Texas 2021 87th Regular

Texas Senate Bill SB3 Comm Sub / Bill

Filed 05/20/2021

                    87R26352 JXC-D
 By: Schwertner, et al. S.B. No. 3
 (Paddie)
 Substitute the following for S.B. No. 3:  No.


 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, activation, and termination 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 criteria adopted under Section
 411.301(b) for the activation of the alert has been met, 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
 as soon as practicable after the Public Utility Commission of Texas
 or the Electric Reliability Council of Texas notifies the
 department that the criteria adopted under Section 411.301(b) for
 the termination of the alert has been met.
 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.  Subchapter C, Chapter 81, Natural Resources
 Code, is amended by adding Section 81.073 to read as follows:
 Sec. 81.073.  CRITICAL NATURAL GAS FACILITIES AND ENTITIES
 DURING AN ENERGY EMERGENCY. (a) The commission shall work with the
 Public Utility Commission of Texas to designate certain natural gas
 facilities and entities associated with providing natural gas in
 this state as critical during an energy emergency.
 (b)  At a minimum, the commission's rules must:
 (1)  establish eligibility and designation
 requirements for persons who own or operate a facility under the
 jurisdiction of the commission under Section 81.051(a) or engage in
 an activity under the jurisdiction of the commission under Section
 81.051(a) who must provide critical customer designation and
 critical natural gas supply information, as defined by the
 commission, to the entities described by Section 38.077(c)(1),
 Utilities Code;
 (2)  require that only facilities and entities that are
 prepared to operate during a weather emergency may be designated as
 a critical customer under this section; and
 (3)  consider essential operational elements when
 defining critical customer designations and critical natural gas
 supply information, including natural gas production, processing,
 and transportation and related produced water handling and disposal
 facilities and the delivery of natural gas to generators.
 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;
 (2)  not primarily used to support liquefied natural
 gas pretreatment, liquefaction, or regasification facilities in
 the business of exporting or importing liquefied natural gas to or
 from foreign countries;
 (3)  otherwise regulated by the commission under this
 subtitle; and
 (4)  not regulated by the commission under Chapter 121,
 Utilities Code.
 (b)  This section applies only to a gas supply chain facility
 included on the electricity supply chain map created under Section
 38.203, Utilities Code.
 (c)  The commission by rule shall require a gas supply chain
 facility operator to implement measures to prepare to operate
 during a weather emergency.
 (d)  The commission shall:
 (1)  inspect gas supply chain facilities for compliance
 with rules adopted under Subsection (c);
 (2)  provide the owner of a facility described by
 Subdivision (1) with a reasonable period of time in which to remedy
 any violation the commission discovers in an inspection; and
 (3)  report to the attorney general any violation that
 is not remedied in a reasonable period of time.
 (e)  The commission shall prioritize inspections conducted
 under Subsection (d)(1) based on risk level, as determined by the
 commission.
 (f)  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 operator to assess the operator's weatherization plans,
 procedures, and operations; and
 (2)  submit the assessment to the commission.
 (g)  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 (f).
 (h)  If the commission determines that a person has violated
 a rule adopted under this section, the commission shall notify the
 attorney general of a violation that is not remedied in a reasonable
 amount of time. 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 Subdivisions (3-a) and (3-b) to read as follows:
 (3-a)  "Critical care residential customer" means a
 residential customer who has a person permanently residing in the
 customer's home who has been diagnosed by a physician as being
 dependent upon an electric-powered medical device to sustain life.
 (3-b)  "Critical load industrial customer" means an
 industrial customer for whom an interruption or suspension of
 electric service will create a dangerous or life-threatening
 condition on the customer's premises.
 SECTION 8.  Section 17.003, Utilities Code, is amended by
 adding Subsection (d-1) 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 provide to the retail electric provider, and the
 retail electric provider shall periodically provide to the retail
 electric provider's retail customers together with bills sent to
 the customers, information about:
 (1)  the electric utility's procedures for implementing
 involuntary load shedding initiated by the independent
 organization certified under Section 39.151 for the ERCOT power
 region;
 (2)  the types of customers who may be considered
 critical care residential customers, critical load industrial
 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, a critical load
 industrial 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 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, critical load industrial
 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, a critical load
 industrial 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, critical load industrial
 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, a critical load
 industrial 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, 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.
 (c-1)  The independent organization certified under Section
 39.151 for the ERCOT power region shall prioritize inspections
 conducted under Subsection (c)(1) based on risk level, as
 determined by the organization.
 (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 any season and for any period of time.
 (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 and
 does not remedy that violation within a reasonable period of time.
 SECTION 13.  Section 35.004, Utilities Code, is amended by
 amending Subsection (e) and adding Subsections (f), (g), and (h) to
 read as follows:
 (e)  In this section, "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.
 (f)  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. [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.
 (g)  The commission shall:
 (1)  review the type, volume, and cost of ancillary
 services to determine whether those services will continue to meet
 the needs of the electricity market in the ERCOT power region;
 (2)  evaluate whether additional voluntary seasonal,
 month-ahead, or other forward products would enhance reliability in
 the ERCOT power region while providing adequate incentives for
 dispatchable generation; and
 (3)  ensure that all generation resources, energy
 storage resources, and loads in the ERCOT power region are allowed
 to provide ancillary services on a voluntary basis and that the
 ancillary services are procured and costs recovered on an equitable
 and nondiscriminatory basis.
 (h)  The commission may require the independent organization
 certified under Section 39.151 for the ERCOT power region to modify
 the design, procurement, and cost allocation of ancillary services
 for the region in a manner consistent with cost-causation
 principles and on a nondiscriminatory basis.
 SECTION 14.  Subchapter D, Chapter 38, Utilities Code, is
 amended by adding Sections 38.074, 38.075, 38.076, and 38.077 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 independent organization certified under Section
 39.151 for the ERCOT power region shall:
 (1)  inspect the facilities of each electric
 cooperative, municipally owned utility, and transmission and
 distribution utility providing transmission service in the ERCOT
 power region for compliance with the reliability standards;
 (2)  provide the owner of a facility described by
 Subdivision (1) 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.
 (c)  The independent organization certified under Section
 39.151 for the ERCOT power region shall prioritize inspections
 conducted under Subsection (b)(1) based on risk level, as
 determined by the organization.
 (d)  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 and
 does not remedy that violation within a reasonable period of time.
 (e)  Notwithstanding any other provision of this subtitle,
 the commission shall allow a transmission and distribution utility
 to design and operate a load management program for nonresidential
 customers to be used during extreme weather where the independent
 organization certified under Section 39.151 for the ERCOT power
 region has declared an emergency. A transmission and distribution
 utility implementing a load management program under this
 subsection shall be permitted to recover the reasonable and
 necessary costs of the load management program under Chapter 36. A
 load management program operated under this subsection is not
 considered a competitive service.
 Sec. 38.075.  INVOLUNTARY AND VOLUNTARY 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 the independent organization certified
 under Section 39.151 for the region during an energy emergency.
 (b)  The system must provide for allocation of the load
 shedding obligation to each electric cooperative, municipally
 owned utility, and transmission and distribution utility in
 different seasons based on historical seasonal peak demand in the
 service territory of 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 voluntary load reduction; and
 (2)  coordinate with municipalities, businesses, and
 customers that consume large amounts of electricity to encourage
 voluntary load reduction.
 (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.
 (f)  After each load shedding event, the commission may
 conduct an examination of the implementation of load shedding,
 including whether each electric cooperative, municipally owned
 utility, and transmission and distribution utility complied with
 its plan as filed with the commission under Subsection (c)(2).
 Sec. 38.076.  LOAD SHEDDING EXERCISES. (a) The commission
 and the independent organization certified for the ERCOT power
 region shall conduct simulated or tabletop 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
 simulated or tabletop exercise is conducted during a summer month
 and one simulated or tabletop exercise is conducted during a winter
 month.
 Sec. 38.077.  CRITICAL NATURAL GAS FACILITIES AND ENTITIES
 DURING AN ENERGY EMERGENCY. (a) The commission shall work with the
 Railroad Commission of Texas and adopt rules to establish a process
 to designate certain natural gas facilities and entities associated
 with providing natural gas in this state as critical during an
 energy emergency.
 (b)  The commission by rule shall require each electric
 cooperative, municipally owned utility, and transmission and
 distribution utility to exclude any circuits that provide power to
 an entity or facility designated under Section 81.073, Natural
 Resources Code, from participation in the cooperative's or
 utility'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
 cooperative or utility operates.
 (c)  At a minimum, the commission's rules must:
 (1)  ensure that electric cooperatives, municipally
 owned utilities, transmission and distribution utilities, and the
 independent organization certified under Section 39.151 for the
 ERCOT power region are provided with the information required by
 Section 81.073, Natural Resources Code;
 (2)  provide for a prioritization for load-shed
 purposes of the entities and facilities designated under Subsection
 (a) during an energy emergency; and
 (3)  provide discretion to electric cooperatives,
 municipally owned utilities, and transmission and distribution
 utilities to prioritize power delivery and power restoration among
 the customers on their respective systems, as circumstances
 require.
 SECTION 15.  Chapter 38, Utilities Code, is amended by
 adding Subchapter F to read as follows:
 SUBCHAPTER F. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND MAPPING
 COMMITTEE
 Sec. 38.201.  TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND
 MAPPING COMMITTEE. (a) In this subchapter, "electricity supply
 chain" means:
 (1)  facilities and methods used for producing,
 treating, processing, pressurizing, storing, or transporting
 natural gas for delivery to electric generation facilities; and
 (2)  critical infrastructure necessary to maintain
 electricity service.
 (b)  The Texas Electricity Supply Chain Security and Mapping
 Committee is established to:
 (1)  map this state's electricity supply chain;
 (2)  identify critical infrastructure sources in the
 electricity supply chain;
 (3)  establish best practices to prepare facilities
 that provide electric service and natural gas service in the
 electricity supply chain to maintain service in an extreme weather
 event and recommend oversight and compliance standards for those
 facilities; and
 (4)  designate priority service needs to prepare for,
 respond to, and recover from an extreme weather event.
 (c)  The committee is composed of:
 (1)  the executive director of the commission;
 (2)  the executive director of the Railroad Commission
 of Texas;
 (3)  the president and the chief executive officer of
 the independent organization certified under Section 39.151 for the
 ERCOT power region; and
 (4)  the chief of the Texas Division of Emergency
 Management.
 (d)  Each member of the committee may designate a personal
 representative from the member's organization to represent the
 member on the committee. A member is responsible for the acts and
 omissions of the designee related to the designee's representation
 on the committee.
 (e)  The executive director of the commission serves as the
 chair of the committee. The executive director of the Railroad
 Commission of Texas serves as vice chair of the committee.
 Sec. 38.202.  ADMINISTRATION. (a) The committee shall meet
 at least once each calendar quarter at a time determined by the
 committee and at the call of the chair.
 (b)  A member who is an ex officio member from a state agency
 shall be reimbursed for actual and necessary expenses in carrying
 out committee responsibilities from money appropriated for that
 purpose in the agency's budget. Other members of the committee may
 receive reimbursement for actual and necessary expenses in carrying
 out committee responsibilities from money appropriated for that
 purpose.
 (c)  The commission, the Railroad Commission of Texas, and
 the Texas Division of Emergency Management shall provide staff as
 necessary to assist the committee in carrying out the committee's
 duties and responsibilities.
 (d)  The independent organization certified under Section
 39.151 for the ERCOT power region shall provide staff as necessary
 to assist the committee in carrying out the committee's duties and
 responsibilities.
 (e)  Except as otherwise provided by this subchapter, the
 committee is subject to Chapters 2001, 551, and 552, Government
 Code.
 Sec. 38.203.  POWERS AND DUTIES OF COMMITTEE. (a) The
 committee shall:
 (1)  map the state's electricity supply chain in order
 to designate priority electricity service needs during extreme
 weather events;
 (2)  identify and designate the sources in the
 electricity supply chain necessary to operate critical
 infrastructure, as defined by Section 421.001, Government Code;
 (3)  develop a communication system between critical
 infrastructure sources, the commission, and the independent
 organization certified under Section 39.151 for the ERCOT power
 region to ensure that electricity and natural gas supplies in the
 electricity supply chain are prioritized to those sources during an
 extreme weather event; and
 (4)  establish best practices to prepare facilities
 that provide electric service and natural gas service in the
 electricity supply chain to maintain service in an extreme weather
 event and recommend oversight and compliance standards for those
 facilities.
 (b)  The committee shall update the electricity supply chain
 map at least once each year.
 (c)  The commission shall:
 (1)  create and maintain a database identifying
 critical infrastructure sources with priority electricity needs to
 be used during an extreme weather event; and
 (2)  update the database at least once each year.
 (d)  The information maintained in the database is
 confidential under Section 418.181, Government Code, and not
 subject to disclosure under Chapter 552, Government Code.
 Sec. 38.204.  MAPPING REPORT. (a) Not later than January 1,
 2022, the committee shall submit a report to the governor, the
 lieutenant governor, the speaker of the house of representatives,
 and the legislature on the activities and findings of the
 committee. The report must:
 (1)  provide an overview of the committee's findings
 regarding mapping the electricity supply chain and identifying
 sources necessary to operate critical infrastructure;
 (2)  recommend a clear and thorough communication
 system for the commission, the Railroad Commission of Texas, the
 Texas Division of Emergency Management, and the independent
 organization certified under Section 39.151 for the ERCOT power
 region and critical infrastructure sources in this state to ensure
 that electricity supply is prioritized to those sources during
 extreme weather events; and
 (3)  include a list of the established best practices
 and recommended oversight and compliance standards adopted under
 Section 38.203(a)(4).
 (b)  The report is public information except for portions
 considered confidential under Chapter 552, Government Code, or
 other state or federal law.
 SECTION 16.  Subchapter C, Chapter 39, Utilities Code, is
 amended by adding Section 39.110 to read as follows:
 Sec. 39.110.  WHOLESALE INDEXED PRODUCTS. (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)  Except as provided by Subsection (c), a retail electric
 provider may not offer a wholesale indexed product to a residential
 or small commercial customer.
 (c)  A retail electric provider may enroll a residential or
 small commercial customer in a wholesale indexed product only if:
 (1)  the enrollment complies with any other applicable
 law or commission rule;
 (2)  the product caps the monthly average all-in price
 per kilowatt hour of electricity charged to the customer at a
 maximum of 200 percent more than the monthly average price of
 electricity in this state during the same month for the prior year,
 as determined by monthly electric power industry reports required
 by the United States Energy Information Administration;
 (3)  the retail electric provider provides to each
 potential customer before enrollment notice of the highest monthly
 average price for the next six months for the product;
 (4)  the retail electric provider provides to each
 customer in each billing statement notice of the highest monthly
 average price for the next six months; and
 (5)  for service starting at the beginning of the next
 month, the retail electric provider allows the customer to switch
 without charge or penalty at the beginning of the next month to a
 fixed rate product offered by the provider to other residential and
 small commercial customers.
 (d)  This section does not apply to accounts of a customer on
 the same property or contiguous properties in which one or more of
 the accounts has a peak demand of at least 250 kilowatts.
 SECTION 17.  Subchapter D, Chapter 39, Utilities Code, is
 amended by adding Section 39.159 to read as follows:
 Sec. 39.159.  DISPATCHABLE GENERATION. (a)  For the
 purposes of this section, a generation facility is considered to be
 non-dispatchable if the facility's output is controlled primarily
 by forces outside of human control.
 (b)  The commission shall ensure that the independent
 organization certified under Section 39.151 for the ERCOT power
 region:
 (1)  establishes requirements to meet the reliability
 needs of the power region;
 (2)  periodically determines the quantity and
 characteristics of ancillary or reliability services necessary to
 ensure appropriate reliability during extreme heat and extreme cold
 weather conditions and during times of low non-dispatchable power
 production in the power region;
 (3)  procures ancillary or reliability services on a
 competitive basis to ensure appropriate reliability during extreme
 heat and extreme cold weather conditions and during times of low
 non-dispatchable power production in the power region;
 (4)  develops appropriate qualification and
 performance requirements for providing services under Subdivision
 (3), including appropriate penalties for failure to provide the
 services; and
 (5)  sizes the services procured under Subdivision (3)
 to prevent prolonged rotating outages due to net load variability
 in high demand and low supply scenarios.
 (c)  The commission shall ensure that:
 (1)  resources that provide services under Subsection
 (b) are dispatchable and able to meet continuous operating
 requirements for the season in which the service is procured;
 (2)  winter resource capability qualifications for a
 service described by Subsection (b) include on-site fuel storage,
 dual fuel capability, or fuel supply arrangements to ensure winter
 performance for several days; and
 (3)  summer resource capability qualifications for a
 service described by Subsection (b) include facilities or
 procedures to ensure operation under drought conditions.
 SECTION 18.  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)  may be located at a customer's point of delivery;
 (2)  is connected at a voltage less than 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 19.  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 20.  Section 121.2015, Utilities Code, is amended by
 amending Subsection (a) and adding Subsections (c-1), (c-2), (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 a gas pipeline facility operator must
 implement to prepare the gas pipeline facility to maintain service
 quality and reliability during extreme weather conditions if the
 gas pipeline facility directly serves a natural gas electric
 generation facility operating solely to provide power to the
 electric grid for the ERCOT power region and is included on the
 electricity supply chain map created under Section 38.203.
 (c-1)  The railroad commission shall:
 (1)  inspect gas pipeline facilities described by
 Subsection (a)(3) for compliance with rules adopted under
 Subsection (a)(3);
 (2)  provide the owner of a facility described by
 Subsection (a)(3) with a reasonable period of time in which to
 remedy any violation the railroad commission discovers in an
 inspection; and
 (3)  report to the attorney general any violation that
 is not remedied in a reasonable period of time.
 (c-2)  The railroad commission shall prioritize inspections
 conducted under Subsection (c-1)(1) based on risk level, as
 determined by the railroad commission.
 (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 operator 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
 pipeline facility described by Subsection (a)(3) 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) if the violation is not remedied in a reasonable
 period of time in the manner provided by this subchapter.
 SECTION 21.  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 22.  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 23.  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 24.  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 facilities that produce, treat, process,
 pressurize, store, or transport natural gas and are included on the
 electricity supply chain map created under Section 38.203 and
 prepare a weather emergency preparedness report on weatherization
 preparedness of those facilities. 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
 electricity supply chain, as mapped under Section 38.203, 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 for the electricity supply chain, as mapped
 under Section 38.203.
 (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 25.  Chapter 186, Utilities Code, is amended by
 adding Subchapter F to read as follows:
 SUBCHAPTER F. TEXAS ENERGY DISASTER RELIABILITY COUNCIL
 Sec. 186.101.  DEFINITIONS. In this subchapter:
 (1)  "Council" means the Texas Energy Disaster
 Reliability Council established under this subchapter.
 (2)  "Disaster" means:
 (A)  a disaster defined by Section 418.004,
 Government Code; or
 (B)  an extended power outage.
 (3)  "Division" means the Texas Division of Emergency
 Management.
 (4)  "Extended power outage" means an interruption in
 electric service lasting more than 24 hours.
 (5)  "Gas provider" means:
 (A)  a natural gas pipeline facility operator;
 (B)  an operator of a natural gas well; or
 (C)  an entity that produces, treats, processes,
 pressurizes, stores, or transports natural gas in this state or
 otherwise participates in the natural gas supply chain in this
 state.
 (6)  "Public utility" means an entity that generates,
 transmits, or distributes electric energy to the public, including
 an electric cooperative, an electric utility, a municipally owned
 utility, or a river authority.
 (7)  "Railroad commission" means the Railroad
 Commission of Texas.
 (8)  "Utility commission" means the Public Utility
 Commission of Texas.
 Sec. 186.102.  COUNCIL. The Texas Energy Disaster
 Reliability Council is established to:
 (1)  prevent extended natural gas supply failures or
 power outages caused by disasters;
 (2)  implement procedures to manage emergencies caused
 by disasters;
 (3)  maintain records of critical infrastructure
 facilities to maintain service in a disaster;
 (4)  coordinate the delivery of fuel to serve human
 needs natural gas customers and providers of electric generation
 service in a disaster;
 (5)  monitor supply chains for the electric grid in
 this state to minimize service disruptions; and
 (6)  study and make recommendations on methods to
 maintain the reliability of the electric grid in this state during a
 disaster, including methods for maintaining the reliability of
 natural gas supply networks.
 Sec. 186.103.  MEMBERS. (a)  The council consists of:
 (1)  the presiding officer of the utility commission;
 (2)  the executive director of the utility commission;
 (3)  the chairman of the railroad commission;
 (4)  the executive director of the railroad commission;
 (5)  the chief executive officer of the independent
 organization certified under Section 39.151 for the ERCOT power
 region; and
 (6)  the chief of the division.
 (b)  The chief of the division shall serve as the presiding
 officer of the council.
 (c)  The council shall hold meetings during the weeks of
 March 1 and September 1 of each year.
 (d)  In addition to the meetings required by Subsection (c),
 the council shall convene as soon as reasonably possible during or
 in anticipation of a disaster to address an actual or potential
 extended power outage caused by a disaster in order to coordinate
 fuel supplies and minimize the duration of the outage.
 (e)  In carrying out its functions, the council may consult
 and coordinate with:
 (1)  the United States Department of Energy;
 (2)  the United States Department of Homeland Security;
 (3)  the North American Electric Reliability
 Corporation;
 (4)  the Texas Reliability Entity;
 (5)  federal and state agencies;
 (6)  local governmental officials, including mayors,
 county judges, and emergency management officials;
 (7)  members of the electric industry;
 (8)  members of the natural gas industry; and
 (9)  grid security experts.
 (f)  A public utility or gas provider shall provide to the
 council any information related to a disaster requested by the
 council. Information obtained by the council under this subsection
 is confidential and not subject to disclosure by the council if the
 information is critical energy infrastructure information as
 defined by the independent organization certified under Section
 39.151 for the ERCOT power region or federal law.
 (g)  Except as provided by Subsection (g-1), the meetings of
 the council and information obtained or created by the council are
 not subject to the requirements of Chapter 551 or 552, Government
 Code.
 (g-1)  Information written, produced, collected, assembled,
 or maintained under law or in connection with the transaction of
 official business by the council or an officer or employee of the
 council is subject to Section 552.008, Government Code, in the same
 manner as public information.
 (h)  Chapter 2110, Government Code, does not apply to the
 council.
 Sec. 186.104.  REPORT. (a)  Not later than November 1 of
 each even-numbered year, the council shall submit to the
 legislature a report on the reliability and stability of the
 electric supply chain in this state.
 (b)  The report must include recommendations on methods to
 strengthen the electric supply chain in this state and to decrease
 the frequency of extended power outages caused by a disaster in this
 state.
 SECTION 26.  Subchapter E, Chapter 13, Water Code, is
 amended by adding Section 13.1394 to read as follows:
 Sec. 13.1394.  STANDARDS OF EMERGENCY OPERATIONS. (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:
 (A)  furnishes water service to more than one
 customer; and
 (B)  is not an affected utility under Section
 13.1395.
 (2)  "Emergency operations" means the operation of a
 water system during an extended power outage that impacts the
 operating affected utility.
 (3)  "Extended power outage" means a power outage
 lasting for more than 24 hours.
 (b)  An affected utility shall:
 (1)  ensure the emergency operation of its water system
 during an extended power outage at a minimum water pressure of 20
 pounds per square inch, or at a water pressure level approved by the
 commission, as soon as safe and practicable following the
 occurrence of a natural disaster; and
 (2)  adopt and submit to the commission for its
 approval:
 (A)  an emergency preparedness plan that
 demonstrates the utility's ability to provide the emergency
 operations described by Subdivision (1); and
 (B)  a timeline for implementing the plan
 described by Paragraph (A).
 (c)  The commission shall review an emergency preparedness
 plan submitted under Subsection (b). If the commission determines
 that the plan is not acceptable, the commission shall recommend
 changes to the plan. The commission must make its recommendations
 on or before the 90th day after the commission receives the plan.
 In accordance with commission rules, an emergency preparedness plan
 for a provider of potable water shall provide for one of the
 following:
 (1)  the maintenance of automatically starting
 auxiliary generators;
 (2)  the sharing of auxiliary generator capacity with
 one or more affected utilities, including through participation in
 a statewide mutual aid program;
 (3)  the negotiation of leasing and contracting
 agreements, including emergency mutual aid agreements with other
 retail public utilities, exempt utilities, or providers or
 conveyors of potable or raw water service, if the agreements
 provide for coordination with the division of emergency management
 in the governor's office;
 (4)  the use of portable generators capable of serving
 multiple facilities equipped with quick-connect systems;
 (5)  the use of on-site electrical generation or
 distributed generation facilities;
 (6)  hardening the electric transmission and
 distribution system serving the water system;
 (7)  for existing facilities, the maintenance of direct
 engine or right angle drives;
 (8)  designation of the water system as a critical load
 facility or redundant, isolated, or dedicated electrical feeds;
 (9)  water storage capabilities;
 (10)  water supplies delivered from outside the service
 area of the affected utility; or
 (11)  any other alternative determined by the
 commission to be acceptable.
 (d)  Each affected utility that supplies, provides, or
 conveys raw surface water shall include in its emergency
 preparedness plan under Subsection (b) provisions for
 demonstrating the capability of each raw water intake pump station,
 pump station, and pressure facility to provide raw water service to
 its wholesale customers during emergencies. This subsection does
 not apply to raw water services that are unnecessary or otherwise
 subject to interruption or curtailment during emergencies under a
 contract.
 (e)  The commission shall adopt rules to implement this
 section as an alternative to any rule requiring elevated storage.
 (f)  The commission shall provide an affected utility with
 access to the commission's financial, managerial, and technical
 contractors to assist the utility in complying with the applicable
 emergency preparedness plan submission deadline.
 (g)  The commission by rule shall create an emergency
 preparedness plan template for use by an affected utility when
 submitting a plan under this section. The emergency preparedness
 plan template shall contain:
 (1)  a list and explanation of the preparations an
 affected utility may make under Subsection (c) for the commission
 to approve the utility's emergency preparedness plan; and
 (2)  a list of all commission rules and standards
 pertaining to emergency preparedness plans.
 (h)  An emergency generator used as part of an approved
 emergency preparedness plan under Subsection (c) must be operated
 and maintained according to the manufacturer's specifications.
 (i)  The commission shall inspect each utility to ensure that
 the utility complies with the approved plan.
 (j)  The commission may grant a waiver of the requirements of
 this section to an affected utility if the commission determines
 that compliance with this section will cause a significant
 financial burden on customers of the affected utility.
 (k)  An affected utility may adopt and enforce limitations on
 water use while the utility is providing emergency operations.
 (l)  Except as specifically required by this section,
 information provided by an affected utility under this section is
 confidential and is not subject to disclosure under Chapter 552,
 Government Code.
 (m)  The commission shall coordinate with the utility
 commission in the administration of this section.
 SECTION 27.  The heading to Section 13.1395, Water Code, is
 amended to read as follows:
 Sec. 13.1395.  STANDARDS OF EMERGENCY OPERATIONS IN CERTAIN
 COUNTIES.
 SECTION 28.  Section 13.1396, Water Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  This section applies only to an affected utility, as
 defined by Section 13.1394 or 13.1395.
 SECTION 29.  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 the previous day's highest
 temperature did not exceed 10 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.
 (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 30.  Section 13.414, Water Code, is amended by
 adding Subsection (d) to read as follows:
 (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.
 SECTION 31.  Section 13.1396(a)(1), Water Code, is repealed.
 SECTION 32.  (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) of this subsection and using the
 methods described by Subdivision (2) of this subsection; and
 (4)  evaluate the electricity market structure and
 pricing mechanisms used in this state, including the ancillary
 services market and emergency response services.
 (c)  The state energy plan prepared under this section must
 be submitted to the legislature not later than September 1, 2022.
 SECTION 33.  The Public Utility Commission of Texas and the
 independent organization certified under Section 39.151, Utilities
 Code, shall annually 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 34.  (a) Not later than November 1, 2021, each
 affected utility, as defined by Section 13.1394, Water Code, as
 added 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 13.1394, Water
 Code, as added 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 13.1394, Water
 Code, as added by this Act.
 (d)  An affected utility, as defined by Section 13.1394,
 Water Code, as added by this Act, 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 35.  Not later than six months after the date the
 Texas Electricity Supply Chain Security and Mapping Committee
 produces the map required under Section 38.203, Utilities Code, as
 added by this Act, the Railroad Commission of Texas shall adopt
 rules necessary to implement:
 (1)  Section 86.044, Natural Resources Code, as added
 by this Act; and
 (2)  Section 121.2015, Utilities Code, as amended by
 this Act.
 SECTION 36.  Not later than six months after the effective
 date of this Act, the Public Utility Commission of Texas shall adopt
 rules necessary to implement:
 (1)  Section 35.0021, Utilities Code, as added by this
 Act; and
 (2)  Section 38.074, Utilities Code, as added by this
 Act.
 SECTION 37.  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.