Texas 2021 - 87th Regular

Texas Senate Bill SB3 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 3
	1	+	87R26352 JXC-D
	2	+	By: Schwertner, et al. S.B. No. 3
	3	+	(Paddie)
	4	+	Substitute the following for S.B. No. 3: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to preparing for, preventing, and responding to weather
6	10		emergencies and power outages; increasing the amount of
7	11		administrative and civil penalties.
8	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	13		SECTION 1. Chapter 411, Government Code, is amended by
10	14		adding Subchapter K-1 to read as follows:
11	15		SUBCHAPTER K-1. POWER OUTAGE ALERT
12	16		Sec. 411.301. POWER OUTAGE ALERT. (a) With the cooperation
13	17		of the Texas Department of Transportation, the Texas Division of
14	18		Emergency Management, the office of the governor, and the Public
15	19		Utility Commission of Texas, the department shall develop and
16	20		implement an alert to be activated when the power supply in this
17	21		state may be inadequate to meet demand.
18	22		(b) The Public Utility Commission of Texas by rule shall
19	23		adopt criteria for the content, activation, and termination of the
20	24		alert described by Subsection (a). The criteria must provide for an
21	25		alert to be regional or statewide.
22	26		Sec. 411.302. ADMINISTRATION. (a) The director is the
23	27		statewide coordinator of the power outage alert.
24	28		(b) The director shall adopt rules and issue directives as
25	29		necessary to ensure proper implementation of the power outage
26	30		alert. The rules and directives must include the procedures to be
27	31		used by the Public Utility Commission of Texas and the independent
28	32		organization certified under Section 39.151, Utilities Code, to
29	33		communicate with the director about the power outage alert.
30	34		Sec. 411.303. DEPARTMENT TO RECRUIT PARTICIPANTS. The
31	35		department shall recruit public and commercial television and radio
32	36		broadcasters, private commercial entities, state or local
33	37		governmental entities, the public, and other appropriate persons to
34	38		assist in developing and implementing the power outage alert
35	39		system.
36	40		Sec. 411.304. STATE AGENCIES. (a) A state agency
37	41		participating in the power outage alert system shall:
38	42		(1) cooperate with the department and assist in
39	43		developing and implementing the alert system; and
40	44		(2) establish a plan for providing relevant
41	45		information to its officers, investigators, or employees, as
42	46		appropriate, once the power outage alert system has been activated.
43	47		(b) In addition to its duties as a state agency under
44	48		Subsection (a), the Texas Department of Transportation shall
45	49		establish a plan for providing relevant information to the public
46	50		through an existing system of dynamic message signs located across
47	51		the state.
48	52		Sec. 411.305. ACTIVATION OF POWER OUTAGE ALERT. (a) When
49	53		the Public Utility Commission of Texas or an independent
50	54		organization certified under Section 39.151, Utilities Code,
51	55		notifies the department that the criteria adopted under Section
52	56		411.301(b) for the activation of the alert has been met, the
53	57		department shall confirm the accuracy of the information and, if
54	58		confirmed, immediately issue a power outage alert under this
55	59		subchapter in accordance with department rules.
56	60		(b) In issuing the power outage alert, the department shall
57	61		send the alert to designated media outlets in this state. Following
58	62		receipt of the alert, participating radio stations and television
59	63		stations and other participating media outlets may issue the alert
60	64		at designated intervals.
61	65		Sec. 411.306. CONTENT OF POWER OUTAGE ALERT. The power
62	66		outage alert must include a statement that electricity customers
63	67		may experience a power outage.
64	68		Sec. 411.307. TERMINATION OF POWER OUTAGE ALERT. The
65	69		director shall terminate any activation of the power outage alert
66	70		as soon as practicable after the Public Utility Commission of Texas
67	71		or the Electric Reliability Council of Texas notifies the
68	72		department that the criteria adopted under Section 411.301(b) for
69	73		the termination of the alert has been met.
70	74		Sec. 411.308. LIMITATION ON PARTICIPATION BY TEXAS
71	75		DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.304(b),
72	76		the Texas Department of Transportation is not required to use any
73	77		existing system of dynamic message signs in a statewide alert
74	78		system created under this subchapter if that department receives
75	79		notice from the United States Department of Transportation Federal
76	80		Highway Administration that the use of the signs would result in the
77	81		loss of federal highway funding or other punitive actions taken
78	82		against this state due to noncompliance with federal laws,
79	83		regulations, or policies.
80	84		SECTION 2. Section 418.048, Government Code, is amended to
81	85		read as follows:
82		-	Sec. 418.048. MONITORING WEATHER~~; DISASTER PREPAREDNESS~~
83		-	~~EDUCATION. (a) The division shall~~ keep continuously apprised of
84		-	~~weather conditions that present~~ danger of climatic activity, such
85		-	~~as precipitation, severe enough~~ to constitute a disaster.
	86	+	Sec. 418.048. MONITORING WEATHER. (a) The division shall
	87	+	keep continuously apprised of weather conditions that present
	88	+	danger of climatic activity, such as precipitation, severe enough
	89	+	to constitute a disaster.
86	90		(b) The division shall create a list of suggested actions
87	91		for state agencies and the public to take to prepare for winter
88	92		storms, organized by severity of storm based on the National
89	93		Weather Service Winter Storm Severity Index.
90		-	(c) The division shall develop disaster preparedness
91		-	educational materials that include instructions for preparing a
92		-	disaster kit containing supplies most needed in a disaster or
93		-	emergency, such as water, nonperishable food, medical supplies,
94		-	flashlights, and other essential items, to assist families and
95		-	businesses in adequately preparing for winter storms, hurricanes,
96		-	floods, drought, fires, and other potential disasters.
97		-	(d) The division shall post on the division's Internet
98		-	website and distribute to local governments and businesses the
99		-	educational materials and instructions developed under Subsection
100		-	(c).
101		-	SECTION 3. Chapter 418, Government Code, is amended by
102		-	adding Subchapter J to read as follows:
103		-	SUBCHAPTER J. TEXAS ENERGY RELIABILITY COUNCIL
104		-	Sec. 418.301. DEFINITIONS. In this subchapter:
105		-	(1) "Chief" means the division's chief.
106		-	(2) "Council" means the Texas Energy Reliability
107		-	Council.
108		-	Sec. 418.302. COUNCIL ESTABLISHED. (a) The Texas Energy
109		-	Reliability Council is established to:
110		-	(1) ensure that the energy and electric industries in
111		-	this state meet high priority human needs and address critical
112		-	infrastructure concerns; and
113		-	(2) enhance coordination and communication in the
114		-	energy and electric industries in this state.
115		-	(b) Chapter 2110 does not apply to the council.
116		-	Sec. 418.303. MEMBERSHIP. (a) The council is composed of:
117		-	(1) the chairman of the Railroad Commission of Texas;
118		-	(2) the presiding officer of the Public Utility
119		-	Commission of Texas;
120		-	(3) the chief executive of the Office of Public
121		-	Utility Counsel;
122		-	(4) the presiding officer of the Texas Commission on
123		-	Environmental Quality;
124		-	(5) the chair of the Texas Transportation Commission;
125		-	(6) a person to represent the independent organization
126		-	certified under Section 39.151, Utilities Code, for the ERCOT power
127		-	region, appointed by the governor;
128		-	(7) the chief;
129		-	(8) five persons to represent participants in the
130		-	natural gas supply chain in this state, appointed by the Railroad
131		-	Commission of Texas to represent as many types of participants as
132		-	possible;
133		-	(9) five persons to represent the electric industry,
134		-	appointed by the Public Utility Commission of Texas, including:
135		-	(A) one person to represent entities that provide
136		-	dispatchable electric energy to the power grid in this state;
137		-	(B) one person to represent transmission and
138		-	distribution utilities, as defined by Section 31.002, Utilities
139		-	Code;
140		-	(C) one person to represent retail electric
141		-	providers, as defined by Section 31.002, Utilities Code;
142		-	(D) one person to represent municipally owned
143		-	utilities, as defined by Section 11.003, Utilities Code; and
144		-	(E) one person to represent electric
145		-	cooperatives;
146		-	(10) three persons to represent energy sectors not
147		-	otherwise represented on the council, appointed by the Public
148		-	Utility Commission of Texas; and
149		-	(11) five persons to represent industrial concerns,
150		-	appointed by the governor, including:
151		-	(A) one person to represent motor fuel producers;
152		-	and
153		-	(B) one person to represent chemical
154		-	manufacturers.
155		-	(b) A member of the council described by Subsection (a)(1),
156		-	(2), (3), (4), (5), (6), or (7) may designate a person from the
157		-	member's agency to represent the member in any meeting.
158		-	(c) The council may request that a person collaborate with
159		-	the council to achieve the purposes described by Section 418.302.
160		-	Sec. 418.304. OFFICERS. (a) The chief shall serve as
161		-	presiding officer of the council.
162		-	(b) The council may select an assistant presiding officer
163		-	and secretary from among its members.
164		-	Sec. 418.305. COMPENSATION; REIMBURSEMENT. A member of the
165		-	council is not entitled to compensation or reimbursement of
166		-	expenses for service on the council.
167		-	Sec. 418.306. MEETINGS. (a) After its initial meeting, the
168		-	council shall meet at least twice each year at a time and place
169		-	determined by the chief.
170		-	(b) The council may meet at other times the council
171		-	considers appropriate. The presiding officer may call a meeting on
172		-	the officer's own motion.
173		-	Sec. 418.307. ADMINISTRATIVE SUPPORT. The division shall
174		-	provide administrative support to the council.
175		-	Sec. 418.308. GENERAL DUTIES OF COUNCIL. (a) The council
176		-	shall foster communication and planning to ensure preparedness for
177		-	making available and delivering energy and electricity in this
178		-	state to ensure that high priority human needs are met and critical
179		-	infrastructure needs are addressed.
180		-	(b) The council shall foster communication and coordination
181		-	between the energy and electric industries in this state.
182		-	Sec. 418.309. INFORMATION. (a) In this section:
183		-	(1) "Gas provider" means:
184		-	(A) a natural gas pipeline facility operator;
185		-	(B) an operator of a natural gas well; or
186		-	(C) an entity that produces, treats, processes,
187		-	pressurizes, stores, or transports natural gas in this state or
188		-	otherwise participates in the natural gas supply chain in this
189		-	state.
190		-	(2) "Public utility" means an entity that generates,
191		-	transmits, or distributes electric energy to the public, including
192		-	an electric cooperative, an electric utility, a municipally owned
193		-	utility, or a river authority.
194		-	(b) A public utility or gas provider shall provide to the
195		-	council any information related to a disaster requested by the
196		-	council. Information obtained by the council under this subsection
197		-	is confidential and not subject to disclosure by the council if the
198		-	information is critical energy infrastructure information as
199		-	defined by the independent organization certified under Section
200		-	39.151, Utilities Code, for the ERCOT power region or federal law.
201		-	(c) Except as provided by Subsection (d), the meetings of
202		-	the council and information obtained or created by the council are
203		-	not subject to the requirements of Chapter 551 or 552.
204		-	(d) Information written, produced, collected, assembled, or
205		-	maintained under law or in connection with the transaction of
206		-	official business by the council or an officer or employee of the
207		-	council is subject to Section 552.008 in the same manner as public
208		-	information.
209		-	Sec. 418.310. REPORT. (a) Not later than November 1 of
210		-	each even-numbered year, the council shall submit to the
211		-	legislature a report on the reliability and stability of the
212		-	electricity supply chain in this state.
213		-	(b) The report must include recommendations on methods to
214		-	strengthen the electricity supply chain in this state and to
215		-	decrease the frequency of extended power outages caused by a
216		-	disaster in this state.
217		-	SECTION 4. Subchapter C, Chapter 81, Natural Resources
	94	+	SECTION 3. Subchapter C, Chapter 81, Natural Resources
218	95		Code, is amended by adding Section 81.073 to read as follows:
219		-	Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES.
220		-	(a) The commission shall collaborate with the Public Utility
221		-	Commission of Texas to adopt rules to establish a process to
222		-	designate certain natural gas facilities and entities associated
223		-	with providing natural gas in this state as critical customers or
224		-	critical gas suppliers during energy emergencies.
225		-	(b) The rules must:
226		-	(1) establish criteria for designating persons who own
227		-	or operate a facility under the jurisdiction of the commission
228		-	under Section 81.051(a) or engage in an activity under the
229		-	jurisdiction of the commission under Section 81.051(a) who must
230		-	provide critical customer and critical gas supply information, as
231		-	defined by the commission, to the entities described by Section
232		-	38.074(b)(1), Utilities Code;
233		-	(2) consider essential operational elements when
234		-	defining critical customer designations and critical gas supply
235		-	information for the purposes of Subdivision (1), including natural
236		-	gas production, processing, and transportation, related produced
237		-	water handling and disposal facilities, and the delivery of natural
238		-	gas to generators of electric energy; and
239		-	(3) require that only facilities and entities that are
	96	+	Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES
	97	+	DURING AN ENERGY EMERGENCY. (a) The commission shall work with the
	98	+	Public Utility Commission of Texas to designate certain natural gas
	99	+	facilities and entities associated with providing natural gas in
	100	+	this state as critical during an energy emergency.
	101	+	(b) At a minimum, the commission's rules must:
	102	+	(1) establish eligibility and designation
	103	+	requirements for persons who own or operate a facility under the
	104	+	jurisdiction of the commission under Section 81.051(a) or engage in
	105	+	an activity under the jurisdiction of the commission under Section
	106	+	81.051(a) who must provide critical customer designation and
	107	+	critical natural gas supply information, as defined by the
	108	+	commission, to the entities described by Section 38.077(c)(1),
	109	+	Utilities Code;
	110	+	(2) require that only facilities and entities that are
240	111		prepared to operate during a weather emergency may be designated as
241		-	a critical customer under this section.
242		-	SECTION 5. Subchapter C, Chapter 86, Natural Resources
	112	+	a critical customer under this section; and
	113	+	(3) consider essential operational elements when
	114	+	defining critical customer designations and critical natural gas
	115	+	supply information, including natural gas production, processing,
	116	+	and transportation and related produced water handling and disposal
	117	+	facilities and the delivery of natural gas to generators.
	118	+	SECTION 4. Subchapter C, Chapter 86, Natural Resources
243	119		Code, is amended by adding Section 86.044 to read as follows:
244	120		Sec. 86.044. WEATHER EMERGENCY PREPAREDNESS. (a) In this
245	121		section, "gas supply chain facility" means a facility that is:
246	122		(1) used for producing, treating, processing,
247	123		pressurizing, storing, or transporting natural gas;
248	124		(2) not primarily used to support liquefied natural
249	125		gas pretreatment, liquefaction, or regasification facilities in
250	126		the business of exporting or importing liquefied natural gas to or
251	127		from foreign countries;
252	128		(3) otherwise regulated by the commission under this
253	129		subtitle; and
254	130		(4) not regulated by the commission under Chapter 121,
255	131		Utilities Code.
256	132		(b) This section applies only to a gas supply chain facility
257		-	that is:
258		-	(1) included on the electricity supply chain map
259		-	created under Section 38.203, Utilities Code; and
260		-	(2) designated as critical by the commission in the
261		-	manner provided by Section 81.073.
	133	+	included on the electricity supply chain map created under Section
	134	+	38.203, Utilities Code.
262	135		(c) The commission by rule shall require a gas supply chain
263	136		facility operator to implement measures to prepare to operate
264		-	during a weather emergency. In adopting the rules, the commission
265		-	shall take into consideration weather predictions produced by the
266		-	office of the state climatologist.
	137	+	during a weather emergency.
267	138		(d) The commission shall:
268	139		(1) inspect gas supply chain facilities for compliance
269	140		with rules adopted under Subsection (c);
270	141		(2) provide the owner of a facility described by
271	142		Subdivision (1) with a reasonable period of time in which to remedy
272	143		any violation the commission discovers in an inspection; and
273	144		(3) report to the attorney general any violation that
274	145		is not remedied in a reasonable period of time.
275	146		(e) The commission shall prioritize inspections conducted
276	147		under Subsection (d)(1) based on risk level, as determined by the
277	148		commission.
278	149		(f) The commission by rule shall require an operator of a
279		-	gas supply chain facility that experiences repeated
280		-	weather-related or major weather-related forced interruptions of
281		-	production to:
	150	+	gas supply chain facility that experiences repeated or major
	151	+	weather-related forced interruptions of production to:
282	152		(1) contract with a person who is not an employee of
283	153		the operator to assess the operator's weatherization plans,
284	154		procedures, and operations; and
285	155		(2) submit the assessment to the commission.
286	156		(g) The commission may require an operator of a gas supply
287	157		chain facility to implement appropriate recommendations included
288	158		in an assessment submitted to the commission under Subsection (f).
289	159		(h) If the commission determines that a person has violated
290	160		a rule adopted under this section, the commission shall notify the
291	161		attorney general of a violation that is not remedied in a reasonable
292	162		amount of time. The attorney general shall initiate a suit to
293	163		recover a penalty for the violation in the manner provided by
294	164		Subchapter G.
295		-	SECTION 6. Section 86.222, Natural Resources Code, is
	165	+	SECTION 5. Section 86.222, Natural Resources Code, is
296	166		amended by adding Subsections (a-1), (c), and (d) to read as
297	167		follows:
298	168		(a-1) Notwithstanding Subsection (a), a person who violates
299	169		a provision of a rule adopted under Section 86.044 is liable for a
300	170		penalty of not more than $1,000,000 for each offense.
301	171		(c) The commission by rule shall establish a classification
302	172		system to be used by a court under this subchapter for violations of
303	173		rules adopted under Section 86.044 that includes a range of
304	174		penalties that may be recovered for each class of violation based
305	175		on:
306	176		(1) the seriousness of the violation, including:
307	177		(A) the nature, circumstances, extent, and
308	178		gravity of a prohibited act; and
309	179		(B) the hazard or potential hazard created to the
310	180		health, safety, or economic welfare of the public;
311	181		(2) the history of previous violations;
312	182		(3) the amount necessary to deter future violations;
313	183		(4) efforts to correct the violation; and
314	184		(5) any other matter that justice may require.
315	185		(d) The classification system established under Subsection
316	186		(c) shall provide that a penalty in an amount that exceeds $5,000
317	187		may be recovered only if the violation is included in the highest
318	188		class of violations in the classification system.
319		-	SECTION 7. Section 15.023, Utilities Code, is amended by
	189	+	SECTION 6. Section 15.023, Utilities Code, is amended by
320	190		adding Subsection (b-1) to read as follows:
321	191		(b-1) Notwithstanding Subsection (b), the penalty for a
322		-	violation of a provision of ~~Section 35.0021 or 38.075~~ may be in an
323		-	~~amount not to~~ exceed $1,000,000 for a violation. Each day a
324		-	~~violation continues~~ or occurs is a separate violation for purposes
325		-	~~of imposing a~~ penalty.
326		-	SECTION 8. Section 17.002, Utilities Code, is amended by
	192	+	violation of a provision of Subtitle B may be in an amount not to
	193	+	exceed $1,000,000 for a violation. Each day a violation continues
	194	+	or occurs is a separate violation for purposes of imposing a
	195	+	penalty.
	196	+	SECTION 7. Section 17.002, Utilities Code, is amended by
327	197		adding Subdivisions (3-a) and (3-b) to read as follows:
328	198		(3-a) "Critical care residential customer" means a
329	199		residential customer who has a person permanently residing in the
330	200		customer's home who has been diagnosed by a physician as being
331	201		dependent upon an electric-powered medical device to sustain life.
332	202		(3-b) "Critical load industrial customer" means an
333	203		industrial customer for whom an interruption or suspension of
334	204		electric service will create a dangerous or life-threatening
335	205		condition on the customer's premises.
336		-	SECTION 9. Section 17.003, Utilities Code, is amended by
	206	+	SECTION 8. Section 17.003, Utilities Code, is amended by
337	207		adding Subsection (d-1) to read as follows:
338	208		(d-1) An electric utility providing electric delivery
339	209		service for a retail electric provider, as defined by Section
340	210		31.002, shall provide to the retail electric provider, and the
341	211		retail electric provider shall periodically provide to the retail
342	212		electric provider's retail customers together with bills sent to
343	213		the customers, information about:
344	214		(1) the electric utility's procedures for implementing
345	215		involuntary load shedding initiated by the independent
346	216		organization certified under Section 39.151 for the ERCOT power
347	217		region;
348	218		(2) the types of customers who may be considered
349	219		critical care residential customers, critical load industrial
350	220		customers, or critical load according to commission rules adopted
351		-	under Section 38.~~076~~;
	221	+	under Section 38.075;
352	222		(3) the procedure for a customer to apply to be
353	223		considered a critical care residential customer, a critical load
354	224		industrial customer, or critical load according to commission rules
355		-	adopted under Section 38.~~076~~; and
	225	+	adopted under Section 38.075; and
356	226		(4) reducing electricity use at times when involuntary
357	227		load shedding events may be implemented.
358		-	SECTION 10. Section 17.005, Utilities Code, is amended to
	228	+	SECTION 9. Section 17.005, Utilities Code, is amended to
359	229		read as follows:
360	230		Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED
361	231		UTILITIES. (a) A municipally owned utility may not be deemed to be
362	232		a "service provider" or "billing agent" for purposes of Sections
363	233		17.156(b) and (e).
364	234		(b) The governing body of a municipally owned utility shall
365	235		adopt, implement, and enforce rules that shall have the effect of
366	236		accomplishing the objectives set out in Sections 17.004(a) and (b)
367	237		and 17.102, as to the municipally owned utility within its
368	238		certificated service area.
369	239		(c) The governing body of a municipally owned utility or its
370	240		designee shall perform the dispute resolution function provided for
371	241		by Section 17.157 for disputes arising from services provided by
372	242		the municipally owned utility to electric customers served within
373	243		the municipally owned utility's certificated service area.
374	244		(d) With respect to electric customers served by a
375	245		municipally owned utility outside its certificated service area or
376	246		otherwise served through others' distribution facilities, after
377	247		retail competition begins as authorized by the legislature, the
378	248		provisions of this chapter as administered by the commission apply.
379	249		(e) Nothing in this chapter shall be deemed to apply to a
380	250		wholesale customer of a municipally owned utility.
381	251		(f) A municipally owned utility shall periodically provide
382	252		with bills sent to retail customers of the utility information
383	253		about:
384	254		(1) the utility's procedure for implementing
385	255		involuntary load shedding;
386	256		(2) the types of customers who may be considered
387	257		critical care residential customers, critical load industrial
388	258		customers, or critical load according to commission rules adopted
389		-	under Section 38.~~076~~;
	259	+	under Section 38.075;
390	260		(3) the procedure for a customer to apply to be
391	261		considered a critical care residential customer, a critical load
392	262		industrial customer, or critical load according to commission rules
393		-	adopted under Section 38.~~076~~; and
	263	+	adopted under Section 38.075; and
394	264		(4) reducing electricity use at times when involuntary
395	265		load shedding events may be implemented.
396		-	SECTION 11. Section 17.006, Utilities Code, is amended to
	266	+	SECTION 10. Section 17.006, Utilities Code, is amended to
397	267		read as follows:
398	268		Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC
399	269		COOPERATIVES. (a) An electric cooperative shall not be deemed to
400	270		be a "service provider" or "billing agent" for purposes of Sections
401	271		17.156(b) and (e).
402	272		(b) The electric cooperative shall adopt, implement, and
403	273		enforce rules that shall have the effect of accomplishing the
404	274		objectives set out in Sections 17.004(a) and (b) and 17.102.
405	275		(c) The board of directors of the electric cooperative or
406	276		its designee shall perform the dispute resolution function provided
407	277		for by Section 17.157 for electric customers served by the electric
408	278		cooperative within its certificated service area.
409	279		(d) With respect to electric customers served by an electric
410	280		cooperative outside its certificated service area or otherwise
411	281		served through others' distribution facilities, after the
412	282		legislature authorizes retail competition, the provisions of this
413	283		chapter as administered by the commission shall apply.
414	284		(e) Nothing in this chapter shall be deemed to apply to a
415	285		wholesale customer of an electric cooperative.
416	286		(f) An electric cooperative shall periodically provide with
417	287		bills sent to retail customers of the cooperative information
418	288		about:
419	289		(1) the cooperative's procedure for implementing
420	290		involuntary load shedding;
421	291		(2) the types of customers who may be considered
422	292		critical care residential customers, critical load industrial
423	293		customers, or critical load according to commission rules adopted
424		-	under Section 38.~~076~~;
	294	+	under Section 38.075;
425	295		(3) the procedure for a customer to apply to be
426	296		considered a critical care residential customer, a critical load
427	297		industrial customer, or critical load according to commission rules
428		-	adopted under Section 38.~~076~~; and
	298	+	adopted under Section 38.075; and
429	299		(4) reducing electricity use at times when involuntary
430	300		load shedding events may be implemented.
431		-	SECTION 12. The heading to Chapter 35, Utilities Code, is
	301	+	SECTION 11. The heading to Chapter 35, Utilities Code, is
432	302		amended to read as follows:
433	303		CHAPTER 35. [ALTERNATIVE] ENERGY PROVIDERS
434		-	SECTION 13. Subchapter A, Chapter 35, Utilities Code, is
	304	+	SECTION 12. Subchapter A, Chapter 35, Utilities Code, is
435	305		amended by adding Section 35.0021 to read as follows:
436	306		Sec. 35.0021. WEATHER EMERGENCY PREPAREDNESS. (a) This
437	307		section applies only to a municipally owned utility, electric
438	308		cooperative, power generation company, or exempt wholesale
439	309		generator that sells electric energy at wholesale in the ERCOT
440	310		power region.
441	311		(b) The commission by rule shall require each provider of
442	312		electric generation service described by Subsection (a) to
443	313		implement measures to prepare the provider's generation assets to
444	314		provide adequate electric generation service during a weather
445	315		emergency according to reliability standards adopted by the
446		-	commission. In adopting the rules, the commission shall take into
447		-	consideration weather predictions produced by the office of the
448		-	state climatologist.
	316	+	commission.
449	317		(c) The independent organization certified under Section
450	318		39.151 for the ERCOT power region shall:
451	319		(1) inspect generation assets in the ERCOT power
452	320		region for compliance with the reliability standards;
453	321		(2) provide the owner of a generation asset with a
454	322		reasonable period of time in which to remedy any violation the
455	323		independent organization discovers in an inspection; and
456	324		(3) report to the commission any violation.
457	325		(c-1) The independent organization certified under Section
458	326		39.151 for the ERCOT power region shall prioritize inspections
459	327		conducted under Subsection (c)(1) based on risk level, as
460	328		determined by the organization.
461	329		(d) The commission by rule shall require a provider of
462	330		electric generation service described by Subsection (a) for a
463	331		generation asset that experiences repeated or major
464	332		weather-related forced interruptions of service to:
465	333		(1) contract with a person who is not an employee of
466	334		the provider to assess the provider's weatherization plans,
467	335		procedures, and operations for that asset; and
468	336		(2) submit the assessment to the commission and the
469	337		independent organization certified under Section 39.151 for the
470	338		ERCOT power region.
471	339		(e) The commission may require a provider of electric
472	340		generation service described by Subsection (a) to implement
473	341		appropriate recommendations included in an assessment submitted to
474	342		the commission under Subsection (d).
475	343		(f) The independent organization certified under Section
476	344		39.151 for the ERCOT power region shall review, coordinate, and
477	345		approve or deny requests by providers of electric generation
478	346		service described by Subsection (a) for a planned power outage
479	347		during any season and for any period of time.
480	348		(g) The commission shall impose an administrative penalty
481	349		on an entity, including a municipally owned utility or an electric
482	350		cooperative, that violates a rule adopted under this section and
483	351		does not remedy that violation within a reasonable period of time.
484		-	SECTION 14. Section 35.004, Utilities Code, is amended by
	352	+	SECTION 13. Section 35.004, Utilities Code, is amended by
485	353		amending Subsection (e) and adding Subsections (f), (g), and (h) to
486	354		read as follows:
487	355		(e) In this section, "ancillary services" means services
488	356		necessary to facilitate the transmission of electric energy
489	357		including load following, standby power, backup power, reactive
490	358		power, and any other services as the commission may determine by
491	359		rule.
492	360		(f) The commission shall ensure that ancillary services
493	361		necessary to facilitate the transmission of electric energy are
494	362		available at reasonable prices with terms and conditions that are
495	363		not unreasonably preferential, prejudicial, discriminatory,
496	364		predatory, or anticompetitive. [In this subsection, "ancillary
497	365		services" means services necessary to facilitate the transmission
498	366		of electric energy including load following, standby power, backup
499	367		power, reactive power, and any other services as the commission may
500	368		determine by rule.] On the introduction of customer choice in the
501	369		ERCOT power region, acquisition of generation-related ancillary
502	370		services on a nondiscriminatory basis by the independent
503	371		organization in ERCOT on behalf of entities selling electricity at
504	372		retail shall be deemed to meet the requirements of this subsection.
505	373		(g) The commission shall:
506	374		(1) review the type, volume, and cost of ancillary
507	375		services to determine whether those services will continue to meet
508		-	the needs of the electricity market in the ERCOT power region; and
509		-	(2) evaluate whether additional services are needed
510		-	for reliability in the ERCOT power region while providing adequate
511		-	incentives for dispatchable generation.
512		-	(h) The commission shall require the independent
513		-	organization certified under Section 39.151 for the ERCOT power
514		-	region to modify the design, procurement, and cost allocation of
515		-	ancillary services for the region in a manner consistent with
516		-	cost-causation principles and on a nondiscriminatory basis.
517		-	SECTION 15. Subchapter B, Chapter 35, Utilities Code, is
518		-	amended by adding Section 35.037 to read as follows:
519		-	Sec. 35.037. FACILITATING CERTAIN INTERCOMPANY LANDFILL
520		-	GAS-TO-ELECTRICITY USE. (a) This section only applies in a county
521		-	with a population of more than one million in which a national
522		-	wildlife refuge is wholly or partly located.
523		-	(b) Notwithstanding any other provision of this title, and
524		-	for the purposes of reducing environmental emissions, putting to a
525		-	beneficial purpose landfill gas as an electric generation fuel that
526		-	would otherwise be flared, enabling the operation of electric
527		-	generation to a greater degree, and enhancing the reliability and
528		-	resilience of electric service in this state, a person who is not an
529		-	electric utility and who owns and operates equipment or facilities
530		-	to produce, generate, transmit, distribute, store, sell, or furnish
531		-	electricity produced by the use of landfill methane gas may:
532		-	(1) use the equipment or facilities to provide
533		-	electricity and electric service to the person and to the person's
534		-	affiliates without being considered to be an electric utility, a
535		-	public utility, a retail electric provider, a power marketer, or a
536		-	person providing aggregation;
537		-	(2) interconnect the equipment or facilities in a
538		-	timely manner and on reasonable and nondiscriminatory terms and
539		-	conditions with any electric utility, municipally owned utility, or
540		-	electric cooperative that has a retail service area for any portion
541		-	of the equipment or facilities; and
542		-	(3) receive backup, supplemental, or other electric
543		-	service for any of the person's or the person's affiliates'
544		-	facilities that consume electricity from any electric utility,
545		-	municipally owned utility, or electric cooperative that has a
546		-	retail service area for any portion of the person's facilities or
547		-	equipment that are interconnected regardless of whether those
548		-	facilities are in the same retail service area as the location of
549		-	the interconnection point.
550		-	(c) Backup, supplemental, or other electric service
551		-	provided under this section through an interconnection for a
552		-	person's electricity-consuming facilities that are connected to
553		-	the person's interconnected equipment or facilities does not
554		-	constitute a service area encroachment or other violation of law by
555		-	the electric utility, municipally owned utility, or electric
556		-	cooperative supplying the backup, supplemental, or other electric
557		-	service.
558		-	SECTION 16. Subchapter D, Chapter 38, Utilities Code, is
	376	+	the needs of the electricity market in the ERCOT power region;
	377	+	(2) evaluate whether additional voluntary seasonal,
	378	+	month-ahead, or other forward products would enhance reliability in
	379	+	the ERCOT power region while providing adequate incentives for
	380	+	dispatchable generation; and
	381	+	(3) ensure that all generation resources, energy
	382	+	storage resources, and loads in the ERCOT power region are allowed
	383	+	to provide ancillary services on a voluntary basis and that the
	384	+	ancillary services are procured and costs recovered on an equitable
	385	+	and nondiscriminatory basis.
	386	+	(h) The commission may require the independent organization
	387	+	certified under Section 39.151 for the ERCOT power region to modify
	388	+	the design, procurement, and cost allocation of ancillary services
	389	+	for the region in a manner consistent with cost-causation
	390	+	principles and on a nondiscriminatory basis.
	391	+	SECTION 14. Subchapter D, Chapter 38, Utilities Code, is
559	392		amended by adding Sections 38.074, 38.075, 38.076, and 38.077 to
560	393		read as follows:
561		-	Sec. 38.074. CRITICAL NATURAL GAS FACILITIES AND ENTITIES.
562		-	(a) The commission shall collaborate with the Railroad Commission
563		-	of Texas to adopt rules to establish a process to designate certain
564		-	natural gas facilities and entities associated with providing
565		-	natural gas in this state as critical during energy emergencies.
566		-	(b) The rules must:
567		-	(1) ensure that the independent organization
568		-	certified under Section 39.151 for the ERCOT power region and each
569		-	electric utility, municipally owned utility, and electric
570		-	cooperative providing service in the ERCOT power region is provided
571		-	with the information required by Section 81.073, Natural Resources
572		-	Code;
573		-	(2) provide for prioritizing for load-shed purposes
574		-	during an energy emergency the facilities and entities designated
575		-	under Subsection (a); and
576		-	(3) provide discretion to an electric utility,
577		-	municipally owned utility, or electric cooperative providing
578		-	service in the ERCOT power region to prioritize power delivery and
579		-	power restoration among the facilities and entities designated
580		-	under Subsection (a) on the utility's or cooperative's systems, as
581		-	circumstances require.
582		-	Sec. 38.075. WEATHER EMERGENCY PREPAREDNESS. (a) The
	394	+	Sec. 38.074. WEATHER EMERGENCY PREPAREDNESS. (a) The
583	395		commission by rule shall require each electric cooperative,
584	396		municipally owned utility, and transmission and distribution
585	397		utility providing transmission service in the ERCOT power region to
586	398		implement measures to prepare the cooperative's or utility's
587	399		facilities to maintain service quality and reliability during a
588	400		weather emergency according to standards adopted by the commission.
589		-	In adopting the rules, the commission shall take into consideration
590		-	weather predictions produced by the office of the state
591		-	climatologist.
592	401		(b) The independent organization certified under Section
593	402		39.151 for the ERCOT power region shall:
594	403		(1) inspect the facilities of each electric
595	404		cooperative, municipally owned utility, and transmission and
596	405		distribution utility providing transmission service in the ERCOT
597	406		power region for compliance with the reliability standards;
598	407		(2) provide the owner of a facility described by
599	408		Subdivision (1) with a reasonable period of time in which to remedy
600	409		any violation the independent organization discovers in an
601	410		inspection; and
602	411		(3) report to the commission any violation that is not
603	412		remedied in a reasonable period of time.
604	413		(c) The independent organization certified under Section
605	414		39.151 for the ERCOT power region shall prioritize inspections
606	415		conducted under Subsection (b)(1) based on risk level, as
607	416		determined by the organization.
608	417		(d) The commission shall impose an administrative penalty
609	418		on an entity, including a municipally owned utility or an electric
610	419		cooperative, that violates a rule adopted under this section and
611	420		does not remedy that violation within a reasonable period of time.
612	421		(e) Notwithstanding any other provision of this subtitle,
613	422		the commission shall allow a transmission and distribution utility
614	423		to design and operate a load management program for nonresidential
615		-	customers to be used where the independent organization certified
616		-	under Section 39.151 for the ERCOT power region has declared a Level
617		-	2 Emergency or a higher level of emergency or has otherwise directed
618		-	the transmission and distribution utility to shed load. A
619		-	transmission and distribution utility implementing a load
620		-	management program under this subsection shall be permitted to
621		-	recover the reasonable and necessary costs of the load management
622		-	program under Chapter 36. A load management program operated under
623		-	this subsection is not considered a competitive service.
624		-	Sec. 38.076. INVOLUNTARY AND VOLUNTARY LOAD SHEDDING. (a)
	424	+	customers to be used during extreme weather where the independent
	425	+	organization certified under Section 39.151 for the ERCOT power
	426	+	region has declared an emergency. A transmission and distribution
	427	+	utility implementing a load management program under this
	428	+	subsection shall be permitted to recover the reasonable and
	429	+	necessary costs of the load management program under Chapter 36. A
	430	+	load management program operated under this subsection is not
	431	+	considered a competitive service.
	432	+	Sec. 38.075. INVOLUNTARY AND VOLUNTARY LOAD SHEDDING. (a)
625	433		The commission by rule shall adopt a system to allocate load
626	434		shedding among electric cooperatives, municipally owned utilities,
627	435		and transmission and distribution utilities providing transmission
628	436		service in the ERCOT power region during an involuntary load
629	437		shedding event initiated by the independent organization certified
630	438		under Section 39.151 for the region during an energy emergency.
631	439		(b) The system must provide for allocation of the load
632	440		shedding obligation to each electric cooperative, municipally
633	441		owned utility, and transmission and distribution utility in
634	442		different seasons based on historical seasonal peak demand in the
635	443		service territory of the electric cooperative, municipally owned
636	444		utility, or transmission and distribution utility.
637	445		(c) The commission by rule shall:
638	446		(1) categorize types of critical load that may be
639	447		given the highest priority for power restoration; and
640	448		(2) require electric cooperatives, municipally owned
641	449		utilities, and transmission and distribution utilities providing
642	450		transmission service in the ERCOT power region to submit to the
643	451		commission and the independent organization certified under
644	452		Section 39.151 for the region:
645	453		(A) customers or circuits the cooperative or
646	454		utility has designated as critical load; and
647	455		(B) a plan for participating in load shedding in
648	456		response to an involuntary load shedding event described by
649	457		Subsection (a).
650	458		(d) The commission by rule shall require electric
651	459		cooperatives and municipally owned utilities providing
652	460		transmission service in the ERCOT power region to:
653	461		(1) maintain lists of customers willing to voluntarily
654	462		participate in voluntary load reduction; and
655	463		(2) coordinate with municipalities, businesses, and
656	464		customers that consume large amounts of electricity to encourage
657	465		voluntary load reduction.
658	466		(e) This section does not abridge, enlarge, or modify the
659	467		obligation of an electric cooperative, a municipally owned utility,
660	468		or a transmission and distribution utility to comply with federal
661	469		reliability standards.
662	470		(f) After each load shedding event, the commission may
663	471		conduct an examination of the implementation of load shedding,
664	472		including whether each electric cooperative, municipally owned
665	473		utility, and transmission and distribution utility complied with
666	474		its plan as filed with the commission under Subsection (c)(2).
667		-	Sec. 38.~~077~~. LOAD SHEDDING EXERCISES. (a) The commission
	475	+	Sec. 38.076. LOAD SHEDDING EXERCISES. (a) The commission
668	476		and the independent organization certified for the ERCOT power
669	477		region shall conduct simulated or tabletop load shedding exercises
670	478		with providers of electric generation service and transmission and
671	479		distribution service in the ERCOT power region.
672	480		(b) The commission shall ensure that each year at least one
673	481		simulated or tabletop exercise is conducted during a summer month
674	482		and one simulated or tabletop exercise is conducted during a winter
675	483		month.
676		-	SECTION 17. Chapter 38, Utilities Code, is amended by
	484	+	Sec. 38.077. CRITICAL NATURAL GAS FACILITIES AND ENTITIES
	485	+	DURING AN ENERGY EMERGENCY. (a) The commission shall work with the
	486	+	Railroad Commission of Texas and adopt rules to establish a process
	487	+	to designate certain natural gas facilities and entities associated
	488	+	with providing natural gas in this state as critical during an
	489	+	energy emergency.
	490	+	(b) The commission by rule shall require each electric
	491	+	cooperative, municipally owned utility, and transmission and
	492	+	distribution utility to exclude any circuits that provide power to
	493	+	an entity or facility designated under Section 81.073, Natural
	494	+	Resources Code, from participation in the cooperative's or
	495	+	utility's attempt to shed load in response to a rolling blackout
	496	+	initiated by an independent organization certified under Section
	497	+	39.151 or another reliability council or power pool in which the
	498	+	cooperative or utility operates.
	499	+	(c) At a minimum, the commission's rules must:
	500	+	(1) ensure that electric cooperatives, municipally
	501	+	owned utilities, transmission and distribution utilities, and the
	502	+	independent organization certified under Section 39.151 for the
	503	+	ERCOT power region are provided with the information required by
	504	+	Section 81.073, Natural Resources Code;
	505	+	(2) provide for a prioritization for load-shed
	506	+	purposes of the entities and facilities designated under Subsection
	507	+	(a) during an energy emergency; and
	508	+	(3) provide discretion to electric cooperatives,
	509	+	municipally owned utilities, and transmission and distribution
	510	+	utilities to prioritize power delivery and power restoration among
	511	+	the customers on their respective systems, as circumstances
	512	+	require.
	513	+	SECTION 15. Chapter 38, Utilities Code, is amended by
677	514		adding Subchapter F to read as follows:
678	515		SUBCHAPTER F. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND MAPPING
679	516		COMMITTEE
680	517		Sec. 38.201. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND
681	518		MAPPING COMMITTEE. (a) In this subchapter, "electricity supply
682	519		chain" means:
683	520		(1) facilities and methods used for producing,
684	521		treating, processing, pressurizing, storing, or transporting
685	522		natural gas for delivery to electric generation facilities; and
686	523		(2) critical infrastructure necessary to maintain
687	524		electricity service.
688	525		(b) The Texas Electricity Supply Chain Security and Mapping
689	526		Committee is established to:
690	527		(1) map this state's electricity supply chain;
691	528		(2) identify critical infrastructure sources in the
692	529		electricity supply chain;
693	530		(3) establish best practices to prepare facilities
694	531		that provide electric service and natural gas service in the
695	532		electricity supply chain to maintain service in an extreme weather
696	533		event and recommend oversight and compliance standards for those
697	534		facilities; and
698	535		(4) designate priority service needs to prepare for,
699	536		respond to, and recover from an extreme weather event.
700	537		(c) The committee is composed of:
701	538		(1) the executive director of the commission;
702	539		(2) the executive director of the Railroad Commission
703	540		of Texas;
704	541		(3) the president and the chief executive officer of
705	542		the independent organization certified under Section 39.151 for the
706	543		ERCOT power region; and
707	544		(4) the chief of the Texas Division of Emergency
708	545		Management.
709	546		(d) Each member of the committee may designate a personal
710	547		representative from the member's organization to represent the
711	548		member on the committee. A member is responsible for the acts and
712	549		omissions of the designee related to the designee's representation
713	550		on the committee.
714	551		(e) The executive director of the commission serves as the
715	552		chair of the committee. The executive director of the Railroad
716	553		Commission of Texas serves as vice chair of the committee.
717	554		Sec. 38.202. ADMINISTRATION. (a) The committee shall meet
718	555		at least once each calendar quarter at a time determined by the
719	556		committee and at the call of the chair.
720	557		(b) A member who is an ex officio member from a state agency
721	558		shall be reimbursed for actual and necessary expenses in carrying
722	559		out committee responsibilities from money appropriated for that
723	560		purpose in the agency's budget. Other members of the committee may
724	561		receive reimbursement for actual and necessary expenses in carrying
725	562		out committee responsibilities from money appropriated for that
726	563		purpose.
727	564		(c) The commission, the Railroad Commission of Texas, and
728	565		the Texas Division of Emergency Management shall provide staff as
729	566		necessary to assist the committee in carrying out the committee's
730	567		duties and responsibilities.
731	568		(d) The independent organization certified under Section
732	569		39.151 for the ERCOT power region shall provide staff as necessary
733	570		to assist the committee in carrying out the committee's duties and
734	571		responsibilities.
735	572		(e) Except as otherwise provided by this subchapter, the
736		-	committee is ~~not~~ subject to Chapters 2001, 551, and 552, Government
	573	+	committee is subject to Chapters 2001, 551, and 552, Government
737	574		Code.
738		-	(f) Information written, produced, collected, assembled, or
739		-	maintained under law or in connection with the transaction of
740		-	official business by the committee or an officer or employee of the
741		-	committee is subject to Section 552.008, Government Code. This
742		-	subsection does not apply to the physical locations of critical
743		-	facilities, maps created under this subchapter, or proprietary
744		-	information created or gathered during the mapping process.
745	575		Sec. 38.203. POWERS AND DUTIES OF COMMITTEE. (a) The
746	576		committee shall:
747	577		(1) map the state's electricity supply chain in order
748	578		to designate priority electricity service needs during extreme
749	579		weather events;
750	580		(2) identify and designate the sources in the
751	581		electricity supply chain necessary to operate critical
752	582		infrastructure, as defined by Section 421.001, Government Code;
753	583		(3) develop a communication system between critical
754	584		infrastructure sources, the commission, and the independent
755	585		organization certified under Section 39.151 for the ERCOT power
756	586		region to ensure that electricity and natural gas supplies in the
757	587		electricity supply chain are prioritized to those sources during an
758	588		extreme weather event; and
759	589		(4) establish best practices to prepare facilities
760	590		that provide electric service and natural gas service in the
761	591		electricity supply chain to maintain service in an extreme weather
762	592		event and recommend oversight and compliance standards for those
763	593		facilities.
764	594		(b) The committee shall update the electricity supply chain
765	595		map at least once each year.
766	596		(c) The commission shall:
767	597		(1) create and maintain a database identifying
768	598		critical infrastructure sources with priority electricity needs to
769	599		be used during an extreme weather event; and
770	600		(2) update the database at least once each year.
771	601		(d) The information maintained in the database is
772	602		confidential under Section 418.181, Government Code, and not
773	603		subject to disclosure under Chapter 552, Government Code.
774		-	(e) The committee shall provide the Texas Energy
775		-	Reliability Council with access to the electricity supply chain
776		-	map.
777	604		Sec. 38.204. MAPPING REPORT. (a) Not later than January 1,
778	605		2022, the committee shall submit a report to the governor, the
779	606		lieutenant governor, the speaker of the house of representatives,
780		-	~~the legislature,~~ and the ~~Texas Energy Reliability Council~~ on the
781		-	~~activities and findings of the~~ committee. The report must:
	607	+	and the legislature on the activities and findings of the
	608	+	committee. The report must:
782	609		(1) provide an overview of the committee's findings
783	610		regarding mapping the electricity supply chain and identifying
784	611		sources necessary to operate critical infrastructure;
785	612		(2) recommend a clear and thorough communication
786	613		system for the commission, the Railroad Commission of Texas, the
787	614		Texas Division of Emergency Management, and the independent
788	615		organization certified under Section 39.151 for the ERCOT power
789	616		region and critical infrastructure sources in this state to ensure
790	617		that electricity supply is prioritized to those sources during
791	618		extreme weather events; and
792	619		(3) include a list of the established best practices
793	620		and recommended oversight and compliance standards adopted under
794	621		Section 38.203(a)(4).
795	622		(b) The report is public information except for portions
796	623		considered confidential under Chapter 552, Government Code, or
797	624		other state or federal law.
798		-	SECTION 18. Subchapter D, Chapter 39, Utilities Code, is
799		-	amended by adding Sections 39.159 and 39.160 to read as follows:
	625	+	SECTION 16. Subchapter C, Chapter 39, Utilities Code, is
	626	+	amended by adding Section 39.110 to read as follows:
	627	+	Sec. 39.110. WHOLESALE INDEXED PRODUCTS. (a) In this
	628	+	section, "wholesale indexed product" means a retail electric
	629	+	product in which the price a customer pays for electricity includes
	630	+	a direct pass-through of real-time settlement point prices
	631	+	determined by the independent organization certified under Section
	632	+	39.151 for the ERCOT power region.
	633	+	(b) Except as provided by Subsection (c), a retail electric
	634	+	provider may not offer a wholesale indexed product to a residential
	635	+	or small commercial customer.
	636	+	(c) A retail electric provider may enroll a residential or
	637	+	small commercial customer in a wholesale indexed product only if:
	638	+	(1) the enrollment complies with any other applicable
	639	+	law or commission rule;
	640	+	(2) the product caps the monthly average all-in price
	641	+	per kilowatt hour of electricity charged to the customer at a
	642	+	maximum of 200 percent more than the monthly average price of
	643	+	electricity in this state during the same month for the prior year,
	644	+	as determined by monthly electric power industry reports required
	645	+	by the United States Energy Information Administration;
	646	+	(3) the retail electric provider provides to each
	647	+	potential customer before enrollment notice of the highest monthly
	648	+	average price for the next six months for the product;
	649	+	(4) the retail electric provider provides to each
	650	+	customer in each billing statement notice of the highest monthly
	651	+	average price for the next six months; and
	652	+	(5) for service starting at the beginning of the next
	653	+	month, the retail electric provider allows the customer to switch
	654	+	without charge or penalty at the beginning of the next month to a
	655	+	fixed rate product offered by the provider to other residential and
	656	+	small commercial customers.
	657	+	(d) This section does not apply to accounts of a customer on
	658	+	the same property or contiguous properties in which one or more of
	659	+	the accounts has a peak demand of at least 250 kilowatts.
	660	+	SECTION 17. Subchapter D, Chapter 39, Utilities Code, is
	661	+	amended by adding Section 39.159 to read as follows:
800	662		Sec. 39.159. DISPATCHABLE GENERATION. (a) For the
801	663		purposes of this section, a generation facility is considered to be
802	664		non-dispatchable if the facility's output is controlled primarily
803	665		by forces outside of human control.
804	666		(b) The commission shall ensure that the independent
805	667		organization certified under Section 39.151 for the ERCOT power
806	668		region:
807	669		(1) establishes requirements to meet the reliability
808	670		needs of the power region;
809		-	(2) periodically~~, but at least annually,~~ determines
810		-	~~the quantity and~~ characteristics of ancillary or reliability
811		-	~~services necessary to~~ ensure appropriate reliability during
812		-	~~extreme heat and extreme cold~~ weather conditions and during times
813		-	~~of low non-dispatchable power~~ production in the power region;
	671	+	(2) periodically determines the quantity and
	672	+	characteristics of ancillary or reliability services necessary to
	673	+	ensure appropriate reliability during extreme heat and extreme cold
	674	+	weather conditions and during times of low non-dispatchable power
	675	+	production in the power region;
814	676		(3) procures ancillary or reliability services on a
815	677		competitive basis to ensure appropriate reliability during extreme
816	678		heat and extreme cold weather conditions and during times of low
817	679		non-dispatchable power production in the power region;
818	680		(4) develops appropriate qualification and
819	681		performance requirements for providing services under Subdivision
820	682		(3), including appropriate penalties for failure to provide the
821	683		services; and
822	684		(5) sizes the services procured under Subdivision (3)
823	685		to prevent prolonged rotating outages due to net load variability
824	686		in high demand and low supply scenarios.
825	687		(c) The commission shall ensure that:
826	688		(1) resources that provide services under Subsection
827	689		(b) are dispatchable and able to meet continuous operating
828	690		requirements for the season in which the service is procured;
829	691		(2) winter resource capability qualifications for a
830	692		service described by Subsection (b) include on-site fuel storage,
831	693		dual fuel capability, or fuel supply arrangements to ensure winter
832	694		performance for several days; and
833	695		(3) summer resource capability qualifications for a
834	696		service described by Subsection (b) include facilities or
835	697		procedures to ensure operation under drought conditions.
836		-	Sec. 39.160. WHOLESALE PRICING PROCEDURES. (a) The
837		-	commission by rule shall establish an emergency pricing program for
838		-	the wholesale electric market.
839		-	(b) The emergency pricing program must take effect if the
840		-	high system-wide offer cap has been in effect for 12 hours in a
841		-	24-hour period after initially reaching the high system-wide offer
842		-	cap. The commission by rule shall determine the criteria for the
843		-	emergency pricing program to cease.
844		-	(c) The emergency pricing program may not allow an emergency
845		-	pricing program cap to exceed any nonemergency high system-wide
846		-	offer cap.
847		-	(d) The commission by rule shall establish an ancillary
848		-	services cap to be in effect during the period an emergency pricing
849		-	program is in effect.
850		-	(e) Any wholesale pricing procedure that has a low
851		-	system-wide offer cap may not allow the low system-wide offer cap to
852		-	exceed the high system-wide offer cap.
853		-	(f) The commission shall review each system-wide offer cap
854		-	program adopted by the commission, including the emergency pricing
855		-	program, at least once every five years to determine whether to
856		-	update aspects of the program.
857		-	(g) The emergency pricing program must allow generators to
858		-	be reimbursed for reasonable, verifiable operating costs that
859		-	exceed the emergency cap.
860		-	SECTION 19. Subchapter Z, Chapter 39, Utilities Code, is
	698	+	SECTION 18. Subchapter Z, Chapter 39, Utilities Code, is
861	699		amended by adding Section 39.9165 to read as follows:
862	700		Sec. 39.9165. DISTRIBUTED GENERATION REPORTING. (a) In
863	701		this section, "distributed generation" is an electrical generating
864	702		facility that:
865	703		(1) may be located at a customer's point of delivery;
866	704		(2) is connected at a voltage less than 60 kilovolts;
867	705		and
868	706		(3) may be connected in parallel operation to the
869	707		utility system.
870	708		(b) An independent organization certified under Section
871	709		39.151 shall require an owner or operator of distributed generation
872	710		to register with the organization and interconnecting transmission
873	711		and distribution utility information necessary for the
874	712		interconnection of the distributed generator.
875	713		(c) This section does not apply to distributed generation
876	714		serving a residential property.
877		-	SECTION 20. Section 105.023, Utilities Code, is amended by
	715	+	SECTION 19. Section 105.023, Utilities Code, is amended by
878	716		adding Subsections (b-1), (e), and (f) to read as follows:
879	717		(b-1) Notwithstanding Subsection (b), a civil penalty under
880	718		this section shall be in an amount of not less than $1,000 and not
881	719		more than $1,000,000 for each violation of Section 104.258(c).
882	720		(e) The railroad commission by rule shall establish a
883	721		classification system to be used by a court under this subchapter
884	722		for violations of Section 104.258(c) that includes a range of
885	723		penalties that may be recovered for each class of violation based
886	724		on:
887	725		(1) the seriousness of the violation, including:
888	726		(A) the nature, circumstances, extent, and
889	727		gravity of a prohibited act; and
890	728		(B) the hazard or potential hazard created to the
891	729		health, safety, or economic welfare of the public;
892	730		(2) the history of previous violations;
893	731		(3) the amount necessary to deter future violations;
894	732		(4) efforts to correct the violation; and
895	733		(5) any other matter that justice may require.
896	734		(f) The classification system established under Subsection
897	735		(e) shall provide that a penalty in an amount that exceeds $5,000
898	736		may be recovered only if the violation is included in the highest
899	737		class of violations in the classification system.
900		-	SECTION 21. Section 121.2015, Utilities Code, is amended by
901		-	amending Subsection (a) and adding Subsections (~~a-1), (~~c-1), (c-2),
902		-	~~(d),~~ (e), and (f) to read as follows:
	738	+	SECTION 20. Section 121.2015, Utilities Code, is amended by
	739	+	amending Subsection (a) and adding Subsections (c-1), (c-2), (d),
	740	+	(e), and (f) to read as follows:
903	741		(a) The railroad commission shall adopt rules regarding:
904	742		(1) public education and awareness relating to gas
905	743		pipeline facilities; [and]
906	744		(2) community liaison for responding to an emergency
907	745		relating to a gas pipeline facility; and
908	746		(3) measures a gas pipeline facility operator must
909	747		implement to prepare the gas pipeline facility to maintain service
910	748		quality and reliability during extreme weather conditions if the
911		-	gas pipeline facility:
912		-	(A) directly serves a natural gas electric
	749	+	gas pipeline facility directly serves a natural gas electric
913	750		generation facility operating solely to provide power to the
914		-	electric grid for the ERCOT power region or for the ERCOT power
915		-	region and an adjacent power region; and
916		-	(B) is included on the electricity supply chain
917		-	map created under Section 38.203.
918		-	(a-1) In adopting rules under Subsection (a)(3), the
919		-	railroad commission shall take into consideration weather
920		-	predictions produced by the office of the state climatologist.
	751	+	electric grid for the ERCOT power region and is included on the
	752	+	electricity supply chain map created under Section 38.203.
921	753		(c-1) The railroad commission shall:
922	754		(1) inspect gas pipeline facilities described by
923	755		Subsection (a)(3) for compliance with rules adopted under
924	756		Subsection (a)(3);
925	757		(2) provide the owner of a facility described by
926	758		Subsection (a)(3) with a reasonable period of time in which to
927	759		remedy any violation the railroad commission discovers in an
928	760		inspection; and
929	761		(3) report to the attorney general any violation that
930	762		is not remedied in a reasonable period of time.
931	763		(c-2) The railroad commission shall prioritize inspections
932	764		conducted under Subsection (c-1)(1) based on risk level, as
933	765		determined by the railroad commission.
934	766		(d) The railroad commission by rule shall require a gas
935		-	pipeline facility operator described by Subsection (a)(3) that
936		-	experiences repeated or major weather-related forced interruptions
937		-	of service to:
	767	+	pipeline facility operator that experiences repeated or major
	768	+	weather-related forced interruptions of service to:
938	769		(1) contract with a person who is not an employee of
939	770		the operator to assess the operator's weatherization plans,
940	771		procedures, and operations; and
941	772		(2) submit the assessment to the commission.
942	773		(e) The railroad commission may require an operator of a gas
943	774		pipeline facility described by Subsection (a)(3) to implement
944	775		appropriate recommendations included in an assessment submitted to
945	776		the commission under Subsection (d).
946	777		(f) The railroad commission shall assess an administrative
947	778		penalty against a person who violates a rule adopted under
948	779		Subsection (a)(3) if the violation is not remedied in a reasonable
949	780		period of time in the manner provided by this subchapter.
950		-	SECTION 22. Section 121.206, Utilities Code, is amended by
	781	+	SECTION 21. Section 121.206, Utilities Code, is amended by
951	782		adding Subsections (b-1) and (e) to read as follows:
952	783		(b-1) Notwithstanding Subsection (b), the penalty for each
953	784		violation may not exceed $1,000,000 for a violation of a rule
954	785		adopted under Section 121.2015(a)(3). Each day a violation
955	786		continues may be considered a separate violation for the purpose of
956	787		penalty assessment.
957	788		(e) The guidelines must provide that a penalty in an amount
958	789		that exceeds $5,000 for a violation of a rule adopted under Section
959	790		121.2015(a)(3) may be assessed only if circumstances justify the
960	791		enhancement of the penalty.
961		-	SECTION 23. The heading to Section 186.007, Utilities Code,
	792	+	SECTION 22. The heading to Section 186.007, Utilities Code,
962	793		is amended to read as follows:
963	794		Sec. 186.007. PUBLIC UTILITY COMMISSION WEATHER EMERGENCY
964	795		PREPAREDNESS REPORTS [REPORT].
965		-	SECTION 24. Sections 186.007(a-1), (b), (d), (e), and (f),
	796	+	SECTION 23. Sections 186.007(a-1), (b), (d), (e), and (f),
966	797		Utilities Code, are amended to read as follows:
967	798		(a-1) The commission shall analyze emergency operations
968	799		plans developed by electric utilities as defined by Section 31.002,
969	800		power generation companies as defined by Section 31.002,
970	801		municipally owned utilities, and electric cooperatives that
971	802		operate generation facilities in this state and retail electric
972	803		providers as defined by Section 31.002 and prepare a weather
973	804		emergency preparedness report on power [generation] weatherization
974	805		preparedness. In preparing the report, the commission shall:
975	806		(1) review [the] emergency operations plans
976	807		[currently] on file with the commission;
977	808		(2) analyze and determine the ability of the electric
978	809		grid to withstand extreme weather events in the upcoming year;
979	810		(3) consider the anticipated weather patterns for the
980	811		upcoming year as forecasted by the National Weather Service or any
981	812		similar state or national agency; and
982	813		(4) make recommendations on improving emergency
983	814		operations plans and procedures in order to ensure the continuity
984	815		of electric service.
985	816		(b) The commission shall [may] require an [electric
986	817		generation] entity subject to this section to file an updated
987	818		emergency operations plan if it finds that an emergency operations
988	819		plan on file does not contain adequate information to determine
989	820		whether the [electric generation] entity can provide adequate
990	821		electric [generation] services.
991	822		(d) The commission shall submit the report described by
992	823		Subsection (a-1) to the lieutenant governor, the speaker of the
993	824		house of representatives, and the members of the legislature not
994	825		later than September 30 of each even-numbered year[, 2012].
995	826		(e) The commission may submit additional [subsequent]
996	827		weather emergency preparedness reports if the commission finds that
997	828		significant changes to weatherization techniques have occurred or
998	829		are necessary to protect consumers or vital services, or if there
999	830		have been changes to statutes or rules relating to weatherization
1000	831		requirements. A report under this subsection must be submitted not
1001	832		later than:
1002	833		(1) March 1 for a summer weather emergency
1003	834		preparedness report; and
1004	835		(2) September 1 for a winter weather emergency
1005	836		preparedness report.
1006	837		(f) The emergency operations plans submitted for a [the]
1007	838		report described by Subsection (a-1) and any additional
1008	839		[subsequent] plans submitted under Subsection (e) are public
1009	840		information except for the portions of the plan considered
1010	841		confidential under Chapter 552, Government Code, or other state or
1011	842		federal law. If portions of a plan are designated as confidential,
1012	843		the plan shall be provided to the commission in a redacted form for
1013	844		public inspection with the confidential portions removed. An
1014	845		[electric generation] entity within the ERCOT power region shall
1015	846		provide the entity's plan to ERCOT in its entirety.
1016		-	SECTION 25. Subchapter A, Chapter 186, Utilities Code, is
	847	+	SECTION 24. Subchapter A, Chapter 186, Utilities Code, is
1017	848		amended by adding Section 186.008 to read as follows:
1018	849		Sec. 186.008. RAILROAD COMMISSION WEATHER EMERGENCY
1019	850		PREPAREDNESS REPORTS. (a) In this section, "commission" means the
1020	851		Railroad Commission of Texas.
1021	852		(b) The commission shall analyze emergency operations plans
1022	853		developed by operators of facilities that produce, treat, process,
1023	854		pressurize, store, or transport natural gas and are included on the
1024	855		electricity supply chain map created under Section 38.203 and
1025	856		prepare a weather emergency preparedness report on weatherization
1026	857		preparedness of those facilities. In preparing the report, the
1027	858		commission shall:
1028	859		(1) review any emergency operations plans on file with
1029	860		the commission;
1030	861		(2) analyze and determine the ability of the
1031	862		electricity supply chain, as mapped under Section 38.203, to
1032	863		withstand extreme weather events in the upcoming year;
1033	864		(3) consider the anticipated weather patterns for the
1034	865		upcoming year as forecasted by the National Weather Service or any
1035	866		similar state or national agency; and
1036	867		(4) make recommendations on improving emergency
1037	868		operations plans and procedures in order to ensure the continuity
1038	869		of natural gas service for the electricity supply chain, as mapped
1039	870		under Section 38.203.
1040	871		(c) The commission shall require an entity subject to this
1041	872		section to file an updated emergency operations plan if it finds
1042	873		that an emergency operations plan on file does not contain adequate
1043	874		information to determine whether the entity can provide adequate
1044	875		natural gas services.
1045	876		(d) The commission may adopt rules relating to the
1046	877		implementation of the report described by Subsection (b).
1047	878		(e) The commission shall submit the report described by
1048	879		Subsection (b) to the lieutenant governor, the speaker of the house
1049	880		of representatives, and the members of the legislature not later
1050	881		than September 30 of each even-numbered year.
1051	882		(f) The commission may submit additional weather emergency
1052	883		preparedness reports if the commission finds that significant
1053	884		changes to weatherization techniques have occurred or are necessary
1054	885		to protect consumers or vital services, or if there have been
1055	886		changes to statutes or rules relating to weatherization
1056	887		requirements. A report under this subsection must be submitted not
1057	888		later than:
1058	889		(1) March 1 for a summer weather emergency
1059	890		preparedness report; and
1060	891		(2) September 1 for a winter weather emergency
1061	892		preparedness report.
1062	893		(g) The emergency operations plans submitted for a report
1063	894		described by Subsection (b) and any additional plans submitted
1064	895		under Subsection (f) are public information except for the portions
1065	896		of the plan considered confidential under Chapter 552, Government
1066	897		Code, or other state or federal law. If portions of a plan are
1067	898		designated as confidential, the plan shall be provided to the
1068	899		commission in a redacted form for public inspection with the
1069	900		confidential portions removed.
	901	+	SECTION 25. Chapter 186, Utilities Code, is amended by
	902	+	adding Subchapter F to read as follows:
	903	+	SUBCHAPTER F. TEXAS ENERGY DISASTER RELIABILITY COUNCIL
	904	+	Sec. 186.101. DEFINITIONS. In this subchapter:
	905	+	(1) "Council" means the Texas Energy Disaster
	906	+	Reliability Council established under this subchapter.
	907	+	(2) "Disaster" means:
	908	+	(A) a disaster defined by Section 418.004,
	909	+	Government Code; or
	910	+	(B) an extended power outage.
	911	+	(3) "Division" means the Texas Division of Emergency
	912	+	Management.
	913	+	(4) "Extended power outage" means an interruption in
	914	+	electric service lasting more than 24 hours.
	915	+	(5) "Gas provider" means:
	916	+	(A) a natural gas pipeline facility operator;
	917	+	(B) an operator of a natural gas well; or
	918	+	(C) an entity that produces, treats, processes,
	919	+	pressurizes, stores, or transports natural gas in this state or
	920	+	otherwise participates in the natural gas supply chain in this
	921	+	state.
	922	+	(6) "Public utility" means an entity that generates,
	923	+	transmits, or distributes electric energy to the public, including
	924	+	an electric cooperative, an electric utility, a municipally owned
	925	+	utility, or a river authority.
	926	+	(7) "Railroad commission" means the Railroad
	927	+	Commission of Texas.
	928	+	(8) "Utility commission" means the Public Utility
	929	+	Commission of Texas.
	930	+	Sec. 186.102. COUNCIL. The Texas Energy Disaster
	931	+	Reliability Council is established to:
	932	+	(1) prevent extended natural gas supply failures or
	933	+	power outages caused by disasters;
	934	+	(2) implement procedures to manage emergencies caused
	935	+	by disasters;
	936	+	(3) maintain records of critical infrastructure
	937	+	facilities to maintain service in a disaster;
	938	+	(4) coordinate the delivery of fuel to serve human
	939	+	needs natural gas customers and providers of electric generation
	940	+	service in a disaster;
	941	+	(5) monitor supply chains for the electric grid in
	942	+	this state to minimize service disruptions; and
	943	+	(6) study and make recommendations on methods to
	944	+	maintain the reliability of the electric grid in this state during a
	945	+	disaster, including methods for maintaining the reliability of
	946	+	natural gas supply networks.
	947	+	Sec. 186.103. MEMBERS. (a) The council consists of:
	948	+	(1) the presiding officer of the utility commission;
	949	+	(2) the executive director of the utility commission;
	950	+	(3) the chairman of the railroad commission;
	951	+	(4) the executive director of the railroad commission;
	952	+	(5) the chief executive officer of the independent
	953	+	organization certified under Section 39.151 for the ERCOT power
	954	+	region; and
	955	+	(6) the chief of the division.
	956	+	(b) The chief of the division shall serve as the presiding
	957	+	officer of the council.
	958	+	(c) The council shall hold meetings during the weeks of
	959	+	March 1 and September 1 of each year.
	960	+	(d) In addition to the meetings required by Subsection (c),
	961	+	the council shall convene as soon as reasonably possible during or
	962	+	in anticipation of a disaster to address an actual or potential
	963	+	extended power outage caused by a disaster in order to coordinate
	964	+	fuel supplies and minimize the duration of the outage.
	965	+	(e) In carrying out its functions, the council may consult
	966	+	and coordinate with:
	967	+	(1) the United States Department of Energy;
	968	+	(2) the United States Department of Homeland Security;
	969	+	(3) the North American Electric Reliability
	970	+	Corporation;
	971	+	(4) the Texas Reliability Entity;
	972	+	(5) federal and state agencies;
	973	+	(6) local governmental officials, including mayors,
	974	+	county judges, and emergency management officials;
	975	+	(7) members of the electric industry;
	976	+	(8) members of the natural gas industry; and
	977	+	(9) grid security experts.
	978	+	(f) A public utility or gas provider shall provide to the
	979	+	council any information related to a disaster requested by the
	980	+	council. Information obtained by the council under this subsection
	981	+	is confidential and not subject to disclosure by the council if the
	982	+	information is critical energy infrastructure information as
	983	+	defined by the independent organization certified under Section
	984	+	39.151 for the ERCOT power region or federal law.
	985	+	(g) Except as provided by Subsection (g-1), the meetings of
	986	+	the council and information obtained or created by the council are
	987	+	not subject to the requirements of Chapter 551 or 552, Government
	988	+	Code.
	989	+	(g-1) Information written, produced, collected, assembled,
	990	+	or maintained under law or in connection with the transaction of
	991	+	official business by the council or an officer or employee of the
	992	+	council is subject to Section 552.008, Government Code, in the same
	993	+	manner as public information.
	994	+	(h) Chapter 2110, Government Code, does not apply to the
	995	+	council.
	996	+	Sec. 186.104. REPORT. (a) Not later than November 1 of
	997	+	each even-numbered year, the council shall submit to the
	998	+	legislature a report on the reliability and stability of the
	999	+	electric supply chain in this state.
	1000	+	(b) The report must include recommendations on methods to
	1001	+	strengthen the electric supply chain in this state and to decrease
	1002	+	the frequency of extended power outages caused by a disaster in this
	1003	+	state.
1070	1004		SECTION 26. Subchapter E, Chapter 13, Water Code, is
1071	1005		amended by adding Section 13.1394 to read as follows:
1072	1006		Sec. 13.1394. STANDARDS OF EMERGENCY OPERATIONS. (a) In
1073	1007		this section:
1074	1008		(1) "Affected utility" means a retail public utility,
1075	1009		exempt utility, or provider or conveyor of potable or raw water
1076	1010		service that:
1077	1011		(A) furnishes water service to more than one
1078	1012		customer; and
1079	1013		(B) is not an affected utility under Section
1080	1014		13.1395.
1081	1015		(2) "Emergency operations" means the operation of a
1082	1016		water system during an extended power outage that impacts the
1083	1017		operating affected utility.
1084	1018		(3) "Extended power outage" means a power outage
1085	1019		lasting for more than 24 hours.
1086	1020		(b) An affected utility shall:
1087	1021		(1) ensure the emergency operation of its water system
1088	1022		during an extended power outage at a minimum water pressure of 20
1089	1023		pounds per square inch, or at a water pressure level approved by the
1090	1024		commission, as soon as safe and practicable following the
1091	1025		occurrence of a natural disaster; and
1092	1026		(2) adopt and submit to the commission for its
1093	1027		approval:
1094	1028		(A) an emergency preparedness plan that
1095	1029		demonstrates the utility's ability to provide the emergency
1096	1030		operations described by Subdivision (1); and
1097	1031		(B) a timeline for implementing the plan
1098	1032		described by Paragraph (A).
1099	1033		(c) The commission shall review an emergency preparedness
1100	1034		plan submitted under Subsection (b). If the commission determines
1101	1035		that the plan is not acceptable, the commission shall recommend
1102	1036		changes to the plan. The commission must make its recommendations
1103	1037		on or before the 90th day after the commission receives the plan.
1104	1038		In accordance with commission rules, an emergency preparedness plan
1105		-	for a provider of potable water shall provide for one ~~or more~~ of the
	1039	+	for a provider of potable water shall provide for one of the
1106	1040		following:
1107	1041		(1) the maintenance of automatically starting
1108	1042		auxiliary generators;
1109	1043		(2) the sharing of auxiliary generator capacity with
1110	1044		one or more affected utilities, including through participation in
1111	1045		a statewide mutual aid program;
1112	1046		(3) the negotiation of leasing and contracting
1113	1047		agreements, including emergency mutual aid agreements with other
1114	1048		retail public utilities, exempt utilities, or providers or
1115	1049		conveyors of potable or raw water service, if the agreements
1116	1050		provide for coordination with the division of emergency management
1117	1051		in the governor's office;
1118	1052		(4) the use of portable generators capable of serving
1119	1053		multiple facilities equipped with quick-connect systems;
1120	1054		(5) the use of on-site electrical generation or
1121	1055		distributed generation facilities;
1122	1056		(6) hardening the electric transmission and
1123	1057		distribution system serving the water system;
1124	1058		(7) for existing facilities, the maintenance of direct
1125	1059		engine or right angle drives;
1126	1060		(8) designation of the water system as a critical load
1127	1061		facility or redundant, isolated, or dedicated electrical feeds;
1128	1062		(9) water storage capabilities;
1129	1063		(10) water supplies delivered from outside the service
1130		-	area of the affected utility;
1131		-	(11) the ability to provide water through artesian
1132		-	flows;
1133		-	(12) redundant interconnectivity between pressure
1134		-	zones;
1135		-	(13) emergency water demand rules to maintain
1136		-	emergency operations; or
1137		-	(14) any other alternative determined by the
	1064	+	area of the affected utility; or
	1065	+	(11) any other alternative determined by the
1138	1066		commission to be acceptable.
1139	1067		(d) Each affected utility that supplies, provides, or
1140	1068		conveys raw surface water shall include in its emergency
1141	1069		preparedness plan under Subsection (b) provisions for
1142	1070		demonstrating the capability of each raw water intake pump station,
1143	1071		pump station, and pressure facility to provide raw water service to
1144	1072		its wholesale customers during emergencies. This subsection does
1145	1073		not apply to raw water services that are unnecessary or otherwise
1146	1074		subject to interruption or curtailment during emergencies under a
1147	1075		contract.
1148	1076		(e) The commission shall adopt rules to implement this
1149	1077		section as an alternative to any rule requiring elevated storage.
1150	1078		(f) The commission shall provide an affected utility with
1151	1079		access to the commission's financial, managerial, and technical
1152	1080		contractors to assist the utility in complying with the applicable
1153	1081		emergency preparedness plan submission deadline.
1154	1082		(g) The commission by rule shall create an emergency
1155	1083		preparedness plan template for use by an affected utility when
1156	1084		submitting a plan under this section. The emergency preparedness
1157	1085		plan template shall contain:
1158	1086		(1) a list and explanation of the preparations an
1159	1087		affected utility may make under Subsection (c) for the commission
1160	1088		to approve the utility's emergency preparedness plan; and
1161	1089		(2) a list of all commission rules and standards
1162	1090		pertaining to emergency preparedness plans.
1163	1091		(h) An emergency generator used as part of an approved
1164	1092		emergency preparedness plan under Subsection (c) must be operated
1165	1093		and maintained according to the manufacturer's specifications.
1166	1094		(i) The commission shall inspect each utility to ensure that
1167	1095		the utility complies with the approved plan.
1168		-	(j) The commission ~~shall consider whether compliance with~~
1169		-	this section ~~will cause a significant financial burden on customers~~
1170		-	~~of an affected utility when making recommended changes under~~
1171		-	~~Subsection (c)~~.
	1096	+	(j) The commission may grant a waiver of the requirements of
	1097	+	this section to an affected utility if the commission determines
	1098	+	that compliance with this section will cause a significant
	1099	+	financial burden on customers of the affected utility.
1172	1100		(k) An affected utility may adopt and enforce limitations on
1173	1101		water use while the utility is providing emergency operations.
1174	1102		(l) Except as specifically required by this section,
1175	1103		information provided by an affected utility under this section is
1176	1104		confidential and is not subject to disclosure under Chapter 552,
1177	1105		Government Code.
1178	1106		(m) The commission shall coordinate with the utility
1179	1107		commission in the administration of this section.
1180	1108		SECTION 27. The heading to Section 13.1395, Water Code, is
1181	1109		amended to read as follows:
1182	1110		Sec. 13.1395. STANDARDS OF EMERGENCY OPERATIONS IN CERTAIN
1183	1111		COUNTIES.
1184		-	SECTION 28. Section 13.1395(d), Water Code, is amended to
1185		-	read as follows:
1186		-	(d) This subsection does not apply to raw water services
1187		-	that are unnecessary or otherwise subject to interruption or
1188		-	curtailment during emergencies under a contract. Each affected
1189		-	utility that supplies, provides, or conveys surface water shall
1190		-	include in its emergency preparedness plan under Subsection (b)
1191		-	provisions:
1192		-	(1) for the actual installation and maintenance of
1193		-	automatically starting auxiliary generators or distributive
1194		-	generation facilities for each raw water intake pump station, water
1195		-	treatment plant, pump station, and pressure facility necessary to
1196		-	provide water to its wholesale customers during emergencies; or
1197		-	(2) that demonstrate the capability of each raw water
1198		-	intake pump station, water treatment plant, pump station, and
1199		-	pressure facility to provide water to its wholesale customers
1200		-	during emergencies through alternative means acceptable to the
1201		-	commission.
1202		-	SECTION 29. Section 13.1396, Water Code, is amended by
	1112	+	SECTION 28. Section 13.1396, Water Code, is amended by
1203	1113		adding Subsection (a-1) to read as follows:
1204	1114		(a-1) This section applies only to an affected utility, as
1205	1115		defined by Section 13.1394 or 13.1395.
1206		-	SECTION 30. Subchapter E, Chapter 13, Water Code, is
	1116	+	SECTION 29. Subchapter E, Chapter 13, Water Code, is
1207	1117		amended by adding Section 13.151 to read as follows:
1208	1118		Sec. 13.151. BILLING FOR SERVICES PROVIDED DURING EXTREME
1209	1119		WEATHER EMERGENCY. (a) In this section, "extreme weather
1210	1120		emergency" means a period when the previous day's highest
1211		-	temperature did not exceed 28 degrees Fahrenheit and the
	1121	+	temperature did not exceed 10 degrees Fahrenheit and the
1212	1122		temperature is predicted to remain at or below that level for the
1213	1123		next 24 hours according to the nearest National Weather Service
1214	1124		reports.
1215	1125		(b) A retail public utility that is required to possess a
1216		-	certificate of public convenience and necessity or a district or
	1126	+	certificate of public convenience and necessity or a district and
1217	1127		affected county that furnishes retail water or sewer utility
1218		-	service shall not impose late fees or disconnect service for
1219		-	nonpayment of bills that are due during an extreme weather
1220		-	emergency until after the emergency is over and shall work with
1221		-	customers that request to establish a payment schedule for unpaid
1222		-	bills that are due during the extreme weather emergency.
1223		-	SECTION 31. Section 13.414, Water Code, is amended by
1224		-	adding Subsections (a-1), (d), and (e) to read as follows:
1225		-	(a-1) Notwithstanding Subsection (a), a retail public
1226		-	utility or affiliated interest that violates Section 13.151 is
1227		-	subject to a civil penalty of not less than $100 nor more than
1228		-	$50,000 for each violation.
1229		-	(d) The utility commission by rule shall establish a
1230		-	classification system to be used by a court under this section for
1231		-	violations of Section 13.151 that includes a range of penalties
1232		-	that may be recovered for each class of violation based on:
	1128	+	service shall defer collection of the full payment of bills that are
	1129	+	due during an extreme weather emergency until after the emergency
	1130	+	is over and shall work with customers to establish a pay schedule
	1131	+	for deferred bills.
	1132	+	SECTION 30. Section 13.414, Water Code, is amended by
	1133	+	adding Subsection (d) to read as follows:
	1134	+	(d) The commission by rule shall establish a classification
	1135	+	system to be used by a court under this section for violations of
	1136	+	Section 13.151 that includes a range of penalties that may be
	1137	+	recovered for each class of violation based on:
1233	1138		(1) the seriousness of the violation, including:
1234	1139		(A) the nature, circumstances, extent, and
1235	1140		gravity of a prohibited act; and
1236	1141		(B) the hazard or potential hazard created to the
1237	1142		health, safety, or economic welfare of the public;
1238	1143		(2) the history of previous violations;
1239	1144		(3) the amount necessary to deter future violations;
1240	1145		(4) efforts to correct the violation; and
1241	1146		(5) any other matter that justice may require.
1242		-	(e) The classification system established under Subsection
1243		-	(d) shall provide that a penalty in an amount that exceeds $5,000
1244		-	may be recovered only if the violation is included in the highest
1245		-	class of violations in the classification system.
1246		-	SECTION 32. Section 13.1396(a)(1), Water Code, is repealed.
1247		-	SECTION 33. (a) The State Energy Plan Advisory Committee is
	1147	+	SECTION 31. Section 13.1396(a)(1), Water Code, is repealed.
	1148	+	SECTION 32. (a) The State Energy Plan Advisory Committee is
1248	1149		composed of 12 members. The governor, lieutenant governor, and
1249	1150		speaker of the house of representatives each shall appoint four
1250	1151		members to the advisory committee.
1251	1152		(b) Not later than September 1, 2022, the State Energy Plan
1252	1153		Advisory Committee shall prepare a comprehensive state energy plan.
1253	1154		The plan must:
1254	1155		(1) evaluate barriers in the electricity and natural
1255	1156		gas markets that prevent sound economic decisions;
1256	1157		(2) evaluate methods to improve the reliability,
1257	1158		stability, and affordability of electric service in this state;
1258	1159		(3) provide recommendations for removing the barriers
1259	1160		described by Subdivision (1) of this subsection and using the
1260	1161		methods described by Subdivision (2) of this subsection; and
1261	1162		(4) evaluate the electricity market structure and
1262	1163		pricing mechanisms used in this state, including the ancillary
1263	1164		services market and emergency response services.
1264	1165		(c) The state energy plan prepared under this section must
1265	1166		be submitted to the legislature not later than September 1, 2022.
1266		-	SECTION 34. The Public Utility Commission of Texas and the
	1167	+	SECTION 33. The Public Utility Commission of Texas and the
1267	1168		independent organization certified under Section 39.151, Utilities
1268	1169		Code, shall annually review statutes, rules, protocols, and bylaws
1269	1170		that apply to conflicts of interest for commissioners and for
1270	1171		members of the governing body of the independent organization and
1271	1172		submit to the legislature a report on the effects the statutes,
1272	1173		rules, protocols, and bylaws have on the ability of the commission
1273	1174		and the independent organization to fulfill their duties.
1274		-	SECTION 35. The Public Utility Commission of Texas shall
1275		-	complete the first review required by Section 39.160(f), Utilities
1276		-	Code, as added by this Act, not later than December 31, 2021.
1277		-	SECTION 36. (a) Not later than November 1, 2021, each
	1175	+	SECTION 34. (a) Not later than November 1, 2021, each
1278	1176		affected utility, as defined by Section 13.1394, Water Code, as
1279	1177		added by this Act, shall complete the submissions required by
1280	1178		Section 13.1396(c), Water Code.
1281	1179		(b) Not later than March 1, 2022, each affected utility
1282	1180		shall submit to the Texas Commission on Environmental Quality the
1283	1181		emergency preparedness plan required by Section 13.1394, Water
1284	1182		Code, as added by this Act.
1285		-	(c) Not later than July 1, 2022, ~~or upon final approval by~~
1286		-	~~the commission, each affected utility shall~~ implement the emergency
1287		-	~~preparedness plan approved by the Texas~~ Commission on Environmental
1288		-	~~Quality under Section 13.1394, Water~~ Code, as added by this Act.
	1183	+	(c) Not later than July 1, 2022, each affected utility shall
	1184	+	implement the emergency preparedness plan approved by the Texas
	1185	+	Commission on Environmental Quality under Section 13.1394, Water
	1186	+	Code, as added by this Act.
1289	1187		(d) An affected utility, as defined by Section 13.1394,
1290	1188		Water Code, as added by this Act, may file with the Texas Commission
1291	1189		on Environmental Quality a written request for an extension, not to
1292	1190		exceed 90 days, of the date by which the affected utility is
1293	1191		required under Subsection (b) of this section to submit the
1294	1192		affected utility's emergency preparedness plan or of the date by
1295	1193		which the affected utility is required under Subsection (c) of this
1296	1194		section to implement the affected utility's emergency preparedness
1297	1195		plan. The Texas Commission on Environmental Quality shall approve
1298	1196		the requested extension for good cause shown.
1299		-	SECTION 37. The Texas Electricity Supply Chain Security and
1300		-	Mapping Committee shall produce the map required under Section
1301		-	38.203, Utilities Code, as added by this Act, not later than
1302		-	September 1, 2022.
1303		-	SECTION 38. Not later than six months after the date the
	1197	+	SECTION 35. Not later than six months after the date the
1304	1198		Texas Electricity Supply Chain Security and Mapping Committee
1305	1199		produces the map required under Section 38.203, Utilities Code, as
1306	1200		added by this Act, the Railroad Commission of Texas shall adopt
1307	1201		rules necessary to implement:
1308	1202		(1) Section 86.044, Natural Resources Code, as added
1309	1203		by this Act; and
1310	1204		(2) Section 121.2015, Utilities Code, as amended by
1311	1205		this Act.
1312		-	SECTION 39. Not later than six months after the effective
	1206	+	SECTION 36. Not later than six months after the effective
1313	1207		date of this Act, the Public Utility Commission of Texas shall adopt
1314	1208		rules necessary to implement:
1315	1209		(1) Section 35.0021, Utilities Code, as added by this
1316	1210		Act; and
1317		-	(2) Section 38.~~075~~, Utilities Code, as added by this
	1211	+	(2) Section 38.074, Utilities Code, as added by this
1318	1212		Act.
1319		-	SECTION 40. It is the intent of the legislature that this
1320		-	Act not restrict or amend the sole jurisdiction of the Railroad
1321		-	Commission of Texas to establish rules or requirements relating to
1322		-	curtailment orders for facilities and entities in the commission's
1323		-	jurisdiction under the Natural Resources Code or the Utilities
1324		-	Code.
1325		-	SECTION 41. This Act takes effect immediately if it
	1213	+	SECTION 37. This Act takes effect immediately if it
1326	1214		receives a vote of two-thirds of all the members elected to each
1327	1215		house, as provided by Section 39, Article III, Texas Constitution.
1328	1216		If this Act does not receive the vote necessary for immediate
1329	1217		effect, this Act takes effect September 1, 2021.
1330		-	______________________________ ______________________________
1331		-	President of the Senate Speaker of the House
1332		-	I hereby certify that S.B. No. 3 passed the Senate on
1333		-	March 29, 2021, by the following vote: Yeas 31, Nays 0;
1334		-	May 27, 2021, Senate refused to concur in House amendments and
1335		-	requested appointment of Conference Committee; May 28, 2021, House
1336		-	granted request of the Senate; May 30, 2021, Senate adopted
1337		-	Conference Committee Report by the following vote: Yeas 31,
1338		-	Nays 0.
1339		-	______________________________
1340		-	Secretary of the Senate
1341		-	I hereby certify that S.B. No. 3 passed the House, with
1342		-	amendments, on May 24, 2021, by the following vote: Yeas 142,
1343		-	Nays 1, one present not voting; May 28, 2021, House granted request
1344		-	of the Senate for appointment of Conference Committee;
1345		-	May 30, 2021, House adopted Conference Committee Report by the
1346		-	following vote: Yeas 142, Nays 0, two present not voting.
1347		-	______________________________
1348		-	Chief Clerk of the House
1349		-	Approved:
1350		-	______________________________
1351		-	Date
1352		-	______________________________
1353		-	Governor