87R21983 KJE-D
 
  By: Zwiener H.B. No. 2275
 
  Substitute the following for H.B. No. 2275:
 
  By:  Paddie C.S.H.B. No. 2275
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation and uses of the critical infrastructure
  resiliency fund and the eligibility of certain water-related
  projects for state financial assistance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 418, Government Code, is amended by
  adding Subchapter J to read as follows:
  SUBCHAPTER J.  CRITICAL INFRASTRUCTURE RESILIENCY FUND
         Sec. 418.301.  DEFINITION. In this subchapter, "fund" means
  the critical infrastructure resiliency fund.
         Sec. 418.302.  CRITICAL INFRASTRUCTURE RESILIENCY FUND. (a)
  The critical infrastructure resiliency fund is a special fund in
  the state treasury outside the general revenue fund.
         (b)  The fund may be used by the division, without further
  legislative appropriation, only as provided by this subchapter.
         (c)  The fund consists of:
               (1)  legislative appropriations to the division for a
  purpose of the fund;
               (2)  any revenue that by law is dedicated for deposit to
  the fund;
               (3)  interest or other earnings on money credited to or
  allocable to the fund;
               (4)  money from gifts, grants, or donations to the
  fund; and
               (5)  money under the division's control that the
  division designates for deposit to the fund.
         Sec. 418.303.  USE OF FUND. The division may use the fund
  only to:
               (1)  make a grant to an eligible entity under this
  subchapter; and
               (2)  pay the necessary and reasonable expenses of
  administering the fund.
         Sec. 418.304.  ELECTRIC GRID IMPROVEMENT ACCOUNT. (a) The
  electric grid improvement account is an account in the fund.
         (b)  The account consists of:
               (1)  legislative appropriations to the division for a
  purpose of the account; and
               (2)  money from gifts, grants, or donations to the
  division for a purpose of the account.
         (c)  Subject to Subsection (d), the division may use the
  account only to make matching grants to eligible entities for
  hardening and weatherizing the electric grid, including:
               (1)  installing advanced meter infrastructure;
               (2)  improving load shed capabilities;
               (3)  incentivizing customers to engage in distributed
  energy production and energy efficiency measures;
               (4)  installing electric energy storage; and
               (5)  weatherizing facilities.
         (d)  The division may not use the account to make grants for
  routine vegetation management.
         (e)  An entity is eligible to receive a matching grant under
  this section only if the entity is:
               (1)  a municipally owned electric utility;
               (2)  an electric cooperative;
               (3)  a transmission and distribution utility, as
  defined by Section 31.002, Utilities Code; or
               (4)  a vertically integrated utility.
         (f)  In making grants under this section, the division:
               (1)  shall consider:
                     (A)  the expected number of individuals who will
  benefit from the project;
                     (B)  existing infrastructure and overall need for
  the project;
                     (C)  the potential benefit of the project to:
                           (i)  low-income communities; and
                           (ii)  areas in disparate parts of the state;
                     (D)  the equitable distribution of grants
  throughout the state;
                     (E)  the existence of matching federal funds for
  the project and whether available federal funds have been
  exhausted; and
                     (F)  the total impact of the project on the
  resiliency of the state's electric grid; and
               (2)  may consult with the Public Utility Commission of
  Texas.
         (g)  The division shall condition each grant awarded under
  this section on the grant recipient providing funds from non-state
  sources in a total amount at least equal to 10 percent of the grant
  amount, with at least five percent of the recipient's match coming
  from local sources.
         Sec. 418.305.  HOSPITAL INFRASTRUCTURE RESILIENCY ACCOUNT.
  (a) The hospital infrastructure resiliency account is an account
  in the fund.
         (b)  The account consists of:
               (1)  legislative appropriations to the division for a
  purpose of the account; and
               (2)  money from gifts, grants, or donations to the
  division for a purpose of the account.
         (c)  The division may use the account only to make matching
  grants to eligible entities for purchasing reserve power supply,
  such as on-site generation and energy storage systems, necessary to
  sustain critical medical care.
         (d)  An entity is eligible to receive a matching grant under
  this section only if the entity is:
               (1)  a hospital owned by a municipality; or
               (2)  a private for-profit or nonprofit hospital.
         (e)  In making grants under this section, the division:
               (1)  shall consider:
                     (A)  the expected number of individuals who will
  benefit from the project;
                     (B)  existing infrastructure and overall need for
  the project;
                     (C)  the potential benefit of the project to:
                           (i)  low-income communities; and
                           (ii)  areas in disparate parts of the state;
                     (D)  the equitable distribution of grants
  throughout the state;
                     (E)  the existence of matching federal funds for
  the project and whether available federal funds have been
  exhausted; and
                     (F)  the total impact of the project on the
  state's resiliency; and
               (2)  may consult with the Health and Human Services
  Commission.
         (f)  The division shall condition each grant awarded under
  this section on the grant recipient providing funds from non-state
  sources in a total amount at least equal to 10 percent of the grant
  amount, with at least five percent of the recipient's match coming
  from local sources.
         Sec. 418.306.  NURSING HOME RESILIENCY ACCOUNT. (a) The
  nursing home resiliency account is an account in the fund.
         (b)  The account consists of:
               (1)  legislative appropriations to the division for a
  purpose of the account; and
               (2)  money from gifts, grants, or donations to the
  division for a purpose of the account.
         (c)  The division may use the account only to make matching
  grants to institutions licensed under Chapter 242, Health and
  Safety Code, for purchasing reserve power supply, such as on-site
  generation and energy storage systems, necessary to sustain
  critical medical care.
         (d)  In making grants under this section, the division may
  consult with the Health and Human Services Commission.
         (e)  If the division receives more qualifying applications
  for a grant under this section than the division has available money
  to fully fund, the division may reduce the amount of each grant made
  under this section in proportion to the number of individuals
  served by the grant applicant.
         (f)  The division shall condition each grant awarded under
  this section on the grant recipient providing funds from non-state
  sources in a total amount at least equal to 10 percent of the grant
  amount, with at least five percent of the recipient's match coming
  from local sources.
         Sec. 418.307.  DIALYSIS INFRASTRUCTURE ACCOUNT. (a)  The
  dialysis infrastructure account is an account in the fund.
         (b)  The account consists of:
               (1)  legislative appropriations to the division for a
  purpose of the account; and
               (2)  money from gifts, grants, or donations to the
  division for a purpose of the account.
         (c)  The division may use the account only to make matching
  grants to end stage renal disease facilities, as defined by Section
  251.001, Health and Safety Code, for purchasing reserve power
  supply, such as on-site generation and energy storage systems,
  necessary to sustain critical medical care.
         (d)  In making grants under this section, the division:
               (1)  shall consider:
                     (A)  the expected number of individuals who will
  benefit from the project;
                     (B)  existing infrastructure and overall need for
  the project;
                     (C)  the potential benefit of the project to:
                           (i)  low-income communities; and
                           (ii)  areas in disparate parts of the state;
                     (D)  the equitable distribution of grants
  throughout the state;
                     (E)  the existence of matching federal funds for
  the project and whether available federal funds have been
  exhausted; and
                     (F)  the total impact of the project on the
  state's resiliency; and
               (2)  may consult with the Health and Human Services
  Commission.
         (e)  If the division receives more qualifying applications
  for a grant under this section than the division has available money
  to fully fund, the division may reduce the amount of each grant made
  under this section in proportion to the number of individuals
  served by the grant applicant.
         (f)  The division shall condition each grant awarded under
  this section on the grant recipient providing funds from non-state
  sources in a total amount at least equal to 10 percent of the grant
  amount, with at least five percent of the recipient's match coming
  from local sources.
         Sec. 418.308.  RULES. The division shall adopt rules
  necessary to carry out this subchapter, including rules:
               (1)  that establish procedures for an application for
  and the award of financial assistance;
               (2)  for the investment of money; and
               (3)  for the administration of the fund.
         SECTION 2.  Section 15.001(6), Water Code, is amended to
  read as follows:
               (6)  "Project" means:
                     (A)  any undertaking or work, including planning
  activities and work to obtain regulatory authority at the local,
  state, and federal level, to conserve, convey, and develop water
  resources in the state, to provide for the maintenance and
  enhancement of the quality of the water of the state, to provide
  nonstructural and structural flood control, drainage, subsidence
  control, recharge, chloride control, brush control, precipitation
  enhancement, and desalinization, to provide for the acquisition of
  water rights and the repair of unsafe dams, to provide for the
  weatherization of water and wastewater facilities, and to carry out
  other purposes defined by board rules;
                     (B)  any undertaking or work outside the state to
  provide for the maintenance and enhancement of the quality of water
  by eliminating saline inflow through well pumping and deep well
  injection of brine; or
                     (C)  any undertaking or work by Texas political
  subdivisions or institutions of higher education to conserve,
  convey, and develop water resources in areas outside Texas or to
  provide for the maintenance and enhancement of the quality of the
  water in areas adjoining Texas, if such undertaking or work will
  result in water being available for use in or for the benefit of
  Texas or will maintain and enhance the quality of water in Texas.
         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)  grants for projects to harden and weatherize water
  and wastewater systems in the state, including:
                     (A)  covering wells;
                     (B)  purchasing reserve power supply, such as
  on-site generation and energy storage systems.
                     (C)  building connectivity to neighboring water
  suppliers.
         SECTION 4.  Section 15.105, Water Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  Notwithstanding Subsection (a), in passing on an
  application for a grant described by Section 15.102(b)(3), the
  board shall:
               (1)  consider:
                     (A)  the expected number of individuals who will
  benefit from the project;
                     (B)  existing infrastructure and overall need for
  the project;
                     (C)  the potential benefit of the project to:
                           (i)  low-income communities; and
                           (ii)  areas in disparate parts of the state;
                     (D)  the equitable distribution of grants
  throughout the state;
                     (E)  the existence of matching federal funds for
  the project and whether available federal funds have been
  exhausted; and
                     (F)  the total impact of the project on the
  state's resiliency; and
               (2)  consult with the Texas Division of Emergency
  Management.
         SECTION 5.  Section 15.107, Water Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  Notwithstanding any other provision of this section,
  the board shall condition each grant awarded under Section
  15.102(b)(3) on the grant recipient providing funds from non-state
  sources in a total amount at least equal to 10 percent of the grant
  amount, with at least five percent of the recipient's match coming
  from local sources.
         SECTION 6.  (a)  Except as provided by Subsection (b) of this
  section, this Act takes effect January 1, 2022.
         (b)  Section 1 of this Act takes effect January 1, 2022, but
  only if the constitutional amendment proposed by the 87th
  Legislature, Regular Session, 2021, providing for the creation of
  the critical infrastructure resiliency fund to assist in the
  financing of certain infrastructure projects is approved by the
  voters.  If that amendment is not approved by the voters, that
  section has no effect.