Relating to temporary emergency energy facilities.

89(R) HB 4581 - House Committee Report version - Bill Text

89R24938 JXC-F

By: Guillen

H.B. No. 4581

Substitute the following for H.B. No. 4581:

By: King

C.S.H.B. No. 4581

A BILL TO BE ENTITLED

AN ACT

relating to temporary emergency energy facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 39.918, Utilities Code, is amended by

amending Subsections (d) and (f) and adding Subsections (f-1),

(f-2), (f-3), (f-4), (k), (l), (m), and (n) to read as follows:

(d)
A facility
[
Facilities
] described by Subsection (b)(1):

(1) must be operated in isolation from the bulk power

system; [
and
]

(2) may not be included in independent system

operator:

(A) locational marginal pricing calculations;

(B) pricing; or

(C) reliability models
; and

(3) must be:

(A) mobile; and

(B)

capable of generating electric energy within

three hours after being connected to a demand source
.

(f) A transmission and distribution utility shall[
, when

reasonably practicable,
] use a competitive bidding process to lease

facilities under Subsection (b)(1).

(f-1)

A transmission and distribution utility may not enter

into a lease under Subsection (b)(1) unless:

(1)

the commission first, in a rate proceeding or a

separate contested case hearing, authorizes:

(A)

the total generating capacity the utility may

lease; and

(B)

the functions for which the utility may lease

facilities and the generation capacity the utility may lease for

each function; or

(2)

the lease includes a provision that allows

alteration of the lease based on commission order or rule.

(f-2)

The commission may limit the period during which an

authorization issued under Subsection (f-1) is valid.

(f-3)

Notwithstanding Subsections (f) and (f-1)(1), a

transmission and distribution utility may enter into a lease under

Subsection (b)(1) without competitive bidding or prior commission

approval if:

(1)

the transmission and distribution utility lacks

the leased generating capacity necessary to aid in restoring power

to the utility's customers during a significant power outage;

(2)

the amount of leased generating capacity does not

significantly exceed the amount of megawatts necessary to restore

electric service to the utility's customers during a significant

power outage; and

(3)

the term of the lease does not significantly

exceed the time period that is required to restore electric service

to the utility's customers during a significant power outage.

(f-4)

A transmission and distribution utility that enters

into a lease in the manner provided by Subsection (f-3) shall

provide documentation to justify the amount of leased generating

capacity during the first base rate proceeding after the date the

lease begins.

(k)

The Texas Division of Emergency Management, in

coordination with the commission and transmission and distribution

utilities, shall develop an annex to the state emergency management

plan prepared under Section 418.042, Government Code, that

addresses planning for deploying facilities leased under

Subsection (b).

The annex must include procedures for transmission

and distribution utilities to maintain a current list of facilities

leased under Subsection (b), information submitted to the

commission under Subsection (n), and facilities available to be

deployed through mutual aid agreements.

(l)

The list maintained under Subsection (k) must be

accessible, on request, to each transmission and distribution

utility, the commission, the Texas Division of Emergency

Management, and each state agency with emergency response duties.

Each transmission and distribution utility that leases a facility

described by Subsection (b) shall notify the commission not later

than the 30th day after the date of a change in the utility's lease

of the facility.

(m)

The commission by rule shall require a transmission and

distribution utility that leases a facility described by Subsection

(b) to offer to enter into mutual aid agreements with other

transmission and distribution utilities to facilitate the

deployment of undeployed facilities on the request of another

transmission and distribution utility.

(n)

The commission by rule shall require a transmission and

distribution utility that enters into a mutual aid agreement

described by Subsection (m) to:

(1)

provide to the commission information regarding

the agreement not later than the 30th day after the date the utility

enters into the agreement; and

(2)

not later than the 30th day after the date of any

change in the required information, provide updated information to

the commission.

SECTION 2. The changes in law made by this Act to Section

39.918(d), Utilities Code, apply only to a temporary emergency

electric energy facility leased by a transmission and distribution

utility on or after the effective date of this Act. A temporary

emergency electric energy facility that was leased by a

transmission and distribution utility under Section 39.918(b)(1),

Utilities Code, before the effective date of this Act is governed by

the law in effect at the time the lease was executed, and the former

law is continued in effect for that purpose.

SECTION 3. The Public Utility Commission of Texas shall

require a transmission and distribution utility to which Section

39.918(m), Utilities Code, as added by this Act, applies to make

offers for mutual aid agreements before June 1, 2026.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.