89R24938 JXC-F     By: Guillen H.B. No. 4581     Substitute the following for H.B. No. 4581:     By:  King C.S.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), (f-4), (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; and                (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, in a rate proceeding or a   separate contested case hearing, authorizes:                      (A)  the total generating capacity the utility may   lease; and                      (B)  the functions for which the utility may lease   facilities and the generation capacity the utility may lease for   each function; or                (2)  the lease includes a provision that allows   alteration of the lease based on commission order or rule.          (f-2)  The commission may limit the period during which an   authorization issued under Subsection (f-1) is valid.          (f-3)  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;                (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; and                (3)  the term of the lease does not significantly   exceed the time period that is required to restore electric service   to the utility's customers during a significant power outage.          (f-4)  A transmission and distribution utility that enters   into a lease in the manner provided by Subsection (f-3) 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 and transmission and distribution   utilities, shall develop an annex to the state emergency management   plan prepared under Section 418.042, Government Code, that   addresses planning for deploying facilities leased under   Subsection (b).  The annex must include procedures for transmission   and distribution utilities to maintain a current list of facilities   leased under Subsection (b), information submitted to the   commission under Subsection (n), and facilities available to be   deployed through mutual aid agreements.          (l)  The list maintained under Subsection (k) must be   accessible, on request, 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 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   of the facility.          (m)  The commission by rule shall require a transmission and   distribution utility that leases 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.          (n)  The commission by rule shall require a transmission and   distribution utility that enters into a mutual aid agreement   described by Subsection (m) to:                (1)  provide to the commission information regarding   the agreement not later than the 30th day after the date the utility   enters into the agreement; and                 (2)  not later than the 30th day after the date of any   change in the required information, provide updated information to   the commission.          SECTION 2.  The changes in law made by this Act to Section   39.918(d), Utilities Code, apply only to a temporary emergency   electric energy facility leased by a transmission and distribution   utility on or after the effective date of this Act. A temporary   emergency electric energy facility that was leased by a   transmission and distribution utility under Section 39.918(b)(1),   Utilities Code, before the effective date of this Act is governed by   the law in effect at the time the lease was executed, and the former   law is continued in effect for that purpose.          SECTION 3.  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 June 1, 2026.          SECTION 4.  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.