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A BILL TO BE ENTITLED
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AN ACT
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relating to a qualifying cogenerator that serves a large load and a |
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colocated desalination facility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002(13), Utilities Code, is amended |
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to read as follows: |
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(13) "Qualifying cogenerator" and "qualifying small |
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power producer" have the meanings assigned those terms by 16 U.S.C. |
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Sections 796(18)(C) and 796(17)(D). A qualifying cogenerator that |
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provides electricity to a purchaser of the cogenerator's thermal |
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output is not for that reason considered to be a retail electric |
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provider or a power generation company. Unless the qualifying |
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cogenerator is a municipally owned utility or an electric |
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cooperative, the term includes an owner or operator of dispatchable |
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generation that: |
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(A) provides thermal, steam, or waste heat for |
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use by a colocated desalination facility; and |
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(B) serves a load used for the primary purpose of |
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manufacturing digital products. |
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SECTION 2. Section 37.001(3), Utilities Code, is amended to |
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read as follows: |
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(3) "Retail electric utility" means a person, |
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political subdivision, electric cooperative, or agency that |
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operates, maintains, or controls in this state a facility to |
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provide retail electric utility service. The term does not include |
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a corporation described by Section 32.053 to the extent that the |
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corporation sells electricity exclusively at wholesale and not to |
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the ultimate consumer. A qualifying cogenerator that sells |
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electric energy at retail to the sole purchaser of the |
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cogenerator's thermal output under Sections 35.061 and 36.007 is |
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not for that reason considered to be a retail electric utility. The |
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owner or operator of a qualifying cogenerator that provides |
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thermal, steam, or waste heat for use by a colocated desalination |
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facility and serves a load used for the primary purpose of |
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manufacturing digital products is not for that reason considered to |
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be a retail electric utility. The owner or operator of a qualifying |
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cogeneration facility who was issued the necessary environmental |
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permits from the Texas Natural Resource Conservation Commission |
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after January 1, 1998, and who commenced construction of such |
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qualifying facility before July 1, 1998, may provide electricity to |
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the purchasers of the thermal output of that qualifying facility |
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and shall not for that reason be considered an electric utility or a |
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retail electric utility, provided that the purchasers of the |
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thermal output are owners of manufacturing or process operation |
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facilities that are located on a site entirely owned before |
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September, 1987, by one owner who retained ownership after |
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September, 1987, of some portion of the facilities and that those |
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facilities now share some integrated operations, such as the |
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provision of services and raw materials. A person who is an |
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electric generation equipment lessor or operator is not for that |
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reason considered to be a retail electric utility. A person who owns |
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or operates equipment used solely to provide electricity charging |
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service for consumption by an alternatively fueled vehicle, as |
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defined by Section 502.004, Transportation Code, is not for that |
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reason considered to be a retail electric utility. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |