HB-5808, As Passed House, May 19, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5808

                                                                             A bill to amend 1995 PA 30, entitled                                              

"Electric transmission line certification act,"                             

by amending sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, and 15             

(MCL 460.562, 460.563, 460.564, 460.565, 460.566, 460.567,                  

460.568, 460.569, 460.570, 460.571, 460.573, and 460.575).                  

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 2.  As used in this act:                                               

2   (a) "Affiliated transmission company" means a person,                       

3   partnership, corporation, association, or other legal entity, or            

4   its successors or assigns, which has fully satisfied the                    

5   requirements to join a regional transmission organization as                

6   determined by the federal energy regulatory commission, is                  

7   engaged in this state in the transmission of electricity using              

8   facilities it owns that were transferred to the entity by an                

9   electric utility that was engaged in the generation,                        

1   transmission, and distribution of electricity in this state on              

2   December 31, 2000, and is not independent of an electric utility            

3   or an affiliate of the utility, generating or distributing                  

4   electricity to retail customers in this state.

5   (b)  (a)  "Certificate" means a certificate of public                       

6   convenience and necessity issued for a major transmission line              

7   pursuant to under this act or issued for a transmission line              

8   pursuant to under section 9.                                              

9   (c)  (b)  "Commission" means the Michigan public service                    

10  commission.                                                                 

11  (d)  (c)  "Construction" means any substantial action taken                 

12  on a route constituting placement or erection of the foundations            

13  or structures supporting a transmission line.  Construction does            

14  not include preconstruction activity or the addition of circuits            

15  to an existing transmission line.                                           

16  (e)  (d)  "Electric utility" means a person, partnership,                   

17  corporation, association, or other legal entity whose                       

18  transmission or distribution of electricity the commission                  

19  regulates  pursuant to Act No. 106 of the Public Acts of 1909,              

20  being sections 460.551 to 460.559 of the Michigan Compiled Laws,            

21  or Act No. 3 of the Public Acts of 1939, being sections 460.1 to            

22  460.8 of the Michigan Compiled Laws under 1909 PA 106, MCL                 

23  460.551 to 460.559, or 1939 PA 3, MCL 460.1 to 460.10cc.                    

24  Electric utility does not include a municipal utility, affiliated           

25  transmission company, or independent transmission company.                  

26  (f) "Independent transmission company" means a person,                      

27  partnership, corporation, association, or other legal entity, or            

1   its successors or assigns, engaged in this state in the                     

2   transmission of electricity using facilities it owns that have              

3   been divested to the entity by an electric utility that was                 

4   engaged in the generation, transmission, and distribution of                

5   electricity in this state on December 31, 2000, and is                      

6   independent of an electric utility or an affiliate of the                   

7   utility, generating or distributing electricity to retail                   

8   customers in this state.

9   (g)  (e)  "Major transmission line" means a transmission line               

10  of 5 miles or more in length wholly or partially owned by an                

11  electric utility, affiliated transmission company, or independent           

12  transmission company through which electricity is transferred at            

13  system bulk supply voltage of 345 kilovolts or more.                        

14  (h)  (f)  "Municipality" means a city, township, or village.                

15  (i)  (g)  "Preconstruction activity" means any activity on a                

16  proposed route conducted before construction of a transmission              

17  line begins.  Preconstruction activity includes surveys,                    

18  measurements, examinations, soundings, borings, sample-taking, or           

19  other testing procedures, photography, appraisal, or tests of               

20  soil, groundwater, structures, or other materials in or on the              

21  real property for contamination.  Preconstruction activity does             

22  not include an action that permanently or irreparably alters the            

23  real property on or across the proposed route.                              

24  (j)  (h)  "Route" means real property on or across which a                  

25  transmission line is constructed or proposed to be constructed.             

26  (k)  (i)  "Transmission line" means all structures,                         

27  equipment, and real property necessary to transfer electricity at           

1   system bulk supply voltage of 100 kilovolts or more.                        

2       Sec. 3.  (1) Transmission of electricity is an essential                    

3   service.                                                                    

4   (2) This act shall control in any conflict between this act                 

5   and any other law of this state.

6       Sec. 4.  (1) If an electric utility  ,  that has 50,000 or                  

7   more residential customers in this state, affiliated transmission           

8   company, or an independent transmission company plans to                    

9   construct a major transmission line in this state in the 5 years            

10  after planning commences, the electric utility, affiliated                  

11  transmission company, or independent transmission company shall             

12  submit a construction plan to the commission.  An electric                  

13  utility with  less fewer than 50,000 residential customers in              

14  this state may submit a plan under this section.  A plan shall              

15  include all of the following:                                               

16      (a) The general location and size of all major transmission                 

17  lines to be constructed in the 5 years after planning commences.            

18      (b) Copies of relevant bulk power transmission information                  

19  filed by the electric utility, affiliated transmission company,             

20  or independent transmission company with any state or federal               

21  agency, national electric reliability coalition, or regional                

22  electric reliability coalition.                                             

23      (c) Additional information required by commission rule or                   

24  order that directly relates to the construction plan.                       

25      (2) At the same time the electric utility, affiliated                       

26  transmission company, or independent transmission company submits           

27  a construction plan to the commission under subsection (1), the             

1   electric utility, affiliated transmission company, or independent           

2   transmission company shall provide a copy of the construction               

3   plan to each municipality in which construction of the planned              

4   major transmission line is intended.                                        

5       Sec. 5.  An electric utility, affiliated transmission                       

6   company, or independent transmission company shall not begin                

7   construction of a major transmission line for which a plan has              

8   been submitted under section 4 until the commission issues a                

9   certificate for that transmission line.  Except as otherwise                

10  provided in section 9, a certificate of public convenience and              

11  necessity under this act is not required for constructing a new             

12  transmission line other than a major transmission line or for               

13  reconstructing, repairing, replacing, or improving an existing              

14  transmission line, including the addition of circuits to an                 

15  existing transmission line.                                                 

16      Sec. 6.  (1) Before applying for a certificate under section                

17  5, an electric utility, affiliated transmission company, or                 

18  independent transmission company shall schedule and hold a public           

19  meeting in each municipality through which a proposed major                 

20  transmission line for which a plan has been submitted under                 

21  section 4 would pass.  A public meeting held in a township                  

22  satisfies the requirement that a public meeting be held in each             

23  affected village located within the township.                               

24      (2) In the 60 days before a public meeting held  pursuant to

25  under subsection (1), the electric utility, affiliated                      

26  transmission company, or independent transmission company shall             

27  offer in writing to meet with the chief elected official of each            

1   affected municipality or his or her designee to discuss the                 

2   utility's, affiliated transmission company's, or independent                

3   transmission company's desire to build the major transmission               

4   line and to explore the routes to be considered.                            

5       Sec. 7.  (1) An electric utility that has 50,000 or more                    

6   residential customers in this state, an affiliated transmission             

7   company, or an independent transmission company shall apply to              

8   the commission for a certificate for a proposed major                       

9   transmission line.  An applicant may withdraw an application at             

10  any time.                                                                   

11      (2) An application for a certificate shall contain all of the               

12  following:                                                                  

13      (a) The planned date for beginning construction.                            

14      (b) A detailed description of the proposed major transmission               

15  line, its route, and its expected configuration and use.                    

16      (c) A description and evaluation of 1 or more alternate major               

17  transmission line routes and a statement of why the proposed                

18  route was selected.                                                         

19      (d) If a zoning ordinance prohibits or regulates the location               

20  or development of any portion of a proposed route, a description            

21  of the location and manner in which that zoning ordinance                   

22  prohibits or regulates the location or construction of the                  

23  proposed route.                                                             

24      (e) The estimated overall cost of the proposed major                        

25  transmission line.                                                          

26      (f) Information supporting the need for the proposed major                  

27  transmission line, including identification of known future                 

1   wholesale users of the proposed major transmission line.                    

2       (g) Estimated quantifiable and nonquantifiable public                       

3   benefits of the proposed major transmission line.                           

4       (h) Estimated private benefits of the proposed major                        

5   transmission line to the applicant or any legal entity that is              

6   affiliated with the applicant.                                              

7       (i) Information addressing potential effects of the proposed                

8   major transmission line on public health and safety.                        

9       (j) A summary of all comments received at each public meeting               

10  and the applicant's response to those comments.                             

11      (k) Information indicating that the proposed major                          

12  transmission line will comply with all applicable state and                 

13  federal environmental standards, laws, and rules.                           

14                                                                               (l) Other information reasonably required by the commission                         

15  pursuant to rule.                                                           

16      Sec. 8.  (1) Upon applying for a certificate, the electric                  

17  utility, affiliated transmission company, or independent                    

18  transmission company shall give public notice in the manner and             

19  form the commission prescribes of an opportunity to comment on              

20  the application.  Notice shall be published in a newspaper of               

21  general circulation in the area to be affected within a                     

22  reasonable time period after an application is provided to the              

23  commission  ,  and shall be sent to each affected municipality              

24  and each affected landowner on whose property a portion of the              

25  proposed major transmission line will be constructed.  The notice           

26  shall be written in plain, nontechnical, and easily understood              

27  terms and shall contain a title that includes the name of the               

1   electric utility, affiliated transmission company, or independent           

2   transmission company and the words "NOTICE OF INTENT TO CONSTRUCT           

3   A MAJOR TRANSMISSION LINE".                                                 

4       (2) The commission shall conduct a proceeding on the                        

5   application as a contested case  pursuant to chapter 4 of under

6   the administrative procedures act of 1969,  Act No. 306 of the              

7   Public Acts of 1969, being sections 24.271 to 24.287 of the                 

8   Michigan Compiled Laws 1969 PA 306, MCL 24.201 to 24.328.  Upon            

9   receiving an application for a certificate, each affected                   

10  municipality and each affected landowner shall be granted full              

11  intervenor status as of right in commission proceedings                     

12  concerning the proposed major transmission lines.                           

13      (3) The commission may assess certificate application fees                  

14  from the electric utility, affiliated transmission company, or              

15  independent transmission company to cover the commission's                  

16  administrative costs in processing the application and may                  

17  require the electric utility, affiliated transmission company, or           

18  independent transmission company to hire consultants chosen by              

19  the commission to assist the commission in evaluating those                 

20  issues the application raises.                                              

21      (4) The commission shall grant or deny the application for a                

22  certificate not later than 1 year after the application's filing            

23  date.  If a party submits an alternative route for the proposed             

24  major transmission line, the commission shall grant the                     

25  application for either the electric utility's, affiliated                   

26  transmission company's, or independent transmission company's

27  proposed route or 1 alternative route or shall deny the                     

1   application.  The commission may condition its approval upon the            

2   applicant taking additional action to assure the public                     

3   convenience, health, and safety and reliability of the proposed             

4   major transmission line.                                                    

5       (5) The commission shall grant the application and issue a                  

6   certificate if it determines all of the following:                          

7       (a) The quantifiable and nonquantifiable public benefits of                 

8   the proposed major transmission line justify its construction.              

9       (b) The proposed or alternative route is feasible and                       

10  reasonable.                                                                 

11      (c) The proposed major transmission line does not present an                

12  unreasonable threat to public health or safety.                             

13      (d) The applicant has accepted the conditions contained in a                

14  conditional grant.                                                          

15      (6) A certificate issued under this section shall identify                  

16  the major transmission line's route and shall contain an                    

17  estimated cost for the transmission line.                                   

18      (7) If construction of a proposed major transmission line is                

19  not begun within 5 years of the date that a certificate is                  

20  granted, the certificate is invalid and a new certificate shall             

21  be required for the proposed major transmission line.                       

22      Sec. 9.  (1) An electric utility, affiliated transmission                   

23  company, or independent transmission company may file an                    

24  application with the commission for a certificate for a proposed            

25  transmission line other than a major transmission line.  If an              

26  electric utility, affiliated transmission company, or independent           

27  transmission company applies for a certificate under this                   

1   section, the electric utility, affiliated transmission company,             

2   or independent transmission company shall not begin construction            

3   of the proposed transmission line until the commission issues a             

4   certificate for that transmission line.                                     

5       (2) The commission shall proceed on an application in the                   

6   same manner as provided in section 8.  Except as otherwise                  

7   provided in subsection (3), the provisions of this act that apply           

8   to applications and certificates for major transmission lines               

9   apply in the same manner to applications and certificates issued            

10  under this section.                                                         

11      (3) Section 4 does not apply to a transmission line for which               

12  a certificate is sought under this section.                                 

13      Sec. 10.  (1) If the commission grants a certificate under                  

14  this act, that certificate shall take precedence over a                     

15  conflicting local ordinance, law, rule, regulation, policy, or              

16  practice that prohibits or regulates the location or construction           

17  of a transmission line for which the commission has issued a                

18  certificate.                                                                

19      (2) A zoning ordinance or limitation imposed after an                       

20  electric utility, affiliated transmission company, or independent           

21  transmission company files for a certificate shall not limit or             

22  impair the transmission line's construction, operation, or                  

23  maintenance.                                                                

24      (3) In an eminent domain or other related proceeding arising                

25  out of or related to a transmission line for which a certificate            

26  is issued, a certificate issued under this act is conclusive and            

27  binding as to the public convenience and necessity for that                 

1   transmission line and its compatibility with the public health              

2   and safety  ,  or any zoning or land use requirements in effect             

3   when the application was filed.                                             

4       Sec. 11.  In a civil action in the circuit court  pursuant                  

5   to under section 4 of the uniform condemnation procedures act,             

6   Act No. 87 of the Public Acts of 1980, being section 213.54 of             

7   the Michigan Compiled Laws 1980 PA 87, MCL 213.54, the court may           

8   grant a limited license to an electric utility, affiliated                  

9   transmission company, or independent transmission company for               

10  entry on land to conduct preconstruction activity related to a              

11  proposed major transmission line or a transmission line if the              

12  electric utility, affiliated transmission company, or independent           

13  transmission company has scheduled or held a public meeting in              

14  connection with a certificate sought  pursuant to section 9

15  under section 7 or 9 and if written notice of the intent to enter           

16  the land has been given to each affected landowner on whose                 

17  property the electric utility, affiliated transmission company,             

18  or independent transmission company wishes to enter.  The limited           

19  license may be granted upon such terms as justice and equity                

20  require.  An electric utility, affiliated transmission company,             

21  or independent transmission company that obtains a limited                  

22  license shall provide each affected land owner with a copy of the           

23  limited license.  A limited license shall include a description             

24  of the purpose of entry, the scope of activities permitted, and             

25  the terms and conditions of entry with respect to the time,                 

26  place, and manner of entry.  The court shall not deny a limited             

27  license for entry to conduct preconstruction activity for any of            

1   the following reasons:                                                      

2       (a) A disagreement exists over the proposed route.                          

3       (b) The electric utility, affiliated transmission company, or               

4   independent transmission company has not yet applied for a                  

5   certificate.                                                                

6       (c) The commission has not yet granted or denied the                        

7   application.                                                                

8       (d) An alleged lack of public convenience or necessity.                     

9       Sec. 13.  (1) Except as otherwise provided in this section,                 

10  information obtained by the commission under this act is a public           

11  record as provided in the freedom of information act,  Act                  

12  No. 442 of the Public Acts of 1976, being sections 15.231 to                

13  15.246 of the Michigan Compiled Laws 1976 PA 442, MCL 15.231 to            

14  15.246.                                                                     

15      (2) An electric utility, affiliated transmission company, or                

16  independent transmission company may designate information                  

17  received from a third party that the electric utility, affiliated           

18  transmission company, or independent transmission company submits           

19  to the commission in an application for a certificate or in other           

20  documents required by the commission for purposes of                        

21  certification submitted to the commission as being only for the             

22  confidential use of the commission.  The commission shall notify            

23  the electric utility, affiliated transmission company, or                   

24  independent transmission company of a request for public records            

25  under section 5 of  Act No. 442 of the Public Acts of 1976, being           

26  section 15.235 of the Michigan Compiled Laws the freedom of                

27  information act, 1976 PA 442, MCL 15.235, if the scope of the               

1   request includes information designated as confidential.  The               

2   electric utility, affiliated transmission company, or independent           

3   transmission company has 10 days after the receipt of the notice            

4   to demonstrate to the commission that the information designated            

5   as confidential should not be disclosed because the information             

6   is a trade secret or secret process  ,  or is production,                   

7   commercial, or financial information the disclosure of which                

8   would jeopardize the competitive position of the electric                   

9   utility, affiliated transmission company, or independent                    

10  transmission company or the person from whom the information was            

11  obtained.  The commission shall not grant the request for the               

12  information if the electric utility, affiliated transmission                

13  company, or independent transmission company demonstrates to the            

14  satisfaction of the commission that the information should not be           

15  disclosed for a reason authorized in this section.  If the                  

16  commission makes a decision to grant a request, the information             

17  requested shall not be released until 3 days have elapsed after             

18  notice of the decision is provided to the electric utility,                 

19  affiliated transmission company, or independent transmission                

20  company.                                                                    

21      (3) If any person uses information described in                             

22  subsection (1) to forecast electrical demand, the person shall              

23  structure the forecast so the third party is not identified                 

24  unless the third party waives confidentiality.                              

25      Sec. 15.  (1) A commission order relating to a certificate                  

26  or other matter provided for under this act is subject to review            

27  as provided in section 26 of  Act No. 300 of the Public Acts of             

1   1909, being section 462.26 of the Michigan Compiled Laws 1909 PA           

2   300, MCL 462.26.                                                            

3   (2) In administering this act, the commission shall have only               

4   those powers and duties granted to the commission under this act.

5       Enacting section 1.  This amendatory act does not take                      

6   effect unless House Bill No. 5807 of the 92nd Legislature is                

7   enacted into law.