By: Guillen H.B. No. 4581       A BILL TO BE ENTITLED   AN ACT   relating to temporary emergency energy facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 39.918, Utilities Code, is amended by   amending Subsections (d) and (f) and adding Subsections (f-1),   (f-2), (f-3), (k), (l), (m), and (n) to read as follows:          (d)  A facility [Facilities] described by Subsection (b)(1):                (1)  must be operated in isolation from the bulk power   system; [and]                (2)  may not be included in independent system   operator:                      (A)  locational marginal pricing calculations;                      (B)  pricing; or                      (C)  reliability models;                (3)  must be:                      (A)  mobile; and                      (B)  capable of generating electric energy within   three hours after being connected to a demand source.          (f)  A transmission and distribution utility shall[, when   reasonably practicable,] use a competitive bidding process to lease   facilities under Subsection (b)(1).          (f-1)  A transmission and distribution utility may not enter   into a lease under Subsection (b)(1) unless:                (1)  the commission first approves the lease in a rate   proceeding or a separate contested case hearing; or                (2)  the lease includes a provision that allows   alteration of the lease based on commission order or rule.          (f-2)  Notwithstanding Subsections (f) and (f-1)(1), a   transmission and distribution utility may enter into a lease under   Subsection (b)(1) without competitive bidding or prior commission   approval if:                (1)  the transmission and distribution utility lacks   the leased generating capacity necessary to aid in restoring power   to the utility's customers during a significant power outage; and                (2)  the amount of leased generating capacity does not   significantly exceed the amount of megawatts necessary to restore   electric service to the utility's customers during a significant   power outage.          (f-3)  A transmission and distribution utility that enters   into a lease in the manner provided by Subsection (f-2) shall   provide documentation to justify the amount of leased generating   capacity during the first base rate proceeding after the date the   lease begins.          (k)  The Texas Division of Emergency Management, in   coordination with the commission, shall develop an annex to the   state emergency management plan prepared under Section 418.042,   Government Code, that addresses planning for deploying facilities   leased, operated, procured, or owned under Subsection (b). The   annex must include procedures for transmission and distribution   utilities to maintain a current list of facilities leased,   operated, procured, or owned under Subsection (b), agreements   submitted to the division under Subsection (m), and facilities   available to be deployed through mutual aid agreements.          (l)  The list maintained under Subsection (k) must be   accessible to each transmission and distribution utility, the   commission, the Texas Division of Emergency Management, and each   state agency with emergency response duties. Each transmission and   distribution utility that leases, operates, procures, or owns a   facility described by Subsection (b) shall notify the commission   not later than the 30th day after the date of a change in the   utility's lease or ownership of the facility.          (m)  The commission by rule shall require a transmission and   distribution utility that leases, operates, procures, or owns a   facility described by Subsection (b) to offer to enter into mutual   aid agreements with other transmission and distribution utilities   to facilitate the deployment of undeployed facilities on the   request of another transmission and distribution utility. Each   transmission and distribution utility shall submit any agreement   entered into under this subsection to the commission and report to   the commission not later than the 30th day after the date of any   change in the submitted agreement.          (n)  The commission shall:                (1)  consider any failure to deploy a facility   described by Subsection (b) that is leased, operated, procured, or   owned by a transmission and distribution utility, including a   failure to deploy a facility under the terms of a mutual aid   agreement, in the next base rate proceeding of the transmission and   distribution utility; and                (2)  if the failure to deploy described by Subdivision   (1) was not reasonable, revise the utility's rate of return on   investment with a presumption that the investment in the facility   was not reasonable.          SECTION 2.  The Public Utility Commission of Texas shall   require a transmission and distribution utility to which Section   39.918(m), Utilities Code, as added by this Act, applies to make   offers for mutual aid agreements before the 2026 hurricane season.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.