Texas 2023 - 88th Regular

Texas House Bill HB2286 Compare Versions

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Version 2 (New)

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1	1	88R7800 JXC-D
2	2	By: Shaheen H.B. No. 2286
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of the electric generating facility fund to
8	8	finance construction of electric generating facilities in the ERCOT
9	9	power region; authorizing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
12	12	by adding Chapter 34 to read as follows:
13	13	CHAPTER 34. ELECTRIC GENERATING FACILITY FUND
14	14	Sec. 34.0101. DEFINITIONS. In this chapter:
15	15	(1) "Advisory committee" means the Electric
16	16	Generating Facility Fund Advisory Committee.
17	17	(2) "Fund" means the electric generating facility fund
18	18	established by Section 49-q, Article III, Texas Constitution.
19	19	(3) "Trust company" means the Texas Treasury
20	20	Safekeeping Trust Company.
21	21	Sec. 34.0102. FUND. (a) The fund is a special fund in the
22	22	state treasury outside the general revenue fund to be administered
23	23	and used, without further appropriation, by the commission to
24	24	provide loans to finance the construction of electric generating
25	25	facilities in the ERCOT power region. The commission may establish
26	26	separate accounts in the fund.
27	27	(b) The fund and the fund's accounts are kept and held by the
28	28	trust company for and in the name of the commission. The commission
29	29	has legal title to money and investments in the fund until money is
30	30	disbursed from the fund as provided by this chapter and commission
31	31	rules.
32	32	(c) Money deposited to the credit of the fund may be used
33	33	only as provided by this chapter.
34	34	(d) The fund consists of:
35	35	(1) money transferred or deposited to the credit of
36	36	the fund by or as authorized by law, including money from any source
37	37	transferred or deposited to the credit of the fund at the
38	38	commission's discretion;
39	39	(2) revenue, including the proceeds of any fee,
40	40	assessment, or tax imposed by this state, that general law
41	41	dedicates for deposit to the credit of the fund; and
42	42	(3) investment earnings and interest earned on money
43	43	in the fund.
44	44	Sec. 34.0103. LOANS. (a) The commission may use money in
45	45	the fund to:
46	46	(1) make a loan to finance construction of a facility
47	47	that uses a source of heat to generate electricity; and
48	48	(2) pay the necessary and reasonable expenses of
49	49	administering the fund.
50	50	(b) An entity is eligible to receive a loan under this
51	51	chapter only if the entity is authorized by this title to operate
52	52	the type of facility for which the loan is requested.
53	53	(c) The commission may provide a loan under this chapter
54	54	that bears interest at a rate or rates determined by the commission,
55	55	including a rate or rates below prevailing market rates.
56	56	Sec. 34.0104. MANAGEMENT AND INVESTMENT OF FUND. (a) The
57	57	trust company shall hold and invest the fund, and any accounts
58	58	established in the fund, for and in the name of the commission,
59	59	taking into account the purposes for which money in the fund may be
60	60	used. The fund may be invested with the state treasury pool.
61	61	(b) The overall objective for the investment of the fund is
62	62	to maintain sufficient liquidity to meet the needs of the fund while
63	63	striving to preserve the purchasing power of the fund.
64	64	(c) The trust company has any power necessary to accomplish
65	65	the purposes of managing and investing the assets of the fund. In
66	66	managing the assets of the fund, through procedures and subject to
67	67	restrictions the trust company considers appropriate, the trust
68	68	company may acquire, exchange, sell, supervise, manage, or retain
69	69	any kind of investment that a prudent investor, exercising
70	70	reasonable care, skill, and caution, would acquire or retain in
71	71	light of the purposes, terms, distribution requirements, and other
72	72	circumstances of the fund then prevailing, taking into
73	73	consideration the investment of all the assets of the fund rather
74	74	than a single investment.
75	75	(d) The trust company may charge fees to cover its costs
76	76	incurred in managing and investing the fund. The fees must be
77	77	consistent with the fees the trust company charges other state and
78	78	local governmental entities for which it provides investment
79	79	management services. The trust company may recover fees it charges
80	80	under this subsection only from the earnings of the fund.
81	81	(e) The trust company annually shall provide a written
82	82	report to the commission and to the advisory committee with respect
83	83	to the investment of the fund. The trust company shall contract
84	84	with a certified public accountant to conduct an independent audit
85	85	of the fund annually and shall present the results of each annual
86	86	audit to the commission and to the advisory committee. This
87	87	subsection does not affect the state auditor's authority to conduct
88	88	an audit of the fund under Chapter 321, Government Code.
89	89	(f) The trust company shall adopt a written investment
90	90	policy that is appropriate for the fund. The trust company shall
91	91	present the investment policy to the investment advisory board
92	92	established under Section 404.028, Government Code. The investment
93	93	advisory board shall submit to the trust company recommendations
94	94	regarding the policy.
95	95	(g) The commission annually shall provide to the trust
96	96	company a forecast of the cash flows into and out of the fund. The
97	97	commission shall provide updates to the forecasts as appropriate to
98	98	ensure that the trust company is able to achieve the objective
99	99	specified by Subsection (b).
100	100	(h) The trust company shall disburse money from the fund as
101	101	directed by the commission.
102	102	(i) An investment-related contract entered into under this
103	103	section is not subject to Chapter 2260, Government Code.
104	104	Sec. 34.0105. ELECTRIC GENERATING FACILITY FUND ADVISORY
105	105	COMMITTEE. (a) The advisory committee is composed of the following
106	106	seven members:
107	107	(1) the comptroller or a person designated by the
108	108	comptroller;
109	109	(2) three members of the senate appointed by the
110	110	lieutenant governor, including:
111	111	(A) a member of the committee of the senate
112	112	having primary jurisdiction over matters relating to the generation
113	113	of electricity; and
114	114	(B) a member of the committee of the senate
115	115	having primary jurisdiction over finance; and
116	116	(3) three members of the house of representatives
117	117	appointed by the speaker of the house of representatives,
118	118	including:
119	119	(A) a member of the committee of the house of
120	120	representatives having primary jurisdiction over the generation of
121	121	electricity; and
122	122	(B) a member of the committee of the house of
123	123	representatives having primary jurisdiction over finance.
124	124	(b) The commission shall provide staff support for the
125	125	advisory committee.
126	126	(c) An appointed member of the advisory committee serves at
127	127	the will of the person who appointed the member.
128	128	(d) The lieutenant governor shall appoint a co-presiding
129	129	officer of the advisory committee from among the members appointed
130	130	by the lieutenant governor. The speaker of the house of
131	131	representatives shall appoint a co-presiding officer of the
132	132	advisory committee from among the members appointed by the speaker.
133	133	(e) The advisory committee may hold public hearings, formal
134	134	meetings, and work sessions. Either co-presiding officer of the
135	135	advisory committee may call a public hearing, formal meeting, or
136	136	work session of the advisory committee at any time. The advisory
137	137	committee may not take formal action at a public hearing, formal
138	138	meeting, or work session unless a quorum of the committee is
139	139	present.
140	140	(f) Except as otherwise provided by this subsection, a
141	141	member of the advisory committee is not entitled to receive
142	142	compensation for service on the committee or reimbursement for
143	143	expenses incurred in the performance of official duties as a member
144	144	of the committee. Service on the advisory committee by a member of
145	145	the senate or house of representatives is considered legislative
146	146	service for which the member is entitled to reimbursement and other
147	147	benefits in the same manner and to the same extent as for other
148	148	legislative service.
149	149	(g) The advisory committee:
150	150	(1) may provide comments and recommendations to the
151	151	commission for the commission to use in adopting rules regarding
152	152	the use of the fund or on any other matter; and
153	153	(2) shall review the overall operation, function, and
154	154	structure of the fund at least semiannually.
155	155	(h) The advisory committee may adopt rules, procedures, and
156	156	policies as needed to administer this section and implement its
157	157	responsibilities.
158	158	(i) Chapter 2110, Government Code, does not apply to the
159	159	size, composition, or duration of the advisory committee.
160	160	(j) The advisory committee is subject to Chapter 325,
161	161	Government Code (Texas Sunset Act). Unless continued in existence
162	162	as provided by that chapter, the advisory committee is abolished
163	163	September 1, 2035.
164	164	Sec. 34.0106. RULES. (a) The commission by rule may
165	165	establish procedures for:
166	166	(1) the application for and award of a loan under this
167	167	chapter; and
168	168	(2) the administration of the fund.
169	169	(b) The commission shall give full consideration to
170	170	comments and recommendations of the advisory committee before it
171	171	adopts rules under this chapter.
172	172	SECTION 2. This Act takes effect on the date on which the
173	173	constitutional amendment proposed by the 88th Legislature, Regular
174	174	Session, 2023, providing for the creation of the electric
175	175	generating facility fund to finance construction of electric
176	176	generating facilities takes effect. If that amendment is not
177	177	approved by the voters, this Act has no effect.