By: Estes S.B. No. 1230
(Crownover)
A BILL TO BE ENTITLED
AN ACT
relating to the construction and operation of combined heating and
power facilities in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 552, Local Government
Code, is amended by adding Section 552.913 to read as follows:
Sec. 552.913. COMBINED HEATING AND POWER SYSTEMS IN CERTAIN
MUNICIPALITIES. (a) This section applies only to a home-rule
municipality that:
(1) has a population of more than 100,000;
(2) owns and operates an electric utility that is a
member of a municipal power agency; and
(3) is located in a county adjacent to a county with a
population of more than two million.
(b) To the extent this section conflicts with a municipal
charter provision, this section controls.
(c) A municipality may buy, own, construct, maintain, and
operate a combined heating and power system or plant and related
infrastructure.
(d) The governing body of the municipality may designate a
combined heating and power economic development district that
includes territory that:
(1) is within three miles of the combined heating and
power plant;
(2) is wholly located within the corporate boundaries
of the municipality; and
(3) does not have an interstate or federal highway
located within the boundaries of the district on the date the
territory is designated.
(e) The municipality may sell an energy commodity from the
system or plant, including electricity, chilled water, steam, or
gas. The municipality may sell gas only to industrial customers
located in the combined heating and power economic development
district.
(f) The municipality shall assess fees against a municipal
entity selling gas to industrial customers in the combined heating
and power economic district that are substantially the same as the
fees assessed against a gas utility that is not owned by the
municipality for occupation of a municipal right-of-way.
SECTION 2. 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, 2011.