Texas 2023 - 88th Regular

Texas Senate Bill SB2627 Compare Versions

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1	1	S.B. No. 2627
2	2
3	3
4	4	AN ACT
5	5	relating to funding mechanisms to support the construction,
6	6	maintenance, modernization, and operation of electric generating
7	7	facilities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. This Act may be cited as the Powering Texas
10	10	Forward Act.
11	11	SECTION 2. Subtitle B, Title 2, Utilities Code, is amended
12	12	by adding Chapter 34 to read as follows:
13	13	CHAPTER 34. FACILITY FUNDING
14	14	SUBCHAPTER A. TEXAS ENERGY FUND; GRANTS AND LOANS
15	15	Sec. 34.0101. DEFINITIONS. In this subchapter:
16	16	(1) "Advisory committee" means the Texas Energy Fund
17	17	Advisory Committee.
18	18	(2) "Fund" means the Texas energy fund established by
19	19	Section 49-q, Article III, Texas Constitution.
20	20	(3) "Trust company" means the Texas Treasury
21	21	Safekeeping Trust Company.
22	22	Sec. 34.0102. FUND. (a) The fund is a special fund in the
23	23	state treasury outside the general revenue fund to be administered
24	24	and used by the commission for the purposes authorized by this
25	25	chapter. The commission may establish separate accounts in the
26	26	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.
29	29	(c) Money deposited to the credit of the fund may be used
30	30	only as provided by this chapter.
31	31	(d) The fund consists of:
32	32	(1) money appropriated, credited, transferred, or
33	33	deposited to the credit of the fund by or as authorized by law,
34	34	including money from any source transferred or deposited to the
35	35	credit of the fund at the commission's discretion;
36	36	(2) revenue that the legislature by statute dedicates
37	37	for deposit to the credit of the fund;
38	38	(3) investment earnings and interest earned on money
39	39	in the fund; and
40	40	(4) gifts, grants, and donations contributed to the
41	41	fund.
42	42	Sec. 34.0103. GRANTS FOR FACILITIES OUTSIDE ERCOT POWER
43	43	REGION. (a) The commission may use money in the fund without
44	44	further appropriation to provide grants to be used for transmission
45	45	and distribution infrastructure and electric generating facilities
46	46	in this state outside the ERCOT power region for:
47	47	(1) facility modernization;
48	48	(2) facility weatherization;
49	49	(3) reliability and resiliency facility enhancements;
50	50	or
51	51	(4) vegetation management.
52	52	(b) In evaluating an application for a grant under this
53	53	section, the commission:
54	54	(1) shall evaluate whether the project for which the
55	55	grant is requested is reasonable; and
56	56	(2) may consider any other appropriate factors.
57	57	(c) Information submitted to the commission in an
58	58	application for a grant under this section is confidential and not
59	59	subject to disclosure under Chapter 552, Government Code.
60	60	(d) Proceeds of a grant received under this section may not
61	61	be used for:
62	62	(1) compliance with weatherization standards adopted
63	63	before December 1, 2023; or
64	64	(2) debt payments.
65	65	Sec. 34.0104. LOANS FOR ERCOT POWER REGION. (a) The
66	66	commission may use money in the fund without further appropriation
67	67	to provide loans to finance upgrades to existing dispatchable
68	68	electric generating facilities providing power for the ERCOT power
69	69	region that result in a net increase of at least 100 megawatts of
70	70	capacity for each facility or the construction of dispatchable
71	71	electric generating facilities providing power for the ERCOT power
72	72	region that each have a generation capacity of at least 100
73	73	megawatts. For the purposes of this section, a generating facility
74	74	is considered to be dispatchable if the facility's output can be
75	75	controlled primarily by forces under human control. An electric
76	76	energy storage facility is not eligible for a loan under this
77	77	section.
78	78	(b) The commission may provide a construction loan under
79	79	this section only:
80	80	(1) for construction of a facility that will have a
81	81	generation capacity of at least 100 megawatts and that does not meet
82	82	the planning model requirements necessary to be included in the
83	83	Capacity Demand and Reserves Report of the independent organization
84	84	certified under Section 39.151 for the ERCOT power region before
85	85	June 1, 2023;
86	86	(2) in an amount that does not exceed 60 percent of the
87	87	estimated cost of the facility to be constructed; and
88	88	(3) if the agreement ensures that the loan is to be the
89	89	senior debt secured by the facility.
90	90	(c) The commission shall evaluate an application for a loan
91	91	under this section based on:
92	92	(1) the applicant's:
93	93	(A) quality of services and management;
94	94	(B) efficiency of operations;
95	95	(C) history of electricity generation operations
96	96	in this state and this country;
97	97	(D) resource operation attributes;
98	98	(E) ability to address regional and reliability
99	99	needs;
100	100	(F) access to resources essential for operating
101	101	the facility for which the loan is requested, such as land, water,
102	102	and reliable infrastructure, as applicable; and
103	103	(G) evidence of creditworthiness and ability to
104	104	repay the loan on the terms established in the loan agreement,
105	105	including the applicant's total assets, total liabilities, net
106	106	worth, and credit ratings issued by major credit rating agencies;
107	107	(2) the generation capacity and estimated costs of the
108	108	project for which the loan is requested; and
109	109	(3) any other factors the commission considers
110	110	appropriate.
111	111	(d) Outstanding loans provided under this section and
112	112	grants provided under Section 34.0105, considered together, may not
113	113	support the addition or construction of more than 10,000 megawatts
114	114	of generation capacity.
115	115	(e) An electric utility other than a river authority may not
116	116	receive a loan under this section.
117	117	(f) A loan provided under this section must:
118	118	(1) have a term of 20 years;
119	119	(2) be payable ratably starting on the third
120	120	anniversary of the estimated commercial operation date of the
121	121	facility for which the loan was provided, as stated in the loan
122	122	application; and
123	123	(3) bear an interest rate of three percent.
124	124	(g) The commission shall require each recipient of a loan
125	125	under this section to deposit in an escrow account held by the
126	126	comptroller an amount of money equal to three percent of the
127	127	estimated cost of the project for which the loan is provided. The
128	128	deposit must be made before the initial loan funds are disbursed.
129	129	The loan recipient may not withdraw the deposit unless authorized
130	130	by the commission.
131	131	(h) For money deposited under Subsection (g) for a loan for
132	132	the construction of a new facility, the commission:
133	133	(1) shall authorize the loan recipient to withdraw the
134	134	deposit from the escrow account if the facility for which the loan
135	135	was provided is interconnected in the ERCOT power region before the
136	136	fourth anniversary of the date the initial loan funds were
137	137	disbursed; or
138	138	(2) after the fourth anniversary of the date the
139	139	initial loan funds were disbursed, may authorize the loan recipient
140	140	to withdraw the deposit from the escrow account if the facility for
141	141	which the loan was provided is interconnected in the ERCOT power
142	142	region not later than the fifth anniversary of the date the initial
143	143	loan funds were disbursed and the commission determines that
144	144	extenuating circumstances justify the delay in completion.
145	145	(i) For money deposited under Subsection (g) for a loan for
146	146	an upgrade to an existing facility, the commission:
147	147	(1) shall authorize the loan recipient to withdraw the
148	148	deposit from the escrow account if the project for which the loan
149	149	was provided is completed before the third anniversary of the date
150	150	the initial loan funds were disbursed; or
151	151	(2) after the third anniversary of the date the
152	152	initial loan funds were disbursed, may authorize the loan recipient
153	153	to withdraw the deposit from the escrow account if the project for
154	154	which the loan was provided is completed not later than the fourth
155	155	anniversary of the date the initial loan funds were disbursed and
156	156	the commission determines that extenuating circumstances justify
157	157	the delay in completion.
158	158	(j) The comptroller shall deposit to the credit of the fund
159	159	any escrow funds described by Subsection (g) that the commission
160	160	may not authorize to be withdrawn by a loan recipient.
161	161	(k) Information submitted to the commission in an
162	162	application for a loan under this section is confidential and not
163	163	subject to disclosure under Chapter 552, Government Code.
164	164	(l) The commission may not disburse the initial funds for a
165	165	loan under this section after December 31, 2025.
166	166	(m) This section expires September 1, 2050.
167	167	Sec. 34.0105. COMPLETION BONUS GRANTS. (a) The commission
168	168	shall provide, using money available in the fund for the purpose
169	169	without further appropriation, a completion bonus grant for the
170	170	construction of dispatchable electric generating facilities in the
171	171	ERCOT power region. For the purposes of this section, a generating
172	172	facility is considered to be dispatchable if the facility's output
173	173	can be controlled primarily by forces under human control. An
174	174	electric energy storage facility is not eligible for a grant under
175	175	this section.
176	176	(b) The amount of a grant under this section must be based on
177	177	the megawatts of capacity provided to the ERCOT power region by the
178	178	facility.
179	179	(c) The commission may provide a grant under this section
180	180	only for construction of a facility that:
181	181	(1) will have a generation capacity of at least 100
182	182	megawatts; and
183	183	(2) does not meet the planning model requirements
184	184	necessary to be included in the Capacity Demand and Reserves Report
185	185	of the independent organization certified under Section 39.151 for
186	186	the ERCOT power region before June 1, 2023.
187	187	(d) The commission shall evaluate an application for a grant
188	188	under this section based on:
189	189	(1) the applicant's:
190	190	(A) quality of services and management;
191	191	(B) efficiency of operations;
192	192	(C) history of electricity generation operations
193	193	in this state and this country;
194	194	(D) resource operation attributes; and
195	195	(E) ability to address regional and reliability
196	196	needs;
197	197	(2) the generation capacity and estimated
198	198	construction costs of the facility for which the grant is
199	199	requested; and
200	200	(3) any other factors the commission considers
201	201	appropriate.
202	202	(e) Information submitted to the commission in an
203	203	application for a grant under this section is confidential and not
204	204	subject to disclosure under Chapter 552, Government Code.
205	205	(f) Unless the commission determines that extenuating
206	206	circumstances justify extending the deadlines provided by this
207	207	subsection, the commission may not provide a grant under this
208	208	section of more than:
209	209	(1) $120,000 per megawatt of capacity provided by a
210	210	facility that is interconnected in the ERCOT power region before
211	211	June 1, 2026; or
212	212	(2) $80,000 per megawatt of capacity provided by a
213	213	facility that is interconnected in the ERCOT power region on or
214	214	after June 1, 2026, and before June 1, 2029.
215	215	(g) Unless the commission determines that extenuating
216	216	circumstances justify extending the deadline provided by this
217	217	subsection, the commission may not provide a grant under this
218	218	section for a facility that is interconnected in the ERCOT power
219	219	region on or after June 1, 2029.
220	220	(h) The commission shall provide for the proceeds of each
221	221	grant awarded under this section to be disbursed to the grant
222	222	recipient by equal annual payments over a 10-year period that
223	223	begins on the first anniversary of the commercial operations date
224	224	of the facility for which the grant is provided. The annual
225	225	payments are subject to being withheld or discounted in accordance
226	226	with Subsection (i). The total of the annual disbursements may not
227	227	exceed the maximum amount as limited by Subsection (f).
228	228	(i) The commission by rule shall establish performance
229	229	standards for grant recipients based on reliability metrics,
230	230	appropriate for the types of facilities for which grants may be
231	231	provided, for performance during the 100 hours with the least
232	232	quantity of operating reserves for each year. The commission may
233	233	not disburse a grant recipient's annual payment under Subsection
234	234	(h) if the performance of the facility for which the grant was
235	235	provided is equal to or below the median performance standard
236	236	established under this subsection during a test period designated
237	237	by the commission for that year. The commission may disburse a
238	238	discounted amount of a grant recipient's annual payment under
239	239	Subsection (h) if the performance of the facility for which the
240	240	grant was provided is above the median performance standard
241	241	established under this subsection during a test period designated
242	242	by the commission for that year but less than an optimal performance
243	243	standard established by the commission. The commission shall by
244	244	rule adopt a system for determining the amount by which the
245	245	commission will discount an annual payment based on facility
246	246	performance under this subsection.
247	247	(j) This section expires December 1, 2040.
248	248	Sec. 34.0106. LOAN AND GRANT RESTRICTIONS. (a) If the
249	249	commission has more than four pending applications for loans to be
250	250	made from the fund on the date the commission awards a loan, the
251	251	amount of the loan awarded may not exceed 25 percent of the fund
252	252	balance on that date.
253	253	(b) The commission may not provide a loan or a grant under
254	254	this chapter:
255	255	(1) for a facility that will be used primarily to serve
256	256	an industrial load or private use network; or
257	257	(2) for the construction or operation of a natural gas
258	258	transmission pipeline.
259	259	(c) The commission shall require each recipient of a loan
260	260	under this chapter to enter into a debt covenant that requires the
261	261	recipient to meet facility performance standards adopted by the
262	262	commission. The commission by rule shall adopt performance
263	263	standards for the purposes of this subsection based on reliability
264	264	metrics appropriate for the types of facilities for which loans may
265	265	be provided.
266	266	(d) Each facility for which a loan or grant is provided
267	267	under Section 34.0104 or 34.0105 must participate in the ERCOT
268	268	wholesale electricity market.
269	269	(e) The commission may provide from the fund:
270	270	(1) for grants under Section 34.0103, not more than $1
271	271	billion;
272	272	(2) for loans and grants under Sections 34.0104 and
273	273	34.0105, not more than $7.2 billion; and
274	274	(3) for grants or loans under Subchapter B, not more
275	275	than $1.8 billion.
276	276	Sec. 34.0107. MANAGEMENT AND INVESTMENT OF FUND. (a) The
277	277	trust company shall hold and invest the fund, and any accounts
278	278	established in the fund, for and in the name of the commission,
279	279	taking into account the purposes for which money in the fund may be
280	280	used. The fund may be invested with the state treasury pool and
281	281	commingled with other investments.
282	282	(b) The overall objective for the investment of the fund is
283	283	to maintain sufficient liquidity to meet the needs of the fund while
284	284	striving to preserve the purchasing power of the fund over a full
285	285	economic cycle.
286	286	(c) In managing the assets of the fund, the trust company
287	287	may acquire, exchange, sell, supervise, manage, or retain any kind
288	288	of investment that a prudent investor, exercising reasonable care,
289	289	skill, and caution, would acquire or retain in light of the
290	290	purposes, terms, distribution requirements, and other
291	291	circumstances of the fund then prevailing, taking into
292	292	consideration the investment of all the assets of the fund rather
293	293	than a single investment.
294	294	(d) The reasonable expenses of managing the fund's assets
295	295	shall be paid from the fund.
296	296	(e) The trust company annually shall provide a written
297	297	report to the commission and to the advisory committee with respect
298	298	to the investment of the fund.
299	299	(f) The trust company shall adopt a written investment
300	300	policy that is appropriate for the fund. The trust company shall
301	301	present the investment policy to the investment advisory board
302	302	established under Section 404.028, Government Code. The investment
303	303	advisory board shall submit to the trust company recommendations
304	304	regarding the policy.
305	305	(g) The commission annually shall provide to the trust
306	306	company a forecast of the cash flows into and out of the fund. The
307	307	commission shall provide updates to the forecasts as appropriate to
308	308	ensure that the trust company is able to achieve the objective
309	309	specified by Subsection (b).
310	310	(h) The trust company shall disburse money from the fund as
311	311	directed by the commission.
312	312	Sec. 34.0108. RECEIVERSHIP OF DEFAULT GENERATING FACILITY.
313	313	(a) In this section, "default" means:
314	314	(1) default in payment of the principal of or interest
315	315	on a loan; or
316	316	(2) a failure to perform any of the terms of a loan.
317	317	(b) The state, including the commission, the advisory
318	318	committee, and the trust company, may not retain an ownership
319	319	interest in a project or facility for which a loan is provided under
320	320	this chapter.
321	321	(c) In the event of a default on a loan made under this
322	322	chapter, at the request of the commission, the attorney general
323	323	shall bring suit in a district court in Travis County for the
324	324	appointment of a receiver to collect the assets and carry on the
325	325	business of a loan recipient if the action is necessary to cure a
326	326	default by the recipient.
327	327	(d) The court shall vest a receiver appointed by the court
328	328	with any power or duty the court finds necessary to cure the
329	329	default, including the power or duty to:
330	330	(1) perform audits;
331	331	(2) direct ongoing operation of the assets;
332	332	(3) fund reserve accounts;
333	333	(4) make payments of the principal of or interest on
334	334	bonds, securities, or other obligations; and
335	335	(5) take any other action necessary to prevent or to
336	336	remedy the default, including the sale of assets.
337	337	(e) The receiver shall execute a bond in an amount to be set
338	338	by the court to ensure the proper performance of the receiver's
339	339	duties.
340	340	(f) After appointment and execution of bond, the receiver
341	341	shall take possession of the books, records, accounts, and assets
342	342	of the defaulting loan recipient specified by the court. Until
343	343	discharged by the court, the receiver shall perform the duties that
344	344	the court directs and shall strictly observe the final order
345	345	involved.
346	346	(g) On a showing of good cause by the defaulting loan
347	347	recipient, the court may dissolve the receivership.
348	348	Sec. 34.0109. TEXAS ENERGY FUND ADVISORY COMMITTEE. (a)
349	349	The advisory committee is composed of the following six members:
350	350	(1) three members of the senate appointed by the
351	351	lieutenant governor, including:
352	352	(A) a member of the committee of the senate
353	353	having primary jurisdiction over matters relating to the generation
354	354	of electricity; and
355	355	(B) a member of the committee of the senate
356	356	having primary jurisdiction over finance; and
357	357	(2) three members of the house of representatives
358	358	appointed by the speaker of the house of representatives,
359	359	including:
360	360	(A) a member of the committee of the house of
361	361	representatives having primary jurisdiction over the generation of
362	362	electricity; and
363	363	(B) a member of the committee of the house of
364	364	representatives having primary jurisdiction over finance.
365	365	(b) A member of the advisory committee serves at the will of
366	366	the person who appointed the member.
367	367	(c) The lieutenant governor shall appoint a co-presiding
368	368	officer of the advisory committee from among the members appointed
369	369	by the lieutenant governor. The speaker of the house of
370	370	representatives shall appoint a co-presiding officer of the
371	371	advisory committee from among the members appointed by the speaker.
372	372	(d) The advisory committee may hold public hearings, formal
373	373	meetings, and work sessions. Either co-presiding officer of the
374	374	advisory committee may call a public hearing, formal meeting, or
375	375	work session of the advisory committee at any time. The advisory
376	376	committee may not take formal action at a public hearing, formal
377	377	meeting, or work session unless a quorum of the committee is
378	378	present.
379	379	(e) Except as otherwise provided by this subsection, a
380	380	member of the advisory committee is not entitled to receive
381	381	compensation for service on the committee or reimbursement for
382	382	expenses incurred in the performance of official duties as a member
383	383	of the committee. Service on the advisory committee by a member of
384	384	the senate or house of representatives is considered legislative
385	385	service for which the member is entitled to reimbursement and other
386	386	benefits in the same manner and to the same extent as for other
387	387	legislative service.
388	388	(f) The advisory committee:
389	389	(1) may provide comments and recommendations to the
390	390	commission for the commission to use in adopting rules regarding
391	391	the use of the fund or on any other matter; and
392	392	(2) shall review the overall operation, function, and
393	393	structure of the fund at least semiannually.
394	394	(g) The advisory committee may adopt rules, procedures, and
395	395	policies as needed to administer this section and implement its
396	396	responsibilities.
397	397	(h) Chapter 2110, Government Code, does not apply to the
398	398	size, composition, or duration of the advisory committee.
399	399	(i) The advisory committee is subject to Chapter 325,
400	400	Government Code (Texas Sunset Act). Unless continued in existence
401	401	as provided by that chapter, the advisory committee is abolished
402	402	September 1, 2035.
403	403	Sec. 34.0110. RULES. (a) The commission by rule may
404	404	establish procedures for:
405	405	(1) the application for and award of a grant or loan
406	406	under this chapter; and
407	407	(2) the administration of the fund.
408	408	(b) The commission shall give full consideration to
409	409	comments and recommendations of the advisory committee.
410	410	SUBCHAPTER B. TEXAS POWER PROMISE: BACKUP POWER PACKAGES
411	411	Sec. 34.0201. DEFINITION. In this subchapter, "Texas
412	412	backup power package" means a stand-alone, behind-the-meter,
413	413	multiday backup power source that can be used for islanding.
414	414	Sec. 34.0202. PURPOSE. The purpose of this subchapter is to
415	415	facilitate and provide funding for the design, procurement,
416	416	installation, and use of Texas backup power packages to ensure the
417	417	reliability or adequacy of an electric power grid in this state for
418	418	facilities on which communities rely for health, safety, and
419	419	well-being.
420	420	Sec. 34.0203. COMMISSION DUTIES. (a) The commission shall
421	421	convene an advisory committee in the manner provided by Chapter
422	422	2110, Government Code.
423	423	(b) The advisory committee shall recommend criteria for the
424	424	commission to employ in making a grant or loan under this
425	425	subchapter.
426	426	(c) The commission shall contract with a research entity
427	427	that has experience in microgrid design to analyze critical
428	428	facility characteristics and requirements in this state and develop
429	429	for Texas backup power packages:
430	430	(1) sets of specifications for standard backup power
431	431	packages of various sizes that can serve most critical facilities
432	432	in this state; and
433	433	(2) specifications for standard interconnection,
434	434	communications, and controls for Texas backup power packages.
435	435	Sec. 34.0204. TEXAS BACKUP POWER PACKAGES. The commission
436	436	may use money in the Texas energy fund without further
437	437	appropriation to provide a grant or loan for the operation of a
438	438	Texas backup power package that:
439	439	(1) is engineered to minimize operation costs;
440	440	(2) uses interconnection technology and controls that
441	441	enable immediate islanding from the power grid and stand-alone
442	442	operation for the host facility;
443	443	(3) is capable of operating for at least 48 continuous
444	444	hours without refueling or connecting to a separate power source;
445	445	(4) is designed so that one or more Texas backup power
446	446	packages can be aggregated on-site to serve not more than 2.5
447	447	megawatts of load at the host facility;
448	448	(5) provides power sourced from:
449	449	(A) a combination of natural gas or propane with
450	450	photovoltaic panels and battery storage; or
451	451	(B) battery storage on an electric school bus;
452	452	and
453	453	(6) is not used by the owner or host facility for the
454	454	sale of energy or ancillary services.
455	455	Sec. 34.0205. GRANTS AND LOANS. (a) The commission by rule
456	456	may establish procedures for the application for and award of a
457	457	grant or loan under this subchapter.
458	458	(b) The amount of a grant provided under this subchapter may
459	459	not exceed $500 per kilowatt of capacity.
460	460	(c) The commission may provide a loan under this subchapter
461	461	for procurement and operating costs.
462	462	(d) The commission shall maintain and publish a list of
463	463	approved vendors eligible to assist with the sale, installation,
464	464	operation, and ongoing maintenance of Texas backup power packages.
465	465	(e) The commission may not provide a grant or loan under
466	466	this subchapter for:
467	467	(1) a commercial energy system, a private school, or a
468	468	for-profit entity that does not directly serve public safety and
469	469	human health; or
470	470	(2) a source of backup power that does not follow the
471	471	design and use standards of a Texas backup power package.
472	472	SECTION 3. Section 35.005, Utilities Code, is amended by
473	473	adding Subsections (d), (e), (f), and (g) to read as follows:
474	474	(d) This subsection applies only to a facility in the ERCOT
475	475	power region for which a loan or grant is provided under Subchapter
476	476	A, Chapter 34. The independent organization certified under
477	477	Section 39.151 for the ERCOT power region shall work with electric
478	478	utilities to ensure that each facility in the ERCOT power region for
479	479	which a loan or grant is provided is fully interconnected in the
480	480	region not later than the date the facility is ready for commercial
481	481	operation. The independent organization certified under Section
482	482	39.151 for the ERCOT power region shall give priority to
483	483	interconnecting each facility for which a loan or grant is provided
484	484	except that the organization shall prioritize transmission
485	485	projects that the organization has formally designated as critical
486	486	for reliability over a facility for which a loan or grant is
487	487	provided. An electric utility that enters into an interconnection
488	488	agreement for a facility for which a loan or grant is provided shall
489	489	give priority to interconnecting the facility and complete
490	490	construction of any other facilities necessary to interconnect the
491	491	facility not later than the date the facility is ready for
492	492	commercial operation except that the utility shall prioritize
493	493	transmission projects that the independent organization certified
494	494	under Section 39.151 for the ERCOT power region has formally
495	495	designated as critical for reliability over a facility for which a
496	496	loan or grant is provided.
497	497	(e) If the commission receives an application under Chapter
498	498	37 for a certificate of convenience and necessity related to
499	499	facilities necessary to interconnect a facility to which Subsection
500	500	(d) applies and does not approve the application before the 90th day
501	501	after the date the commission received the application, the
502	502	deadline established by Subsection (d) is extended one day for each
503	503	day after the 90th day in which the commission does not approve the
504	504	application.
505	505	(f) The commission may extend the deadline established by
506	506	Subsection (d) after notice, hearing, and a determination on a
507	507	showing of good cause that fully interconnecting the facility
508	508	before the deadline is not feasible.
509	509	(g) In this subsection, "Texas backup power package" has the
510	510	meaning assigned by Section 34.0201. The commission by rule shall
511	511	adopt procedures to expedite an electric utility interconnection
512	512	request for a Texas backup power package for which a loan or grant
513	513	is awarded under Chapter 34.
514	514	SECTION 4. Subchapter C, Chapter 382, Health and Safety
515	515	Code, is amended by adding Section 382.069 to read as follows:
516	516	Sec. 382.069. TEXAS BACKUP POWER PACKAGE. (a) In this
517	517	section, "Texas backup power package" has the meaning assigned by
518	518	Section 34.0201, Utilities Code.
519	519	(b) The commission by rule shall adopt a process to expedite
520	520	the permitting of a Texas backup power package for which a permit is
521	521	required under this chapter and for which a loan or grant is awarded
522	522	under Chapter 34, Utilities Code.
523	523	SECTION 5. Not later than June 1, 2024, the Public Utility
524	524	Commission of Texas shall begin accepting loan applications for
525	525	loans authorized by Subchapter A, Chapter 34, Utilities Code, as
526	526	added by this Act. Not later than December 31, 2025, the Public
527	527	Utility Commission of Texas shall approve or deny each loan
528	528	application and disburse initial loan funds for each approved
529	529	applicant.
530	530	SECTION 6. This Act takes effect on the date on which the
531	531	constitutional amendment proposed by the 88th Legislature, Regular
532	532	Session, 2023, providing for the creation of the Texas energy fund
533	533	to support the construction, maintenance, modernization, and
534	534	operation of electric generating facilities takes effect. If that
535	535	amendment is not approved by the voters, this Act has no effect.
536	536	______________________________ ______________________________
537	537	President of the Senate Speaker of the House
538	538	I hereby certify that S.B. No. 2627 passed the Senate on
539	539	May 4, 2023, by the following vote: Yeas 27, Nays 4;
540	540	May 25, 2023, Senate refused to concur in House amendments and
541	541	requested appointment of Conference Committee; May 26, 2023, House
542	542	granted request of the Senate; May 28, 2023, Senate adopted
543	543	Conference Committee Report by the following vote: Yeas 30,
544	544	Nays 1.
545	545	______________________________
546	546	Secretary of the Senate
547	547	I hereby certify that S.B. No. 2627 passed the House, with
548	548	amendments, on May 23, 2023, by the following vote: Yeas 118,
549	549	Nays 23, one present not voting; May 26, 2023, House granted
550	550	request of the Senate for appointment of Conference Committee;
551	551	May 28, 2023, House adopted Conference Committee Report by the
552	552	following vote: Yeas 114, Nays 20, two present not voting.
553	553	______________________________
554	554	Chief Clerk of the House
555	555	Approved:
556	556	______________________________
557	557	Date
558	558	______________________________
559	559	Governor