1 | 1 | | By: Sparks S.B. No. 2211 |
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5 | 5 | | |
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6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | relating to a qualifying cogenerator that serves a large load and a |
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9 | 9 | | colocated desalination facility. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Section 31.002, Utilities Code, is amended by |
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12 | 12 | | amending Subdivision (13) to read as follows: |
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13 | 13 | | (13) "Qualifying cogenerator" and "qualifying small |
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14 | 14 | | power producer" have the meanings assigned those terms by 16 U.S.C. |
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15 | 15 | | Sections 796(18)(C) and 796(17)(D). A qualifying cogenerator that |
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16 | 16 | | provides electricity to a purchaser of the cogenerator's thermal |
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17 | 17 | | output is not for that reason considered to be a retail electric |
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18 | 18 | | provider or a power generation company. A qualifying cogenerator |
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19 | 19 | | includes an owner or operator of dispatchable generation that: |
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20 | 20 | | (A) provides thermal, steam or waste heat for use |
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21 | 21 | | by a co-located desalination facility; and |
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22 | 22 | | (B) serves a load whose primary purpose is the |
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23 | 23 | | manufacture of digital products. |
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24 | 24 | | SECTION 2. Subsection 37.001, Utilities Code, is amended by |
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25 | 25 | | amending Subdivision (3) to read as follows: |
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26 | 26 | | (3) "Retail electric utility" means a person, |
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27 | 27 | | political subdivision, electric cooperative, or agency that |
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28 | 28 | | operates, maintains, or controls in this state a facility to |
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29 | 29 | | provide retail electric utility service. The term does not include |
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30 | 30 | | a corporation described by Section 32.053 to the extent that the |
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31 | 31 | | corporation sells electricity exclusively at wholesale and not to |
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32 | 32 | | the ultimate consumer. A qualifying cogenerator that sells electric |
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33 | 33 | | energy at retail to the sole purchaser of the cogenerator's thermal |
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34 | 34 | | output under Sections 35.061 and 36.007 is not for that reason |
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35 | 35 | | considered to be a retail electric utility. The owner or operator of |
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36 | 36 | | a qualifying cogeneration facility who was issued the necessary |
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37 | 37 | | environmental permits from the Texas Natural Resource Conservation |
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38 | 38 | | Commission after January 1, 1998, and who commenced construction of |
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39 | 39 | | such qualifying facility before July 1, 1998, may provide |
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40 | 40 | | electricity to the purchasers of the thermal output of that |
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41 | 41 | | qualifying facility and shall not for that reason be considered an |
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42 | 42 | | electric utility or a retail electric utility, provided that the |
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43 | 43 | | purchasers of the thermal output are owners of manufacturing or |
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44 | 44 | | process operation facilities that are located on a site entirely |
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45 | 45 | | owned before September, 1987, by one owner who retained ownership |
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46 | 46 | | after September, 1987, of some portion of the facilities and that |
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47 | 47 | | those facilities now share some integrated operations, such as the |
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48 | 48 | | provision of services and raw materials. A person who is an electric |
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49 | 49 | | generation equipment lessor or operator is not for that reason |
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50 | 50 | | considered to be a retail electric utility. A person who owns or |
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51 | 51 | | operates equipment used solely to provide electricity charging |
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52 | 52 | | service for consumption by an alternatively fueled vehicle, as |
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53 | 53 | | defined by Section 502.004, Transportation Code, is not for that |
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54 | 54 | | reason considered to be a retail electric utility. The owner or |
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55 | 55 | | operator of a qualifying congenator as defined by Subdivision |
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56 | 56 | | 31.002(13) is not considered to be a retail electric utility if the |
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57 | 57 | | owner or operator of a qualifying cogenerator is providing |
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58 | 58 | | electricity to a manufacturer of digital products and thermal, |
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59 | 59 | | steam, or waste heat to a colocated desalination facility. |
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60 | 60 | | SECTION 3. This Act takes effect immediately if it receives |
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61 | 61 | | a vote of two-thirds of all the members elected to each house, as |
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62 | 62 | | provided by Section 39, Article III, Texas Constitution. If this |
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63 | 63 | | Act does not receive the vote necessary for immediate effect, this |
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64 | 64 | | Act takes effect September 1, 2025. |
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