87S30260 BRG-F     By: Huberty H.B. No. 97       A BILL TO BE ENTITLED   AN ACT   relating to the funding of projects by the Texas Water Development   Board to promote utility reliability, resiliency, efficiency,   conservation, and demand reduction; authorizing the issuance of   revenue bonds.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a)  The legislature recognizes the importance   of providing for the reliability and resiliency of this state's   utilities, broadband providers, and power generation companies.   The purpose of this Act is to ensure that proper funding in the form   of meaningful and adequate financial assistance is available to   enhance the reliability and resiliency of water, electric, and   natural gas utilities, broadband providers, and power generation   companies in this state, including by supporting projects to   weatherize facilities, provide resilience, and reduce demand   during periods of high demand.          (b)  To accomplish that purpose, this Act creates the state   utilities reliability fund. The fund is intended to serve as an   infrastructure funding source in order to enhance the financing   capabilities of the Texas Water Development Board under a   constitutionally created program and a revenue bond program. Money   in the fund will be available to provide any financial assistance,   including market rate, low-interest, and no-interest loans, longer   repayment terms for loans, deferral of loan payments, interest rate   rebates and subsidies, loan guarantees, grants, or other financial   assistance that meets the needs of this state, the recipients, and   the purposes of this Act, as provided by Sections 49-d-15 and   49-d-16, Article III, Texas Constitution.  In addition, this Act   creates the state utilities reliability revenue fund for use in   managing revenue bonds issued by the Texas Water Development Board   that are supported by the state utilities reliability fund.  The   state utilities reliability fund and the state utilities   reliability revenue fund are not intended to be used to pay for new,   dispatchable sources of electricity to be built by private   entities.          SECTION 2.  Chapter 447, Government Code, is amended by   adding Section 447.014 to read as follows:          Sec. 447.014.  ENERGY EFFICIENCY, NATURAL GAS CONSERVATION,   AND WATER CONSERVATION LOAN PROGRAM. (a) Using money available   from the state utilities reliability fund established under Chapter   202, Utilities Code, the comptroller and the State Energy   Conservation Office jointly by rule shall establish and administer   a program that issues or guarantees loans to be used for   improvements that increase the energy efficiency of and promote   conservation of natural gas and water by residences and businesses   that are not newly constructed.          (b)  The rules adopted under this section must establish   eligibility requirements for receipt of a loan issued or guaranteed   under the program, including emissions reduction   cost-effectiveness criteria.          (c)  The State Energy Conservation Office annually shall   submit to the Public Utility Commission of Texas and the Energy   Systems Laboratory of the Texas A&M Engineering Experiment Station   a report that:                (1)  evaluates the effectiveness of the program; and                (2)  quantifies energy savings and emissions   reductions that result from the program for consideration in the   state implementation plan, as described by Section 382.0173, Health   and Safety Code, for emissions reduction credits.          SECTION 3.  Title 4, Utilities Code, is amended by adding   Subtitle C to read as follows:   SUBTITLE C.  RELIABILITY AND RESILIENCY OF UTILITIES, BROADBAND   PROVIDERS, AND POWER GENERATORS   CHAPTER 201.  GENERAL PROVISIONS          Sec. 201.001.  DEFINITIONS. In this subtitle:                (1)  "Advisory committee" means the State Utilities   Reliability Fund Advisory Committee.                (2)  "Board" means the Texas Water Development Board.                (3)  "Broadband provider" means any person,   corporation, municipality or other political subdivision, or   agency that owns or operates for compensation in this state   facilities to provide broadband telecommunications capability and   Internet access in this state.                (4)  "Commission" means the Public Utility Commission   of Texas.                (5)  "Electric utility" has the meaning assigned by   Section 31.002, except that the term includes an electric   cooperative organized under Chapter 161 and a municipally owned   utility.                (6)  "Executive administrator" means the executive   administrator of the Texas Water Development Board.                (7)  "Facilities" means all of the property, plants,   and equipment of an electric, natural gas, or water utility, a   broadband provider, or a power generation company.  The term   includes tangible property owned, operated, leased, used,   controlled, or supplied for, by, or in connection with the business   of the electric, natural gas, or water utility, the broadband   provider, or the power generation company in this state.                (8)  "Fund" means the state utilities reliability fund.                (9)  "Historically underutilized business" has the   meaning assigned by Section 2161.001, Government Code.                (10)  "Natural gas utility" means a person who owns or   operates for compensation in this state facilities to transmit or   distribute combustible hydrocarbon natural gas or synthetic   natural gas for sale or resale in a manner not subject to the   jurisdiction of the Federal Energy Regulatory Commission under the   Natural Gas Act (15 U.S.C. Section 717 et seq.).                (11)  "Power generation company" has the meaning   assigned by Section 31.002.                (12)  "Railroad commission" means the Railroad   Commission of Texas.                (13)  "Revenue fund" means the state utilities   reliability revenue fund.                (14)  "State Energy Conservation Office" means a unit   of the comptroller of public accounts.                (15)  "Trust company" means the Texas Treasury   Safekeeping Trust Company.                (16)  "Water utility" means a person operating,   maintaining, or controlling in this state facilities for providing   potable water service or wastewater service, or both, for   compensation.   CHAPTER 202.  STATE UTILITIES RELIABILITY FUND          Sec. 202.001.  FUND. (a)  The state utilities reliability   fund is a special fund in the state treasury outside the general   revenue fund to be used by the board as authorized by this chapter   without further legislative appropriation.  The board may establish   separate accounts in the fund and may transfer funds between   accounts. The board may invest, reinvest, and direct the   investment of money in the fund.  The fund and the fund's accounts   may be kept and held by the trust company for and in the name of the   board. The board has legal title to money and investments in the   fund until money is disbursed from the fund as provided by this   chapter and board rules.          (b)  Money deposited to the credit of the fund may be used   only as provided by Section 202.003.          (c)  The fund consists of:                (1)  money appropriated to the fund;                (2)  money transferred or deposited to the credit of   the fund by law, including money from any source transferred or   deposited to the credit of the fund at the board's discretion as   authorized by law;                (3)  the proceeds of any fee or tax imposed by this   state that by statute is dedicated for deposit to the credit of the   fund;                (4)  any other revenue that the legislature by statute   dedicates for deposit to the credit of the fund;                (5)  investment earnings and interest earned on amounts   credited to the fund;                (6)  repayments of loans made from the fund; and                (7)  money transferred to the fund from another fund or   account to which money from the fund was transferred.          Sec. 202.002.  MANAGEMENT AND INVESTMENT OF FUND. (a)  The   board or the trust company may hold and invest the fund, and any   accounts established in the fund, for and in the name of the board,   taking into account the purposes for which money in the fund may be   used.  The fund may be invested with the state treasury pool.          (b)  The overall objectives for the investment of the fund   are, in order of precedence:                (1)  preservation and safety of the fund principal;                (2)  liquidity; and                (3)  investment yield.          (c)  The board or the trust company, as directed by the   board, has any power necessary to accomplish the purposes of   managing and investing the assets of the fund. In managing the   assets of the fund, through procedures and subject to restrictions   the board or the trust company considers appropriate, the board or   the trust company may acquire, exchange, sell, supervise, manage,   or retain any kind of investment that a prudent investor,   exercising reasonable care, skill, and caution, would acquire or   retain in light of the purposes, terms, distribution requirements,   and other circumstances of the fund then prevailing, taking into   consideration the investment of all the assets of the fund rather   than a single investment.          (d)  If the fund is managed by the trust company, the trust   company may charge fees to cover its costs incurred in managing and   investing the fund. The fees must be consistent with the fees the   trust company charges other state and local governmental entities   for which the trust company provides investment management   services. The trust company may recover fees the trust company   charges under this subsection only from the earnings of the fund.          (e)  If the fund is managed by the trust company, the trust   company annually shall provide a report to the board and to the   advisory committee with respect to the investment of the fund. The   trust company shall contract with a certified public accountant to   conduct an independent audit of the fund annually and shall present   the results of each annual audit to the board and to the advisory   committee. This subsection does not affect the state auditor's   authority to conduct an audit of the fund under Chapter 321,   Government Code.          (f)  The board or trust company shall adopt a written   investment policy that is appropriate for the fund. If the fund is   managed by the trust company:                (1)  the trust company shall present the investment   policy to the board and the investment advisory board established   under Section 404.028, Government Code; and                (2)  the board and investment advisory board shall   submit to the trust company recommendations regarding the policy.          (g)  If the fund is managed by the trust company, the board   annually shall provide to the trust company a forecast of the cash   flows into and out of the fund. The board shall provide updates to   the forecasts as appropriate to assist the trust company in   achieving the objectives specified by Subsection (b).          (h)  If the fund is managed by the trust company, the company   shall disburse money from the fund as directed by the board.  The   board shall direct disbursements from the fund on a schedule   specified by the board.  If any applicable revenue bonds are   outstanding, the board shall direct disbursements from the fund not   more frequently than twice in any state fiscal year.          (i)  An investment-related contract entered into under this   section is not subject to Chapter 2260, Government Code.          Sec. 202.003.  USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS   OR ACCOUNTS. (a)  The board or the trust company at the direction of   the board shall make disbursements from the fund to the revenue fund   in the amounts the board determines are needed for disbursement   through the financing structures developed to meet the goals of the   fund, including transfer of those amounts to other board programs   or funds as necessary, or for debt service payments on or security   provisions of the board's revenue bonds, after considering all   other sources available for those purposes.          (b)  The fund may be used only to:                (1)  enhance the reliability and resiliency of water,   electric, and natural gas utilities, broadband providers, and power   generation companies for this state by supporting projects,   including projects to weatherize facilities and reduce demand, in   order to provide resilience and continuous service during periods   of high demand;                (2)  pay the necessary and reasonable expenses of the   board in administering the fund; and                (3)  transfer funds to other board programs or funds.          (c)  Notwithstanding any other provision of this chapter,   the use of the fund may be prioritized based on a statewide utility   reliability and resiliency plan adopted under Section 202.010.          (d)  The board may provide financial assistance from the fund   for:                (1)  a water utility project;                (2)  an electric utility project;                (3)  a natural gas utility project;                (4)  a power generation company project;                (5)  a water utility, electric utility, or natural gas   utility project to reduce demand; or                (6)  a broadband provider to provide matching funds to   enable the broadband provider to participate in a federal program   for broadband facilities.          (e)  Financial assistance under Subsection (d) may be   provided in any form as determined by the board, including a market   rate, low-interest, or no-interest loan, a loan guarantee, an   equity ownership in a public or private entity, a joint venture with   a public or private entity, a grant, an interest rebate, or an   interest subsidy.          (f)  In providing financial assistance under Subsection (d),   the board may make, enter into, and enforce contracts, agreements,   including management agreements, for the management of any of the   board's property, leases, indentures, mortgages, deeds of trust,   security agreements, pledge agreements, credit agreements,   overrides or other revenue sharing mechanisms, repurchase   agreements, and other instruments with any person, including any   lender and any federal, state, or local governmental agency, and to   take other actions as may accomplish any of its purposes.          (g)  The board may contract with and provide for the   compensation of consultants and agents, including engineers,   attorneys, management consultants, financial advisors, indexing   agents, and other experts, as the business of the board under this   chapter may require.          (h)  The fund may not be used to subsidize or finance the   construction of facilities that the board determines, in the   board's sole discretion, will result in new electric generation   capacity.          (i)  Money in the fund may not be used for the purposes of   certification under Section 403.121, Government Code.          Sec. 202.004.  PRIORITIZATION OF PROJECTS BY BOARD. (a)  The   board, for the purpose of providing financial assistance under this   chapter, shall prioritize projects that enhance the reliability and   resiliency of water, electric, and natural gas utilities, broadband   providers, and power generation companies in this state.          (b)  The board shall establish a point system for   prioritizing projects for which financial assistance is sought from   the board. The system must include a standard for the board to   apply in determining whether a project qualifies for financial   assistance at the time the application for financial assistance is   filed with the board.          (c)  The board shall give the highest consideration in   awarding points to projects that will have a substantial effect,   including projects that will:                (1)  harden facilities to protect against extreme   weather and fuel supply disruptions;                (2)  enhance resiliency of existing facilities during   periods of high demand;                (3)  enhance the availability of fuel or water to   existing power generation companies and electric utilities to   improve the reliability of those companies and utilities to provide   continuous and adequate electric service during periods of high   demand;                (4)  improve local resiliency by reducing demand   through energy efficiency measures, advanced metering   infrastructure deployment, and demand response technology   deployment; and                (5)  provide broadband service in low-income and rural   communities.          (d)  In addition to the criteria provided by Subsection (c),   the board may also consider the following criteria in prioritizing   projects:                (1)  other funding sources secured by the applicant for   the project, including any capital to be provided by the applicant;                (2)  the financial capacity of the applicant to repay   the financial assistance provided; and                (3)  the ability of the applicant to timely leverage   state financing with local, federal, or private funding.          (e)  The board shall consider federal tax subsidies in   prioritizing projects.          Sec. 202.005.  ADVISORY COMMITTEE. (a)  The State Utilities   Reliability Fund Advisory Committee is composed of the following   members:                (1)  the comptroller, or a person designated by the   comptroller;                (2)  three members of the senate appointed by the   lieutenant governor, including:                      (A)  a member of the committee of the senate   having primary jurisdiction over matters relating to finance; and                      (B)  a member of the committee of the senate   having primary jurisdiction over natural resources;                (3)  three members of the house of representatives   appointed by the speaker of the house of representatives,   including:                      (A)  a member of the committee of the house of   representatives having primary jurisdiction over appropriations;   and                      (B)  a member of the committee of the house of   representatives having primary jurisdiction over natural   resources;                (4)  the chief executive of the Office of Public   Utility Counsel, or a person designated by the chief executive of   the Office of Public Utility Counsel;                (5)  the presiding officer of the commission, or a   person designated by the presiding officer of the commission;                 (6)  the chair of the Texas Reliability Entity board of   directors, or a person designated by a public vote of the Texas   Reliability Entity; and                (7)  an unaffiliated board member of the Electric   Reliability Council of Texas, appointed in a public meeting of the   Electric Reliability Council of Texas.          (b)  The board shall provide staff as necessary to assist the   advisory committee.          (c)  An appointed member of the advisory committee serves at   the will of the officer who appointed the member.          (d)  The lieutenant governor shall appoint a co-presiding   officer of the advisory committee from among the members appointed   by the lieutenant governor, and the speaker of the house of   representatives shall appoint a co-presiding officer of the   committee from among the members appointed by the speaker.          (e)  The advisory committee shall hold public hearings,   formal meetings, or work sessions in a location with audio and video   capacity. The board shall broadcast over the Internet live video   and audio of each public hearing, formal meeting, or work session of   the advisory committee and provide access to each broadcast on the   board's Internet website.  Either co-presiding officer of the   advisory committee may call a public hearing, formal meeting, or   work session of the advisory committee after issuing a public   notice not later than the seventh day before the date of the public   hearing, formal meeting, or work session. The public notice must   include an agenda with formal actions included. The advisory   committee may not take formal action at a public hearing, formal   meeting, or work session unless a quorum of the committee is   present. The board shall provide access on the board's Internet   website to the public notices, recordings of the live broadcasts,   and minutes of public hearings, formal meetings, and work sessions.          (f)  Except as otherwise provided by this subsection, a   member of the advisory committee is not entitled to receive   compensation for service on the committee or reimbursement for   expenses incurred in the performance of official duties as a member   of the committee.  Service on the advisory committee by a member of   the senate or house of representatives is considered legislative   service for which the member is entitled to reimbursement and other   benefits in the same manner and to the same extent as for other   legislative service.          (g)  The advisory committee shall submit comments and   recommendations to the board regarding the use of money in the fund   and in the revenue fund for use by the board in adopting rules under   Section 202.006 and in adopting policies and procedures under   Section 202.008. The submission must include:                (1)  comments and recommendations on rulemaking   related to the prioritization of projects in accordance with   Section 202.004;                (2)  comments and recommendations on rulemaking   related to establishing standards for determining whether projects   meet the criteria provided by Section 202.003;                (3)  an evaluation of the available programs for   providing financing for projects authorized by this chapter and   guidelines for implementing those programs;                (4)  an evaluation of the lending practices of the   board and guidelines for lending standards;                (5)  an evaluation of the use of funds by the board to   provide support for financial assistance for projects that enhance   the reliability and resiliency of water, electric, and natural gas   utilities, broadband providers, and power generation companies for   this state, including support for the purposes described by Section   202.003(b);                (6)  an evaluation of methods for encouraging   participation in the programs established under this chapter by   companies domiciled in this state or that employ a significant   number of residents of this state; and                (7)  an evaluation of the overall operation, function,   and structure of the fund.          (h)  The advisory committee shall review the overall   operation, function, and structure of the fund at least   semiannually and may provide comments and recommendations to the   board on any matter.          (i)  The advisory committee may adopt rules, procedures, and   policies as needed to administer this section and implement its   responsibilities.          (j)  Chapter 2110, Government Code, does not apply to the   size, composition, or duration of the advisory committee.          (k)  The advisory committee is subject to Chapter 325,   Government Code (Texas Sunset Act). Unless continued in existence   as provided by that chapter, the advisory committee is abolished   and this section expires September 1, 2035.          (l)  The advisory committee shall make recommendations to   the board regarding information to be posted on the board's   Internet website under Section 202.007(b).          (m)  The advisory committee shall evaluate and may provide   comments or recommendations on the feasibility of the state owning,   constructing, and operating water, electric, natural gas, power   generation, or broadband facilities related to the purposes   described by Section 202.003(b).          (n)  The executive administrator shall provide an annual   report to the advisory committee on:                (1)  the board's compliance with statewide annual goals   relating to historically underutilized businesses; and                (2)  the participation level of historically   underutilized businesses in projects that receive funding under   this chapter.          (o)  If the aggregate level of participation by historically   underutilized businesses in projects that receive funding under   this chapter does not meet statewide annual goals adopted under   Chapter 2161, Government Code, the advisory committee shall make   recommendations to the board to improve the participation level.          Sec. 202.006.  RULES. (a)  The board shall adopt rules   providing for the use of money in the fund that are consistent with   this subchapter, including rules:                (1)  establishing standards for determining whether   projects meet the criteria provided by Section 202.003;                (2)  providing for public access to information on   financing assistance applications and providing for consideration   of public comment before financing decisions are made; and                (3)  specifying the manner for prioritizing projects   for purposes of Section 202.004.          (b)  The board shall give full consideration to the   recommendations of the advisory committee before adopting rules   under this chapter.          Sec. 202.007.  REPORTING AND TRANSPARENCY REQUIREMENTS. (a)     Not later than December 1 of each even-numbered year, the board   shall provide a report to the governor, lieutenant governor,   speaker of the house of representatives, and members of the   legislature regarding the use of the fund.          (b)  The board shall post the following information on the   board's Internet website regarding the use of the fund and   regularly update the information posted:                (1)  the progress made in enhancing critical water,   electric, natural gas, and broadband infrastructure to withstand   periods of high demand; and                (2)  a description of each project funded through the   fund, including the expected date of completion of the project.          Sec. 202.008.  POLICIES AND PROCEDURES TO MITIGATE OR   MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall   adopt, and may amend from time to time at the board's discretion,   policies and procedures for the purpose of mitigating or minimizing   the adverse effects, if any, of federal laws and regulations   relating to income taxes, arbitrage, rebates, and related matters   that may restrict the board's ability to freely invest all or part   of the fund or to receive and retain all the earnings from the fund.          Sec. 202.009.  COOPERATION WITH OTHER STATE AGENCIES. (a)   The commission, railroad commission, the State Energy Conservation   Office, and other state agencies shall provide resources to the   board that the board determines are necessary to carry out the   board's duties and responsibilities under this chapter.          (b)  The board may require the commission to review and   recommend for approval electric utility, power generation company,   and broadband provider projects for board assistance under this   chapter and inspect electric utility, power generation company, and   broadband provider projects after board financial assistance.          (c)  The board may require the railroad commission to review   and recommend for approval natural gas utility and power generation   projects for board assistance under this chapter and inspect   natural gas utility and power generation company projects after   board financial assistance.          (d)  The board may require any other state agency to provide   services to the board to ensure the goals of the fund and this   chapter are met.          Sec. 202.010.  RELIABILITY AND RESILIENCY STUDY AND PLAN.   (a)  The board may, at any time, develop and conduct a study of the   needs, causes, and methods to address reliability and resiliency of   the industries affected by this chapter and may develop a statewide   reliability and resiliency plan.          (b)  The board may, at any time, use money from the fund to   contract and engage outside entities to develop a study or plan   considered necessary by the board.          Sec. 202.011.  CHANGES TO INDUSTRY STRUCTURE NOT IN CONFLICT   WITH CHAPTER.  Any reconstruction or changes to the regulatory   market structures of the industries identified in this chapter are   not in conflict with the purpose of this chapter.          Sec. 202.012.  PUBLIC PRIVATE PARTNERSHIPS. Money from the   fund may be used to make payments under a public and private entity   agreement to design, develop, finance, or construct a project   described by this chapter.          Sec. 202.013.  METHODOLOGY AND STANDARDS FOR POWER   GENERATION FACILITY WEATHERIZATION. (a)  The commission shall   develop a statistical methodology to determine the ambient   conditions to which each power generation facility must be   weatherized to comply with winter operations reliability   standards.          (b)  A methodology or standard developed under Subsection   (a) may be used only to determine whether to provide financial   assistance or support to a project to weatherize a power generation   facility under this subtitle.   CHAPTER 203. STATE UTILITIES RELIABILITY REVENUE FUND          Sec. 203.001.  REVENUE FUND. (a)  The state utilities   reliability revenue fund is a special fund in the state treasury   outside the general revenue fund to be used by the board as   authorized by this chapter without further legislative   appropriation. The board may establish separate accounts in the   revenue fund and may transfer money between accounts. The board has   legal title to money and investments in the revenue fund until the   money is disbursed as provided by this chapter and board rules.          (b)  Money deposited to the credit of the revenue fund may be   used only as provided by Section 203.003.          (c)  The revenue fund consists of:                (1)  money appropriated to the revenue fund;                (2)  money transferred or deposited to the credit of   the revenue fund by law, including money from any source   transferred or deposited to the credit of the revenue fund at the   board's discretion as authorized by law;                (3)  the proceeds of any fee or tax imposed by this   state that by statute is dedicated for deposit to the credit of the   revenue fund;                (4)  any other revenue that the legislature by statute   dedicates for deposit to the credit of the revenue fund;                (5)  investment earnings and interest earned on amounts   credited to the revenue fund;                (6)  the proceeds from the sale of revenue bonds issued   by the board under this chapter that are designated by the board for   the purpose of providing money for the revenue fund;                (7)  repayments of loans made from the revenue fund;   and                (8)  money disbursed to the revenue fund from the state   utilities reliability fund as authorized by Section 202.003.          Sec. 203.002.  MANAGEMENT AND INVESTMENT OF REVENUE FUND.   (a)  Money deposited to the credit of the revenue fund shall be   invested as determined by the board. The revenue fund may be   invested with the state treasury pool.          (b)  The revenue fund and any accounts established in the   revenue fund shall be kept and maintained by or at the direction of   the board.          (c)  At the direction of the board, the revenue fund and any   accounts established in the revenue fund may be managed by the   board, the comptroller, or a corporate trustee that is a trust   company or a bank that has the powers of a trust company for and on   behalf of the board and, pending use of the revenue fund and   accounts for the purposes provided by this chapter, may be invested   as provided by an order, resolution, or rule of the board.          (d)  The board, comptroller, or corporate trustee shall   manage the revenue fund in strict accordance with this chapter and   the orders, resolutions, and rules of the board.          Sec. 203.003.  USE OF REVENUE FUND. (a)  Money in the   revenue fund may be used by the board only to provide financial   assistance under terms specified by the board for projects that   enhance the reliability and resiliency of water, electric, natural   gas, broadband, and power generation facilities in this state,   including:                (1)  projects that enhance the ability of facilities to   withstand periods of high demand;                (2)  projects that reduce demand during periods of high   demand; and                (3)  projects to weatherize facilities.          (b)  Financial assistance for projects under Subsection (a)   may be provided in any form determined by the board that meets the   needs and goals of this state and the applicants, including a market   rate, low-interest, or no-interest loan, a loan guarantee, an   equity ownership in a public or private entity, a joint venture with   a public or private entity, a grant, an interest rebate, or an   interest subsidy.          (c)  In providing financial assistance under Subsection (a),   the board may:                (1)  make, enter into, and enforce contracts and   agreements, including management agreements, for the management of   any of the board's property, leases, indentures, mortgages, deeds   of trust, security agreements, pledge agreements, credit   agreements, overrides or other revenue sharing mechanisms,   repurchase agreements, and other instruments with any person,   including any lender and any federal, state, or local governmental   agency;                (2)  contract with and provide for the compensation of   consultants and agents, including engineers, attorneys, management   consultants, financial advisors, indexing agents, and other   experts, as the business of the board may require; and                (3)  take other actions to accomplish any of the board's   purposes.          (d)  The board may use money in the revenue fund:                (1)  as a source of revenue or security for the payment   of the principal of and interest on revenue bonds issued by the   board under this chapter;                (2)  to pay the necessary and reasonable expenses of   paying agents, bond counsel, and financial advisory services and   similar costs incurred by the board in administering the revenue   fund; or                (3)  to transfer money to the fund as necessary.          (e)  The board, comptroller, or corporate trustee managing   the revenue fund at the direction of the board shall withdraw from   the revenue fund and pay to a person any amounts, as determined by   the board, for the timely payment of:                (1)  the principal of and interest on bonds described   by Subsection (d)(1) that mature or become due; and                (2)  any cost related to bonds described by Subsection   (d)(1) that become due, including payments under related credit   agreements.          (f)  Money in the revenue fund may not be used for the purpose   of certification under Section 403.121, Government Code.          Sec. 203.004.  ISSUANCE OF REVENUE BONDS. (a)  The board may   issue revenue bonds for the purpose of providing money for the   revenue fund.          (b)  The board may issue revenue bonds to refund revenue   bonds or bonds and obligations issued or incurred in accordance   with other provisions of law.          (c)  Revenue bonds issued under this chapter are special   obligations of the board payable only from and secured by   designated income and receipts of the revenue fund, or of one or   more accounts in the revenue fund, including principal of and   interest paid and to be paid on revenue fund assets or income from   accounts created within the revenue fund by the board, as   determined by the board.          (d)  Revenue bonds issued under this chapter do not   constitute indebtedness of the state as prohibited by the   constitution.          (e)  The board may require revenue fund participants to make   charges, levy taxes, or otherwise provide for sufficient money to   pay acquired obligations.          (f)  Revenue bonds issued under this chapter must be   authorized by resolution of the board and must have the form and   characteristics and bear the designations as the resolution   provides.          (g)  Revenue bonds issued under this chapter may:                (1)  bear interest at the rate or rates payable   annually or otherwise;                (2)  be dated;                (3)  mature at the time or times, serially, as term   revenue bonds, or otherwise in not more than 50 years from their   dates;                (4)  be callable before stated maturity on the terms   and at the prices, be in the denominations, be in the form, either   coupon or registered, carry registration privileges as to principal   only or as to both principal and interest and as to successive   exchange of coupon for registered bonds or one denomination for   bonds of other denominations, and successive exchange of registered   revenue bonds for coupon revenue bonds, be executed in the manner,   and be payable at the place or places inside or outside the state,   as provided by the resolution;                (5)  be issued in temporary or permanent form;                (6)  be issued in one or more installments and from time   to time as required and sold at a price or prices and under terms   determined by the board to be the most advantageous reasonably   obtainable; and                (7)  be issued on a parity with and be secured in the   manner as other revenue bonds authorized to be issued by this   chapter or may be issued without parity and secured differently   than other revenue bonds.          (h)  Section 17.955, Water Code, applies to revenue bonds   issued under this chapter in the same manner as that section applies   to water financial assistance bonds.          (i)  All proceedings relating to the issuance of revenue   bonds issued under this chapter shall be submitted to the attorney   general for examination. If the attorney general finds that the   revenue bonds have been authorized in accordance with law, the   attorney general shall approve the revenue bonds, and the revenue   bonds shall be registered by the comptroller. After the approval   and registration, the revenue bonds are incontestable in any court   or other forum for any reason and are valid and binding obligations   in accordance with their terms for all purposes.          (j)  The proceeds received from the sale of revenue bonds   issued under this chapter may be deposited or invested in any manner   and in such investments as may be specified in the resolution or   other proceedings authorizing those obligations. Money in the   revenue fund or accounts created by this chapter or created in the   resolution or other proceedings authorizing the revenue bonds may   be invested in any manner and in any obligations as may be specified   in the resolution or other proceedings.          Sec. 203.005.  CHAPTER CUMULATIVE OF OTHER LAWS. (a)  This   chapter is cumulative of other laws on the subject, and the board   may use provisions of other applicable laws in the issuance of bonds   and other obligations, but this chapter is wholly sufficient   authority for the issuance of bonds and other obligations and the   performance of all other acts and procedures authorized by this   chapter.          (b)  In addition to other authority granted by this chapter,   the board may exercise the authority granted to the governing body   of an issuer with regard to the issuance of obligations under   Chapter 1371, Government Code.          SECTION 4.  Section 15.102(b), Water Code, is amended to   read as follows:          (b)  The loan fund may also be used by the board to provide:                (1)  grants or loans for projects that include   supplying water and wastewater services in economically distressed   areas or nonborder colonias as provided by legislative   appropriations, this chapter, and board rules, including projects   involving retail distribution of those services; [and]                (2)  grants for:                      (A)  projects for which federal grant funds are   placed in the loan fund;                      (B)  projects, on specific legislative   appropriation for those projects; or                      (C)  water conservation, desalination, brush   control, weather modification, regionalization, and projects   providing regional water quality enhancement services as defined by   board rule, including regional conveyance systems; and                (3)  loans or grants to water utilities, as that term is   defined by Section 201.001, Utilities Code, for projects that   enhance the reliability and resiliency of those water utilities by   weatherizing facilities or reducing water demand through water   conservation and water demand reduction efforts.          SECTION 5.  (a) The terms used in this section have the   meanings assigned by Section 201.001, Utilities Code, as added by   this Act.          (b)  The executive administrator of the Texas Water   Development Board, in coordination with the Public Utility   Commission of Texas, the Texas Commission on Environmental Quality,   the Railroad Commission of Texas, the State Energy Conservation   Office, and the independent organization certified under Section   39.151, Utilities Code, for the ERCOT power region, shall conduct a   study regarding:                (1)  the need for financial assistance from the state   to weatherize:                      (A)  water utility facilities;                      (B)  electric utility facilities;                      (C)  natural gas utility facilities;                      (D)  power generation companies; and                      (E)  broadband provider facilities;                (2)  the need for financial assistance from the state   to provide adequate capacity during periods of high demand for   electric utilities and natural gas utilities, including by reducing   electric and natural gas demand; and                (3)  the financing structures desirable to potential   applicants for the categories listed in Subdivisions (1) and (2) of   this subsection.          (c)  The costs of the study, including any external   management or consulting services considered necessary, may be paid   from the state utilities reliability fund.          (d)  The executive administrator shall prepare a report on   the findings of the study conducted under this section and submit   the report to the State Utilities Reliability Fund Advisory   Committee not later than May 7, 2023.          (e)  This section expires September 1, 2023.          SECTION 6.  As soon as practicable after the effective date   of this Act, the lieutenant governor and the speaker of the house of   representatives shall appoint the initial appointive members of the   State Utilities Reliability Fund Advisory Committee as provided by   Section 202.005, Utilities Code, as added by this Act.          SECTION 7.  (a)  Not later than June 1, 2023, the State   Utilities Reliability Fund Advisory Committee shall submit   recommendations to the Texas Water Development Board on the rules   to be adopted by the board under Section 202.006(a), Utilities   Code, as added by this Act.          (b)  Not later than December 1, 2023, the board shall propose   rules under Section 202.006, Utilities Code, as added by this Act.          SECTION 8.  The Texas Water Development Board shall post the   information described by Section 202.007(b), Utilities Code, as   added by this Act, on the board's Internet website not later than   March 1, 2023.          SECTION 9.  (a)  Except as provided by Subsection (b) of this   section:                (1)  this Act takes effect on the date on which the   constitutional amendment proposed by the 87th Legislature, 3rd   Called Session, 2021, creating the state utilities reliability fund   and the state utilities reliability revenue fund to provide   financial support for projects that enhance the reliability and   resiliency of water, electric, and natural gas utilities, broadband   providers, and power generation companies in this state takes   effect; or                (2)  if the amendment described by Subdivision (1) of   this subsection is not approved by the voters, this Act has no   effect.          (b)  Regardless of whether the constitutional amendment   described by Subsection (a) of this section is approved by the   voters, Section 5 of this Act takes effect:                (1)  immediately, if this Act receives a vote of   two-thirds of all the members elected to each house, as provided by   Section 39, Article III, Texas Constitution; or                (2)  on the 91st day after the last day of the   legislative session, if this Act does not receive the vote   necessary for immediate effect.