87S30260 BRG-F
By: Huberty H.B. No. 97
A BILL TO BE ENTITLED
AN ACT
relating to the funding of projects by the Texas Water Development
Board to promote utility reliability, resiliency, efficiency,
conservation, and demand reduction; authorizing the issuance of
revenue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature recognizes the importance
of providing for the reliability and resiliency of this state's
utilities, broadband providers, and power generation companies.
The purpose of this Act is to ensure that proper funding in the form
of meaningful and adequate financial assistance is available to
enhance the reliability and resiliency of water, electric, and
natural gas utilities, broadband providers, and power generation
companies in this state, including by supporting projects to
weatherize facilities, provide resilience, and reduce demand
during periods of high demand.
(b) To accomplish that purpose, this Act creates the state
utilities reliability fund. The fund is intended to serve as an
infrastructure funding source in order to enhance the financing
capabilities of the Texas Water Development Board under a
constitutionally created program and a revenue bond program. Money
in the fund will be available to provide any financial assistance,
including market rate, low-interest, and no-interest loans, longer
repayment terms for loans, deferral of loan payments, interest rate
rebates and subsidies, loan guarantees, grants, or other financial
assistance that meets the needs of this state, the recipients, and
the purposes of this Act, as provided by Sections 49-d-15 and
49-d-16, Article III, Texas Constitution. In addition, this Act
creates the state utilities reliability revenue fund for use in
managing revenue bonds issued by the Texas Water Development Board
that are supported by the state utilities reliability fund. The
state utilities reliability fund and the state utilities
reliability revenue fund are not intended to be used to pay for new,
dispatchable sources of electricity to be built by private
entities.
SECTION 2. Chapter 447, Government Code, is amended by
adding Section 447.014 to read as follows:
Sec. 447.014. ENERGY EFFICIENCY, NATURAL GAS CONSERVATION,
AND WATER CONSERVATION LOAN PROGRAM. (a) Using money available
from the state utilities reliability fund established under Chapter
202, Utilities Code, the comptroller and the State Energy
Conservation Office jointly by rule shall establish and administer
a program that issues or guarantees loans to be used for
improvements that increase the energy efficiency of and promote
conservation of natural gas and water by residences and businesses
that are not newly constructed.
(b) The rules adopted under this section must establish
eligibility requirements for receipt of a loan issued or guaranteed
under the program, including emissions reduction
cost-effectiveness criteria.
(c) The State Energy Conservation Office annually shall
submit to the Public Utility Commission of Texas and the Energy
Systems Laboratory of the Texas A&M Engineering Experiment Station
a report that:
(1) evaluates the effectiveness of the program; and
(2) quantifies energy savings and emissions
reductions that result from the program for consideration in the
state implementation plan, as described by Section 382.0173, Health
and Safety Code, for emissions reduction credits.
SECTION 3. Title 4, Utilities Code, is amended by adding
Subtitle C to read as follows:
SUBTITLE C. RELIABILITY AND RESILIENCY OF UTILITIES, BROADBAND
PROVIDERS, AND POWER GENERATORS
CHAPTER 201. GENERAL PROVISIONS
Sec. 201.001. DEFINITIONS. In this subtitle:
(1) "Advisory committee" means the State Utilities
Reliability Fund Advisory Committee.
(2) "Board" means the Texas Water Development Board.
(3) "Broadband provider" means any person,
corporation, municipality or other political subdivision, or
agency that owns or operates for compensation in this state
facilities to provide broadband telecommunications capability and
Internet access in this state.
(4) "Commission" means the Public Utility Commission
of Texas.
(5) "Electric utility" has the meaning assigned by
Section 31.002, except that the term includes an electric
cooperative organized under Chapter 161 and a municipally owned
utility.
(6) "Executive administrator" means the executive
administrator of the Texas Water Development Board.
(7) "Facilities" means all of the property, plants,
and equipment of an electric, natural gas, or water utility, a
broadband provider, or a power generation company. The term
includes tangible property owned, operated, leased, used,
controlled, or supplied for, by, or in connection with the business
of the electric, natural gas, or water utility, the broadband
provider, or the power generation company in this state.
(8) "Fund" means the state utilities reliability fund.
(9) "Historically underutilized business" has the
meaning assigned by Section 2161.001, Government Code.
(10) "Natural gas utility" means a person who owns or
operates for compensation in this state facilities to transmit or
distribute combustible hydrocarbon natural gas or synthetic
natural gas for sale or resale in a manner not subject to the
jurisdiction of the Federal Energy Regulatory Commission under the
Natural Gas Act (15 U.S.C. Section 717 et seq.).
(11) "Power generation company" has the meaning
assigned by Section 31.002.
(12) "Railroad commission" means the Railroad
Commission of Texas.
(13) "Revenue fund" means the state utilities
reliability revenue fund.
(14) "State Energy Conservation Office" means a unit
of the comptroller of public accounts.
(15) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
(16) "Water utility" means a person operating,
maintaining, or controlling in this state facilities for providing
potable water service or wastewater service, or both, for
compensation.
CHAPTER 202. STATE UTILITIES RELIABILITY FUND
Sec. 202.001. FUND. (a) The state utilities reliability
fund is a special fund in the state treasury outside the general
revenue fund to be used by the board as authorized by this chapter
without further legislative appropriation. The board may establish
separate accounts in the fund and may transfer funds between
accounts. The board may invest, reinvest, and direct the
investment of money in the fund. The fund and the fund's accounts
may be kept and held by the trust company for and in the name of the
board. The board has legal title to money and investments in the
fund until money is disbursed from the fund as provided by this
chapter and board rules.
(b) Money deposited to the credit of the fund may be used
only as provided by Section 202.003.
(c) The fund consists of:
(1) money appropriated to the fund;
(2) money transferred or deposited to the credit of
the fund by law, including money from any source transferred or
deposited to the credit of the fund at the board's discretion as
authorized by law;
(3) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
fund;
(4) any other revenue that the legislature by statute
dedicates for deposit to the credit of the fund;
(5) investment earnings and interest earned on amounts
credited to the fund;
(6) repayments of loans made from the fund; and
(7) money transferred to the fund from another fund or
account to which money from the fund was transferred.
Sec. 202.002. MANAGEMENT AND INVESTMENT OF FUND. (a) The
board or the trust company may hold and invest the fund, and any
accounts established in the fund, for and in the name of the board,
taking into account the purposes for which money in the fund may be
used. The fund may be invested with the state treasury pool.
(b) The overall objectives for the investment of the fund
are, in order of precedence:
(1) preservation and safety of the fund principal;
(2) liquidity; and
(3) investment yield.
(c) The board or the trust company, as directed by the
board, has any power necessary to accomplish the purposes of
managing and investing the assets of the fund. In managing the
assets of the fund, through procedures and subject to restrictions
the board or the trust company considers appropriate, the board or
the trust company may acquire, exchange, sell, supervise, manage,
or retain any kind of investment that a prudent investor,
exercising reasonable care, skill, and caution, would acquire or
retain in light of the purposes, terms, distribution requirements,
and other circumstances of the fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment.
(d) If the fund is managed by the trust company, the trust
company may charge fees to cover its costs incurred in managing and
investing the fund. The fees must be consistent with the fees the
trust company charges other state and local governmental entities
for which the trust company provides investment management
services. The trust company may recover fees the trust company
charges under this subsection only from the earnings of the fund.
(e) If the fund is managed by the trust company, the trust
company annually shall provide a report to the board and to the
advisory committee with respect to the investment of the fund. The
trust company shall contract with a certified public accountant to
conduct an independent audit of the fund annually and shall present
the results of each annual audit to the board and to the advisory
committee. This subsection does not affect the state auditor's
authority to conduct an audit of the fund under Chapter 321,
Government Code.
(f) The board or trust company shall adopt a written
investment policy that is appropriate for the fund. If the fund is
managed by the trust company:
(1) the trust company shall present the investment
policy to the board and the investment advisory board established
under Section 404.028, Government Code; and
(2) the board and investment advisory board shall
submit to the trust company recommendations regarding the policy.
(g) If the fund is managed by the trust company, the board
annually shall provide to the trust company a forecast of the cash
flows into and out of the fund. The board shall provide updates to
the forecasts as appropriate to assist the trust company in
achieving the objectives specified by Subsection (b).
(h) If the fund is managed by the trust company, the company
shall disburse money from the fund as directed by the board. The
board shall direct disbursements from the fund on a schedule
specified by the board. If any applicable revenue bonds are
outstanding, the board shall direct disbursements from the fund not
more frequently than twice in any state fiscal year.
(i) An investment-related contract entered into under this
section is not subject to Chapter 2260, Government Code.
Sec. 202.003. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS
OR ACCOUNTS. (a) The board or the trust company at the direction of
the board shall make disbursements from the fund to the revenue fund
in the amounts the board determines are needed for disbursement
through the financing structures developed to meet the goals of the
fund, including transfer of those amounts to other board programs
or funds as necessary, or for debt service payments on or security
provisions of the board's revenue bonds, after considering all
other sources available for those purposes.
(b) The fund may be used only to:
(1) enhance the reliability and resiliency of water,
electric, and natural gas utilities, broadband providers, and power
generation companies for this state by supporting projects,
including projects to weatherize facilities and reduce demand, in
order to provide resilience and continuous service during periods
of high demand;
(2) pay the necessary and reasonable expenses of the
board in administering the fund; and
(3) transfer funds to other board programs or funds.
(c) Notwithstanding any other provision of this chapter,
the use of the fund may be prioritized based on a statewide utility
reliability and resiliency plan adopted under Section 202.010.
(d) The board may provide financial assistance from the fund
for:
(1) a water utility project;
(2) an electric utility project;
(3) a natural gas utility project;
(4) a power generation company project;
(5) a water utility, electric utility, or natural gas
utility project to reduce demand; or
(6) a broadband provider to provide matching funds to
enable the broadband provider to participate in a federal program
for broadband facilities.
(e) Financial assistance under Subsection (d) may be
provided in any form as determined by the board, including a market
rate, low-interest, or no-interest loan, a loan guarantee, an
equity ownership in a public or private entity, a joint venture with
a public or private entity, a grant, an interest rebate, or an
interest subsidy.
(f) In providing financial assistance under Subsection (d),
the board may make, enter into, and enforce contracts, agreements,
including management agreements, for the management of any of the
board's property, leases, indentures, mortgages, deeds of trust,
security agreements, pledge agreements, credit agreements,
overrides or other revenue sharing mechanisms, repurchase
agreements, and other instruments with any person, including any
lender and any federal, state, or local governmental agency, and to
take other actions as may accomplish any of its purposes.
(g) The board may contract with and provide for the
compensation of consultants and agents, including engineers,
attorneys, management consultants, financial advisors, indexing
agents, and other experts, as the business of the board under this
chapter may require.
(h) The fund may not be used to subsidize or finance the
construction of facilities that the board determines, in the
board's sole discretion, will result in new electric generation
capacity.
(i) Money in the fund may not be used for the purposes of
certification under Section 403.121, Government Code.
Sec. 202.004. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
board, for the purpose of providing financial assistance under this
chapter, shall prioritize projects that enhance the reliability and
resiliency of water, electric, and natural gas utilities, broadband
providers, and power generation companies in this state.
(b) The board shall establish a point system for
prioritizing projects for which financial assistance is sought from
the board. The system must include a standard for the board to
apply in determining whether a project qualifies for financial
assistance at the time the application for financial assistance is
filed with the board.
(c) The board shall give the highest consideration in
awarding points to projects that will have a substantial effect,
including projects that will:
(1) harden facilities to protect against extreme
weather and fuel supply disruptions;
(2) enhance resiliency of existing facilities during
periods of high demand;
(3) enhance the availability of fuel or water to
existing power generation companies and electric utilities to
improve the reliability of those companies and utilities to provide
continuous and adequate electric service during periods of high
demand;
(4) improve local resiliency by reducing demand
through energy efficiency measures, advanced metering
infrastructure deployment, and demand response technology
deployment; and
(5) provide broadband service in low-income and rural
communities.
(d) In addition to the criteria provided by Subsection (c),
the board may also consider the following criteria in prioritizing
projects:
(1) other funding sources secured by the applicant for
the project, including any capital to be provided by the applicant;
(2) the financial capacity of the applicant to repay
the financial assistance provided; and
(3) the ability of the applicant to timely leverage
state financing with local, federal, or private funding.
(e) The board shall consider federal tax subsidies in
prioritizing projects.
Sec. 202.005. ADVISORY COMMITTEE. (a) The State Utilities
Reliability Fund Advisory Committee is composed of the following
members:
(1) the comptroller, or a person designated by the
comptroller;
(2) three members of the senate appointed by the
lieutenant governor, including:
(A) a member of the committee of the senate
having primary jurisdiction over matters relating to finance; and
(B) a member of the committee of the senate
having primary jurisdiction over natural resources;
(3) three members of the house of representatives
appointed by the speaker of the house of representatives,
including:
(A) a member of the committee of the house of
representatives having primary jurisdiction over appropriations;
and
(B) a member of the committee of the house of
representatives having primary jurisdiction over natural
resources;
(4) the chief executive of the Office of Public
Utility Counsel, or a person designated by the chief executive of
the Office of Public Utility Counsel;
(5) the presiding officer of the commission, or a
person designated by the presiding officer of the commission;
(6) the chair of the Texas Reliability Entity board of
directors, or a person designated by a public vote of the Texas
Reliability Entity; and
(7) an unaffiliated board member of the Electric
Reliability Council of Texas, appointed in a public meeting of the
Electric Reliability Council of Texas.
(b) The board shall provide staff as necessary to assist the
advisory committee.
(c) An appointed member of the advisory committee serves at
the will of the officer who appointed the member.
(d) The lieutenant governor shall appoint a co-presiding
officer of the advisory committee from among the members appointed
by the lieutenant governor, and the speaker of the house of
representatives shall appoint a co-presiding officer of the
committee from among the members appointed by the speaker.
(e) The advisory committee shall hold public hearings,
formal meetings, or work sessions in a location with audio and video
capacity. The board shall broadcast over the Internet live video
and audio of each public hearing, formal meeting, or work session of
the advisory committee and provide access to each broadcast on the
board's Internet website. Either co-presiding officer of the
advisory committee may call a public hearing, formal meeting, or
work session of the advisory committee after issuing a public
notice not later than the seventh day before the date of the public
hearing, formal meeting, or work session. The public notice must
include an agenda with formal actions included. The advisory
committee may not take formal action at a public hearing, formal
meeting, or work session unless a quorum of the committee is
present. The board shall provide access on the board's Internet
website to the public notices, recordings of the live broadcasts,
and minutes of public hearings, formal meetings, and work sessions.
(f) Except as otherwise provided by this subsection, a
member of the advisory committee is not entitled to receive
compensation for service on the committee or reimbursement for
expenses incurred in the performance of official duties as a member
of the committee. Service on the advisory committee by a member of
the senate or house of representatives is considered legislative
service for which the member is entitled to reimbursement and other
benefits in the same manner and to the same extent as for other
legislative service.
(g) The advisory committee shall submit comments and
recommendations to the board regarding the use of money in the fund
and in the revenue fund for use by the board in adopting rules under
Section 202.006 and in adopting policies and procedures under
Section 202.008. The submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of projects in accordance with
Section 202.004;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by Section 202.003;
(3) an evaluation of the available programs for
providing financing for projects authorized by this chapter and
guidelines for implementing those programs;
(4) an evaluation of the lending practices of the
board and guidelines for lending standards;
(5) an evaluation of the use of funds by the board to
provide support for financial assistance for projects that enhance
the reliability and resiliency of water, electric, and natural gas
utilities, broadband providers, and power generation companies for
this state, including support for the purposes described by Section
202.003(b);
(6) an evaluation of methods for encouraging
participation in the programs established under this chapter by
companies domiciled in this state or that employ a significant
number of residents of this state; and
(7) an evaluation of the overall operation, function,
and structure of the fund.
(h) The advisory committee shall review the overall
operation, function, and structure of the fund at least
semiannually and may provide comments and recommendations to the
board on any matter.
(i) The advisory committee may adopt rules, procedures, and
policies as needed to administer this section and implement its
responsibilities.
(j) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(k) The advisory committee is subject to Chapter 325,
Government Code (Texas Sunset Act). Unless continued in existence
as provided by that chapter, the advisory committee is abolished
and this section expires September 1, 2035.
(l) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website under Section 202.007(b).
(m) The advisory committee shall evaluate and may provide
comments or recommendations on the feasibility of the state owning,
constructing, and operating water, electric, natural gas, power
generation, or broadband facilities related to the purposes
described by Section 202.003(b).
(n) The executive administrator shall provide an annual
report to the advisory committee on:
(1) the board's compliance with statewide annual goals
relating to historically underutilized businesses; and
(2) the participation level of historically
underutilized businesses in projects that receive funding under
this chapter.
(o) If the aggregate level of participation by historically
underutilized businesses in projects that receive funding under
this chapter does not meet statewide annual goals adopted under
Chapter 2161, Government Code, the advisory committee shall make
recommendations to the board to improve the participation level.
Sec. 202.006. RULES. (a) The board shall adopt rules
providing for the use of money in the fund that are consistent with
this subchapter, including rules:
(1) establishing standards for determining whether
projects meet the criteria provided by Section 202.003;
(2) providing for public access to information on
financing assistance applications and providing for consideration
of public comment before financing decisions are made; and
(3) specifying the manner for prioritizing projects
for purposes of Section 202.004.
(b) The board shall give full consideration to the
recommendations of the advisory committee before adopting rules
under this chapter.
Sec. 202.007. REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
Not later than December 1 of each even-numbered year, the board
shall provide a report to the governor, lieutenant governor,
speaker of the house of representatives, and members of the
legislature regarding the use of the fund.
(b) The board shall post the following information on the
board's Internet website regarding the use of the fund and
regularly update the information posted:
(1) the progress made in enhancing critical water,
electric, natural gas, and broadband infrastructure to withstand
periods of high demand; and
(2) a description of each project funded through the
fund, including the expected date of completion of the project.
Sec. 202.008. POLICIES AND PROCEDURES TO MITIGATE OR
MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
adopt, and may amend from time to time at the board's discretion,
policies and procedures for the purpose of mitigating or minimizing
the adverse effects, if any, of federal laws and regulations
relating to income taxes, arbitrage, rebates, and related matters
that may restrict the board's ability to freely invest all or part
of the fund or to receive and retain all the earnings from the fund.
Sec. 202.009. COOPERATION WITH OTHER STATE AGENCIES. (a)
The commission, railroad commission, the State Energy Conservation
Office, and other state agencies shall provide resources to the
board that the board determines are necessary to carry out the
board's duties and responsibilities under this chapter.
(b) The board may require the commission to review and
recommend for approval electric utility, power generation company,
and broadband provider projects for board assistance under this
chapter and inspect electric utility, power generation company, and
broadband provider projects after board financial assistance.
(c) The board may require the railroad commission to review
and recommend for approval natural gas utility and power generation
projects for board assistance under this chapter and inspect
natural gas utility and power generation company projects after
board financial assistance.
(d) The board may require any other state agency to provide
services to the board to ensure the goals of the fund and this
chapter are met.
Sec. 202.010. RELIABILITY AND RESILIENCY STUDY AND PLAN.
(a) The board may, at any time, develop and conduct a study of the
needs, causes, and methods to address reliability and resiliency of
the industries affected by this chapter and may develop a statewide
reliability and resiliency plan.
(b) The board may, at any time, use money from the fund to
contract and engage outside entities to develop a study or plan
considered necessary by the board.
Sec. 202.011. CHANGES TO INDUSTRY STRUCTURE NOT IN CONFLICT
WITH CHAPTER. Any reconstruction or changes to the regulatory
market structures of the industries identified in this chapter are
not in conflict with the purpose of this chapter.
Sec. 202.012. PUBLIC PRIVATE PARTNERSHIPS. Money from the
fund may be used to make payments under a public and private entity
agreement to design, develop, finance, or construct a project
described by this chapter.
Sec. 202.013. METHODOLOGY AND STANDARDS FOR POWER
GENERATION FACILITY WEATHERIZATION. (a) The commission shall
develop a statistical methodology to determine the ambient
conditions to which each power generation facility must be
weatherized to comply with winter operations reliability
standards.
(b) A methodology or standard developed under Subsection
(a) may be used only to determine whether to provide financial
assistance or support to a project to weatherize a power generation
facility under this subtitle.
CHAPTER 203. STATE UTILITIES RELIABILITY REVENUE FUND
Sec. 203.001. REVENUE FUND. (a) The state utilities
reliability revenue fund is a special fund in the state treasury
outside the general revenue fund to be used by the board as
authorized by this chapter without further legislative
appropriation. The board may establish separate accounts in the
revenue fund and may transfer money between accounts. The board has
legal title to money and investments in the revenue fund until the
money is disbursed as provided by this chapter and board rules.
(b) Money deposited to the credit of the revenue fund may be
used only as provided by Section 203.003.
(c) The revenue fund consists of:
(1) money appropriated to the revenue fund;
(2) money transferred or deposited to the credit of
the revenue fund by law, including money from any source
transferred or deposited to the credit of the revenue fund at the
board's discretion as authorized by law;
(3) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
revenue fund;
(4) any other revenue that the legislature by statute
dedicates for deposit to the credit of the revenue fund;
(5) investment earnings and interest earned on amounts
credited to the revenue fund;
(6) the proceeds from the sale of revenue bonds issued
by the board under this chapter that are designated by the board for
the purpose of providing money for the revenue fund;
(7) repayments of loans made from the revenue fund;
and
(8) money disbursed to the revenue fund from the state
utilities reliability fund as authorized by Section 202.003.
Sec. 203.002. MANAGEMENT AND INVESTMENT OF REVENUE FUND.
(a) Money deposited to the credit of the revenue fund shall be
invested as determined by the board. The revenue fund may be
invested with the state treasury pool.
(b) The revenue fund and any accounts established in the
revenue fund shall be kept and maintained by or at the direction of
the board.
(c) At the direction of the board, the revenue fund and any
accounts established in the revenue fund may be managed by the
board, the comptroller, or a corporate trustee that is a trust
company or a bank that has the powers of a trust company for and on
behalf of the board and, pending use of the revenue fund and
accounts for the purposes provided by this chapter, may be invested
as provided by an order, resolution, or rule of the board.
(d) The board, comptroller, or corporate trustee shall
manage the revenue fund in strict accordance with this chapter and
the orders, resolutions, and rules of the board.
Sec. 203.003. USE OF REVENUE FUND. (a) Money in the
revenue fund may be used by the board only to provide financial
assistance under terms specified by the board for projects that
enhance the reliability and resiliency of water, electric, natural
gas, broadband, and power generation facilities in this state,
including:
(1) projects that enhance the ability of facilities to
withstand periods of high demand;
(2) projects that reduce demand during periods of high
demand; and
(3) projects to weatherize facilities.
(b) Financial assistance for projects under Subsection (a)
may be provided in any form determined by the board that meets the
needs and goals of this state and the applicants, including a market
rate, low-interest, or no-interest loan, a loan guarantee, an
equity ownership in a public or private entity, a joint venture with
a public or private entity, a grant, an interest rebate, or an
interest subsidy.
(c) In providing financial assistance under Subsection (a),
the board may:
(1) make, enter into, and enforce contracts and
agreements, including management agreements, for the management of
any of the board's property, leases, indentures, mortgages, deeds
of trust, security agreements, pledge agreements, credit
agreements, overrides or other revenue sharing mechanisms,
repurchase agreements, and other instruments with any person,
including any lender and any federal, state, or local governmental
agency;
(2) contract with and provide for the compensation of
consultants and agents, including engineers, attorneys, management
consultants, financial advisors, indexing agents, and other
experts, as the business of the board may require; and
(3) take other actions to accomplish any of the board's
purposes.
(d) The board may use money in the revenue fund:
(1) as a source of revenue or security for the payment
of the principal of and interest on revenue bonds issued by the
board under this chapter;
(2) to pay the necessary and reasonable expenses of
paying agents, bond counsel, and financial advisory services and
similar costs incurred by the board in administering the revenue
fund; or
(3) to transfer money to the fund as necessary.
(e) The board, comptroller, or corporate trustee managing
the revenue fund at the direction of the board shall withdraw from
the revenue fund and pay to a person any amounts, as determined by
the board, for the timely payment of:
(1) the principal of and interest on bonds described
by Subsection (d)(1) that mature or become due; and
(2) any cost related to bonds described by Subsection
(d)(1) that become due, including payments under related credit
agreements.
(f) Money in the revenue fund may not be used for the purpose
of certification under Section 403.121, Government Code.
Sec. 203.004. ISSUANCE OF REVENUE BONDS. (a) The board may
issue revenue bonds for the purpose of providing money for the
revenue fund.
(b) The board may issue revenue bonds to refund revenue
bonds or bonds and obligations issued or incurred in accordance
with other provisions of law.
(c) Revenue bonds issued under this chapter are special
obligations of the board payable only from and secured by
designated income and receipts of the revenue fund, or of one or
more accounts in the revenue fund, including principal of and
interest paid and to be paid on revenue fund assets or income from
accounts created within the revenue fund by the board, as
determined by the board.
(d) Revenue bonds issued under this chapter do not
constitute indebtedness of the state as prohibited by the
constitution.
(e) The board may require revenue fund participants to make
charges, levy taxes, or otherwise provide for sufficient money to
pay acquired obligations.
(f) Revenue bonds issued under this chapter must be
authorized by resolution of the board and must have the form and
characteristics and bear the designations as the resolution
provides.
(g) Revenue bonds issued under this chapter may:
(1) bear interest at the rate or rates payable
annually or otherwise;
(2) be dated;
(3) mature at the time or times, serially, as term
revenue bonds, or otherwise in not more than 50 years from their
dates;
(4) be callable before stated maturity on the terms
and at the prices, be in the denominations, be in the form, either
coupon or registered, carry registration privileges as to principal
only or as to both principal and interest and as to successive
exchange of coupon for registered bonds or one denomination for
bonds of other denominations, and successive exchange of registered
revenue bonds for coupon revenue bonds, be executed in the manner,
and be payable at the place or places inside or outside the state,
as provided by the resolution;
(5) be issued in temporary or permanent form;
(6) be issued in one or more installments and from time
to time as required and sold at a price or prices and under terms
determined by the board to be the most advantageous reasonably
obtainable; and
(7) be issued on a parity with and be secured in the
manner as other revenue bonds authorized to be issued by this
chapter or may be issued without parity and secured differently
than other revenue bonds.
(h) Section 17.955, Water Code, applies to revenue bonds
issued under this chapter in the same manner as that section applies
to water financial assistance bonds.
(i) All proceedings relating to the issuance of revenue
bonds issued under this chapter shall be submitted to the attorney
general for examination. If the attorney general finds that the
revenue bonds have been authorized in accordance with law, the
attorney general shall approve the revenue bonds, and the revenue
bonds shall be registered by the comptroller. After the approval
and registration, the revenue bonds are incontestable in any court
or other forum for any reason and are valid and binding obligations
in accordance with their terms for all purposes.
(j) The proceeds received from the sale of revenue bonds
issued under this chapter may be deposited or invested in any manner
and in such investments as may be specified in the resolution or
other proceedings authorizing those obligations. Money in the
revenue fund or accounts created by this chapter or created in the
resolution or other proceedings authorizing the revenue bonds may
be invested in any manner and in any obligations as may be specified
in the resolution or other proceedings.
Sec. 203.005. CHAPTER CUMULATIVE OF OTHER LAWS. (a) This
chapter is cumulative of other laws on the subject, and the board
may use provisions of other applicable laws in the issuance of bonds
and other obligations, but this chapter is wholly sufficient
authority for the issuance of bonds and other obligations and the
performance of all other acts and procedures authorized by this
chapter.
(b) In addition to other authority granted by this chapter,
the board may exercise the authority granted to the governing body
of an issuer with regard to the issuance of obligations under
Chapter 1371, Government Code.
SECTION 4. Section 15.102(b), Water Code, is amended to
read as follows:
(b) The loan fund may also be used by the board to provide:
(1) grants or loans for projects that include
supplying water and wastewater services in economically distressed
areas or nonborder colonias as provided by legislative
appropriations, this chapter, and board rules, including projects
involving retail distribution of those services; [and]
(2) grants for:
(A) projects for which federal grant funds are
placed in the loan fund;
(B) projects, on specific legislative
appropriation for those projects; or
(C) water conservation, desalination, brush
control, weather modification, regionalization, and projects
providing regional water quality enhancement services as defined by
board rule, including regional conveyance systems; and
(3) loans or grants to water utilities, as that term is
defined by Section 201.001, Utilities Code, for projects that
enhance the reliability and resiliency of those water utilities by
weatherizing facilities or reducing water demand through water
conservation and water demand reduction efforts.
SECTION 5. (a) The terms used in this section have the
meanings assigned by Section 201.001, Utilities Code, as added by
this Act.
(b) The executive administrator of the Texas Water
Development Board, in coordination with the Public Utility
Commission of Texas, the Texas Commission on Environmental Quality,
the Railroad Commission of Texas, the State Energy Conservation
Office, and the independent organization certified under Section
39.151, Utilities Code, for the ERCOT power region, shall conduct a
study regarding:
(1) the need for financial assistance from the state
to weatherize:
(A) water utility facilities;
(B) electric utility facilities;
(C) natural gas utility facilities;
(D) power generation companies; and
(E) broadband provider facilities;
(2) the need for financial assistance from the state
to provide adequate capacity during periods of high demand for
electric utilities and natural gas utilities, including by reducing
electric and natural gas demand; and
(3) the financing structures desirable to potential
applicants for the categories listed in Subdivisions (1) and (2) of
this subsection.
(c) The costs of the study, including any external
management or consulting services considered necessary, may be paid
from the state utilities reliability fund.
(d) The executive administrator shall prepare a report on
the findings of the study conducted under this section and submit
the report to the State Utilities Reliability Fund Advisory
Committee not later than May 7, 2023.
(e) This section expires September 1, 2023.
SECTION 6. As soon as practicable after the effective date
of this Act, the lieutenant governor and the speaker of the house of
representatives shall appoint the initial appointive members of the
State Utilities Reliability Fund Advisory Committee as provided by
Section 202.005, Utilities Code, as added by this Act.
SECTION 7. (a) Not later than June 1, 2023, the State
Utilities Reliability Fund Advisory Committee shall submit
recommendations to the Texas Water Development Board on the rules
to be adopted by the board under Section 202.006(a), Utilities
Code, as added by this Act.
(b) Not later than December 1, 2023, the board shall propose
rules under Section 202.006, Utilities Code, as added by this Act.
SECTION 8. The Texas Water Development Board shall post the
information described by Section 202.007(b), Utilities Code, as
added by this Act, on the board's Internet website not later than
March 1, 2023.
SECTION 9. (a) Except as provided by Subsection (b) of this
section:
(1) this Act takes effect on the date on which the
constitutional amendment proposed by the 87th Legislature, 3rd
Called Session, 2021, creating the state utilities reliability fund
and the state utilities reliability revenue fund to provide
financial support for projects that enhance the reliability and
resiliency of water, electric, and natural gas utilities, broadband
providers, and power generation companies in this state takes
effect; or
(2) if the amendment described by Subdivision (1) of
this subsection is not approved by the voters, this Act has no
effect.
(b) Regardless of whether the constitutional amendment
described by Subsection (a) of this section is approved by the
voters, Section 5 of this Act takes effect:
(1) immediately, if this Act receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution; or
(2) on the 91st day after the last day of the
legislative session, if this Act does not receive the vote
necessary for immediate effect.