By: Schwertner S.B. No. 3
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to preparing for, preventing, and responding to weather
  emergencies, power outages, and other disasters; increasing the
  amount of administrative and civil penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 411, Government Code, is amended by
  adding Subchapter K-1 to read as follows:
  SUBCHAPTER K-1. BLACKOUT ALERT
         Sec. 411.301.  DEFINITION. In this subchapter, "energy
  emergency alert" means an alert issued by an independent
  organization certified under Section 39.151, Utilities Code, that
  power supply on a regional electric network in this state may be
  inadequate to meet demand.
         Sec. 411.302.  BLACKOUT ALERT. With the cooperation of the
  Texas Department of Transportation, the office of the governor, and
  the Public Utility Commission of Texas, the department shall
  develop and implement a statewide alert to be activated when an
  energy emergency alert is issued.
         Sec. 411.303.  ADMINISTRATION. (a) The director is the
  statewide coordinator of the blackout alert.
         (b)  The director shall adopt rules and issue directives as
  necessary to ensure proper implementation of the blackout alert.
  The rules and directives must include the procedures to be used by
  the Public Utility Commission of Texas and the independent
  organization certified under Section 39.151, Utilities Code, to
  communicate with the director about the blackout alert.
         Sec. 411.304.  DEPARTMENT TO RECRUIT PARTICIPANTS. The
  department shall recruit public and commercial television and radio
  broadcasters, private commercial entities, state or local
  governmental entities, the public, and other appropriate persons to
  assist in developing and implementing the blackout alert system.
         Sec. 411.305.  STATE AGENCIES. (a) A state agency
  participating in the blackout alert system shall:
               (1)  cooperate with the department and assist in
  developing and implementing the alert system; and
               (2)  establish a plan for providing relevant
  information to its officers, investigators, or employees, as
  appropriate, once the blackout alert system has been activated.
         (b)  In addition to its duties as a state agency under
  Subsection (a), the Texas Department of Transportation shall
  establish a plan for providing relevant information to the public
  through an existing system of dynamic message signs located across
  the state.
         Sec. 411.306.  ACTIVATION OF BLACKOUT ALERT. (a) When the
  Public Utility Commission of Texas or an independent organization
  certified under Section 39.151, Utilities Code, notifies the
  department that an energy emergency alert has been issued or is
  about to be issued, the department shall confirm the accuracy of the
  information and, if confirmed, immediately issue an alert under
  this subchapter in accordance with department rules.
         (b)  In issuing the blackout alert, the department shall send
  the alert to designated media outlets in this state. Following
  receipt of the alert, participating radio stations and television
  stations and other participating media outlets may issue the alert
  at designated intervals.
         Sec. 411.307.  CONTENT OF BLACKOUT ALERT. The blackout
  alert must include a statement that electricity customers may
  experience a power outage.
         Sec. 411.308.  TERMINATION OF BLACKOUT ALERT. The director
  shall terminate any activation of the blackout alert with respect
  to a particular energy emergency alert not later than the date the
  department receives notice that the energy emergency alert has been
  canceled.
         Sec. 411.309.  LIMITATION ON PARTICIPATION BY TEXAS
  DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.305(b),
  the Texas Department of Transportation is not required to use any
  existing system of dynamic message signs in a statewide alert
  system created under this subchapter if that department receives
  notice from the United States Department of Transportation Federal
  Highway Administration that the use of the signs would result in the
  loss of federal highway funding or other punitive actions taken
  against this state due to noncompliance with federal laws,
  regulations, or policies.
         SECTION 2.  Section 418.043, Government Code, is amended to
  read as follows:
         Sec. 418.043.  OTHER POWERS AND DUTIES. The division shall:
               (1)  determine requirements of the state and its
  political subdivisions for food, clothing, and other necessities in
  event of a disaster;
               (2)  procure and position supplies, medicines,
  materials, and equipment;
               (3)  adopt standards and requirements for local and
  interjurisdictional emergency management plans;
               (4)  periodically review local and interjurisdictional
  emergency management plans;
               (5)  coordinate deployment of mobile support units;
               (6)  establish and operate training programs and
  programs of public information or assist political subdivisions and
  emergency management agencies to establish and operate the
  programs;
               (7)  make surveys of public and private industries,
  resources, and facilities in the state that are necessary to carry
  out the purposes of this chapter;
               (8)  plan and make arrangements for the availability
  and use of any private facilities, services, and property and
  provide for payment for use under terms and conditions agreed on if
  the facilities are used and payment is necessary;
               (9)  establish a register of persons with types of
  training and skills important in disaster mitigation,
  preparedness, response, and recovery;
               (10)  establish a register of mobile and construction
  equipment and temporary housing available for use in a disaster;
               (11)  assist political subdivisions in developing
  plans for the humane evacuation, transport, and temporary
  sheltering of service animals and household pets in a disaster;
               (12)  prepare, for issuance by the governor, executive
  orders and regulations necessary or appropriate in coping with
  disasters;
               (13)  cooperate with the federal government and any
  public or private agency or entity in achieving any purpose of this
  chapter and in implementing programs for disaster mitigation,
  preparation, response, and recovery;
               (14)  develop a plan to raise public awareness and
  expand the capability of the information and referral network under
  Section 531.0312;
               (15)  improve the integration of volunteer groups,
  including faith-based organizations, into emergency management
  plans;
               (16)  cooperate with the Federal Emergency Management
  Agency to create uniform guidelines for acceptable home repairs
  following disasters and promote public awareness of the guidelines;
               (17)  cooperate with state agencies to:
                     (A)  encourage the public to participate in
  volunteer emergency response teams and organizations that respond
  to disasters; and
                     (B)  provide information on those programs in
  state disaster preparedness and educational materials and on
  Internet websites;
               (17-a)  create a page on the division's Internet
  website for each state of disaster declared under Section 418.014
  to provide information to the public about that disaster;
               (18)  establish a liability awareness program for
  volunteers, including medical professionals;
               (19)  define "individuals with special needs" in the
  context of a disaster;
               (20)  establish and operate, subject to the
  availability of funds, a search and rescue task force in each field
  response region established by the division to assist in search,
  rescue, and recovery efforts before, during, and after a natural or
  man-made disaster; and
               (21)  do other things necessary, incidental, or
  appropriate for the implementation of this chapter.
         SECTION 3.  Section 418.048, Government Code, is amended to
  read as follows:
         Sec. 418.048.  MONITORING WEATHER. (a) The division shall
  keep continuously apprised of weather conditions that present
  danger of climatic activity, such as precipitation, severe enough
  to constitute a disaster.
         (b)  The division shall:
               (1)  establish a system to categorize winter storms
  according to predicted severity; and
               (2)  create a list of suggested actions for state
  agencies to take to prepare for storms, organized by winter storm
  category.
         SECTION 4.  Chapter 418, Government Code, is amended by
  adding Subchapter J to read as follows:
  SUBCHAPTER J. TEXAS ENERGY RELIABILITY COUNCIL
         Sec. 418.301.  DEFINITIONS. In this subchapter:
               (1)  "Chief" means the division's chief.
               (2)  "Council" means the Texas Energy Reliability
  Council.
         Sec. 418.302.  COUNCIL ESTABLISHED. The Texas Energy
  Reliability Council is established to ensure that high priority
  human needs are met in the event of necessary curtailment of natural
  gas distribution or supplies.
         Sec. 418.303.  MEMBERSHIP. The council is composed of
  members as follows:
               (1)  the chairman of the Railroad Commission of Texas;
               (2)  the presiding officer of the Public Utility
  Commission of Texas;
               (3)  the presiding officer of the Texas Commission on
  Environmental Quality;
               (4)  the chair of the Texas Transportation Commission;
               (5)  a person to represent the independent organization
  certified under Section 39.151, Utilities Code, for the ERCOT power
  region, appointed by the governor;
               (6)  the chief;
               (7)  five persons to represent oil and gas well
  operators or oil or gas pipeline operators, appointed by the
  governor;
               (8)  five persons to represent the electric industry,
  appointed by the governor; and
               (9)  five persons to represent industrial concerns,
  appointed by the governor.
         Sec. 418.304.  OFFICERS. (a) The chief is designated as the
  interim presiding officer for purposes of calling and conducting
  the initial meeting of the council.
         (b)  The council:
               (1)  at its initial meeting, shall select a presiding
  officer from among its members for the purpose of calling and
  conducting meetings; and
               (2)  may select an assistant presiding officer and
  secretary from among its members.
         Sec. 418.305.  COMPENSATION; REIMBURSEMENT. A member of the
  council is not entitled to compensation or reimbursement of
  expenses for service on the council.
         Sec. 418.306.  MEETINGS. (a) After its initial meeting, the
  task force shall meet at least twice each year at a time and place
  determined by the presiding officer.
         (b)  The council may meet at other times the council
  considers appropriate. The presiding officer may call a meeting on
  the officer's own motion.
         (c)  The council may meet by teleconference.
         Sec. 418.307.  ADMINISTRATIVE SUPPORT. The division shall
  provide administrative support to the council.
         Sec. 418.308.  DUTIES OF COUNCIL. The council shall foster
  communication and planning to ensure preparedness for natural gas
  availability and delivery to residences, hospitals, schools,
  churches, and other human needs customers during a period of
  necessary curtailment of natural gas distribution or supplies.
         SECTION 5.  Subchapter C, Chapter 86, Natural Resources
  Code, is amended by adding Section 86.044 to read as follows:
         Sec. 86.044.  WEATHER EMERGENCY PREPAREDNESS. (a) The
  commission by rule shall require an operator of a gas well to
  implement measures to prepare the well to operate during a weather
  emergency.
         (b)  The commission by rule shall require an operator of a
  gas well that experiences repeated or major weather-related forced
  interruptions of production to:
               (1)  contract with a person who is not an employee of
  the provider to assess the operator's weatherization plans,
  procedures, and operations; and
               (2)  submit the assessment to the commission.
         (c)  If the commission determines that a person has violated
  a rule adopted under this section, the commission shall notify the
  attorney general of the violation. The attorney general shall
  initiate a suit to recover a penalty for the violation in the manner
  provided by Subchapter G.
         SECTION 6.  Section 86.222, Natural Resources Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), a person who violates
  a provision of a rule adopted under Section 86.044 is liable for a
  penalty of not more than $1,000,000 for each offense.
         SECTION 7.  Section 15.023, Utilities Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsections (b) and (d), the penalty
  for a violation of a provision of Subtitle B may be in an amount not
  to exceed $1,000,000 for a violation. Each day a violation
  continues or occurs is a separate violation for purposes of
  imposing a penalty.
         SECTION 8.  Section 17.003, Utilities Code, is amended by
  adding Subsection (d-1) to read as follows:
         (d-1)  An electric utility providing transmission service
  for a retail electric provider, as defined by Section 31.002, shall
  collaborate with the retail electric provider to ensure that
  information about the following matters is regularly provided to
  the retail electric provider's retail customers together with bills
  sent to the customers:
               (1)  the electric utility's procedures for implementing
  rolling blackouts;
               (2)  the types of customers who may be considered
  critical customers or critical load according to commission rules
  adopted under Section 38.075;
               (3)  the procedure for a customer to apply to be
  considered a critical customer or critical load according to
  commission rules adopted under Section 38.075; and
               (4)  reducing electricity use at times when rolling
  blackouts may be implemented.
         SECTION 9.  Section 17.005, Utilities Code, is amended to
  read as follows:
         Sec. 17.005.  PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED
  UTILITIES. (a) A municipally owned utility may not be deemed to be
  a "service provider" or "billing agent" for purposes of Sections
  17.156(b) and (e).
         (b)  The governing body of a municipally owned utility shall
  adopt, implement, and enforce rules that shall have the effect of
  accomplishing the objectives set out in Sections 17.004(a) and (b)
  and 17.102, as to the municipally owned utility within its
  certificated service area.
         (c)  The governing body of a municipally owned utility or its
  designee shall perform the dispute resolution function provided for
  by Section 17.157 for disputes arising from services provided by
  the municipally owned utility to electric customers served within
  the municipally owned utility's certificated service area.
         (d)  With respect to electric customers served by a
  municipally owned utility outside its certificated service area or
  otherwise served through others' distribution facilities, after
  retail competition begins as authorized by the legislature, the
  provisions of this chapter as administered by the commission apply.
         (e)  Nothing in this chapter shall be deemed to apply to a
  wholesale customer of a municipally owned utility.
         (f)  A municipally owned utility shall regularly provide
  with bills sent to retail customers of the utility information
  about:
               (1)  the utility's procedure for implementing rolling
  blackouts;
               (2)  the types of customers who may be considered
  critical customers or critical load according to commission rules
  adopted under Section 38.075;
               (3)  the procedure for a customer to apply to be
  considered a critical customer or critical load according to
  commission rules adopted under Section 38.075; and
               (4)  reducing electricity use at times when rolling
  blackouts may be implemented.
         SECTION 10.  Section 17.006, Utilities Code, is amended to
  read as follows:
         Sec. 17.006.  PROTECTIONS FOR CUSTOMERS OF ELECTRIC
  COOPERATIVES. (a) An electric cooperative shall not be deemed to
  be a "service provider" or "billing agent" for purposes of Sections
  17.156(b) and (e).
         (b)  The electric cooperative shall adopt, implement, and
  enforce rules that shall have the effect of accomplishing the
  objectives set out in Sections 17.004(a) and (b) and 17.102.
         (c)  The board of directors of the electric cooperative or
  its designee shall perform the dispute resolution function provided
  for by Section 17.157 for electric customers served by the electric
  cooperative within its certificated service area.
         (d)  With respect to electric customers served by an electric
  cooperative outside its certificated service area or otherwise
  served through others' distribution facilities, after the
  legislature authorizes retail competition, the provisions of this
  chapter as administered by the commission shall apply.
         (e)  Nothing in this chapter shall be deemed to apply to a
  wholesale customer of an electric cooperative.
         (f)  An electric cooperative shall regularly provide with
  bills sent to retail customers of the cooperative information
  about:
               (1)  the cooperative's procedure for implementing
  rolling blackouts;
               (2)  the types of customers who may be considered
  critical customers or critical load according to commission rules
  adopted under Section 38.075;
               (3)  the procedure for a customer to apply to be
  considered a critical customer or critical load according to
  commission rules adopted under Section 38.075; and
               (4)  reducing electricity use at times when rolling
  blackouts may be implemented.
         SECTION 11.  The heading to Chapter 35, Utilities Code, is
  amended to read as follows:
  CHAPTER 35. [ALTERNATIVE] ENERGY PROVIDERS
         SECTION 12.  Subchapter A, Chapter 35, Utilities Code, is
  amended by adding Section 35.0021 to read as follows:
         Sec. 35.0021.  WEATHER EMERGENCY PREPAREDNESS. (a) This
  section applies only to a municipally owned utility, electric
  cooperative, qualifying facility, power generation company, or
  exempt wholesale generator, that provides generation service in the
  ERCOT power region.
         (b)  The commission by rule shall require each provider of
  generation service described by Subsection (a) to implement
  measures to prepare the provider's generation assets to provide
  adequate electric generation service during a winter weather
  emergency according to reliability standards adopted by the
  commission.
         (c)  The independent organization certified under Section
  39.151 for the ERCOT power region shall:
               (1)  inspect generation assets in the ERCOT power
  region for compliance with the reliability standards; and
               (2)  report to the commission any violation of a rule
  adopted under Subsection (b) that the independent organization
  discovers by an inspection conducted under this subsection.
         (d)  The commission by rule shall require a provider of
  generation service described by Subsection (a) that experiences
  repeated or major weather-related forced interruptions of service
  to:
               (1)  contract with a person who is not an employee of
  the provider to assess the provider's weatherization plans,
  procedures, and operations; and
               (2)  submit the assessment to the commission and the
  independent organization certified under Section 39.151 for the
  ERCOT power region.
         (e)  A provider of generation service described by
  Subsection (a) must obtain the approval of the commission and the
  independent organization certified under Section 39.151 for the
  ERCOT power region before the provider conducts maintenance during
  a month in which, historically, as determined by the commission,
  electricity use has reached a summer or winter peak.
         (f)  The commission shall impose an administrative penalty
  on a person who violates a rule adopted under this section in the
  manner provided by Chapter 15.
         SECTION 13.  Section 36.205(d), Utilities Code, is amended
  to read as follows:
         (d)  The commission may provide a mechanism to allow an
  electric utility that has a noncontiguous geographical service area
  and that purchases power for resale for that noncontiguous service
  area from electric utilities that are not members of the
  independent organization certified under Section 39.151 for the
  ERCOT power region [the Electric Reliability Council of Texas] to
  recover purchased power costs for the area in a manner that reflects
  the purchased power cost for that specific geographical
  noncontiguous area. The commission may not require an electric
  cooperative corporation to use the mechanism provided under this
  section unless the electric cooperative corporation requests its
  use.
         SECTION 14.  Section 36.403(g), Utilities Code, is amended
  to read as follows:
         (g)  Notwithstanding Section 39.303(c), system restoration
  costs shall be functionalized and allocated to customers in the
  same manner as the corresponding facilities and related expenses
  are functionalized and allocated in the electric utility's current
  base rates. For an electric utility operating within ERCOT [the
  Electric Reliability Council of Texas], system restoration costs
  that are properly includable in the transmission cost of service
  mechanism adopted under Section 35.004 and associated deferred
  costs not included under Section 35.004 shall be recovered under
  the method of pricing provided for in that section and commission
  rules promulgated under that section; provided, however, that an
  electric utility operating under a rate freeze or other limitation
  on its ability to pass through wholesale costs to its customers may
  defer such costs and accrue carrying costs at its weighted average
  cost of capital as last approved by the commission in a general rate
  proceeding until such time as the freeze or limitation expires.
         SECTION 15.  Subchapter D, Chapter 38, Utilities Code, is
  amended by adding Sections 38.074 and 38.075 to read as follows:
         Sec. 38.074.  WINTER WEATHER EMERGENCY PREPAREDNESS. (a)
  The commission by rule shall require each electric cooperative,
  municipally owned utility, and transmission and distribution
  utility providing transmission service in the ERCOT power region to
  implement measures to prepare the cooperative's or utility's
  facilities to maintain service quality and reliability during a
  winter weather emergency according to standards adopted by the
  commission.
         (b)  The commission shall impose an administrative penalty
  on a person who violates a rule adopted under this section in the
  manner provided by Chapter 15.
         Sec. 38.075.  LOAD SHEDDING DURING ROLLING BLACKOUT. (a)
  The commission by rule shall adopt a system to allocate load
  shedding among electric cooperatives, municipally owned utilities,
  and transmission and distribution utilities providing transmission
  service in the ERCOT power region during a rolling blackout
  initiated by an independent organization certified under Section
  39.151 for the region.
         (b)  The system must provide for allocations for electric
  cooperatives, municipally owned utilities, and transmission and
  distribution utilities in different seasons based on typical
  seasonal usage in the geographic area served by the electric
  cooperative, municipally owned utility, or transmission and
  distribution utility.
         (c)  The commission by rule shall:
               (1)  categorize types of critical load that may be
  excluded from participation in load shedding; and
               (2)  require electric cooperatives, municipally owned
  utilities, and transmission and distribution utilities providing
  transmission service in the ERCOT power region to submit to the
  commission and the independent organization certified under
  Section 39.151 for the region:
                     (A)  customers or circuits the cooperative or
  utility has designated as critical load; and
                     (B)  a plan for participating in load shedding in
  response to a rolling blackout.
         (d)  The commission by rule shall require electric
  cooperatives, municipally owned utilities, and transmission and
  distribution utilities providing transmission service in the ERCOT
  power region to:
               (1)  maintain lists of customers willing to voluntarily
  participate in load shedding; and
               (2)  coordinate with municipalities, businesses, and
  customers that consume large amounts of electricity to encourage
  voluntary load shedding.
         SECTION 16.  Section 39.051(c), Utilities Code, is amended
  to read as follows:
         (c)  An electric utility may accomplish the separation
  required by Subsection (b) either through the creation of separate
  nonaffiliated companies or separate affiliated companies owned by a
  common holding company or through the sale of assets to a third
  party. An electric utility may create separate transmission and
  distribution utilities. Notwithstanding any other provision of
  this chapter, an electric utility that does not have stranded costs
  described by Section 39.254 and that on September 1, 2005, has not
  finalized unbundling pursuant to a commission order approving an
  unbundling plan may also meet the requirements of Subsection (b)
  for generation facilities existing on September 1, 2005, in ERCOT
  [the Electric Reliability Council of Texas] if it meets and
  maintains compliance with the following requirements:
               (1)  the electric utility has no more than 400
  megawatts of Texas jurisdictional capacity from generating units
  within ERCOT [the Electric Reliability Council of Texas] that have
  not been mothballed or retired;
               (2)  the electric utility has a contract or contracts
  with separate nonaffiliated companies or separate affiliated
  companies for the sale of all of the output from its generating
  units that have not been mothballed or retired with a contract term
  that is no shorter than 20 years or the life of the generating
  units, whichever is shorter; and
               (3)  the electric utility has a separate division
  within the electric utility for its generation business activities.
         SECTION 17.  Subchapter C, Chapter 39, Utilities Code, is
  amended by adding Section 39.1026 to read as follows:
         Sec. 39.1026.  VARIABLE RATE PLANS FOR ELECTRIC SERVICE
  PROHIBITED. The commission by rule shall require a retail electric
  provider to offer service under a fixed-price contract. A retail
  electric provider may not offer a contract for service at a variable
  rate.
         SECTION 18.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Sections 39.159 and 39.160 to read as follows:
         Sec. 39.159.  MARKET PROCEDURES FOR CERTAIN GENERATORS. The
  commission by rule shall require the operator of a wind power
  generating unit or solar power generating unit providing output in
  the ERCOT power region to:
               (1)  commit to the independent organization certified
  under Section 39.151 for the ERCOT power region to provide a
  specific load; and
               (2)  if the operator cannot meet the load commitment
  using the generating unit, meet the load commitment using electric
  energy storage or through a purchase from another generating unit.
         Sec. 39.160.  WHOLESALE PRICING PROCEDURES. (a) The
  commission by rule shall establish an emergency system-wide offer
  cap program for the wholesale electric market.
         (b)  If the program includes more than one system-wide offer
  cap:
               (1)  the program may not authorize the high system-wide
  offer cap to be in effect for a continuous period of more than one
  hour;
               (2)  the program may only allow for a low system-wide
  offer cap that cannot exceed the high system-wide offer cap; and
               (3)  the price of ancillary services may not exceed the
  high system-wide offer cap.
         SECTION 19.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.9165 to read as follows:
         Sec. 39.9165.  DISTRIBUTED GENERATION REPORTING. (a) In
  this section, "distributed generation" is an electrical generating
  facility that:
               (1)  is located at a customer's point of delivery;
               (2)  has a capacity of not more than 10 megawatts;
               (3)  is connected at a voltage less than or equal to 60
  kilovolts; and
               (4)  may be connected in parallel operation to the
  utility system.
         (b)  An independent organization certified under Section
  39.151 shall require an owner or operator of distributed generation
  to report to the organization the type of generation owned or
  operated, including whether the generation is powered by a
  renewable source or uses battery storage.
         (c)  This section does not apply to distributed generation
  located on residential property.
         SECTION 20.  Section 105.023, Utilities Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsection (b), a civil penalty under
  this section shall be in an amount of not less than $1,000 and not
  more than $1,000,000 for each violation of Section 104.258(c). 
         SECTION 21.  Section 121.2015, Utilities Code, is amended by
  amending Subsection (a) and adding Subsections (d) and (e) to read
  as follows:
         (a)  The railroad commission shall adopt rules regarding:
               (1)  public education and awareness relating to gas
  pipeline facilities; [and]
               (2)  community liaison for responding to an emergency
  relating to a gas pipeline facility; and
               (3)  measures gas pipeline facility operators must
  implement to prepare gas pipeline facilities to maintain service
  quality and reliability during extreme weather conditions.
         (d)  The commission by rule shall require a gas pipeline
  facility operator that experiences repeated or major
  weather-related forced interruptions of service to:
               (1)  contract with a person who is not an employee of
  the provider to assess the operator's weatherization plans,
  procedures, and operations; and
               (2)  submit the assessment to the commission.
         (e)  The commission shall assess an administrative penalty
  against a person who violates a rule adopted under Subsection
  (a)(3) in the manner provided by Subchapter E.
         SECTION 22.  Section 121.206, Utilities Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  Notwithstanding Subsection (b), the penalty for each
  violation may not exceed $1,000,000 for a violation of a rule
  adopted under Section 121.2015(a)(3). Each day a violation
  continues may be considered a separate violation for the purpose of
  penalty assessment.
         SECTION 23.  Subchapter E, Chapter 13, Water Code, is
  amended by adding Section 13.151 to read as follows:
         Sec. 13.151.  BILLING FOR SERVICES PROVIDED DURING EXTREME
  WEATHER EMERGENCY. A retail public utility that is required to
  possess a certificate of public convenience and necessity or a
  district and affected county that furnishes retail water or sewer
  utility service, shall defer collection of the full payment of
  bills that are due during an extreme weather emergency until after
  the emergency is over and shall work with customers to establish a
  pay schedule for deferred bills.
         SECTION 24.  Section 13.414, Water Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), a retail public
  utility or affiliated interest that violates Section 13.151 is
  subject to a civil penalty of not less than $100 nor more than
  $1,000,000 for each violation.
         SECTION 25.  Section 13.4151, Water Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), the penalty for a
  violation of Section 13.151 may be in an amount not to exceed
  $1,000,000 a day. Each day a violation continues may be considered a
  separate violation.
         SECTION 26.  (a) The State Energy Plan Advisory Committee is
  composed of 12 members. The governor, lieutenant governor, and
  speaker of the house of representatives each shall appoint four
  members to the advisory committee.
         (b)  Not later than September 1, 2022, the State Energy Plan
  Advisory Committee shall prepare a comprehensive state energy plan.
  The plan must:
               (1)  evaluate barriers in the electricity and natural
  gas markets that prevent sound economic decisions;
               (2)  evaluate methods to improve the reliability,
  stability, and affordability of electric service in this state; and
               (3)  provide recommendations for removing the barriers
  described by Subdivision (1) and using the methods described by
  Subdivision (2).
         (c)  The state energy plan prepared under this section must
  be submitted to the legislature not later than September 1, 2022.
         SECTION 27.  The Public Utility Commission of Texas and the
  independent organization certified under Section 39.151, Utilities
  Code, shall review statutes, rules, protocols, and bylaws that
  apply to conflicts of interest for commissioners and for members of
  the governing body of the independent organization and submit to
  the legislature a report on the effects the statutes, rules,
  protocols, and bylaws have on the ability of the commission and the
  independent organization to fulfill their duties.
         SECTION 28.  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, 2021.