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A BILL TO BE ENTITLED
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AN ACT
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relating to resources used to ensure the continuous provision of |
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power. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 382, Health and Safety |
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Code, is amended by adding Section 382.069 to read as follows: |
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Sec. 382.069. TEXAS BACKUP POWER PACKAGE. (a) In this |
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section, "Texas backup power package" has the meaning assigned by |
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Section 418.401, Government Code. |
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(b) The commission by rule shall adopt a process to expedite |
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the permitting of a Texas backup power package for which a permit is |
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required under this chapter. |
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SECTION 2. Chapter 418, Government Code, is amended by |
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adding Subchapter K to read as follows: |
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SUBCHAPTER K. TEXAS POWER PROMISE |
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Sec. 418.401. DEFINITIONS. In this subchapter: |
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(1) "Fund" means the Texas power resiliency fund |
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established by Section 49-q, Article III, Texas Constitution. |
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(2) "Texas backup power package" means a stand-alone, |
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behind-the-meter, multiday backup power source that can be used for |
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islanding. |
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(3) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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Sec. 418.402. PURPOSE. The purpose of this subchapter is to |
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facilitate and provide funding for: |
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(1) the design, procurement, installation, and use of |
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Texas backup power packages for facilities on which communities |
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rely for health, safety, and well-being; and |
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(2) the procurement and use of mobile sources of |
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backup power to ensure the health, safety, and well-being of |
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communities. |
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Sec. 418.403. DIVISION DUTIES. (a) The division shall |
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convene an advisory committee in the manner provided by Chapter |
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2110, Government Code. |
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(b) The advisory committee shall recommend criteria for the |
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division to employ in making a grant or loan under this subchapter. |
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(c) The division shall contract with a research entity that |
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has experience in microgrid design to analyze critical facility |
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characteristics and requirements in this state and develop for |
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Texas backup power packages: |
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(1) sets of specifications for standard backup power |
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packages of various sizes that can serve most critical facilities |
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in this state; and |
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(2) specifications for standard interconnection, |
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communications, and controls for Texas backup power packages. |
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Sec. 418.404. TEXAS BACKUP POWER PACKAGES. (a) A grant or |
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loan made under this subchapter may be provided only for the |
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operation of a Texas backup power package that: |
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(1) is engineered to minimize operation costs; |
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(2) uses interconnection technology and controls that |
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enable immediate islanding from the power grid and stand-alone |
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operation for the host facility; |
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(3) is capable of operating for at least 48 continuous |
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hours without refueling or connecting to a separate power source; |
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(4) is designed so that one or more Texas backup power |
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packages can be aggregated on-site to serve not more than 2.5 |
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megawatts of load at the host facility; |
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(5) provides power sourced from: |
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(A) a combination of natural gas or propane with |
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photovoltaic panels and battery storage; or |
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(B) battery storage on an electric school bus; |
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and |
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(6) is not used by the owner or host facility for the |
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sale of energy or ancillary services. |
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(b) Texas backup power packages may be aggregated and |
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operated to support the power grid under emergency conditions if |
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the operation does not compromise a Texas backup power package's |
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capability to provide power to its host facility for at least 24 |
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hours of operation without refueling or connecting to a separate |
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power source. |
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Sec. 418.405. GRANTS AND LOANS. (a) The division may |
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provide grants and loans under this subchapter. |
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(b) The division by rule may establish procedures for: |
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(1) the application for and award of a grant or loan |
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under this subchapter; and |
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(2) the administration of the fund. |
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(c) The amount of a grant provided under this subchapter may |
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not exceed $500 per kilowatt of capacity. |
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(d) The division may provide a loan under this subchapter |
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for procurement and operating costs. |
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(e) The division shall maintain and publish a list of |
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approved vendors eligible to assist with the sale, installation, |
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operation, and ongoing maintenance of Texas backup power packages. |
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(f) The division may not provide a grant or loan under this |
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subchapter for: |
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(1) a commercial energy system, a private school, or a |
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for-profit entity that does not directly serve public safety and |
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human health; or |
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(2) a source of backup power that does not follow the |
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design and use standards of a Texas backup power package. |
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Sec. 418.406. MOBILE BACKUP POWER FLEET. The division may |
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use money from the fund to procure and deploy mobile sources of |
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backup power to ensure the health, safety, and well-being of |
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communities. |
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Sec. 418.407. FUND. (a) The Texas power resiliency fund is |
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a special fund in the state treasury outside the general revenue |
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fund to be administered and used, without further appropriation, by |
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the division. |
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(b) The fund and the fund's accounts are kept and held by the |
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trust company for and in the name of the division. |
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(c) Money deposited to the credit of the fund may be used |
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only as provided by this subchapter. |
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(d) The fund consists of: |
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(1) money credited, appropriated, or transferred to |
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the fund by the legislature; |
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(2) revenue that the legislature dedicates for deposit |
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to the credit of the fund; |
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(3) the returns received from the investment of money |
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in the fund; and |
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(4) gifts, grants, and donations contributed to the |
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fund. |
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Sec. 418.408. MANAGEMENT AND INVESTMENT OF FUND. (a) The |
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trust company shall hold and invest the fund, taking into account |
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the purposes for which money in the fund may be used. The fund may |
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be invested with the state treasury pool or pooled with other state |
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assets for purposes of investment. |
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(b) The overall objective for the investment of the fund is |
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to maintain sufficient liquidity to meet the needs of the fund while |
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striving to preserve the purchasing power of the fund over a full |
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economic cycle. |
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(c) In managing the assets of the fund, the trust company |
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may acquire, exchange, sell, supervise, manage, or retain any kind |
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of investment that a prudent investor, exercising reasonable care, |
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skill, and caution, would acquire or retain in light of the |
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purposes, terms, distribution requirements, and other |
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circumstances of the fund then prevailing, taking into |
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consideration the investment of all the assets of the fund rather |
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than a single investment. |
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(d) The reasonable expenses of managing the fund shall be |
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paid from the fund. |
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(e) The trust company annually shall provide a written |
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report to the division with respect to the investment of the fund. |
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(f) The trust company shall adopt a written investment |
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policy that is appropriate for the fund. The trust company shall |
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present the investment policy to the investment advisory board |
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established under Section 404.028. The investment advisory board |
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shall submit to the trust company recommendations regarding the |
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policy. |
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(g) The division annually shall provide to the trust company |
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a forecast of the cash flows into and out of the fund. The division |
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shall provide updates to the forecasts as appropriate to ensure |
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that the trust company is able to achieve the objective specified by |
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Subsection (b). |
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(h) The trust company shall disburse money from the fund as |
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directed by the division. |
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SECTION 3. Section 38.076, Utilities Code, is amended by |
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adding Subsection (c-1) to read as follows: |
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(c-1) The commission shall require transmission and |
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distribution utilities to use good faith efforts to ensure that no |
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distribution feeder is subject to load shedding for more than four |
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consecutive hours in a six-hour period. |
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SECTION 4. Subchapter D, Chapter 38, Utilities Code, is |
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amended by adding Section 38.078 to read as follows: |
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Sec. 38.078. CIRCUIT SEGMENTATION STUDY AND COST RECOVERY. |
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(a) Not later than September 15, 2023, the commission shall direct |
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each transmission and distribution utility to perform a circuit |
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segmentation study. |
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(b) A circuit segmentation study must: |
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(1) use an engineering analysis to examine whether and |
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how the transmission and distribution utility's transmission and |
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distribution systems can be segmented and sectionalized to manage |
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and rotate outages more evenly across all customers and circuits, |
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while maintaining the protections offered to critical facilities; |
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(2) include an engineering analysis of the feasibility |
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of using sectionalization, automated reclosers, and other |
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technology to break up the circuits that host significant numbers |
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of critical facilities into smaller segments for outage management |
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purposes to enable more granular and flexible outage management; |
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(3) identify feeders with extensive numbers of |
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critical facilities that, if equipped with facility-specific |
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backup power systems and segmentation, can enhance the utility's |
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outage management flexibility; and |
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(4) include an estimate of the time, capital cost, and |
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expected improvements to load-shed management associated with the |
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circuit segmentation study. |
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(c) Each transmission and distribution utility shall submit |
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a report of the conclusions of the utility's study to the commission |
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not later than September 1, 2024. |
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(d) The commission shall review each circuit segmentation |
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study not later than March 15, 2025. |
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(e) If the commission determines that the implementation of |
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circuit segmentation engineering and investments as provided by a |
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transmission and distribution utility's circuit segmentation study |
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report would facilitate better outage management in the ERCOT power |
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region, investments made by the utility for such purposes shall be |
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presumed just, reasonable, and appropriate for rate-based cost |
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recovery. |
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SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.919 to read as follows: |
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Sec. 39.919. TEXAS BACKUP POWER PACKAGES. (a) In this |
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section, "Texas backup power package" has the meaning assigned by |
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Section 418.401, Government Code. |
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(b) The commission by rule shall adopt procedures to |
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expedite electric cooperative, municipally owned utility, and |
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electric utility interconnection requests for Texas backup power |
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packages. |
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SECTION 6. This Act takes effect on the date on which the |
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constitutional amendment proposed by the 88th Legislature, Regular |
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Session, 2023, providing for the creation of the Texas power |
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resiliency fund to finance backup power sources takes effect. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |
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* * * * * |