89R18037 TYPED     By: Parker S.B. No. 2116       A BILL TO BE ENTITLED   AN ACT   relating to the critical designation of certain natural gas   facilities          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 81, Natural Resources   Code, is amended as follows:          Sec. 81.073.  CRITICAL NATURAL GAS FACILITIES AND ENTITIES.          (a)  The commission shall collaborate with the Public   Utility Commission of Texas to adopt rules to establish a process to   designate certain natural gas facilities and entities associated   with providing natural gas in this state as critical customers or   critical gas suppliers during energy emergencies.          (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.                (4)  establish criteria for a facility operated under   the jurisdiction of the commission which has been designated as   critical under (a) to be designated as critical on a seasonal basis.                      (i)  The commission shall determine for which   seasons each facility is designated critical and the beginning and   ending date of such seasons,                      (ii)  Any person who owns or operates a facility   which has been designated as critical under (a) may apply to the   commission to be designated as critical on a seasonal basis, such   application may be made by an owner or operator as part of the owner   or operator's Critical Infrastructure Designation Report to the   commission,                      (iii)  The commission shall provide a list of   facilities designated as critical on a seasonal basis to the Public   Utility Commission.          SECTION 2.  (a)  The Texas Railroad Commission shall open a   rulemaking to implement Natural Resources Code Subsection   81.073(b)(4). This rulemaking project shall begin not later than   the 90th day after the effective date of this Act. The commission   shall adopt the final rule not later than February 1, 2026. A list   of facilities designated as critical on a seasonal basis shall be   provided to the Public Utility Commission by March 31, 2026.          (b)  The Public Utility Commission of Texas shall open a   rulemaking project requiring the independent organization   certified under Section 39.151 for the ERCOT power region to allow   facilities designated as critical on a seasonal basis, under   Natural Resources Code Subsection 81.073(b)(4), to participate in   competitively procured demand reductions. This rulemaking project   shall begin not later than the 90th day after the effective date of   this Act. The commission shall adopt the final rule not later than   February 1, 2026. The Public Utility Commission must provide the   list of facilities designated as critical on a seasonal basis to the   independent organization certified under Section 39.151 for the   ERCOT power region by April 30, 2026.          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.