| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the critical designation of certain natural gas |
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| 7 | 9 | | facilities. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. Section 81.073(a), Subchapter C, Chapter 81, |
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| 10 | 12 | | Natural Resources Code, is amended as follows: |
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| 11 | 13 | | Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES. |
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| 12 | 14 | | (a) The commission shall collaborate with the Public |
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| 13 | 15 | | Utility Commission of Texas to adopt rules to establish a process to |
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| 14 | 16 | | designate certain natural gas facilities and entities associated |
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| 15 | 17 | | with providing natural gas in this state as critical customers or |
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| 16 | 18 | | critical gas suppliers during energy emergencies. |
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| 17 | 19 | | (b) The rules must: |
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| 18 | 20 | | (1) establish criteria for designating persons who own |
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| 19 | 21 | | or operate a facility under the jurisdiction of the commission |
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| 20 | 22 | | under Section 81.051(a) or engage in an activity under the |
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| 21 | 23 | | jurisdiction of the commission under Section 81.051(a) who must |
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| 22 | 24 | | provide critical customer and critical gas supply information, as |
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| 23 | 25 | | defined by the commission, to the entities described by Section |
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| 24 | 26 | | 38.074(b)(1), Utilities Code; |
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| 25 | 27 | | (2) consider essential operational elements when |
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| 26 | 28 | | defining critical customer designations and critical gas supply |
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| 27 | 29 | | information for the purposes of Subdivision (1), including natural |
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| 28 | 30 | | gas production, processing, and transportation, related produced |
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| 29 | 31 | | water handling and disposal facilities, and the delivery of natural |
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| 30 | 32 | | gas to generators of electric energy; and |
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| 31 | 33 | | (3) require that only facilities and entities that are |
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| 32 | 34 | | prepared to operate during a weather emergency may be designated as |
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| 33 | 35 | | a critical customer under this section.; and |
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| 34 | 36 | | (4) establish criteria for a facility operated under |
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| 35 | 37 | | the jurisdiction of the commission which has been designated as |
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| 36 | 38 | | critical under (a) to be designated as critical on a seasonal |
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| 37 | 39 | | basis. In determining these criteria: |
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| 38 | 40 | | (i) the commission shall determine for which |
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| 39 | 41 | | seasons each facility is designated critical and the beginning and |
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| 40 | 42 | | ending date of such seasons; |
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| 41 | 43 | | (ii) the commission shall grant any person who |
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| 42 | 44 | | owns or operates a facility which has been designated as critical |
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| 43 | 45 | | under (a) the right to apply to the commission to be designated as |
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| 44 | 46 | | critical on a seasonal basis. Any such application may be made by an |
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| 45 | 47 | | owner or operator as part of the owner or operator's Critical |
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| 46 | 48 | | Infrastructure Designation Report to the commission; and |
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| 47 | 49 | | (iii) the commission shall provide a list of |
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| 48 | 50 | | facilities designated as critical on a seasonal basis to the Public |
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| 49 | 51 | | Utility Commission. |
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| 50 | 52 | | SECTION 2. (a) The Texas Railroad Commission shall open a |
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| 51 | 53 | | rulemaking to implement Natural Resources Code Subsection |
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| 52 | 54 | | 81.073(b)(4). This rulemaking project shall begin not later than |
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| 53 | 55 | | the 90th day after the effective date of this Act. The commission |
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| 54 | 56 | | shall adopt the final rule not later than February 1, 2026. A list |
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| 55 | 57 | | of facilities designated as critical on a seasonal basis shall be |
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| 56 | 58 | | provided to the Public Utility Commission by March 31, 2026. |
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| 57 | 59 | | (b) The Public Utility Commission of Texas shall open a |
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| 58 | 60 | | rulemaking project requiring the independent organization |
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| 59 | 61 | | certified under Section 39.151 for the ERCOT power region to allow |
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| 60 | 62 | | facilities designated as critical on a seasonal basis, under |
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| 61 | 63 | | Natural Resources Code Subsection 81.073(b)(4), to participate in |
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| 62 | 64 | | competitively procured demand reductions. This rulemaking project |
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| 63 | 65 | | shall begin not later than the 90th day after the effective date of |
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| 64 | 66 | | this Act. The commission shall adopt the final rule not later than |
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| 65 | 67 | | February 1, 2026. The Public Utility Commission must provide the |
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| 66 | 68 | | list of facilities designated as critical on a seasonal basis to the |
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| 67 | 69 | | independent organization certified under Section 39.151 for the |
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| 68 | 70 | | ERCOT power region by April 30, 2026. |
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| 69 | 71 | | SECTION 3. This Act takes effect immediately if it receives |
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| 70 | 72 | | a vote of two-thirds of all the members elected to each house, as |
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| 71 | 73 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 72 | 74 | | Act does not receive the vote necessary for immediate effect, this |
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| 73 | 75 | | Act takes effect September 1, 2025. |
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