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        |  | 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. |