2021S0195-1 03/11/21
By: Hancock S.B. No. 1750
A BILL TO BE ENTITLED
AN ACT
relating to coordinating severe weather preparedness in critical
electric and natural gas infrastructure; authorizing an
administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that Winter Storm Uri
revealed the interconnectedness of the gas and power industries in
the face of severe weather and resolves to protect the citizens of
Texas from similar events in the future by requiring coordinated
enforcement across relevant regulatory bodies.
SECTION 2. Subchapter A, Chapter 186, Utilities Code, is
amended by adding Section 186.0071 to read as follows:
Sec. 186.0071. WINTER WEATHER EMERGENCY PREPAREDNESS AND
COORDINATION. (a) In this section:
(1) "Coordinating agencies" means the Public Utility
Commission of Texas, the Railroad Commission of Texas, and the
Texas Division of Emergency Management.
(2) "Coordinated entities" means public utilities,
power generation companies, ERCOT, and entities engaged in the
production, transport, gathering, storage, or shipping of natural
gas.
(3) "ERCOT" means the Electric Reliability Council of
Texas.
(b) The Public Utility Commission of Texas and the Railroad
Commission of Texas shall each establish rules to require each
coordinated entity subject to their respective jurisdictions to
establish and submit a winter preparedness emergency operations
plan. The rules must require the winter preparedness emergency
operations plans to include:
(1) a plan that addresses severely cold weather;
(2) a plan that addresses any known critical failure
points, including any effects of weather design limits;
(3) a plan that addresses an emergency shortage of
water or other critical supplies;
(4) a plan for identification of potentially severe
weather events;
(5) a plan that addresses staffing during severe
weather events;
(6) curtailment priorities and procedures;
(7) priorities for recovery of operational capacity or
restoration of service, as applicable;
(8) identification of critical loads necessary to
maintain production of electricity or natural gas;
(9) a communications plan that describes the
procedures and threshold conditions for initiation of
communication about a potential severe weather event with the
coordinating agencies, other coordinated entities, ERCOT, the
public, the media, and customers; and
(10) an affidavit from an owner, partner, officer,
manager, or other official with responsibility for the entity's
operations affirming that all relevant operating personnel of the
entity are familiar with the contents of the emergency operations
plan and that such personnel are committed to following the plan
except to the extent deviations are appropriate under the
circumstances during the course of an emergency.
(c) The emergency operations plans may be combined or
coordinated with other preparedness reporting requirements,
including for other weather scenarios, natural disasters,
cybersecurity events, physical security events, and pandemics.
(d) The coordinating agencies shall jointly analyze
emergency operations plans developed by coordinated entities in
each even-numbered year and prepare a weather emergency
preparedness report on power generation and natural gas
weatherization preparedness. In preparing the report, the
coordinating agencies shall:
(1) review the emergency operations plans currently on
file with each of the coordinating agencies;
(2) analyze and determine the ability of the electric
grid and natural gas system to withstand extreme weather events in
the upcoming biennium;
(3) consider the anticipated weather patterns for the
upcoming biennium; and
(4) make recommendations on improving emergency
operations plans and procedures in order to ensure the continuity
of electric and natural gas service, including the identification
and definition of potentially appropriate weatherization and
emergency operations standards, which may differentiate between
existing and new facilities and may consider geography, suitable
alternatives, cost-effectiveness, and other practical constraints.
(e) A coordinating agency may require a coordinated entity
subject to its jurisdiction and this section to file an updated
emergency operations plan if the coordinating agency finds that an
emergency operations plan on file does not contain sufficient
information to determine whether the coordinated entity can provide
adequate services.
(f) Each coordinating agency may adopt rules relating to the
implementation of the report described by Subsection (d).
(g) The coordinating agencies shall submit the report
described by Subsection (d) to the lieutenant governor, the speaker
of the house of representatives, and the members of the legislature
not later than September 30 of each even-numbered year.
(h) The emergency operations plans submitted for the report
described by Subsection (d) are confidential under Chapters 418 and
552, Government Code, and other state or federal law. If portions
of a plan are directly referenced in the report described by
Subsection (d), such information shall be in a redacted form for
public inspection with the confidential portions removed. A
coordinated entity within the ERCOT power region shall provide the
entity's plan to ERCOT in its entirety, and ERCOT shall maintain the
confidentiality of the plan.
(i) The Public Utility Commission of Texas and the Railroad
Commission of Texas shall each notify coordinated entities under
their respective jurisdictions of any potential deficiencies in
their emergency operations plans, including winter weatherization
and emergency operations standards recommended by the coordinating
agencies. Each entity shall respond to such notice in writing
within 30 days.
(j) The Public Utility Commission of Texas and the Railroad
Commission of Texas may, after notice and opportunity for hearing,
impose an administrative penalty on entities subject to their
respective jurisdictions for failure to timely submit an emergency
operations plan or respond to a notice of potential deficiency.
SECTION 3. Section 186.007, Utilities Code, is repealed.
SECTION 4. Not later than January 1, 2022, the Public
Utility Commission of Texas and the Railroad Commission of Texas
shall adopt the rules required by Section 186.0071(b), Utilities
Code, as added by this Act.
SECTION 5. This Act takes effect September 1, 2021.