| 1 | 1 | | By: Hancock S.B. No. 1749 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the eligibility and designation of certain gas entities |
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| 7 | 7 | | and gas facilities as critical during an energy emergency. |
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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 D, Chapter 38, Utilities Code, is |
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| 10 | 10 | | amended by adding Section 38.074 to read as follows: |
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| 11 | 11 | | Sec. 38.074. CRITICAL GAS ENTITIES AND FACILITIES DURING AN |
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| 12 | 12 | | ENERGY EMERGENCY. (a) The commission shall work with the Railroad |
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| 13 | 13 | | Commission of Texas and adopt rules to designate certain gas |
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| 14 | 14 | | entities and facilities as critical during an energy emergency. |
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| 15 | 15 | | (b) At a minimum, the commission's rules shall: |
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| 16 | 16 | | (1) ensure that transmission and distribution |
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| 17 | 17 | | utilities, municipally owned utilities, electric cooperatives, and |
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| 18 | 18 | | ERCOT are provided with the designations as required by Section |
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| 19 | 19 | | 81.073, Natural Resources Code; |
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| 20 | 20 | | (2) provide for a prioritization for load-shed |
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| 21 | 21 | | purposes of the entities and facilities designated under Subsection |
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| 22 | 22 | | (a) during an energy emergency; and |
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| 23 | 23 | | (3) provide discretion to transmission and |
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| 24 | 24 | | distribution utilities, municipally owned utilities, and electric |
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| 25 | 25 | | cooperatives to prioritize power delivery and power restoration |
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| 26 | 26 | | among the customers on their respective systems, as circumstances |
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| 27 | 27 | | require. |
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| 28 | 28 | | SECTION 2. Chapter 81, Natural Resources Code, is amended |
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| 29 | 29 | | by adding Section 81.073 to read as follows: |
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| 30 | 30 | | Sec. 81.073. CRITICAL GAS ENTITIES AND FACILITIES DURING AN |
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| 31 | 31 | | ENERGY EMERGENCY. (a) The commission shall work with the Public |
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| 32 | 32 | | Utility Commission of Texas to designate certain gas entities and |
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| 33 | 33 | | facilities as critical during an energy emergency. |
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| 34 | 34 | | (b) At a minimum, the commission's rules shall: |
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| 35 | 35 | | (1) determine eligibility and designation |
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| 36 | 36 | | requirements for persons owning, operating, or engaging in the |
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| 37 | 37 | | activities set forth in Section 81.051 to provide critical customer |
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| 38 | 38 | | designation and critical gas supply information, as defined by the |
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| 39 | 39 | | commission, to transmission and distribution utilities, |
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| 40 | 40 | | municipally owned utilities, electric cooperatives, and ERCOT, as |
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| 41 | 41 | | those terms are defined by Section 31.002, Utilities Code; and |
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| 42 | 42 | | (2) consider essential operational elements when |
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| 43 | 43 | | defining critical customer designations and critical gas supply |
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| 44 | 44 | | information, including natural gas production, processing, |
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| 45 | 45 | | transportation, and the delivery of natural gas to generators. |
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| 46 | 46 | | SECTION 3. (a) The Public Utility Commission of Texas and |
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| 47 | 47 | | Railroad Commission of Texas shall adopt rules, as added by this |
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| 48 | 48 | | Act, not later than September 1, 2021. |
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| 49 | 49 | | (b) The Public Utility Commission of Texas shall provide a |
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| 50 | 50 | | report to the legislature regarding its implementation of the |
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| 51 | 51 | | designation and prioritization requirements, as added by the Act, |
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| 52 | 52 | | not later than January 1, 2022. |
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| 53 | 53 | | SECTION 4. EFFECTIVE DATE. This Act takes effect |
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| 54 | 54 | | immediately if it receives a vote of two-thirds of all the members |
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| 55 | 55 | | elected to each house, as provided by Section 39, Article III, Texas |
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| 56 | 56 | | Constitution. If this Act does not receive the vote necessary for |
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| 57 | 57 | | immediate effect, this Act takes effect September 1, 2021. |
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