HB3092

Regular Session

Relating to a certificate of public convenience and necessity to construct an electric transmission line.

ModeratePlan for compliance

Low Cost

Effective:2025-06-20

Enforcing Agencies

Public Utility Commission of Texas

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Effective immediately upon Governor's signature due to supermajority passage).
Compliance Deadline: Immediate. Utilities may utilize the expanded exemption for any project not yet filed with the PUCT.
Agency Rulemaking: The PUCT will likely update 16 TAC § 25.101 to reflect the statutory change. However, the statute is self-executing; do not wait for rule updates to utilize the 5-mile threshold.

Immediate Action Plan

1. Halt Filings: Immediately stop any CCN applications currently being drafted for load-serving lines between 3 and 5 miles.
2. Screen Projects: Conduct a GIS review of all capital projects in the 3-5 mile range. Identify which routes have high probability of 100% voluntary consent.
3. Withdraw Pending Cases: If you have a pending CCN application for a qualifying line and can secure necessary easements, move to withdraw the application to save litigation costs.
4. Update Standard Operating Procedures: Revise internal routing manuals to reflect the 5-mile exemption criteria effective June 20, 2025.

Operational Changes Required

Contracts

Interconnection Agreements: Review pending agreements with large industrial loads (data centers, manufacturing) located 3-5 miles from substations. You can now contractually commit to accelerated energization dates, as the 6-12 month CCN litigation risk is removed.
Land Agent Agreements: Revise compensation structures for Right-of-Way (ROW) agents working on 3-5 mile segments. Shift incentives from "general acquisition" to "100% voluntary acquisition," as a single holdout forces the project back into the slow CCN process.

Hiring/Training

Engineering & Planning: Retrain transmission planners to prioritize "consent-friendly" routes over "shortest-distance" routes for projects under 5 miles. The operational priority is now avoiding condemnation to utilize the exemption.
Land Staff: Ensure land agents understand they cannot threaten eminent domain for projects proceeding under this specific exemption.

Reporting & Record-Keeping

Exemption Justification Log: Maintain a strict internal compliance log citing Section 37.052(c)(1)(A) for every project between 3 and 5 miles built without a CCN.
Consent Audit Trail: You must possess written consent from *every* directly affected landowner before construction begins. A missing consent form creates a title defect and regulatory liability.

Fees & Costs

Legal Budget: Anticipate a reduction in outside counsel fees for regulatory litigation on mid-length lines.
Acquisition Budget: Anticipate a potential increase in easement costs. It may be more cost-effective to pay a premium for voluntary easements than to fund a full CCN proceeding.

Strategic Ambiguities & Considerations

Battery Storage/DERs: The statute explicitly retains the two-mile limit for lines connecting to generation sources. It is unclear how the PUCT will treat lines connecting to battery energy storage systems (BESS) that both draw load and inject power.
*Guidance:* Until the PUCT clarifies via rulemaking, treat any line connecting a facility capable of injecting power to the grid as a "generation" tie, subject to the stricter 2-mile limit, to avoid enforcement actions.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsUtilities Utilities--electric

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 3092

By: Gerdes

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Texas is experiencing economic and population growth, increasing the demand for reliable electricity infrastructure. However, the bill author has informed the committee that the process of building new transmission lines is often lengthy and cumbersome, delaying critical energy projects. Under current law, a utility is required to amend its certificate of public convenience and necessity (CCN) for any transmission line project that exceeds three miles in length, adding regulatory hurdles that may slow the expansion of the state's power grid. The bill author has further informed the committee that with Texas facing increasing energy demands and the need for enhanced grid security, there is a growing need to streamline the approval process for smaller transmission projects, as the existing requirement to amend a CCN for short-distance transmission lines places an unnecessary administrative burden on both utilities and the Public Utility Commission of Texas. H.B. 3092 seeks to resolve this issue by increasing the threshold for requiring a CCN amendment from three miles to five miles for new transmission line projects.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3092 amends the Utilities Code to increase from three to five the maximum number of miles in length of a transmission line that connects an electric utility's existing transmission facilities to a load-serving substation or metering point for which the utility is not required to amend its certificate of public convenience and necessity to construct.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. Stan GerdesRepublican · Primary Author

Joint Authors

Coauthors (3)

Senate Sponsor

Sen. Charles SchwertnerRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 3092

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to a certificate of public convenience and necessity to
	construct an electric transmission line.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 37.052(c), Utilities Code, is amended to
	read as follows:
	(c) An electric utility is not required to amend the
	utility's certificate of public convenience and necessity to
	construct a transmission line that connects the utility's existing
	transmission facilities to a substation or metering point if:
	(1) the transmission line does not exceed:
	(A) five [~~three~~] miles in length, if the line
	connects to a load-serving substation or metering point; or
	(B) two miles in length, if the line connects to a
	generation substation or metering point;
	(2) each landowner whose property would be directly
	affected by the transmission line, as provided by commission rules,
	provides written consent for the transmission line; and
	(3) all rights-of-way necessary for construction of
	the transmission line have been purchased.
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 7, 2025

TO:	Honorable Ken King, Chair, House Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3092 by Gerdes (Relating to a certificate of public convenience and necessity to construct an electric transmission line.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas

LBB Staff:

JMc, WP, JBel

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Frequently Asked Questions

Common questions about HB3092

What does Texas HB3092 do?

HB3092 immediately amends the Texas Utilities Code to expand the Certificate of Convenience and Necessity (CCN) exemption for load-serving transmission lines from three miles to five miles. This allows electric utilities to bypass lengthy Public Utility Commission of Texas (PUCT) proceedings for mid-length projects, provided they secure 100% voluntary landowner consent. Implementation Timeline Effective Date: June 20, 2025 (Effective immediately upon Governor's signature due to supermajority passage).

Who authored HB3092?

HB3092 was authored by Texas Representative Stan Gerdes during the Regular Session.

When was HB3092 signed into law?

HB3092 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB3092?

HB3092 is enforced by Public Utility Commission of Texas.

How urgent is compliance with HB3092?

The compliance urgency for HB3092 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB3092?

The cost impact of HB3092 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB3092 address?

HB3092 addresses topics including utilities and utilities--electric.

Legislative data provided by LegiScanLast updated: November 25, 2025

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