets either of the following:
(i) Has been granted or is applying for a certificate issued
by the commission under section 8 or 9 for the construction of a
transmission project that either has been or is anticipated to be
included in a regional transmission plan approved by either the
Federal Energy Regulatory Commission or the appropriate regional
transmission organization.
(ii) Is conducting activities listed under section 5(2)(b).
(l) (j)
"Route" means real
property on or across which a
transmission line is constructed or proposed to be constructed.
(m) (k)
"Transmission line" means
all structures, equipment,
and real property necessary to transfer electricity at system bulk
supply voltage of 100 kilovolts or more.
Sec. 4. (1) If an electric utility that has 50,000 or more
residential customers in this state, affiliated transmission
company, qualified transmission company, or an independent
transmission company plans to construct a major transmission line
in this state in the 5 years after planning commences, the electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company shall submit a
construction plan to the commission. An electric utility with fewer
than 50,000 residential customers in this state may submit a plan
under this section. A plan shall include all of the following:
(a) The general location and size of all major transmission
lines to be constructed in the 5 years after planning commences.
(b) Copies of relevant bulk power transmission information
filed by the electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
with any state or federal agency, national electric reliability
coalition, or regional electric reliability coalition.
(c) Additional information required by commission rule or
order that directly relates to the construction plan.
(2) At the same time the electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company submits a construction plan to the
commission under subsection (1), the electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company shall provide a copy of the
construction plan to each municipality in which construction of the
planned major transmission line is intended.
Sec. 5. (1) An electric utility, affiliated transmission
company, qualified transmission company, or independent
transmission company shall not begin construction of a major
transmission line for which a plan has been submitted under section
4 until the commission issues a certificate for that transmission
line.
(2) Except as otherwise provided in section 9, a certificate
of public convenience and necessity under this act is not required
for either of the following:
(a) An electric utility, affiliated transmission company, or
independent transmission company that is constructing a new
transmission
line other than a major transmission line. or
(b) An electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
for reconstructing, repairing, replacing, or improving an existing
transmission line, including the addition of circuits to an
existing transmission line.
Sec. 6. (1) Before applying for a certificate under section 5,
an electric utility, affiliated transmission company, qualified
transmission company, or independent transmission company shall
schedule and hold a public meeting in each municipality through
which a proposed major transmission line for which a plan has been
submitted under section 4 would pass. A public meeting held in a
township satisfies the requirement that a public meeting be held in
each affected village located within the township.
(2) In the 60 days before a public meeting held under
subsection (1), the electric utility, affiliated transmission
company, qualified transmission company, or independent
transmission company shall offer in writing to meet with the chief
elected official of each affected municipality or his or her
designee to discuss the utility's, affiliated transmission
company's, qualified transmission company's, or independent
transmission company's desire to build the major transmission line
and to explore the routes to be considered.
Sec. 7. (1) An electric utility that has 50,000 or more
residential customers in this state, an affiliated transmission
company, qualified transmission company, or an independent
transmission company shall apply to the commission for a
certificate for a proposed major transmission line. An applicant
may withdraw an application at any time.
(2)
An application for a certificate shall must contain all of
the following:
(a) The planned date for beginning construction.
(b) A detailed description of the proposed major transmission
line, its route, and its expected configuration and use.
(c) A description and evaluation of 1 or more alternate major
transmission line routes and a statement of why the proposed route
was selected.
(d) If a zoning ordinance prohibits or regulates the location
or development of any portion of a proposed route, a description of
the location and manner in which that zoning ordinance prohibits or
regulates the location or construction of the proposed route.
(e) The estimated overall cost of the proposed major
transmission line, as well as, in the case of a FERC competitive
project, full and complete details of any cost containment
mechanisms associated with the project.
(f) Information supporting the need for the proposed major
transmission line, including identification of known future
wholesale users of the proposed major transmission line.
(g) Estimated quantifiable and nonquantifiable public benefits
of the proposed major transmission line.
(h) Estimated private benefits of the proposed major
transmission line to the applicant or any legal entity that is
affiliated with the applicant.
(i) Information addressing potential effects of the proposed
major transmission line on public health and safety.
(j) A summary of all comments received at each public meeting
and the applicant's response to those comments.
(k) Information indicating that the proposed major
transmission line will comply with all applicable state and federal
environmental standards, laws, and rules.
(l) Other information reasonably required by the commission
pursuant to rule.
Sec. 8. (1) Upon applying for a certificate, the electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company shall give public
notice in the manner and form the commission prescribes of an
opportunity to comment on the application. Notice shall be
published in a newspaper of general circulation in the area to be
affected within a reasonable time period after an application is
provided to the commission and shall be sent to each affected
municipality and each affected landowner on whose property a
portion of the proposed major transmission line will be
constructed. The notice shall be written in plain, nontechnical,
and easily understood terms and shall contain a title that includes
the name of the electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
and the words "NOTICE OF INTENT TO CONSTRUCT A MAJOR TRANSMISSION
LINE".
(2) The commission shall conduct a proceeding on the
application as a contested case under the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Upon receiving an
application for a certificate, each affected municipality and each
affected landowner shall be granted full intervenor status as of
right in commission proceedings concerning the proposed major
transmission lines.
(3) The commission may assess certificate application fees
from the electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
to cover the commission's administrative costs in processing the
application and may require the electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company to hire consultants chosen by the
commission to assist the commission in evaluating those issues the
application raises.
(4) The commission shall grant or deny the application for a
certificate not later than 1 year after the application's filing
date. If a party submits an alternative route for the proposed
major transmission line, the commission shall grant the application
for either the electric utility's, affiliated transmission
company's, qualified transmission company's, or independent
transmission company's proposed route or 1 alternative route or
shall deny the application. The commission may condition its
approval upon the applicant taking additional action to assure the
public convenience, health, and safety and reliability of the
proposed major transmission line.
(5) The commission shall grant the application and issue a
certificate if it determines all of the following:
(a) The quantifiable and nonquantifiable public benefits of
the proposed major transmission line justify its construction.
(b) The proposed or alternative route is feasible and
reasonable.
(c) The proposed major transmission line does not present an
unreasonable threat to public health or safety.
(d) The applicant has accepted the conditions contained in a
conditional grant.
(e) In the case of a FERC competitive project, that the
applicant has submitted details of binding cost containment
mechanisms that are being used for the project.
(6) A certificate issued under this section shall identify the
major transmission line's route and shall contain an approved
estimated cost for the transmission line.
(7) If construction of a proposed major transmission line is
not begun within 5 years of the date that a certificate is granted,
the certificate is invalid and a new certificate shall be required
for the proposed major transmission line.
Sec. 9. (1) An electric utility, affiliated transmission
company, qualified transmission company, or independent
transmission company may file an application with the commission
for a certificate for a proposed transmission line other than a
major transmission line. If an electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company applies for a certificate under
this section, the electric utility, affiliated transmission
company, qualified transmission company, or independent
transmission company shall not begin construction of the proposed
transmission line until the commission issues a certificate for
that transmission line.
(2) The commission shall proceed on an application in the same
manner as provided in section 8. Except as otherwise provided in
subsection (3), the provisions of this act that apply to
applications and certificates for major transmission lines apply in
the same manner to applications and certificates issued under this
section.
(3) Section 4 does not apply to a transmission line for which
a certificate is sought under this section.
Sec. 10. (1) If the commission grants a certificate under this
act, that certificate shall take precedence over a conflicting
local ordinance, law, rule, regulation, policy, or practice that
prohibits or regulates the location or construction of a
transmission line for which the commission has issued a
certificate.
(2) A zoning ordinance or limitation imposed after an electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company files for a
certificate shall not limit or impair the transmission line's
construction, operation, or maintenance.
(3) In an eminent domain or other related proceeding arising
out of or related to a transmission line for which a certificate is
issued, a certificate issued under this act is conclusive and
binding as to the public convenience and necessity for that
transmission line and its compatibility with the public health and
safety or any zoning or land use requirements in effect when the
application was filed.
Sec. 11. In a civil action in the circuit court under section
4 of the uniform condemnation procedures act, 1980 PA 87, MCL
213.54, the court may grant a limited license to an electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company for entry on land to
conduct preconstruction activity related to a proposed major
transmission line or a transmission line if the electric utility,
affiliated transmission company, qualified transmission company, or
independent transmission company has scheduled or held a public
meeting in connection with a certificate sought under section 7 or
9 and if written notice of the intent to enter the land has been
given to each affected landowner on whose property the electric
utility, affiliated transmission company, qualified transmission
company, or independent transmission company wishes to enter. The
limited license may be granted upon such terms as justice and
equity require. An electric utility, affiliated transmission
company, qualified transmission company, or independent
transmission company that obtains a limited license shall provide
each affected land owner with a copy of the limited license. A
limited license shall include a description of the purpose of
entry, the scope of activities permitted, and the terms and
conditions of entry with respect to the time, place, and manner of
entry. The court shall not deny a limited license for entry to
conduct preconstruction activity for any of the following reasons:
(a) A disagreement exists over the proposed route.
(b) The electric utility, affiliated transmission company, or
independent transmission company has not yet applied for a
certificate.
(c) The commission has not yet granted or denied the
application.
(d) An alleged lack of public convenience or necessity.
Sec. 12. Reasonable and prudent costs for a transmission line
for which a certificate is issued shall be included in an electric
utility's rates. The commission shall not disallow costs the
electric utility incurs in constructing a transmission line for
which a certificate is issued, which costs do not exceed the
approved estimated cost amount set forth in the certificate unless
the commission determines that the actual costs were imprudently
and unreasonably incurred, based upon substantial evidence
presented in opposition to the electric utility's rate request.
Costs incurred by the electric utility that exceed the approved
estimated cost amount set forth in the certificate shall be
included in the electric utility's rates, if reasonably and
prudently incurred based upon substantial evidence presented in
support of the electric utility's rate request.
Sec. 13. (1) Except as otherwise provided in this section,
information obtained by the commission under this act is a public
record as provided in the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(2) An electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
may designate information received from a third party that the
electric utility, affiliated transmission company, or independent
transmission company submits to the commission in an application
for a certificate or in other documents required by the commission
for purposes of certification submitted to the commission as being
only for the confidential use of the commission. The commission
shall notify the electric utility, affiliated transmission company,
qualified transmission company, or independent transmission company
of a request for public records under section 5 of the freedom of
information act, 1976 PA 442, MCL 15.235, if the scope of the
request includes information designated as confidential. The
electric utility, affiliated transmission company, qualified
transmission company, or independent transmission company has 10
days after the receipt of the notice to demonstrate to the
commission that the information designated as confidential should
not be disclosed because the information is a trade secret or
secret process or is production, commercial, or financial
information the disclosure of which would jeopardize the
competitive position of the electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company or the person from whom the
information was obtained. The commission shall not grant the
request for the information if the electric utility, affiliated
transmission company, qualified transmission company, or
independent transmission company demonstrates to the satisfaction
of the commission that the information should not be disclosed for
a reason authorized in this section. If the commission makes a
decision to grant a request, the information requested shall not be
released until 3 days have elapsed after notice of the decision is
provided to the electric utility, affiliated transmission company,
or independent transmission company.
(3) If any person uses information described in subsection (1)
to forecast electrical demand, the person shall structure the
forecast so the third party is not identified unless the third
party waives confidentiality.