87R10684 JXC-D By: Menéndez S.B. No. 2078 A BILL TO BE ENTITLED AN ACT relating to electricity supplied to certain water facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 38, Utilities Code, is amended by adding Sections 38.0721 and 38.0722 to read as follows: Sec. 38.0721. EXCLUSION OF WATER FACILITIES FROM ROLLING BLACKOUT. The commission by rule shall require each electric utility, municipally owned utility, and electric cooperative to exclude any circuits that provide power to a facility necessary to provide water to wholesale customers from participation in the utility's or cooperative's attempt to shed load in response to a rolling blackout initiated by an independent organization certified under Section 39.151 or another reliability council or power pool in which the utility or cooperative operates. Sec. 38.0722. WATER TREATMENT GRANTS. (a) The commission shall establish a program to provide grants of state money appropriated for that purpose to facilities necessary to provide water to wholesale customers for the purpose of purchasing of generators to provide a backup power supply for water treatment during a power outage. (b) The commission by rule shall adopt criteria for determining which facilities should receive grants under this section. The criteria must prioritize facilities in: (1) areas with a high frequency or duration of power outages relative to other areas of the state; and (2) economically distressed areas, as defined by Section 15.001, Water Code. SECTION 2. This Act takes effect September 1, 2021.