By: Johnson, Blanco, Zaffirini S.B. No. 2112
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to resources used to ensure the continuous provision of
  power.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.069 to read as follows:
         Sec. 382.069.  TEXAS BACKUP POWER PACKAGE. (a) In this
  section, "Texas backup power package" has the meaning assigned by
  Section 418.401, Government Code.
         (b)  The commission by rule shall adopt a process to expedite
  the permitting of a Texas backup power package for which a permit is
  required under this chapter.
         SECTION 2.  Chapter 418, Government Code, is amended by
  adding Subchapter K to read as follows:
  SUBCHAPTER K. TEXAS POWER PROMISE
         Sec. 418.401.  DEFINITION. In this subchapter, "Texas
  backup power package" means a stand-alone, behind-the-meter,
  multiday backup power source that can be used for islanding.
         Sec. 418.402.  PURPOSE. The purpose of this subchapter is to
  facilitate and provide funding for: 
               (1)  the design, procurement, installation, and use of
  Texas backup power packages for facilities on which communities
  rely for health, safety, and well-being; and
               (2)  the procurement and use of mobile sources of
  backup power to ensure the health, safety, and well-being of
  communities.
         Sec. 418.403.  DIVISION DUTIES. (a) The division shall
  convene an advisory committee in the manner provided by Chapter
  2110, Government Code.
         (b)  The advisory committee shall recommend criteria for the
  division to employ in making a grant or loan under this subchapter.
         (c)  The division shall contract with a research entity that
  has experience in microgrid design to analyze critical facility
  characteristics and requirements in this state and develop for
  Texas backup power packages:
               (1)  sets of specifications for standard backup power
  packages of various sizes that can serve most critical facilities
  in this state; and
               (2)  specifications for standard interconnection,
  communications, and controls for Texas backup power packages.
         Sec. 418.404.  TEXAS BACKUP POWER PACKAGES. (a)  A grant or
  loan made under this subchapter may be provided only for the
  operation of a Texas backup power package that:
               (1)  is engineered to minimize operation costs;
               (2)  uses interconnection technology and controls that
  enable immediate islanding from the power grid and stand-alone
  operation for the host facility;
               (3)  is capable of operating for at least 48 continuous
  hours without refueling or connecting to a separate power source;
               (4)  is designed so that one or more Texas backup power
  packages can be aggregated on-site to serve not more than 2.5
  megawatts of load at the host facility;
               (5)  provides power sourced from:
                     (A)  a combination of natural gas or propane with
  photovoltaic panels and battery storage; or
                     (B)  battery storage on an electric school bus;
  and
               (6)  is not used by the owner or host facility for the
  sale of energy or ancillary services.
         (b)  Texas backup power packages may be aggregated and
  operated to support the power grid under emergency conditions if
  the operation does not compromise a Texas backup power package's
  capability to provide power to its host facility for at least 24
  hours of operation without refueling or connecting to a separate
  power source.
         Sec. 418.405.  GRANTS AND LOANS. (a) The division may
  provide grants and loans under this subchapter.
         (b)  The division by rule may establish procedures for the
  application for and award of a grant or loan under this subchapter.
         (c)  The amount of a grant provided under this subchapter may
  not exceed $500 per kilowatt of capacity.
         (d)  The division may provide a loan under this subchapter
  for procurement and operating costs.
         (e)  The division shall maintain and publish a list of
  approved vendors eligible to assist with the sale, installation,
  operation, and ongoing maintenance of Texas backup power packages.
         (f)  The division may not provide a grant or loan under this
  subchapter for:
               (1)  a commercial energy system, a private school, or a
  for-profit entity that does not directly serve public safety and
  human health; or
               (2)  a source of backup power that does not follow the
  design and use standards of a Texas backup power package.
         Sec. 418.406.  MOBILE BACKUP POWER FLEET. The division may
  procure and deploy mobile sources of backup power to ensure the
  health, safety, and well-being of communities.
         SECTION 3.  Section 38.076, Utilities Code, is amended by
  adding Subsection (c-1) to read as follows:
         (c-1)  The commission shall require transmission and
  distribution utilities to use good faith efforts to ensure that no
  distribution feeder is subject to load shedding for more than four
  consecutive hours in a six-hour period.
         SECTION 4.  Subchapter D, Chapter 38, Utilities Code, is
  amended by adding Section 38.078 to read as follows:
         Sec. 38.078.  CIRCUIT SEGMENTATION STUDY AND COST RECOVERY.
  (a) Not later than September 15, 2023, the commission shall direct
  each transmission and distribution utility to perform a circuit
  segmentation study.
         (b)  A circuit segmentation study must:
               (1)  use an engineering analysis to examine whether and
  how the transmission and distribution utility's transmission and
  distribution systems can be segmented and sectionalized to manage
  and rotate outages more evenly across all customers and circuits,
  while maintaining the protections offered to critical facilities;
               (2)  include an engineering analysis of the feasibility
  of using sectionalization, automated reclosers, and other
  technology to break up the circuits that host significant numbers
  of critical facilities into smaller segments for outage management
  purposes to enable more granular and flexible outage management;
               (3)  identify feeders with critical facilities that, if
  equipped with facility-specific backup power systems and
  segmentation, can enhance the utility's outage management
  flexibility; and
               (4)  include an estimate of the time, capital cost, and
  expected improvements to load-shed management associated with the
  circuit segmentation study.
         (c)  Each transmission and distribution utility shall submit
  a report of the conclusions of the utility's study to the commission
  not later than September 1, 2024.
         (d)  The commission shall review each circuit segmentation
  study not later than March 15, 2025.
         (e)  If the commission determines that the implementation of
  circuit segmentation engineering and investments as provided by a
  transmission and distribution utility's circuit segmentation study
  report would facilitate better outage management in the ERCOT power
  region, investments made by the utility for such purposes shall be
  presumed just, reasonable, and appropriate for rate-based cost
  recovery.
         SECTION 5.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.919 to read as follows:
         Sec. 39.919.  TEXAS BACKUP POWER PACKAGES. (a) In this
  section, "Texas backup power package" has the meaning assigned by
  Section 418.401, Government Code.
         (b)  The commission by rule shall adopt procedures to
  expedite electric cooperative, municipally owned utility, and
  electric utility interconnection requests for Texas backup power
  packages.
         SECTION 6.  This Act takes effect September 1, 2023.