TMEPA Legislative Update - That Busy Time of Year

 

Legislative committees are having the longest calendars of the year now, with deadlines to shut down looming in the coming weeks. Next week sees the most activity of the year on bills of interest to TMEPA, as legislators attempt to move their bills if they are going to be moved at all. To add to usual organized chaos, a visit from the president on Wednesday threw a monkey wrench into last week’s schedule as committees were canceled so legislators could attend President’s Trump visit to Andrew Jackson’s home The Hermitage and for employees to get home before downtown Nashville was gridlocked by a presidential rally just blocks from Legislative Plaza. Legislative adjournment is never a set date, but this time next month is as good a time as any to bet on when the General Assembly for the year. Until then, long committee meetings are ahead.

The Governor’s broadband bill (SB1215) has won unanimous approval in the House Business and Utilities Subcommittee two weeks ago and in the Senate Commerce Committee last week. The principle part of the bill gives electric cooperative the authority to offer broadband services in its electric service area, and both committees amended the bill allow cooperatives to also offer video service, along with several other smaller changes in the bill. Still in the legislation are grants and tax breaks to expand broadband service. Both the House and Senate version don’t allow electric cooperatives to work with neighboring municipal broadband providers except to purchase broadband wholesale. Governor Haslam is heavily pushing the bill as a signature piece of legislation but is hesitant to include anything that looks like municipal broadband expansion. Now with the amended bill, electric cooperatives have similar authority that municipal providers have had for several years. Even AT&T now publicly supports the bill. Breaking through the unfair negative impression some around the State Capitol have of municipal broadband expansion can be tough in and of itself. There is growing momentum behind the governor’s bill, with a steep uphill climb to add more ability for municipal broadband providers to partner with their cooperative neighbors. The bill moves on to the full House Business and Utilities Committee and the Senate Finance Committee. Other broadband bills (listed here) have been set aside in favor of the governor’s bill. 

 

Two bills this year would require municipal utilities to add board members. One (HB269) has already been deferred until next year, with the sponsor requesting the comptroller and utility groups to look at the makeup of municipal utility boards. A second (SB1247) would require a municipal utility to add a board member for 1) customers outside of the municipality's boundaries but in the county in which the municipality is located and 2) every county with customers in any county adjoining the county in which the municipality is located. The bill would result in utility boards having disproportionate representation as a county with customers in the single digits getting a seat on a board that currently has only five board members. TMEPA is strongly opposed to both bills due to the enormous impact they would have on our members’ utility boards.

TMEPA’s municipal energy authority legislation (HB1290) is scheduled for House and Senate committees this week. The bill expands legislation passed last year that allows a local process to restructure a municipal electric system as a municipal energy authority. This year’s bill would expand current law so that every municipal electric system (except the big four systems) would only have to have their city council approve it by a two-thirds majority without having to then also get state legislative approval. The bill would also allow electric systems that offer multiple utilities to become municipal energy authorities, which is not currently permitted. The legislation will be in the House Business and Utilities Subcommittee and the Senate State and Local Government Subcommittee, where an amendment will likely be added to clarify sections on regarding telecommunications and natural gas service.

The full Senate approved legislation last week to require water and wastewater boards to undergo training and continuing education is headed to the Senate floor. SB138 requires board members of any utility that offers water or wastewater service to undergo 12 hours of training on subjects like board governance, financial oversight, policy-making responsibilities, and other topics related to duties of the board. An amendment is on the bill that clarifies the training requirements also apply to city councils that serve as a utility’s board. This legislation does not apply to boards that oversee only an electric utility. The bill is scheduled to be heard in to the House Finance Committee on this week, with full House approval expected a week or two thereafter.

The proposed wind farm project in Cumberland County has spawned legislation to severely restrict them in Tennessee. An amendment to SB1336, currently a caption bill, would put in place an extremely rigorous state permitting process through the Tennessee Department of Environment and Conservation. The amendment would also require a referendum to approve a wind farm being built, which could set a precedent for future electric generations projects. The bill is scheduled this week for the Senate Energy Committee and the House Agriculture Subcommittee.

Legislators often file bills in consecutive years if they don’t pass them on the first try. HB438 would create an energy policy council within state government that would make recommendations on the state’s energy policy. SB794 would allow communities in start a Property Assessed Clean Energy (PACE) program. Under the program, cities would allow property owners to borrow money from the city to install solar or other "clean energy" devices on their homes, and the property owners would pay back the costs of the devices through a special assessment on their property taxes. TMEPA is watching both bills.

Obtaining property through eminent domain would get more expensive under legislation set to be heard in House Civil Justice. Currently, the price property acquired through the eminent domain process uses "fair market value." Under HB1167, property taken under eminent domain would have to be valued at "highest and best use." The bill also would prevent local governments from using eminent domain to acquire property for an industrial park, and it would increase other costs under certain eminent domain proceedings. TMEPA is opposed to the legislation. 

The full House and Senate have approved SB128, which updates state law so that the electrical safety code adheres to the August 2016 edition of the American National Standard Electrical Safety Code, which is the most recent version. Currently the August 2011 edition serves as the state’s electrical safety code.