By: Geren, Guillen	H.B. No. 3648

	A BILL TO BE ENTITLED
	AN ACT
	relating to the eligibility and designation of certain gas entities
	and gas facilities as critical during an energy emergency.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter D, Chapter 38, Utilities Code, is
	amended by adding Section 38.074 to read as follows:
	Sec. 38.074.  CRITICAL GAS ENTITIES AND FACILITIES DURING AN
	ENERGY EMERGENCY. (a) The commission shall work with the Railroad
	Commission of Texas and adopt rules to establish a process to
	designate certain natural gas facilities and entities associated
	with providing natural gas in this state as critical during an
	energy emergency.
	(b)  The commission by rule shall require each electric
	utility, municipally owned utility, and electric cooperative to
	exclude any circuits that provide power to an entity or facility
	designated under Section 81.073, Natural Resources Code, from
	participation in the utility's or cooperative's attempt to shed
	load in response to a rolling blackout initiated by an independent
	organization certified under Section 39.151 or another reliability
	council or power pool in which the utility or cooperative operates.
	(c)  At a minimum, the commission's rules must:
	(1)  ensure that transmission and distribution
	utilities, municipally owned utilities, electric cooperatives, and
	the independent organization certified under Section 39.151 for the
	ERCOT power region are provided with the information required by
	Section 81.073, Natural Resources Code;
	(2)  provide for a prioritization for load-shed
	purposes of the entities and facilities designated under Subsection
	(a) during an energy emergency; and
	(3)  provide discretion to transmission and
	distribution utilities, municipally owned utilities, and electric
	cooperatives to prioritize power delivery and power restoration
	among the customers on their respective systems, as circumstances
	require.
	SECTION 2.  Subchapter C, Chapter 81, Natural Resources
	Code, is amended by adding Section 81.073 to read as follows:
	Sec. 81.073.  CRITICAL GAS ENTITIES AND FACILITIES DURING AN
	ENERGY EMERGENCY. (a) The commission shall work with the Public
	Utility Commission of Texas to designate certain natural gas
	facilities and entities associated with providing natural gas in
	this state as critical during an energy emergency.
	(b)  At a minimum, the commission's rules must:
	(1)  establish eligibility and designation
	requirements for persons who own or operate a facility under the
	jurisdiction of the commission under Section 81.051(a) or engage in
	an activity under the jurisdiction of the commission under Section
	81.051(a) who must provide critical customer designation and
	critical gas supply information, as defined by the commission, to
	the entities described by Section 38.074(c)(1), Utilities Code; and
	(2)  consider essential operational elements when
	defining critical customer designations and critical gas supply
	information, including natural gas production, processing, and
	transportation and related produced water handling and disposal
	facilities and the delivery of natural gas to generators.
	SECTION 3.  (a) The Public Utility Commission of Texas and
	Railroad Commission of Texas shall adopt the rules required by this
	Act not later than September 1, 2021.
	(b)  The Public Utility Commission of Texas shall provide a
	report to the legislature regarding its implementation of the
	designation and prioritization requirements, as added by this Act,
	not later than January 1, 2022.
	SECTION 4.  EFFECTIVE DATE. This Act takes effect
	immediately if it receives a vote of two-thirds of all the members
	elected to each house, as provided by Section 39, Article III, Texas
	Constitution. If this Act does not receive the vote necessary for
	immediate effect, this Act takes effect December 1, 2021.