By: Hancock  S.B. No. 1750          (In the Senate - Filed March 12, 2021; March 26, 2021, read   first time and referred to Committee on Business & Commerce;   April 19, 2021, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 8, Nays 0; April 19, 2021,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1750 By:  Hancock     A BILL TO BE ENTITLED   AN ACT     relating to extreme weather preparedness of critical electric and   natural gas infrastructure; authorizing administrative penalties.          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 extreme weather and resolves to protect the citizens of   this state from similar events by requiring coordinated enforcement   by relevant regulatory bodies.          SECTION 2.  Subchapter C, Chapter 86, Natural Resources   Code, is amended by adding Section 86.044 to read as follows:          Sec. 86.044.  EXTREME WEATHER EMERGENCY PREPAREDNESS. (a)   In this section, "extreme weather emergency" means a period when:                (1)  the previous day's highest temperature did not   exceed 10 degrees Fahrenheit and the temperature is predicted to   remain at or below that level for the next 24 hours according to the   nearest National Weather Service reports; or                (2)  the National Weather Service issues a heat   advisory for any county in the relevant service territory, or when   such an advisory has been issued on any one of the previous two   calendar days.          (b)  The commission by rule shall require an operator of a   gas well to implement measures to prepare the well to operate during   an extreme weather emergency.          SECTION 3.  Section 121.2015(a), Utilities Code, is amended   to read as follows:          (a)  The railroad commission shall adopt rules regarding:                (1)  public education and awareness relating to gas   pipeline facilities; [and]                (2)  community liaison for responding to an emergency   relating to a gas pipeline facility; and                (3)  measures gas pipeline facility operators must   implement to prepare gas pipeline facilities to maintain service   quality and reliability during an extreme weather emergency, as   defined by Section 86.044, Natural Resources Code.          SECTION 4.  Subchapter A, Chapter 186, Utilities Code, is   amended by adding Section 186.008 to read as follows:          Sec. 186.008.  WINTER WEATHER EMERGENCY PREPAREDNESS AND   COORDINATION. (a) In this section:                (1)  "Coordinating agency" means the Public Utility   Commission of Texas, the Railroad Commission of Texas, or the Texas   Division of Emergency Management.                (2)  "Coordinated entity" means a power generation   company as defined by Section 31.002, the independent organization,   or an entity engaged in the transport, storage, or shipping of   natural gas to or for a power generation company.                (3)  "Independent organization" means the independent   organization certified under Section 39.151 for the ERCOT power   region.          (b)  The Public Utility Commission of Texas and the Railroad   Commission of Texas each by rule shall require each coordinated   entity subject to the agency's jurisdiction to establish and submit   to the respective agency a winter preparedness emergency operations   plan. The rules must require a winter preparedness emergency   operations plan to include:                (1)  a plan for operating during extremely cold   weather;                (2)  a plan that addresses any known critical failure   points of the entity, including any effects of weather design   limits;                (3)  a plan for operating during an emergency shortage   of water or other critical supplies;                (4)  a plan for identifying potentially extreme weather   events;                (5)  a plan for staffing during extreme weather events;                (6)  natural gas curtailment priorities and   procedures, if applicable;                (7)  a description of 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 extreme weather event with the   coordinating agencies, other coordinated entities, 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 the personnel will follow the plan, except to the   extent deviations are appropriate under the circumstances during an   emergency.          (c)  An emergency operations plan may be combined or   coordinated with other preparedness reporting requirements,   including requirements regarding other weather scenarios, natural   disasters, cybersecurity events, physical security events, and   pandemics. A coordinating agency may authorize a coordinated   entity to submit for the purposes of this section a plan required to   be submitted to the agency under another provision of law if the   plan includes the information required by this section to be   included in an emergency operations plan.          (d)  The coordinating agencies shall analyze jointly   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 this state.  In preparing the   report, the coordinating agencies shall:                (1)  review the emergency operations plans 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 to ensure the continuity of   electric and natural gas service, including identifying and   defining potentially appropriate weatherization and emergency   operations standards, that may:                      (A)  differentiate between existing and new   facilities; and                      (B)  consider geography, suitable alternatives,   cost-effectiveness, and other practical constraints.          (e)  A coordinating agency may require a coordinated entity   subject to the agency's 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. The   coordinating agencies may combine a report required by this section   with a report required to be produced by a coordinating agency by   another provision of law when making the submission required by   this subsection.          (h)  An emergency operations plan submitted to a state agency   under this section is confidential under Chapters 418 and 552,   Government Code, and any other applicable law, and is not subject to   disclosure under Chapter 552, Government Code.  If portions of a   plan are directly referenced in the report described by Subsection   (d), the information must be in a redacted form for public   inspection with the confidential portions removed.  A coordinated   entity in the ERCOT power region shall provide the entity's entire   plan to the independent organization.  The independent organization   shall maintain the confidentiality of the plan.          (i)  The Public Utility Commission of Texas and the Railroad   Commission of Texas each shall notify coordinated entities under   their respective jurisdictions of any potential deficiencies in   entity emergency operations plans and describe any applicable   winter weatherization and emergency operations standards   recommended by the coordinating agencies.  Not later than the 30th   day after the date a coordinated entity receives notice under this   subsection, the entity in writing shall acknowledge to the Public   Utility Commission of Texas or the Railroad Commission of Texas, as   applicable, that the entity received the notice.          (j)  The Public Utility Commission of Texas or the Railroad   Commission of Texas, after notice and opportunity for hearing, may   impose an administrative penalty on a coordinated entity subject to   the agency's jurisdiction for failure to submit an emergency   operations plan or respond to a notice of potential deficiency by   the required time.          SECTION 5.  The Railroad Commission of Texas shall adopt   rules as required by Section 86.044, Natural Resources Code, as   added by this Act, and Section 121.2015(a), Utilities Code, as   amended by this Act, not later than November 1, 2021.          SECTION 6.  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 186.008, Utilities Code,   as added by this Act.          SECTION 7.  The Railroad Commission of Texas is required to   implement this Act only if the legislature appropriates money   specifically for that purpose.  If the legislature does not   appropriate money specifically for that purpose, the Railroad   Commission of Texas may, but is not required to, implement this Act   using other appropriations available for the purpose.          SECTION 8.  This Act takes effect September 1, 2021.     * * * * *