89R3396 CS-D
 
  By: Guillen H.B. No. 5633
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the operation of Texas backup power packages.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 34.0204, Utilities Code, is amended to
  read as follows:
         Sec. 34.0204.  TEXAS BACKUP POWER PACKAGES. (a) The
  commission may use money in the Texas energy fund without further
  appropriation to provide a grant or loan for the operation of a
  Texas backup power package that:
               (1)  is engineered to minimize operation costs;
               (2)  uses interconnection technology and controls that
  enable immediate islanding from the power grid and stand-alone
  operation for the host facility;
               (3)  is capable of operating for at least 96 [48]
  continuous hours without refueling or connecting to a separate
  power source; and
               (4)  is designed so that one or more Texas backup power
  packages can be aggregated on-site to serve not more than eight
  [2.5] megawatts of load at the host facility[;
               [(5) provides power sourced from:
                     [(A) a combination of natural gas or propane with
  photovoltaic panels and battery storage; or
                     [(B) battery storage on an electric school bus;
  and
               [(6) is not used by the owner or host facility for the
  sale of energy or ancillary services].
         (b)  An owner or host facility of a Texas backup power
  package for which a grant or loan is provided under this chapter
  that sells energy or ancillary services from the package is not
  required to register with the commission as a power generation
  company under Section 39.351 if the package has a generation
  capacity of not more than 2,000 kilowatts.
         SECTION 2.  The change in law made by this Act to Section
  34.0204(a)(3), Utilities Code, applies only to a Texas backup power
  package for which a grant or loan is issued on or after the
  effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2025.