89R9777 DRS-D By: Harris Davila H.B. No. 3535 A BILL TO BE ENTITLED AN ACT relating to requiring backup generation at certain wastewater treatment facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 26, Water Code, is amended by adding Section 26.054 to read as follows: Sec. 26.054. STANDARDS OF EMERGENCY OPERATIONS FOR PACKAGE PLANT. (a) In this section: (1) "Emergency operations" means the operation of a package plant during an extended power outage that impacts the package plant. (2) "Extended power outage" means a power outage lasting for more than 24 hours. (3) "Package plant" means a pre-manufactured wastewater treatment facility with a capacity of less than 500,000 gallons per day. The term includes an extended aeration plant, sequencing batch reactor, or oxidation ditch. (b) The operator of a package plant shall: (1) ensure the emergency operation of the package plant during an extended power outage as soon as safe and practicable following the occurrence of a natural disaster; and (2) adopt and submit to the commission for its approval: (A) an emergency preparedness plan that demonstrates the operator's ability to provide the emergency operations described by Subdivision (1); and (B) a timeline for implementing the plan described by Paragraph (A). (c) The commission shall review an emergency preparedness plan submitted under Subsection (b). If the commission determines that the plan is not acceptable, the commission shall recommend changes to the plan. The commission must make its recommendations on or before the 90th day after the date the commission receives the plan. In accordance with commission rules, an emergency preparedness plan for a package plant shall provide for one or more of the following: (1) the maintenance of automatically starting auxiliary generators; (2) the sharing of auxiliary generator capacity with one or more operators of wastewater treatment facilities affected by an extended power outage, including through participation in a statewide mutual aid program; (3) the negotiation of leasing and contracting agreements, including emergency mutual aid agreements with other operators of wastewater treatment facilities, if the agreements provide for coordination with the division of emergency management in the governor's office; (4) the use of portable generators capable of serving multiple facilities equipped with quick-connect systems; (5) the use of on-site electrical generation or distributed generation facilities; (6) hardening the electric transmission and distribution system serving the package plant; (7) emergency wastewater treatment service capacity rules to maintain emergency operations; or (8) any other alternative determined by the commission to be acceptable. (d) Each operator of a package plant shall include in the package plant's emergency preparedness plan under Subsection (b) provisions for demonstrating the capability of the package plant to provide wastewater treatment service to its customers during emergencies. This subsection does not apply to wastewater treatment services that are unnecessary or otherwise subject to interruption or curtailment during emergencies under a contract. (e) The commission shall adopt rules to implement this section. (f) The commission shall provide an operator of a package plant with access to the commission's financial, managerial, and technical contractors to assist the operator in complying with the applicable emergency preparedness plan submission deadline. (g) The commission by rule shall create an emergency preparedness plan template for use by an operator of a package plant when submitting a plan under this section. The emergency preparedness plan template shall contain: (1) a list and explanation of the preparations an operator of a package plant may make under Subsection (c) for the commission to approve the package plant's emergency preparedness plan; and (2) a list of all commission rules and standards pertaining to emergency preparedness plans. (h) An emergency generator used as part of an approved emergency preparedness plan under Subsection (c) must be operated and maintained according to the manufacturer's specifications. (i) The commission shall inspect each package plant to ensure that the operator of the package plant complies with the approved plan. (j) The commission shall consider whether compliance with this section will cause a significant financial burden on customers of an operator of a package plant. (k) An operator of a package plant may adopt and enforce limitations on wastewater treatment service while the package plant is providing emergency operations. (l) Except as specifically required by this section, information provided by an operator of a package plant under this section is confidential and is not subject to disclosure under Chapter 552, Government Code. (m) The commission shall coordinate with the Public Utility Commission of Texas in the administration of this section. SECTION 2. (a) Not later than January 1, 2026, the Texas Commission on Environmental Quality shall adopt rules necessary to implement Section 26.054, Water Code, as added by this Act. (b) Not later than May 1, 2026, each operator of a package plant shall submit to the Texas Commission on Environmental Quality the emergency preparedness plan required by Section 26.054, Water Code, as added by this Act. (c) Not later than September 1, 2026, or upon final approval by the Texas Commission on Environmental Quality, each operator of a package plant shall implement the emergency preparedness plan required by Section 26.054, Water Code, as added by this Act. SECTION 3. This Act takes effect September 1, 2025.