By: Schwertner S.B. No. 3
(In the Senate - Filed March 12, 2021; March 18, 2021, read
first time and referred to Committee on Jurisprudence;
March 26, 2021, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 0; March 26, 2021,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 3 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to preparing for, preventing, and responding to weather
emergencies and power outages; increasing the amount of
administrative and civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 411, Government Code, is amended by
adding Subchapter K-1 to read as follows:
SUBCHAPTER K-1. POWER OUTAGE ALERT
Sec. 411.301. POWER OUTAGE ALERT. (a) With the cooperation
of the Texas Department of Transportation, the Texas Division of
Emergency Management, the office of the governor, and the Public
Utility Commission of Texas, the department shall develop and
implement an alert to be activated when the power supply in this
state may be inadequate to meet demand.
(b) The Public Utility Commission of Texas by rule shall
adopt criteria for the content and activation of the alert
described by Subsection (a). The criteria must provide for an alert
to be regional or statewide.
Sec. 411.302. ADMINISTRATION. (a) The director is the
statewide coordinator of the power outage alert.
(b) The director shall adopt rules and issue directives as
necessary to ensure proper implementation of the power outage
alert. The rules and directives must include the procedures to be
used by the Public Utility Commission of Texas and the independent
organization certified under Section 39.151, Utilities Code, to
communicate with the director about the power outage alert.
Sec. 411.303. DEPARTMENT TO RECRUIT PARTICIPANTS. The
department shall recruit public and commercial television and radio
broadcasters, private commercial entities, state or local
governmental entities, the public, and other appropriate persons to
assist in developing and implementing the power outage alert
system.
Sec. 411.304. STATE AGENCIES. (a) A state agency
participating in the power outage alert system shall:
(1) cooperate with the department and assist in
developing and implementing the alert system; and
(2) establish a plan for providing relevant
information to its officers, investigators, or employees, as
appropriate, once the power outage alert system has been activated.
(b) In addition to its duties as a state agency under
Subsection (a), the Texas Department of Transportation shall
establish a plan for providing relevant information to the public
through an existing system of dynamic message signs located across
the state.
Sec. 411.305. ACTIVATION OF POWER OUTAGE ALERT. (a) When
the Public Utility Commission of Texas or an independent
organization certified under Section 39.151, Utilities Code,
notifies the department that the power supply in this state or a
region of this state may be inadequate to meet demand, the
department shall confirm the accuracy of the information and, if
confirmed, immediately issue a power outage alert under this
subchapter in accordance with department rules.
(b) In issuing the power outage alert, the department shall
send the alert to designated media outlets in this state. Following
receipt of the alert, participating radio stations and television
stations and other participating media outlets may issue the alert
at designated intervals.
Sec. 411.306. CONTENT OF POWER OUTAGE ALERT. The power
outage alert must include a statement that electricity customers
may experience a power outage.
Sec. 411.307. TERMINATION OF POWER OUTAGE ALERT. The
director shall terminate any activation of the power outage alert
with respect to a particular energy emergency alert not later than
the date the department receives notice that the energy emergency
alert has been canceled.
Sec. 411.308. LIMITATION ON PARTICIPATION BY TEXAS
DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.304(b),
the Texas Department of Transportation is not required to use any
existing system of dynamic message signs in a statewide alert
system created under this subchapter if that department receives
notice from the United States Department of Transportation Federal
Highway Administration that the use of the signs would result in the
loss of federal highway funding or other punitive actions taken
against this state due to noncompliance with federal laws,
regulations, or policies.
SECTION 2. Section 418.048, Government Code, is amended to
read as follows:
Sec. 418.048. MONITORING WEATHER. (a) The division shall
keep continuously apprised of weather conditions that present
danger of climatic activity, such as precipitation, severe enough
to constitute a disaster.
(b) The division shall create a list of suggested actions
for state agencies and the public to take to prepare for winter
storms, organized by severity of storm based on the National
Weather Service Winter Storm Severity Index.
SECTION 3. Chapter 418, Government Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. TEXAS ENERGY RELIABILITY COUNCIL
Sec. 418.301. DEFINITIONS. In this subchapter:
(1) "Chief" means the division's chief.
(2) "Council" means the Texas Energy Reliability
Council.
Sec. 418.302. COUNCIL ESTABLISHED. The Texas Energy
Reliability Council is established to:
(1) ensure that the energy and electric industries in
this state meet high priority human needs and address critical
infrastructure concerns; and
(2) enhance coordination and communication in the
energy and electric industries in this state.
Sec. 418.303. MEMBERSHIP. (a) The council is composed of:
(1) the chairman of the Railroad Commission of Texas;
(2) the presiding officer of the Public Utility
Commission of Texas;
(3) the chief executive of the Office of Public
Utility Counsel;
(4) the presiding officer of the Texas Commission on
Environmental Quality;
(5) the chair of the Texas Transportation Commission;
(6) a person to represent the independent organization
certified under Section 39.151, Utilities Code, for the ERCOT power
region, appointed by the governor;
(7) the chief;
(8) five persons to represent participants in the
natural gas supply chain in this state, appointed by the Railroad
Commission of Texas to represent as many types of participants as
possible;
(9) five persons to represent the electric industry,
appointed by the Public Utility Commission of Texas, including:
(A) one person to represent entities that provide
dispatchable electric energy to the power grid in this state;
(B) one person to represent transmission and
distribution utilities, as defined by Section 31.002, Utilities
Code;
(C) one person to represent retail electric
providers, as defined by Section 31.002, Utilities Code;
(D) one person to represent municipally owned
utilities, as defined by Section 11.003, Utilities Code; and
(E) one person to represent electric
cooperatives;
(10) three persons to represent energy sectors not
otherwise represented on the council, such as the non-dispatchable
sources of energy, coal, or nuclear sectors, appointed by the
Public Utility Commission of Texas; and
(11) five persons to represent industrial concerns,
appointed by the governor, including:
(A) one person to represent motor fuel producers;
and
(B) one person to represent chemical
manufacturers.
(b) A member of the council described by Subsection (a)(1),
(2), (3), (4), (5), (6), or (7) may designate a person from the
member's agency to represent the member in any meeting.
(c) The council may request that a person collaborate with
the council to achieve the purposes described by Section 418.302.
Sec. 418.304. OFFICERS. (a) The chief shall serve as
presiding officer of the council.
(b) The council may select an assistant presiding officer
and secretary from among its members.
Sec. 418.305. COMPENSATION; REIMBURSEMENT. A member of the
council is not entitled to compensation or reimbursement of
expenses for service on the council.
Sec. 418.306. MEETINGS. (a) After its initial meeting, the
council shall meet at least twice each year at a time and place
determined by the chief.
(b) The council may meet at other times the council
considers appropriate. The presiding officer may call a meeting on
the officer's own motion.
Sec. 418.307. ADMINISTRATIVE SUPPORT. The division shall
provide administrative support to the council.
Sec. 418.308. GENERAL DUTIES OF COUNCIL. (a) The council
shall foster communication and planning to ensure preparedness for
making available and delivering energy and electricity in this
state to ensure that high priority human needs are met and critical
infrastructure needs are addressed.
(b) The council shall foster communication and coordination
between the energy and electric industries in this state.
Sec. 418.309. SUPPLY CHAIN MAP. The council shall:
(1) map the natural gas supply chain for this state in
order to designate priority service needs during extreme weather
events, including electric generation facilities powered by
natural gas; and
(2) identify and designate the sources in the supply
chain necessary to operate critical infrastructure, as defined by
Section 421.001.
SECTION 4. Subchapter C, Chapter 86, Natural Resources
Code, is amended by adding Section 86.044 to read as follows:
Sec. 86.044. WEATHER EMERGENCY PREPAREDNESS. (a) In this
section, "gas supply chain facility" means a facility that is:
(1) used for producing, treating, processing,
pressurizing, storing, or transporting natural gas to end
consumers;
(2) otherwise regulated by the commission under this
subtitle; and
(3) not regulated by the commission under Chapter 121,
Utilities Code.
(b) The commission by rule shall require a gas supply chain
facility operator to implement measures to prepare to operate
during a weather emergency. In adopting the rules, the commission
shall take into consideration the supply chain map created under
Section 418.309, Government Code.
(c) The commission by rule shall require an operator of a
gas supply chain facility that experiences repeated or major
weather-related forced interruptions of production to:
(1) contract with a person who is not an employee of
the provider to assess the operator's weatherization plans,
procedures, and operations; and
(2) submit the assessment to the commission.
(d) The commission may require an operator of a gas supply
chain facility to implement appropriate recommendations included
in an assessment submitted to the commission under Subsection (c).
(e) If the commission determines that a person has violated
a rule adopted under this section, the commission shall notify the
attorney general of the violation. The attorney general shall
initiate a suit to recover a penalty for the violation in the manner
provided by Subchapter G.
SECTION 5. Section 86.222, Natural Resources Code, is
amended by adding Subsections (a-1), (c), and (d) to read as
follows:
(a-1) Notwithstanding Subsection (a), a person who violates
a provision of a rule adopted under Section 86.044 is liable for a
penalty of not more than $1,000,000 for each offense.
(c) The commission by rule shall establish a classification
system to be used by a court under this subchapter for violations of
rules adopted under Section 86.044 that includes a range of
penalties that may be recovered for each class of violation based
on:
(1) the seriousness of the violation, including:
(A) the nature, circumstances, extent, and
gravity of a prohibited act; and
(B) the hazard or potential hazard created to the
health, safety, or economic welfare of the public;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(d) The classification system established under Subsection
(c) shall provide that a penalty in an amount that exceeds $5,000
may be recovered only if the violation is included in the highest
class of violations in the classification system.
SECTION 6. Section 15.023, Utilities Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) Notwithstanding Subsection (b), the penalty for a
violation of a provision of Subtitle B may be in an amount not to
exceed $1,000,000 for a violation. Each day a violation continues
or occurs is a separate violation for purposes of imposing a
penalty.
SECTION 7. Section 17.002, Utilities Code, is amended by
adding Subdivision (3-a) to read as follows:
(3-a) "Critical care residential customer" means a
residential customer who has permanently residing in the customer's
home a person who has been diagnosed by a physician as being
dependent upon an electric-powered medical device to sustain life.
SECTION 8. Section 17.003, Utilities Code, is amended by
adding Subsections (d-1) and (e) to read as follows:
(d-1) An electric utility providing electric delivery
service for a retail electric provider, as defined by Section
31.002, shall collaborate with the retail electric provider and the
commission to ensure that information about the following matters
is periodically provided to the retail electric provider's retail
customers together with bills sent to the customers:
(1) the electric utility's procedures for implementing
involuntary load shedding initiated by the independent
organization certified for the ERCOT power region;
(2) the types of customers who may be considered
critical care residential customers or critical load according to
commission rules adopted under Section 38.075;
(3) the procedure for a customer to apply to be
considered a critical care residential customer or critical load
according to commission rules adopted under Section 38.075; and
(4) reducing electricity use at times when involuntary
load shedding events may be implemented.
(e) The commission by rule shall require each retail
electric provider to:
(1) provide to the provider's customers clear and
understandable information about the requirements for voluntary
load shedding participation before the provider accepts a
customer's agreement to volunteer to participate in voluntary load
shedding;
(2) inform the provider's transmission and
distribution utilities whether the retail electric provider serves
customers willing to voluntarily participate in load shedding
during an energy emergency; and
(3) coordinate with the provider's transmission and
distribution utilities regarding the potential total amounts of
electricity that would be available if voluntary load shedding is
needed.
SECTION 9. Section 17.005, Utilities Code, is amended to
read as follows:
Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED
UTILITIES. (a) A municipally owned utility may not be deemed to be
a "service provider" or "billing agent" for purposes of Sections
17.156(b) and (e).
(b) The governing body of a municipally owned utility shall
adopt, implement, and enforce rules that shall have the effect of
accomplishing the objectives set out in Sections 17.004(a) and (b)
and 17.102, as to the municipally owned utility within its
certificated service area.
(c) The governing body of a municipally owned utility or its
designee shall perform the dispute resolution function provided for
by Section 17.157 for disputes arising from services provided by
the municipally owned utility to electric customers served within
the municipally owned utility's certificated service area.
(d) With respect to electric customers served by a
municipally owned utility outside its certificated service area or
otherwise served through others' distribution facilities, after
retail competition begins as authorized by the legislature, the
provisions of this chapter as administered by the commission apply.
(e) Nothing in this chapter shall be deemed to apply to a
wholesale customer of a municipally owned utility.
(f) A municipally owned utility shall periodically provide
with bills sent to retail customers of the utility information
about:
(1) the utility's procedure for implementing
involuntary load shedding;
(2) the types of customers who may be considered
critical care residential customers or critical load according to
commission rules adopted under Section 38.075;
(3) the procedure for a customer to apply to be
considered a critical care residential customer or critical load
according to commission rules adopted under Section 38.075; and
(4) reducing electricity use at times when involuntary
load shedding events may be implemented.
SECTION 10. Section 17.006, Utilities Code, is amended to
read as follows:
Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC
COOPERATIVES. (a) An electric cooperative shall not be deemed to
be a "service provider" or "billing agent" for purposes of Sections
17.156(b) and (e).
(b) The electric cooperative shall adopt, implement, and
enforce rules that shall have the effect of accomplishing the
objectives set out in Sections 17.004(a) and (b) and 17.102.
(c) The board of directors of the electric cooperative or
its designee shall perform the dispute resolution function provided
for by Section 17.157 for electric customers served by the electric
cooperative within its certificated service area.
(d) With respect to electric customers served by an electric
cooperative outside its certificated service area or otherwise
served through others' distribution facilities, after the
legislature authorizes retail competition, the provisions of this
chapter as administered by the commission shall apply.
(e) Nothing in this chapter shall be deemed to apply to a
wholesale customer of an electric cooperative.
(f) An electric cooperative shall periodically provide with
bills sent to retail customers of the cooperative information
about:
(1) the cooperative's procedure for implementing
involuntary load shedding;
(2) the types of customers who may be considered
critical care residential customers or critical load according to
commission rules adopted under Section 38.075;
(3) the procedure for a customer to apply to be
considered a critical care residential customer or critical load
according to commission rules adopted under Section 38.075; and
(4) reducing electricity use at times when involuntary
load shedding events may be implemented.
SECTION 11. The heading to Chapter 35, Utilities Code, is
amended to read as follows:
CHAPTER 35. [ALTERNATIVE] ENERGY PROVIDERS
SECTION 12. Subchapter A, Chapter 35, Utilities Code, is
amended by adding Section 35.0021 to read as follows:
Sec. 35.0021. WEATHER EMERGENCY PREPAREDNESS. (a) This
section applies only to a municipally owned utility, electric
cooperative, qualifying facility, power generation company, or
exempt wholesale generator that sells electric energy at wholesale
in the ERCOT power region.
(b) The commission by rule shall require each provider of
electric generation service described by Subsection (a) to
implement measures to prepare the provider's generation assets to
provide adequate electric generation service during a weather
emergency according to reliability standards adopted by the
commission.
(c) The independent organization certified under Section
39.151 for the ERCOT power region shall:
(1) inspect generation assets in the ERCOT power
region for compliance with the reliability standards;
(2) provide the owner of a generation asset with a
reasonable period of time in which to remedy any violation the
independent organization discovers in an inspection; and
(3) report to the commission any violation that is not
remedied in a reasonable period of time.
(d) The commission by rule shall require a provider of
electric generation service described by Subsection (a) for a
generation asset that experiences repeated or major
weather-related forced interruptions of service to:
(1) contract with a person who is not an employee of
the provider to assess the provider's weatherization plans,
procedures, and operations for that asset; and
(2) submit the assessment to the commission and the
independent organization certified under Section 39.151 for the
ERCOT power region.
(e) The commission may require a provider of electric
generation service described by Subsection (a) to implement
appropriate recommendations included in an assessment submitted to
the commission under Subsection (d).
(f) The independent organization certified under Section
39.151 for the ERCOT power region shall review, coordinate, and
approve or deny requests by providers of electric generation
service described by Subsection (a) for a planned power outage
during a period in which historically, as determined by the
commission, electricity use has reached a summer or winter peak.
(g) The commission shall impose an administrative penalty
on an entity, including a municipally owned utility or an electric
cooperative, that violates a rule adopted under this section in the
manner provided by Chapter 15.
SECTION 13. Section 35.004(e), Utilities Code, is amended
to read as follows:
(e) The commission shall ensure that ancillary services
necessary to facilitate the transmission of electric energy are
available at reasonable prices with terms and conditions that are
not unreasonably preferential, prejudicial, discriminatory,
predatory, or anticompetitive. The commission shall ensure that
the independent organization certified under Section 39.151 for the
ERCOT power region procures ancillary services sufficient to manage
any reliability impacts of intermittent generation resources,
including variability across peak demand periods, and shall
directly assign the costs of such services to intermittent
generators consistent with cost-causation principles. In this
subsection, "ancillary services" means services necessary to
facilitate the transmission of electric energy including load
following, standby power, backup power, reactive power, and any
other services as the commission may determine by rule. On the
introduction of customer choice in the ERCOT power region,
acquisition of generation-related ancillary services on a
nondiscriminatory basis by the independent organization in ERCOT on
behalf of entities selling electricity at retail shall be deemed to
meet the requirements of this subsection.
SECTION 14. Subchapter D, Chapter 38, Utilities Code, is
amended by adding Sections 38.074, 38.075, and 38.076 to read as
follows:
Sec. 38.074. WEATHER EMERGENCY PREPAREDNESS. (a) The
commission by rule shall require each electric cooperative,
municipally owned utility, and transmission and distribution
utility providing transmission service in the ERCOT power region to
implement measures to prepare the cooperative's or utility's
facilities to maintain service quality and reliability during a
weather emergency according to standards adopted by the commission.
(b) The commission shall impose an administrative penalty
on an entity, including a municipally owned utility or an electric
cooperative, that violates a rule adopted under this section in the
manner provided by Chapter 15.
Sec. 38.075. INVOLUNTARY LOAD SHEDDING. (a) The
commission by rule shall adopt a system to allocate load shedding
among electric cooperatives, municipally owned utilities, and
transmission and distribution utilities providing transmission
service in the ERCOT power region during an involuntary load
shedding event initiated by an independent organization certified
under Section 39.151 for the region during an energy emergency.
(b) The system must provide for allocations for electric
cooperatives, municipally owned utilities, and transmission and
distribution utilities in different seasons based on historical
seasonal peak usage in the geographic area served by the electric
cooperative, municipally owned utility, or transmission and
distribution utility.
(c) The commission by rule shall:
(1) categorize types of critical load that may be
given the highest priority for power restoration; and
(2) require electric cooperatives, municipally owned
utilities, and transmission and distribution utilities providing
transmission service in the ERCOT power region to submit to the
commission and the independent organization certified under
Section 39.151 for the region:
(A) customers or circuits the cooperative or
utility has designated as critical load; and
(B) a plan for participating in load shedding in
response to an involuntary load shedding event described by
Subsection (a).
(d) The commission by rule shall require electric
cooperatives and municipally owned utilities providing
transmission service in the ERCOT power region to:
(1) maintain lists of customers willing to voluntarily
participate in load shedding; and
(2) coordinate with municipalities, businesses, and
customers that consume large amounts of electricity to encourage
voluntary load shedding.
(e) This section does not abridge, enlarge, or modify the
obligation of an electric cooperative, a municipally owned utility,
or a transmission and distribution utility to comply with federal
reliability standards.
Sec. 38.076. LOAD SHEDDING EXERCISES. (a) The commission
and the independent organization certified for the ERCOT power
region shall conduct load shedding exercises with providers of
electric generation service and transmission and distribution
service in the ERCOT power region.
(b) The commission shall ensure that each year at least one
exercise is conducted during a summer month and one exercise is
conducted during a winter month.
SECTION 15. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.110 to read as follows:
Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)
In this section, "wholesale indexed product" means a retail
electric product in which the price a customer pays for electricity
includes a direct pass-through of real-time settlement point prices
determined by the independent organization certified under Section
39.151 for the ERCOT power region.
(b) A retail electric provider may not offer a wholesale
indexed product to a residential or small commercial customer.
SECTION 16. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.159 to read as follows:
Sec. 39.159. WHOLESALE EMERGENCY PRICING PROCEDURES. (a)
The commission by rule shall establish an emergency system-wide
offer cap program based on actual costs of generation at the time of
the emergency for the wholesale electric market.
(b) If the program includes more than one emergency
system-wide offer cap:
(1) the program may not authorize the high system-wide
offer cap to be in effect for a continuous period of more than 12
hours;
(2) the program may only allow for a low system-wide
offer cap that cannot exceed the high system-wide offer cap;
(3) the program may not allow an emergency system-wide
offer cap to exceed any nonemergency high system-wide offer cap;
and
(4) the price of ancillary services may not exceed 150
percent of the high system-wide offer cap.
(c) The commission shall review the emergency system-wide
offer cap program at least once every five years to determine
whether to update aspects of the program.
SECTION 17. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.9165 to read as follows:
Sec. 39.9165. DISTRIBUTED GENERATION REPORTING. (a) In
this section, "distributed generation" is an electrical generating
facility that:
(1) is located at a customer's point of delivery;
(2) is connected at a voltage less than or equal to 60
kilovolts; and
(3) may be connected in parallel operation to the
utility system.
(b) An independent organization certified under Section
39.151 shall require an owner or operator of distributed generation
to register with the organization and interconnecting transmission
and distribution utility information necessary for the
interconnection of the distributed generator.
(c) This section does not apply to distributed generation
serving a residential property.
SECTION 18. Section 105.023, Utilities Code, is amended by
adding Subsections (b-1), (e), and (f) to read as follows:
(b-1) Notwithstanding Subsection (b), a civil penalty under
this section shall be in an amount of not less than $1,000 and not
more than $1,000,000 for each violation of Section 104.258(c).
(e) The railroad commission by rule shall establish a
classification system to be used by a court under this subchapter
for violations of Section 104.258(c) that includes a range of
penalties that may be recovered for each class of violation based
on:
(1) the seriousness of the violation, including:
(A) the nature, circumstances, extent, and
gravity of a prohibited act; and
(B) the hazard or potential hazard created to the
health, safety, or economic welfare of the public;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(f) The classification system established under Subsection
(e) shall provide that a penalty in an amount that exceeds $5,000
may be recovered only if the violation is included in the highest
class of violations in the classification system.
SECTION 19. Section 121.2015, Utilities Code, is amended by
amending Subsection (a) and adding Subsections (d), (e), and (f) to
read as follows:
(a) The railroad commission shall adopt rules regarding:
(1) public education and awareness relating to gas
pipeline facilities; [and]
(2) community liaison for responding to an emergency
relating to a gas pipeline facility; and
(3) measures gas pipeline facility operators must
implement to prepare gas pipeline facilities to maintain service
quality and reliability during extreme weather conditions, taking
into consideration the supply chain map created under Section
418.309, Government Code.
(d) The railroad commission by rule shall require a gas
pipeline facility operator that experiences repeated or major
weather-related forced interruptions of service to:
(1) contract with a person who is not an employee of
the provider to assess the operator's weatherization plans,
procedures, and operations; and
(2) submit the assessment to the commission.
(e) The railroad commission may require an operator of a gas
supply chain facility to implement appropriate recommendations
included in an assessment submitted to the commission under
Subsection (d).
(f) The railroad commission shall assess an administrative
penalty against a person who violates a rule adopted under
Subsection (a)(3) in the manner provided by Subchapter E.
SECTION 20. Section 121.206, Utilities Code, is amended by
adding Subsections (b-1) and (e) to read as follows:
(b-1) Notwithstanding Subsection (b), the penalty for each
violation may not exceed $1,000,000 for a violation of a rule
adopted under Section 121.2015(a)(3). Each day a violation
continues may be considered a separate violation for the purpose of
penalty assessment.
(e) The guidelines must provide that a penalty in an amount
that exceeds $5,000 for a violation of a rule adopted under Section
121.2015(a)(3) may be assessed only if circumstances justify the
enhancement of the penalty.
SECTION 21. The heading to Section 186.007, Utilities Code,
is amended to read as follows:
Sec. 186.007. PUBLIC UTILITY COMMISSION WEATHER EMERGENCY
PREPAREDNESS REPORTS [REPORT].
SECTION 22. Sections 186.007(a-1), (b), (d), (e), and (f),
Utilities Code, are amended to read as follows:
(a-1) The commission shall analyze emergency operations
plans developed by electric utilities as defined by Section 31.002,
power generation companies as defined by Section 31.002,
municipally owned utilities, and electric cooperatives that
operate generation facilities in this state and retail electric
providers as defined by Section 31.002 and prepare a weather
emergency preparedness report on power [generation] weatherization
preparedness. In preparing the report, the commission shall:
(1) review [the] emergency operations plans
[currently] on file with the commission;
(2) analyze and determine the ability of the electric
grid to withstand extreme weather events in the upcoming year;
(3) consider the anticipated weather patterns for the
upcoming year as forecasted by the National Weather Service or any
similar state or national agency; and
(4) make recommendations on improving emergency
operations plans and procedures in order to ensure the continuity
of electric service.
(b) The commission shall [may] require an [electric
generation] entity subject to this section to file an updated
emergency operations plan if it finds that an emergency operations
plan on file does not contain adequate information to determine
whether the [electric generation] entity can provide adequate
electric [generation] services.
(d) The commission shall submit the report described by
Subsection (a-1) 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[, 2012].
(e) The commission may submit additional [subsequent]
weather emergency preparedness reports if the commission finds that
significant changes to weatherization techniques have occurred or
are necessary to protect consumers or vital services, or if there
have been changes to statutes or rules relating to weatherization
requirements. A report under this subsection must be submitted not
later than:
(1) March 1 for a summer weather emergency
preparedness report; and
(2) September 1 for a winter weather emergency
preparedness report.
(f) The emergency operations plans submitted for a [the]
report described by Subsection (a-1) and any additional
[subsequent] plans submitted under Subsection (e) are public
information except for the portions of the plan considered
confidential under Chapter 552, Government Code, or other state or
federal law. If portions of a plan are designated as confidential,
the plan shall be provided to the commission in a redacted form for
public inspection with the confidential portions removed. An
[electric generation] entity within the ERCOT power region shall
provide the entity's plan to ERCOT in its entirety.
SECTION 23. Subchapter A, Chapter 186, Utilities Code, is
amended by adding Section 186.008 to read as follows:
Sec. 186.008. RAILROAD COMMISSION WEATHER EMERGENCY
PREPAREDNESS REPORTS. (a) In this section, "commission" means the
Railroad Commission of Texas.
(b) The commission shall analyze emergency operations plans
developed by operators of gas supply chain facilities, as defined
by Section 86.044, Natural Resources Code, and by gas pipeline
facility operators regulated under Chapter 121 and prepare a
weather emergency preparedness report on natural gas supply chain
weatherization preparedness. In preparing the report, the
commission shall:
(1) review any emergency operations plans on file with
the commission;
(2) analyze and determine the ability of the natural
gas supply chain, as mapped under Section 418.309, Government Code,
to withstand extreme weather events in the upcoming year;
(3) consider the anticipated weather patterns for the
upcoming year as forecasted by the National Weather Service or any
similar state or national agency; and
(4) make recommendations on improving emergency
operations plans and procedures in order to ensure the continuity
of natural gas service.
(c) The commission shall require an entity subject to this
section to file an updated emergency operations plan if it finds
that an emergency operations plan on file does not contain adequate
information to determine whether the entity can provide adequate
natural gas services.
(d) The commission may adopt rules relating to the
implementation of the report described by Subsection (b).
(e) The commission shall submit the report described by
Subsection (b) 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.
(f) The commission may submit additional weather emergency
preparedness reports if the commission finds that significant
changes to weatherization techniques have occurred or are necessary
to protect consumers or vital services, or if there have been
changes to statutes or rules relating to weatherization
requirements. A report under this subsection must be submitted not
later than:
(1) March 1 for a summer weather emergency
preparedness report; and
(2) September 1 for a winter weather emergency
preparedness report.
(g) The emergency operations plans submitted for a report
described by Subsection (b) and any additional plans submitted
under Subsection (f) are public information except for the portions
of the plan considered confidential under Chapter 552, Government
Code, or other state or federal law. If portions of a plan are
designated as confidential, the plan shall be provided to the
commission in a redacted form for public inspection with the
confidential portions removed.
SECTION 24. Section 13.1395(a), Water Code, is amended to
read as follows:
(a) In this section:
(1) "Affected utility" means a retail public utility,
exempt utility, or provider or conveyor of potable or raw water
service that furnishes water service to more than one customer[:
[(A) in a county with a population of 3.3 million
or more; or
[(B) in a county with a population of 550,000 or
more adjacent to a county with a population of 3.3 million or more].
(2) "Emergency operations" means the operation of a
water system during an extended power outage at a minimum water
pressure of 35 pounds per square inch.
(3) "Extended power outage" means a power outage
lasting for more than 24 hours.
SECTION 25. Subchapter E, Chapter 13, Water Code, is
amended by adding Section 13.151 to read as follows:
Sec. 13.151. BILLING FOR SERVICES PROVIDED DURING EXTREME
WEATHER EMERGENCY. (a) In this section, "extreme weather
emergency" means a period when:
(1) the previous day's highest temperature did not
exceed 32 degrees Fahrenheit and the temperature is predicted to
remain at or below that level for the next 24 hours according to the
nearest National Weather Service reports; or
(2) the National Weather Service issues a heat
advisory for any county in the relevant service territory, or when
such an advisory has been issued on any one of the previous two
calendar days.
(b) A retail public utility that is required to possess a
certificate of public convenience and necessity or a district and
affected county that furnishes retail water or sewer utility
service shall defer collection of the full payment of bills that are
due during an extreme weather emergency until after the emergency
is over and shall work with customers to establish a pay schedule
for deferred bills.
SECTION 26. Section 13.414, Water Code, is amended by
adding Subsections (a-1), (d), and (e) to read as follows:
(a-1) Notwithstanding Subsection (a), a retail public
utility or affiliated interest that violates Section 13.151 is
subject to a civil penalty of not less than $100 nor more than
$1,000,000 for each violation.
(d) The commission by rule shall establish a classification
system to be used by a court under this section for violations of
Section 13.151 that includes a range of penalties that may be
recovered for each class of violation based on:
(1) the seriousness of the violation, including:
(A) the nature, circumstances, extent, and
gravity of a prohibited act; and
(B) the hazard or potential hazard created to the
health, safety, or economic welfare of the public;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
(e) The classification system established under Subsection
(d) shall provide that a penalty in an amount that exceeds $5,000
may be recovered only if the violation is included in the highest
class of violations in the classification system.
SECTION 27. Section 13.4151, Water Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), the penalty for a
violation of Section 13.151 may be in an amount not to exceed
$1,000,000 a day. The utility commission may assess a penalty in an
amount that exceeds $5,000 under this subsection only if the
utility commission determines that a penalty in an amount that
exceeds $5,000 is justified based on the seriousness of the
violation as classified under Subsection (b). Each day a violation
continues may be considered a separate violation.
SECTION 28. (a) The State Energy Plan Advisory Committee is
composed of 12 members. The governor, lieutenant governor, and
speaker of the house of representatives each shall appoint four
members to the advisory committee.
(b) Not later than September 1, 2022, the State Energy Plan
Advisory Committee shall prepare a comprehensive state energy plan.
The plan must:
(1) evaluate barriers in the electricity and natural
gas markets that prevent sound economic decisions;
(2) evaluate methods to improve the reliability,
stability, and affordability of electric service in this state;
(3) provide recommendations for removing the barriers
described by Subdivision (1) and using the methods described by
Subdivision (2); and
(4) evaluate the electricity market structure and
pricing mechanisms used in this state.
(c) The state energy plan prepared under this section must
be submitted to the legislature not later than September 1, 2022.
SECTION 29. The Public Utility Commission of Texas and the
independent organization certified under Section 39.151, Utilities
Code, shall review statutes, rules, protocols, and bylaws that
apply to conflicts of interest for commissioners and for members of
the governing body of the independent organization and submit to
the legislature a report on the effects the statutes, rules,
protocols, and bylaws have on the ability of the commission and the
independent organization to fulfill their duties.
SECTION 30. The Public Utility Commission of Texas shall
complete the first review required by Section 39.159(c), Utilities
Code, as added by this Act, not later than December 31, 2022.
SECTION 31. (a) Not later than November 1, 2021, each
affected utility, as defined by Section 13.1395, Water Code, as
amended by this Act, shall complete the submissions required by
Section 13.1396(c), Water Code.
(b) Not later than March 1, 2022, each affected utility
shall submit to the Texas Commission on Environmental Quality the
emergency preparedness plan required by Section 13.1395, Water
Code, as amended by this Act.
(c) Not later than July 1, 2022, each affected utility shall
implement the emergency preparedness plan approved by the Texas
Commission on Environmental Quality under Section 13.1395, Water
Code, as amended by this Act.
(d) An affected utility may file with the Texas Commission
on Environmental Quality a written request for an extension, not to
exceed 90 days, of the date by which the affected utility is
required under Subsection (b) of this section to submit the
affected utility's emergency preparedness plan or of the date by
which the affected utility is required under Subsection (c) of this
section to implement the affected utility's emergency preparedness
plan. The Texas Commission on Environmental Quality shall approve
the requested extension for good cause shown.
SECTION 32. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2021.
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