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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of certain infrastructure during a |
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weather emergency; authorizing administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 81.073(b), Natural Resources Code, as |
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added by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular |
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Session, 2021, is amended to read as follows: |
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(b) The rules must: |
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(1) establish criteria for designating persons who own |
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or operate a facility under the jurisdiction of the commission |
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under Section 81.051(a) or engage in an activity under the |
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jurisdiction of the commission under Section 81.051(a) who must |
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provide critical customer and critical gas supply information, as |
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defined by the commission, to the entities described by Section |
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38.074(b)(1), Utilities Code; and |
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(2) consider essential operational elements when |
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defining critical customer designations and critical gas supply |
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information for the purposes of Subdivision (1), including: |
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(A) natural gas production, processing, and |
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transportation and[,] related produced water handling and |
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disposal; |
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(B) the net load of electricity required for a |
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facility; |
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(C) the ability of an operator to reduce demand |
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from a facility in response to an instruction issued by an |
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independent system operator, as defined by Section 31.002, |
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Utilities Code; [facilities,] and |
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(D) the delivery of natural gas to generators of |
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electric energy[; and |
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[(3) require that only facilities and entities that |
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are prepared to operate during a weather emergency may be |
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designated as a critical customer under this section]. |
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SECTION 2. Sections 86.044(d), (f), and (g), Natural |
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Resources Code, are amended to read as follows: |
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(d) The commission shall: |
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(1) inspect gas supply chain facilities for compliance |
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with rules adopted under Subsection (c); and |
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(2) provide the owner of a facility described by |
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Subdivision (1) with a reasonable period of time in which to remedy |
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any violation the commission discovers in an inspection[; and |
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[(3) report to the attorney general any violation that |
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is not remedied in a reasonable period of time]. |
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(f) The commission by rule shall require an operator of a |
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gas supply chain facility that experiences repeated |
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weather-related or major weather-related forced interruptions of |
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production to: |
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(1) [contract with a person who is not an employee of |
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the operator to] assess the operator's weatherization plans, |
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procedures, and operations and propose remedial measures; and |
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(2) submit the assessment and remedial measures to the |
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commission. |
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(g) The commission may require an operator of a gas supply |
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chain facility to implement remedial measures [appropriate |
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recommendations included in an assessment] submitted to the |
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commission under Subsection (f) if the commission determines the |
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remedial measures are necessary for compliance with rules adopted |
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under Subsection (c). |
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SECTION 3. Section 86.223, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 86.223. SUIT FOR PENALTY. The penalty authorized by |
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Section 86.222 may be recovered with the cost of suit by the State |
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of Texas through the attorney general or the county or district |
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attorney when joined by the attorney general in a civil action |
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instituted in Travis County, in the county in which the violation |
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occurred, or in the county of residence of the defendant. |
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SECTION 4. Subchapter G, Chapter 86, Natural Resources |
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Code, is amended by adding Section 86.2235, and a heading is added |
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to that section to read as follows: |
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Sec. 86.2235. WEATHER EMERGENCY PREPAREDNESS PENALTIES. |
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SECTION 5. Sections 86.222(a-1), (c), and (d), Natural |
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Resources Code, are transferred to Section 86.2235, Natural |
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Resources Code, as added by this Act, redesignated as Sections |
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86.2235(a), (b), (c), and (d), Natural Resources Code, and amended |
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to read as follows: |
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(a) Section 86.222 does not apply to a violation |
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[(a-1) Notwithstanding Subsection (a), a person who violates a |
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provision] of a rule adopted under Section 86.044. If the |
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commission determines that a person has violated a rule adopted |
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under Section 86.044, the commission shall assess a penalty against |
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the person in the manner provided by Sections 81.0532-81.0534 for |
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assessing an administrative penalty under Section 81.0531. |
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(b) The penalty may not exceed [is liable for a penalty of |
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not more than] $1,000,000 for each offense. Each day a violation |
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occurs constitutes a separate offense. |
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(c) The commission by rule shall establish a classification |
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system to be used [by a court under this subchapter] for violations |
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of rules adopted under Section 86.044 that includes a range of |
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penalties that may be recovered for each class of violation based |
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on: |
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(1) the seriousness of the violation, including: |
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(A) the nature, circumstances, extent, and |
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gravity of a prohibited act; and |
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(B) the hazard or potential hazard created to the |
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health, safety, or economic welfare of the public; |
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(2) the history of previous violations; |
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(3) the amount necessary to deter future violations; |
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(4) efforts to correct the violation; and |
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(5) any other matter that justice may require. |
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(d) The classification system established under Subsection |
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(c) shall provide that a penalty in an amount that exceeds $5,000 |
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may be recovered only if the violation is included in the highest |
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class of violations in the classification system. |
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SECTION 6. Section 86.2235, Natural Resources Code, as |
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added by this Act, is amended by adding Subsection (e) to read as |
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follows: |
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(e) Notwithstanding Subsection (a), the commission may not |
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assess a penalty against an operator of a facility for a violation |
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of a rule adopted under Section 86.044 if the commission determines |
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that the operator made reasonably prudent efforts to comply with |
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the rule, regardless of whether the facility failed to operate |
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during a weather emergency. |
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SECTION 7. Section 38.202(f), Utilities Code, is amended to |
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read as follows: |
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(f) Information written, produced, collected, assembled, or |
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maintained under law or in connection with the transaction of |
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official business by the committee or an officer or employee of the |
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committee is subject to Section 552.008, Government Code, including |
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information that is confidential under Section 418.181, Government |
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Code. This subsection does not apply to the physical locations of |
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critical facilities, maps created under this subchapter, or |
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proprietary information created or gathered during the mapping |
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process. |
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SECTION 8. Section 38.203(d), Utilities Code, is amended to |
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read as follows: |
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(d) Except as provided by Section 38.202(f): |
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(1) the [The] information maintained in the database |
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is confidential under Section 418.181, Government Code, and not |
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subject to disclosure under Chapter 552, Government Code; and |
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(2) portions of documents in the possession of the |
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committee that are confidential under Section 418.181, Government |
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Code, are not subject to disclosure under Chapter 552, Government |
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Code. |
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SECTION 9. Subchapter F, Chapter 38, Utilities Code, is |
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amended by adding Section 38.205 to read as follows: |
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Sec. 38.205. NOTICE AND HEARING BEFORE ADDING NATURAL GAS |
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FACILITY TO MAP. (a) The committee may include on the electricity |
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supply chain map a gas supply chain facility, as defined by Section |
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86.044, Natural Resources Code, or a gas pipeline facility |
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described by Section 121.2015, only after the committee provides |
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the operator of the facility with notice and an opportunity for a |
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contested case hearing in the manner provided by Chapter 2001, |
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Government Code. If the operator requests a hearing, the committee |
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shall refer the matter to the Railroad Commission of Texas for the |
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hearing. |
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(b) The Railroad Commission of Texas shall hold the |
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contested case hearing and issue a decision in writing in |
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accordance with Chapter 2001, Government Code, as to whether the |
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facility may be included on the electricity supply chain map based |
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on applicable rules and provisions of this code and the Natural |
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Resources Code. |
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(c) The committee shall comply with the decision issued by |
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the Railroad Commission of Texas. |
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SECTION 10. The following provisions are repealed: |
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(1) Section 86.044(h), Natural Resources Code; and |
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(2) Section 186.008, Utilities Code. |
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SECTION 11. Section 38.205, Utilities Code, as added by |
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this Act, applies only to the addition of a gas supply chain |
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facility or gas pipeline facility to the electricity supply chain |
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map under Subchapter F, Chapter 38, Utilities Code, on or after the |
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effective date of this Act. |
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SECTION 12. This Act takes effect September 1, 2023. |