By: Schwertner  S.B. No. 3          (In the Senate - Filed March 12, 2021; March 18, 2021, read   first time and referred to Committee on Jurisprudence;   March 26, 2021, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 5, Nays 0; March 26, 2021,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 3 By:  Huffman     A BILL TO BE ENTITLED   AN ACT     relating to preparing for, preventing, and responding to weather   emergencies and power outages; increasing the amount of   administrative and civil penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 411, Government Code, is amended by   adding Subchapter K-1 to read as follows:   SUBCHAPTER K-1. POWER OUTAGE ALERT          Sec. 411.301.  POWER OUTAGE ALERT. (a) With the cooperation   of the Texas Department of Transportation, the Texas Division of   Emergency Management, the office of the governor, and the Public   Utility Commission of Texas, the department shall develop and   implement an alert to be activated when the power supply in this   state may be inadequate to meet demand.          (b)  The Public Utility Commission of Texas by rule shall   adopt criteria for the content and activation of the alert   described by Subsection (a). The criteria must provide for an alert   to be regional or statewide.          Sec. 411.302.  ADMINISTRATION. (a) The director is the   statewide coordinator of the power outage alert.          (b)  The director shall adopt rules and issue directives as   necessary to ensure proper implementation of the power outage   alert. The rules and directives must include the procedures to be   used by the Public Utility Commission of Texas and the independent   organization certified under Section 39.151, Utilities Code, to   communicate with the director about the power outage alert.          Sec. 411.303.  DEPARTMENT TO RECRUIT PARTICIPANTS. The   department shall recruit public and commercial television and radio   broadcasters, private commercial entities, state or local   governmental entities, the public, and other appropriate persons to   assist in developing and implementing the power outage alert   system.          Sec. 411.304.  STATE AGENCIES. (a) A state agency   participating in the power outage alert system shall:                (1)  cooperate with the department and assist in   developing and implementing the alert system; and                (2)  establish a plan for providing relevant   information to its officers, investigators, or employees, as   appropriate, once the power outage alert system has been activated.          (b)  In addition to its duties as a state agency under   Subsection (a), the Texas Department of Transportation shall   establish a plan for providing relevant information to the public   through an existing system of dynamic message signs located across   the state.          Sec. 411.305.  ACTIVATION OF POWER OUTAGE ALERT. (a) When   the Public Utility Commission of Texas or an independent   organization certified under Section 39.151, Utilities Code,   notifies the department that the power supply in this state or a   region of this state may be inadequate to meet demand, the   department shall confirm the accuracy of the information and, if   confirmed, immediately issue a power outage alert under this   subchapter in accordance with department rules.          (b)  In issuing the power outage alert, the department shall   send the alert to designated media outlets in this state. Following   receipt of the alert, participating radio stations and television   stations and other participating media outlets may issue the alert   at designated intervals.          Sec. 411.306.  CONTENT OF POWER OUTAGE ALERT. The power   outage alert must include a statement that electricity customers   may experience a power outage.          Sec. 411.307.  TERMINATION OF POWER OUTAGE ALERT. The   director shall terminate any activation of the power outage alert   with respect to a particular energy emergency alert not later than   the date the department receives notice that the energy emergency   alert has been canceled.          Sec. 411.308.  LIMITATION ON PARTICIPATION BY TEXAS   DEPARTMENT OF TRANSPORTATION. Notwithstanding Section 411.304(b),   the Texas Department of Transportation is not required to use any   existing system of dynamic message signs in a statewide alert   system created under this subchapter if that department receives   notice from the United States Department of Transportation Federal   Highway Administration that the use of the signs would result in the   loss of federal highway funding or other punitive actions taken   against this state due to noncompliance with federal laws,   regulations, or policies.          SECTION 2.  Section 418.048, Government Code, is amended to   read as follows:          Sec. 418.048.  MONITORING WEATHER. (a) The division shall   keep continuously apprised of weather conditions that present   danger of climatic activity, such as precipitation, severe enough   to constitute a disaster.          (b)  The division shall create a list of suggested actions   for state agencies and the public to take to prepare for winter   storms, organized by severity of storm based on the National   Weather Service Winter Storm Severity Index.          SECTION 3.  Chapter 418, Government Code, is amended by   adding Subchapter J to read as follows:   SUBCHAPTER J. TEXAS ENERGY RELIABILITY COUNCIL          Sec. 418.301.  DEFINITIONS. In this subchapter:                (1)  "Chief" means the division's chief.                (2)  "Council" means the Texas Energy Reliability   Council.          Sec. 418.302.  COUNCIL ESTABLISHED. The Texas Energy   Reliability Council is established to:                (1)  ensure that the energy and electric industries in   this state meet high priority human needs and address critical   infrastructure concerns; and                (2)  enhance coordination and communication in the   energy and electric industries in this state.          Sec. 418.303.  MEMBERSHIP. (a) The council is composed of:                (1)  the chairman of the Railroad Commission of Texas;                (2)  the presiding officer of the Public Utility   Commission of Texas;                (3)  the chief executive of the Office of Public   Utility Counsel;                (4)  the presiding officer of the Texas Commission on   Environmental Quality;                (5)  the chair of the Texas Transportation Commission;                (6)  a person to represent the independent organization   certified under Section 39.151, Utilities Code, for the ERCOT power   region, appointed by the governor;                (7)  the chief;                (8)  five persons to represent participants in the   natural gas supply chain in this state, appointed by the Railroad   Commission of Texas to represent as many types of participants as   possible;                (9)  five persons to represent the electric industry,   appointed by the Public Utility Commission of Texas, including:                      (A)  one person to represent entities that provide   dispatchable electric energy to the power grid in this state;                      (B)  one person to represent transmission and   distribution utilities, as defined by Section 31.002, Utilities   Code;                      (C)  one person to represent retail electric   providers, as defined by Section 31.002, Utilities Code;                      (D)  one person to represent municipally owned   utilities, as defined by Section 11.003, Utilities Code; and                      (E)  one person to represent electric   cooperatives;                (10)  three persons to represent energy sectors not   otherwise represented on the council, such as the non-dispatchable   sources of energy, coal, or nuclear sectors, appointed by the   Public Utility Commission of Texas; and                (11)  five persons to represent industrial concerns,   appointed by the governor, including:                      (A)  one person to represent motor fuel producers;   and                      (B)  one person to represent chemical   manufacturers.          (b)  A member of the council described by Subsection (a)(1),   (2), (3), (4), (5), (6), or (7) may designate a person from the   member's agency to represent the member in any meeting.          (c)  The council may request that a person collaborate with   the council to achieve the purposes described by Section 418.302.          Sec. 418.304.  OFFICERS. (a) The chief shall serve as   presiding officer of the council.          (b)  The council may select an assistant presiding officer   and secretary from among its members.          Sec. 418.305.  COMPENSATION; REIMBURSEMENT. A member of the   council is not entitled to compensation or reimbursement of   expenses for service on the council.          Sec. 418.306.  MEETINGS. (a) After its initial meeting, the   council shall meet at least twice each year at a time and place   determined by the chief.          (b)  The council may meet at other times the council   considers appropriate. The presiding officer may call a meeting on   the officer's own motion.          Sec. 418.307.  ADMINISTRATIVE SUPPORT. The division shall   provide administrative support to the council.          Sec. 418.308.  GENERAL DUTIES OF COUNCIL. (a) The council   shall foster communication and planning to ensure preparedness for   making available and delivering energy and electricity in this   state to ensure that high priority human needs are met and critical   infrastructure needs are addressed.          (b)  The council shall foster communication and coordination   between the energy and electric industries in this state.          Sec. 418.309.  SUPPLY CHAIN MAP. The council shall:                (1)  map the natural gas supply chain for this state in   order to designate priority service needs during extreme weather   events, including electric generation facilities powered by   natural gas; and                (2)  identify and designate the sources in the supply   chain necessary to operate critical infrastructure, as defined by   Section 421.001.          SECTION 4.  Subchapter C, Chapter 86, Natural Resources   Code, is amended by adding Section 86.044 to read as follows:          Sec. 86.044.  WEATHER EMERGENCY PREPAREDNESS. (a) In this   section, "gas supply chain facility" means a facility that is:                (1)  used for producing, treating, processing,   pressurizing, storing, or transporting natural gas to end   consumers;                (2)  otherwise regulated by the commission under this   subtitle; and                (3)  not regulated by the commission under Chapter 121,   Utilities Code.          (b)  The commission by rule shall require a gas supply chain   facility operator to implement measures to prepare to operate   during a weather emergency. In adopting the rules, the commission   shall take into consideration the supply chain map created under   Section 418.309, Government Code.          (c)  The commission by rule shall require an operator of a   gas supply chain facility that experiences repeated or major   weather-related forced interruptions of production to:                (1)  contract with a person who is not an employee of   the provider to assess the operator's weatherization plans,   procedures, and operations; and                (2)  submit the assessment to the commission.          (d)  The commission may require an operator of a gas supply   chain facility to implement appropriate recommendations included   in an assessment submitted to the commission under Subsection (c).          (e)  If the commission determines that a person has violated   a rule adopted under this section, the commission shall notify the   attorney general of the violation. The attorney general shall   initiate a suit to recover a penalty for the violation in the manner   provided by Subchapter G.          SECTION 5.  Section 86.222, Natural Resources Code, is   amended by adding Subsections (a-1), (c), and (d) to read as   follows:          (a-1)  Notwithstanding Subsection (a), a person who violates   a provision of a rule adopted under Section 86.044 is liable for a   penalty of not more than $1,000,000 for each offense.          (c)  The commission by rule shall establish a classification   system to be used by a court under this subchapter for violations of   rules adopted under Section 86.044 that includes a range of   penalties that may be recovered for each class of violation based   on:                (1)  the seriousness of the violation, including:                      (A)  the nature, circumstances, extent, and   gravity of a prohibited act; and                      (B)  the hazard or potential hazard created to the   health, safety, or economic welfare of the public;                (2)  the history of previous violations;                (3)  the amount necessary to deter future violations;                (4)  efforts to correct the violation; and                (5)  any other matter that justice may require.          (d)  The classification system established under Subsection   (c) shall provide that a penalty in an amount that exceeds $5,000   may be recovered only if the violation is included in the highest   class of violations in the classification system.          SECTION 6.  Section 15.023, Utilities Code, is amended by   adding Subsection (b-1) to read as follows:          (b-1)  Notwithstanding Subsection (b), the penalty for a   violation of a provision of Subtitle B may be in an amount not to   exceed $1,000,000 for a violation. Each day a violation continues   or occurs is a separate violation for purposes of imposing a   penalty.          SECTION 7.  Section 17.002, Utilities Code, is amended by   adding Subdivision (3-a) to read as follows:                (3-a)  "Critical care residential customer" means a   residential customer who has permanently residing in the customer's   home a person who has been diagnosed by a physician as being   dependent upon an electric-powered medical device to sustain life.          SECTION 8.  Section 17.003, Utilities Code, is amended by   adding Subsections (d-1) and (e) to read as follows:          (d-1)  An electric utility providing electric delivery   service for a retail electric provider, as defined by Section   31.002, shall collaborate with the retail electric provider and the   commission to ensure that information about the following matters   is periodically provided to the retail electric provider's retail   customers together with bills sent to the customers:                (1)  the electric utility's procedures for implementing   involuntary load shedding initiated by the independent   organization certified for the ERCOT power region;                (2)  the types of customers who may be considered   critical care residential customers or critical load according to   commission rules adopted under Section 38.075;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer or critical load   according to commission rules adopted under Section 38.075; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          (e)  The commission by rule shall require each retail   electric provider to:                (1)  provide to the provider's customers clear and   understandable information about the requirements for voluntary   load shedding participation before the provider accepts a   customer's agreement to volunteer to participate in voluntary load   shedding;                (2)  inform the provider's transmission and   distribution utilities whether the retail electric provider serves   customers willing to voluntarily participate in load shedding   during an energy emergency; and                (3)  coordinate with the provider's transmission and   distribution utilities regarding the potential total amounts of   electricity that would be available if voluntary load shedding is   needed.          SECTION 9.  Section 17.005, Utilities Code, is amended to   read as follows:          Sec. 17.005.  PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED   UTILITIES. (a) A municipally owned utility may not be deemed to be   a "service provider" or "billing agent" for purposes of Sections   17.156(b) and (e).          (b)  The governing body of a municipally owned utility shall   adopt, implement, and enforce rules that shall have the effect of   accomplishing the objectives set out in Sections 17.004(a) and (b)   and 17.102, as to the municipally owned utility within its   certificated service area.          (c)  The governing body of a municipally owned utility or its   designee shall perform the dispute resolution function provided for   by Section 17.157 for disputes arising from services provided by   the municipally owned utility to electric customers served within   the municipally owned utility's certificated service area.          (d)  With respect to electric customers served by a   municipally owned utility outside its certificated service area or   otherwise served through others' distribution facilities, after   retail competition begins as authorized by the legislature, the   provisions of this chapter as administered by the commission apply.          (e)  Nothing in this chapter shall be deemed to apply to a   wholesale customer of a municipally owned utility.          (f)  A municipally owned utility shall periodically provide   with bills sent to retail customers of the utility information   about:                (1)  the utility's procedure for implementing   involuntary load shedding;                (2)  the types of customers who may be considered   critical care residential customers or critical load according to   commission rules adopted under Section 38.075;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer or critical load   according to commission rules adopted under Section 38.075; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          SECTION 10.  Section 17.006, Utilities Code, is amended to   read as follows:          Sec. 17.006.  PROTECTIONS FOR CUSTOMERS OF ELECTRIC   COOPERATIVES. (a) An electric cooperative shall not be deemed to   be a "service provider" or "billing agent" for purposes of Sections   17.156(b) and (e).          (b)  The electric cooperative shall adopt, implement, and   enforce rules that shall have the effect of accomplishing the   objectives set out in Sections 17.004(a) and (b) and 17.102.          (c)  The board of directors of the electric cooperative or   its designee shall perform the dispute resolution function provided   for by Section 17.157 for electric customers served by the electric   cooperative within its certificated service area.          (d)  With respect to electric customers served by an electric   cooperative outside its certificated service area or otherwise   served through others' distribution facilities, after the   legislature authorizes retail competition, the provisions of this   chapter as administered by the commission shall apply.          (e)  Nothing in this chapter shall be deemed to apply to a   wholesale customer of an electric cooperative.          (f)  An electric cooperative shall periodically provide with   bills sent to retail customers of the cooperative information   about:                (1)  the cooperative's procedure for implementing   involuntary load shedding;                (2)  the types of customers who may be considered   critical care residential customers or critical load according to   commission rules adopted under Section 38.075;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer or critical load   according to commission rules adopted under Section 38.075; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          SECTION 11.  The heading to Chapter 35, Utilities Code, is   amended to read as follows:   CHAPTER 35. [ALTERNATIVE] ENERGY PROVIDERS          SECTION 12.  Subchapter A, Chapter 35, Utilities Code, is   amended by adding Section 35.0021 to read as follows:          Sec. 35.0021.  WEATHER EMERGENCY PREPAREDNESS. (a) This   section applies only to a municipally owned utility, electric   cooperative, qualifying facility, power generation company, or   exempt wholesale generator that sells electric energy at wholesale   in the ERCOT power region.          (b)  The commission by rule shall require each provider of   electric generation service described by Subsection (a) to   implement measures to prepare the provider's generation assets to   provide adequate electric generation service during a weather   emergency according to reliability standards adopted by the   commission.          (c)  The independent organization certified under Section   39.151 for the ERCOT power region shall:                (1)  inspect generation assets in the ERCOT power   region for compliance with the reliability standards;                (2)  provide the owner of a generation asset with a   reasonable period of time in which to remedy any violation the   independent organization discovers in an inspection; and                (3)  report to the commission any violation that is not   remedied in a reasonable period of time.          (d)  The commission by rule shall require a provider of   electric generation service described by Subsection (a) for a   generation asset that experiences repeated or major   weather-related forced interruptions of service to:                (1)  contract with a person who is not an employee of   the provider to assess the provider's weatherization plans,   procedures, and operations for that asset; and                (2)  submit the assessment to the commission and the   independent organization certified under Section 39.151 for the   ERCOT power region.          (e)  The commission may require a provider of electric   generation service described by Subsection (a) to implement   appropriate recommendations included in an assessment submitted to   the commission under Subsection (d).          (f)  The independent organization certified under Section   39.151 for the ERCOT power region shall review, coordinate, and   approve or deny requests by providers of electric generation   service described by Subsection (a) for a planned power outage   during a period in which historically, as determined by the   commission, electricity use has reached a summer or winter peak.          (g)  The commission shall impose an administrative penalty   on an entity, including a municipally owned utility or an electric   cooperative, that violates a rule adopted under this section in the   manner provided by Chapter 15.          SECTION 13.  Section 35.004(e), Utilities Code, is amended   to read as follows:          (e)  The commission shall ensure that ancillary services   necessary to facilitate the transmission of electric energy are   available at reasonable prices with terms and conditions that are   not unreasonably preferential, prejudicial, discriminatory,   predatory, or anticompetitive. The commission shall ensure that   the independent organization certified under Section 39.151 for the   ERCOT power region procures ancillary services sufficient to manage   any reliability impacts of intermittent generation resources,   including variability across peak demand periods, and shall   directly assign the costs of such services to intermittent   generators consistent with cost-causation principles. In this   subsection, "ancillary services" means services necessary to   facilitate the transmission of electric energy including load   following, standby power, backup power, reactive power, and any   other services as the commission may determine by rule. On the   introduction of customer choice in the ERCOT power region,   acquisition of generation-related ancillary services on a   nondiscriminatory basis by the independent organization in ERCOT on   behalf of entities selling electricity at retail shall be deemed to   meet the requirements of this subsection.          SECTION 14.  Subchapter D, Chapter 38, Utilities Code, is   amended by adding Sections 38.074, 38.075, and 38.076 to read as   follows:          Sec. 38.074.  WEATHER EMERGENCY PREPAREDNESS. (a) The   commission by rule shall require each electric cooperative,   municipally owned utility, and transmission and distribution   utility providing transmission service in the ERCOT power region to   implement measures to prepare the cooperative's or utility's   facilities to maintain service quality and reliability during a   weather emergency according to standards adopted by the commission.          (b)  The commission shall impose an administrative penalty   on an entity, including a municipally owned utility or an electric   cooperative, that violates a rule adopted under this section in the   manner provided by Chapter 15.          Sec. 38.075.  INVOLUNTARY LOAD SHEDDING. (a) The   commission by rule shall adopt a system to allocate load shedding   among electric cooperatives, municipally owned utilities, and   transmission and distribution utilities providing transmission   service in the ERCOT power region during an involuntary load   shedding event initiated by an independent organization certified   under Section 39.151 for the region during an energy emergency.          (b)  The system must provide for allocations for electric   cooperatives, municipally owned utilities, and transmission and   distribution utilities in different seasons based on historical   seasonal peak usage in the geographic area served by the electric   cooperative, municipally owned utility, or transmission and   distribution utility.          (c)  The commission by rule shall:                (1)  categorize types of critical load that may be   given the highest priority for power restoration; and                (2)  require electric cooperatives, municipally owned   utilities, and transmission and distribution utilities providing   transmission service in the ERCOT power region to submit to the   commission and the independent organization certified under   Section 39.151 for the region:                      (A)  customers or circuits the cooperative or   utility has designated as critical load; and                      (B)  a plan for participating in load shedding in   response to an involuntary load shedding event described by   Subsection (a).          (d)  The commission by rule shall require electric   cooperatives and municipally owned utilities providing   transmission service in the ERCOT power region to:                (1)  maintain lists of customers willing to voluntarily   participate in load shedding; and                (2)  coordinate with municipalities, businesses, and   customers that consume large amounts of electricity to encourage   voluntary load shedding.          (e)  This section does not abridge, enlarge, or modify the   obligation of an electric cooperative, a municipally owned utility,   or a transmission and distribution utility to comply with federal   reliability standards.          Sec. 38.076.  LOAD SHEDDING EXERCISES. (a) The commission   and the independent organization certified for the ERCOT power   region shall conduct load shedding exercises with providers of   electric generation service and transmission and distribution   service in the ERCOT power region.          (b)  The commission shall ensure that each year at least one   exercise is conducted during a summer month and one exercise is   conducted during a winter month.          SECTION 15.  Subchapter C, Chapter 39, Utilities Code, is   amended by adding Section 39.110 to read as follows:          Sec. 39.110.  WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)   In this section, "wholesale indexed product" means a retail   electric product in which the price a customer pays for electricity   includes a direct pass-through of real-time settlement point prices   determined by the independent organization certified under Section   39.151 for the ERCOT power region.          (b)  A retail electric provider may not offer a wholesale   indexed product to a residential or small commercial customer.          SECTION 16.  Subchapter D, Chapter 39, Utilities Code, is   amended by adding Section 39.159 to read as follows:          Sec. 39.159.  WHOLESALE EMERGENCY PRICING PROCEDURES. (a)   The commission by rule shall establish an emergency system-wide   offer cap program based on actual costs of generation at the time of   the emergency for the wholesale electric market.          (b)  If the program includes more than one emergency   system-wide offer cap:                (1)  the program may not authorize the high system-wide   offer cap to be in effect for a continuous period of more than 12   hours;                (2)  the program may only allow for a low system-wide   offer cap that cannot exceed the high system-wide offer cap;                (3)  the program may not allow an emergency system-wide   offer cap to exceed any nonemergency high system-wide offer cap;   and                (4)  the price of ancillary services may not exceed 150   percent of the high system-wide offer cap.          (c)  The commission shall review the emergency system-wide   offer cap program at least once every five years to determine   whether to update aspects of the program.          SECTION 17.  Subchapter Z, Chapter 39, Utilities Code, is   amended by adding Section 39.9165 to read as follows:          Sec. 39.9165.  DISTRIBUTED GENERATION REPORTING. (a) In   this section, "distributed generation" is an electrical generating   facility that:                (1)  is located at a customer's point of delivery;                (2)  is connected at a voltage less than or equal to 60   kilovolts; and                (3)  may be connected in parallel operation to the   utility system.          (b)  An independent organization certified under Section   39.151 shall require an owner or operator of distributed generation   to register with the organization and interconnecting transmission   and distribution utility information necessary for the   interconnection of the distributed generator.          (c)  This section does not apply to distributed generation   serving a residential property.          SECTION 18.  Section 105.023, Utilities Code, is amended by   adding Subsections (b-1), (e), and (f) to read as follows:          (b-1)  Notwithstanding Subsection (b), a civil penalty under   this section shall be in an amount of not less than $1,000 and not   more than $1,000,000 for each violation of Section 104.258(c).          (e)  The railroad commission by rule shall establish a   classification system to be used by a court under this subchapter   for violations of Section 104.258(c) that includes a range of   penalties that may be recovered for each class of violation based   on:                (1)  the seriousness of the violation, including:                      (A)  the nature, circumstances, extent, and   gravity of a prohibited act; and                      (B)  the hazard or potential hazard created to the   health, safety, or economic welfare of the public;                (2)  the history of previous violations;                (3)  the amount necessary to deter future violations;                (4)  efforts to correct the violation; and                (5)  any other matter that justice may require.          (f)  The classification system established under Subsection   (e) shall provide that a penalty in an amount that exceeds $5,000   may be recovered only if the violation is included in the highest   class of violations in the classification system.          SECTION 19.  Section 121.2015, Utilities Code, is amended by   amending Subsection (a) and adding Subsections (d), (e), and (f) to   read as follows:          (a)  The railroad commission shall adopt rules regarding:                (1)  public education and awareness relating to gas   pipeline facilities; [and]                (2)  community liaison for responding to an emergency   relating to a gas pipeline facility; and                (3)  measures gas pipeline facility operators must   implement to prepare gas pipeline facilities to maintain service   quality and reliability during extreme weather conditions, taking   into consideration the supply chain map created under Section   418.309, Government Code.          (d)  The railroad commission by rule shall require a gas   pipeline facility operator that experiences repeated or major   weather-related forced interruptions of service to:                (1)  contract with a person who is not an employee of   the provider to assess the operator's weatherization plans,   procedures, and operations; and                (2)  submit the assessment to the commission.          (e)  The railroad commission may require an operator of a gas   supply chain facility to implement appropriate recommendations   included in an assessment submitted to the commission under   Subsection (d).          (f)  The railroad commission shall assess an administrative   penalty against a person who violates a rule adopted under   Subsection (a)(3) in the manner provided by Subchapter E.          SECTION 20.  Section 121.206, Utilities Code, is amended by   adding Subsections (b-1) and (e) to read as follows:          (b-1)  Notwithstanding Subsection (b), the penalty for each   violation may not exceed $1,000,000 for a violation of a rule   adopted under Section 121.2015(a)(3). Each day a violation   continues may be considered a separate violation for the purpose of   penalty assessment.          (e)  The guidelines must provide that a penalty in an amount   that exceeds $5,000 for a violation of a rule adopted under Section   121.2015(a)(3) may be assessed only if circumstances justify the   enhancement of the penalty.          SECTION 21.  The heading to Section 186.007, Utilities Code,   is amended to read as follows:          Sec. 186.007.  PUBLIC UTILITY COMMISSION WEATHER EMERGENCY   PREPAREDNESS REPORTS [REPORT].          SECTION 22.  Sections 186.007(a-1), (b), (d), (e), and (f),   Utilities Code, are amended to read as follows:          (a-1)  The commission shall analyze emergency operations   plans developed by electric utilities as defined by Section 31.002,   power generation companies as defined by Section 31.002,   municipally owned utilities, and electric cooperatives that   operate generation facilities in this state and retail electric   providers as defined by Section 31.002 and prepare a weather   emergency preparedness report on power [generation] weatherization   preparedness. In preparing the report, the commission shall:                (1)  review [the] emergency operations plans   [currently] on file with the commission;                (2)  analyze and determine the ability of the electric   grid to withstand extreme weather events in the upcoming year;                (3)  consider the anticipated weather patterns for the   upcoming year as forecasted by the National Weather Service or any   similar state or national agency; and                (4)  make recommendations on improving emergency   operations plans and procedures in order to ensure the continuity   of electric service.          (b)  The commission shall [may] require an [electric   generation] entity subject to this section to file an updated   emergency operations plan if it finds that an emergency operations   plan on file does not contain adequate information to determine   whether the [electric generation] entity can provide adequate   electric [generation] services.          (d)  The commission shall submit the report described by   Subsection (a-1) to the lieutenant governor, the speaker of the   house of representatives, and the members of the legislature not   later than September 30 of each even-numbered year[, 2012].          (e)  The commission may submit additional [subsequent]   weather emergency preparedness reports if the commission finds that   significant changes to weatherization techniques have occurred or   are necessary to protect consumers or vital services, or if there   have been changes to statutes or rules relating to weatherization   requirements. A report under this subsection must be submitted not   later than:                (1)  March 1 for a summer weather emergency   preparedness report; and                (2)  September 1 for a winter weather emergency   preparedness report.          (f)  The emergency operations plans submitted for a [the]   report described by Subsection (a-1) and any additional   [subsequent] plans submitted under Subsection (e) are public   information except for the portions of the plan considered   confidential under Chapter 552, Government Code, or other state or   federal law. If portions of a plan are designated as confidential,   the plan shall be provided to the commission in a redacted form for   public inspection with the confidential portions removed. An   [electric generation] entity within the ERCOT power region shall   provide the entity's plan to ERCOT in its entirety.          SECTION 23.  Subchapter A, Chapter 186, Utilities Code, is   amended by adding Section 186.008 to read as follows:          Sec. 186.008.  RAILROAD COMMISSION WEATHER EMERGENCY   PREPAREDNESS REPORTS. (a) In this section, "commission" means the   Railroad Commission of Texas.          (b)  The commission shall analyze emergency operations plans   developed by operators of gas supply chain facilities, as defined   by Section 86.044, Natural Resources Code, and by gas pipeline   facility operators regulated under Chapter 121 and prepare a   weather emergency preparedness report on natural gas supply chain   weatherization preparedness. In preparing the report, the   commission shall:                (1)  review any emergency operations plans on file with   the commission;                (2)  analyze and determine the ability of the natural   gas supply chain, as mapped under Section 418.309, Government Code,   to withstand extreme weather events in the upcoming year;                (3)  consider the anticipated weather patterns for the   upcoming year as forecasted by the National Weather Service or any   similar state or national agency; and                (4)  make recommendations on improving emergency   operations plans and procedures in order to ensure the continuity   of natural gas service.          (c)  The commission shall require an entity subject to this   section to file an updated emergency operations plan if it finds   that an emergency operations plan on file does not contain adequate   information to determine whether the entity can provide adequate   natural gas services.          (d)  The commission may adopt rules relating to the   implementation of the report described by Subsection (b).          (e)  The commission shall submit the report described by   Subsection (b) to the lieutenant governor, the speaker of the house   of representatives, and the members of the legislature not later   than September 30 of each even-numbered year.          (f)  The commission may submit additional weather emergency   preparedness reports if the commission finds that significant   changes to weatherization techniques have occurred or are necessary   to protect consumers or vital services, or if there have been   changes to statutes or rules relating to weatherization   requirements. A report under this subsection must be submitted not   later than:                (1)  March 1 for a summer weather emergency   preparedness report; and                (2)  September 1 for a winter weather emergency   preparedness report.          (g)  The emergency operations plans submitted for a report   described by Subsection (b) and any additional plans submitted   under Subsection (f) are public information except for the portions   of the plan considered confidential under Chapter 552, Government   Code, or other state or federal law. If portions of a plan are   designated as confidential, the plan shall be provided to the   commission in a redacted form for public inspection with the   confidential portions removed.          SECTION 24.  Section 13.1395(a), Water Code, is amended to   read as follows:          (a)  In this section:                (1)  "Affected utility" means a retail public utility,   exempt utility, or provider or conveyor of potable or raw water   service that furnishes water service to more than one customer[:                      [(A)  in a county with a population of 3.3 million   or more; or                      [(B)  in a county with a population of 550,000 or   more adjacent to a county with a population of 3.3 million or more].                (2)  "Emergency operations" means the operation of a   water system during an extended power outage at a minimum water   pressure of 35 pounds per square inch.                (3)  "Extended power outage" means a power outage   lasting for more than 24 hours.          SECTION 25.  Subchapter E, Chapter 13, Water Code, is   amended by adding Section 13.151 to read as follows:          Sec. 13.151.  BILLING FOR SERVICES PROVIDED DURING EXTREME   WEATHER EMERGENCY. (a) In this section, "extreme weather   emergency" means a period when:                (1)  the previous day's highest temperature did not   exceed 32 degrees Fahrenheit and the temperature is predicted to   remain at or below that level for the next 24 hours according to the   nearest National Weather Service reports; or                (2)  the National Weather Service issues a heat   advisory for any county in the relevant service territory, or when   such an advisory has been issued on any one of the previous two   calendar days.          (b)  A retail public utility that is required to possess a   certificate of public convenience and necessity or a district and   affected county that furnishes retail water or sewer utility   service shall defer collection of the full payment of bills that are   due during an extreme weather emergency until after the emergency   is over and shall work with customers to establish a pay schedule   for deferred bills.          SECTION 26.  Section 13.414, Water Code, is amended by   adding Subsections (a-1), (d), and (e) to read as follows:          (a-1)  Notwithstanding Subsection (a), a retail public   utility or affiliated interest that violates Section 13.151 is   subject to a civil penalty of not less than $100 nor more than   $1,000,000 for each violation.          (d)  The commission by rule shall establish a classification   system to be used by a court under this section for violations of   Section 13.151 that includes a range of penalties that may be   recovered for each class of violation based on:                (1)  the seriousness of the violation, including:                      (A)  the nature, circumstances, extent, and   gravity of a prohibited act; and                      (B)  the hazard or potential hazard created to the   health, safety, or economic welfare of the public;                (2)  the history of previous violations;                (3)  the amount necessary to deter future violations;                (4)  efforts to correct the violation; and                (5)  any other matter that justice may require.          (e)  The classification system established under Subsection   (d) shall provide that a penalty in an amount that exceeds $5,000   may be recovered only if the violation is included in the highest   class of violations in the classification system.          SECTION 27.  Section 13.4151, Water Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  Notwithstanding Subsection (a), the penalty for a   violation of Section 13.151 may be in an amount not to exceed   $1,000,000 a day. The utility commission may assess a penalty in an   amount that exceeds $5,000 under this subsection only if the   utility commission determines that a penalty in an amount that   exceeds $5,000 is justified based on the seriousness of the   violation as classified under Subsection (b). Each day a violation   continues may be considered a separate violation.          SECTION 28.  (a) The State Energy Plan Advisory Committee is   composed of 12 members. The governor, lieutenant governor, and   speaker of the house of representatives each shall appoint four   members to the advisory committee.          (b)  Not later than September 1, 2022, the State Energy Plan   Advisory Committee shall prepare a comprehensive state energy plan.   The plan must:                (1)  evaluate barriers in the electricity and natural   gas markets that prevent sound economic decisions;                (2)  evaluate methods to improve the reliability,   stability, and affordability of electric service in this state;                (3)  provide recommendations for removing the barriers   described by Subdivision (1) and using the methods described by   Subdivision (2); and                (4)  evaluate the electricity market structure and   pricing mechanisms used in this state.          (c)  The state energy plan prepared under this section must   be submitted to the legislature not later than September 1, 2022.          SECTION 29.  The Public Utility Commission of Texas and the   independent organization certified under Section 39.151, Utilities   Code, shall review statutes, rules, protocols, and bylaws that   apply to conflicts of interest for commissioners and for members of   the governing body of the independent organization and submit to   the legislature a report on the effects the statutes, rules,   protocols, and bylaws have on the ability of the commission and the   independent organization to fulfill their duties.          SECTION 30.  The Public Utility Commission of Texas shall   complete the first review required by Section 39.159(c), Utilities   Code, as added by this Act, not later than December 31, 2022.          SECTION 31.  (a) Not later than November 1, 2021, each   affected utility, as defined by Section 13.1395, Water Code, as   amended by this Act, shall complete the submissions required by   Section 13.1396(c), Water Code.          (b)  Not later than March 1, 2022, each affected utility   shall submit to the Texas Commission on Environmental Quality the   emergency preparedness plan required by Section 13.1395, Water   Code, as amended by this Act.          (c)  Not later than July 1, 2022, each affected utility shall   implement the emergency preparedness plan approved by the Texas   Commission on Environmental Quality under Section 13.1395, Water   Code, as amended by this Act.          (d)  An affected utility may file with the Texas Commission   on Environmental Quality a written request for an extension, not to   exceed 90 days, of the date by which the affected utility is   required under Subsection (b) of this section to submit the   affected utility's emergency preparedness plan or of the date by   which the affected utility is required under Subsection (c) of this   section to implement the affected utility's emergency preparedness   plan. The Texas Commission on Environmental Quality shall approve   the requested extension for good cause shown.          SECTION 32.  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, 2021.     * * * * *