Texas 2013 83rd Regular

Texas House Bill HB7 House Committee Report / Bill

Filed 02/01/2025

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                    83R21147 JJT-F
 By: Darby, Pitts, Gonzales, Menendez, H.B. No. 7
 Turner of Harris, et al.
 Substitute the following for H.B. No. 7:
 By:  Darby C.S.H.B. No. 7


 A BILL TO BE ENTITLED
 AN ACT
 relating to the amounts, availability, and use of certain
 statutorily dedicated revenue and accounts; reducing or affecting
 the amounts or rates of certain statutorily dedicated fees and
 assessments.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Chapter 322, Government Code, is amended by
 adding Section 322.024 to read as follows:
 Sec. 322.024.  REDUCTION OF RELIANCE ON AVAILABLE DEDICATED
 REVENUE FOR BUDGET CERTIFICATION.  (a) In this section, "available
 dedicated revenue" means revenue that Section 403.095 makes
 available for certification under Section 403.121.
 (b)  The board shall:
 (1)  develop and implement a process to review:
 (A)  new legislative enactments that create
 dedicated revenue; and
 (B)  the appropriation and accumulation of
 dedicated revenue and available dedicated revenue;
 (2)  develop and implement tools to evaluate the use of
 available dedicated revenue for state government financing and
 budgeting; and
 (3)  develop specific and detailed recommendations on
 actions the legislature may reasonably take to reduce state
 government's reliance on available dedicated revenue for the
 purposes of certification under Section 403.121 as authorized by
 Section 403.095.
 (c)  The board shall incorporate into the board's budget
 recommendations appropriate measures to reduce state government's
 reliance on available dedicated revenue for the purposes of
 certification under Section 403.121 as authorized by Section
 403.095 and shall include with the budget recommendations plans for
 further reducing state government's reliance on available
 dedicated revenue for those purposes for the succeeding six years.
 (d)  The board shall consult the comptroller as necessary to
 accomplish the objectives of Subsections (b) and (c).
 SECTION 2.  Subchapter F, Chapter 403, Government Code, is
 amended by adding Section 403.0956 to read as follows:
 Sec. 403.0956.  REALLOCATION OF INTEREST ACCRUED ON CERTAIN
 DEDICATED REVENUE. Notwithstanding any other law, all interest or
 other earnings that accrue on all revenue held in an account in the
 general revenue fund any part of which Section 403.095 makes
 available for certification under Section 403.121 are available for
 any general governmental purpose, and the comptroller shall deposit
 the interest and earnings to the credit of the general revenue fund.
 This section does not apply to:
 (1)  interest or earnings on revenue deposited in
 accordance with Section 51.008, Education Code; or
 (2)  interest or earnings on deposits of federal money
 the diversion of which is specifically excluded by federal law.
 SECTION 3.  Sections 361.013(a) and (f), Health and Safety
 Code, are amended to read as follows:
 (a)  Except as provided by Subsections (e) through (i), the
 commission shall charge a fee on all solid waste that is disposed of
 within this state. The fee is 94 cents [$1.25] per ton received for
 disposal at a municipal solid waste landfill if the solid waste is
 measured by weight. If the solid waste is measured by volume, the
 fee for compacted solid waste is 30 [40] cents per cubic yard and
 the fee [or,] for uncompacted solid waste is 19 [, 25] cents per
 cubic yard received for disposal at a municipal solid waste
 landfill. The commission shall set the fee for sludge or similar
 waste applied to the land for beneficial use on a dry weight basis
 and for solid waste received at an incinerator or a shredding and
 composting facility at half the fee set for solid waste received for
 disposal at a landfill. The commission may charge comparable fees
 for other means of solid waste disposal that are used.
 (f)  The commission may not charge a fee under Subsection (a)
 for source separated [yard waste] materials that are processed
 [composted] at a composting and mulch processing facility,
 including a composting and mulch processing facility located at a
 permitted landfill site. The commission shall credit any fee
 payment due under Subsection (a) for any material received and
 processed [converted] to compost or mulch product at the facility
 [for composting through a composting process]. Any compost or
 mulch product that is produced at a [for] composting and mulch
 processing facility that is [not] used in the operation of the
 facility or is disposed of [as compost and is deposited] in a
 landfill is not exempt from the fee.
 SECTION 4.  Sections 361.014(a) and (b), Health and Safety
 Code, are amended to read as follows:
 (a)  Revenue received by the commission under Section
 361.013 shall be deposited in the state treasury to the credit of
 the commission. Of that [Half of the] revenue, 66.7 percent is
 dedicated to the commission's municipal solid waste permitting
 programs, [and] enforcement programs, site remediation programs,
 [and related] support activities related to those programs, and [to
 pay for] activities that will enhance the state's solid waste
 management program, including:
 (1)  provision of funds for the municipal solid waste
 management planning fund and the municipal solid waste resource
 recovery applied research and technical assistance fund
 established by the Comprehensive Municipal Solid Waste Management,
 Resource Recovery, and Conservation Act (Chapter 363);
 (2)  conduct of demonstration projects and studies to
 help local governments of various populations and the private
 sector to convert to accounting systems and set rates that reflect
 the full costs of providing waste management services and are
 proportionate to the amount of waste generated;
 (3)  provision of technical assistance to local
 governments concerning solid waste management;
 (4)  establishment of a solid waste resource center in
 the commission and an office of waste minimization and recycling;
 (5)  provision of supplemental funding to local
 governments for the enforcement of this chapter, the Texas Litter
 Abatement Act (Chapter 365), and Chapters 391 and 683,
 Transportation Code;
 (6)  conduct of a statewide public awareness program
 concerning solid waste management;
 (7)  provision of supplemental funds for other state
 agencies with responsibilities concerning solid waste management,
 recycling, and other initiatives with the purpose of diverting
 recyclable waste from landfills;
 (8)  conduct of research to promote the development and
 stimulation of markets for recycled waste products;
 (9)  creation of a state municipal solid waste
 superfund, from funds appropriated, for:
 (A)  the cleanup of unauthorized tire dumps and
 solid waste dumps for which a responsible party cannot be located or
 is not immediately financially able to provide the cleanup;
 (B)  the cleanup or proper closure of abandoned or
 contaminated municipal solid waste sites for which a responsible
 party is not immediately financially able to provide the cleanup;
 and
 (C)  remediation, cleanup, and proper closure of
 unauthorized recycling sites for which a responsible party is not
 immediately financially able to perform the remediation, cleanup,
 and closure;
 (10)  provision of funds to mitigate the economic and
 environmental impacts of lead-acid battery recycling activities on
 local governments; and
 (11)  provision of funds for the conduct of research by
 a public or private entity to assist the state in developing new
 technologies and methods to reduce the amount of municipal waste
 disposed of in landfills.
 (b)  Of [Half of] the revenue received by the commission
 under Section 361.013, 33.3 percent is dedicated to local and
 regional solid waste projects consistent with regional plans
 approved by the commission in accordance with this chapter and to
 update and maintain those plans. Those revenues shall be allocated
 to municipal solid waste geographic planning regions for use by
 local governments and regional planning commissions according to a
 formula established by the commission that takes into account
 population, area, solid waste fee generation, and public health
 needs. Each planning region shall issue a biennial report to the
 legislature detailing how the revenue is spent. A project or
 service funded under this subsection must promote cooperation
 between public and private entities and may not be otherwise
 readily available or create a competitive advantage over a private
 industry that provides recycling or solid waste services.
 SECTION 5.  Section 361.133, Health and Safety Code, is
 amended by adding Subsection (c-1) to read as follows:
 (c-1)  Notwithstanding Subsection (c), money in the account
 attributable to fees imposed under Section 361.138 may be used for
 environmental remediation at the site of a closed battery recycling
 facility located in the municipal boundaries of a municipality if
 the municipality submits to the commission a voluntary compliance
 plan for the site and is paying or has paid for part of the costs of
 the environmental remediation of the site. This subsection expires
 September 30, 2014.
 SECTION 6.  Section 771.0711(c), Health and Safety Code, is
 amended to read as follows:
 (c)  Money collected under Subsection (b) may be used only
 for services related to 9-1-1 services, including automatic number
 identification and automatic location information services, or as
 authorized by Section 771.079(c). Not later than the 15th day after
 the end of the month in which the money is collected, the commission
 shall distribute to each emergency communication district that does
 not participate in the state system a portion of the money that
 bears the same proportion to the total amount collected that the
 population of the area served by the district bears to the
 population of the state. The remaining money collected under
 Subsection (b) shall be deposited to the 9-1-1 services fee
 account.
 SECTION 7.  Section 771.079(c), Health and Safety Code, is
 amended to read as follows:
 (c)  Money in the account may be appropriated only to:
 (1)  the commission for planning, development,
 provision, or enhancement of the effectiveness of 9-1-1 service or
 for contracts with regional planning commissions for 9-1-1 service;
 or
 (2)  the Texas A&M Forest Service for providing
 assistance to volunteer fire departments under Subchapter G,
 Chapter 614, Government Code.
 SECTION 8.  Section 780.003(a), Health and Safety Code, is
 amended to read as follows:
 (a)  The designated trauma facility and emergency medical
 services account is created as a dedicated account in the general
 revenue fund of the state treasury. Money in the account may be
 appropriated only to:
 (1)  the department for the purposes described by
 Section 780.004; or
 (2)  the Texas Higher Education Coordinating Board for
 graduate-level:
 (A)  medical education programs; or
 (B)  nursing education programs.
 SECTION 9.  Section 2007.002, Insurance Code, is amended to
 read as follows:
 Sec. 2007.002.  ASSESSMENT. The comptroller shall assess
 against all insurers to which this chapter applies amounts for each
 state fiscal year necessary, as determined by the commissioner, to
 collect a combined total equal to the total amount that the General
 Appropriations Act appropriates from the volunteer fire department
 assistance fund account in the general revenue fund for that state
 fiscal year [of $30 million for each 12-month period].
 SECTION 10.  Section 81.067(c), Natural Resources Code, is
 amended to read as follows:
 (c)  The fund consists of:
 (1)  proceeds from bonds and other financial security
 required by this chapter and benefits under well-specific plugging
 insurance policies described by Section 91.104(c) that are paid to
 the state as contingent beneficiary of the policies, subject to the
 refund provisions of Section 91.1091, if applicable;
 (2)  private contributions, including contributions
 made under Section 89.084;
 (3)  expenses collected under Section 89.083;
 (4)  fees imposed under Section 85.2021;
 (5)  costs recovered under Section 91.457 or 91.459;
 (6)  proceeds collected under Sections 89.085 and
 91.115;
 (7)  interest earned on the funds deposited in the
 fund;
 (8)  oil and gas waste hauler permit application fees
 collected under Section 29.015, Water Code;
 (9)  costs recovered under Section 91.113(f);
 (10)  hazardous oil and gas waste generation fees
 collected under Section 91.605;
 (11)  oil-field cleanup regulatory fees on oil
 collected under Section 81.116;
 (12)  oil-field cleanup regulatory fees on gas
 collected under Section 81.117;
 (13)  fees for a reissued certificate collected under
 Section 91.707;
 (14)  fees collected under Section 91.1013;
 (15)  fees collected under Section 89.088;
 (16)  fees collected under Section 91.142;
 (17)  fees collected under Section 91.654;
 (18)  costs recovered under Sections 91.656 and 91.657;
 (19)  two-thirds of the fees collected under Section
 81.0521;
 (20)  fees collected under Sections 89.024 and 89.026;
 (21)  legislative appropriations; [and]
 (22)  any surcharges collected under Section 81.070;
 and
 (23)  fees collected under Section 91.0115.
 SECTION 11.  Section 81.068, Natural Resources Code, is
 amended to read as follows:
 Sec. 81.068.  PURPOSE OF OIL AND GAS REGULATION AND CLEANUP
 FUND.  Money in the oil and gas regulation and cleanup fund may be
 used by the commission or its employees or agents for any purpose
 related to the regulation of oil and gas development, including oil
 and gas monitoring and inspections, oil and gas remediation, oil
 and gas well plugging, public information and services related to
 those activities, the study and evaluation of electronic access to
 geologic data and surface casing depths necessary to protect usable
 groundwater in this state, and administrative costs and state
 benefits for personnel involved in those activities.
 SECTION 12.  Section 91.0115, Natural Resources Code, is
 amended by amending Subsection (c) and adding Subsection (d) to
 read as follows:
 (c)  The commission shall charge a fee not to exceed $75, in
 addition to the fee required by Subsection (b), for processing a
 request to expedite a letter of determination.  [Money collected
 under this subsection may be used to study and evaluate electronic
 access to geologic data and surface casing depths under Section
 91.020.]
 (d)  The fees collected under this section shall be deposited
 in the oil and gas regulation and cleanup fund.
 SECTION 13.  Section 501.138(b-2), Transportation Code, is
 amended to read as follows:
 (b-2)  The comptroller shall establish a record of the amount
 of the fees deposited to the credit of the Texas Mobility Fund under
 Subsection (b-1) and shall monitor transfers to and from the Texas
 emissions reduction plan fund. On or before the fifth workday of
 each month, the comptroller may require that the department [shall]
 remit to the comptroller for deposit to the credit of the Texas
 emissions reduction plan fund an amount of money, not to exceed
 [equal to] the amount of the fees deposited by the comptroller to
 the credit of the Texas Mobility Fund under Subsection (b-1) in the
 preceding month, the comptroller determines is necessary to meet
 amounts appropriated from the Texas emissions reduction plan fund
 or, after consultation with the Texas Commission on Environmental
 Quality, if a fee is imposed on stationary sources in a county
 located in a nonattainment area as provided by 42 U.S.C. Section
 7511d, an amount of money not to exceed the amount of the total of
 the additional $5 collected in fees that is attributable to
 applicants for titles, other than the state or political
 subdivisions of the state, who reside in a county located in a
 nonattainment area or in an affected county, as described by
 Subsection (a)(1).  The department shall use for remittance to the
 comptroller as required by this subsection money in the state
 highway fund that is not required to be used for a purpose specified
 by Section 7-a, Article VIII, Texas Constitution, and may not use
 for that remittance money received by this state under the
 congestion mitigation and air quality improvement program
 established under 23 U.S.C. Section 149. The Texas Transportation
 Commission may designate for congestion mitigation projects or for
 deposit to the Texas rail relocation fund eligible amounts retained
 in the state highway fund because the amounts were not required to
 be remitted under this subsection.
 SECTION 14.  Subchapter G, Chapter 504, Transportation Code,
 is amended by adding Section 504.6012 to read as follows:
 Sec. 504.6012.  ELIMINATION OF DEDICATED REVENUE ACCOUNTS;
 REVENUES IN TRUST. (a) Notwithstanding any other provision of this
 subchapter, not later than September 30, 2013, the comptroller
 shall eliminate all dedicated accounts established for specialty
 license plates under this subchapter and shall set aside the
 balances of those dedicated accounts so that the balances may be
 appropriated only for the purposes intended as provided by the
 dedications.
 (b)  On and after September 1, 2013, the portion of a fee
 payable under this subchapter that is designated for deposit to a
 dedicated account shall be paid instead to the credit of an account
 in a trust fund created by the comptroller outside the general
 revenue fund. The comptroller shall administer the trust fund and
 accounts and may allocate the corpus and earnings on each account
 only in accordance with the dedications of the revenue deposited to
 the trust fund accounts.
 SECTION 15.  Section 17.007, Utilities Code, is amended to
 read as follows:
 Sec. 17.007.  ELIGIBILITY PROCESS FOR CUSTOMER SERVICE
 DISCOUNTS. The commission by rule shall provide for an integrated
 eligibility process for customer service discounts, including
 discounts under Sections 39.9035 [39.903] and 55.015.
 SECTION 16.  Section 39.002, Utilities Code, is amended to
 read as follows:
 Sec. 39.002.  APPLICABILITY.  This chapter, other than
 Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, 39.904,
 39.9051, 39.9052, and 39.914(e), does not apply to a municipally
 owned utility or an electric cooperative. Sections 39.157(e),
 39.203, and 39.904, however, apply only to a municipally owned
 utility or an electric cooperative that is offering customer
 choice. If there is a conflict between the specific provisions of
 this chapter and any other provisions of this title, except for
 Chapters 40 and 41, the provisions of this chapter control.
 SECTION 17.  Subchapter Z, Chapter 39, Utilities Code, is
 amended by amending Section 39.903 and adding Section 39.9035 to
 read as follows:
 Sec. 39.903.  SYSTEM BENEFIT FUND. (a)  The system benefit
 fund is an account in the general revenue fund.  Money in the
 account may be appropriated only for the purposes provided by this
 section [or other law].  Interest earned on the system benefit fund
 shall be credited to the fund.  Section 403.095, Government Code,
 does not apply to the system benefit fund.
 (b)  The system benefit fund is financed by a nonbypassable
 system benefit fund fee set by the commission in an amount not to
 exceed two [65] cents per megawatt hour. The system benefit fund
 fee is allocated to customers based on the amount of kilowatt hours
 used.
 (c)  The nonbypassable system benefit fund fee may not be
 imposed on the retail electric customers of a municipally owned
 utility or electric cooperative before the sixth month preceding
 the date on which the utility or cooperative implements customer
 choice. Money distributed from the system benefit fund to a
 municipally owned utility or an electric cooperative shall be
 proportional to the nonbypassable fee paid by the municipally owned
 utility or the electric cooperative[, subject to the reimbursement
 provided by Subsection (i)]. On request by a municipally owned
 utility or electric cooperative, the commission shall reduce the
 nonbypassable fee imposed on retail electric customers served by
 the municipally owned utility or electric cooperative by an amount
 equal to the amount provided by the municipally owned utility or
 electric cooperative or its ratepayers for [local low-income
 programs and] local programs that educate customers about the
 retail electric market in a neutral and nonpromotional manner. The
 commission shall adopt rules providing for reimbursements from
 appropriated system benefit fund money for activities authorized
 for funding under this section.
 (d)  The commission shall annually review and approve system
 benefit fund accounts, projected revenue requirements, and
 proposed nonbypassable fees. The commission shall report to the
 electric utility restructuring legislative oversight committee if
 the system benefit fund fee is insufficient to fund the purposes set
 forth in Subsection (e) to the extent required by this section.
 (e)  Money in the system benefit fund may be appropriated to
 provide funding solely for the following regulatory purposes [, in
 the following order of priority]:
 (1)  [programs to:
 [(A)     assist low-income electric customers by
 providing the 10 percent reduced rate prescribed by Subsection (h);
 and
 [(B)     provide one-time bill payment assistance to
 electric customers who are or who have in their households one or
 more seriously ill or disabled low-income persons and who have been
 threatened with disconnection for nonpayment;
 [(2)]  customer education programs;
 (2)  [,] administrative expenses incurred by the
 commission in implementing and administering this chapter;
 (3)  [, and] expenses incurred by the office under this
 chapter;
 (4) [(3)]  programs to assist low-income electric
 customers by providing weatherization or other [the targeted]
 energy efficiency programs [described by Subsection (f)(2);
 [(4)     programs to assist low-income electric customers
 by providing the 20 percent reduced rate prescribed by Subsection
 (h)]; and
 (5)  reimbursement to the commission and the Health and
 Human Services Commission for expenses incurred in the
 implementation and administration of an integrated eligibility
 process created under Section 17.007 for customer service discounts
 relating to retail electric service, including outreach expenses
 the commission determines are reasonable and necessary.
 (f)  The legislature may appropriate from the system benefit
 fund not more than $50 million each state fiscal biennium for the
 purposes of Subsection (e)(4).  Money appropriated from the system
 benefit fund for the purposes of Subsection (e)(4) must be
 transferred to the low-income electric customers program fund for
 disbursement under Section 39.9035.
 Sec. 39.9035.  LOW-INCOME ELECTRIC CUSTOMERS PROGRAM FUND.
 (a)  In this section, "critical care residential customer" means a
 residential customer who has a person permanently residing in the
 customer's home who is diagnosed by a physician as being dependent
 on an electric-powered medical device to sustain life.
 (b)  The commission shall adopt and enforce rules requiring
 transmission and distribution utilities to establish a low-income
 electric customers program fund under commission oversight. The
 rules must provide for:
 (1)  the fund to be established as a trust fund outside
 of the state treasury;
 (2)  the fund to be held by an administrator selected by
 the transmission and distribution utilities in accordance with
 standards adopted by the commission; and
 (3)  any interest earned on money in the fund to be
 credited to the fund.
 (c)  The administrator serves as trustee of the fund for the
 benefit of low-income electric customer programs described by this
 section, and in accordance with commission rules, the administrator
 may make any payments or reimbursements from the fund to further the
 programs. Commission rules must prescribe the maximum percentage
 of money available in the fund that may be used for the expenses of
 administering the fund and for annual independent auditing of the
 fund and expenditures and other transactions related to the fund.
 The commission or its agents may at any time examine any records
 related to the fund or investigate any fund-related expenditures or
 expenses. The administrator and each transmission and distribution
 utility shall fully cooperate with any investigation regarding the
 fund conducted by the commission or its agents.
 (d)  The commission by rule shall impose a nonbypassable
 low-income electric customers program fund fee to be set by the
 commission in an amount not to exceed 50 cents per megawatt hour,
 allocated to customers based on the amount of kilowatt hours used.
 (e)  The commission shall provide for a nonbypassable fee in
 the same amount as the fee imposed under Subsection (d) to be
 imposed on the retail electric customers of a municipally owned
 utility or electric cooperative beginning on the first day of the
 sixth month preceding the date on which the utility or cooperative
 implements customer choice.
 (f)  Commission rules adopted under this section must
 provide that the low-income electric customers program fund fees
 collected for the programs described by this section are collected
 through the rates of the transmission and distribution service
 providers and deposited into the low-income electric customers
 program fund.
 (g)  Except as provided by Subsection (h), money in the
 low-income electric customers program fund may be spent only for
 the following regulatory purposes and must be allocated as follows:
 (1)  not more than 96 percent of the money available in
 the fund must be used to provide a 15 percent reduced rate for
 low-income households; and
 (2)  not more than 4 percent of the money available in
 the fund must be used for bill payment assistance for critical care
 residential customers with total household incomes not to exceed
 400 percent of the federal poverty guidelines.
 (h)  Only money appropriated for the purposes of Section
 39.903(e)(4) and transferred to the fund may be used to finance
 low-income electric customer weatherization programs under this
 section.  The programs must be operated by a statewide network of
 federal weatherization program providers under federal
 weatherization program guidelines and may include related
 low-income energy efficiency programs.
 (i) [(f)     Notwithstanding Section 39.106(b), the commission
 shall adopt rules regarding programs to assist low-income electric
 customers on the introduction of customer choice. The programs may
 not be targeted to areas served by municipally owned utilities or
 electric cooperatives that have not adopted customer choice. The
 programs shall include:
 [(1)     reduced electric rates as provided by Subsections
 (h)-(l); and
 [(2)     targeted energy efficiency programs to be
 administered by the Texas Department of Housing and Community
 Affairs in coordination with existing weatherization programs.
 [(g)]  Until customer choice is introduced in a power region,
 an electric utility may not reduce, in any manner, programs already
 offered to assist low-income electric customers.
 (j) [(h)]  The commission shall adopt rules for a retail
 electric provider to determine a reduced rate for eligible
 customers to be discounted off the standard retail service package
 as approved by the commission under Section 39.106 and shall
 require a retail electric provider to apply the same reduction to
 any rate plan under which an eligible low-income electric customer
 is receiving service [, or the price to beat established by Section
 39.202, whichever is lower].  Municipally owned utilities and
 electric cooperatives shall establish a reduced rate for eligible
 customers to be discounted off the standard retail service package
 established under Section 40.053 or 41.053, as appropriate.  The
 reduced rate for a retail electric provider shall result in a total
 charge for each billing period that is at least 15 [10] percent
 [and, if sufficient money in the    system benefit fund is available,
 up to 20 percent,] lower than the amount the customer would
 otherwise be charged for each billing period.  To the extent the
 low-income electric customers program [system benefit] fund is
 insufficient to pay for [fund] the 15 [initial 10] percent rate
 reduction, the commission may increase the fee to an amount of not
 more than 50 [65] cents per megawatt hour, as provided by Subsection
 (d) [(b)].  If the fee is set at 50 [65] cents per megawatt hour or
 if the commission determines that revenues anticipated to be due
 for deposit to the fund are [appropriations are] insufficient to
 pay for [fund] the 15 [10] percent rate reduction, the commission
 shall [may] reduce the rate of the reduction to less than 15 [10]
 percent.  For a municipally owned utility or electric cooperative,
 the reduced rate shall be equal to an amount that can be fully
 funded by that portion of the nonbypassable fee proceeds paid by the
 municipally owned utility or electric cooperative that is allocated
 to the utility or cooperative by the commission under Subsection
 (g) [(e)] for programs for low-income customers of the utility or
 cooperative.  The reduced rate for municipally owned utilities and
 electric cooperatives under this section is in addition to any rate
 reduction that may result from local programs for low-income
 customers of the municipally owned utilities or electric
 cooperatives.
 (k) [(i)]  A retail electric provider, municipally owned
 utility, or electric cooperative seeking reimbursement from the
 low-income electric customers program [system benefit] fund may not
 charge an eligible low-income customer a rate higher than the
 appropriate rate determined under Subsection (j) [(h)].
 Commission rules must provide for [A retail electric provider not
 subject to the price to beat, or] a municipally owned utility or
 electric cooperative subject to the nonbypassable fee under
 Subsection (e) to [(c), shall] be reimbursed from the [system
 benefit] fund for the difference between the reduced rate and the
 rate established under [Section 39.106 or, as appropriate, the rate
 established under] Section 40.053 or 41.053, as appropriate. A
 retail electric provider [who is subject to the price to beat] shall
 be reimbursed from the [system benefit] fund for the difference
 between the reduced rate and the rate plan under which the customer
 is receiving service [the price to beat]. The commission shall
 adopt rules providing for the reimbursement.
 (l) [(j)]  The commission shall adopt rules providing for
 methods of enrolling customers eligible to receive the reduced
 rates determined under Subsection (j) [(h)]. The rules must
 provide for automatic enrollment as one enrollment option. The
 Health and [Texas Department of] Human Services Commission, on
 request of the commission, shall assist in the adoption and
 implementation of these rules. The commission and the Health and
 [Texas Department of] Human Services Commission shall enter into a
 memorandum of understanding establishing the respective duties of
 the agencies [commission and the department] in relation to the
 automatic enrollment.
 (m) [(j-1)]  The commission shall adopt rules governing the
 bill payment assistance program provided under Subsection (g)(2)
 [(e)(1)(B)].  The rules must provide that a customer is eligible to
 receive the assistance only if the assistance is necessary to
 prevent the disconnection of service for nonpayment of bills for a
 critical care residential customer [and the electric customer is or
 has in the customer's household one or more seriously ill or
 disabled low-income persons whose health or safety may be injured
 by the disconnection].  The commission may prescribe the
 documentation necessary to demonstrate eligibility for the
 assistance and may establish additional eligibility criteria.  The
 Health and Human Services Commission, on request of the commission,
 shall assist in the adoption and implementation of these rules.
 (n) [(k)]  A retail electric provider is prohibited from
 charging the customer a fee for participation in the reduced rate
 program.
 (o)  Notwithstanding Subsections (d), (e), (f), and (j), the
 low-income electric customers program fund fee may not be imposed
 after August 31, 2023.  After that date, the commission and the
 administrator shall undertake to continue the low-income electric
 customers programs described by this section until the balance of
 the fund is exhausted.
 [(l)     For the purposes of this section, a "low-income
 electric customer" is an electric customer:
 [(1)     whose household income is not more than 125
 percent of the federal poverty guidelines; or
 [(2)     who receives food stamps from the Texas
 Department of Human Services or medical assistance from a state
 agency administering a part of the medical assistance program.]
 SECTION 18.  Section 39.905(f), Utilities Code, is amended
 to read as follows:
 (f)  Unless funding is provided under Section 39.9035
 [39.903], each unbundled transmission and distribution utility
 shall include in its energy efficiency plan a weatherization and
 [targeted] low-income energy efficiency program as described by
 Section 39.9035(h) [39.903(f)(2)], and the savings achieved by the
 program shall count toward the transmission and distribution
 utility's energy efficiency goal.  The commission shall determine
 the appropriate level of funding to be allocated to both the
 required weatherization programs [targeted] and standard offer
 low-income energy efficiency programs in each unbundled
 transmission and distribution utility service area.  The level of
 funding for the required weatherization programs and low-income
 energy efficiency programs shall be provided from money approved by
 the commission for the transmission and distribution utility's
 energy efficiency programs.  The commission shall ensure that
 annual expenditures for the required weatherization programs and
 [targeted] low-income energy efficiency programs of each unbundled
 transmission and distribution utility are not less than 10 percent
 of the transmission and distribution utility's energy efficiency
 budget for the year.  A required weatherization program or a
 [targeted] low-income energy efficiency program must comply with
 the same audit requirements that apply to federal weatherization
 subrecipients.  In an energy efficiency cost recovery factor
 proceeding related to expenditures under this subsection, the
 commission shall make findings of fact regarding whether the
 utility meets requirements imposed under this subsection.  The
 state agency that administers the federal weatherization
 assistance program shall provide reports as required by the
 commission to provide the most current information available on
 energy and peak demand savings achieved in each transmission and
 distribution utility service area.  The agency shall participate in
 energy efficiency cost recovery factor proceedings related to
 expenditures under this subsection to ensure that the required
 weatherization programs and [targeted] low-income weatherization
 programs are consistent with federal weatherization programs and
 adequately funded.
 SECTION 19.  Section 40.001(a), Utilities Code, is amended
 to read as follows:
 (a)  Notwithstanding any other provision of law, except
 Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, and 39.904,
 this chapter governs the transition to and the establishment of a
 fully competitive electric power industry for municipally owned
 utilities. With respect to the regulation of municipally owned
 utilities, this chapter controls over any other provision of this
 title, except for sections in which the term "municipally owned
 utility" is specifically used.
 SECTION 20.  Section 40.004, Utilities Code, is amended to
 read as follows:
 Sec. 40.004.  JURISDICTION OF COMMISSION. Except as
 specifically otherwise provided in this chapter, the commission has
 jurisdiction over municipally owned utilities only for the
 following purposes:
 (1)  to regulate wholesale transmission rates and
 service, including terms of access, to the extent provided by
 Subchapter A, Chapter 35;
 (2)  to regulate certification of retail service areas
 to the extent provided by Chapter 37;
 (3)  to regulate rates on appeal under Subchapters D
 and E, Chapter 33, subject to Section 40.051(c);
 (4)  to establish a code of conduct as provided by
 Section 39.157(e) applicable to anticompetitive activities and to
 affiliate activities limited to structurally unbundled affiliates
 of municipally owned utilities, subject to Section 40.054;
 (5)  to establish terms and conditions for open access
 to transmission and distribution facilities for municipally owned
 utilities providing customer choice, as provided by Section 39.203;
 (6)  to require collection of the nonbypassable fees
 [fee] established under Section 39.903(b) and Section 39.9035(e);
 (7)  [and] to administer the renewable energy credits
 program under Section 39.904(b) and the natural gas energy credits
 program under Section 39.9044(b); and
 (8) [(7)]  to require reports of municipally owned
 utility operations only to the extent necessary to:
 (A)  enable the commission to determine the
 aggregate load and energy requirements of the state and the
 resources available to serve that load; or
 (B)  enable the commission to determine
 information relating to market power as provided by Section 39.155.
 SECTION 21.  Section 41.001, Utilities Code, is amended to
 read as follows:
 Sec. 41.001.  APPLICABLE LAW. Notwithstanding any other
 provision of law, except Sections 39.155, 39.157(e), 39.203,
 39.903, 39.9035, and 39.904, this chapter governs the transition to
 and the establishment of a fully competitive electric power
 industry for electric cooperatives. Regarding the regulation of
 electric cooperatives, this chapter shall control over any other
 provision of this title, except for sections in which the term
 "electric cooperative" is specifically used.
 SECTION 22.  Subchapter I, Chapter 26, Water Code, is
 amended by adding Section 26.35745 to read as follows:
 Sec. 26.35745.  REPORT ON CORRECTIVE ACTIONS FOR PETROLEUM
 CONTAMINATED SITES AND FEES NECESSARY TO CONCLUDE PROGRAM. (a) The
 commission annually shall prepare a report regarding the status of
 corrective actions for sites reported to the commission under this
 subchapter as having had a release needing corrective action. The
 commission must issue the report to the legislature on or before
 November 1 of each year.
 (b)  Regarding sites reported to the commission under this
 subchapter as having had a release needing corrective action on or
 before December 22, 1998, and that remain in the commission's PST
 State-Lead Program on September 1, 2013, the report must include:
 (1)  the total number of sites;
 (2)  the total number of sites for which corrective
 action is ongoing;
 (3)  the total number of sites monitored;
 (4)  the projected costs of the corrective actions;
 (5)  the projected costs of monitoring;
 (6)  a projected timeline for issuing closure letters
 under this subchapter for all of the sites; and
 (7)  for each site, the corrective action activities
 proposed and completed during the preceding state fiscal year.
 (c)  Regarding sites reported to the commission under this
 subchapter as having had a release needing corrective action after
 December 22, 1998, for which the commission has elected to assume
 responsibility for undertaking corrective action under this
 subchapter, the report must include:
 (1)  the current status of each site;
 (2)  the costs associated with the corrective action
 activities performed during the preceding state fiscal year for the
 sites;
 (3)  amounts recovered under Section 26.355 related to
 the sites; and
 (4)  enforcement actions taken against owners and
 operators related to those sites.
 (d)  The commission shall investigate the amount of fees that
 would be necessary to cover the costs necessary to conclude the
 programs and activities under this subchapter before September 1,
 2021. The commission shall include in the annual report under this
 section the conclusions of the investigation and the commission's
 recommendations regarding the fees and programs and activities.
 (e)  This section expires September 1, 2021.
 SECTION 23.  The Public Utility Commission of Texas shall
 adopt or revise, as necessary to implement this Act, rules
 governing the system benefit fund and the low-income electric
 customers program fund under Section 39.903, Utilities Code, as
 amended by this Act, and Section 39.9035, Utilities Code, as added
 by this Act, not later than January 1, 2014.
 SECTION 24.  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, 2013.