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A BILL TO BE ENTITLED
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AN ACT
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relating to coordinating severe weather preparedness in critical |
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electric and natural gas infrastructure; authorizing an |
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administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that Winter Storm Uri |
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revealed the interconnectedness of the gas and power industries in |
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the face of severe weather and resolves to protect the citizens of |
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Texas from similar events in the future by requiring coordinated |
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enforcement across relevant regulatory bodies. |
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SECTION 2. Subchapter A, Chapter 186, Utilities Code, is |
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amended by adding Section 186.0071 to read as follows: |
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Sec. 186.0071. WINTER WEATHER EMERGENCY PREPAREDNESS AND |
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COORDINATION. (a) In this section: |
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(1) "Coordinating agencies" means the Public Utility |
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Commission of Texas, the Railroad Commission of Texas, and the |
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Texas Division of Emergency Management. |
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(2) "Coordinated entities" means public utilities, |
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power generation companies, ERCOT, and entities engaged in the |
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production, transport, gathering, storage, or shipping of natural |
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gas. |
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(3) "ERCOT" means the Electric Reliability Council of |
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Texas. |
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(b) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas shall each establish rules to require each |
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coordinated entity subject to their respective jurisdictions to |
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establish and submit a winter preparedness emergency operations |
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plan. The rules must require the winter preparedness emergency |
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operations plans to include: |
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(1) a plan that addresses severely cold weather; |
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(2) a plan that addresses any known critical failure |
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points, including any effects of weather design limits; |
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(3) a plan that addresses an emergency shortage of |
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water or other critical supplies; |
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(4) a plan for identification of potentially severe |
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weather events; |
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(5) a plan that addresses staffing during severe |
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weather events; |
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(6) curtailment priorities and procedures; |
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(7) priorities for recovery of operational capacity or |
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restoration of service, as applicable; |
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(8) identification of critical loads necessary to |
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maintain production of electricity or natural gas; |
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(9) a communications plan that describes the |
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procedures and threshold conditions for initiation of |
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communication about a potential severe weather event with the |
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coordinating agencies, other coordinated entities, ERCOT, the |
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public, the media, and customers; and |
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(10) an affidavit from an owner, partner, officer, |
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manager, or other official with responsibility for the entity's |
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operations affirming that all relevant operating personnel of the |
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entity are familiar with the contents of the emergency operations |
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plan and that such personnel are committed to following the plan |
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except to the extent deviations are appropriate under the |
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circumstances during the course of an emergency. |
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(c) The emergency operations plans may be combined or |
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coordinated with other preparedness reporting requirements, |
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including for other weather scenarios, natural disasters, |
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cybersecurity events, physical security events, and pandemics. |
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(d) The coordinating agencies shall jointly analyze |
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emergency operations plans developed by coordinated entities in |
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each even-numbered year and prepare a weather emergency |
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preparedness report on power generation and natural gas |
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weatherization preparedness. In preparing the report, the |
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coordinating agencies shall: |
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(1) review the emergency operations plans currently on |
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file with each of the coordinating agencies; |
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(2) analyze and determine the ability of the electric |
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grid and natural gas system to withstand extreme weather events in |
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the upcoming biennium; |
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(3) consider the anticipated weather patterns for the |
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upcoming biennium; and |
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(4) make recommendations on improving emergency |
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operations plans and procedures in order to ensure the continuity |
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of electric and natural gas service, including the identification |
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and definition of potentially appropriate weatherization and |
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emergency operations standards, which may differentiate between |
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existing and new facilities and may consider geography, suitable |
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alternatives, cost-effectiveness, and other practical constraints. |
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(e) A coordinating agency may require a coordinated entity |
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subject to its jurisdiction and this section to file an updated |
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emergency operations plan if the coordinating agency finds that an |
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emergency operations plan on file does not contain sufficient |
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information to determine whether the coordinated entity can provide |
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adequate services. |
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(f) Each coordinating agency may adopt rules relating to the |
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implementation of the report described by Subsection (d). |
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(g) The coordinating agencies shall submit the report |
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described by Subsection (d) to the lieutenant governor, the speaker |
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of the house of representatives, and the members of the legislature |
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not later than September 30 of each even-numbered year. |
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(h) The emergency operations plans submitted for the report |
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described by Subsection (d) are confidential under Chapters 418 and |
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552, Government Code, and other state or federal law. If portions |
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of a plan are directly referenced in the report described by |
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Subsection (d), such information shall be in a redacted form for |
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public inspection with the confidential portions removed. A |
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coordinated entity within the ERCOT power region shall provide the |
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entity's plan to ERCOT in its entirety, and ERCOT shall maintain the |
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confidentiality of the plan. |
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(i) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas shall each notify coordinated entities under |
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their respective jurisdictions of any potential deficiencies in |
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their emergency operations plans, including winter weatherization |
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and emergency operations standards recommended by the coordinating |
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agencies. Each entity shall respond to such notice in writing |
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within 30 days. |
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(j) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas may, after notice and opportunity for hearing, |
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impose an administrative penalty on entities subject to their |
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respective jurisdictions for failure to timely submit an emergency |
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operations plan or respond to a notice of potential deficiency. |
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SECTION 3. Section 186.007, Utilities Code, is repealed. |
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SECTION 4. Not later than January 1, 2022, the Public |
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Utility Commission of Texas and the Railroad Commission of Texas |
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shall adopt the rules required by Section 186.0071(b), Utilities |
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Code, as added by this Act. |
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SECTION 5. This Act takes effect September 1, 2021. |