89R3396 CS-D By: Guillen H.B. No. 5633 A BILL TO BE ENTITLED AN ACT relating to the operation of Texas backup power packages. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 34.0204, Utilities Code, is amended to read as follows: Sec. 34.0204. TEXAS BACKUP POWER PACKAGES. (a) The commission may use money in the Texas energy fund without further appropriation to provide a grant or loan for the operation of a Texas backup power package that: (1) is engineered to minimize operation costs; (2) uses interconnection technology and controls that enable immediate islanding from the power grid and stand-alone operation for the host facility; (3) is capable of operating for at least 96 [48] continuous hours without refueling or connecting to a separate power source; and (4) is designed so that one or more Texas backup power packages can be aggregated on-site to serve not more than eight [2.5] megawatts of load at the host facility[; [(5) provides power sourced from: [(A) a combination of natural gas or propane with photovoltaic panels and battery storage; or [(B) battery storage on an electric school bus; and [(6) is not used by the owner or host facility for the sale of energy or ancillary services]. (b) An owner or host facility of a Texas backup power package for which a grant or loan is provided under this chapter that sells energy or ancillary services from the package is not required to register with the commission as a power generation company under Section 39.351 if the package has a generation capacity of not more than 2,000 kilowatts. SECTION 2. The change in law made by this Act to Section 34.0204(a)(3), Utilities Code, applies only to a Texas backup power package for which a grant or loan is issued on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.