Bill Text: TX SB3 | 2021-2022 | 87th Legislature | Enrolled
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-Enrolled.html
S.B. No. 3 |
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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, activation, and termination 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 criteria adopted under Section | ||
411.301(b) for the activation of the alert has been met, 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 | ||
as soon as practicable after the Public Utility Commission of Texas | ||
or the Electric Reliability Council of Texas notifies the | ||
department that the criteria adopted under Section 411.301(b) for | ||
the termination of the alert has been met. | ||
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; DISASTER PREPAREDNESS | ||
EDUCATION. (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. | ||
(c) The division shall develop disaster preparedness | ||
educational materials that include instructions for preparing a | ||
disaster kit containing supplies most needed in a disaster or | ||
emergency, such as water, nonperishable food, medical supplies, | ||
flashlights, and other essential items, to assist families and | ||
businesses in adequately preparing for winter storms, hurricanes, | ||
floods, drought, fires, and other potential disasters. | ||
(d) The division shall post on the division's Internet | ||
website and distribute to local governments and businesses the | ||
educational materials and instructions developed under Subsection | ||
(c). | ||
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. (a) 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. | ||
(b) Chapter 2110 does not apply to the council. | ||
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, 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. INFORMATION. (a) In this section: | ||
(1) "Gas provider" means: | ||
(A) a natural gas pipeline facility operator; | ||
(B) an operator of a natural gas well; or | ||
(C) an entity that produces, treats, processes, | ||
pressurizes, stores, or transports natural gas in this state or | ||
otherwise participates in the natural gas supply chain in this | ||
state. | ||
(2) "Public utility" means an entity that generates, | ||
transmits, or distributes electric energy to the public, including | ||
an electric cooperative, an electric utility, a municipally owned | ||
utility, or a river authority. | ||
(b) A public utility or gas provider shall provide to the | ||
council any information related to a disaster requested by the | ||
council. Information obtained by the council under this subsection | ||
is confidential and not subject to disclosure by the council if the | ||
information is critical energy infrastructure information as | ||
defined by the independent organization certified under Section | ||
39.151, Utilities Code, for the ERCOT power region or federal law. | ||
(c) Except as provided by Subsection (d), the meetings of | ||
the council and information obtained or created by the council are | ||
not subject to the requirements of Chapter 551 or 552. | ||
(d) Information written, produced, collected, assembled, or | ||
maintained under law or in connection with the transaction of | ||
official business by the council or an officer or employee of the | ||
council is subject to Section 552.008 in the same manner as public | ||
information. | ||
Sec. 418.310. REPORT. (a) Not later than November 1 of | ||
each even-numbered year, the council shall submit to the | ||
legislature a report on the reliability and stability of the | ||
electricity supply chain in this state. | ||
(b) The report must include recommendations on methods to | ||
strengthen the electricity supply chain in this state and to | ||
decrease the frequency of extended power outages caused by a | ||
disaster in this state. | ||
SECTION 4. Subchapter C, Chapter 81, Natural Resources | ||
Code, is amended by adding Section 81.073 to read as follows: | ||
Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES. | ||
(a) The commission shall collaborate with the Public Utility | ||
Commission of Texas to adopt rules to establish a process to | ||
designate certain natural gas facilities and entities associated | ||
with providing natural gas in this state as critical customers or | ||
critical gas suppliers during energy emergencies. | ||
(b) The rules must: | ||
(1) establish criteria for designating 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 and critical gas supply information, as | ||
defined by the commission, to the entities described by Section | ||
38.074(b)(1), Utilities Code; | ||
(2) consider essential operational elements when | ||
defining critical customer designations and critical gas supply | ||
information for the purposes of Subdivision (1), including natural | ||
gas production, processing, and transportation, related produced | ||
water handling and disposal facilities, and the delivery of natural | ||
gas to generators of electric energy; and | ||
(3) require that only facilities and entities that are | ||
prepared to operate during a weather emergency may be designated as | ||
a critical customer under this section. | ||
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) In this | ||
section, "gas supply chain facility" means a facility that is: | ||
(1) used for producing, treating, processing, | ||
pressurizing, storing, or transporting natural gas; | ||
(2) not primarily used to support liquefied natural | ||
gas pretreatment, liquefaction, or regasification facilities in | ||
the business of exporting or importing liquefied natural gas to or | ||
from foreign countries; | ||
(3) otherwise regulated by the commission under this | ||
subtitle; and | ||
(4) not regulated by the commission under Chapter 121, | ||
Utilities Code. | ||
(b) This section applies only to a gas supply chain facility | ||
that is: | ||
(1) included on the electricity supply chain map | ||
created under Section 38.203, Utilities Code; and | ||
(2) designated as critical by the commission in the | ||
manner provided by Section 81.073. | ||
(c) 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 weather predictions produced by the | ||
office of the state climatologist. | ||
(d) The commission shall: | ||
(1) inspect gas supply chain facilities for compliance | ||
with rules adopted under Subsection (c); | ||
(2) provide the owner of a facility described by | ||
Subdivision (1) with a reasonable period of time in which to remedy | ||
any violation the commission discovers in an inspection; and | ||
(3) report to the attorney general any violation that | ||
is not remedied in a reasonable period of time. | ||
(e) The commission shall prioritize inspections conducted | ||
under Subsection (d)(1) based on risk level, as determined by the | ||
commission. | ||
(f) The commission by rule shall require an operator of a | ||
gas supply chain facility that experiences repeated | ||
weather-related or major weather-related forced interruptions of | ||
production to: | ||
(1) contract with a person who is not an employee of | ||
the operator to assess the operator's weatherization plans, | ||
procedures, and operations; and | ||
(2) submit the assessment to the commission. | ||
(g) 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 (f). | ||
(h) If the commission determines that a person has violated | ||
a rule adopted under this section, the commission shall notify the | ||
attorney general of a violation that is not remedied in a reasonable | ||
amount of time. 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 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 7. 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 Section 35.0021 or 38.075 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 17.002, Utilities Code, is amended by | ||
adding Subdivisions (3-a) and (3-b) to read as follows: | ||
(3-a) "Critical care residential customer" means a | ||
residential customer who has a person permanently residing in the | ||
customer's home who has been diagnosed by a physician as being | ||
dependent upon an electric-powered medical device to sustain life. | ||
(3-b) "Critical load industrial customer" means an | ||
industrial customer for whom an interruption or suspension of | ||
electric service will create a dangerous or life-threatening | ||
condition on the customer's premises. | ||
SECTION 9. Section 17.003, Utilities Code, is amended by | ||
adding Subsection (d-1) 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 provide to the retail electric provider, and the | ||
retail electric provider shall periodically provide to the retail | ||
electric provider's retail customers together with bills sent to | ||
the customers, information about: | ||
(1) the electric utility's procedures for implementing | ||
involuntary load shedding initiated by the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region; | ||
(2) the types of customers who may be considered | ||
critical care residential customers, critical load industrial | ||
customers, or critical load according to commission rules adopted | ||
under Section 38.076; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical care residential customer, a critical load | ||
industrial customer, or critical load according to commission rules | ||
adopted under Section 38.076; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events may be implemented. | ||
SECTION 10. 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, critical load industrial | ||
customers, or critical load according to commission rules adopted | ||
under Section 38.076; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical care residential customer, a critical load | ||
industrial customer, or critical load according to commission rules | ||
adopted under Section 38.076; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events may be implemented. | ||
SECTION 11. 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, critical load industrial | ||
customers, or critical load according to commission rules adopted | ||
under Section 38.076; | ||
(3) the procedure for a customer to apply to be | ||
considered a critical care residential customer, a critical load | ||
industrial customer, or critical load according to commission rules | ||
adopted under Section 38.076; and | ||
(4) reducing electricity use at times when involuntary | ||
load shedding events may be implemented. | ||
SECTION 12. The heading to Chapter 35, Utilities Code, is | ||
amended to read as follows: | ||
CHAPTER 35. [ |
||
SECTION 13. 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, 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. In adopting the rules, the commission shall take into | ||
consideration weather predictions produced by the office of the | ||
state climatologist. | ||
(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. | ||
(c-1) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall prioritize inspections | ||
conducted under Subsection (c)(1) based on risk level, as | ||
determined by the organization. | ||
(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 any season and for any period of time. | ||
(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 and | ||
does not remedy that violation within a reasonable period of time. | ||
SECTION 14. Section 35.004, Utilities Code, is amended by | ||
amending Subsection (e) and adding Subsections (f), (g), and (h) to | ||
read as follows: | ||
(e) In this section, "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. | ||
(f) 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. [ |
||
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. | ||
(g) The commission shall: | ||
(1) review the type, volume, and cost of ancillary | ||
services to determine whether those services will continue to meet | ||
the needs of the electricity market in the ERCOT power region; and | ||
(2) evaluate whether additional services are needed | ||
for reliability in the ERCOT power region while providing adequate | ||
incentives for dispatchable generation. | ||
(h) The commission shall require the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region to modify the design, procurement, and cost allocation of | ||
ancillary services for the region in a manner consistent with | ||
cost-causation principles and on a nondiscriminatory basis. | ||
SECTION 15. Subchapter B, Chapter 35, Utilities Code, is | ||
amended by adding Section 35.037 to read as follows: | ||
Sec. 35.037. FACILITATING CERTAIN INTERCOMPANY LANDFILL | ||
GAS-TO-ELECTRICITY USE. (a) This section only applies in a county | ||
with a population of more than one million in which a national | ||
wildlife refuge is wholly or partly located. | ||
(b) Notwithstanding any other provision of this title, and | ||
for the purposes of reducing environmental emissions, putting to a | ||
beneficial purpose landfill gas as an electric generation fuel that | ||
would otherwise be flared, enabling the operation of electric | ||
generation to a greater degree, and enhancing the reliability and | ||
resilience of electric service in this state, a person who is not an | ||
electric utility and who owns and operates equipment or facilities | ||
to produce, generate, transmit, distribute, store, sell, or furnish | ||
electricity produced by the use of landfill methane gas may: | ||
(1) use the equipment or facilities to provide | ||
electricity and electric service to the person and to the person's | ||
affiliates without being considered to be an electric utility, a | ||
public utility, a retail electric provider, a power marketer, or a | ||
person providing aggregation; | ||
(2) interconnect the equipment or facilities in a | ||
timely manner and on reasonable and nondiscriminatory terms and | ||
conditions with any electric utility, municipally owned utility, or | ||
electric cooperative that has a retail service area for any portion | ||
of the equipment or facilities; and | ||
(3) receive backup, supplemental, or other electric | ||
service for any of the person's or the person's affiliates' | ||
facilities that consume electricity from any electric utility, | ||
municipally owned utility, or electric cooperative that has a | ||
retail service area for any portion of the person's facilities or | ||
equipment that are interconnected regardless of whether those | ||
facilities are in the same retail service area as the location of | ||
the interconnection point. | ||
(c) Backup, supplemental, or other electric service | ||
provided under this section through an interconnection for a | ||
person's electricity-consuming facilities that are connected to | ||
the person's interconnected equipment or facilities does not | ||
constitute a service area encroachment or other violation of law by | ||
the electric utility, municipally owned utility, or electric | ||
cooperative supplying the backup, supplemental, or other electric | ||
service. | ||
SECTION 16. Subchapter D, Chapter 38, Utilities Code, is | ||
amended by adding Sections 38.074, 38.075, 38.076, and 38.077 to | ||
read as follows: | ||
Sec. 38.074. CRITICAL NATURAL GAS FACILITIES AND ENTITIES. | ||
(a) The commission shall collaborate with the Railroad Commission | ||
of Texas to 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 energy emergencies. | ||
(b) The rules must: | ||
(1) ensure that the independent organization | ||
certified under Section 39.151 for the ERCOT power region and each | ||
electric utility, municipally owned utility, and electric | ||
cooperative providing service in the ERCOT power region is provided | ||
with the information required by Section 81.073, Natural Resources | ||
Code; | ||
(2) provide for prioritizing for load-shed purposes | ||
during an energy emergency the facilities and entities designated | ||
under Subsection (a); and | ||
(3) provide discretion to an electric utility, | ||
municipally owned utility, or electric cooperative providing | ||
service in the ERCOT power region to prioritize power delivery and | ||
power restoration among the facilities and entities designated | ||
under Subsection (a) on the utility's or cooperative's systems, as | ||
circumstances require. | ||
Sec. 38.075. 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. | ||
In adopting the rules, the commission shall take into consideration | ||
weather predictions produced by the office of the state | ||
climatologist. | ||
(b) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall: | ||
(1) inspect the facilities of each electric | ||
cooperative, municipally owned utility, and transmission and | ||
distribution utility providing transmission service in the ERCOT | ||
power region for compliance with the reliability standards; | ||
(2) provide the owner of a facility described by | ||
Subdivision (1) 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. | ||
(c) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall prioritize inspections | ||
conducted under Subsection (b)(1) based on risk level, as | ||
determined by the organization. | ||
(d) 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 and | ||
does not remedy that violation within a reasonable period of time. | ||
(e) Notwithstanding any other provision of this subtitle, | ||
the commission shall allow a transmission and distribution utility | ||
to design and operate a load management program for nonresidential | ||
customers to be used where the independent organization certified | ||
under Section 39.151 for the ERCOT power region has declared a Level | ||
2 Emergency or a higher level of emergency or has otherwise directed | ||
the transmission and distribution utility to shed load. A | ||
transmission and distribution utility implementing a load | ||
management program under this subsection shall be permitted to | ||
recover the reasonable and necessary costs of the load management | ||
program under Chapter 36. A load management program operated under | ||
this subsection is not considered a competitive service. | ||
Sec. 38.076. INVOLUNTARY AND VOLUNTARY 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 the independent organization certified | ||
under Section 39.151 for the region during an energy emergency. | ||
(b) The system must provide for allocation of the load | ||
shedding obligation to each electric cooperative, municipally | ||
owned utility, and transmission and distribution utility in | ||
different seasons based on historical seasonal peak demand in the | ||
service territory of 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 voluntary load reduction; and | ||
(2) coordinate with municipalities, businesses, and | ||
customers that consume large amounts of electricity to encourage | ||
voluntary load reduction. | ||
(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. | ||
(f) After each load shedding event, the commission may | ||
conduct an examination of the implementation of load shedding, | ||
including whether each electric cooperative, municipally owned | ||
utility, and transmission and distribution utility complied with | ||
its plan as filed with the commission under Subsection (c)(2). | ||
Sec. 38.077. LOAD SHEDDING EXERCISES. (a) The commission | ||
and the independent organization certified for the ERCOT power | ||
region shall conduct simulated or tabletop 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 | ||
simulated or tabletop exercise is conducted during a summer month | ||
and one simulated or tabletop exercise is conducted during a winter | ||
month. | ||
SECTION 17. Chapter 38, Utilities Code, is amended by | ||
adding Subchapter F to read as follows: | ||
SUBCHAPTER F. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND MAPPING | ||
COMMITTEE | ||
Sec. 38.201. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND | ||
MAPPING COMMITTEE. (a) In this subchapter, "electricity supply | ||
chain" means: | ||
(1) facilities and methods used for producing, | ||
treating, processing, pressurizing, storing, or transporting | ||
natural gas for delivery to electric generation facilities; and | ||
(2) critical infrastructure necessary to maintain | ||
electricity service. | ||
(b) The Texas Electricity Supply Chain Security and Mapping | ||
Committee is established to: | ||
(1) map this state's electricity supply chain; | ||
(2) identify critical infrastructure sources in the | ||
electricity supply chain; | ||
(3) establish best practices to prepare facilities | ||
that provide electric service and natural gas service in the | ||
electricity supply chain to maintain service in an extreme weather | ||
event and recommend oversight and compliance standards for those | ||
facilities; and | ||
(4) designate priority service needs to prepare for, | ||
respond to, and recover from an extreme weather event. | ||
(c) The committee is composed of: | ||
(1) the executive director of the commission; | ||
(2) the executive director of the Railroad Commission | ||
of Texas; | ||
(3) the president and the chief executive officer of | ||
the independent organization certified under Section 39.151 for the | ||
ERCOT power region; and | ||
(4) the chief of the Texas Division of Emergency | ||
Management. | ||
(d) Each member of the committee may designate a personal | ||
representative from the member's organization to represent the | ||
member on the committee. A member is responsible for the acts and | ||
omissions of the designee related to the designee's representation | ||
on the committee. | ||
(e) The executive director of the commission serves as the | ||
chair of the committee. The executive director of the Railroad | ||
Commission of Texas serves as vice chair of the committee. | ||
Sec. 38.202. ADMINISTRATION. (a) The committee shall meet | ||
at least once each calendar quarter at a time determined by the | ||
committee and at the call of the chair. | ||
(b) A member who is an ex officio member from a state agency | ||
shall be reimbursed for actual and necessary expenses in carrying | ||
out committee responsibilities from money appropriated for that | ||
purpose in the agency's budget. Other members of the committee may | ||
receive reimbursement for actual and necessary expenses in carrying | ||
out committee responsibilities from money appropriated for that | ||
purpose. | ||
(c) The commission, the Railroad Commission of Texas, and | ||
the Texas Division of Emergency Management shall provide staff as | ||
necessary to assist the committee in carrying out the committee's | ||
duties and responsibilities. | ||
(d) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall provide staff as necessary | ||
to assist the committee in carrying out the committee's duties and | ||
responsibilities. | ||
(e) Except as otherwise provided by this subchapter, the | ||
committee is not subject to Chapters 2001, 551, and 552, Government | ||
Code. | ||
(f) Information written, produced, collected, assembled, or | ||
maintained under law or in connection with the transaction of | ||
official business by the committee or an officer or employee of the | ||
committee is subject to Section 552.008, Government Code. This | ||
subsection does not apply to the physical locations of critical | ||
facilities, maps created under this subchapter, or proprietary | ||
information created or gathered during the mapping process. | ||
Sec. 38.203. POWERS AND DUTIES OF COMMITTEE. (a) The | ||
committee shall: | ||
(1) map the state's electricity supply chain in order | ||
to designate priority electricity service needs during extreme | ||
weather events; | ||
(2) identify and designate the sources in the | ||
electricity supply chain necessary to operate critical | ||
infrastructure, as defined by Section 421.001, Government Code; | ||
(3) develop a communication system between critical | ||
infrastructure sources, the commission, and the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region to ensure that electricity and natural gas supplies in the | ||
electricity supply chain are prioritized to those sources during an | ||
extreme weather event; and | ||
(4) establish best practices to prepare facilities | ||
that provide electric service and natural gas service in the | ||
electricity supply chain to maintain service in an extreme weather | ||
event and recommend oversight and compliance standards for those | ||
facilities. | ||
(b) The committee shall update the electricity supply chain | ||
map at least once each year. | ||
(c) The commission shall: | ||
(1) create and maintain a database identifying | ||
critical infrastructure sources with priority electricity needs to | ||
be used during an extreme weather event; and | ||
(2) update the database at least once each year. | ||
(d) The information maintained in the database is | ||
confidential under Section 418.181, Government Code, and not | ||
subject to disclosure under Chapter 552, Government Code. | ||
(e) The committee shall provide the Texas Energy | ||
Reliability Council with access to the electricity supply chain | ||
map. | ||
Sec. 38.204. MAPPING REPORT. (a) Not later than January 1, | ||
2022, the committee shall submit a report to the governor, the | ||
lieutenant governor, the speaker of the house of representatives, | ||
the legislature, and the Texas Energy Reliability Council on the | ||
activities and findings of the committee. The report must: | ||
(1) provide an overview of the committee's findings | ||
regarding mapping the electricity supply chain and identifying | ||
sources necessary to operate critical infrastructure; | ||
(2) recommend a clear and thorough communication | ||
system for the commission, the Railroad Commission of Texas, the | ||
Texas Division of Emergency Management, and the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region and critical infrastructure sources in this state to ensure | ||
that electricity supply is prioritized to those sources during | ||
extreme weather events; and | ||
(3) include a list of the established best practices | ||
and recommended oversight and compliance standards adopted under | ||
Section 38.203(a)(4). | ||
(b) The report is public information except for portions | ||
considered confidential under Chapter 552, Government Code, or | ||
other state or federal law. | ||
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. DISPATCHABLE GENERATION. (a) For the | ||
purposes of this section, a generation facility is considered to be | ||
non-dispatchable if the facility's output is controlled primarily | ||
by forces outside of human control. | ||
(b) The commission shall ensure that the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region: | ||
(1) establishes requirements to meet the reliability | ||
needs of the power region; | ||
(2) periodically, but at least annually, determines | ||
the quantity and characteristics of ancillary or reliability | ||
services necessary to ensure appropriate reliability during | ||
extreme heat and extreme cold weather conditions and during times | ||
of low non-dispatchable power production in the power region; | ||
(3) procures ancillary or reliability services on a | ||
competitive basis to ensure appropriate reliability during extreme | ||
heat and extreme cold weather conditions and during times of low | ||
non-dispatchable power production in the power region; | ||
(4) develops appropriate qualification and | ||
performance requirements for providing services under Subdivision | ||
(3), including appropriate penalties for failure to provide the | ||
services; and | ||
(5) sizes the services procured under Subdivision (3) | ||
to prevent prolonged rotating outages due to net load variability | ||
in high demand and low supply scenarios. | ||
(c) The commission shall ensure that: | ||
(1) resources that provide services under Subsection | ||
(b) are dispatchable and able to meet continuous operating | ||
requirements for the season in which the service is procured; | ||
(2) winter resource capability qualifications for a | ||
service described by Subsection (b) include on-site fuel storage, | ||
dual fuel capability, or fuel supply arrangements to ensure winter | ||
performance for several days; and | ||
(3) summer resource capability qualifications for a | ||
service described by Subsection (b) include facilities or | ||
procedures to ensure operation under drought conditions. | ||
Sec. 39.160. WHOLESALE PRICING PROCEDURES. (a) The | ||
commission by rule shall establish an emergency pricing program for | ||
the wholesale electric market. | ||
(b) The emergency pricing program must take effect if the | ||
high system-wide offer cap has been in effect for 12 hours in a | ||
24-hour period after initially reaching the high system-wide offer | ||
cap. The commission by rule shall determine the criteria for the | ||
emergency pricing program to cease. | ||
(c) The emergency pricing program may not allow an emergency | ||
pricing program cap to exceed any nonemergency high system-wide | ||
offer cap. | ||
(d) The commission by rule shall establish an ancillary | ||
services cap to be in effect during the period an emergency pricing | ||
program is in effect. | ||
(e) Any wholesale pricing procedure that has a low | ||
system-wide offer cap may not allow the low system-wide offer cap to | ||
exceed the high system-wide offer cap. | ||
(f) The commission shall review each system-wide offer cap | ||
program adopted by the commission, including the emergency pricing | ||
program, at least once every five years to determine whether to | ||
update aspects of the program. | ||
(g) The emergency pricing program must allow generators to | ||
be reimbursed for reasonable, verifiable operating costs that | ||
exceed the emergency 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) may be located at a customer's point of delivery; | ||
(2) is connected at a voltage less than 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 20. 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 21. Section 121.2015, Utilities Code, is amended by | ||
amending Subsection (a) and adding Subsections (a-1), (c-1), (c-2), | ||
(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 a gas pipeline facility operator must | ||
implement to prepare the gas pipeline facility to maintain service | ||
quality and reliability during extreme weather conditions if the | ||
gas pipeline facility: | ||
(A) directly serves a natural gas electric | ||
generation facility operating solely to provide power to the | ||
electric grid for the ERCOT power region or for the ERCOT power | ||
region and an adjacent power region; and | ||
(B) is included on the electricity supply chain | ||
map created under Section 38.203. | ||
(a-1) In adopting rules under Subsection (a)(3), the | ||
railroad commission shall take into consideration weather | ||
predictions produced by the office of the state climatologist. | ||
(c-1) The railroad commission shall: | ||
(1) inspect gas pipeline facilities described by | ||
Subsection (a)(3) for compliance with rules adopted under | ||
Subsection (a)(3); | ||
(2) provide the owner of a facility described by | ||
Subsection (a)(3) with a reasonable period of time in which to | ||
remedy any violation the railroad commission discovers in an | ||
inspection; and | ||
(3) report to the attorney general any violation that | ||
is not remedied in a reasonable period of time. | ||
(c-2) The railroad commission shall prioritize inspections | ||
conducted under Subsection (c-1)(1) based on risk level, as | ||
determined by the railroad commission. | ||
(d) The railroad commission by rule shall require a gas | ||
pipeline facility operator described by Subsection (a)(3) that | ||
experiences repeated or major weather-related forced interruptions | ||
of service to: | ||
(1) contract with a person who is not an employee of | ||
the operator 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 | ||
pipeline facility described by Subsection (a)(3) 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) if the violation is not remedied in a reasonable | ||
period of time in the manner provided by this subchapter. | ||
SECTION 22. 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 23. 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 24. 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 25. 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 facilities that produce, treat, process, | ||
pressurize, store, or transport natural gas and are included on the | ||
electricity supply chain map created under Section 38.203 and | ||
prepare a weather emergency preparedness report on weatherization | ||
preparedness of those facilities. 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 | ||
electricity supply chain, as mapped under Section 38.203, 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 for the electricity supply chain, as mapped | ||
under Section 38.203. | ||
(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 26. Subchapter E, Chapter 13, Water Code, is | ||
amended by adding Section 13.1394 to read as follows: | ||
Sec. 13.1394. STANDARDS OF EMERGENCY OPERATIONS. (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: | ||
(A) furnishes water service to more than one | ||
customer; and | ||
(B) is not an affected utility under Section | ||
13.1395. | ||
(2) "Emergency operations" means the operation of a | ||
water system during an extended power outage that impacts the | ||
operating affected utility. | ||
(3) "Extended power outage" means a power outage | ||
lasting for more than 24 hours. | ||
(b) An affected utility shall: | ||
(1) ensure the emergency operation of its water system | ||
during an extended power outage at a minimum water pressure of 20 | ||
pounds per square inch, or at a water pressure level approved by the | ||
commission, as soon as safe and practicable following the | ||
occurrence of a natural disaster; and | ||
(2) adopt and submit to the commission for its | ||
approval: | ||
(A) an emergency preparedness plan that | ||
demonstrates the utility's ability to provide the emergency | ||
operations described by Subdivision (1); and | ||
(B) a timeline for implementing the plan | ||
described by Paragraph (A). | ||
(c) The commission shall review an emergency preparedness | ||
plan submitted under Subsection (b). If the commission determines | ||
that the plan is not acceptable, the commission shall recommend | ||
changes to the plan. The commission must make its recommendations | ||
on or before the 90th day after the commission receives the plan. | ||
In accordance with commission rules, an emergency preparedness plan | ||
for a provider of potable water shall provide for one or more of the | ||
following: | ||
(1) the maintenance of automatically starting | ||
auxiliary generators; | ||
(2) the sharing of auxiliary generator capacity with | ||
one or more affected utilities, including through participation in | ||
a statewide mutual aid program; | ||
(3) the negotiation of leasing and contracting | ||
agreements, including emergency mutual aid agreements with other | ||
retail public utilities, exempt utilities, or providers or | ||
conveyors of potable or raw water service, if the agreements | ||
provide for coordination with the division of emergency management | ||
in the governor's office; | ||
(4) the use of portable generators capable of serving | ||
multiple facilities equipped with quick-connect systems; | ||
(5) the use of on-site electrical generation or | ||
distributed generation facilities; | ||
(6) hardening the electric transmission and | ||
distribution system serving the water system; | ||
(7) for existing facilities, the maintenance of direct | ||
engine or right angle drives; | ||
(8) designation of the water system as a critical load | ||
facility or redundant, isolated, or dedicated electrical feeds; | ||
(9) water storage capabilities; | ||
(10) water supplies delivered from outside the service | ||
area of the affected utility; | ||
(11) the ability to provide water through artesian | ||
flows; | ||
(12) redundant interconnectivity between pressure | ||
zones; | ||
(13) emergency water demand rules to maintain | ||
emergency operations; or | ||
(14) any other alternative determined by the | ||
commission to be acceptable. | ||
(d) Each affected utility that supplies, provides, or | ||
conveys raw surface water shall include in its emergency | ||
preparedness plan under Subsection (b) provisions for | ||
demonstrating the capability of each raw water intake pump station, | ||
pump station, and pressure facility to provide raw water service to | ||
its wholesale customers during emergencies. This subsection does | ||
not apply to raw water services that are unnecessary or otherwise | ||
subject to interruption or curtailment during emergencies under a | ||
contract. | ||
(e) The commission shall adopt rules to implement this | ||
section as an alternative to any rule requiring elevated storage. | ||
(f) The commission shall provide an affected utility with | ||
access to the commission's financial, managerial, and technical | ||
contractors to assist the utility in complying with the applicable | ||
emergency preparedness plan submission deadline. | ||
(g) The commission by rule shall create an emergency | ||
preparedness plan template for use by an affected utility when | ||
submitting a plan under this section. The emergency preparedness | ||
plan template shall contain: | ||
(1) a list and explanation of the preparations an | ||
affected utility may make under Subsection (c) for the commission | ||
to approve the utility's emergency preparedness plan; and | ||
(2) a list of all commission rules and standards | ||
pertaining to emergency preparedness plans. | ||
(h) An emergency generator used as part of an approved | ||
emergency preparedness plan under Subsection (c) must be operated | ||
and maintained according to the manufacturer's specifications. | ||
(i) The commission shall inspect each utility to ensure that | ||
the utility complies with the approved plan. | ||
(j) The commission shall consider whether compliance with | ||
this section will cause a significant financial burden on customers | ||
of an affected utility when making recommended changes under | ||
Subsection (c). | ||
(k) An affected utility may adopt and enforce limitations on | ||
water use while the utility is providing emergency operations. | ||
(l) Except as specifically required by this section, | ||
information provided by an affected utility under this section is | ||
confidential and is not subject to disclosure under Chapter 552, | ||
Government Code. | ||
(m) The commission shall coordinate with the utility | ||
commission in the administration of this section. | ||
SECTION 27. The heading to Section 13.1395, Water Code, is | ||
amended to read as follows: | ||
Sec. 13.1395. STANDARDS OF EMERGENCY OPERATIONS IN CERTAIN | ||
COUNTIES. | ||
SECTION 28. Section 13.1395(d), Water Code, is amended to | ||
read as follows: | ||
(d) This subsection does not apply to raw water services | ||
that are unnecessary or otherwise subject to interruption or | ||
curtailment during emergencies under a contract. Each affected | ||
utility that supplies, provides, or conveys surface water shall | ||
include in its emergency preparedness plan under Subsection (b) | ||
provisions: | ||
(1) for the actual installation and maintenance of | ||
automatically starting auxiliary generators or distributive | ||
generation facilities for each raw water intake pump station, water | ||
treatment plant, pump station, and pressure facility necessary to | ||
provide water to its wholesale customers during emergencies; or | ||
(2) that demonstrate the capability of each raw water | ||
intake pump station, water treatment plant, pump station, and | ||
pressure facility to provide water to its wholesale customers | ||
during emergencies through alternative means acceptable to the | ||
commission. | ||
SECTION 29. Section 13.1396, Water Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) This section applies only to an affected utility, as | ||
defined by Section 13.1394 or 13.1395. | ||
SECTION 30. 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 the previous day's highest | ||
temperature did not exceed 28 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. | ||
(b) A retail public utility that is required to possess a | ||
certificate of public convenience and necessity or a district or | ||
affected county that furnishes retail water or sewer utility | ||
service shall not impose late fees or disconnect service for | ||
nonpayment of bills that are due during an extreme weather | ||
emergency until after the emergency is over and shall work with | ||
customers that request to establish a payment schedule for unpaid | ||
bills that are due during the extreme weather emergency. | ||
SECTION 31. 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 | ||
$50,000 for each violation. | ||
(d) The utility 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 32. Section 13.1396(a)(1), Water Code, is repealed. | ||
SECTION 33. (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) of this subsection and using the | ||
methods described by Subdivision (2) of this subsection; and | ||
(4) evaluate the electricity market structure and | ||
pricing mechanisms used in this state, including the ancillary | ||
services market and emergency response services. | ||
(c) The state energy plan prepared under this section must | ||
be submitted to the legislature not later than September 1, 2022. | ||
SECTION 34. The Public Utility Commission of Texas and the | ||
independent organization certified under Section 39.151, Utilities | ||
Code, shall annually 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 35. The Public Utility Commission of Texas shall | ||
complete the first review required by Section 39.160(f), Utilities | ||
Code, as added by this Act, not later than December 31, 2021. | ||
SECTION 36. (a) Not later than November 1, 2021, each | ||
affected utility, as defined by Section 13.1394, Water Code, as | ||
added 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 13.1394, Water | ||
Code, as added by this Act. | ||
(c) Not later than July 1, 2022, or upon final approval by | ||
the commission, each affected utility shall implement the emergency | ||
preparedness plan approved by the Texas Commission on Environmental | ||
Quality under Section 13.1394, Water Code, as added by this Act. | ||
(d) An affected utility, as defined by Section 13.1394, | ||
Water Code, as added by this Act, 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 37. The Texas Electricity Supply Chain Security and | ||
Mapping Committee shall produce the map required under Section | ||
38.203, Utilities Code, as added by this Act, not later than | ||
September 1, 2022. | ||
SECTION 38. Not later than six months after the date the | ||
Texas Electricity Supply Chain Security and Mapping Committee | ||
produces the map required under Section 38.203, Utilities Code, as | ||
added by this Act, the Railroad Commission of Texas shall adopt | ||
rules necessary to implement: | ||
(1) Section 86.044, Natural Resources Code, as added | ||
by this Act; and | ||
(2) Section 121.2015, Utilities Code, as amended by | ||
this Act. | ||
SECTION 39. Not later than six months after the effective | ||
date of this Act, the Public Utility Commission of Texas shall adopt | ||
rules necessary to implement: | ||
(1) Section 35.0021, Utilities Code, as added by this | ||
Act; and | ||
(2) Section 38.075, Utilities Code, as added by this | ||
Act. | ||
SECTION 40. It is the intent of the legislature that this | ||
Act not restrict or amend the sole jurisdiction of the Railroad | ||
Commission of Texas to establish rules or requirements relating to | ||
curtailment orders for facilities and entities in the commission's | ||
jurisdiction under the Natural Resources Code or the Utilities | ||
Code. | ||
SECTION 41. 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 3 passed the Senate on | ||
March 29, 2021, by the following vote: Yeas 31, Nays 0; | ||
May 27, 2021, Senate refused to concur in House amendments and | ||
requested appointment of Conference Committee; May 28, 2021, House | ||
granted request of the Senate; May 30, 2021, Senate adopted | ||
Conference Committee Report by the following vote: Yeas 31, | ||
Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 3 passed the House, with | ||
amendments, on May 24, 2021, by the following vote: Yeas 142, | ||
Nays 1, one present not voting; May 28, 2021, House granted request | ||
of the Senate for appointment of Conference Committee; | ||
May 30, 2021, House adopted Conference Committee Report by the | ||
following vote: Yeas 142, Nays 0, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |