Texas 2023 - 88th Regular

Texas Senate Bill SB1874 Compare Versions

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1	1	88R8155 JXC-F
2	2	By: Schwertner S.B. No. 1874
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the operation of certain infrastructure during a
8	8	weather emergency; authorizing administrative penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 81.073(b), Natural Resources Code, as
11	11	added by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular
12	12	Session, 2021, is amended to read as follows:
13	13	(b) The rules must:
14	14	(1) establish criteria for designating persons who own
15	15	or operate a facility under the jurisdiction of the commission
16	16	under Section 81.051(a) or engage in an activity under the
17	17	jurisdiction of the commission under Section 81.051(a) who must
18	18	provide critical customer and critical gas supply information, as
19	19	defined by the commission, to the entities described by Section
20	20	38.074(b)(1), Utilities Code; and
21	21	(2) consider essential operational elements when
22	22	defining critical customer designations and critical gas supply
23	23	information for the purposes of Subdivision (1), including:
24	24	(A) natural gas production, processing, and
25	25	transportation and[,] related produced water handling and
26	26	disposal;
27	27	(B) the net load of electricity required for a
28	28	facility;
29	29	(C) the ability of an operator to reduce demand
30	30	from a facility in response to an instruction issued by an
31	31	independent system operator, as defined by Section 31.002,
32	32	Utilities Code; [facilities,] and
33	33	(D) the delivery of natural gas to generators of
34	34	electric energy[; and
35	35	[(3) require that only facilities and entities that
36	36	are prepared to operate during a weather emergency may be
37	37	designated as a critical customer under this section].
38	38	SECTION 2. Sections 86.044(d), (f), and (g), Natural
39	39	Resources Code, are amended to read as follows:
40	40	(d) The commission shall:
41	41	(1) inspect gas supply chain facilities for compliance
42	42	with rules adopted under Subsection (c); and
43	43	(2) provide the owner of a facility described by
44	44	Subdivision (1) with a reasonable period of time in which to remedy
45	45	any violation the commission discovers in an inspection[; and
46	46	[(3) report to the attorney general any violation that
47	47	is not remedied in a reasonable period of time].
48	48	(f) The commission by rule shall require an operator of a
49	49	gas supply chain facility that experiences repeated
50	50	weather-related or major weather-related forced interruptions of
51	51	production to:
52	52	(1) [contract with a person who is not an employee of
53	53	the operator to] assess the operator's weatherization plans,
54	54	procedures, and operations and propose remedial measures; and
55	55	(2) submit the assessment and remedial measures to the
56	56	commission.
57	57	(g) The commission may require an operator of a gas supply
58	58	chain facility to implement remedial measures [appropriate
59	59	recommendations included in an assessment] submitted to the
60	60	commission under Subsection (f) if the commission determines the
61	61	remedial measures are necessary for compliance with rules adopted
62	62	under Subsection (c).
63	63	SECTION 3. Section 86.223, Natural Resources Code, is
64	64	amended to read as follows:
65	65	Sec. 86.223. SUIT FOR PENALTY. The penalty authorized by
66	66	Section 86.222 may be recovered with the cost of suit by the State
67	67	of Texas through the attorney general or the county or district
68	68	attorney when joined by the attorney general in a civil action
69	69	instituted in Travis County, in the county in which the violation
70	70	occurred, or in the county of residence of the defendant.
71	71	SECTION 4. Subchapter G, Chapter 86, Natural Resources
72	72	Code, is amended by adding Section 86.2235, and a heading is added
73	73	to that section to read as follows:
74	74	Sec. 86.2235. WEATHER EMERGENCY PREPAREDNESS PENALTIES.
75	75	SECTION 5. Sections 86.222(a-1), (c), and (d), Natural
76	76	Resources Code, are transferred to Section 86.2235, Natural
77	77	Resources Code, as added by this Act, redesignated as Sections
78	78	86.2235(a), (b), (c), and (d), Natural Resources Code, and amended
79	79	to read as follows:
80	80	(a) Section 86.222 does not apply to a violation
81	81	[(a-1) Notwithstanding Subsection (a), a person who violates a
82	82	provision] of a rule adopted under Section 86.044. If the
83	83	commission determines that a person has violated a rule adopted
84	84	under Section 86.044, the commission shall assess a penalty against
85	85	the person in the manner provided by Sections 81.0532-81.0534 for
86	86	assessing an administrative penalty under Section 81.0531.
87	87	(b) The penalty may not exceed [is liable for a penalty of
88	88	not more than] $1,000,000 for each offense. Each day a violation
89	89	occurs constitutes a separate offense.
90	90	(c) The commission by rule shall establish a classification
91	91	system to be used [by a court under this subchapter] for violations
92	92	of rules adopted under Section 86.044 that includes a range of
93	93	penalties that may be recovered for each class of violation based
94	94	on:
95	95	(1) the seriousness of the violation, including:
96	96	(A) the nature, circumstances, extent, and
97	97	gravity of a prohibited act; and
98	98	(B) the hazard or potential hazard created to the
99	99	health, safety, or economic welfare of the public;
100	100	(2) the history of previous violations;
101	101	(3) the amount necessary to deter future violations;
102	102	(4) efforts to correct the violation; and
103	103	(5) any other matter that justice may require.
104	104	(d) The classification system established under Subsection
105	105	(c) shall provide that a penalty in an amount that exceeds $5,000
106	106	may be recovered only if the violation is included in the highest
107	107	class of violations in the classification system.
108	108	SECTION 6. Section 86.2235, Natural Resources Code, as
109	109	added by this Act, is amended by adding Subsection (e) to read as
110	110	follows:
111	111	(e) Notwithstanding Subsection (a), the commission may not
112	112	assess a penalty against an operator of a facility for a violation
113	113	of a rule adopted under Section 86.044 if the commission determines
114	114	that the operator made reasonably prudent efforts to comply with
115	115	the rule, regardless of whether the facility failed to operate
116	116	during a weather emergency.
117	117	SECTION 7. Section 38.202(f), Utilities Code, is amended to
118	118	read as follows:
119	119	(f) Information written, produced, collected, assembled, or
120	120	maintained under law or in connection with the transaction of
121	121	official business by the committee or an officer or employee of the
122	122	committee is subject to Section 552.008, Government Code, including
123	123	information that is confidential under Section 418.181, Government
124	124	Code. This subsection does not apply to the physical locations of
125	125	critical facilities, maps created under this subchapter, or
126	126	proprietary information created or gathered during the mapping
127	127	process.
128	128	SECTION 8. Section 38.203(d), Utilities Code, is amended to
129	129	read as follows:
130	130	(d) Except as provided by Section 38.202(f):
131	131	(1) the [The] information maintained in the database
132	132	is confidential under Section 418.181, Government Code, and not
133	133	subject to disclosure under Chapter 552, Government Code; and
134	134	(2) portions of documents in the possession of the
135	135	committee that are confidential under Section 418.181, Government
136	136	Code, are not subject to disclosure under Chapter 552, Government
137	137	Code.
138	138	SECTION 9. Subchapter F, Chapter 38, Utilities Code, is
139	139	amended by adding Section 38.205 to read as follows:
140	140	Sec. 38.205. NOTICE AND HEARING BEFORE ADDING NATURAL GAS
141	141	FACILITY TO MAP. (a) The committee may include on the electricity
142	142	supply chain map a gas supply chain facility, as defined by Section
143	143	86.044, Natural Resources Code, or a gas pipeline facility
144	144	described by Section 121.2015, only after the committee provides
145	145	the operator of the facility with notice and an opportunity for a
146	146	contested case hearing in the manner provided by Chapter 2001,
147	147	Government Code. If the operator requests a hearing, the committee
148	148	shall refer the matter to the Railroad Commission of Texas for the
149	149	hearing.
150	150	(b) The Railroad Commission of Texas shall hold the
151	151	contested case hearing and issue a decision in writing in
152	152	accordance with Chapter 2001, Government Code, as to whether the
153	153	facility may be included on the electricity supply chain map based
154	154	on applicable rules and provisions of this code and the Natural
155	155	Resources Code.
156	156	(c) The committee shall comply with the decision issued by
157	157	the Railroad Commission of Texas.
158	158	SECTION 10. The following provisions are repealed:
159	159	(1) Section 86.044(h), Natural Resources Code; and
160	160	(2) Section 186.008, Utilities Code.
161	161	SECTION 11. Section 38.205, Utilities Code, as added by
162	162	this Act, applies only to the addition of a gas supply chain
163	163	facility or gas pipeline facility to the electricity supply chain
164	164	map under Subchapter F, Chapter 38, Utilities Code, on or after the
165	165	effective date of this Act.
166	166	SECTION 12. This Act takes effect September 1, 2023.