Bill Text: TX SB3 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to preparing for, preventing, and responding to weather emergencies and power outages; increasing the amount of administrative and civil penalties.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2021-06-08 - Effective immediately [SB3 Detail]
Download: Texas-2021-SB3-Introduced.html
Bill Title: Relating to preparing for, preventing, and responding to weather emergencies and power outages; increasing the amount of administrative and civil penalties.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2021-06-08 - Effective immediately [SB3 Detail]
Download: Texas-2021-SB3-Introduced.html
By: Schwertner | S.B. No. 3 | |
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relating to preparing for, preventing, and responding to weather | ||
emergencies, power outages, and other disasters; increasing the | ||
amount of administrative and civil penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 411, Government Code, is amended by | ||
adding Subchapter K-1 to read as follows: | ||
SUBCHAPTER K-1. BLACKOUT ALERT | ||
Sec. 411.301. DEFINITION. In this subchapter, "energy | ||
emergency alert" means an alert issued by an independent | ||
organization certified under Section 39.151, Utilities Code, that | ||
power supply on a regional electric network in this state may be | ||
inadequate to meet demand. | ||
Sec. 411.302. BLACKOUT ALERT. With the cooperation of the | ||
Texas Department of Transportation, the office of the governor, and | ||
the Public Utility Commission of Texas, the department shall | ||
develop and implement a statewide alert to be activated when an | ||
energy emergency alert is issued. | ||
Sec. 411.303. ADMINISTRATION. (a) The director is the | ||
statewide coordinator of the blackout alert. | ||
(b) The director shall adopt rules and issue directives as | ||
necessary to ensure proper implementation of the blackout alert. | ||
The rules and directives must include the procedures to be used by | ||
the Public Utility Commission of Texas and the independent | ||
organization certified under Section 39.151, Utilities Code, to | ||
communicate with the director about the blackout alert. | ||
Sec. 411.304. DEPARTMENT TO RECRUIT PARTICIPANTS. The | ||
department shall recruit public and commercial television and radio | ||
broadcasters, private commercial entities, state or local | ||
governmental entities, the public, and other appropriate persons to | ||
assist in developing and implementing the blackout alert system. | ||
Sec. 411.305. STATE AGENCIES. (a) A state agency | ||
participating in the blackout alert system shall: | ||
(1) cooperate with the department and assist in | ||
developing and implementing the alert system; and | ||
(2) establish a plan for providing relevant | ||
information to its officers, investigators, or employees, as | ||
appropriate, once the blackout alert system has been activated. | ||
(b) In addition to its duties as a state agency under | ||
Subsection (a), the Texas Department of Transportation shall | ||
establish a plan for providing relevant information to the public | ||
through an existing system of dynamic message signs located across | ||
the state. | ||
Sec. 411.306. ACTIVATION OF BLACKOUT ALERT. (a) When the | ||
Public Utility Commission of Texas or an independent organization | ||
certified under Section 39.151, Utilities Code, notifies the | ||
department that an energy emergency alert has been issued or is | ||
about to be issued, the department shall confirm the accuracy of the | ||
information and, if confirmed, immediately issue an alert under | ||
this subchapter in accordance with department rules. | ||
(b) In issuing the blackout alert, the department shall send | ||
the alert to designated media outlets in this state. Following | ||
receipt of the alert, participating radio stations and television | ||
stations and other participating media outlets may issue the alert | ||
at designated intervals. | ||
Sec. 411.307. CONTENT OF BLACKOUT ALERT. The blackout | ||
alert must include a statement that electricity customers may | ||
experience a power outage. | ||
Sec. 411.308. TERMINATION OF BLACKOUT ALERT. The director | ||
shall terminate any activation of the blackout alert with respect | ||
to a particular energy emergency alert not later than the date the | ||
department receives notice that the energy emergency alert has been | ||
canceled. | ||
Sec. 411.309. LIMITATION ON PARTICIPATION BY TEXAS | ||
DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.305(b), | ||
the Texas Department of Transportation is not required to use any | ||
existing system of dynamic message signs in a statewide alert | ||
system created under this subchapter if that department receives | ||
notice from the United States Department of Transportation Federal | ||
Highway Administration that the use of the signs would result in the | ||
loss of federal highway funding or other punitive actions taken | ||
against this state due to noncompliance with federal laws, | ||
regulations, or policies. | ||
SECTION 2. Section 418.043, Government Code, is amended to | ||
read as follows: | ||
Sec. 418.043. OTHER POWERS AND DUTIES. The division shall: | ||
(1) determine requirements of the state and its | ||
political subdivisions for food, clothing, and other necessities in | ||
event of a disaster; | ||
(2) procure and position supplies, medicines, | ||
materials, and equipment; | ||
(3) adopt standards and requirements for local and | ||
interjurisdictional emergency management plans; | ||
(4) periodically review local and interjurisdictional | ||
emergency management plans; | ||
(5) coordinate deployment of mobile support units; | ||
(6) establish and operate training programs and | ||
programs of public information or assist political subdivisions and | ||
emergency management agencies to establish and operate the | ||
programs; | ||
(7) make surveys of public and private industries, | ||
resources, and facilities in the state that are necessary to carry | ||
out the purposes of this chapter; | ||
(8) plan and make arrangements for the availability | ||
and use of any private facilities, services, and property and | ||
provide for payment for use under terms and conditions agreed on if | ||
the facilities are used and payment is necessary; | ||
(9) establish a register of persons with types of | ||
training and skills important in disaster mitigation, | ||
preparedness, response, and recovery; | ||
(10) establish a register of mobile and construction | ||
equipment and temporary housing available for use in a disaster; | ||
(11) assist political subdivisions in developing | ||
plans for the humane evacuation, transport, and temporary | ||
sheltering of service animals and household pets in a disaster; | ||
(12) prepare, for issuance by the governor, executive | ||
orders and regulations necessary or appropriate in coping with | ||
disasters; | ||
(13) cooperate with the federal government and any | ||
public or private agency or entity in achieving any purpose of this | ||
chapter and in implementing programs for disaster mitigation, | ||
preparation, response, and recovery; | ||
(14) develop a plan to raise public awareness and | ||
expand the capability of the information and referral network under | ||
Section 531.0312; | ||
(15) improve the integration of volunteer groups, | ||
including faith-based organizations, into emergency management | ||
plans; | ||
(16) cooperate with the Federal Emergency Management | ||
Agency to create uniform guidelines for acceptable home repairs | ||
following disasters and promote public awareness of the guidelines; | ||
(17) cooperate with state agencies to: | ||
(A) encourage the public to participate in | ||
volunteer emergency response teams and organizations that respond | ||
to disasters; and | ||
(B) provide information on those programs in | ||
state disaster preparedness and educational materials and on | ||
Internet websites; | ||
(17-a) create a page on the division's Internet | ||
website for each state of disaster declared under Section 418.014 | ||
to provide information to the public about that disaster; | ||
(18) establish a liability awareness program for | ||
volunteers, including medical professionals; | ||
(19) define "individuals with special needs" in the | ||
context of a disaster; | ||
(20) establish and operate, subject to the | ||
availability of funds, a search and rescue task force in each field | ||
response region established by the division to assist in search, | ||
rescue, and recovery efforts before, during, and after a natural or | ||
man-made disaster; and | ||
(21) do other things necessary, incidental, or | ||
appropriate for the implementation of this chapter. | ||
SECTION 3. Section 418.048, Government Code, is amended to | ||
read as follows: | ||
Sec. 418.048. MONITORING WEATHER. (a) The division shall | ||
keep continuously apprised of weather conditions that present | ||
danger of climatic activity, such as precipitation, severe enough | ||
to constitute a disaster. | ||
(b) The division shall: | ||
(1) establish a system to categorize winter storms | ||
according to predicted severity; and | ||
(2) create a list of suggested actions for state | ||
agencies to take to prepare for storms, organized by winter storm | ||
category. | ||
SECTION 4. Chapter 418, Government Code, is amended by | ||
adding Subchapter J to read as follows: | ||
SUBCHAPTER J. TEXAS ENERGY RELIABILITY COUNCIL | ||
Sec. 418.301. DEFINITIONS. In this subchapter: | ||
(1) "Chief" means the division's chief. | ||
(2) "Council" means the Texas Energy Reliability | ||
Council. | ||
Sec. 418.302. COUNCIL ESTABLISHED. The Texas Energy | ||
Reliability Council is established to ensure that high priority | ||
human needs are met in the event of necessary curtailment of natural | ||
gas distribution or supplies. | ||
Sec. 418.303. MEMBERSHIP. The council is composed of | ||
members as follows: | ||
(1) the chairman of the Railroad Commission of Texas; | ||
(2) the presiding officer of the Public Utility | ||
Commission of Texas; | ||
(3) the presiding officer of the Texas Commission on | ||
Environmental Quality; | ||
(4) the chair of the Texas Transportation Commission; | ||
(5) a person to represent the independent organization | ||
certified under Section 39.151, Utilities Code, for the ERCOT power | ||
region, appointed by the governor; | ||
(6) the chief; | ||
(7) five persons to represent oil and gas well | ||
operators or oil or gas pipeline operators, appointed by the | ||
governor; | ||
(8) five persons to represent the electric industry, | ||
appointed by the governor; and | ||
(9) five persons to represent industrial concerns, | ||
appointed by the governor. | ||
Sec. 418.304. OFFICERS. (a) The chief is designated as the | ||
interim presiding officer for purposes of calling and conducting | ||
the initial meeting of the council. | ||
(b) The council: | ||
(1) at its initial meeting, shall select a presiding | ||
officer from among its members for the purpose of calling and | ||
conducting meetings; and | ||
(2) may select an assistant presiding officer and | ||
secretary from among its members. | ||
Sec. 418.305. COMPENSATION; REIMBURSEMENT. A member of the | ||
council is not entitled to compensation or reimbursement of | ||
expenses for service on the council. | ||
Sec. 418.306. MEETINGS. (a) After its initial meeting, the | ||
task force shall meet at least twice each year at a time and place | ||
determined by the presiding officer. | ||
(b) The council may meet at other times the council | ||
considers appropriate. The presiding officer may call a meeting on | ||
the officer's own motion. | ||
(c) The council may meet by teleconference. | ||
Sec. 418.307. ADMINISTRATIVE SUPPORT. The division shall | ||
provide administrative support to the council. | ||
Sec. 418.308. DUTIES OF COUNCIL. The council shall foster | ||
communication and planning to ensure preparedness for natural gas | ||
availability and delivery to residences, hospitals, schools, | ||
churches, and other human needs customers during a period of | ||
necessary curtailment of natural gas distribution or supplies. | ||
SECTION 5. Subchapter C, Chapter 86, Natural Resources | ||
Code, is amended by adding Section 86.044 to read as follows: | ||
Sec. 86.044. WEATHER EMERGENCY PREPAREDNESS. (a) The | ||
commission by rule shall require an operator of a gas well to | ||
implement measures to prepare the well to operate during a weather | ||
emergency. | ||
(b) The commission by rule shall require an operator of a | ||
gas well that experiences repeated or major weather-related forced | ||
interruptions of production to: | ||
(1) contract with a person who is not an employee of | ||
the provider to assess the operator's weatherization plans, | ||
procedures, and operations; and | ||
(2) submit the assessment to the commission. | ||
(c) If the commission determines that a person has violated | ||
a rule adopted under this section, the commission shall notify the | ||
attorney general of the violation. The attorney general shall | ||
initiate a suit to recover a penalty for the violation in the manner | ||
provided by Subchapter G. | ||
SECTION 6. Section 86.222, Natural Resources Code, is | ||
amended by adding Subsection (a-1) to read as follows: | ||
(a-1) Notwithstanding Subsection (a), a person who violates | ||
a provision of a rule adopted under Section 86.044 is liable for a | ||
penalty of not more than $1,000,000 for each offense. | ||
SECTION 7. Section 15.023, Utilities Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsections (b) and (d), the penalty | ||
for a violation of a provision of Subtitle B may be in an amount not | ||
to exceed $1,000,000 for a violation. Each day a violation | ||
continues or occurs is a separate violation for purposes of | ||
imposing a penalty. | ||
SECTION 8. Section 17.003, Utilities Code, is amended by | ||
adding Subsection (d-1) to read as follows: | ||
(d-1) An electric utility providing transmission service | ||
for a retail electric provider, as defined by Section 31.002, shall | ||
collaborate with the retail electric provider to ensure that | ||
information about the following matters is regularly provided to | ||
the retail electric provider's retail customers together with bills | ||
sent to the customers: | ||
(1) the electric utility's procedures for implementing | ||
rolling blackouts; | ||
(2) the types of customers who may be considered | ||
critical customers or critical load according to commission rules | ||
adopted under Section 38.075; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical customer or critical load according to | ||
commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when rolling | ||
blackouts may be implemented. | ||
SECTION 9. Section 17.005, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED | ||
UTILITIES. (a) A municipally owned utility may not be deemed to be | ||
a "service provider" or "billing agent" for purposes of Sections | ||
17.156(b) and (e). | ||
(b) The governing body of a municipally owned utility shall | ||
adopt, implement, and enforce rules that shall have the effect of | ||
accomplishing the objectives set out in Sections 17.004(a) and (b) | ||
and 17.102, as to the municipally owned utility within its | ||
certificated service area. | ||
(c) The governing body of a municipally owned utility or its | ||
designee shall perform the dispute resolution function provided for | ||
by Section 17.157 for disputes arising from services provided by | ||
the municipally owned utility to electric customers served within | ||
the municipally owned utility's certificated service area. | ||
(d) With respect to electric customers served by a | ||
municipally owned utility outside its certificated service area or | ||
otherwise served through others' distribution facilities, after | ||
retail competition begins as authorized by the legislature, the | ||
provisions of this chapter as administered by the commission apply. | ||
(e) Nothing in this chapter shall be deemed to apply to a | ||
wholesale customer of a municipally owned utility. | ||
(f) A municipally owned utility shall regularly provide | ||
with bills sent to retail customers of the utility information | ||
about: | ||
(1) the utility's procedure for implementing rolling | ||
blackouts; | ||
(2) the types of customers who may be considered | ||
critical customers or critical load according to commission rules | ||
adopted under Section 38.075; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical customer or critical load according to | ||
commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when rolling | ||
blackouts may be implemented. | ||
SECTION 10. Section 17.006, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC | ||
COOPERATIVES. (a) An electric cooperative shall not be deemed to | ||
be a "service provider" or "billing agent" for purposes of Sections | ||
17.156(b) and (e). | ||
(b) The electric cooperative shall adopt, implement, and | ||
enforce rules that shall have the effect of accomplishing the | ||
objectives set out in Sections 17.004(a) and (b) and 17.102. | ||
(c) The board of directors of the electric cooperative or | ||
its designee shall perform the dispute resolution function provided | ||
for by Section 17.157 for electric customers served by the electric | ||
cooperative within its certificated service area. | ||
(d) With respect to electric customers served by an electric | ||
cooperative outside its certificated service area or otherwise | ||
served through others' distribution facilities, after the | ||
legislature authorizes retail competition, the provisions of this | ||
chapter as administered by the commission shall apply. | ||
(e) Nothing in this chapter shall be deemed to apply to a | ||
wholesale customer of an electric cooperative. | ||
(f) An electric cooperative shall regularly provide with | ||
bills sent to retail customers of the cooperative information | ||
about: | ||
(1) the cooperative's procedure for implementing | ||
rolling blackouts; | ||
(2) the types of customers who may be considered | ||
critical customers or critical load according to commission rules | ||
adopted under Section 38.075; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical customer or critical load according to | ||
commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when rolling | ||
blackouts may be implemented. | ||
SECTION 11. The heading to Chapter 35, Utilities Code, is | ||
amended to read as follows: | ||
CHAPTER 35. [ |
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SECTION 12. Subchapter A, Chapter 35, Utilities Code, is | ||
amended by adding Section 35.0021 to read as follows: | ||
Sec. 35.0021. WEATHER EMERGENCY PREPAREDNESS. (a) This | ||
section applies only to a municipally owned utility, electric | ||
cooperative, qualifying facility, power generation company, or | ||
exempt wholesale generator, that provides generation service in the | ||
ERCOT power region. | ||
(b) The commission by rule shall require each provider of | ||
generation service described by Subsection (a) to implement | ||
measures to prepare the provider's generation assets to provide | ||
adequate electric generation service during a winter weather | ||
emergency according to reliability standards adopted by the | ||
commission. | ||
(c) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall: | ||
(1) inspect generation assets in the ERCOT power | ||
region for compliance with the reliability standards; and | ||
(2) report to the commission any violation of a rule | ||
adopted under Subsection (b) that the independent organization | ||
discovers by an inspection conducted under this subsection. | ||
(d) The commission by rule shall require a provider of | ||
generation service described by Subsection (a) that experiences | ||
repeated or major weather-related forced interruptions of service | ||
to: | ||
(1) contract with a person who is not an employee of | ||
the provider to assess the provider's weatherization plans, | ||
procedures, and operations; and | ||
(2) submit the assessment to the commission and the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region. | ||
(e) A provider of generation service described by | ||
Subsection (a) must obtain the approval of the commission and the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region before the provider conducts maintenance during | ||
a month in which, historically, as determined by the commission, | ||
electricity use has reached a summer or winter peak. | ||
(f) The commission shall impose an administrative penalty | ||
on a person who violates a rule adopted under this section in the | ||
manner provided by Chapter 15. | ||
SECTION 13. Section 36.205(d), Utilities Code, is amended | ||
to read as follows: | ||
(d) The commission may provide a mechanism to allow an | ||
electric utility that has a noncontiguous geographical service area | ||
and that purchases power for resale for that noncontiguous service | ||
area from electric utilities that are not members of the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region [ |
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recover purchased power costs for the area in a manner that reflects | ||
the purchased power cost for that specific geographical | ||
noncontiguous area. The commission may not require an electric | ||
cooperative corporation to use the mechanism provided under this | ||
section unless the electric cooperative corporation requests its | ||
use. | ||
SECTION 14. Section 36.403(g), Utilities Code, is amended | ||
to read as follows: | ||
(g) Notwithstanding Section 39.303(c), system restoration | ||
costs shall be functionalized and allocated to customers in the | ||
same manner as the corresponding facilities and related expenses | ||
are functionalized and allocated in the electric utility's current | ||
base rates. For an electric utility operating within ERCOT [ |
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that are properly includable in the transmission cost of service | ||
mechanism adopted under Section 35.004 and associated deferred | ||
costs not included under Section 35.004 shall be recovered under | ||
the method of pricing provided for in that section and commission | ||
rules promulgated under that section; provided, however, that an | ||
electric utility operating under a rate freeze or other limitation | ||
on its ability to pass through wholesale costs to its customers may | ||
defer such costs and accrue carrying costs at its weighted average | ||
cost of capital as last approved by the commission in a general rate | ||
proceeding until such time as the freeze or limitation expires. | ||
SECTION 15. Subchapter D, Chapter 38, Utilities Code, is | ||
amended by adding Sections 38.074 and 38.075 to read as follows: | ||
Sec. 38.074. WINTER WEATHER EMERGENCY PREPAREDNESS. (a) | ||
The commission by rule shall require each electric cooperative, | ||
municipally owned utility, and transmission and distribution | ||
utility providing transmission service in the ERCOT power region to | ||
implement measures to prepare the cooperative's or utility's | ||
facilities to maintain service quality and reliability during a | ||
winter weather emergency according to standards adopted by the | ||
commission. | ||
(b) The commission shall impose an administrative penalty | ||
on a person who violates a rule adopted under this section in the | ||
manner provided by Chapter 15. | ||
Sec. 38.075. LOAD SHEDDING DURING ROLLING BLACKOUT. (a) | ||
The commission by rule shall adopt a system to allocate load | ||
shedding among electric cooperatives, municipally owned utilities, | ||
and transmission and distribution utilities providing transmission | ||
service in the ERCOT power region during a rolling blackout | ||
initiated by an independent organization certified under Section | ||
39.151 for the region. | ||
(b) The system must provide for allocations for electric | ||
cooperatives, municipally owned utilities, and transmission and | ||
distribution utilities in different seasons based on typical | ||
seasonal usage in the geographic area served by the electric | ||
cooperative, municipally owned utility, or transmission and | ||
distribution utility. | ||
(c) The commission by rule shall: | ||
(1) categorize types of critical load that may be | ||
excluded from participation in load shedding; and | ||
(2) require electric cooperatives, municipally owned | ||
utilities, and transmission and distribution utilities providing | ||
transmission service in the ERCOT power region to submit to the | ||
commission and the independent organization certified under | ||
Section 39.151 for the region: | ||
(A) customers or circuits the cooperative or | ||
utility has designated as critical load; and | ||
(B) a plan for participating in load shedding in | ||
response to a rolling blackout. | ||
(d) The commission by rule shall require electric | ||
cooperatives, municipally owned utilities, and transmission and | ||
distribution utilities providing transmission service in the ERCOT | ||
power region to: | ||
(1) maintain lists of customers willing to voluntarily | ||
participate in load shedding; and | ||
(2) coordinate with municipalities, businesses, and | ||
customers that consume large amounts of electricity to encourage | ||
voluntary load shedding. | ||
SECTION 16. Section 39.051(c), Utilities Code, is amended | ||
to read as follows: | ||
(c) An electric utility may accomplish the separation | ||
required by Subsection (b) either through the creation of separate | ||
nonaffiliated companies or separate affiliated companies owned by a | ||
common holding company or through the sale of assets to a third | ||
party. An electric utility may create separate transmission and | ||
distribution utilities. Notwithstanding any other provision of | ||
this chapter, an electric utility that does not have stranded costs | ||
described by Section 39.254 and that on September 1, 2005, has not | ||
finalized unbundling pursuant to a commission order approving an | ||
unbundling plan may also meet the requirements of Subsection (b) | ||
for generation facilities existing on September 1, 2005, in ERCOT | ||
[ |
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maintains compliance with the following requirements: | ||
(1) the electric utility has no more than 400 | ||
megawatts of Texas jurisdictional capacity from generating units | ||
within ERCOT [ |
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not been mothballed or retired; | ||
(2) the electric utility has a contract or contracts | ||
with separate nonaffiliated companies or separate affiliated | ||
companies for the sale of all of the output from its generating | ||
units that have not been mothballed or retired with a contract term | ||
that is no shorter than 20 years or the life of the generating | ||
units, whichever is shorter; and | ||
(3) the electric utility has a separate division | ||
within the electric utility for its generation business activities. | ||
SECTION 17. Subchapter C, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.1026 to read as follows: | ||
Sec. 39.1026. VARIABLE RATE PLANS FOR ELECTRIC SERVICE | ||
PROHIBITED. The commission by rule shall require a retail electric | ||
provider to offer service under a fixed-price contract. A retail | ||
electric provider may not offer a contract for service at a variable | ||
rate. | ||
SECTION 18. Subchapter D, Chapter 39, Utilities Code, is | ||
amended by adding Sections 39.159 and 39.160 to read as follows: | ||
Sec. 39.159. MARKET PROCEDURES FOR CERTAIN GENERATORS. The | ||
commission by rule shall require the operator of a wind power | ||
generating unit or solar power generating unit providing output in | ||
the ERCOT power region to: | ||
(1) commit to the independent organization certified | ||
under Section 39.151 for the ERCOT power region to provide a | ||
specific load; and | ||
(2) if the operator cannot meet the load commitment | ||
using the generating unit, meet the load commitment using electric | ||
energy storage or through a purchase from another generating unit. | ||
Sec. 39.160. WHOLESALE PRICING PROCEDURES. (a) The | ||
commission by rule shall establish an emergency system-wide offer | ||
cap program for the wholesale electric market. | ||
(b) If the program includes more than one system-wide offer | ||
cap: | ||
(1) the program may not authorize the high system-wide | ||
offer cap to be in effect for a continuous period of more than one | ||
hour; | ||
(2) the program may only allow for a low system-wide | ||
offer cap that cannot exceed the high system-wide offer cap; and | ||
(3) the price of ancillary services may not exceed the | ||
high system-wide offer cap. | ||
SECTION 19. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.9165 to read as follows: | ||
Sec. 39.9165. DISTRIBUTED GENERATION REPORTING. (a) In | ||
this section, "distributed generation" is an electrical generating | ||
facility that: | ||
(1) is located at a customer's point of delivery; | ||
(2) has a capacity of not more than 10 megawatts; | ||
(3) is connected at a voltage less than or equal to 60 | ||
kilovolts; and | ||
(4) may be connected in parallel operation to the | ||
utility system. | ||
(b) An independent organization certified under Section | ||
39.151 shall require an owner or operator of distributed generation | ||
to report to the organization the type of generation owned or | ||
operated, including whether the generation is powered by a | ||
renewable source or uses battery storage. | ||
(c) This section does not apply to distributed generation | ||
located on residential property. | ||
SECTION 20. Section 105.023, Utilities Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsection (b), a civil penalty under | ||
this section shall be in an amount of not less than $1,000 and not | ||
more than $1,000,000 for each violation of Section 104.258(c). | ||
SECTION 21. Section 121.2015, Utilities Code, is amended by | ||
amending Subsection (a) and adding Subsections (d) and (e) to read | ||
as follows: | ||
(a) The railroad commission shall adopt rules regarding: | ||
(1) public education and awareness relating to gas | ||
pipeline facilities; [ |
||
(2) community liaison for responding to an emergency | ||
relating to a gas pipeline facility; and | ||
(3) measures gas pipeline facility operators must | ||
implement to prepare gas pipeline facilities to maintain service | ||
quality and reliability during extreme weather conditions. | ||
(d) The commission by rule shall require a gas pipeline | ||
facility operator that experiences repeated or major | ||
weather-related forced interruptions of service to: | ||
(1) contract with a person who is not an employee of | ||
the provider to assess the operator's weatherization plans, | ||
procedures, and operations; and | ||
(2) submit the assessment to the commission. | ||
(e) The commission shall assess an administrative penalty | ||
against a person who violates a rule adopted under Subsection | ||
(a)(3) in the manner provided by Subchapter E. | ||
SECTION 22. Section 121.206, Utilities Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsection (b), the penalty for each | ||
violation may not exceed $1,000,000 for a violation of a rule | ||
adopted under Section 121.2015(a)(3). Each day a violation | ||
continues may be considered a separate violation for the purpose of | ||
penalty assessment. | ||
SECTION 23. Subchapter E, Chapter 13, Water Code, is | ||
amended by adding Section 13.151 to read as follows: | ||
Sec. 13.151. BILLING FOR SERVICES PROVIDED DURING EXTREME | ||
WEATHER EMERGENCY. A retail public utility that is required to | ||
possess a certificate of public convenience and necessity or a | ||
district and affected county that furnishes retail water or sewer | ||
utility service, shall defer collection of the full payment of | ||
bills that are due during an extreme weather emergency until after | ||
the emergency is over and shall work with customers to establish a | ||
pay schedule for deferred bills. | ||
SECTION 24. Section 13.414, Water Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) Notwithstanding Subsection (a), a retail public | ||
utility or affiliated interest that violates Section 13.151 is | ||
subject to a civil penalty of not less than $100 nor more than | ||
$1,000,000 for each violation. | ||
SECTION 25. Section 13.4151, Water Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) Notwithstanding Subsection (a), the penalty for a | ||
violation of Section 13.151 may be in an amount not to exceed | ||
$1,000,000 a day. Each day a violation continues may be considered a | ||
separate violation. | ||
SECTION 26. (a) The State Energy Plan Advisory Committee is | ||
composed of 12 members. The governor, lieutenant governor, and | ||
speaker of the house of representatives each shall appoint four | ||
members to the advisory committee. | ||
(b) Not later than September 1, 2022, the State Energy Plan | ||
Advisory Committee shall prepare a comprehensive state energy plan. | ||
The plan must: | ||
(1) evaluate barriers in the electricity and natural | ||
gas markets that prevent sound economic decisions; | ||
(2) evaluate methods to improve the reliability, | ||
stability, and affordability of electric service in this state; and | ||
(3) provide recommendations for removing the barriers | ||
described by Subdivision (1) and using the methods described by | ||
Subdivision (2). | ||
(c) The state energy plan prepared under this section must | ||
be submitted to the legislature not later than September 1, 2022. | ||
SECTION 27. The Public Utility Commission of Texas and the | ||
independent organization certified under Section 39.151, Utilities | ||
Code, shall review statutes, rules, protocols, and bylaws that | ||
apply to conflicts of interest for commissioners and for members of | ||
the governing body of the independent organization and submit to | ||
the legislature a report on the effects the statutes, rules, | ||
protocols, and bylaws have on the ability of the commission and the | ||
independent organization to fulfill their duties. | ||
SECTION 28. 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 September 1, 2021. |