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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the construction and operation of combined heating and  | 
      
      
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        power facilities in certain cities. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 552.002, Local Government Code, by  | 
      
      
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        adding subsections (e) and (f) as follows: | 
      
      
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               (e)  Notwithstanding any municipal charter provision to the  | 
      
      
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        contrary, a home rule city may buy, own, construct, maintain, and  | 
      
      
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        operate a combined heating and power system or plant with related  | 
      
      
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        infrastructure, and may sell energy commodities from such system,  | 
      
      
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        plant, or infrastructure, including but not limited to,  | 
      
      
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        electricity, chilled water, steam, or gas in a Combined Heating and  | 
      
      
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        Power Economic Development District so designated and defined by  | 
      
      
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        the governing body of the municipality, which shall be at a distance  | 
      
      
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        of no greater than three miles from the combined heating and power  | 
      
      
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        plant, and which is wholly located within the corporate boundaries  | 
      
      
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        of the municipality. | 
      
      
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               (f)  Subsection (e) only applies to a home rule city that: | 
      
      
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                     (1)  has a population that is greater than 100,000; | 
      
      
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                     (2)  owns and operates a municipally owned electric  | 
      
      
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        utility that is a member of a Texas municipal power agency; and | 
      
      
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                     (3)  is located adjacent to a county with a population  | 
      
      
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        that is greater than two million. | 
      
      
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               SECTION 2.  EFFECTIVE DATE.  This Act takes effect  | 
      
      
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        immediately if it receives a vote of two-thirds of all the members  | 
      
      
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        elected to each house, as provided by Section 39, Article III, Texas  | 
      
      
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        Constitution.  If this Act does not receive the vote necessary for  | 
      
      
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        immediate effect, this Act takes effect September 1, 2011. |