87R30034 CXP-D     By: Paddie H.R. No. 2093     R E S O L U T I O N            BE IT RESOLVED by the House of Representatives of the State of   Texas, 87th Legislature, Regular Session, 2021, That House Rule 13,   Section 9(a), be suspended in part as provided by House Rule 13,   Section 9(f), to enable the conference committee appointed to   resolve the differences on Senate Bill 2 (the governance of the   Public Utility Commission of Texas, the Office of Public Utility   Counsel, and an independent organization certified to manage a   power region) to consider and take action on the following matters:          (1)  House Rule 13, Sections 9(a)(1), (3), and (4), are   suspended to permit the committee to amend text not in   disagreement, to add text on a matter not in disagreement, and to   add text on a matter not included in either the house or senate   version of the bill in proposed SECTION 3 of the bill, in amended   Sections 39.151(g) and (g-1), Utilities Code, and added Sections   39.151(g-2), (g-3), and (g-4), Utilities Code, to read as follows:          (g)  To maintain certification as an independent   organization for the ERCOT power region under this section, an   organization's governing body must be composed of persons selected   by the ERCOT board selection committee [specified by this section   and selected in accordance with formal bylaws or protocols of the   organization].          (g-1)  The independent organization's bylaws or protocols   must be approved by the commission and must reflect the input of the   commission. [The bylaws must specify the process by which   appropriate stakeholders elect members and, for unaffiliated   members, prescribe professional qualifications for selection as a   member.] The bylaws must require that every member of the governing   body be a resident of this state and must prohibit a legislator from   serving as a member [the use of a professional search firm to   identify candidates for membership of unaffiliated members. The   process must allow for commission input in identifying candidates].   The governing body must be composed of:                (1)  the chairman of the commission as an ex officio   nonvoting member;                (2)  the counsellor as an ex officio voting member   representing residential and small commercial consumer interests;                (3)  the chief executive officer of the independent   organization as an ex officio nonvoting [voting] member; and                (4)  eight members selected by the selection committee   under Section 39.1513 with executive-level experience in any of the   following professions:                      (A)  finance;                      (B)  business;                      (C)  engineering, including electrical   engineering;                      (D)  trading;                      (E)  risk management;                      (F)  law; or                      (G)  electric market design [six market   participants elected by their respective market segments to serve   one-year terms, with:                      [(A)  one representing independent generators;                      [(B)  one representing investor-owned utilities;                      [(C)  one representing power marketers;                      [(D)  one representing retail electric providers;                      [(E)  one representing municipally owned   utilities; and                      [(F)  one representing electric cooperatives;                [(5)  one member representing industrial consumer   interests and elected by the industrial consumer market segment to   serve a one-year term;                [(6)  one member representing large commercial   consumer interests selected in accordance with the bylaws to serve   a one-year term; and                [(7)  five members unaffiliated with any market segment   and selected by the other members of the governing body to serve   three-year terms].          (g-2)  Members [(g-1) The presiding officer] of the   governing body are entitled to receive a salary for their service   [must be one of the members described by Subsection (g)(7)].          (g-3)  A person does not qualify for selection as a member of   the governing body of an independent organization for the ERCOT   power region if the person has a fiduciary duty or assets in the   electricity market for that region.          (g-4)  To maintain certification as an independent   organization under this section, the organization's governing body   may not include more than two members who are employed by an   institution of higher education, as defined by Section 61.003,   Education Code, in a professorial role.          Explanation: This change is necessary to provide for the   composition of the governing body of an independent organization   certified under Section 39.151, Utilities Code, for the Electric   Reliability Council of Texas power region and to establish   requirements relating to the eligibility and selection of members   of the governing body.          (2)  House Rule 13, Section 9(a)(2), is suspended to permit   the committee to omit text not in disagreement in SECTION 3 of the   senate engrossment of Senate Bill 2 and the corresponding bill as   the bill was amended by the house in added Section 39.151(g-2),   Utilities Code. The omitted text reads:          (g-2)  A person does not qualify for appointment as a member   of the governing body of an independent organization under   Subsection (g)(3) or (7) if the person is required to register as a   lobbyist under Chapter 305, Government Code. In making an   appointment under Subsection (g)(3) or (7), the governor:                (1)  shall give preference to a person who has   executive-level business experience representing a range of   industries; and                (2)  may consider a person recommended by the   legislature.          (g-2)  A person does not qualify for selection as a member of   the governing body of an independent organization under Subsection   (g)(3) or (7) if the person is required to register as a lobbyist   under Chapter 305, Government Code. In making a selection under   Subsection (g)(3) or (7), the members of the governing body shall   give preference to a person who has executive-level business   experience representing a range of industries.          Explanation: The change is necessary to omit the   qualification and selection requirements.          (3)  House Rule 13, Section 9(a)(2), is suspended to permit   the committee to omit text not in disagreement in SECTION 3 of the   senate engrossment of Senate Bill 2 and the corresponding bill as   the bill was amended by the house in added Section 39.151(g-3),   Utilities Code. The omitted text reads:          (g-3)  Members of the governing body of an independent   organization certified under this section must serve staggered   terms. A member described by Subsection (g)(4) or (5) must serve a   term that expires in an even-numbered year. A member described by   Subsection (g)(6) or (7) must serve a term that expires in an   odd-numbered year. As soon as practicable after the date a member of   the governing body's term expires, the appropriate authority must   appoint or arrange for the election of a replacement in the same   manner as the original appointment or election. If a vacancy occurs   on the governing body, the appropriate authority must appoint or   arrange for the election of a successor in the same manner as the   original appointment or election to serve for the remainder of the   unexpired term.          Explanation: The change is necessary to omit the term and   vacancy requirements.          (4)  House Rule 13, Section 9(a)(4), is suspended to permit   the committee to add text on a matter not included in either the   house or senate version of the bill by adding the following new   SECTION to the bill:          SECTION 4.  Subchapter D, Chapter 39, Utilities Code, is   amended by adding Section 39.1513 to read as follows:          Sec. 39.1513.  ERCOT BOARD SELECTION COMMITTEE. (a) The   ERCOT board selection committee is composed of:                (1)  one member appointed by the governor;                (2)  one member appointed by the lieutenant governor;   and                (3)  one member appointed by the speaker of the house of   representatives.          (b)  A person may not be appointed as a member of the   committee unless the person is a resident of this state.          (c)  A member of the committee is not entitled to   compensation for serving as a member but is entitled to   reimbursement for actual and necessary expenses incurred in   performing the official duties of office.          (d)  The committee shall select members eligible under   Section 39.151 to serve on the governing body of an independent   organization certified under that section for the ERCOT power   region and shall designate the chair and vice chair of the governing   body from those members.          (e)  The ERCOT board selection committee shall retain an   outside consulting firm to help select members of the governing   body under Subsection (d).          Explanation: The addition is necessary to provide for the   creation of a committee to select the members of a governing body of   an independent organization certified under Section 39.151,   Utilities Code, for the Electric Reliability Council of Texas power   region.          (5)  House Rule 13, Section 9(a)(2), is suspended to permit   the committee to omit text not in disagreement in SECTION 4 of the   senate engrossment of Senate Bill 2 and the corresponding bill as   the bill was amended by the house that would require an independent   organization certified by the Public Utility Commission of Texas   under Section 39.151, Utilities Code, to modify the organization to   comply with Section 39.151, Utilities Code, as amended by the bill,   not later than September 1, 2021. The omitted language reads: "not   later than September 1, 2021".          Explanation: The omission is necessary to provide sufficient   time for the ERCOT Board Selection Committee to be formed and for   the committee to select members of the governing body of the   independent organization certified under Section 39.151, Utilities   Code, for the Electric Reliability Council of Texas power region.