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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, Utilities Code, is amended by |
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amending Subdivision (13) 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. A qualifying cogenerator |
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includes an owner or operator of dispatchable generation that: |
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(A) provides thermal, steam or waste heat for use |
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by a co-located desalination facility; and |
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(B) serves a load whose primary purpose is the |
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manufacture of digital products. |
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SECTION 2. Subsection 37.001, Utilities Code, is amended by |
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amending Subdivision (3) to 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 cogeneration facility who was |
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issued the necessary environmental permits from the Texas Natural |
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Resource Conservation Commission after January 1, 1998, and who |
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commenced construction of such qualifying facility before July 1, |
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1998, may provide electricity to the purchasers of the thermal |
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output of that qualifying facility and shall not for that reason be |
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considered an electric utility or a retail electric utility, |
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provided that the purchasers of the thermal output are owners of |
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manufacturing or process operation facilities that are located on a |
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site entirely owned before September, 1987, by one owner who |
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retained ownership after September, 1987, of some portion of the |
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facilities and that those facilities now share some integrated |
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operations, such as the provision of services and raw materials. A |
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person who is an electric generation equipment lessor or operator |
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is not for that reason considered to be a retail electric utility. |
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A person who owns or operates equipment used solely to provide |
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electricity charging service for consumption by an alternatively |
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fueled vehicle, as defined by Section 502.004, Transportation Code, |
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is not for that reason considered to be a retail electric utility. |
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The owner or operator of a qualifying congenator as defined by |
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Subdivision 31.002(13) is not considered to be a retail electric |
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utility if the owner or operator of a qualifying cogenerator is |
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providing electricity to a manufacturer of digital products and |
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thermal, steam, or waste heat to a colocated desalination facility. |
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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. |