87R11990 JXC-D     By: Johnson S.B. No. 2019       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the Public Utility Commission of   Texas, with the assistance of the Railroad Commission of Texas, to   take action to ensure that natural gas is available to supply power   generation facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 86, Natural Resources   Code, is amended by adding Section 86.044 to read as follows:          Sec. 86.044.  AUTHORITY OF COMMISSION AND PUBLIC UTILITY   COMMISSION DURING DISASTER OR OTHER EMERGENCY. (a) This section   applies only to a disaster or other emergency that causes a   widespread power outage.          (b)  On a declaration of a disaster or other emergency by the   governor, the Public Utility Commission of Texas may issue an order   to:                (1)  set the spot price of gas in the manner provided by   this section; and                (2)  take any other necessary action related to the gas   market to ensure that gas is available to supply power generation   facilities in the ERCOT power region, including ordering that all   gas be made available for sale for use by power generation   facilities in the ERCOT power region before being exported from   this state.          (c)  The Railroad Commission of Texas shall enforce an order   issued under Subsection (b).           (d)  The Public Utility Commission of Texas and the Railroad   Commission of Texas by rule shall adopt a memorandum of   understanding on the process the agencies will use to collaborate   for the purposes of this section.           (e)  An order issued under Subsection (b):                (1)  may set a spot price for gas that an operator of a   gas well may charge only for gas that the agencies determine could   reasonably be anticipated to be supplied through intrastate   transportation to a power generation facility that:                      (A)  is powered primarily by gas; and                      (B)  provides generation for the ERCOT power   region; and                 (2)  is effective only during the declared disaster or   other emergency.          SECTION 2.  Section 86.044, Natural Resources Code, as added   by this Act, does not apply to a price charged for natural gas under   a contract entered into before the effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2021.