| 1 | 1 | | By: Estes S.B. No. 1230 |
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| 2 | 2 | | (Crownover) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the construction and operation of combined heating and |
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| 8 | 8 | | power facilities in certain municipalities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter Z, Chapter 552, Local Government |
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| 11 | 11 | | Code, is amended by adding Section 552.913 to read as follows: |
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| 12 | 12 | | Sec. 552.913. COMBINED HEATING AND POWER SYSTEMS IN CERTAIN |
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| 13 | 13 | | MUNICIPALITIES. (a) This section applies only to a home-rule |
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| 14 | 14 | | municipality that: |
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| 15 | 15 | | (1) has a population of more than 100,000; |
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| 16 | 16 | | (2) owns and operates an electric utility that is a |
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| 17 | 17 | | member of a municipal power agency; and |
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| 18 | 18 | | (3) is located in a county adjacent to a county with a |
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| 19 | 19 | | population of more than two million. |
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| 20 | 20 | | (b) To the extent this section conflicts with a municipal |
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| 21 | 21 | | charter provision, this section controls. |
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| 22 | 22 | | (c) A municipality may buy, own, construct, maintain, and |
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| 23 | 23 | | operate a combined heating and power system or plant and related |
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| 24 | 24 | | infrastructure. |
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| 25 | 25 | | (d) The governing body of the municipality may designate a |
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| 26 | 26 | | combined heating and power economic development district that |
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| 27 | 27 | | includes territory that: |
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| 28 | 28 | | (1) is within three miles of the combined heating and |
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| 29 | 29 | | power plant; |
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| 30 | 30 | | (2) is wholly located within the corporate boundaries |
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| 31 | 31 | | of the municipality; and |
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| 32 | 32 | | (3) does not have an interstate or federal highway |
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| 33 | 33 | | located within the boundaries of the district on the date the |
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| 34 | 34 | | territory is designated. |
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| 35 | 35 | | (e) The municipality may sell an energy commodity from the |
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| 36 | 36 | | system or plant, including electricity, chilled water, steam, or |
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| 37 | 37 | | gas. The municipality may sell gas only to industrial customers |
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| 38 | 38 | | located in the combined heating and power economic development |
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| 39 | 39 | | district. |
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| 40 | 40 | | (f) The municipality shall assess fees against a municipal |
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| 41 | 41 | | entity selling gas to industrial customers in the combined heating |
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| 42 | 42 | | and power economic district that are substantially the same as the |
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| 43 | 43 | | fees assessed against a gas utility that is not owned by the |
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| 44 | 44 | | municipality for occupation of a municipal right-of-way. |
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| 45 | 45 | | SECTION 2. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2011. |
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