81R15769 TRH-F

By: Turner of Harris, Smith of Harris, H.B. No. 632

Callegari, Davis of Harris, Bonnen

Substitute the following for H.B. No. 632:

By: Solomons C.S.H.B. No. 632

A BILL TO BE ENTITLED

AN ACT

relating to the requirement that retail water and utility services adopt an emergency preparedness plan for use during a local power outage; providing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 341, Health and Safety Code, is amended by adding Section 341.0359 to read as follows:

Sec. 341.0359. CONTINUATION OF SERVICE DURING LOCAL POWER OUTAGE. (a) This section applies only to a retail public utility that serves customers in a county any territory of which is located not more than 100 miles from the Gulf of Mexico.

(b) Each year, a retail public utility, as defined by Section 13.002, Water Code, shall adopt and submit to the commission for its approval an emergency preparedness plan that ensures that, in the event of a local power outage during the next year, the retail public utility maintains the ability to provide:

(1) water to the local distribution system with at least the minimum water pressure required under commission rules; and

(2) sewer services to all existing customers.

(c) The commission shall review and approve or disapprove an emergency preparedness plan submitted under Subsection (b) and issue a notification of approval or a notification of the reasons for disapproval of the plan. An emergency preparedness plan must provide for:

(1) the maintenance of automatically starting auxiliary generators for that purpose; or

(2) the retail public utility's participation in a recognized statewide mutual aid program, if the commission finds that the utility's participation in the program will provide the utility with access to auxiliary generators and other necessary aid or equipment sufficient for the utility to restore service not later than the 36th hour after the hour the local power outage begins.

(d) If a retail public utility's emergency preparedness plan provides for the maintenance of automatically starting auxiliary generators, the retail public utility must include with the plan a proposed schedule for the regular servicing, testing, and operation of the generators that complies with commission rules. A retail public utility that maintains auxiliary generators shall maintain a log of the regular servicing, testing, and operation of the generators and shall submit a copy of the log to the commission with its yearly emergency preparedness plan. The commission may inspect the log at any time before the retail public utility submits the log to the commission.

(e) The commission by rule shall prescribe standards relating to the servicing, testing, and operation of auxiliary power generators used in the implementation of an emergency preparedness plan submitted under Subsection (b).

(f) The commission may impose an administrative penalty on a person licensed under this chapter who violates this section or a rule or order adopted under this section. The amount of the penalty may not exceed $1,000 for each day a violation continues or occurs, with a maximum total penalty for a continuing violation of not more than $10,000. The amount of the penalty shall be based on:

(1) the seriousness of the violation, including the nature, circumstances, extent, and gravity of the violation;

(2) the number of violations and the person's history of previous violations;

(3) the amount necessary to deter a future violation;

(4) the person's efforts to correct the violation; and

(5) any other matter that justice may require.

(g) The enforcement of an administrative penalty ordered under this section may be stayed during the time the order is under judicial review if the person pays the penalty to the clerk of the court or files a supersedeas bond with the court in the amount of the penalty. A person who cannot afford to pay the penalty or file the bond may stay the enforcement by filing an affidavit in the manner required by the Texas Rules of Civil Procedure for a party who cannot afford to file security for costs, subject to the right of the commission to contest the affidavit as provided by those rules.

(h) The attorney general may sue to collect an administrative penalty assessed under this section.

(i) A proceeding to impose an administrative penalty is a contested case under Chapter 2001, Government Code.

(j) In addition to assessing an administrative penalty for a violation of this section, the commission may revoke a retail public utility's license to operate.

SECTION 2. Not later than December 1, 2009, the Texas Commission on Environmental Quality shall adopt rules as required by Section 341.0359, Health and Safety Code, as added by this Act.

SECTION 3. A retail public utility required to adopt and submit an emergency preparedness plan under Section 341.0359, Health and Safety Code, as added by this Act, shall comply with Texas Commission on Environmental Quality rules adopted under that section not later than January 31, 2010.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.