Texas 2021 - 87th Regular

Texas Senate Bill SB1750 Compare Versions

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1-By: Hancock, Bettencourt S.B. No. 1750
1+By: Hancock S.B. No. 1750
2+ (In the Senate - Filed March 12, 2021; March 26, 2021, read
3+ first time and referred to Committee on Business & Commerce;
4+ April 19, 2021, reported adversely, with favorable Committee
5+ Substitute by the following vote: Yeas 8, Nays 0; April 19, 2021,
6+ sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR S.B. No. 1750 By: Hancock
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411 A BILL TO BE ENTITLED
512 AN ACT
613 relating to extreme weather preparedness of critical electric and
714 natural gas infrastructure; authorizing administrative penalties.
815 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
916 SECTION 1. The legislature finds that Winter Storm Uri
1017 revealed the interconnectedness of the gas and power industries in
1118 the face of extreme weather and resolves to protect the citizens of
1219 this state from similar events by requiring coordinated enforcement
1320 by relevant regulatory bodies.
1421 SECTION 2. Subchapter C, Chapter 86, Natural Resources
1522 Code, is amended by adding Section 86.044 to read as follows:
1623 Sec. 86.044. EXTREME WEATHER EMERGENCY PREPAREDNESS. (a)
1724 In this section, "extreme weather emergency" means a period when:
1825 (1) the previous day's highest temperature did not
1926 exceed 10 degrees Fahrenheit and the temperature is predicted to
2027 remain at or below that level for the next 24 hours according to the
2128 nearest National Weather Service reports; or
2229 (2) the National Weather Service issues a heat
2330 advisory for any county in the relevant service territory, or when
2431 such an advisory has been issued on any one of the previous two
2532 calendar days.
2633 (b) The commission by rule shall require an operator of a
2734 gas well to implement measures to prepare the well to operate during
2835 an extreme weather emergency.
2936 SECTION 3. Section 121.2015(a), Utilities Code, is amended
3037 to read as follows:
3138 (a) The railroad commission shall adopt rules regarding:
3239 (1) public education and awareness relating to gas
3340 pipeline facilities; [and]
3441 (2) community liaison for responding to an emergency
3542 relating to a gas pipeline facility; and
3643 (3) measures gas pipeline facility operators must
3744 implement to prepare gas pipeline facilities to maintain service
3845 quality and reliability during an extreme weather emergency, as
3946 defined by Section 86.044, Natural Resources Code.
4047 SECTION 4. Subchapter A, Chapter 186, Utilities Code, is
4148 amended by adding Section 186.008 to read as follows:
4249 Sec. 186.008. WINTER WEATHER EMERGENCY PREPAREDNESS AND
4350 COORDINATION. (a) In this section:
4451 (1) "Coordinating agency" means the Public Utility
4552 Commission of Texas, the Railroad Commission of Texas, or the Texas
4653 Division of Emergency Management.
4754 (2) "Coordinated entity" means a power generation
4855 company as defined by Section 31.002, the independent organization,
4956 or an entity engaged in the transport, storage, or shipping of
5057 natural gas to or for a power generation company.
5158 (3) "Independent organization" means the independent
5259 organization certified under Section 39.151 for the ERCOT power
5360 region.
5461 (b) The Public Utility Commission of Texas and the Railroad
5562 Commission of Texas each by rule shall require each coordinated
5663 entity subject to the agency's jurisdiction to establish and submit
5764 to the respective agency a winter preparedness emergency operations
5865 plan. The rules must require a winter preparedness emergency
5966 operations plan to include:
6067 (1) a plan for operating during extremely cold
6168 weather;
6269 (2) a plan that addresses any known critical failure
6370 points of the entity, including any effects of weather design
6471 limits;
6572 (3) a plan for operating during an emergency shortage
6673 of water or other critical supplies;
6774 (4) a plan for identifying potentially extreme weather
6875 events;
6976 (5) a plan for staffing during extreme weather events;
7077 (6) natural gas curtailment priorities and
7178 procedures, if applicable;
7279 (7) a description of priorities for recovery of
7380 operational capacity or restoration of service, as applicable;
7481 (8) identification of critical loads necessary to
7582 maintain production of electricity or natural gas;
7683 (9) a communications plan that describes the
7784 procedures and threshold conditions for initiation of
7885 communication about a potential extreme weather event with the
7986 coordinating agencies, other coordinated entities, the public, the
8087 media, and customers; and
8188 (10) an affidavit from an owner, partner, officer,
8289 manager, or other official with responsibility for the entity's
8390 operations affirming that all relevant operating personnel of the
8491 entity are familiar with the contents of the emergency operations
8592 plan and that the personnel will follow the plan, except to the
8693 extent deviations are appropriate under the circumstances during an
8794 emergency.
8895 (c) An emergency operations plan may be combined or
8996 coordinated with other preparedness reporting requirements,
9097 including requirements regarding other weather scenarios, natural
9198 disasters, cybersecurity events, physical security events, and
9299 pandemics. A coordinating agency may authorize a coordinated
93100 entity to submit for the purposes of this section a plan required to
94101 be submitted to the agency under another provision of law if the
95102 plan includes the information required by this section to be
96103 included in an emergency operations plan.
97104 (d) The coordinating agencies shall analyze jointly
98105 emergency operations plans developed by coordinated entities in
99106 each even-numbered year and prepare a weather emergency
100107 preparedness report on power generation and natural gas
101108 weatherization preparedness in this state. In preparing the
102109 report, the coordinating agencies shall:
103110 (1) review the emergency operations plans on file with
104111 each of the coordinating agencies;
105112 (2) analyze and determine the ability of the electric
106113 grid and natural gas system to withstand extreme weather events in
107114 the upcoming biennium;
108115 (3) consider the anticipated weather patterns for the
109116 upcoming biennium; and
110117 (4) make recommendations on improving emergency
111118 operations plans and procedures to ensure the continuity of
112119 electric and natural gas service, including identifying and
113120 defining potentially appropriate weatherization and emergency
114121 operations standards, that may:
115122 (A) differentiate between existing and new
116123 facilities; and
117124 (B) consider geography, suitable alternatives,
118125 cost-effectiveness, and other practical constraints.
119126 (e) A coordinating agency may require a coordinated entity
120127 subject to the agency's jurisdiction and this section to file an
121128 updated emergency operations plan if the coordinating agency finds
122129 that an emergency operations plan on file does not contain
123130 sufficient information to determine whether the coordinated entity
124131 can provide adequate services.
125132 (f) Each coordinating agency may adopt rules relating to the
126133 implementation of the report described by Subsection (d).
127134 (g) The coordinating agencies shall submit the report
128135 described by Subsection (d) to the lieutenant governor, the speaker
129136 of the house of representatives, and the members of the legislature
130137 not later than September 30 of each even-numbered year. The
131138 coordinating agencies may combine a report required by this section
132139 with a report required to be produced by a coordinating agency by
133140 another provision of law when making the submission required by
134141 this subsection.
135142 (h) An emergency operations plan submitted to a state agency
136143 under this section is confidential under Chapters 418 and 552,
137144 Government Code, and any other applicable law, and is not subject to
138145 disclosure under Chapter 552, Government Code. If portions of a
139146 plan are directly referenced in the report described by Subsection
140147 (d), the information must be in a redacted form for public
141148 inspection with the confidential portions removed. A coordinated
142149 entity in the ERCOT power region shall provide the entity's entire
143150 plan to the independent organization. The independent organization
144151 shall maintain the confidentiality of the plan.
145152 (i) The Public Utility Commission of Texas and the Railroad
146153 Commission of Texas each shall notify coordinated entities under
147154 their respective jurisdictions of any potential deficiencies in
148155 entity emergency operations plans and describe any applicable
149156 winter weatherization and emergency operations standards
150157 recommended by the coordinating agencies. Not later than the 30th
151158 day after the date a coordinated entity receives notice under this
152159 subsection, the entity in writing shall acknowledge to the Public
153160 Utility Commission of Texas or the Railroad Commission of Texas, as
154161 applicable, that the entity received the notice.
155162 (j) The Public Utility Commission of Texas or the Railroad
156163 Commission of Texas, after notice and opportunity for hearing, may
157164 impose an administrative penalty on a coordinated entity subject to
158165 the agency's jurisdiction for failure to submit an emergency
159166 operations plan or respond to a notice of potential deficiency by
160167 the required time.
161168 SECTION 5. The Railroad Commission of Texas shall adopt
162169 rules as required by Section 86.044, Natural Resources Code, as
163170 added by this Act, and Section 121.2015(a), Utilities Code, as
164171 amended by this Act, not later than November 1, 2021.
165172 SECTION 6. Not later than January 1, 2022, the Public
166173 Utility Commission of Texas and the Railroad Commission of Texas
167174 shall adopt the rules required by Section 186.008, Utilities Code,
168175 as added by this Act.
169176 SECTION 7. The Railroad Commission of Texas is required to
170177 implement this Act only if the legislature appropriates money
171178 specifically for that purpose. If the legislature does not
172179 appropriate money specifically for that purpose, the Railroad
173180 Commission of Texas may, but is not required to, implement this Act
174181 using other appropriations available for the purpose.
175182 SECTION 8. This Act takes effect September 1, 2021.
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