Texas House Bill HB3539

Texas 2021 - 87th Regular

Caption

Relating to requirements for onsite power generation.

Impact

The passage of HB3539 is anticipated to have significant implications for the natural resources sector, particularly for businesses involved with gas storage and other related operations. By formalizing the requirement for onsite power generation, the bill seeks to enhance operational stability and safety at these facilities. Proponents argue that this measure will mitigate risks associated with power outages, ensuring that facilities can maintain operations during emergencies and reducing the likelihood of environmental hazards due to power failures.

Summary

House Bill 3539 establishes new requirements regarding onsite power generation at storage facilities in Texas. The bill seeks to ensure that storage facilities maintain the necessary power generation capability to operate effectively, particularly in situations where external power sources may be compromised. Specifically, it mandates that these facilities must be capable of generating power to pump gas for a minimum of 12 hours. This legislation addresses concerns about the reliability and resilience of energy infrastructure in the face of potential disruptions.

Contention

Despite its intended benefits, the bill has faced some contention. Critics have raised concerns about the costs associated with implementing onsite generation systems, especially for smaller storage facilities that may struggle to absorb these additional expenses. There are fears that these requirements could disproportionately burden smaller operators, potentially affecting competition in the market. Additionally, there may be debates over the technical specifications and types of power generation systems that are deemed acceptable under the law.