Texas 2025 - 89th Regular

Texas House Bill HB4581 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Guillen H.B. No. 4581
	2	+
	3	+
2	4
3	5
4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to temporary emergency energy facilities.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 39.918, Utilities Code, is amended by
9	11		amending Subsections (d) and (f) and adding Subsections (f-1),
10	12		(f-2), (f-3), (k), (l), (m), and (n) to read as follows:
11	13		(d) A facility [Facilities] described by Subsection (b)(1):
12	14		(1) must be operated in isolation from the bulk power
13	15		system; [and]
14	16		(2) may not be included in independent system
15	17		operator:
16	18		(A) locational marginal pricing calculations;
17	19		(B) pricing; or
18	20		(C) reliability models;
19	21		(3) must be:
20	22		(A) mobile; and
21	23		(B) capable of generating electric energy within
22	24		three hours after being connected to a demand source.
23	25		(f) A transmission and distribution utility shall[, when
24	26		reasonably practicable,] use a competitive bidding process to lease
25	27		facilities under Subsection (b)(1).
26	28		(f-1) A transmission and distribution utility may not enter
27	29		into a lease under Subsection (b)(1) unless:
28	30		(1) the commission first approves the lease in a rate
29	31		proceeding or a separate contested case hearing; or
30	32		(2) the lease includes a provision that allows
31	33		alteration of the lease based on commission order or rule.
32	34		(f-2) Notwithstanding Subsections (f) and (f-1)(1), a
33	35		transmission and distribution utility may enter into a lease under
34	36		Subsection (b)(1) without competitive bidding or prior commission
35	37		approval if:
36	38		(1) the transmission and distribution utility lacks
37	39		the leased generating capacity necessary to aid in restoring power
38	40		to the utility's customers during a significant power outage; and
39	41		(2) the amount of leased generating capacity does not
40	42		significantly exceed the amount of megawatts necessary to restore
41	43		electric service to the utility's customers during a significant
42	44		power outage.
43	45		(f-3) A transmission and distribution utility that enters
44	46		into a lease in the manner provided by Subsection (f-2) shall
45	47		provide documentation to justify the amount of leased generating
46	48		capacity during the first base rate proceeding after the date the
47	49		lease begins.
48	50		(k) The Texas Division of Emergency Management, in
49	51		coordination with the commission, shall develop an annex to the
50	52		state emergency management plan prepared under Section 418.042,
51	53		Government Code, that addresses planning for deploying facilities
52	54		leased, operated, procured, or owned under Subsection (b). The
53	55		annex must include procedures for transmission and distribution
54	56		utilities to maintain a current list of facilities leased,
55	57		operated, procured, or owned under Subsection (b), agreements
56	58		submitted to the division under Subsection (m), and facilities
57	59		available to be deployed through mutual aid agreements.
58	60		(l) The list maintained under Subsection (k) must be
59	61		accessible to each transmission and distribution utility, the
60	62		commission, the Texas Division of Emergency Management, and each
61	63		state agency with emergency response duties. Each transmission and
62	64		distribution utility that leases, operates, procures, or owns a
63	65		facility described by Subsection (b) shall notify the commission
64	66		not later than the 30th day after the date of a change in the
65	67		utility's lease or ownership of the facility.
66	68		(m) The commission by rule shall require a transmission and
67	69		distribution utility that leases, operates, procures, or owns a
68	70		facility described by Subsection (b) to offer to enter into mutual
69	71		aid agreements with other transmission and distribution utilities
70	72		to facilitate the deployment of undeployed facilities on the
71	73		request of another transmission and distribution utility. Each
72	74		transmission and distribution utility shall submit any agreement
73	75		entered into under this subsection to the commission and report to
74	76		the commission not later than the 30th day after the date of any
75	77		change in the submitted agreement.
76	78		(n) The commission shall:
77	79		(1) consider any failure to deploy a facility
78	80		described by Subsection (b) that is leased, operated, procured, or
79	81		owned by a transmission and distribution utility, including a
80	82		failure to deploy a facility under the terms of a mutual aid
81	83		agreement, in the next base rate proceeding of the transmission and
82	84		distribution utility; and
83	85		(2) if the failure to deploy described by Subdivision
84	86		(1) was not reasonable, revise the utility's rate of return on
85	87		investment with a presumption that the investment in the facility
86	88		was not reasonable.
87	89		SECTION 2. The Public Utility Commission of Texas shall
88	90		require a transmission and distribution utility to which Section
89	91		39.918(m), Utilities Code, as added by this Act, applies to make
90	92		offers for mutual aid agreements before the 2026 hurricane season.
91	93		SECTION 3. This Act takes effect immediately if it receives
92	94		a vote of two-thirds of all the members elected to each house, as
93	95		provided by Section 39, Article III, Texas Constitution. If this
94	96		Act does not receive the vote necessary for immediate effect, this
95	97		Act takes effect September 1, 2025.