Relating to the designation of certain natural gas facilities as seasonally critical.

89(R) HB 5224 - Engrossed version - Bill Text

89R22479 ANG-F

By: Guillen, Morales of Maverick

H.B. No. 5224

A BILL TO BE ENTITLED

AN ACT

relating to the designation of certain natural gas facilities as

seasonally critical.

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

SECTION 1. Section 81.073, Natural Resources Code, is

amended by amending Subsection (b) and adding Subsections (c) and

(d) to read as follows:

(b) The rules must:

(1) establish criteria for designating persons who own

or operate a facility under the jurisdiction of the commission

under Section 81.051(a) or engage in an activity under the

jurisdiction of the commission under Section 81.051(a) who must

provide critical customer and critical gas supply information, as

defined by the commission, to the entities described by Section

38.074(b)(1), Utilities Code;

(2) consider essential operational elements when

defining critical customer designations and critical gas supply

information for the purposes of Subdivision (1), including natural

gas production, processing, and transportation, related produced

water handling and disposal facilities, and the delivery of natural

gas to generators of electric energy; [
and
]

(3) require that only facilities and entities that are

prepared to operate during a weather emergency may be designated as

a critical customer under this section
; and

(4)

establish criteria for a facility operating under

the jurisdiction of the commission that has been designated as a

critical customer under this section to be designated as a seasonal

critical customer
.

(c)

For the purposes of Subsection (b)(4), the commission

shall establish:

(1)

standards for determining the seasons during which

a facility may be designated as a seasonal critical customer,

including the beginning and end dates for each season; and

(2)

a process to allow a person who owns or operates a

facility to apply to the commission to be designated as a seasonal

critical customer, including allowing an owner or operator to apply

for a seasonal designation as part of a critical infrastructure

designation application.

(d)

The commission shall annually provide a list of

facilities designated as seasonal critical customers under

Subsection (b)(4) to the Public Utility Commission of Texas. The

Public Utility Commission of Texas shall provide each updated list

to the independent organization certified under Section 39.151,

Utilities Code, for the ERCOT power region.

SECTION 2. (a) Not later than February 1, 2026, the Railroad

Commission of Texas shall adopt rules as necessary to establish

criteria in accordance with Section 81.073(b)(4), Natural

Resources Code, as added by this Act.

(b) Not later than February 1, 2026, the Public Utility

Commission of Texas shall adopt rules as necessary to allow the

independent organization certified under Section 39.151, Utilities

Code, for the ERCOT power region to competitively procure demand

reductions from a facility that has been designated as a seasonal

critical customer under Section 81.073, Natural Resources Code, as

amended by this Act, during the season in which the facility has

been designated as a seasonal critical customer.

(c) Not later than March 31, 2026, the Railroad Commission

of Texas shall provide to the Public Utility Commission of Texas the

first list of facilities designated as seasonal critical customers

under Section 81.073, Natural Resources Code, as amended by this

Act. Not later than April 30, 2026, the Public Utility Commission of

Texas shall provide the list to the independent organization

certified under Section 39.151, Utilities Code, for the ERCOT power

region.

SECTION 3. 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.