88R7800 JXC-D
 
  By: Shaheen H.B. No. 2286
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of the electric generating facility fund to
  finance construction of electric generating facilities in the ERCOT
  power region; authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 2, Utilities Code, is amended
  by adding Chapter 34 to read as follows:
  CHAPTER 34.  ELECTRIC GENERATING FACILITY FUND
         Sec. 34.0101.  DEFINITIONS. In this chapter:
               (1)  "Advisory committee" means the Electric
  Generating Facility Fund Advisory Committee.
               (2)  "Fund" means the electric generating facility fund
  established by Section 49-q, Article III, Texas Constitution.
               (3)  "Trust company" means the Texas Treasury
  Safekeeping Trust Company.
         Sec. 34.0102.  FUND. (a)  The fund is a special fund in the
  state treasury outside the general revenue fund to be administered
  and used, without further appropriation, by the commission to
  provide loans to finance the construction of electric generating
  facilities in the ERCOT power region.  The commission may establish
  separate accounts in the fund.
         (b)  The fund and the fund's accounts are kept and held by the
  trust company for and in the name of the commission.  The commission
  has legal title to money and investments in the fund until money is
  disbursed from the fund as provided by this chapter and commission
  rules.
         (c)  Money deposited to the credit of the fund may be used
  only as provided by this chapter.
         (d)  The fund consists of:
               (1)  money transferred or deposited to the credit of
  the fund by or as authorized by law, including money from any source
  transferred or deposited to the credit of the fund at the
  commission's discretion;
               (2)  revenue, including the proceeds of any fee,
  assessment, or tax imposed by this state, that general law
  dedicates for deposit to the credit of the fund; and
               (3)  investment earnings and interest earned on money
  in the fund.
         Sec. 34.0103.  LOANS. (a) The commission may use money in
  the fund to:
               (1)  make a loan to finance construction of a facility
  that uses a source of heat to generate electricity; and
               (2)  pay the necessary and reasonable expenses of
  administering the fund.
         (b)  An entity is eligible to receive a loan under this
  chapter only if the entity is authorized by this title to operate
  the type of facility for which the loan is requested.
         (c)  The commission may provide a loan under this chapter
  that bears interest at a rate or rates determined by the commission,
  including a rate or rates below prevailing market rates.
         Sec. 34.0104.  MANAGEMENT AND INVESTMENT OF FUND. (a) The
  trust company shall hold and invest the fund, and any accounts
  established in the fund, for and in the name of the commission,
  taking into account the purposes for which money in the fund may be
  used. The fund may be invested with the state treasury pool.
         (b)  The overall objective for the investment of the fund is
  to maintain sufficient liquidity to meet the needs of the fund while
  striving to preserve the purchasing power of the fund.
         (c)  The trust company has any power necessary to accomplish
  the purposes of managing and investing the assets of the fund. In
  managing the assets of the fund, through procedures and subject to
  restrictions the trust company considers appropriate, the trust
  company may acquire, exchange, sell, supervise, manage, or retain
  any kind of investment that a prudent investor, exercising
  reasonable care, skill, and caution, would acquire or retain in
  light of the purposes, terms, distribution requirements, and other
  circumstances of the fund then prevailing, taking into
  consideration the investment of all the assets of the fund rather
  than a single investment.
         (d)  The trust company may charge fees to cover its costs
  incurred in managing and investing the fund. The fees must be
  consistent with the fees the trust company charges other state and
  local governmental entities for which it provides investment
  management services. The trust company may recover fees it charges
  under this subsection only from the earnings of the fund.
         (e)  The trust company annually shall provide a written
  report to the commission and to the advisory committee with respect
  to the investment of the fund. The trust company shall contract
  with a certified public accountant to conduct an independent audit
  of the fund annually and shall present the results of each annual
  audit to the commission and to the advisory committee. This
  subsection does not affect the state auditor's authority to conduct
  an audit of the fund under Chapter 321, Government Code.
         (f)  The trust company shall adopt a written investment
  policy that is appropriate for the fund. The trust company shall
  present the investment policy to the investment advisory board
  established under Section 404.028, Government Code. The investment
  advisory board shall submit to the trust company recommendations
  regarding the policy.
         (g)  The commission annually shall provide to the trust
  company a forecast of the cash flows into and out of the fund. The
  commission shall provide updates to the forecasts as appropriate to
  ensure that the trust company is able to achieve the objective
  specified by Subsection (b).
         (h)  The trust company shall disburse money from the fund as
  directed by the commission.
         (i)  An investment-related contract entered into under this
  section is not subject to Chapter 2260, Government Code.
         Sec. 34.0105.  ELECTRIC GENERATING FACILITY FUND ADVISORY
  COMMITTEE. (a) The advisory committee is composed of the following
  seven members:
               (1)  the comptroller or a person designated by the
  comptroller;
               (2)  three members of the senate appointed by the
  lieutenant governor, including:
                     (A)  a member of the committee of the senate
  having primary jurisdiction over matters relating to the generation
  of electricity; and
                     (B)  a member of the committee of the senate
  having primary jurisdiction over finance; and
               (3)  three members of the house of representatives
  appointed by the speaker of the house of representatives,
  including:
                     (A)  a member of the committee of the house of
  representatives having primary jurisdiction over the generation of
  electricity; and
                     (B)  a member of the committee of the house of
  representatives having primary jurisdiction over finance.
         (b)  The commission shall provide staff support for the
  advisory committee.
         (c)  An appointed member of the advisory committee serves at
  the will of the person who appointed the member.
         (d)  The lieutenant governor shall appoint a co-presiding
  officer of the advisory committee from among the members appointed
  by the lieutenant governor. The speaker of the house of
  representatives shall appoint a co-presiding officer of the
  advisory committee from among the members appointed by the speaker.
         (e)  The advisory committee may hold public hearings, formal
  meetings, and work sessions. Either co-presiding officer of the
  advisory committee may call a public hearing, formal meeting, or
  work session of the advisory committee at any time. The advisory
  committee may not take formal action at a public hearing, formal
  meeting, or work session unless a quorum of the committee is
  present.
         (f)  Except as otherwise provided by this subsection, a
  member of the advisory committee is not entitled to receive
  compensation for service on the committee or reimbursement for
  expenses incurred in the performance of official duties as a member
  of the committee. Service on the advisory committee by a member of
  the senate or house of representatives is considered legislative
  service for which the member is entitled to reimbursement and other
  benefits in the same manner and to the same extent as for other
  legislative service.
         (g)  The advisory committee:
               (1)  may provide comments and recommendations to the
  commission for the commission to use in adopting rules regarding
  the use of the fund or on any other matter; and
               (2)  shall review the overall operation, function, and
  structure of the fund at least semiannually.
         (h)  The advisory committee may adopt rules, procedures, and
  policies as needed to administer this section and implement its
  responsibilities.
         (i)  Chapter 2110, Government Code, does not apply to the
  size, composition, or duration of the advisory committee.
         (j)  The advisory committee is subject to Chapter 325,
  Government Code (Texas Sunset Act). Unless continued in existence
  as provided by that chapter, the advisory committee is abolished
  September 1, 2035.
         Sec. 34.0106.  RULES. (a)  The commission by rule may
  establish procedures for:
               (1)  the application for and award of a loan under this
  chapter; and
               (2)  the administration of the fund.
         (b)  The commission shall give full consideration to
  comments and recommendations of the advisory committee before it
  adopts rules under this chapter.
         SECTION 2.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 88th Legislature, Regular
  Session, 2023, providing for the creation of the electric
  generating facility fund to finance construction of electric
  generating facilities takes effect.  If that amendment is not
  approved by the voters, this Act has no effect.