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  By: Estes S.B. No. 1230
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the construction and operation of combined heating and
  power facilities in certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 552, Local Government
  Code, is amended by adding Section 552.913 to read as follows:
         Sec. 552.913.  COMBINED HEATING AND POWER SYSTEMS IN CERTAIN
  MUNICIPALITIES. (a)  This section applies only to a home-rule
  municipality that:
               (1)  has a population of more than 100,000;
               (2)  owns and operates an electric utility that is a
  member of a municipal power agency; and
               (3)  is located in a county adjacent to a county with a
  population of more than two million.
         (b)  To the extent this section conflicts with a municipal
  charter provision, this section controls.
         (c)  A municipality may buy, own, construct, maintain, and
  operate a combined heating and power system or plant and related
  infrastructure.
         (d)  The governing body of the municipality may designate a
  combined heating and power economic development district that
  includes territory that:
               (1)  is within three miles of the combined heating and
  power plant;
               (2)  is wholly located within the corporate boundaries
  of the municipality; and
               (3)  does not have an interstate or federal highway
  located within the boundaries of the district on the date the
  territory is designated.
         (e)  The municipality may sell an energy commodity from the
  system or plant, including electricity, chilled water, steam, or
  gas. The municipality may sell gas only to industrial customers
  located in the combined heating and power economic development
  district.
         (f)  The municipality shall assess fees against a municipal
  entity selling gas to industrial customers in the combined heating
  and power economic district that are substantially the same as the
  fees assessed against a gas utility that is not owned by the
  municipality for occupation of a municipal right-of-way.
         SECTION 2.  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, 2011.