Bill Text: TX SB3 | 2021-2022 | 87th Legislature | Comm Sub
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-Comm_Sub.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-Comm_Sub.html
By: Schwertner | S.B. No. 3 | |
(In the Senate - Filed March 12, 2021; March 18, 2021, read | ||
first time and referred to Committee on Jurisprudence; | ||
March 26, 2021, reported adversely, with favorable Committee | ||
Substitute by the following vote: Yeas 5, Nays 0; March 26, 2021, | ||
sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 3 | By: Huffman |
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relating to preparing for, preventing, and responding to weather | ||
emergencies and power outages; 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. POWER OUTAGE ALERT | ||
Sec. 411.301. POWER OUTAGE ALERT. (a) With the cooperation | ||
of the Texas Department of Transportation, the Texas Division of | ||
Emergency Management, the office of the governor, and the Public | ||
Utility Commission of Texas, the department shall develop and | ||
implement an alert to be activated when the power supply in this | ||
state may be inadequate to meet demand. | ||
(b) The Public Utility Commission of Texas by rule shall | ||
adopt criteria for the content and activation of the alert | ||
described by Subsection (a). The criteria must provide for an alert | ||
to be regional or statewide. | ||
Sec. 411.302. ADMINISTRATION. (a) The director is the | ||
statewide coordinator of the power outage alert. | ||
(b) The director shall adopt rules and issue directives as | ||
necessary to ensure proper implementation of the power outage | ||
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 power outage alert. | ||
Sec. 411.303. 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 power outage alert | ||
system. | ||
Sec. 411.304. STATE AGENCIES. (a) A state agency | ||
participating in the power outage 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 power outage 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. 411.305. ACTIVATION OF POWER OUTAGE ALERT. (a) When | ||
the Public Utility Commission of Texas or an independent | ||
organization certified under Section 39.151, Utilities Code, | ||
notifies the department that the power supply in this state or a | ||
region of this state may be inadequate to meet demand, the | ||
department shall confirm the accuracy of the information and, if | ||
confirmed, immediately issue a power outage alert under this | ||
subchapter in accordance with department rules. | ||
(b) In issuing the power outage 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. 411.306. CONTENT OF POWER OUTAGE ALERT. The power | ||
outage alert must include a statement that electricity customers | ||
may experience a power outage. | ||
Sec. 411.307. TERMINATION OF POWER OUTAGE ALERT. The | ||
director shall terminate any activation of the power outage 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. 411.308. LIMITATION ON PARTICIPATION BY TEXAS | ||
DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.304(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 418.048, 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 create a list of suggested actions | ||
for state agencies and the public to take to prepare for winter | ||
storms, organized by severity of storm based on the National | ||
Weather Service Winter Storm Severity Index. | ||
SECTION 3. 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: | ||
(1) ensure that the energy and electric industries in | ||
this state meet high priority human needs and address critical | ||
infrastructure concerns; and | ||
(2) enhance coordination and communication in the | ||
energy and electric industries in this state. | ||
Sec. 418.303. MEMBERSHIP. (a) The council is composed of: | ||
(1) the chairman of the Railroad Commission of Texas; | ||
(2) the presiding officer of the Public Utility | ||
Commission of Texas; | ||
(3) the chief executive of the Office of Public | ||
Utility Counsel; | ||
(4) the presiding officer of the Texas Commission on | ||
Environmental Quality; | ||
(5) the chair of the Texas Transportation Commission; | ||
(6) a person to represent the independent organization | ||
certified under Section 39.151, Utilities Code, for the ERCOT power | ||
region, appointed by the governor; | ||
(7) the chief; | ||
(8) five persons to represent participants in the | ||
natural gas supply chain in this state, appointed by the Railroad | ||
Commission of Texas to represent as many types of participants as | ||
possible; | ||
(9) five persons to represent the electric industry, | ||
appointed by the Public Utility Commission of Texas, including: | ||
(A) one person to represent entities that provide | ||
dispatchable electric energy to the power grid in this state; | ||
(B) one person to represent transmission and | ||
distribution utilities, as defined by Section 31.002, Utilities | ||
Code; | ||
(C) one person to represent retail electric | ||
providers, as defined by Section 31.002, Utilities Code; | ||
(D) one person to represent municipally owned | ||
utilities, as defined by Section 11.003, Utilities Code; and | ||
(E) one person to represent electric | ||
cooperatives; | ||
(10) three persons to represent energy sectors not | ||
otherwise represented on the council, such as the non-dispatchable | ||
sources of energy, coal, or nuclear sectors, appointed by the | ||
Public Utility Commission of Texas; and | ||
(11) five persons to represent industrial concerns, | ||
appointed by the governor, including: | ||
(A) one person to represent motor fuel producers; | ||
and | ||
(B) one person to represent chemical | ||
manufacturers. | ||
(b) A member of the council described by Subsection (a)(1), | ||
(2), (3), (4), (5), (6), or (7) may designate a person from the | ||
member's agency to represent the member in any meeting. | ||
(c) The council may request that a person collaborate with | ||
the council to achieve the purposes described by Section 418.302. | ||
Sec. 418.304. OFFICERS. (a) The chief shall serve as | ||
presiding officer of the council. | ||
(b) The council 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 | ||
council shall meet at least twice each year at a time and place | ||
determined by the chief. | ||
(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. | ||
Sec. 418.307. ADMINISTRATIVE SUPPORT. The division shall | ||
provide administrative support to the council. | ||
Sec. 418.308. GENERAL DUTIES OF COUNCIL. (a) The council | ||
shall foster communication and planning to ensure preparedness for | ||
making available and delivering energy and electricity in this | ||
state to ensure that high priority human needs are met and critical | ||
infrastructure needs are addressed. | ||
(b) The council shall foster communication and coordination | ||
between the energy and electric industries in this state. | ||
Sec. 418.309. SUPPLY CHAIN MAP. The council shall: | ||
(1) map the natural gas supply chain for this state in | ||
order to designate priority service needs during extreme weather | ||
events, including electric generation facilities powered by | ||
natural gas; and | ||
(2) identify and designate the sources in the supply | ||
chain necessary to operate critical infrastructure, as defined by | ||
Section 421.001. | ||
SECTION 4. 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) In this | ||
section, "gas supply chain facility" means a facility that is: | ||
(1) used for producing, treating, processing, | ||
pressurizing, storing, or transporting natural gas to end | ||
consumers; | ||
(2) otherwise regulated by the commission under this | ||
subtitle; and | ||
(3) not regulated by the commission under Chapter 121, | ||
Utilities Code. | ||
(b) The commission by rule shall require a gas supply chain | ||
facility operator to implement measures to prepare to operate | ||
during a weather emergency. In adopting the rules, the commission | ||
shall take into consideration the supply chain map created under | ||
Section 418.309, Government Code. | ||
(c) The commission by rule shall require an operator of a | ||
gas supply chain facility 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. | ||
(d) The commission may require an operator of a gas supply | ||
chain facility to implement appropriate recommendations included | ||
in an assessment submitted to the commission under Subsection (c). | ||
(e) 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 5. Section 86.222, Natural Resources Code, is | ||
amended by adding Subsections (a-1), (c), and (d) 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. | ||
(c) The commission by rule shall establish a classification | ||
system to be used by a court under this subchapter for violations of | ||
rules adopted under Section 86.044 that includes a range of | ||
penalties that may be recovered for each class of violation based | ||
on: | ||
(1) the seriousness of the violation, including: | ||
(A) the nature, circumstances, extent, and | ||
gravity of a prohibited act; and | ||
(B) the hazard or potential hazard created to the | ||
health, safety, or economic welfare of the public; | ||
(2) the history of previous violations; | ||
(3) the amount necessary to deter future violations; | ||
(4) efforts to correct the violation; and | ||
(5) any other matter that justice may require. | ||
(d) The classification system established under Subsection | ||
(c) shall provide that a penalty in an amount that exceeds $5,000 | ||
may be recovered only if the violation is included in the highest | ||
class of violations in the classification system. | ||
SECTION 6. Section 15.023, Utilities Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) Notwithstanding Subsection (b), 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 7. Section 17.002, Utilities Code, is amended by | ||
adding Subdivision (3-a) to read as follows: | ||
(3-a) "Critical care residential customer" means a | ||
residential customer who has permanently residing in the customer's | ||
home a person who has been diagnosed by a physician as being | ||
dependent upon an electric-powered medical device to sustain life. | ||
SECTION 8. Section 17.003, Utilities Code, is amended by | ||
adding Subsections (d-1) and (e) to read as follows: | ||
(d-1) An electric utility providing electric delivery | ||
service for a retail electric provider, as defined by Section | ||
31.002, shall collaborate with the retail electric provider and the | ||
commission to ensure that information about the following matters | ||
is periodically provided to the retail electric provider's retail | ||
customers together with bills sent to the customers: | ||
(1) the electric utility's procedures for implementing | ||
involuntary load shedding initiated by the independent | ||
organization certified for the ERCOT power region; | ||
(2) the types of customers who may be considered | ||
critical care residential 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 care residential customer or critical load | ||
according to commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events may be implemented. | ||
(e) The commission by rule shall require each retail | ||
electric provider to: | ||
(1) provide to the provider's customers clear and | ||
understandable information about the requirements for voluntary | ||
load shedding participation before the provider accepts a | ||
customer's agreement to volunteer to participate in voluntary load | ||
shedding; | ||
(2) inform the provider's transmission and | ||
distribution utilities whether the retail electric provider serves | ||
customers willing to voluntarily participate in load shedding | ||
during an energy emergency; and | ||
(3) coordinate with the provider's transmission and | ||
distribution utilities regarding the potential total amounts of | ||
electricity that would be available if voluntary load shedding is | ||
needed. | ||
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 periodically provide | ||
with bills sent to retail customers of the utility information | ||
about: | ||
(1) the utility's procedure for implementing | ||
involuntary load shedding; | ||
(2) the types of customers who may be considered | ||
critical care residential 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 care residential customer or critical load | ||
according to commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events 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 periodically provide with | ||
bills sent to retail customers of the cooperative information | ||
about: | ||
(1) the cooperative's procedure for implementing | ||
involuntary load shedding; | ||
(2) the types of customers who may be considered | ||
critical care residential 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 care residential customer or critical load | ||
according to commission rules adopted under Section 38.075; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events may be implemented. | ||
SECTION 11. The heading to Chapter 35, Utilities Code, is | ||
amended to read as follows: | ||
CHAPTER 35. [ |
||
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 sells electric energy at wholesale | ||
in the ERCOT power region. | ||
(b) The commission by rule shall require each provider of | ||
electric generation service described by Subsection (a) to | ||
implement measures to prepare the provider's generation assets to | ||
provide adequate electric generation service during a 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; | ||
(2) provide the owner of a generation asset with a | ||
reasonable period of time in which to remedy any violation the | ||
independent organization discovers in an inspection; and | ||
(3) report to the commission any violation that is not | ||
remedied in a reasonable period of time. | ||
(d) The commission by rule shall require a provider of | ||
electric generation service described by Subsection (a) for a | ||
generation asset 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 for that asset; and | ||
(2) submit the assessment to the commission and the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region. | ||
(e) The commission may require a provider of electric | ||
generation service described by Subsection (a) to implement | ||
appropriate recommendations included in an assessment submitted to | ||
the commission under Subsection (d). | ||
(f) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall review, coordinate, and | ||
approve or deny requests by providers of electric generation | ||
service described by Subsection (a) for a planned power outage | ||
during a period in which historically, as determined by the | ||
commission, electricity use has reached a summer or winter peak. | ||
(g) The commission shall impose an administrative penalty | ||
on an entity, including a municipally owned utility or an electric | ||
cooperative, that violates a rule adopted under this section in the | ||
manner provided by Chapter 15. | ||
SECTION 13. Section 35.004(e), Utilities Code, is amended | ||
to read as follows: | ||
(e) The commission shall ensure that ancillary services | ||
necessary to facilitate the transmission of electric energy are | ||
available at reasonable prices with terms and conditions that are | ||
not unreasonably preferential, prejudicial, discriminatory, | ||
predatory, or anticompetitive. The commission shall ensure that | ||
the independent organization certified under Section 39.151 for the | ||
ERCOT power region procures ancillary services sufficient to manage | ||
any reliability impacts of intermittent generation resources, | ||
including variability across peak demand periods, and shall | ||
directly assign the costs of such services to intermittent | ||
generators consistent with cost-causation principles. In this | ||
subsection, "ancillary services" means services necessary to | ||
facilitate the transmission of electric energy including load | ||
following, standby power, backup power, reactive power, and any | ||
other services as the commission may determine by rule. On the | ||
introduction of customer choice in the ERCOT power region, | ||
acquisition of generation-related ancillary services on a | ||
nondiscriminatory basis by the independent organization in ERCOT on | ||
behalf of entities selling electricity at retail shall be deemed to | ||
meet the requirements of this subsection. | ||
SECTION 14. Subchapter D, Chapter 38, Utilities Code, is | ||
amended by adding Sections 38.074, 38.075, and 38.076 to read as | ||
follows: | ||
Sec. 38.074. 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 | ||
weather emergency according to standards adopted by the commission. | ||
(b) The commission shall impose an administrative penalty | ||
on an entity, including a municipally owned utility or an electric | ||
cooperative, that violates a rule adopted under this section in the | ||
manner provided by Chapter 15. | ||
Sec. 38.075. INVOLUNTARY LOAD SHEDDING. (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 an involuntary load | ||
shedding event initiated by an independent organization certified | ||
under Section 39.151 for the region during an energy emergency. | ||
(b) The system must provide for allocations for electric | ||
cooperatives, municipally owned utilities, and transmission and | ||
distribution utilities in different seasons based on historical | ||
seasonal peak 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 | ||
given the highest priority for power restoration; 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 an involuntary load shedding event described by | ||
Subsection (a). | ||
(d) The commission by rule shall require electric | ||
cooperatives and municipally owned 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. | ||
(e) This section does not abridge, enlarge, or modify the | ||
obligation of an electric cooperative, a municipally owned utility, | ||
or a transmission and distribution utility to comply with federal | ||
reliability standards. | ||
Sec. 38.076. LOAD SHEDDING EXERCISES. (a) The commission | ||
and the independent organization certified for the ERCOT power | ||
region shall conduct load shedding exercises with providers of | ||
electric generation service and transmission and distribution | ||
service in the ERCOT power region. | ||
(b) The commission shall ensure that each year at least one | ||
exercise is conducted during a summer month and one exercise is | ||
conducted during a winter month. | ||
SECTION 15. Subchapter C, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.110 to read as follows: | ||
Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a) | ||
In this section, "wholesale indexed product" means a retail | ||
electric product in which the price a customer pays for electricity | ||
includes a direct pass-through of real-time settlement point prices | ||
determined by the independent organization certified under Section | ||
39.151 for the ERCOT power region. | ||
(b) A retail electric provider may not offer a wholesale | ||
indexed product to a residential or small commercial customer. | ||
SECTION 16. Subchapter D, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.159 to read as follows: | ||
Sec. 39.159. WHOLESALE EMERGENCY PRICING PROCEDURES. (a) | ||
The commission by rule shall establish an emergency system-wide | ||
offer cap program based on actual costs of generation at the time of | ||
the emergency for the wholesale electric market. | ||
(b) If the program includes more than one emergency | ||
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 12 | ||
hours; | ||
(2) the program may only allow for a low system-wide | ||
offer cap that cannot exceed the high system-wide offer cap; | ||
(3) the program may not allow an emergency system-wide | ||
offer cap to exceed any nonemergency high system-wide offer cap; | ||
and | ||
(4) the price of ancillary services may not exceed 150 | ||
percent of the high system-wide offer cap. | ||
(c) The commission shall review the emergency system-wide | ||
offer cap program at least once every five years to determine | ||
whether to update aspects of the program. | ||
SECTION 17. 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) is connected at a voltage less than or equal to 60 | ||
kilovolts; and | ||
(3) 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 register with the organization and interconnecting transmission | ||
and distribution utility information necessary for the | ||
interconnection of the distributed generator. | ||
(c) This section does not apply to distributed generation | ||
serving a residential property. | ||
SECTION 18. Section 105.023, Utilities Code, is amended by | ||
adding Subsections (b-1), (e), and (f) 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). | ||
(e) The railroad commission by rule shall establish a | ||
classification system to be used by a court under this subchapter | ||
for violations of Section 104.258(c) that includes a range of | ||
penalties that may be recovered for each class of violation based | ||
on: | ||
(1) the seriousness of the violation, including: | ||
(A) the nature, circumstances, extent, and | ||
gravity of a prohibited act; and | ||
(B) the hazard or potential hazard created to the | ||
health, safety, or economic welfare of the public; | ||
(2) the history of previous violations; | ||
(3) the amount necessary to deter future violations; | ||
(4) efforts to correct the violation; and | ||
(5) any other matter that justice may require. | ||
(f) The classification system established under Subsection | ||
(e) shall provide that a penalty in an amount that exceeds $5,000 | ||
may be recovered only if the violation is included in the highest | ||
class of violations in the classification system. | ||
SECTION 19. Section 121.2015, Utilities Code, is amended by | ||
amending Subsection (a) and adding Subsections (d), (e), and (f) 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, taking | ||
into consideration the supply chain map created under Section | ||
418.309, Government Code. | ||
(d) The railroad 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 railroad commission may require an operator of a gas | ||
supply chain facility to implement appropriate recommendations | ||
included in an assessment submitted to the commission under | ||
Subsection (d). | ||
(f) The railroad 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 20. Section 121.206, Utilities Code, is amended by | ||
adding Subsections (b-1) and (e) 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. | ||
(e) The guidelines must provide that a penalty in an amount | ||
that exceeds $5,000 for a violation of a rule adopted under Section | ||
121.2015(a)(3) may be assessed only if circumstances justify the | ||
enhancement of the penalty. | ||
SECTION 21. The heading to Section 186.007, Utilities Code, | ||
is amended to read as follows: | ||
Sec. 186.007. PUBLIC UTILITY COMMISSION WEATHER EMERGENCY | ||
PREPAREDNESS REPORTS [ |
||
SECTION 22. Sections 186.007(a-1), (b), (d), (e), and (f), | ||
Utilities Code, are amended to read as follows: | ||
(a-1) The commission shall analyze emergency operations | ||
plans developed by electric utilities as defined by Section 31.002, | ||
power generation companies as defined by Section 31.002, | ||
municipally owned utilities, and electric cooperatives that | ||
operate generation facilities in this state and retail electric | ||
providers as defined by Section 31.002 and prepare a weather | ||
emergency preparedness report on power [ |
||
preparedness. In preparing the report, the commission shall: | ||
(1) review [ |
||
[ |
||
(2) analyze and determine the ability of the electric | ||
grid to withstand extreme weather events in the upcoming year; | ||
(3) consider the anticipated weather patterns for the | ||
upcoming year as forecasted by the National Weather Service or any | ||
similar state or national agency; and | ||
(4) make recommendations on improving emergency | ||
operations plans and procedures in order to ensure the continuity | ||
of electric service. | ||
(b) The commission shall [ |
||
emergency operations plan if it finds that an emergency operations | ||
plan on file does not contain adequate information to determine | ||
whether the [ |
||
electric [ |
||
(d) The commission shall submit the report described by | ||
Subsection (a-1) to the lieutenant governor, the speaker of the | ||
house of representatives, and the members of the legislature not | ||
later than September 30 of each even-numbered year[ |
||
(e) The commission may submit additional [ |
||
weather emergency preparedness reports if the commission finds that | ||
significant changes to weatherization techniques have occurred or | ||
are necessary to protect consumers or vital services, or if there | ||
have been changes to statutes or rules relating to weatherization | ||
requirements. A report under this subsection must be submitted not | ||
later than: | ||
(1) March 1 for a summer weather emergency | ||
preparedness report; and | ||
(2) September 1 for a winter weather emergency | ||
preparedness report. | ||
(f) The emergency operations plans submitted for a [ |
||
report described by Subsection (a-1) and any additional | ||
[ |
||
information except for the portions of the plan considered | ||
confidential under Chapter 552, Government Code, or other state or | ||
federal law. If portions of a plan are designated as confidential, | ||
the plan shall be provided to the commission in a redacted form for | ||
public inspection with the confidential portions removed. An | ||
[ |
||
provide the entity's plan to ERCOT in its entirety. | ||
SECTION 23. Subchapter A, Chapter 186, Utilities Code, is | ||
amended by adding Section 186.008 to read as follows: | ||
Sec. 186.008. RAILROAD COMMISSION WEATHER EMERGENCY | ||
PREPAREDNESS REPORTS. (a) In this section, "commission" means the | ||
Railroad Commission of Texas. | ||
(b) The commission shall analyze emergency operations plans | ||
developed by operators of gas supply chain facilities, as defined | ||
by Section 86.044, Natural Resources Code, and by gas pipeline | ||
facility operators regulated under Chapter 121 and prepare a | ||
weather emergency preparedness report on natural gas supply chain | ||
weatherization preparedness. In preparing the report, the | ||
commission shall: | ||
(1) review any emergency operations plans on file with | ||
the commission; | ||
(2) analyze and determine the ability of the natural | ||
gas supply chain, as mapped under Section 418.309, Government Code, | ||
to withstand extreme weather events in the upcoming year; | ||
(3) consider the anticipated weather patterns for the | ||
upcoming year as forecasted by the National Weather Service or any | ||
similar state or national agency; and | ||
(4) make recommendations on improving emergency | ||
operations plans and procedures in order to ensure the continuity | ||
of natural gas service. | ||
(c) The commission shall require an entity subject to this | ||
section to file an updated emergency operations plan if it finds | ||
that an emergency operations plan on file does not contain adequate | ||
information to determine whether the entity can provide adequate | ||
natural gas services. | ||
(d) The commission may adopt rules relating to the | ||
implementation of the report described by Subsection (b). | ||
(e) The commission shall submit the report described by | ||
Subsection (b) to the lieutenant governor, the speaker of the house | ||
of representatives, and the members of the legislature not later | ||
than September 30 of each even-numbered year. | ||
(f) The commission may submit additional weather emergency | ||
preparedness reports if the commission finds that significant | ||
changes to weatherization techniques have occurred or are necessary | ||
to protect consumers or vital services, or if there have been | ||
changes to statutes or rules relating to weatherization | ||
requirements. A report under this subsection must be submitted not | ||
later than: | ||
(1) March 1 for a summer weather emergency | ||
preparedness report; and | ||
(2) September 1 for a winter weather emergency | ||
preparedness report. | ||
(g) The emergency operations plans submitted for a report | ||
described by Subsection (b) and any additional plans submitted | ||
under Subsection (f) are public information except for the portions | ||
of the plan considered confidential under Chapter 552, Government | ||
Code, or other state or federal law. If portions of a plan are | ||
designated as confidential, the plan shall be provided to the | ||
commission in a redacted form for public inspection with the | ||
confidential portions removed. | ||
SECTION 24. Section 13.1395(a), Water Code, is amended to | ||
read as follows: | ||
(a) In this section: | ||
(1) "Affected utility" means a retail public utility, | ||
exempt utility, or provider or conveyor of potable or raw water | ||
service that furnishes water service to more than one customer[ |
||
[ |
||
[ |
||
(2) "Emergency operations" means the operation of a | ||
water system during an extended power outage at a minimum water | ||
pressure of 35 pounds per square inch. | ||
(3) "Extended power outage" means a power outage | ||
lasting for more than 24 hours. | ||
SECTION 25. 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) In this section, "extreme weather | ||
emergency" means a period when: | ||
(1) the previous day's highest temperature did not | ||
exceed 32 degrees Fahrenheit and the temperature is predicted to | ||
remain at or below that level for the next 24 hours according to the | ||
nearest National Weather Service reports; or | ||
(2) the National Weather Service issues a heat | ||
advisory for any county in the relevant service territory, or when | ||
such an advisory has been issued on any one of the previous two | ||
calendar days. | ||
(b) 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 26. Section 13.414, Water Code, is amended by | ||
adding Subsections (a-1), (d), and (e) 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. | ||
(d) The commission by rule shall establish a classification | ||
system to be used by a court under this section for violations of | ||
Section 13.151 that includes a range of penalties that may be | ||
recovered for each class of violation based on: | ||
(1) the seriousness of the violation, including: | ||
(A) the nature, circumstances, extent, and | ||
gravity of a prohibited act; and | ||
(B) the hazard or potential hazard created to the | ||
health, safety, or economic welfare of the public; | ||
(2) the history of previous violations; | ||
(3) the amount necessary to deter future violations; | ||
(4) efforts to correct the violation; and | ||
(5) any other matter that justice may require. | ||
(e) The classification system established under Subsection | ||
(d) shall provide that a penalty in an amount that exceeds $5,000 | ||
may be recovered only if the violation is included in the highest | ||
class of violations in the classification system. | ||
SECTION 27. 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. The utility commission may assess a penalty in an | ||
amount that exceeds $5,000 under this subsection only if the | ||
utility commission determines that a penalty in an amount that | ||
exceeds $5,000 is justified based on the seriousness of the | ||
violation as classified under Subsection (b). Each day a violation | ||
continues may be considered a separate violation. | ||
SECTION 28. (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; | ||
(3) provide recommendations for removing the barriers | ||
described by Subdivision (1) and using the methods described by | ||
Subdivision (2); and | ||
(4) evaluate the electricity market structure and | ||
pricing mechanisms used in this state. | ||
(c) The state energy plan prepared under this section must | ||
be submitted to the legislature not later than September 1, 2022. | ||
SECTION 29. 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 30. The Public Utility Commission of Texas shall | ||
complete the first review required by Section 39.159(c), Utilities | ||
Code, as added by this Act, not later than December 31, 2022. | ||
SECTION 31. (a) Not later than November 1, 2021, each | ||
affected utility, as defined by Section 13.1395, Water Code, as | ||
amended by this Act, shall complete the submissions required by | ||
Section 13.1396(c), Water Code. | ||
(b) Not later than March 1, 2022, each affected utility | ||
shall submit to the Texas Commission on Environmental Quality the | ||
emergency preparedness plan required by Section 13.1395, Water | ||
Code, as amended by this Act. | ||
(c) Not later than July 1, 2022, each affected utility shall | ||
implement the emergency preparedness plan approved by the Texas | ||
Commission on Environmental Quality under Section 13.1395, Water | ||
Code, as amended by this Act. | ||
(d) An affected utility may file with the Texas Commission | ||
on Environmental Quality a written request for an extension, not to | ||
exceed 90 days, of the date by which the affected utility is | ||
required under Subsection (b) of this section to submit the | ||
affected utility's emergency preparedness plan or of the date by | ||
which the affected utility is required under Subsection (c) of this | ||
section to implement the affected utility's emergency preparedness | ||
plan. The Texas Commission on Environmental Quality shall approve | ||
the requested extension for good cause shown. | ||
SECTION 32. 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. | ||
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