S.B. No. 3         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, activation, and termination 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 criteria adopted under Section   411.301(b) for the activation of the alert has been met, 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   as soon as practicable after the Public Utility Commission of Texas   or the Electric Reliability Council of Texas notifies the   department that the criteria adopted under Section 411.301(b) for   the termination of the alert has been met.          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; DISASTER PREPAREDNESS   EDUCATION. (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.          (c)  The division shall develop disaster preparedness   educational materials that include instructions for preparing a   disaster kit containing supplies most needed in a disaster or   emergency, such as water, nonperishable food, medical supplies,   flashlights, and other essential items, to assist families and   businesses in adequately preparing for winter storms, hurricanes,   floods, drought, fires, and other potential disasters.          (d)  The division shall post on the division's Internet   website and distribute to local governments and businesses the   educational materials and instructions developed under Subsection   (c).          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. (a)  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.          (b)  Chapter 2110 does not apply to the council.          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, 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.  INFORMATION.  (a)  In this section:                (1)  "Gas provider" means:                      (A)  a natural gas pipeline facility operator;                      (B)  an operator of a natural gas well; or                      (C)  an entity that produces, treats, processes,   pressurizes, stores, or transports natural gas in this state or   otherwise participates in the natural gas supply chain in this   state.                (2)  "Public utility" means an entity that generates,   transmits, or distributes electric energy to the public, including   an electric cooperative, an electric utility, a municipally owned   utility, or a river authority.          (b)  A public utility or gas provider shall provide to the   council any information related to a disaster requested by the   council. Information obtained by the council under this subsection   is confidential and not subject to disclosure by the council if the   information is critical energy infrastructure information as   defined by the independent organization certified under Section   39.151, Utilities Code, for the ERCOT power region or federal law.          (c)  Except as provided by Subsection (d), the meetings of   the council and information obtained or created by the council are   not subject to the requirements of Chapter 551 or 552.          (d)  Information written, produced, collected, assembled, or   maintained under law or in connection with the transaction of   official business by the council or an officer or employee of the   council is subject to Section 552.008 in the same manner as public   information.          Sec. 418.310.  REPORT. (a)  Not later than November 1 of   each even-numbered year, the council shall submit to the   legislature a report on the reliability and stability of the   electricity supply chain in this state.          (b)  The report must include recommendations on methods to   strengthen the electricity supply chain in this state and to   decrease the frequency of extended power outages caused by a   disaster in this state.          SECTION 4.  Subchapter C, Chapter 81, Natural Resources   Code, is amended by adding Section 81.073 to read 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.          SECTION 5.  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;                (2)  not primarily used to support liquefied natural   gas pretreatment, liquefaction, or regasification facilities in   the business of exporting or importing liquefied natural gas to or   from foreign countries;                (3)  otherwise regulated by the commission under this   subtitle; and                (4)  not regulated by the commission under Chapter 121,   Utilities Code.          (b)  This section applies only to a gas supply chain facility   that is:                (1)  included on the electricity supply chain map   created under Section 38.203, Utilities Code; and                (2)  designated as critical by the commission in the   manner provided by Section 81.073.          (c)  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 weather predictions produced by the   office of the state climatologist.          (d)  The commission shall:                (1)  inspect gas supply chain facilities for compliance   with rules adopted under Subsection (c);                (2)  provide the owner of a facility described by   Subdivision (1) with a reasonable period of time in which to remedy   any violation the commission discovers in an inspection; and                (3)  report to the attorney general any violation that   is not remedied in a reasonable period of time.          (e)  The commission shall prioritize inspections conducted   under Subsection (d)(1) based on risk level, as determined by the   commission.          (f)  The commission by rule shall require an operator of a   gas supply chain facility that experiences repeated   weather-related or major weather-related forced interruptions of   production to:                (1)  contract with a person who is not an employee of   the operator to assess the operator's weatherization plans,   procedures, and operations; and                (2)  submit the assessment to the commission.          (g)  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 (f).          (h)  If the commission determines that a person has violated   a rule adopted under this section, the commission shall notify the   attorney general of a violation that is not remedied in a reasonable   amount of time. The attorney general shall initiate a suit to   recover a penalty for the violation in the manner provided by   Subchapter G.          SECTION 6.  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 7.  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 Section 35.0021 or 38.075 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 8.  Section 17.002, Utilities Code, is amended by   adding Subdivisions (3-a) and (3-b) to read as follows:                (3-a)  "Critical care residential customer" means a   residential customer who has a person permanently residing in the   customer's home who has been diagnosed by a physician as being   dependent upon an electric-powered medical device to sustain life.                (3-b)  "Critical load industrial customer" means an   industrial customer for whom an interruption or suspension of   electric service will create a dangerous or life-threatening   condition on the customer's premises.          SECTION 9.  Section 17.003, Utilities Code, is amended by   adding Subsection (d-1) 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 provide to the retail electric provider, and the   retail electric provider shall periodically provide to the retail   electric provider's retail customers together with bills sent to   the customers, information about:                (1)  the electric utility's procedures for implementing   involuntary load shedding initiated by the independent   organization certified under Section 39.151 for the ERCOT power   region;                (2)  the types of customers who may be considered   critical care residential customers, critical load industrial   customers, or critical load according to commission rules adopted   under Section 38.076;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer, a critical load   industrial customer, or critical load according to commission rules   adopted under Section 38.076; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          SECTION 10.  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, critical load industrial   customers, or critical load according to commission rules adopted   under Section 38.076;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer, a critical load   industrial customer, or critical load according to commission rules   adopted under Section 38.076; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          SECTION 11.  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, critical load industrial   customers, or critical load according to commission rules adopted   under Section 38.076;                (3)  the procedure for a customer to apply to be   considered a critical care residential customer, a critical load   industrial customer, or critical load according to commission rules   adopted under Section 38.076; and                (4)  reducing electricity use at times when involuntary   load shedding events may be implemented.          SECTION 12.  The heading to Chapter 35, Utilities Code, is   amended to read as follows:   CHAPTER 35. [ALTERNATIVE] ENERGY PROVIDERS          SECTION 13.  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, 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. In adopting the rules, the commission shall take into   consideration weather predictions produced by the office of the   state climatologist.          (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.          (c-1)  The independent organization certified under Section   39.151 for the ERCOT power region shall prioritize inspections   conducted under Subsection (c)(1) based on risk level, as   determined by the organization.          (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 any season and for any period of time.          (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 and   does not remedy that violation within a reasonable period of time.          SECTION 14.  Section 35.004, Utilities Code, is amended by   amending Subsection (e) and adding Subsections (f), (g), and (h) to   read as follows:          (e)  In this section, "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.          (f)  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. [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.          (g)  The commission shall:                (1)  review the type, volume, and cost of ancillary   services to determine whether those services will continue to meet   the needs of the electricity market in the ERCOT power region; and                (2)  evaluate whether additional services are needed   for reliability in the ERCOT power region while providing adequate   incentives for dispatchable generation.          (h)  The commission shall require the independent   organization certified under Section 39.151 for the ERCOT power   region to modify the design, procurement, and cost allocation of   ancillary services for the region in a manner consistent with   cost-causation principles and on a nondiscriminatory basis.          SECTION 15.  Subchapter B, Chapter 35, Utilities Code, is   amended by adding Section 35.037 to read as follows:          Sec. 35.037.  FACILITATING CERTAIN INTERCOMPANY LANDFILL   GAS-TO-ELECTRICITY USE. (a) This section only applies in a county   with a population of more than one million in which a national   wildlife refuge is wholly or partly located.          (b)  Notwithstanding any other provision of this title, and   for the purposes of reducing environmental emissions, putting to a   beneficial purpose landfill gas as an electric generation fuel that   would otherwise be flared, enabling the operation of electric   generation to a greater degree, and enhancing the reliability and   resilience of electric service in this state, a person who is not an   electric utility and who owns and operates equipment or facilities   to produce, generate, transmit, distribute, store, sell, or furnish   electricity produced by the use of landfill methane gas may:                (1)  use the equipment or facilities to provide   electricity and electric service to the person and to the person's   affiliates without being considered to be an electric utility, a   public utility, a retail electric provider, a power marketer, or a   person providing aggregation;                (2)  interconnect the equipment or facilities in a   timely manner and on reasonable and nondiscriminatory terms and   conditions with any electric utility, municipally owned utility, or   electric cooperative that has a retail service area for any portion   of the equipment or facilities; and                (3)  receive backup, supplemental, or other electric   service for any of the person's or the person's affiliates'   facilities that consume electricity from any electric utility,   municipally owned utility, or electric cooperative that has a   retail service area for any portion of the person's facilities or   equipment that are interconnected regardless of whether those   facilities are in the same retail service area as the location of   the interconnection point.          (c)  Backup, supplemental, or other electric service   provided under this section through an interconnection for a   person's electricity-consuming facilities that are connected to   the person's interconnected equipment or facilities does not   constitute a service area encroachment or other violation of law by   the electric utility, municipally owned utility, or electric   cooperative supplying the backup, supplemental, or other electric   service.          SECTION 16.  Subchapter D, Chapter 38, Utilities Code, is   amended by adding Sections 38.074, 38.075, 38.076, and 38.077 to   read as follows:          Sec. 38.074.  CRITICAL NATURAL GAS FACILITIES AND ENTITIES.   (a) The commission shall collaborate with the Railroad 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 during energy emergencies.          (b)  The rules must:                (1)  ensure that the independent organization   certified under Section 39.151 for the ERCOT power region and each   electric utility, municipally owned utility, and electric   cooperative providing service in the ERCOT power region is provided   with the information required by Section 81.073, Natural Resources   Code;                (2)  provide for prioritizing for load-shed purposes   during an energy emergency the facilities and entities designated   under Subsection (a); and                 (3)  provide discretion to an electric utility,   municipally owned utility, or electric cooperative providing   service in the ERCOT power region to prioritize power delivery and   power restoration among the facilities and entities designated   under Subsection (a) on the utility's or cooperative's systems, as   circumstances require.          Sec. 38.075.  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.     In adopting the rules, the commission shall take into consideration   weather predictions produced by the office of the state   climatologist.          (b)  The independent organization certified under Section   39.151 for the ERCOT power region shall:                (1)  inspect the facilities of each electric   cooperative, municipally owned utility, and transmission and   distribution utility providing transmission service in the ERCOT   power region for compliance with the reliability standards;                (2)  provide the owner of a facility described by   Subdivision (1) 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.          (c)  The independent organization certified under Section   39.151 for the ERCOT power region shall prioritize inspections   conducted under Subsection (b)(1) based on risk level, as   determined by the organization.          (d)  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 and   does not remedy that violation within a reasonable period of time.          (e)  Notwithstanding any other provision of this subtitle,   the commission shall allow a transmission and distribution utility   to design and operate a load management program for nonresidential   customers to be used where the independent organization certified   under Section 39.151 for the ERCOT power region has declared a Level   2 Emergency or a higher level of emergency or has otherwise directed   the transmission and distribution utility to shed load. A   transmission and distribution utility implementing a load   management program under this subsection shall be permitted to   recover the reasonable and necessary costs of the load management   program under Chapter 36. A load management program operated under   this subsection is not considered a competitive service.          Sec. 38.076.  INVOLUNTARY AND VOLUNTARY 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 the independent organization certified   under Section 39.151 for the region during an energy emergency.          (b)  The system must provide for allocation of the load   shedding obligation to each electric cooperative, municipally   owned utility, and transmission and distribution utility in   different seasons based on historical seasonal peak demand in the   service territory of 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 voluntary load reduction; and                (2)  coordinate with municipalities, businesses, and   customers that consume large amounts of electricity to encourage   voluntary load reduction.          (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.          (f)  After each load shedding event, the commission may   conduct an examination of the implementation of load shedding,   including whether each electric cooperative, municipally owned   utility, and transmission and distribution utility complied with   its plan as filed with the commission under Subsection (c)(2).          Sec. 38.077.  LOAD SHEDDING EXERCISES. (a) The commission   and the independent organization certified for the ERCOT power   region shall conduct simulated or tabletop 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   simulated or tabletop exercise is conducted during a summer month   and one simulated or tabletop exercise is conducted during a winter   month.          SECTION 17.  Chapter 38, Utilities Code, is amended by   adding Subchapter F to read as follows:   SUBCHAPTER F. TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND MAPPING   COMMITTEE          Sec. 38.201.  TEXAS ELECTRICITY SUPPLY CHAIN SECURITY AND   MAPPING COMMITTEE. (a) In this subchapter, "electricity supply   chain" means:                (1)  facilities and methods used for producing,   treating, processing, pressurizing, storing, or transporting   natural gas for delivery to electric generation facilities; and                (2)  critical infrastructure necessary to maintain   electricity service.          (b)  The Texas Electricity Supply Chain Security and Mapping   Committee is established to:                (1)  map this state's electricity supply chain;                (2)  identify critical infrastructure sources in the   electricity supply chain;                (3)  establish best practices to prepare facilities   that provide electric service and natural gas service in the   electricity supply chain to maintain service in an extreme weather   event and recommend oversight and compliance standards for those   facilities; and                (4)  designate priority service needs to prepare for,   respond to, and recover from an extreme weather event.          (c)  The committee is composed of:                (1)  the executive director of the commission;                 (2)  the executive director of the Railroad Commission   of Texas;                (3)  the president and the chief executive officer of   the independent organization certified under Section 39.151 for the   ERCOT power region; and                (4)  the chief of the Texas Division of Emergency   Management.          (d)  Each member of the committee may designate a personal   representative from the member's organization to represent the   member on the committee. A member is responsible for the acts and   omissions of the designee related to the designee's representation   on the committee.          (e)  The executive director of the commission serves as the   chair of the committee. The executive director of the Railroad   Commission of Texas serves as vice chair of the committee.          Sec. 38.202.  ADMINISTRATION. (a) The committee shall meet   at least once each calendar quarter at a time determined by the   committee and at the call of the chair.          (b)  A member who is an ex officio member from a state agency   shall be reimbursed for actual and necessary expenses in carrying   out committee responsibilities from money appropriated for that   purpose in the agency's budget. Other members of the committee may   receive reimbursement for actual and necessary expenses in carrying   out committee responsibilities from money appropriated for that   purpose.           (c)  The commission, the Railroad Commission of Texas, and   the Texas Division of Emergency Management shall provide staff as   necessary to assist the committee in carrying out the committee's   duties and responsibilities.          (d)  The independent organization certified under Section   39.151 for the ERCOT power region shall provide staff as necessary   to assist the committee in carrying out the committee's duties and   responsibilities.          (e)  Except as otherwise provided by this subchapter, the   committee is not subject to Chapters 2001, 551, and 552, Government   Code.          (f)  Information written, produced, collected, assembled, or   maintained under law or in connection with the transaction of   official business by the committee or an officer or employee of the   committee is subject to Section 552.008, Government Code.  This   subsection does not apply to the physical locations of critical   facilities, maps created under this subchapter, or proprietary   information created or gathered during the mapping process.          Sec. 38.203.  POWERS AND DUTIES OF COMMITTEE. (a) The   committee shall:                (1)  map the state's electricity supply chain in order   to designate priority electricity service needs during extreme   weather events;                (2)  identify and designate the sources in the   electricity supply chain necessary to operate critical   infrastructure, as defined by Section 421.001, Government Code;                (3)  develop a communication system between critical   infrastructure sources, the commission, and the independent   organization certified under Section 39.151 for the ERCOT power   region to ensure that electricity and natural gas supplies in the   electricity supply chain are prioritized to those sources during an   extreme weather event; and                (4)  establish best practices to prepare facilities   that provide electric service and natural gas service in the   electricity supply chain to maintain service in an extreme weather   event and recommend oversight and compliance standards for those   facilities.          (b)  The committee shall update the electricity supply chain   map at least once each year.          (c)  The commission shall:                (1)  create and maintain a database identifying   critical infrastructure sources with priority electricity needs to   be used during an extreme weather event; and                (2)  update the database at least once each year.          (d)  The information maintained in the database is   confidential under Section 418.181, Government Code, and not   subject to disclosure under Chapter 552, Government Code.          (e)  The committee shall provide the Texas Energy   Reliability Council with access to the electricity supply chain   map.          Sec. 38.204.  MAPPING REPORT. (a) Not later than January 1,   2022, the committee shall submit a report to the governor, the   lieutenant governor, the speaker of the house of representatives,   the legislature, and the Texas Energy Reliability Council on the   activities and findings of the committee. The report must:                (1)  provide an overview of the committee's findings   regarding mapping the electricity supply chain and identifying   sources necessary to operate critical infrastructure;                (2)  recommend a clear and thorough communication   system for the commission, the Railroad Commission of Texas, the   Texas Division of Emergency Management, and the independent   organization certified under Section 39.151 for the ERCOT power   region and critical infrastructure sources in this state to ensure   that electricity supply is prioritized to those sources during   extreme weather events; and                (3)  include a list of the established best practices   and recommended oversight and compliance standards adopted under   Section 38.203(a)(4).          (b)  The report is public information except for portions   considered confidential under Chapter 552, Government Code, or   other state or federal law.          SECTION 18.  Subchapter D, Chapter 39, Utilities Code, is   amended by adding Sections 39.159 and 39.160 to read as follows:          Sec. 39.159.  DISPATCHABLE GENERATION. (a)  For the   purposes of this section, a generation facility is considered to be   non-dispatchable if the facility's output is controlled primarily   by forces outside of human control.          (b)  The commission shall ensure that the independent   organization certified under Section 39.151 for the ERCOT power   region:                (1)  establishes requirements to meet the reliability   needs of the power region;                (2)  periodically, but at least annually, determines   the quantity and characteristics of ancillary or reliability   services necessary to ensure appropriate reliability during   extreme heat and extreme cold weather conditions and during times   of low non-dispatchable power production in the power region;                (3)  procures ancillary or reliability services on a   competitive basis to ensure appropriate reliability during extreme   heat and extreme cold weather conditions and during times of low   non-dispatchable power production in the power region;                (4)  develops appropriate qualification and   performance requirements for providing services under Subdivision   (3), including appropriate penalties for failure to provide the   services; and                (5)  sizes the services procured under Subdivision (3)   to prevent prolonged rotating outages due to net load variability   in high demand and low supply scenarios.          (c)  The commission shall ensure that:                (1)  resources that provide services under Subsection   (b) are dispatchable and able to meet continuous operating   requirements for the season in which the service is procured;                (2)  winter resource capability qualifications for a   service described by Subsection (b) include on-site fuel storage,   dual fuel capability, or fuel supply arrangements to ensure winter   performance for several days; and                (3)  summer resource capability qualifications for a   service described by Subsection (b) include facilities or   procedures to ensure operation under drought conditions.          Sec. 39.160.  WHOLESALE PRICING PROCEDURES. (a) The   commission by rule shall establish an emergency pricing program for   the wholesale electric market.          (b)  The emergency pricing program must take effect if the   high system-wide offer cap has been in effect for 12 hours in a   24-hour period after initially reaching the high system-wide offer   cap. The commission by rule shall determine the criteria for the   emergency pricing program to cease.          (c)  The emergency pricing program may not allow an emergency   pricing program cap to exceed any nonemergency high system-wide   offer cap.          (d)  The commission by rule shall establish an ancillary   services cap to be in effect during the period an emergency pricing   program is in effect.          (e)  Any wholesale pricing procedure that has a low   system-wide offer cap may not allow the low system-wide offer cap to   exceed the high system-wide offer cap.          (f)  The commission shall review each system-wide offer cap   program adopted by the commission, including the emergency pricing   program, at least once every five years to determine whether to   update aspects of the program.          (g)  The emergency pricing program must allow generators to   be reimbursed for reasonable, verifiable operating costs that   exceed the emergency cap.          SECTION 19.  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)  may be located at a customer's point of delivery;                (2)  is connected at a voltage less than 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 20.  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 21.  Section 121.2015, Utilities Code, is amended by   amending Subsection (a) and adding Subsections (a-1), (c-1), (c-2),   (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 a gas pipeline facility operator must   implement to prepare the gas pipeline facility to maintain service   quality and reliability during extreme weather conditions if the   gas pipeline facility:                      (A)  directly serves a natural gas electric   generation facility operating solely to provide power to the   electric grid for the ERCOT power region or for the ERCOT  power   region and an adjacent power region; and                      (B)  is included on the electricity supply chain   map created under Section 38.203.          (a-1)  In adopting rules under Subsection (a)(3), the   railroad commission shall take into consideration weather   predictions produced by the office of the state climatologist.          (c-1)  The railroad commission shall:                (1)  inspect gas pipeline facilities described by   Subsection (a)(3) for compliance with rules adopted under   Subsection (a)(3);                (2)  provide the owner of a facility described by   Subsection (a)(3) with a reasonable period of time in which to   remedy any violation the railroad commission discovers in an   inspection; and                (3)  report to the attorney general any violation that   is not remedied in a reasonable period of time.          (c-2)  The railroad commission shall prioritize inspections   conducted under Subsection (c-1)(1) based on risk level, as   determined by the railroad commission.          (d)  The railroad commission by rule shall require a gas   pipeline facility operator described by Subsection (a)(3) that   experiences repeated or major weather-related forced interruptions   of service to:                (1)  contract with a person who is not an employee of   the operator 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   pipeline facility described by Subsection (a)(3) 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) if the violation is not remedied in a reasonable   period of time in the manner provided by this subchapter.          SECTION 22.  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 23.  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 24.  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 25.  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 facilities that produce, treat, process,   pressurize, store, or transport natural gas and are included on the   electricity supply chain map created under Section 38.203 and   prepare a weather emergency preparedness report on weatherization   preparedness of those facilities. 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   electricity supply chain, as mapped under Section 38.203, 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 for the electricity supply chain, as mapped   under Section 38.203.          (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 26.  Subchapter E, Chapter 13, Water Code, is   amended by adding Section 13.1394 to read as follows:          Sec. 13.1394.  STANDARDS OF EMERGENCY OPERATIONS. (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:                      (A)  furnishes water service to more than one   customer; and                      (B)  is not an affected utility under Section   13.1395.                (2)  "Emergency operations" means the operation of a   water system during an extended power outage that impacts the   operating affected utility.                (3)  "Extended power outage" means a power outage   lasting for more than 24 hours.          (b)  An affected utility shall:                (1)  ensure the emergency operation of its water system   during an extended power outage at a minimum water pressure of 20   pounds per square inch, or at a water pressure level approved by the   commission, as soon as safe and practicable following the   occurrence of a natural disaster; and                (2)  adopt and submit to the commission for its   approval:                      (A)  an emergency preparedness plan that   demonstrates the utility's ability to provide the emergency   operations described by Subdivision (1); and                      (B)  a timeline for implementing the plan   described by Paragraph (A).          (c)  The commission shall review an emergency preparedness   plan submitted under Subsection (b). If the commission determines   that the plan is not acceptable, the commission shall recommend   changes to the plan. The commission must make its recommendations   on or before the 90th day after the commission receives the plan.   In accordance with commission rules, an emergency preparedness plan   for a provider of potable water shall provide for one or more of the   following:                (1)  the maintenance of automatically starting   auxiliary generators;                (2)  the sharing of auxiliary generator capacity with   one or more affected utilities, including through participation in   a statewide mutual aid program;                (3)  the negotiation of leasing and contracting   agreements, including emergency mutual aid agreements with other   retail public utilities, exempt utilities, or providers or   conveyors of potable or raw water service, if the agreements   provide for coordination with the division of emergency management   in the governor's office;                (4)  the use of portable generators capable of serving   multiple facilities equipped with quick-connect systems;                (5)  the use of on-site electrical generation or   distributed generation facilities;                (6)  hardening the electric transmission and   distribution system serving the water system;                (7)  for existing facilities, the maintenance of direct   engine or right angle drives;                (8)  designation of the water system as a critical load   facility or redundant, isolated, or dedicated electrical feeds;                (9)  water storage capabilities;                (10)  water supplies delivered from outside the service   area of the affected utility;                (11)  the ability to provide water through artesian   flows;                (12)  redundant interconnectivity between pressure   zones;                (13)  emergency water demand rules to maintain   emergency operations; or                (14)  any other alternative determined by the   commission to be acceptable.          (d)  Each affected utility that supplies, provides, or   conveys raw surface water shall include in its emergency   preparedness plan under Subsection (b) provisions for   demonstrating the capability of each raw water intake pump station,   pump station, and pressure facility to provide raw water service to   its wholesale customers during emergencies. This subsection does   not apply to raw water services that are unnecessary or otherwise   subject to interruption or curtailment during emergencies under a   contract.          (e)  The commission shall adopt rules to implement this   section as an alternative to any rule requiring elevated storage.          (f)  The commission shall provide an affected utility with   access to the commission's financial, managerial, and technical   contractors to assist the utility in complying with the applicable   emergency preparedness plan submission deadline.          (g)  The commission by rule shall create an emergency   preparedness plan template for use by an affected utility when   submitting a plan under this section. The emergency preparedness   plan template shall contain:                (1)  a list and explanation of the preparations an   affected utility may make under Subsection (c) for the commission   to approve the utility's emergency preparedness plan; and                (2)  a list of all commission rules and standards   pertaining to emergency preparedness plans.          (h)  An emergency generator used as part of an approved   emergency preparedness plan under Subsection (c) must be operated   and maintained according to the manufacturer's specifications.          (i)  The commission shall inspect each utility to ensure that   the utility complies with the approved plan.          (j)  The commission shall consider whether compliance with   this section will cause a significant financial burden on customers   of an affected utility when making recommended changes under   Subsection (c).          (k)  An affected utility may adopt and enforce limitations on   water use while the utility is providing emergency operations.          (l)  Except as specifically required by this section,   information provided by an affected utility under this section is   confidential and is not subject to disclosure under Chapter 552,   Government Code.          (m)  The commission shall coordinate with the utility   commission in the administration of this section.          SECTION 27.  The heading to Section 13.1395, Water Code, is   amended to read as follows:          Sec. 13.1395.  STANDARDS OF EMERGENCY OPERATIONS IN CERTAIN   COUNTIES.          SECTION 28.  Section 13.1395(d), Water Code, is amended to   read as follows:          (d)  This subsection does not apply to raw water services   that are unnecessary or otherwise subject to interruption or   curtailment during emergencies under a contract. Each affected   utility that supplies, provides, or conveys surface water shall   include in its emergency preparedness plan under Subsection (b)   provisions:                (1)  for the actual installation and maintenance of   automatically starting auxiliary generators or distributive   generation facilities for each raw water intake pump station, water   treatment plant, pump station, and pressure facility necessary to   provide water to its wholesale customers during emergencies; or                (2)  that demonstrate the capability of each raw water   intake pump station, water treatment plant, pump station, and   pressure facility to provide water to its wholesale customers   during emergencies through alternative means acceptable to the   commission.          SECTION 29.  Section 13.1396, Water Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  This section applies only to an affected utility, as   defined by Section 13.1394 or 13.1395.          SECTION 30.  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 the previous day's highest   temperature did not exceed 28 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.          (b)  A retail public utility that is required to possess a   certificate of public convenience and necessity or a district or   affected county that furnishes retail water or sewer utility   service shall not impose late fees or disconnect service for   nonpayment of bills that are due during an extreme weather   emergency until after the emergency is over and shall work with   customers that request to establish a payment schedule for unpaid   bills that are due during the extreme weather emergency.          SECTION 31.  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   $50,000 for each violation.          (d)  The utility 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 32.  Section 13.1396(a)(1), Water Code, is repealed.          SECTION 33.  (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) of this subsection and using the   methods described by Subdivision (2) of this subsection; and                (4)  evaluate the electricity market structure and   pricing mechanisms used in this state, including the ancillary   services market and emergency response services.          (c)  The state energy plan prepared under this section must   be submitted to the legislature not later than September 1, 2022.          SECTION 34.  The Public Utility Commission of Texas and the   independent organization certified under Section 39.151, Utilities   Code, shall annually 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 35.  The Public Utility Commission of Texas shall   complete the first review required by Section 39.160(f), Utilities   Code, as added by this Act, not later than December 31, 2021.          SECTION 36.  (a) Not later than November 1, 2021, each   affected utility, as defined by Section 13.1394, Water Code, as   added 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 13.1394, Water   Code, as added by this Act.          (c)  Not later than July 1, 2022, or upon final approval by   the commission, each affected utility shall implement the emergency   preparedness plan approved by the Texas Commission on Environmental   Quality under Section 13.1394, Water Code, as added by this Act.          (d)  An affected utility, as defined by Section 13.1394,   Water Code, as added by this Act, 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 37.  The Texas Electricity Supply Chain Security and   Mapping Committee shall produce the map required under Section   38.203, Utilities Code, as added by this Act, not later than   September 1, 2022.          SECTION 38.  Not later than six months after the date the   Texas Electricity Supply Chain Security and Mapping Committee   produces the map required under Section 38.203, Utilities Code, as   added by this Act, the Railroad Commission of Texas shall adopt   rules necessary to implement:                (1)  Section 86.044, Natural Resources Code, as added   by this Act; and                (2)  Section 121.2015, Utilities Code, as amended by   this Act.          SECTION 39.  Not later than six months after the effective   date of this Act, the Public Utility Commission of Texas shall adopt   rules necessary to implement:                (1)  Section 35.0021, Utilities Code, as added by this   Act; and                (2)  Section 38.075, Utilities Code, as added by this   Act.          SECTION 40.  It is the intent of the legislature that this   Act not restrict or amend the sole jurisdiction of the Railroad   Commission of Texas to establish rules or requirements relating to   curtailment orders for facilities and entities in the commission's   jurisdiction under the Natural Resources Code or the Utilities   Code.          SECTION 41.  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.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 3 passed the Senate on   March 29, 2021, by the following vote:  Yeas 31, Nays 0;   May 27, 2021, Senate refused to concur in House amendments and   requested appointment of Conference Committee; May 28, 2021, House   granted request of the Senate; May 30, 2021, Senate adopted   Conference Committee Report by the following vote:  Yeas 31,   Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 3 passed the House, with   amendments, on May 24, 2021, by the following vote:  Yeas 142,   Nays 1, one present not voting; May 28, 2021, House granted request   of the Senate for appointment of Conference Committee;   May 30, 2021, House adopted Conference Committee Report by the   following vote:  Yeas 142, Nays 0, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________               Date       ______________________________              Governor