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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of utility reliability and resiliency |
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projects by the Texas Water Development Board; authorizing the |
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issuance of revenue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The legislature recognizes the importance |
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of providing for the reliability and resiliency of this state's |
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utilities, broadband providers, and power generation resources. |
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The purpose of this Act is to ensure that proper funding in the form |
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of meaningful and adequate financial assistance is available to |
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enhance the reliability and resiliency of water, electric, and |
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natural gas utilities, broadband providers, and power generation |
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resources in this state, including by supporting projects to |
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weatherize facilities and provide resilience during periods of high |
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demand. |
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(b) To accomplish that purpose, this Act creates the state |
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utilities reliability fund. The fund is intended to serve as an |
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infrastructure funding source in order to enhance the financing |
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capabilities of the Texas Water Development Board under a |
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constitutionally created program and a revenue bond program. Money |
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in the fund will be available to provide any financial assistance, |
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including market rate loans, low-interest loans, longer repayment |
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terms for loans, deferral of loan payments, interest rate |
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subsidies, loan guarantees, grants, or other financial assistance |
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that meets the needs of this state, the recipients, and the purposes |
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of this Act. In addition, this Act creates the state utilities |
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reliability revenue fund for use in managing revenue bonds issued |
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by the Texas Water Development Board that are supported by the state |
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utilities reliability fund. |
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SECTION 2. Title 4, Utilities Code, is amended by adding |
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Subtitle C to read as follows: |
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SUBTITLE C. RELIABILITY AND RESILIENCY OF UTILITIES, BROADBAND |
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PROVIDERS, AND POWER GENERATORS |
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CHAPTER 201. GENERAL PROVISIONS |
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Sec. 201.001. DEFINITIONS. In this subtitle: |
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(1) "Advisory committee" means the State Utilities |
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Reliability Fund Advisory Committee. |
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(2) "Board" means the Texas Water Development Board. |
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(3) "Broadband provider" means any person, |
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corporation, municipality or other political subdivision, or |
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agency that owns or operates for compensation in this state |
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equipment or facilities to provide broadband telecommunications |
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capability and Internet access in this state. |
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(4) "Commission" means the Public Utility Commission |
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of Texas. |
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(5) "Electric utility" has the meaning assigned by |
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Section 31.002. |
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(6) "Executive administrator" means the executive |
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administrator of the Texas Water Development Board. |
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(7) "Facilities" means all of the property, plants, |
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and equipment of an electric, natural gas, or water utility, a |
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broadband provider, or a power generation company. The term |
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includes tangible and intangible property owned, operated, leased, |
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licensed, used, controlled, or supplied for, by, or in connection |
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with the business of the electric, natural gas, or water utility, |
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the broadband provider, or the power generation company in this |
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state. |
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(8) "Fund" means the state utilities reliability fund. |
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(9) "Historically underutilized business" has the |
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meaning assigned by Section 2161.001, Government Code. |
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(10) "Natural gas utility" means a person who owns or |
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operates for compensation in this state equipment or facilities to |
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transmit or distribute combustible hydrocarbon natural gas or |
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synthetic natural gas for sale or resale in a manner not subject to |
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the jurisdiction of the Federal Energy Regulatory Commission under |
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the Natural Gas Act (15 U.S.C. Section 717 et seq.). |
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(11) "Power generation company" has the meaning |
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assigned by Section 31.002. |
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(12) "Railroad commission" means the Railroad |
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Commission of Texas. |
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(13) "Revenue fund" means the state utilities |
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reliability revenue fund. |
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(14) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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(15) "Water utility" means a person operating, |
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maintaining, or controlling in this state facilities for providing |
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potable water service or wastewater service, or both, for |
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compensation. |
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CHAPTER 202. STATE UTILITIES RELIABILITY FUND |
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Sec. 202.001. FUND. (a) The state utilities reliability |
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fund is a special fund in the state treasury outside the general |
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revenue fund to be used by the board as authorized by this chapter |
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without further legislative appropriation. The board may establish |
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separate accounts in the fund and may transfer funds between |
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accounts. The board may invest, reinvest, and direct the |
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investment of money in the fund. The fund and the fund's accounts |
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may be kept and held by the trust company or other trustee selected |
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by the board for and in the name of the board. The board has legal |
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title to money and investments in the fund until money is disbursed |
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from the fund as provided by this chapter and board rules. |
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(b) Money deposited to the credit of the fund may be used |
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only as provided by Section 202.003. |
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(c) The fund consists of: |
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(1) money appropriated to the fund; |
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(2) money transferred or deposited to the credit of |
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the fund by law, including money from any source transferred or |
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deposited to the credit of the fund at the board's discretion as |
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authorized by law; |
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(3) the proceeds of any fee or tax imposed by this |
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state that by statute is dedicated for deposit to the credit of the |
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fund; |
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(4) any other revenue that the legislature by statute |
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dedicates for deposit to the credit of the fund; |
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(5) investment earnings and interest earned on amounts |
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credited to the fund; and |
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(6) money transferred to the fund from another fund or |
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account to which money from the fund was transferred. |
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Sec. 202.002. MANAGEMENT AND INVESTMENT OF FUND. (a) The |
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board, trust company, or other trustee selected by the board may |
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hold and invest the fund, and any accounts established in the fund, |
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for and in the name of the board, taking into account the purposes |
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for which money in the fund may be used. The fund may be invested |
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with the state treasury pool. |
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(b) The overall objectives for the investment of the fund |
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are, in order of precedence: |
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(1) preservation and safety of the fund principal; |
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(2) liquidity; and |
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(3) investment yield. |
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(c) The board or a trustee, as directed by the board, has any |
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power necessary to accomplish the purposes of managing and |
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investing the assets of the fund. In managing the assets of the |
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fund, through procedures and subject to restrictions the board or |
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trustee considers appropriate, the board or trustee may acquire, |
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exchange, sell, supervise, manage, or retain any kind of investment |
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that a prudent investor, exercising reasonable care, skill, and |
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caution, would acquire or retain in light of the purposes, terms, |
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distribution requirements, and other circumstances of the fund then |
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prevailing, taking into consideration the investment of all the |
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assets of the fund rather than a single investment. |
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(d) The board or a trustee may charge fees to cover its costs |
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incurred in managing and investing the fund. The fees must be |
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consistent with the fees the board or trustee charges other state |
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and local governmental entities for which the board or trustee |
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provides investment management services. The board or trustee may |
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recover fees the board or trustee charges under this subsection |
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only from the earnings of the fund. |
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(e) If the fund is managed by a trustee, the trustee |
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annually shall provide a report to the board and to the advisory |
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committee with respect to the investment of the fund. The trustee |
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shall contract with a certified public accountant to conduct an |
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independent audit of the fund annually and shall present the |
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results of each annual audit to the board and to the advisory |
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committee. This subsection does not affect the state auditor's |
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authority to conduct an audit of the fund under Chapter 321, |
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Government Code. |
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(f) The board or trustee shall adopt a written investment |
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policy that is appropriate for the fund. The board or trustee shall |
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present the investment policy to the investment advisory board |
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established under Section 404.028, Government Code. The investment |
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advisory board shall submit to the board or trustee recommendations |
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regarding the policy. |
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(g) If the fund is managed by a trustee, the board annually |
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shall provide to the trustee a forecast of the cash flows into and |
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out of the fund. The board shall provide updates to the forecasts |
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as appropriate to assist the trustee in achieving the objectives |
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specified by Subsection (b). |
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(h) If the fund is managed by a trustee, the trustee shall |
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disburse money from the fund as directed by the board. |
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(i) An investment-related contract entered into under this |
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section is not subject to Chapter 2260, Government Code. |
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Sec. 202.003. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS |
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OR ACCOUNTS. (a) The board or a trustee at the direction of the |
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board shall make disbursements from the fund to the revenue fund in |
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the amounts the board determines are needed for disbursement |
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through the financing structures developed to meet the goals of the |
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fund, including transfer of those amounts to other board programs |
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or funds as necessary, or for debt service payments on or security |
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provisions of the board's revenue bonds, after considering all |
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other sources available for those purposes. |
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(b) The fund may be used only to: |
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(1) enhance the reliability and resiliency of water, |
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electric, and natural gas utilities, broadband providers, and power |
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generation companies for this state by supporting projects, |
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including projects to weatherize facilities, in order to provide |
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resilience and continuous service during periods of high demand; |
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(2) pay the necessary and reasonable expenses of the |
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board in administering the fund; and |
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(3) transfer funds to other board programs or funds. |
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(c) Notwithstanding any other provision of this chapter, |
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the use of the fund may be prioritized based on a statewide utility |
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reliability and resiliency plan adopted under Section 202.010. |
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(d) The board may provide financial assistance from the fund |
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for: |
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(1) a water utility project; |
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(2) an electric utility project; |
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(3) a natural gas utility project; or |
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(4) a broadband provider to provide matching funds to |
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enable the broadband provider to participate in a federal program |
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for broadband facilities. |
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(e) Financial assistance under Subsection (d) may be |
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provided in any form as determined by the board, including a loan, a |
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loan guarantee, an equity ownership in a public or private entity, a |
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joint venture with a public or private entity, a grant, an interest |
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rebate, or an interest subsidy. |
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(f) In providing financial assistance under Subsection (d), |
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the board may make, enter into, and enforce contracts, agreements, |
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including management agreements, for the management of any of the |
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board's property, leases, indentures, mortgages, deeds of trust, |
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security agreements, pledge agreements, credit agreements, |
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overrides or other revenue sharing mechanisms, repurchase |
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agreements, and other instruments with any person, including any |
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lender and any federal, state, or local governmental agency, and to |
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take other actions as may accomplish any of its purposes. |
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(g) The fund may not be used to subsidize or finance the |
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construction of electric generation facilities. |
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(h) Money in the fund may not be used for the purposes of |
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certification under Section 403.121, Government Code. |
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Sec. 202.004. PRIORITIZATION OF PROJECTS BY BOARD. (a) The |
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board, for the purpose of providing financial assistance under this |
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chapter, shall prioritize projects that enhance the reliability and |
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resiliency of water, electric, and natural gas utilities, broadband |
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providers, and power generation companies in this state. |
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(b) The board shall establish a point system for |
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prioritizing projects for which financial assistance is sought from |
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the board. The system must include a standard for the board to |
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apply in determining whether a project qualifies for financial |
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assistance at the time the application for financial assistance is |
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filed with the board. |
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(c) The board shall give the highest consideration in |
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awarding points to projects that will have a substantial effect, |
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including projects that will: |
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(1) harden facilities to protect against extreme |
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weather and fuel supply disruptions; |
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(2) enhance resiliency of existing facilities during |
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periods of high demand; and |
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(3) enhance the availability of fuel or water to |
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existing power generation resources to improve the reliability of |
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those resources to provide continuous and adequate electric service |
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during periods of high demand. |
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(d) In addition to the criteria provided by Subsection (c), |
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the board may also consider the following criteria in prioritizing |
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projects: |
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(1) other funding sources secured by the applicant for |
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the project, including any capital to be provided by the applicant; |
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(2) the financial capacity of the applicant to repay |
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the financial assistance provided; and |
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(3) the ability of the applicant to timely leverage |
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state financing with local, federal, or private funding. |
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(e) The board may not consider federal tax subsidies in |
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prioritizing projects. |
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Sec. 202.005. ADVISORY COMMITTEE. (a) The State Utilities |
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Reliability Fund Advisory Committee is composed of the following |
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seven members: |
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(1) the comptroller, or a person designated by the |
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comptroller; |
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(2) three members of the senate appointed by the |
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lieutenant governor, including: |
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(A) a member of the committee of the senate |
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having primary jurisdiction over matters relating to finance; and |
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(B) a member of the committee of the senate |
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having primary jurisdiction over natural resources; and |
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(3) three members of the house of representatives |
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appointed by the speaker of the house of representatives, |
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including: |
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(A) a member of the committee of the house of |
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representatives having primary jurisdiction over appropriations; |
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and |
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(B) a member of the committee of the house of |
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representatives having primary jurisdiction over natural |
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resources. |
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(b) The board shall provide staff as necessary to assist the |
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advisory committee. |
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(c) An appointed member of the advisory committee serves at |
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the will of the officer who appointed the member. |
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(d) The lieutenant governor shall appoint a co-presiding |
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officer of the advisory committee from among the members appointed |
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by the lieutenant governor, and the speaker of the house of |
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representatives shall appoint a co-presiding officer of the |
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committee from among the members appointed by the speaker. |
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(e) The advisory committee may hold public hearings, formal |
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meetings, or work sessions. Either co-presiding officer of the |
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advisory committee may call a public hearing, formal meeting, or |
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work session of the advisory committee at any time. The advisory |
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committee may not take formal action at a public hearing, formal |
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meeting, or work session unless a quorum of the committee is |
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present. |
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(f) Except as otherwise provided by this subsection, a |
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member of the advisory committee is not entitled to receive |
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compensation for service on the committee or reimbursement for |
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expenses incurred in the performance of official duties as a member |
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of the committee. Service on the advisory committee by a member of |
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the senate or house of representatives is considered legislative |
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service for which the member is entitled to reimbursement and other |
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benefits in the same manner and to the same extent as for other |
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legislative service. |
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(g) The advisory committee shall submit comments and |
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recommendations to the board regarding the use of money in the fund |
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and in the revenue fund for use by the board in adopting rules under |
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Section 202.006 and in adopting policies and procedures under |
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Section 202.008. The submission must include: |
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(1) comments and recommendations on rulemaking |
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related to the prioritization of projects in accordance with |
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Section 202.004; |
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(2) comments and recommendations on rulemaking |
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related to establishing standards for determining whether projects |
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meet the criteria provided by Section 202.003; |
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(3) an evaluation of the available programs for |
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providing financing for projects authorized by this chapter and |
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guidelines for implementing those programs; |
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(4) an evaluation of the lending practices of the |
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board and guidelines for lending standards; |
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(5) an evaluation of the use of funds by the board to |
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provide support for financial assistance for projects that enhance |
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the reliability and resiliency of water, electric, and natural gas |
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utilities, broadband providers, and power generation companies for |
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this state, including support for the purposes described by Section |
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202.003(b); |
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(6) an evaluation of whether premium financing |
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programs should be established within the fund to serve the |
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purposes of this chapter, especially in connection with projects |
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described by Section 202.003(b); |
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(7) an evaluation of methods for encouraging |
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participation in the programs established under this chapter by |
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companies domiciled in this state or that employ a significant |
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number of residents of this state; and |
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(8) an evaluation of the overall operation, function, |
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and structure of the fund. |
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(h) The advisory committee shall review the overall |
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operation, function, and structure of the fund at least |
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semiannually and may provide comments and recommendations to the |
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board on any matter. |
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(i) The advisory committee may adopt rules, procedures, and |
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policies as needed to administer this section and implement its |
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responsibilities. |
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(j) Chapter 2110, Government Code, does not apply to the |
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size, composition, or duration of the advisory committee. |
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(k) The advisory committee is subject to Chapter 325, |
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Government Code (Texas Sunset Act). Unless continued in existence |
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as provided by that chapter, the advisory committee is abolished |
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and this section expires September 1, 2035. |
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(l) The advisory committee shall make recommendations to |
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the board regarding information to be posted on the board's |
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Internet website under Section 202.007(b). |
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(m) The advisory committee shall evaluate and may provide |
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comments or recommendations on the feasibility of the state owning, |
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constructing, and operating water, electric, natural gas, or |
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broadband facilities related to the purposes described by Section |
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202.003(b). |
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(n) The executive administrator shall provide an annual |
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report to the advisory committee on: |
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(1) the board's compliance with statewide annual goals |
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relating to historically underutilized businesses; and |
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(2) the participation level of historically |
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underutilized businesses in projects that receive funding under |
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this chapter. |
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(o) If the aggregate level of participation by historically |
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underutilized businesses in projects that receive funding under |
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this chapter does not meet statewide annual goals adopted under |
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Chapter 2161, Government Code, the advisory committee shall make |
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recommendations to the board to improve the participation level. |
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Sec. 202.006. RULES. (a) The board shall adopt rules |
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providing for the use of money in the fund that are consistent with |
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this subchapter, including rules: |
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(1) establishing standards for determining whether |
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projects meet the criteria provided by Section 202.003; and |
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(2) specifying the manner for prioritizing projects |
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for purposes of Section 202.004. |
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(b) The board shall give full consideration to the |
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recommendations of the advisory committee before adopting rules |
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under this chapter. |
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Sec. 202.007. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) |
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Not later than December 1 of each even-numbered year, the board |
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shall provide a report to the governor, lieutenant governor, |
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speaker of the house of representatives, and members of the |
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legislature regarding the use of the fund. |
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(b) The board shall post the following information on the |
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board's Internet website regarding the use of the fund and |
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regularly update the information posted: |
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(1) the progress made in enhancing critical water, |
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electric, natural gas, and broadband infrastructure to withstand |
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periods of high demand; and |
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(2) a description of each project funded through the |
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fund, including the expected date of completion of the project. |
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Sec. 202.008. POLICIES AND PROCEDURES TO MITIGATE OR |
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MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall |
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adopt, and may amend from time to time at the board's discretion, |
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policies and procedures for the purpose of mitigating or minimizing |
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the adverse effects, if any, of federal laws and regulations |
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relating to income taxes, arbitrage, rebates, and related matters |
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that may restrict the board's ability to freely invest all or part |
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of the fund or to receive and retain all the earnings from the fund. |
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Sec. 202.009. COOPERATION WITH OTHER STATE AGENCIES. (a) |
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The commission, railroad commission, and other state agencies shall |
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provide resources to the board as necessary in carrying out this |
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chapter, including entering into contracts between the board and |
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other state agencies to provide staff or services. |
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(b) The board may require the commission to review and |
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recommend for approval electric utility and broadband provider |
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projects for board assistance under this chapter and inspect |
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electric utility and broadband provider projects after board |
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assistance. |
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(c) The board may require the railroad commission to review |
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and recommend for approval natural gas utility projects for board |
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assistance under this chapter and inspect natural gas utility |
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projects after board assistance. |
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(d) The board may require any other state agency to provide |
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services to the board to ensure the goals of the fund and this |
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chapter are met. |
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Sec. 202.010. RELIABILITY AND RESILIENCY STUDY AND PLAN. |
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(a) The board may, at any time, develop and conduct a study of the |
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needs, causes, and methods to address reliability and resiliency of |
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the industries affected by this chapter and may develop a statewide |
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reliability and resiliency plan. |
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(b) The board may, at any time, use money from the fund to |
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contract and engage outside entities to develop a study or plan |
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considered necessary by the board. |
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Sec. 202.011. CHANGES TO INDUSTRY STRUCTURE NOT IN CONFLICT |
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WITH CHAPTER. Any reconstruction or changes to the regulatory |
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market structures of the industries identified in this chapter are |
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not in conflict with the purpose of this chapter. |
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Sec. 202.012. PUBLIC PRIVATE PARTNERSHIPS. Money from the |
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fund may be used to make payments under a public and private entity |
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agreement to design, develop, finance, or construct a project |
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described by this chapter. |
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CHAPTER 203. STATE UTILITIES RELIABILITY REVENUE FUND |
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Sec. 203.001. REVENUE FUND. (a) The state utilities |
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reliability revenue fund is a special fund in the state treasury |
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outside the general revenue fund to be used by the board as |
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authorized by this chapter without further legislative |
|
appropriation. The board may establish separate accounts in the |
|
revenue fund and may transfer money between accounts. The board has |
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legal title to money and investments in the revenue fund until the |
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money is disbursed as provided by this chapter and board rules. |
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(b) Money deposited to the credit of the revenue fund may be |
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used only as provided by Section 203.003. |
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(c) The revenue fund consists of: |
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(1) money appropriated to the revenue fund; |
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(2) money transferred or deposited to the credit of |
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the revenue fund by law, including money from any source |
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transferred or deposited to the credit of the revenue fund at the |
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board's discretion as authorized by law; |
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(3) the proceeds of any fee or tax imposed by this |
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state that by statute is dedicated for deposit to the credit of the |
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revenue fund; |
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(4) any other revenue that the legislature by statute |
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dedicates for deposit to the credit of the revenue fund; |
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(5) investment earnings and interest earned on amounts |
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credited to the revenue fund; |
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(6) the proceeds from the sale of revenue bonds issued |
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by the board under this chapter that are designated by the board for |
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the purpose of providing money for the revenue fund; |
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(7) repayments of loans made from the revenue fund; |
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and |
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(8) money disbursed to the revenue fund from the state |
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utilities reliability fund as authorized by Section 202.003. |
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Sec. 203.002. MANAGEMENT AND INVESTMENT OF REVENUE FUND. |
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(a) Money deposited to the credit of the revenue fund shall be |
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invested as determined by the board. The revenue fund may be |
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invested with the state treasury pool. |
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(b) The revenue fund and any accounts established in the |
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revenue fund shall be kept and maintained by or at the direction of |
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the board. |
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(c) At the direction of the board, the revenue fund and any |
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accounts established in the revenue fund may be managed by the |
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comptroller or a corporate trustee that is a trust company or a bank |
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that has the powers of a trust company for and on behalf of the board |
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and, pending use of the revenue fund and accounts for the purposes |
|
provided by this chapter, may be invested as provided by an order, |
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resolution, or rule of the board. |
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(d) The comptroller or corporate trustee shall manage the |
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revenue fund in strict accordance with this chapter and the orders, |
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resolutions, and rules of the board. |
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Sec. 203.003. USE OF REVENUE FUND. (a) Money in the |
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revenue fund may be used by the board only to provide financial |
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assistance under terms specified by the board for projects that |
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enhance the reliability and resiliency of water, electric, natural |
|
gas, broadband, and power generation infrastructure in this state, |
|
including: |
|
(1) projects that enhance the ability of |
|
infrastructure to withstand periods of high demand; and |
|
(2) projects to weatherize infrastructure. |
|
(b) Financial assistance for projects under Subsection (a) |
|
may be provided in any form determined by the board that meets the |
|
needs and goals of this state and the applicants, including a loan, |
|
loan guarantee, equity ownership in a public or private entity, a |
|
joint venture with a public or private entity, a grant, an interest |
|
rebate, or a subsidy. |
|
(c) In providing financial assistance under Subsection (a), |
|
the board may: |
|
(1) make, enter into, and enforce contracts and |
|
agreements, including management agreements, for the management of |
|
any of the board's property, leases, indentures, mortgages, deeds |
|
of trust, security agreements, pledge agreements, credit |
|
agreements, overrides or other revenue sharing mechanisms, |
|
repurchase agreements, and other instruments with any person, |
|
including any lender and any federal, state, or local governmental |
|
agency; and |
|
(2) take other actions to accomplish any of the board's |
|
purposes. |
|
(d) The board may use money in the revenue fund: |
|
(1) as a source of revenue or security for the payment |
|
of the principal of and interest on revenue bonds issued by the |
|
board under this chapter; or |
|
(2) to pay the necessary and reasonable expenses of |
|
paying agents, bond counsel, and financial advisory services and |
|
similar costs incurred by the board in administering the revenue |
|
fund. |
|
(e) The board, comptroller, or corporate trustee managing |
|
the revenue fund at the direction of the board shall withdraw from |
|
the revenue fund and pay to a person any amounts, as determined by |
|
the board, for the timely payment of: |
|
(1) the principal of and interest on bonds described |
|
by Subsection (d)(1) that mature or become due; and |
|
(2) any cost related to bonds described by Subsection |
|
(d)(1) that become due, including payments under related credit |
|
agreements. |
|
(f) Money in the revenue fund may not be used for the purpose |
|
of certification under Section 403.121, Government Code. |
|
Sec. 203.004. ISSUANCE OF REVENUE BONDS. (a) The board may |
|
issue revenue bonds for the purpose of providing money for the |
|
revenue fund. |
|
(b) The board may issue revenue bonds to refund revenue |
|
bonds or bonds and obligations issued or incurred in accordance |
|
with other provisions of law. |
|
(c) Revenue bonds issued under this chapter are special |
|
obligations of the board payable only from and secured by |
|
designated income and receipts of the revenue fund, or of one or |
|
more accounts in the revenue fund, including principal of and |
|
interest paid and to be paid on revenue fund assets or income from |
|
accounts created within the revenue fund by the board, as |
|
determined by the board. |
|
(d) Revenue bonds issued under this chapter do not |
|
constitute indebtedness of the state as prohibited by the |
|
constitution. |
|
(e) The board may require revenue fund participants to make |
|
charges, levy taxes, or otherwise provide for sufficient money to |
|
pay acquired obligations. |
|
(f) Revenue bonds issued under this chapter must be |
|
authorized by resolution of the board and must have the form and |
|
characteristics and bear the designations as the resolution |
|
provides. |
|
(g) Revenue bonds issued under this chapter may: |
|
(1) bear interest at the rate or rates payable |
|
annually or otherwise; |
|
(2) be dated; |
|
(3) mature at the time or times, serially, as term |
|
revenue bonds, or otherwise in not more than 50 years from their |
|
dates; |
|
(4) be callable before stated maturity on the terms |
|
and at the prices, be in the denominations, be in the form, either |
|
coupon or registered, carry registration privileges as to principal |
|
only or as to both principal and interest and as to successive |
|
exchange of coupon for registered bonds or one denomination for |
|
bonds of other denominations, and successive exchange of registered |
|
revenue bonds for coupon revenue bonds, be executed in the manner, |
|
and be payable at the place or places inside or outside the state, |
|
as provided by the resolution; |
|
(5) be issued in temporary or permanent form; |
|
(6) be issued in one or more installments and from time |
|
to time as required and sold at a price or prices and under terms |
|
determined by the board to be the most advantageous reasonably |
|
obtainable; and |
|
(7) be issued on a parity with and be secured in the |
|
manner as other revenue bonds authorized to be issued by this |
|
chapter or may be issued without parity and secured differently |
|
than other revenue bonds. |
|
(h) Section 17.955, Water Code, applies to revenue bonds |
|
issued under this chapter in the same manner as that section applies |
|
to water financial assistance bonds. |
|
(i) All proceedings relating to the issuance of revenue |
|
bonds issued under this chapter shall be submitted to the attorney |
|
general for examination. If the attorney general finds that the |
|
revenue bonds have been authorized in accordance with law, the |
|
attorney general shall approve the revenue bonds, and the revenue |
|
bonds shall be registered by the comptroller. After the approval |
|
and registration, the revenue bonds are incontestable in any court |
|
or other forum for any reason and are valid and binding obligations |
|
in accordance with their terms for all purposes. |
|
(j) The proceeds received from the sale of revenue bonds |
|
issued under this chapter may be deposited or invested in any manner |
|
and in such investments as may be specified in the resolution or |
|
other proceedings authorizing those obligations. Money in the |
|
revenue fund or accounts created by this chapter or created in the |
|
resolution or other proceedings authorizing the revenue bonds may |
|
be invested in any manner and in any obligations as may be specified |
|
in the resolution or other proceedings. |
|
Sec. 203.005. CHAPTER CUMULATIVE OF OTHER LAWS. (a) This |
|
chapter is cumulative of other laws on the subject, and the board |
|
may use provisions of other applicable laws in the issuance of bonds |
|
and other obligations, but this chapter is wholly sufficient |
|
authority for the issuance of bonds and other obligations and the |
|
performance of all other acts and procedures authorized by this |
|
chapter. |
|
(b) In addition to other authority granted by this chapter, |
|
the board may exercise the authority granted to the governing body |
|
of an issuer with regard to the issuance of obligations under |
|
Chapter 1371, Government Code. |
|
SECTION 3. Section 15.102(b), Water Code, is amended to |
|
read as follows: |
|
(b) The loan fund may also be used by the board to provide: |
|
(1) grants or loans for projects that include |
|
supplying water and wastewater services in economically distressed |
|
areas or nonborder colonias as provided by legislative |
|
appropriations, this chapter, and board rules, including projects |
|
involving retail distribution of those services; [and] |
|
(2) grants for: |
|
(A) projects for which federal grant funds are |
|
placed in the loan fund; |
|
(B) projects, on specific legislative |
|
appropriation for those projects; or |
|
(C) water conservation, desalination, brush |
|
control, weather modification, regionalization, and projects |
|
providing regional water quality enhancement services as defined by |
|
board rule, including regional conveyance systems; and |
|
(3) loans or grants to water utilities, as that term is |
|
defined by Section 201.001, Utilities Code, for projects that |
|
enhance the reliability and resiliency of those water utilities by |
|
weatherizing facilities. |
|
SECTION 4. Section 15.978, Water Code, is amended by adding |
|
Subsection (c-1) to read as follows: |
|
(c-1) Notwithstanding other provisions of this chapter, the |
|
board may sell to the state utilities reliability fund any bonds or |
|
obligations purchased with money in the state utilities reliability |
|
revenue fund and may apply the proceeds of the sale in the manner |
|
provided by Chapter 203, Utilities Code. |
|
SECTION 5. (a) The terms used in this section have the |
|
meanings assigned by Section 201.001, Utilities Code, as added by |
|
this Act. |
|
(b) The executive administrator of the Texas Water |
|
Development Board, in coordination with the Public Utility |
|
Commission of Texas, the Texas Commission on Environmental Quality, |
|
the Railroad Commission of Texas, and the independent organization |
|
certified under Section 39.151, Utilities Code, for the ERCOT power |
|
region, shall conduct a study regarding: |
|
(1) the need for financial assistance from the state |
|
to weatherize: |
|
(A) water utility facilities; |
|
(B) electric utility facilities; |
|
(C) natural gas utility facilities; and |
|
(D) broadband provider facilities; |
|
(2) the need for financial assistance from the state |
|
to provide adequate capacity during periods of high demand for: |
|
(A) electric utilities; and |
|
(B) natural gas utilities; and |
|
(3) the financing structures desirable to potential |
|
applicants for the categories listed in Subdivisions (1) and (2) of |
|
this subsection. |
|
(c) The costs of the report, including any external |
|
management or consulting services considered necessary, may be paid |
|
from the state utilities reliability fund. |
|
(d) The executive administrator shall submit the report to |
|
the State Utilities Reliability Fund Advisory Committee not later |
|
than December 31, 2022. |
|
(e) This section expires September 1, 2023. |
|
SECTION 6. As soon as practicable after the effective date |
|
of this Act, the lieutenant governor and the speaker of the house of |
|
representatives shall appoint the initial appointive members of the |
|
State Utilities Reliability Fund Advisory Committee as provided by |
|
Section 202.005, Utilities Code, as added by this Act. |
|
SECTION 7. (a) Not later than September 1, 2022, the State |
|
Utilities Reliability Fund Advisory Committee shall submit |
|
recommendations to the Texas Water Development Board on the rules |
|
to be adopted by the board under Section 202.006(a), Utilities |
|
Code, as added by this Act. |
|
(b) Not later than March 1, 2023, the board shall propose |
|
rules under Section 202.006, Utilities Code, as added by this Act. |
|
SECTION 8. The Texas Water Development Board shall post the |
|
information described by Section 202.007(b), Utilities Code, as |
|
added by this Act, on the board's Internet website not later than |
|
March 1, 2022. |
|
SECTION 9. This Act takes effect on the date on which the |
|
constitutional amendment proposed by the 87th Legislature, Regular |
|
Session, 2021, creating the state utilities reliability fund and |
|
the state utilities reliability revenue fund to provide financial |
|
support for projects that enhance the reliability and resiliency of |
|
water, electric, and natural gas utilities, broadband providers, |
|
and power generation resources in this state takes effect. If that |
|
amendment is not approved by the voters, this Act has no effect. |