Texas Senate Bill SB1749

Texas 2021 - 87th Regular

Caption

Relating to the eligibility and designation of certain gas entities and gas facilities as critical during an energy emergency.

Impact

The bill will amend the Texas Utilities Code and Natural Resources Code to incorporate new requirements for gas entities during periods of energy emergency. Specifically, it outlines processes for the designation of critical gas entities, which include transmission and distribution utilities and other related entities. By prioritizing these entities, the bill aims to facilitate a more coordinated response to energy emergencies, potentially impacting how energy loads are shed or restored, which would improve overall energy reliability in the state.

Summary

Senate Bill 1749, titled "Relating to the eligibility and designation of certain gas entities and gas facilities as critical during an energy emergency," focuses on establishing a framework for identifying and designating gas entities and facilities crucial for the energy infrastructure during times of crisis. The bill mandates that the Railroad Commission of Texas and the Public Utility Commission of Texas work together to develop rules that classify certain natural gas operations as critical, thereby ensuring that energy distribution can be managed effectively during emergencies.

Contention

While the intent of SB 1749 is to enhance emergency preparedness in the energy sector, it may also raise concerns among operators of smaller gas facilities regarding the criteria for being designated as critical. The specifics of eligibility and designation requirements could lead to disparities in how different facilities are treated, with potential implications for regulation and oversight that might favor larger electric cooperatives or municipal utilities. Furthermore, the timeline set for the adoption of rules and reporting requirements could instigate discussions about compliance and operational readiness among affected stakeholders.