| 1 | 1 | | 87R10708 JXC-D |
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| 2 | 2 | | By: Davis H.B. No. 3061 |
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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 generation of electricity in this state. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter A, Chapter 35, Utilities Code, is |
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| 10 | 10 | | amended by adding Section 35.0021 to read as follows: |
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| 11 | 11 | | Sec. 35.0021. MAINTENANCE OF GENERATION ASSETS; CAPACITY |
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| 12 | 12 | | FORECAST REPORTS. The commission by rule shall require each |
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| 13 | 13 | | provider of generation in the ERCOT power region to: |
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| 14 | 14 | | (1) submit to the commission annual maintenance plans |
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| 15 | 15 | | showing how the provider will maintain generation assets; |
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| 16 | 16 | | (2) periodically inspect and maintain generation |
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| 17 | 17 | | assets to ensure that the assets can withstand extreme weather |
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| 18 | 18 | | conditions; and |
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| 19 | 19 | | (3) report to the independent organization certified |
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| 20 | 20 | | under Section 39.151 for the ERCOT power region annual forecasts of |
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| 21 | 21 | | the provider's generation capacity for a five-year period beginning |
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| 22 | 22 | | with the year following the year in which the forecast is submitted. |
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| 23 | 23 | | SECTION 2. Section 39.351, Utilities Code, is amended by |
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| 24 | 24 | | adding Subsection (d) to read as follows: |
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| 25 | 25 | | (d) The commission shall require a person registered under |
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| 26 | 26 | | this section who operates a natural gas generation facility to |
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| 27 | 27 | | maintain at the site of the facility an amount of natural gas as a |
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| 28 | 28 | | reserve that will allow the facility to provide generation for at |
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| 29 | 29 | | least 48 hours that equals at least 10 percent of the net dependable |
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| 30 | 30 | | capability of the facility in the event of a natural gas shortage. |
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| 31 | 31 | | In this subsection, "net dependable capability" means the maximum |
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| 32 | 32 | | load in megawatts, net of station use, which a generating unit or |
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| 33 | 33 | | generating station can carry under specified conditions for a given |
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| 34 | 34 | | period of time, without exceeding approved limits of temperature |
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| 35 | 35 | | and stress. |
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| 36 | 36 | | SECTION 3. Not later than September 1, 2022, the Public |
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| 37 | 37 | | Utility Commission of Texas shall submit a report to the |
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| 38 | 38 | | legislature on the potential costs and benefits of establishing an |
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| 39 | 39 | | emergency strategic electric energy reserve in this state. The |
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| 40 | 40 | | report must evaluate the feasibility of establishing a state |
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| 41 | 41 | | natural gas reserve and of constructing state-owned power plants. |
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| 42 | 42 | | SECTION 4. This Act takes effect September 1, 2021. |
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