| 1 | 1 | | 89R18037 TYPED |
|---|
| 2 | 2 | | By: Parker S.B. No. 2116 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | A BILL TO BE ENTITLED |
|---|
| 8 | 8 | | AN ACT |
|---|
| 9 | 9 | | relating to the critical designation of certain natural gas |
|---|
| 10 | 10 | | facilities |
|---|
| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 12 | 12 | | SECTION 1. Subchapter C, Chapter 81, Natural Resources |
|---|
| 13 | 13 | | Code, is amended as follows: |
|---|
| 14 | 14 | | Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES. |
|---|
| 15 | 15 | | (a) The commission shall collaborate with the Public |
|---|
| 16 | 16 | | Utility Commission of Texas to adopt rules to establish a process to |
|---|
| 17 | 17 | | designate certain natural gas facilities and entities associated |
|---|
| 18 | 18 | | with providing natural gas in this state as critical customers or |
|---|
| 19 | 19 | | critical gas suppliers during energy emergencies. |
|---|
| 20 | 20 | | (b) The rules must: |
|---|
| 21 | 21 | | (1) establish criteria for designating persons who own |
|---|
| 22 | 22 | | or operate a facility under the jurisdiction of the commission |
|---|
| 23 | 23 | | under Section 81.051(a) or engage in an activity under the |
|---|
| 24 | 24 | | jurisdiction of the commission under Section 81.051(a) who must |
|---|
| 25 | 25 | | provide critical customer and critical gas supply information, as |
|---|
| 26 | 26 | | defined by the commission, to the entities described by Section |
|---|
| 27 | 27 | | 38.074(b)(1), Utilities Code; |
|---|
| 28 | 28 | | (2) consider essential operational elements when |
|---|
| 29 | 29 | | defining critical customer designations and critical gas supply |
|---|
| 30 | 30 | | information for the purposes of Subdivision (1), including natural |
|---|
| 31 | 31 | | gas production, processing, and transportation, related produced |
|---|
| 32 | 32 | | water handling and disposal facilities, and the delivery of natural |
|---|
| 33 | 33 | | gas to generators of electric energy; and |
|---|
| 34 | 34 | | (3) require that only facilities and entities that are |
|---|
| 35 | 35 | | prepared to operate during a weather emergency may be designated as |
|---|
| 36 | 36 | | a critical customer under this section. |
|---|
| 37 | 37 | | (4) establish criteria for a facility operated under |
|---|
| 38 | 38 | | the jurisdiction of the commission which has been designated as |
|---|
| 39 | 39 | | critical under (a) to be designated as critical on a seasonal basis. |
|---|
| 40 | 40 | | (i) The commission shall determine for which |
|---|
| 41 | 41 | | seasons each facility is designated critical and the beginning and |
|---|
| 42 | 42 | | ending date of such seasons, |
|---|
| 43 | 43 | | (ii) Any person who owns or operates a facility |
|---|
| 44 | 44 | | which has been designated as critical under (a) may apply to the |
|---|
| 45 | 45 | | commission to be designated as critical on a seasonal basis, such |
|---|
| 46 | 46 | | application may be made by an owner or operator as part of the owner |
|---|
| 47 | 47 | | or operator's Critical Infrastructure Designation Report to the |
|---|
| 48 | 48 | | commission, |
|---|
| 49 | 49 | | (iii) The commission shall provide a list of |
|---|
| 50 | 50 | | facilities designated as critical on a seasonal basis to the Public |
|---|
| 51 | 51 | | Utility Commission. |
|---|
| 52 | 52 | | SECTION 2. (a) The Texas Railroad Commission shall open a |
|---|
| 53 | 53 | | rulemaking to implement Natural Resources Code Subsection |
|---|
| 54 | 54 | | 81.073(b)(4). This rulemaking project shall begin not later than |
|---|
| 55 | 55 | | the 90th day after the effective date of this Act. The commission |
|---|
| 56 | 56 | | shall adopt the final rule not later than February 1, 2026. A list |
|---|
| 57 | 57 | | of facilities designated as critical on a seasonal basis shall be |
|---|
| 58 | 58 | | provided to the Public Utility Commission by March 31, 2026. |
|---|
| 59 | 59 | | (b) The Public Utility Commission of Texas shall open a |
|---|
| 60 | 60 | | rulemaking project requiring the independent organization |
|---|
| 61 | 61 | | certified under Section 39.151 for the ERCOT power region to allow |
|---|
| 62 | 62 | | facilities designated as critical on a seasonal basis, under |
|---|
| 63 | 63 | | Natural Resources Code Subsection 81.073(b)(4), to participate in |
|---|
| 64 | 64 | | competitively procured demand reductions. This rulemaking project |
|---|
| 65 | 65 | | shall begin not later than the 90th day after the effective date of |
|---|
| 66 | 66 | | this Act. The commission shall adopt the final rule not later than |
|---|
| 67 | 67 | | February 1, 2026. The Public Utility Commission must provide the |
|---|
| 68 | 68 | | list of facilities designated as critical on a seasonal basis to the |
|---|
| 69 | 69 | | independent organization certified under Section 39.151 for the |
|---|
| 70 | 70 | | ERCOT power region by April 30, 2026. |
|---|
| 71 | 71 | | SECTION 3. This Act takes effect immediately if it receives |
|---|
| 72 | 72 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 73 | 73 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 74 | 74 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 75 | 75 | | Act takes effect September 1, 2025. |
|---|