89th Legislature

HB 3092

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest

HB 3092 seeks to amend Section 37.052(c) of the Texas Utilities Code, specifically regarding the construction of certain electric transmission lines by utilities. Under current law, an electric utility is exempt from amending its Certificate of Public Convenience and Necessity (CCN) for transmission lines connecting to a substation or metering point if the line is no more than three miles long and certain landowner and right-of-way conditions are met. HB 3092 increases this threshold to five miles for lines connecting to load-serving substations and to two miles for lines connecting to generation substations.

The bill maintains important safeguards to protect landowner rights. It retains the requirement that all landowners whose property is directly affected must provide written consent, as outlined by Public Utility Commission rules. Additionally, it requires that all necessary rights-of-way for construction be obtained prior to the exemption taking effect. These provisions ensure that utilities cannot bypass landowner input or engage in eminent domain under the relaxed permitting criteria.

The bill aims to streamline the process for expanding transmission infrastructure, particularly in fast-growing or rural areas where short extensions are frequently needed to connect new generation or load centers to the grid. By removing the need for CCN amendments in narrowly defined cases, HB 3092 promotes more efficient infrastructure development while preserving core property rights protections. The act is set to take effect on September 1, 2025.

Author
Stan Gerdes
Pat Curry
Drew Darby
Co-Author
Stan Lambert
Penny Morales Shaw
Carl Tepper
Sponsor
Charles Schwertner
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 3092 is not expected to have a significant fiscal impact on the State of Texas. The analysis indicates that any costs incurred as a result of implementing the bill’s provisions could be absorbed within existing resources, particularly those of the Public Utility Commission of Texas, which is responsible for overseeing electric utility infrastructure and regulatory compliance​.

Furthermore, the bill is not anticipated to have a significant fiscal implication for units of local government. Since HB 3092 merely adjusts the conditions under which electric utilities may extend transmission lines without amending their certificate of public convenience and necessity, it does not impose new regulatory burdens or require funding allocations at the local level. Instead, it simplifies certain procedural requirements, potentially reducing administrative costs for utilities and associated regulatory oversight.

In summary, HB 3092 maintains fiscal neutrality for both state and local governments, while potentially streamlining utility project development without adding cost pressures to public agencies.

Vote Recommendation Notes

HB 3092 represents a responsible and focused regulatory reform aimed at improving the efficiency of electric transmission line development in Texas. The bill amends the Utilities Code to increase the allowable length of transmission lines exempt from requiring an amendment to a Certificate of Public Convenience and Necessity (CCN), raising the threshold from three to five miles for lines connecting to load-serving substations, and from one to two miles for lines connecting to generation substations. This change is designed to reduce unnecessary regulatory delays for short-distance infrastructure projects that are critical to meeting the state’s growing energy needs​.

Importantly, HB 3092 does not expand the size or scope of government. It does not create any new agencies, programs, or enforcement mechanisms. Instead, it simplifies an existing regulatory process, reducing administrative burdens on both utilities and the Public Utility Commission. There is no fiscal impact to the state or local governments, and the Legislative Budget Board determined that any minimal costs associated with implementation could be absorbed using existing resources​. Thus, the bill does not increase the burden on taxpayers.

Further, the bill maintains key safeguards for landowners by requiring written consent from all directly affected property owners and acquisition of all necessary rights-of-way before any transmission line construction can proceed under this exemption. These provisions ensure that private property rights are preserved and that the reduction in regulatory oversight does not come at the expense of individual liberty.

In summary, HB 3092 promotes limited government, encourages private-sector efficiency, and respects private property rights—all while helping to ensure that Texas’s power grid can expand in a timely manner to meet growing demand. The bill is a clear example of how regulatory reform can support infrastructure development without growing government or burdening taxpayers. Texas Policy Research recommends that lawmakers vote YES on HB 3092.

  • The bill protects individual liberty by ensuring that landowners retain the right to control what happens on their property. Utilities may only bypass the standard regulatory process if they obtain written consent from all directly affected landowners, which ensures that individuals are not subjected to unwanted infrastructure projects without their express approval. This provision reinforces the principle that individuals, not the government or private utilities, should control decisions that affect their own land.
  • HB 3092 encourages utilities to act responsibly. By requiring them to secure all necessary rights-of-way and written permissions without relying on the Public Utility Commission to mediate or impose conditions, the bill places the burden of due diligence on the private actors seeking to construct infrastructure. This approach avoids paternalistic oversight and aligns with a framework that encourages self-regulation and accountability in the private sector.
  • The bill is strongly supportive of free enterprise. It removes an unnecessary bureaucratic barrier—the requirement to amend a CCN for relatively short transmission lines—that can delay critical infrastructure projects. By streamlining this process, the bill allows energy providers to respond more nimbly to market demands, reduce project timelines and costs, and deliver services more efficiently. This fosters a competitive, market-driven environment for utility services and infrastructure development.
  • One of the strongest features of HB 3092 is its protection of private property rights. The requirement for written landowner consent ensures that no property is used for public infrastructure without voluntary agreement. This avoids coercive mechanisms such as eminent domain and respects the principle that property owners should not be forced to surrender their land for economic development projects without their approval.
  • The bill exemplifies limited government by scaling back regulatory involvement where it is no longer necessary. It limits the reach of the Public Utility Commission to only those projects that exceed the new, more practical mileage thresholds. This reduction in red tape reflects a trust in market participants and private agreements, rather than top-down oversight, to facilitate infrastructure development that benefits both providers and communities.
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