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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Public Utility Commission of |
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Texas, with the assistance of the Railroad Commission of Texas, to |
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take action to ensure that natural gas is available to supply power |
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generation facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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. AUTHORITY OF COMMISSION AND PUBLIC UTILITY |
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COMMISSION DURING DISASTER OR OTHER EMERGENCY. (a) This section |
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applies only to a disaster or other emergency that causes a |
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widespread power outage. |
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(b) On a declaration of a disaster or other emergency by the |
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governor, the Public Utility Commission of Texas may issue an order |
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to: |
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(1) set the spot price of gas in the manner provided by |
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this section; and |
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(2) take any other necessary action related to the gas |
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market to ensure that gas is available to supply power generation |
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facilities in the ERCOT power region, including ordering that all |
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gas be made available for sale for use by power generation |
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facilities in the ERCOT power region before being exported from |
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this state. |
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(c) The Railroad Commission of Texas shall enforce an order |
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issued under Subsection (b). |
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(d) The Public Utility Commission of Texas and the Railroad |
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Commission of Texas by rule shall adopt a memorandum of |
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understanding on the process the agencies will use to collaborate |
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for the purposes of this section. |
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(e) An order issued under Subsection (b): |
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(1) may set a spot price for gas that an operator of a |
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gas well may charge only for gas that the agencies determine could |
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reasonably be anticipated to be supplied through intrastate |
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transportation to a power generation facility that: |
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(A) is powered primarily by gas; and |
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(B) provides generation for the ERCOT power |
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region; and |
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(2) is effective only during the declared disaster or |
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other emergency. |
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SECTION 2. Section 86.044, Natural Resources Code, as added |
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by this Act, does not apply to a price charged for natural gas under |
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a contract entered into before the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |