Texas 2025 - 89th Regular

Texas Senate Bill SB2211 Compare Versions

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11 By: Sparks S.B. No. 2211
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66 A BILL TO BE ENTITLED
77 AN ACT
88 relating to a qualifying cogenerator that serves a large load and a
99 colocated desalination facility.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 31.002, Utilities Code, is amended by
1212 amending Subdivision (13) to read as follows:
1313 (13) "Qualifying cogenerator" and "qualifying small
1414 power producer" have the meanings assigned those terms by 16 U.S.C.
1515 Sections 796(18)(C) and 796(17)(D). A qualifying cogenerator that
1616 provides electricity to a purchaser of the cogenerator's thermal
1717 output is not for that reason considered to be a retail electric
1818 provider or a power generation company. A qualifying cogenerator
1919 includes an owner or operator of dispatchable generation that:
2020 (A) provides thermal, steam or waste heat for use
2121 by a co-located desalination facility; and
2222 (B) serves a load whose primary purpose is the
2323 manufacture of digital products.
2424 SECTION 2. Subsection 37.001, Utilities Code, is amended by
2525 amending Subdivision (3) to read as follows:
2626 (3) "Retail electric utility" means a person,
2727 political subdivision, electric cooperative, or agency that
2828 operates, maintains, or controls in this state a facility to
2929 provide retail electric utility service. The term does not include
3030 a corporation described by Section 32.053 to the extent that the
3131 corporation sells electricity exclusively at wholesale and not to
3232 the ultimate consumer. A qualifying cogenerator that sells electric
3333 energy at retail to the sole purchaser of the cogenerator's thermal
3434 output under Sections 35.061 and 36.007 is not for that reason
3535 considered to be a retail electric utility. The owner or operator of
3636 a qualifying cogeneration facility who was issued the necessary
3737 environmental permits from the Texas Natural Resource Conservation
3838 Commission after January 1, 1998, and who commenced construction of
3939 such qualifying facility before July 1, 1998, may provide
4040 electricity to the purchasers of the thermal output of that
4141 qualifying facility and shall not for that reason be considered an
4242 electric utility or a retail electric utility, provided that the
4343 purchasers of the thermal output are owners of manufacturing or
4444 process operation facilities that are located on a site entirely
4545 owned before September, 1987, by one owner who retained ownership
4646 after September, 1987, of some portion of the facilities and that
4747 those facilities now share some integrated operations, such as the
4848 provision of services and raw materials. A person who is an electric
4949 generation equipment lessor or operator is not for that reason
5050 considered to be a retail electric utility. A person who owns or
5151 operates equipment used solely to provide electricity charging
5252 service for consumption by an alternatively fueled vehicle, as
5353 defined by Section 502.004, Transportation Code, is not for that
5454 reason considered to be a retail electric utility. The owner or
5555 operator of a qualifying congenator as defined by Subdivision
5656 31.002(13) is not considered to be a retail electric utility if the
5757 owner or operator of a qualifying cogenerator is providing
5858 electricity to a manufacturer of digital products and thermal,
5959 steam, or waste heat to a colocated desalination facility.
6060 SECTION 3. This Act takes effect immediately if it receives
6161 a vote of two-thirds of all the members elected to each house, as
6262 provided by Section 39, Article III, Texas Constitution. If this
6363 Act does not receive the vote necessary for immediate effect, this
6464 Act takes effect September 1, 2025.