Texas 2023 - 88th Regular

Texas House Bill HB4834 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R10094 JXC-D
2	2	By: Hunter H.B. No. 4834
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of the Texas energy reliability fund to finance
8	8	construction of electric generating facilities in the ERCOT power
9	9	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. TEXAS ENERGY RELIABILITY FUND
14	14	Sec. 34.0101. DEFINITIONS. In this chapter:
15	15	(1) "Advisory committee" means the Texas Energy
16	16	Reliability Fund Advisory Committee.
17	17	(2) "Fund" means the Texas energy reliability 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 the construction of:
47	47	(A) a dispatchable facility that uses a source of
48	48	heat to generate electricity; or
49	49	(B) additional generating capacity for a
50	50	dispatchable facility that uses a source of heat to generate
51	51	electricity; and
52	52	(2) pay the necessary and reasonable expenses of
53	53	administering the fund.
54	54	(b) For the purposes of this section, a generating facility
55	55	is considered to be dispatchable if the facility's output can be
56	56	controlled primarily by forces within human control.
57	57	(c) An entity is eligible to receive a loan under this
58	58	chapter only if the entity is authorized by this title to operate
59	59	the type of facility for which the loan is requested.
60	60	(d) The commission may provide a loan under this chapter
61	61	that bears interest at a rate or rates determined by the commission,
62	62	including a rate or rates below prevailing market rates.
63	63	(e) The commission may provide a loan under this chapter
64	64	only if the commission finds that the facility for which the loan is
65	65	provided is necessary for the service, accommodation, convenience,
66	66	or safety of the public. The commission shall provide each loan on a
67	67	nondiscriminatory basis after considering the factors listed in
68	68	Sections 37.056(c), (c-1), and (d).
69	69	(f) The commission shall require a person who applies for a
70	70	loan under this chapter to include in the loan application a plan to
71	71	ensure that the project for which the loan is requested will be
72	72	operational not later than the fifth anniversary of the date the
73	73	loan is disbursed.
74	74	(g) Information submitted to the commission in an
75	75	application for a loan under this chapter is confidential and not
76	76	subject to disclosure under Chapter 552, Government Code.
77	77	Sec. 34.0104. MANAGEMENT AND INVESTMENT OF FUND. (a) The
78	78	trust company shall hold and invest the fund, and any accounts
79	79	established in the fund, for and in the name of the commission,
80	80	taking into account the purposes for which money in the fund may be
81	81	used. The fund may be invested with the state treasury pool.
82	82	(b) The overall objective for the investment of the fund is
83	83	to maintain sufficient liquidity to meet the needs of the fund while
84	84	striving to preserve the purchasing power of the fund.
85	85	(c) The trust company has any power necessary to accomplish
86	86	the purposes of managing and investing the assets of the fund. In
87	87	managing the assets of the fund, through procedures and subject to
88	88	restrictions the trust company considers appropriate, the trust
89	89	company may acquire, exchange, sell, supervise, manage, or retain
90	90	any kind of investment that a prudent investor, exercising
91	91	reasonable care, skill, and caution, would acquire or retain in
92	92	light of the purposes, terms, distribution requirements, and other
93	93	circumstances of the fund then prevailing, taking into
94	94	consideration the investment of all the assets of the fund rather
95	95	than a single investment.
96	96	(d) The trust company may charge fees to cover its costs
97	97	incurred in managing and investing the fund. The fees must be
98	98	consistent with the fees the trust company charges other state and
99	99	local governmental entities for which it provides investment
100	100	management services. The trust company may recover fees it charges
101	101	under this subsection only from the earnings of the fund.
102	102	(e) The trust company annually shall provide a written
103	103	report to the commission and to the advisory committee with respect
104	104	to the investment of the fund. The trust company shall contract
105	105	with a certified public accountant to conduct an independent audit
106	106	of the fund annually and shall present the results of each annual
107	107	audit to the commission and to the advisory committee. This
108	108	subsection does not affect the state auditor's authority to conduct
109	109	an audit of the fund under Chapter 321, Government Code.
110	110	(f) The trust company shall adopt a written investment
111	111	policy that is appropriate for the fund. The trust company shall
112	112	present the investment policy to the investment advisory board
113	113	established under Section 404.028, Government Code. The investment
114	114	advisory board shall submit to the trust company recommendations
115	115	regarding the policy.
116	116	(g) The commission annually shall provide to the trust
117	117	company a forecast of the cash flows into and out of the fund. The
118	118	commission shall provide updates to the forecasts as appropriate to
119	119	ensure that the trust company is able to achieve the objective
120	120	specified by Subsection (b).
121	121	(h) The trust company shall disburse money from the fund as
122	122	directed by the commission.
123	123	(i) An investment-related contract entered into under this
124	124	section is not subject to Chapter 2260, Government Code.
125	125	Sec. 34.0105. TEXAS ENERGY RELIABILITY FUND ADVISORY
126	126	COMMITTEE. (a) The advisory committee is composed of the following
127	127	seven members:
128	128	(1) the comptroller or a person designated by the
129	129	comptroller;
130	130	(2) three members of the senate appointed by the
131	131	lieutenant governor, including:
132	132	(A) a member of the committee of the senate
133	133	having primary jurisdiction over matters relating to the generation
134	134	of electricity; and
135	135	(B) a member of the committee of the senate
136	136	having primary jurisdiction over finance; and
137	137	(3) three members of the house of representatives
138	138	appointed by the speaker of the house of representatives,
139	139	including:
140	140	(A) a member of the committee of the house of
141	141	representatives having primary jurisdiction over the generation of
142	142	electricity; and
143	143	(B) a member of the committee of the house of
144	144	representatives having primary jurisdiction over finance.
145	145	(b) The commission shall provide staff support for the
146	146	advisory committee.
147	147	(c) An appointed member of the advisory committee serves at
148	148	the will of the person who appointed the member.
149	149	(d) The lieutenant governor shall appoint a co-presiding
150	150	officer of the advisory committee from among the members appointed
151	151	by the lieutenant governor. The speaker of the house of
152	152	representatives shall appoint a co-presiding officer of the
153	153	advisory committee from among the members appointed by the speaker.
154	154	(e) The advisory committee may hold public hearings, formal
155	155	meetings, and work sessions. Either co-presiding officer of the
156	156	advisory committee may call a public hearing, formal meeting, or
157	157	work session of the advisory committee at any time. The advisory
158	158	committee may not take formal action at a public hearing, formal
159	159	meeting, or work session unless a quorum of the committee is
160	160	present.
161	161	(f) Except as otherwise provided by this subsection, a
162	162	member of the advisory committee is not entitled to receive
163	163	compensation for service on the committee or reimbursement for
164	164	expenses incurred in the performance of official duties as a member
165	165	of the committee. Service on the advisory committee by a member of
166	166	the senate or house of representatives is considered legislative
167	167	service for which the member is entitled to reimbursement and other
168	168	benefits in the same manner and to the same extent as for other
169	169	legislative service.
170	170	(g) The advisory committee:
171	171	(1) may provide comments and recommendations to the
172	172	commission for the commission to use in adopting rules regarding
173	173	the use of the fund or on any other matter; and
174	174	(2) shall review the overall operation, function, and
175	175	structure of the fund at least semiannually.
176	176	(h) The advisory committee may adopt rules, procedures, and
177	177	policies as needed to administer this section and implement its
178	178	responsibilities.
179	179	(i) Chapter 2110, Government Code, does not apply to the
180	180	size, composition, or duration of the advisory committee.
181	181	(j) The advisory committee is subject to Chapter 325,
182	182	Government Code (Texas Sunset Act). Unless continued in existence
183	183	as provided by that chapter, the advisory committee is abolished
184	184	September 1, 2035.
185	185	Sec. 34.0106. RULES. (a) The commission by rule may
186	186	establish procedures for:
187	187	(1) the application for and award of a loan under this
188	188	chapter; and
189	189	(2) the administration of the fund.
190	190	(b) The commission shall give full consideration to
191	191	comments and recommendations of the advisory committee before it
192	192	adopts rules under this chapter.
193	193	SECTION 2. This Act takes effect on the date on which the
194	194	constitutional amendment proposed by the 88th Legislature, Regular
195	195	Session, 2023, providing for the creation of the Texas energy
196	196	reliability fund to finance construction of electric generating
197	197	facilities takes effect. If that amendment is not approved by the
198	198	voters, this Act has no effect.