Texas 2021 - 87th 3rd C.S.

Texas House Bill HB97 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87S30260 BRG-F
2	2	By: Huberty H.B. No. 97
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the funding of projects by the Texas Water Development
8	8	Board to promote utility reliability, resiliency, efficiency,
9	9	conservation, and demand reduction; authorizing the issuance of
10	10	revenue bonds.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. (a) The legislature recognizes the importance
13	13	of providing for the reliability and resiliency of this state's
14	14	utilities, broadband providers, and power generation companies.
15	15	The purpose of this Act is to ensure that proper funding in the form
16	16	of meaningful and adequate financial assistance is available to
17	17	enhance the reliability and resiliency of water, electric, and
18	18	natural gas utilities, broadband providers, and power generation
19	19	companies in this state, including by supporting projects to
20	20	weatherize facilities, provide resilience, and reduce demand
21	21	during periods of high demand.
22	22	(b) To accomplish that purpose, this Act creates the state
23	23	utilities reliability fund. The fund is intended to serve as an
24	24	infrastructure funding source in order to enhance the financing
25	25	capabilities of the Texas Water Development Board under a
26	26	constitutionally created program and a revenue bond program. Money
27	27	in the fund will be available to provide any financial assistance,
28	28	including market rate, low-interest, and no-interest loans, longer
29	29	repayment terms for loans, deferral of loan payments, interest rate
30	30	rebates and subsidies, loan guarantees, grants, or other financial
31	31	assistance that meets the needs of this state, the recipients, and
32	32	the purposes of this Act, as provided by Sections 49-d-15 and
33	33	49-d-16, Article III, Texas Constitution. In addition, this Act
34	34	creates the state utilities reliability revenue fund for use in
35	35	managing revenue bonds issued by the Texas Water Development Board
36	36	that are supported by the state utilities reliability fund. The
37	37	state utilities reliability fund and the state utilities
38	38	reliability revenue fund are not intended to be used to pay for new,
39	39	dispatchable sources of electricity to be built by private
40	40	entities.
41	41	SECTION 2. Chapter 447, Government Code, is amended by
42	42	adding Section 447.014 to read as follows:
43	43	Sec. 447.014. ENERGY EFFICIENCY, NATURAL GAS CONSERVATION,
44	44	AND WATER CONSERVATION LOAN PROGRAM. (a) Using money available
45	45	from the state utilities reliability fund established under Chapter
46	46	202, Utilities Code, the comptroller and the State Energy
47	47	Conservation Office jointly by rule shall establish and administer
48	48	a program that issues or guarantees loans to be used for
49	49	improvements that increase the energy efficiency of and promote
50	50	conservation of natural gas and water by residences and businesses
51	51	that are not newly constructed.
52	52	(b) The rules adopted under this section must establish
53	53	eligibility requirements for receipt of a loan issued or guaranteed
54	54	under the program, including emissions reduction
55	55	cost-effectiveness criteria.
56	56	(c) The State Energy Conservation Office annually shall
57	57	submit to the Public Utility Commission of Texas and the Energy
58	58	Systems Laboratory of the Texas A&M Engineering Experiment Station
59	59	a report that:
60	60	(1) evaluates the effectiveness of the program; and
61	61	(2) quantifies energy savings and emissions
62	62	reductions that result from the program for consideration in the
63	63	state implementation plan, as described by Section 382.0173, Health
64	64	and Safety Code, for emissions reduction credits.
65	65	SECTION 3. Title 4, Utilities Code, is amended by adding
66	66	Subtitle C to read as follows:
67	67	SUBTITLE C. RELIABILITY AND RESILIENCY OF UTILITIES, BROADBAND
68	68	PROVIDERS, AND POWER GENERATORS
69	69	CHAPTER 201. GENERAL PROVISIONS
70	70	Sec. 201.001. DEFINITIONS. In this subtitle:
71	71	(1) "Advisory committee" means the State Utilities
72	72	Reliability Fund Advisory Committee.
73	73	(2) "Board" means the Texas Water Development Board.
74	74	(3) "Broadband provider" means any person,
75	75	corporation, municipality or other political subdivision, or
76	76	agency that owns or operates for compensation in this state
77	77	facilities to provide broadband telecommunications capability and
78	78	Internet access in this state.
79	79	(4) "Commission" means the Public Utility Commission
80	80	of Texas.
81	81	(5) "Electric utility" has the meaning assigned by
82	82	Section 31.002, except that the term includes an electric
83	83	cooperative organized under Chapter 161 and a municipally owned
84	84	utility.
85	85	(6) "Executive administrator" means the executive
86	86	administrator of the Texas Water Development Board.
87	87	(7) "Facilities" means all of the property, plants,
88	88	and equipment of an electric, natural gas, or water utility, a
89	89	broadband provider, or a power generation company. The term
90	90	includes tangible property owned, operated, leased, used,
91	91	controlled, or supplied for, by, or in connection with the business
92	92	of the electric, natural gas, or water utility, the broadband
93	93	provider, or the power generation company in this state.
94	94	(8) "Fund" means the state utilities reliability fund.
95	95	(9) "Historically underutilized business" has the
96	96	meaning assigned by Section 2161.001, Government Code.
97	97	(10) "Natural gas utility" means a person who owns or
98	98	operates for compensation in this state facilities to transmit or
99	99	distribute combustible hydrocarbon natural gas or synthetic
100	100	natural gas for sale or resale in a manner not subject to the
101	101	jurisdiction of the Federal Energy Regulatory Commission under the
102	102	Natural Gas Act (15 U.S.C. Section 717 et seq.).
103	103	(11) "Power generation company" has the meaning
104	104	assigned by Section 31.002.
105	105	(12) "Railroad commission" means the Railroad
106	106	Commission of Texas.
107	107	(13) "Revenue fund" means the state utilities
108	108	reliability revenue fund.
109	109	(14) "State Energy Conservation Office" means a unit
110	110	of the comptroller of public accounts.
111	111	(15) "Trust company" means the Texas Treasury
112	112	Safekeeping Trust Company.
113	113	(16) "Water utility" means a person operating,
114	114	maintaining, or controlling in this state facilities for providing
115	115	potable water service or wastewater service, or both, for
116	116	compensation.
117	117	CHAPTER 202. STATE UTILITIES RELIABILITY FUND
118	118	Sec. 202.001. FUND. (a) The state utilities reliability
119	119	fund is a special fund in the state treasury outside the general
120	120	revenue fund to be used by the board as authorized by this chapter
121	121	without further legislative appropriation. The board may establish
122	122	separate accounts in the fund and may transfer funds between
123	123	accounts. The board may invest, reinvest, and direct the
124	124	investment of money in the fund. The fund and the fund's accounts
125	125	may be kept and held by the trust company for and in the name of the
126	126	board. The board has legal title to money and investments in the
127	127	fund until money is disbursed from the fund as provided by this
128	128	chapter and board rules.
129	129	(b) Money deposited to the credit of the fund may be used
130	130	only as provided by Section 202.003.
131	131	(c) The fund consists of:
132	132	(1) money appropriated to the fund;
133	133	(2) money transferred or deposited to the credit of
134	134	the fund by law, including money from any source transferred or
135	135	deposited to the credit of the fund at the board's discretion as
136	136	authorized by law;
137	137	(3) the proceeds of any fee or tax imposed by this
138	138	state that by statute is dedicated for deposit to the credit of the
139	139	fund;
140	140	(4) any other revenue that the legislature by statute
141	141	dedicates for deposit to the credit of the fund;
142	142	(5) investment earnings and interest earned on amounts
143	143	credited to the fund;
144	144	(6) repayments of loans made from the fund; and
145	145	(7) money transferred to the fund from another fund or
146	146	account to which money from the fund was transferred.
147	147	Sec. 202.002. MANAGEMENT AND INVESTMENT OF FUND. (a) The
148	148	board or the trust company may hold and invest the fund, and any
149	149	accounts established in the fund, for and in the name of the board,
150	150	taking into account the purposes for which money in the fund may be
151	151	used. The fund may be invested with the state treasury pool.
152	152	(b) The overall objectives for the investment of the fund
153	153	are, in order of precedence:
154	154	(1) preservation and safety of the fund principal;
155	155	(2) liquidity; and
156	156	(3) investment yield.
157	157	(c) The board or the trust company, as directed by the
158	158	board, has any power necessary to accomplish the purposes of
159	159	managing and investing the assets of the fund. In managing the
160	160	assets of the fund, through procedures and subject to restrictions
161	161	the board or the trust company considers appropriate, the board or
162	162	the trust company may acquire, exchange, sell, supervise, manage,
163	163	or retain any kind of investment that a prudent investor,
164	164	exercising reasonable care, skill, and caution, would acquire or
165	165	retain in light of the purposes, terms, distribution requirements,
166	166	and other circumstances of the fund then prevailing, taking into
167	167	consideration the investment of all the assets of the fund rather
168	168	than a single investment.
169	169	(d) If the fund is managed by the trust company, the trust
170	170	company may charge fees to cover its costs incurred in managing and
171	171	investing the fund. The fees must be consistent with the fees the
172	172	trust company charges other state and local governmental entities
173	173	for which the trust company provides investment management
174	174	services. The trust company may recover fees the trust company
175	175	charges under this subsection only from the earnings of the fund.
176	176	(e) If the fund is managed by the trust company, the trust
177	177	company annually shall provide a report to the board and to the
178	178	advisory committee with respect to the investment of the fund. The
179	179	trust company shall contract with a certified public accountant to
180	180	conduct an independent audit of the fund annually and shall present
181	181	the results of each annual audit to the board and to the advisory
182	182	committee. This subsection does not affect the state auditor's
183	183	authority to conduct an audit of the fund under Chapter 321,
184	184	Government Code.
185	185	(f) The board or trust company shall adopt a written
186	186	investment policy that is appropriate for the fund. If the fund is
187	187	managed by the trust company:
188	188	(1) the trust company shall present the investment
189	189	policy to the board and the investment advisory board established
190	190	under Section 404.028, Government Code; and
191	191	(2) the board and investment advisory board shall
192	192	submit to the trust company recommendations regarding the policy.
193	193	(g) If the fund is managed by the trust company, the board
194	194	annually shall provide to the trust company a forecast of the cash
195	195	flows into and out of the fund. The board shall provide updates to
196	196	the forecasts as appropriate to assist the trust company in
197	197	achieving the objectives specified by Subsection (b).
198	198	(h) If the fund is managed by the trust company, the company
199	199	shall disburse money from the fund as directed by the board. The
200	200	board shall direct disbursements from the fund on a schedule
201	201	specified by the board. If any applicable revenue bonds are
202	202	outstanding, the board shall direct disbursements from the fund not
203	203	more frequently than twice in any state fiscal year.
204	204	(i) An investment-related contract entered into under this
205	205	section is not subject to Chapter 2260, Government Code.
206	206	Sec. 202.003. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS
207	207	OR ACCOUNTS. (a) The board or the trust company at the direction of
208	208	the board shall make disbursements from the fund to the revenue fund
209	209	in the amounts the board determines are needed for disbursement
210	210	through the financing structures developed to meet the goals of the
211	211	fund, including transfer of those amounts to other board programs
212	212	or funds as necessary, or for debt service payments on or security
213	213	provisions of the board's revenue bonds, after considering all
214	214	other sources available for those purposes.
215	215	(b) The fund may be used only to:
216	216	(1) enhance the reliability and resiliency of water,
217	217	electric, and natural gas utilities, broadband providers, and power
218	218	generation companies for this state by supporting projects,
219	219	including projects to weatherize facilities and reduce demand, in
220	220	order to provide resilience and continuous service during periods
221	221	of high demand;
222	222	(2) pay the necessary and reasonable expenses of the
223	223	board in administering the fund; and
224	224	(3) transfer funds to other board programs or funds.
225	225	(c) Notwithstanding any other provision of this chapter,
226	226	the use of the fund may be prioritized based on a statewide utility
227	227	reliability and resiliency plan adopted under Section 202.010.
228	228	(d) The board may provide financial assistance from the fund
229	229	for:
230	230	(1) a water utility project;
231	231	(2) an electric utility project;
232	232	(3) a natural gas utility project;
233	233	(4) a power generation company project;
234	234	(5) a water utility, electric utility, or natural gas
235	235	utility project to reduce demand; or
236	236	(6) a broadband provider to provide matching funds to
237	237	enable the broadband provider to participate in a federal program
238	238	for broadband facilities.
239	239	(e) Financial assistance under Subsection (d) may be
240	240	provided in any form as determined by the board, including a market
241	241	rate, low-interest, or no-interest loan, a loan guarantee, an
242	242	equity ownership in a public or private entity, a joint venture with
243	243	a public or private entity, a grant, an interest rebate, or an
244	244	interest subsidy.
245	245	(f) In providing financial assistance under Subsection (d),
246	246	the board may make, enter into, and enforce contracts, agreements,
247	247	including management agreements, for the management of any of the
248	248	board's property, leases, indentures, mortgages, deeds of trust,
249	249	security agreements, pledge agreements, credit agreements,
250	250	overrides or other revenue sharing mechanisms, repurchase
251	251	agreements, and other instruments with any person, including any
252	252	lender and any federal, state, or local governmental agency, and to
253	253	take other actions as may accomplish any of its purposes.
254	254	(g) The board may contract with and provide for the
255	255	compensation of consultants and agents, including engineers,
256	256	attorneys, management consultants, financial advisors, indexing
257	257	agents, and other experts, as the business of the board under this
258	258	chapter may require.
259	259	(h) The fund may not be used to subsidize or finance the
260	260	construction of facilities that the board determines, in the
261	261	board's sole discretion, will result in new electric generation
262	262	capacity.
263	263	(i) Money in the fund may not be used for the purposes of
264	264	certification under Section 403.121, Government Code.
265	265	Sec. 202.004. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
266	266	board, for the purpose of providing financial assistance under this
267	267	chapter, shall prioritize projects that enhance the reliability and
268	268	resiliency of water, electric, and natural gas utilities, broadband
269	269	providers, and power generation companies in this state.
270	270	(b) The board shall establish a point system for
271	271	prioritizing projects for which financial assistance is sought from
272	272	the board. The system must include a standard for the board to
273	273	apply in determining whether a project qualifies for financial
274	274	assistance at the time the application for financial assistance is
275	275	filed with the board.
276	276	(c) The board shall give the highest consideration in
277	277	awarding points to projects that will have a substantial effect,
278	278	including projects that will:
279	279	(1) harden facilities to protect against extreme
280	280	weather and fuel supply disruptions;
281	281	(2) enhance resiliency of existing facilities during
282	282	periods of high demand;
283	283	(3) enhance the availability of fuel or water to
284	284	existing power generation companies and electric utilities to
285	285	improve the reliability of those companies and utilities to provide
286	286	continuous and adequate electric service during periods of high
287	287	demand;
288	288	(4) improve local resiliency by reducing demand
289	289	through energy efficiency measures, advanced metering
290	290	infrastructure deployment, and demand response technology
291	291	deployment; and
292	292	(5) provide broadband service in low-income and rural
293	293	communities.
294	294	(d) In addition to the criteria provided by Subsection (c),
295	295	the board may also consider the following criteria in prioritizing
296	296	projects:
297	297	(1) other funding sources secured by the applicant for
298	298	the project, including any capital to be provided by the applicant;
299	299	(2) the financial capacity of the applicant to repay
300	300	the financial assistance provided; and
301	301	(3) the ability of the applicant to timely leverage
302	302	state financing with local, federal, or private funding.
303	303	(e) The board shall consider federal tax subsidies in
304	304	prioritizing projects.
305	305	Sec. 202.005. ADVISORY COMMITTEE. (a) The State Utilities
306	306	Reliability Fund Advisory Committee is composed of the following
307	307	members:
308	308	(1) the comptroller, or a person designated by the
309	309	comptroller;
310	310	(2) three members of the senate appointed by the
311	311	lieutenant governor, including:
312	312	(A) a member of the committee of the senate
313	313	having primary jurisdiction over matters relating to finance; and
314	314	(B) a member of the committee of the senate
315	315	having primary jurisdiction over natural resources;
316	316	(3) three members of the house of representatives
317	317	appointed by the speaker of the house of representatives,
318	318	including:
319	319	(A) a member of the committee of the house of
320	320	representatives having primary jurisdiction over appropriations;
321	321	and
322	322	(B) a member of the committee of the house of
323	323	representatives having primary jurisdiction over natural
324	324	resources;
325	325	(4) the chief executive of the Office of Public
326	326	Utility Counsel, or a person designated by the chief executive of
327	327	the Office of Public Utility Counsel;
328	328	(5) the presiding officer of the commission, or a
329	329	person designated by the presiding officer of the commission;
330	330	(6) the chair of the Texas Reliability Entity board of
331	331	directors, or a person designated by a public vote of the Texas
332	332	Reliability Entity; and
333	333	(7) an unaffiliated board member of the Electric
334	334	Reliability Council of Texas, appointed in a public meeting of the
335	335	Electric Reliability Council of Texas.
336	336	(b) The board shall provide staff as necessary to assist the
337	337	advisory committee.
338	338	(c) An appointed member of the advisory committee serves at
339	339	the will of the officer who appointed the member.
340	340	(d) The lieutenant governor shall appoint a co-presiding
341	341	officer of the advisory committee from among the members appointed
342	342	by the lieutenant governor, and the speaker of the house of
343	343	representatives shall appoint a co-presiding officer of the
344	344	committee from among the members appointed by the speaker.
345	345	(e) The advisory committee shall hold public hearings,
346	346	formal meetings, or work sessions in a location with audio and video
347	347	capacity. The board shall broadcast over the Internet live video
348	348	and audio of each public hearing, formal meeting, or work session of
349	349	the advisory committee and provide access to each broadcast on the
350	350	board's Internet website. Either co-presiding officer of the
351	351	advisory committee may call a public hearing, formal meeting, or
352	352	work session of the advisory committee after issuing a public
353	353	notice not later than the seventh day before the date of the public
354	354	hearing, formal meeting, or work session. The public notice must
355	355	include an agenda with formal actions included. The advisory
356	356	committee may not take formal action at a public hearing, formal
357	357	meeting, or work session unless a quorum of the committee is
358	358	present. The board shall provide access on the board's Internet
359	359	website to the public notices, recordings of the live broadcasts,
360	360	and minutes of public hearings, formal meetings, and work sessions.
361	361	(f) Except as otherwise provided by this subsection, a
362	362	member of the advisory committee is not entitled to receive
363	363	compensation for service on the committee or reimbursement for
364	364	expenses incurred in the performance of official duties as a member
365	365	of the committee. Service on the advisory committee by a member of
366	366	the senate or house of representatives is considered legislative
367	367	service for which the member is entitled to reimbursement and other
368	368	benefits in the same manner and to the same extent as for other
369	369	legislative service.
370	370	(g) The advisory committee shall submit comments and
371	371	recommendations to the board regarding the use of money in the fund
372	372	and in the revenue fund for use by the board in adopting rules under
373	373	Section 202.006 and in adopting policies and procedures under
374	374	Section 202.008. The submission must include:
375	375	(1) comments and recommendations on rulemaking
376	376	related to the prioritization of projects in accordance with
377	377	Section 202.004;
378	378	(2) comments and recommendations on rulemaking
379	379	related to establishing standards for determining whether projects
380	380	meet the criteria provided by Section 202.003;
381	381	(3) an evaluation of the available programs for
382	382	providing financing for projects authorized by this chapter and
383	383	guidelines for implementing those programs;
384	384	(4) an evaluation of the lending practices of the
385	385	board and guidelines for lending standards;
386	386	(5) an evaluation of the use of funds by the board to
387	387	provide support for financial assistance for projects that enhance
388	388	the reliability and resiliency of water, electric, and natural gas
389	389	utilities, broadband providers, and power generation companies for
390	390	this state, including support for the purposes described by Section
391	391	202.003(b);
392	392	(6) an evaluation of methods for encouraging
393	393	participation in the programs established under this chapter by
394	394	companies domiciled in this state or that employ a significant
395	395	number of residents of this state; and
396	396	(7) an evaluation of the overall operation, function,
397	397	and structure of the fund.
398	398	(h) The advisory committee shall review the overall
399	399	operation, function, and structure of the fund at least
400	400	semiannually and may provide comments and recommendations to the
401	401	board on any matter.
402	402	(i) The advisory committee may adopt rules, procedures, and
403	403	policies as needed to administer this section and implement its
404	404	responsibilities.
405	405	(j) Chapter 2110, Government Code, does not apply to the
406	406	size, composition, or duration of the advisory committee.
407	407	(k) The advisory committee is subject to Chapter 325,
408	408	Government Code (Texas Sunset Act). Unless continued in existence
409	409	as provided by that chapter, the advisory committee is abolished
410	410	and this section expires September 1, 2035.
411	411	(l) The advisory committee shall make recommendations to
412	412	the board regarding information to be posted on the board's
413	413	Internet website under Section 202.007(b).
414	414	(m) The advisory committee shall evaluate and may provide
415	415	comments or recommendations on the feasibility of the state owning,
416	416	constructing, and operating water, electric, natural gas, power
417	417	generation, or broadband facilities related to the purposes
418	418	described by Section 202.003(b).
419	419	(n) The executive administrator shall provide an annual
420	420	report to the advisory committee on:
421	421	(1) the board's compliance with statewide annual goals
422	422	relating to historically underutilized businesses; and
423	423	(2) the participation level of historically
424	424	underutilized businesses in projects that receive funding under
425	425	this chapter.
426	426	(o) If the aggregate level of participation by historically
427	427	underutilized businesses in projects that receive funding under
428	428	this chapter does not meet statewide annual goals adopted under
429	429	Chapter 2161, Government Code, the advisory committee shall make
430	430	recommendations to the board to improve the participation level.
431	431	Sec. 202.006. RULES. (a) The board shall adopt rules
432	432	providing for the use of money in the fund that are consistent with
433	433	this subchapter, including rules:
434	434	(1) establishing standards for determining whether
435	435	projects meet the criteria provided by Section 202.003;
436	436	(2) providing for public access to information on
437	437	financing assistance applications and providing for consideration
438	438	of public comment before financing decisions are made; and
439	439	(3) specifying the manner for prioritizing projects
440	440	for purposes of Section 202.004.
441	441	(b) The board shall give full consideration to the
442	442	recommendations of the advisory committee before adopting rules
443	443	under this chapter.
444	444	Sec. 202.007. REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
445	445	Not later than December 1 of each even-numbered year, the board
446	446	shall provide a report to the governor, lieutenant governor,
447	447	speaker of the house of representatives, and members of the
448	448	legislature regarding the use of the fund.
449	449	(b) The board shall post the following information on the
450	450	board's Internet website regarding the use of the fund and
451	451	regularly update the information posted:
452	452	(1) the progress made in enhancing critical water,
453	453	electric, natural gas, and broadband infrastructure to withstand
454	454	periods of high demand; and
455	455	(2) a description of each project funded through the
456	456	fund, including the expected date of completion of the project.
457	457	Sec. 202.008. POLICIES AND PROCEDURES TO MITIGATE OR
458	458	MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
459	459	adopt, and may amend from time to time at the board's discretion,
460	460	policies and procedures for the purpose of mitigating or minimizing
461	461	the adverse effects, if any, of federal laws and regulations
462	462	relating to income taxes, arbitrage, rebates, and related matters
463	463	that may restrict the board's ability to freely invest all or part
464	464	of the fund or to receive and retain all the earnings from the fund.
465	465	Sec. 202.009. COOPERATION WITH OTHER STATE AGENCIES. (a)
466	466	The commission, railroad commission, the State Energy Conservation
467	467	Office, and other state agencies shall provide resources to the
468	468	board that the board determines are necessary to carry out the
469	469	board's duties and responsibilities under this chapter.
470	470	(b) The board may require the commission to review and
471	471	recommend for approval electric utility, power generation company,
472	472	and broadband provider projects for board assistance under this
473	473	chapter and inspect electric utility, power generation company, and
474	474	broadband provider projects after board financial assistance.
475	475	(c) The board may require the railroad commission to review
476	476	and recommend for approval natural gas utility and power generation
477	477	projects for board assistance under this chapter and inspect
478	478	natural gas utility and power generation company projects after
479	479	board financial assistance.
480	480	(d) The board may require any other state agency to provide
481	481	services to the board to ensure the goals of the fund and this
482	482	chapter are met.
483	483	Sec. 202.010. RELIABILITY AND RESILIENCY STUDY AND PLAN.
484	484	(a) The board may, at any time, develop and conduct a study of the
485	485	needs, causes, and methods to address reliability and resiliency of
486	486	the industries affected by this chapter and may develop a statewide
487	487	reliability and resiliency plan.
488	488	(b) The board may, at any time, use money from the fund to
489	489	contract and engage outside entities to develop a study or plan
490	490	considered necessary by the board.
491	491	Sec. 202.011. CHANGES TO INDUSTRY STRUCTURE NOT IN CONFLICT
492	492	WITH CHAPTER. Any reconstruction or changes to the regulatory
493	493	market structures of the industries identified in this chapter are
494	494	not in conflict with the purpose of this chapter.
495	495	Sec. 202.012. PUBLIC PRIVATE PARTNERSHIPS. Money from the
496	496	fund may be used to make payments under a public and private entity
497	497	agreement to design, develop, finance, or construct a project
498	498	described by this chapter.
499	499	Sec. 202.013. METHODOLOGY AND STANDARDS FOR POWER
500	500	GENERATION FACILITY WEATHERIZATION. (a) The commission shall
501	501	develop a statistical methodology to determine the ambient
502	502	conditions to which each power generation facility must be
503	503	weatherized to comply with winter operations reliability
504	504	standards.
505	505	(b) A methodology or standard developed under Subsection
506	506	(a) may be used only to determine whether to provide financial
507	507	assistance or support to a project to weatherize a power generation
508	508	facility under this subtitle.
509	509	CHAPTER 203. STATE UTILITIES RELIABILITY REVENUE FUND
510	510	Sec. 203.001. REVENUE FUND. (a) The state utilities
511	511	reliability revenue fund is a special fund in the state treasury
512	512	outside the general revenue fund to be used by the board as
513	513	authorized by this chapter without further legislative
514	514	appropriation. The board may establish separate accounts in the
515	515	revenue fund and may transfer money between accounts. The board has
516	516	legal title to money and investments in the revenue fund until the
517	517	money is disbursed as provided by this chapter and board rules.
518	518	(b) Money deposited to the credit of the revenue fund may be
519	519	used only as provided by Section 203.003.
520	520	(c) The revenue fund consists of:
521	521	(1) money appropriated to the revenue fund;
522	522	(2) money transferred or deposited to the credit of
523	523	the revenue fund by law, including money from any source
524	524	transferred or deposited to the credit of the revenue fund at the
525	525	board's discretion as authorized by law;
526	526	(3) the proceeds of any fee or tax imposed by this
527	527	state that by statute is dedicated for deposit to the credit of the
528	528	revenue fund;
529	529	(4) any other revenue that the legislature by statute
530	530	dedicates for deposit to the credit of the revenue fund;
531	531	(5) investment earnings and interest earned on amounts
532	532	credited to the revenue fund;
533	533	(6) the proceeds from the sale of revenue bonds issued
534	534	by the board under this chapter that are designated by the board for
535	535	the purpose of providing money for the revenue fund;
536	536	(7) repayments of loans made from the revenue fund;
537	537	and
538	538	(8) money disbursed to the revenue fund from the state
539	539	utilities reliability fund as authorized by Section 202.003.
540	540	Sec. 203.002. MANAGEMENT AND INVESTMENT OF REVENUE FUND.
541	541	(a) Money deposited to the credit of the revenue fund shall be
542	542	invested as determined by the board. The revenue fund may be
543	543	invested with the state treasury pool.
544	544	(b) The revenue fund and any accounts established in the
545	545	revenue fund shall be kept and maintained by or at the direction of
546	546	the board.
547	547	(c) At the direction of the board, the revenue fund and any
548	548	accounts established in the revenue fund may be managed by the
549	549	board, the comptroller, or a corporate trustee that is a trust
550	550	company or a bank that has the powers of a trust company for and on
551	551	behalf of the board and, pending use of the revenue fund and
552	552	accounts for the purposes provided by this chapter, may be invested
553	553	as provided by an order, resolution, or rule of the board.
554	554	(d) The board, comptroller, or corporate trustee shall
555	555	manage the revenue fund in strict accordance with this chapter and
556	556	the orders, resolutions, and rules of the board.
557	557	Sec. 203.003. USE OF REVENUE FUND. (a) Money in the
558	558	revenue fund may be used by the board only to provide financial
559	559	assistance under terms specified by the board for projects that
560	560	enhance the reliability and resiliency of water, electric, natural
561	561	gas, broadband, and power generation facilities in this state,
562	562	including:
563	563	(1) projects that enhance the ability of facilities to
564	564	withstand periods of high demand;
565	565	(2) projects that reduce demand during periods of high
566	566	demand; and
567	567	(3) projects to weatherize facilities.
568	568	(b) Financial assistance for projects under Subsection (a)
569	569	may be provided in any form determined by the board that meets the
570	570	needs and goals of this state and the applicants, including a market
571	571	rate, low-interest, or no-interest loan, a loan guarantee, an
572	572	equity ownership in a public or private entity, a joint venture with
573	573	a public or private entity, a grant, an interest rebate, or an
574	574	interest subsidy.
575	575	(c) In providing financial assistance under Subsection (a),
576	576	the board may:
577	577	(1) make, enter into, and enforce contracts and
578	578	agreements, including management agreements, for the management of
579	579	any of the board's property, leases, indentures, mortgages, deeds
580	580	of trust, security agreements, pledge agreements, credit
581	581	agreements, overrides or other revenue sharing mechanisms,
582	582	repurchase agreements, and other instruments with any person,
583	583	including any lender and any federal, state, or local governmental
584	584	agency;
585	585	(2) contract with and provide for the compensation of
586	586	consultants and agents, including engineers, attorneys, management
587	587	consultants, financial advisors, indexing agents, and other
588	588	experts, as the business of the board may require; and
589	589	(3) take other actions to accomplish any of the board's
590	590	purposes.
591	591	(d) The board may use money in the revenue fund:
592	592	(1) as a source of revenue or security for the payment
593	593	of the principal of and interest on revenue bonds issued by the
594	594	board under this chapter;
595	595	(2) to pay the necessary and reasonable expenses of
596	596	paying agents, bond counsel, and financial advisory services and
597	597	similar costs incurred by the board in administering the revenue
598	598	fund; or
599	599	(3) to transfer money to the fund as necessary.
600	600	(e) The board, comptroller, or corporate trustee managing
601	601	the revenue fund at the direction of the board shall withdraw from
602	602	the revenue fund and pay to a person any amounts, as determined by
603	603	the board, for the timely payment of:
604	604	(1) the principal of and interest on bonds described
605	605	by Subsection (d)(1) that mature or become due; and
606	606	(2) any cost related to bonds described by Subsection
607	607	(d)(1) that become due, including payments under related credit
608	608	agreements.
609	609	(f) Money in the revenue fund may not be used for the purpose
610	610	of certification under Section 403.121, Government Code.
611	611	Sec. 203.004. ISSUANCE OF REVENUE BONDS. (a) The board may
612	612	issue revenue bonds for the purpose of providing money for the
613	613	revenue fund.
614	614	(b) The board may issue revenue bonds to refund revenue
615	615	bonds or bonds and obligations issued or incurred in accordance
616	616	with other provisions of law.
617	617	(c) Revenue bonds issued under this chapter are special
618	618	obligations of the board payable only from and secured by
619	619	designated income and receipts of the revenue fund, or of one or
620	620	more accounts in the revenue fund, including principal of and
621	621	interest paid and to be paid on revenue fund assets or income from
622	622	accounts created within the revenue fund by the board, as
623	623	determined by the board.
624	624	(d) Revenue bonds issued under this chapter do not
625	625	constitute indebtedness of the state as prohibited by the
626	626	constitution.
627	627	(e) The board may require revenue fund participants to make
628	628	charges, levy taxes, or otherwise provide for sufficient money to
629	629	pay acquired obligations.
630	630	(f) Revenue bonds issued under this chapter must be
631	631	authorized by resolution of the board and must have the form and
632	632	characteristics and bear the designations as the resolution
633	633	provides.
634	634	(g) Revenue bonds issued under this chapter may:
635	635	(1) bear interest at the rate or rates payable
636	636	annually or otherwise;
637	637	(2) be dated;
638	638	(3) mature at the time or times, serially, as term
639	639	revenue bonds, or otherwise in not more than 50 years from their
640	640	dates;
641	641	(4) be callable before stated maturity on the terms
642	642	and at the prices, be in the denominations, be in the form, either
643	643	coupon or registered, carry registration privileges as to principal
644	644	only or as to both principal and interest and as to successive
645	645	exchange of coupon for registered bonds or one denomination for
646	646	bonds of other denominations, and successive exchange of registered
647	647	revenue bonds for coupon revenue bonds, be executed in the manner,
648	648	and be payable at the place or places inside or outside the state,
649	649	as provided by the resolution;
650	650	(5) be issued in temporary or permanent form;
651	651	(6) be issued in one or more installments and from time
652	652	to time as required and sold at a price or prices and under terms
653	653	determined by the board to be the most advantageous reasonably
654	654	obtainable; and
655	655	(7) be issued on a parity with and be secured in the
656	656	manner as other revenue bonds authorized to be issued by this
657	657	chapter or may be issued without parity and secured differently
658	658	than other revenue bonds.
659	659	(h) Section 17.955, Water Code, applies to revenue bonds
660	660	issued under this chapter in the same manner as that section applies
661	661	to water financial assistance bonds.
662	662	(i) All proceedings relating to the issuance of revenue
663	663	bonds issued under this chapter shall be submitted to the attorney
664	664	general for examination. If the attorney general finds that the
665	665	revenue bonds have been authorized in accordance with law, the
666	666	attorney general shall approve the revenue bonds, and the revenue
667	667	bonds shall be registered by the comptroller. After the approval
668	668	and registration, the revenue bonds are incontestable in any court
669	669	or other forum for any reason and are valid and binding obligations
670	670	in accordance with their terms for all purposes.
671	671	(j) The proceeds received from the sale of revenue bonds
672	672	issued under this chapter may be deposited or invested in any manner
673	673	and in such investments as may be specified in the resolution or
674	674	other proceedings authorizing those obligations. Money in the
675	675	revenue fund or accounts created by this chapter or created in the
676	676	resolution or other proceedings authorizing the revenue bonds may
677	677	be invested in any manner and in any obligations as may be specified
678	678	in the resolution or other proceedings.
679	679	Sec. 203.005. CHAPTER CUMULATIVE OF OTHER LAWS. (a) This
680	680	chapter is cumulative of other laws on the subject, and the board
681	681	may use provisions of other applicable laws in the issuance of bonds
682	682	and other obligations, but this chapter is wholly sufficient
683	683	authority for the issuance of bonds and other obligations and the
684	684	performance of all other acts and procedures authorized by this
685	685	chapter.
686	686	(b) In addition to other authority granted by this chapter,
687	687	the board may exercise the authority granted to the governing body
688	688	of an issuer with regard to the issuance of obligations under
689	689	Chapter 1371, Government Code.
690	690	SECTION 4. Section 15.102(b), Water Code, is amended to
691	691	read as follows:
692	692	(b) The loan fund may also be used by the board to provide:
693	693	(1) grants or loans for projects that include
694	694	supplying water and wastewater services in economically distressed
695	695	areas or nonborder colonias as provided by legislative
696	696	appropriations, this chapter, and board rules, including projects
697	697	involving retail distribution of those services; [and]
698	698	(2) grants for:
699	699	(A) projects for which federal grant funds are
700	700	placed in the loan fund;
701	701	(B) projects, on specific legislative
702	702	appropriation for those projects; or
703	703	(C) water conservation, desalination, brush
704	704	control, weather modification, regionalization, and projects
705	705	providing regional water quality enhancement services as defined by
706	706	board rule, including regional conveyance systems; and
707	707	(3) loans or grants to water utilities, as that term is
708	708	defined by Section 201.001, Utilities Code, for projects that
709	709	enhance the reliability and resiliency of those water utilities by
710	710	weatherizing facilities or reducing water demand through water
711	711	conservation and water demand reduction efforts.
712	712	SECTION 5. (a) The terms used in this section have the
713	713	meanings assigned by Section 201.001, Utilities Code, as added by
714	714	this Act.
715	715	(b) The executive administrator of the Texas Water
716	716	Development Board, in coordination with the Public Utility
717	717	Commission of Texas, the Texas Commission on Environmental Quality,
718	718	the Railroad Commission of Texas, the State Energy Conservation
719	719	Office, and the independent organization certified under Section
720	720	39.151, Utilities Code, for the ERCOT power region, shall conduct a
721	721	study regarding:
722	722	(1) the need for financial assistance from the state
723	723	to weatherize:
724	724	(A) water utility facilities;
725	725	(B) electric utility facilities;
726	726	(C) natural gas utility facilities;
727	727	(D) power generation companies; and
728	728	(E) broadband provider facilities;
729	729	(2) the need for financial assistance from the state
730	730	to provide adequate capacity during periods of high demand for
731	731	electric utilities and natural gas utilities, including by reducing
732	732	electric and natural gas demand; and
733	733	(3) the financing structures desirable to potential
734	734	applicants for the categories listed in Subdivisions (1) and (2) of
735	735	this subsection.
736	736	(c) The costs of the study, including any external
737	737	management or consulting services considered necessary, may be paid
738	738	from the state utilities reliability fund.
739	739	(d) The executive administrator shall prepare a report on
740	740	the findings of the study conducted under this section and submit
741	741	the report to the State Utilities Reliability Fund Advisory
742	742	Committee not later than May 7, 2023.
743	743	(e) This section expires September 1, 2023.
744	744	SECTION 6. As soon as practicable after the effective date
745	745	of this Act, the lieutenant governor and the speaker of the house of
746	746	representatives shall appoint the initial appointive members of the
747	747	State Utilities Reliability Fund Advisory Committee as provided by
748	748	Section 202.005, Utilities Code, as added by this Act.
749	749	SECTION 7. (a) Not later than June 1, 2023, the State
750	750	Utilities Reliability Fund Advisory Committee shall submit
751	751	recommendations to the Texas Water Development Board on the rules
752	752	to be adopted by the board under Section 202.006(a), Utilities
753	753	Code, as added by this Act.
754	754	(b) Not later than December 1, 2023, the board shall propose
755	755	rules under Section 202.006, Utilities Code, as added by this Act.
756	756	SECTION 8. The Texas Water Development Board shall post the
757	757	information described by Section 202.007(b), Utilities Code, as
758	758	added by this Act, on the board's Internet website not later than
759	759	March 1, 2023.
760	760	SECTION 9. (a) Except as provided by Subsection (b) of this
761	761	section:
762	762	(1) this Act takes effect on the date on which the
763	763	constitutional amendment proposed by the 87th Legislature, 3rd
764	764	Called Session, 2021, creating the state utilities reliability fund
765	765	and the state utilities reliability revenue fund to provide
766	766	financial support for projects that enhance the reliability and
767	767	resiliency of water, electric, and natural gas utilities, broadband
768	768	providers, and power generation companies in this state takes
769	769	effect; or
770	770	(2) if the amendment described by Subdivision (1) of
771	771	this subsection is not approved by the voters, this Act has no
772	772	effect.
773	773	(b) Regardless of whether the constitutional amendment
774	774	described by Subsection (a) of this section is approved by the
775	775	voters, Section 5 of this Act takes effect:
776	776	(1) immediately, if this Act receives a vote of
777	777	two-thirds of all the members elected to each house, as provided by
778	778	Section 39, Article III, Texas Constitution; or
779	779	(2) on the 91st day after the last day of the
780	780	legislative session, if this Act does not receive the vote
781	781	necessary for immediate effect.