2021S0195-1 03/11/21     By: Hancock S.B. No. 1750     A BILL TO BE ENTITLED   AN ACT   relating to coordinating severe weather preparedness in critical   electric and natural gas infrastructure; authorizing an   administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The legislature finds that Winter Storm Uri   revealed the interconnectedness of the gas and power industries in   the face of severe weather and resolves to protect the citizens of   Texas from similar events in the future by requiring coordinated   enforcement across relevant regulatory bodies.          SECTION 2.  Subchapter A, Chapter 186, Utilities Code, is   amended by adding Section 186.0071 to read as follows:          Sec. 186.0071.  WINTER WEATHER EMERGENCY PREPAREDNESS AND   COORDINATION. (a) In this section:                 (1)  "Coordinating agencies" means the Public Utility   Commission of Texas, the Railroad Commission of Texas, and the   Texas Division of Emergency Management.                (2)  "Coordinated entities" means public utilities,   power generation companies, ERCOT, and entities engaged in the   production, transport, gathering, storage, or shipping of natural   gas.                (3)  "ERCOT" means the Electric Reliability Council of   Texas.          (b)  The Public Utility Commission of Texas and the Railroad   Commission of Texas shall each establish rules to require each   coordinated entity subject to their respective jurisdictions to   establish and submit a winter preparedness emergency operations   plan. The rules must require the winter preparedness emergency   operations plans to include:                (1)  a plan that addresses severely cold weather;                (2)  a plan that addresses any known critical failure   points, including any effects of weather design limits;                (3)  a plan that addresses an emergency shortage of   water or other critical supplies;                (4)  a plan for identification of potentially severe   weather events;                (5)  a plan that addresses staffing during severe   weather events;                (6)  curtailment priorities and procedures;                 (7)  priorities for recovery of operational capacity or   restoration of service, as applicable;                (8)  identification of critical loads necessary to   maintain production of electricity or natural gas;                 (9)  a communications plan that describes the   procedures and threshold conditions for initiation of   communication about a potential severe weather event with the   coordinating agencies, other coordinated entities, ERCOT, the   public, the media, and customers; and                (10)  an affidavit from an owner, partner, officer,   manager, or other official with responsibility for the entity's   operations affirming that all relevant operating personnel of the   entity are familiar with the contents of the emergency operations   plan and that such personnel are committed to following the plan   except to the extent deviations are appropriate under the   circumstances during the course of an emergency.          (c)  The emergency operations plans may be combined or   coordinated with other preparedness reporting requirements,   including for other weather scenarios, natural disasters,   cybersecurity events, physical security events, and pandemics.          (d)  The coordinating agencies shall jointly analyze   emergency operations plans developed by coordinated entities in   each even-numbered year and prepare a weather emergency   preparedness report on power generation and natural gas   weatherization preparedness. In preparing the report, the   coordinating agencies shall:                (1)  review the emergency operations plans currently on   file with each of the coordinating agencies;                (2)  analyze and determine the ability of the electric   grid and natural gas system to withstand extreme weather events in   the upcoming biennium;                (3)  consider the anticipated weather patterns for the   upcoming biennium; and                (4)  make recommendations on improving emergency   operations plans and procedures in order to ensure the continuity   of electric and natural gas service, including the identification   and definition of potentially appropriate weatherization and   emergency operations standards, which may differentiate between   existing and new facilities and may consider geography, suitable   alternatives, cost-effectiveness, and other practical constraints.          (e)  A coordinating agency may require a coordinated entity   subject to its jurisdiction and this section to file an updated   emergency operations plan if the coordinating agency finds that an   emergency operations plan on file does not contain sufficient   information to determine whether the coordinated entity can provide   adequate services.          (f)  Each coordinating agency may adopt rules relating to the   implementation of the report described by Subsection (d).          (g)  The coordinating agencies shall submit the report   described by Subsection (d) to the lieutenant governor, the speaker   of the house of representatives, and the members of the legislature   not later than September 30 of each even-numbered year.          (h)  The emergency operations plans submitted for the report   described by Subsection (d) are confidential under Chapters 418 and   552, Government Code, and other state or federal law. If portions   of a plan are directly referenced in the report described by   Subsection (d), such information shall be in a redacted form for   public inspection with the confidential portions removed. A   coordinated entity within the ERCOT power region shall provide the   entity's plan to ERCOT in its entirety, and ERCOT shall maintain the   confidentiality of the plan.          (i)  The Public Utility Commission of Texas and the Railroad   Commission of Texas shall each notify coordinated entities under   their respective jurisdictions of any potential deficiencies in   their emergency operations plans, including winter weatherization   and emergency operations standards recommended by the coordinating   agencies. Each entity shall respond to such notice in writing   within 30 days.          (j)  The Public Utility Commission of Texas and the Railroad   Commission of Texas may, after notice and opportunity for hearing,   impose an administrative penalty on entities subject to their   respective jurisdictions for failure to timely submit an emergency   operations plan or respond to a notice of potential deficiency.          SECTION 3.  Section 186.007, Utilities Code, is repealed.          SECTION 4.  Not later than January 1, 2022, the Public   Utility Commission of Texas and the Railroad Commission of Texas   shall adopt the rules required by Section 186.0071(b), Utilities   Code, as added by this Act.          SECTION 5.  This Act takes effect September 1, 2021.