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A BILL TO BE ENTITLED
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AN ACT
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relating to extreme weather preparedness of critical electric and |
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natural gas infrastructure; authorizing administrative penalties. |
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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 extreme weather and resolves to protect the citizens of |
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this state from similar events by requiring coordinated enforcement |
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by relevant regulatory bodies. |
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SECTION 2. Subchapter C, Chapter 86, Natural Resources |
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Code, is amended by adding Section 86.044 to read as follows: |
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Sec. 86.044. EXTREME WEATHER EMERGENCY PREPAREDNESS. (a) |
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In this section, "extreme weather emergency" means a period when: |
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(1) the previous day's highest temperature did not |
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exceed 10 degrees Fahrenheit and the temperature is predicted to |
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remain at or below that level for the next 24 hours according to the |
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nearest National Weather Service reports; or |
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(2) the National Weather Service issues a heat |
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advisory for any county in the relevant service territory, or when |
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such an advisory has been issued on any one of the previous two |
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calendar days. |
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(b) The commission by rule shall require an operator of a |
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gas well to implement measures to prepare the well to operate during |
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an extreme weather emergency. |
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SECTION 3. Section 121.2015(a), Utilities Code, is amended |
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to read as follows: |
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(a) The railroad commission shall adopt rules regarding: |
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(1) public education and awareness relating to gas |
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pipeline facilities; [and] |
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(2) community liaison for responding to an emergency |
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relating to a gas pipeline facility; and |
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(3) measures gas pipeline facility operators must |
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implement to prepare gas pipeline facilities to maintain service |
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quality and reliability during an extreme weather emergency, as |
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defined by Section 86.044, Natural Resources Code. |
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SECTION 4. Subchapter A, Chapter 186, Utilities Code, is |
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amended by adding Section 186.008 to read as follows: |
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Sec. 186.008. WINTER WEATHER EMERGENCY PREPAREDNESS AND |
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COORDINATION. (a) In this section: |
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(1) "Coordinating agency" means the Public Utility |
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Commission of Texas, the Railroad Commission of Texas, or the Texas |
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Division of Emergency Management. |
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(2) "Coordinated entity" means a power generation |
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company as defined by Section 31.002, the independent organization, |
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or an entity engaged in the transport, storage, or shipping of |
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natural gas to or for a power generation company. |
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(3) "Independent organization" means the independent |
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organization certified under Section 39.151 for the ERCOT power |
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region. |
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(b) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas each by rule shall require each coordinated |
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entity subject to the agency's jurisdiction to establish and submit |
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to the respective agency a winter preparedness emergency operations |
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plan. The rules must require a winter preparedness emergency |
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operations plan to include: |
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(1) a plan for operating during extremely cold |
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weather; |
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(2) a plan that addresses any known critical failure |
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points of the entity, including any effects of weather design |
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limits; |
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(3) a plan for operating during an emergency shortage |
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of water or other critical supplies; |
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(4) a plan for identifying potentially extreme weather |
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events; |
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(5) a plan for staffing during extreme weather events; |
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(6) natural gas curtailment priorities and |
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procedures, if applicable; |
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(7) a description of priorities for recovery of |
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operational capacity or 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 extreme weather event with the |
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coordinating agencies, other coordinated entities, the public, the |
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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 the personnel will follow the plan, except to the |
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extent deviations are appropriate under the circumstances during an |
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emergency. |
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(c) An emergency operations plan may be combined or |
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coordinated with other preparedness reporting requirements, |
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including requirements regarding other weather scenarios, natural |
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disasters, cybersecurity events, physical security events, and |
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pandemics. A coordinating agency may authorize a coordinated |
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entity to submit for the purposes of this section a plan required to |
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be submitted to the agency under another provision of law if the |
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plan includes the information required by this section to be |
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included in an emergency operations plan. |
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(d) The coordinating agencies shall analyze jointly |
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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 this state. In preparing the |
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report, the coordinating agencies shall: |
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(1) review the emergency operations plans on file with |
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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 to ensure the continuity of |
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electric and natural gas service, including identifying and |
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defining potentially appropriate weatherization and emergency |
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operations standards, that may: |
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(A) differentiate between existing and new |
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facilities; and |
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(B) consider geography, suitable alternatives, |
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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 the agency's jurisdiction and this section to file an |
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updated emergency operations plan if the coordinating agency finds |
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that an emergency operations plan on file does not contain |
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sufficient information to determine whether the coordinated entity |
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can provide 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. The |
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coordinating agencies may combine a report required by this section |
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with a report required to be produced by a coordinating agency by |
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another provision of law when making the submission required by |
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this subsection. |
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(h) An emergency operations plan submitted to a state agency |
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under this section is confidential under Chapters 418 and 552, |
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Government Code, and any other applicable law, and is not subject to |
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disclosure under Chapter 552, Government Code. If portions of a |
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plan are directly referenced in the report described by Subsection |
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(d), the information must be in a redacted form for public |
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inspection with the confidential portions removed. A coordinated |
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entity in the ERCOT power region shall provide the entity's entire |
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plan to the independent organization. The independent organization |
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shall maintain the 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 each shall notify coordinated entities under |
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their respective jurisdictions of any potential deficiencies in |
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entity emergency operations plans and describe any applicable |
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winter weatherization and emergency operations standards |
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recommended by the coordinating agencies. Not later than the 30th |
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day after the date a coordinated entity receives notice under this |
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subsection, the entity in writing shall acknowledge to the Public |
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Utility Commission of Texas or the Railroad Commission of Texas, as |
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applicable, that the entity received the notice. |
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(j) The Public Utility Commission of Texas or the Railroad |
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Commission of Texas, after notice and opportunity for hearing, may |
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impose an administrative penalty on a coordinated entity subject to |
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the agency's jurisdiction for failure to submit an emergency |
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operations plan or respond to a notice of potential deficiency by |
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the required time. |
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SECTION 5. The Railroad Commission of Texas shall adopt |
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rules as required by Section 86.044, Natural Resources Code, as |
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added by this Act, and Section 121.2015(a), Utilities Code, as |
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amended by this Act, not later than November 1, 2021. |
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SECTION 6. 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 186.008, Utilities Code, |
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as added by this Act. |
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SECTION 7. The Railroad Commission of Texas is required to |
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implement this Act only if the legislature appropriates money |
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specifically for that purpose. If the legislature does not |
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appropriate money specifically for that purpose, the Railroad |
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Commission of Texas may, but is not required to, implement this Act |
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using other appropriations available for the purpose. |
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SECTION 8. This Act takes effect September 1, 2021. |
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