Seasonally Critical Gas Facilities Could Get Paid To Cut Demand

The text as introduced · 615 words

By: Guillen
H.B. No. 5224

A BILL TO BE ENTITLED

AN ACT

relating to the critical designation of certain natural gas

facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 81.073(a), Subchapter C, Chapter 81,

Natural Resources Code, is amended as follows:

Sec. 81.073. CRITICAL NATURAL GAS FACILITIES AND ENTITIES.

(a) The commission shall collaborate with the Public

Utility Commission of Texas to adopt rules to establish a process to

designate certain natural gas facilities and entities associated

with providing natural gas in this state as critical customers or

critical gas suppliers during energy emergencies.

(b) The rules must:

(1) establish criteria for designating persons who own

or operate a facility under the jurisdiction of the commission

under Section 81.051(a) or engage in an activity under the

jurisdiction of the commission under Section 81.051(a) who must

provide critical customer and critical gas supply information, as

defined by the commission, to the entities described by Section

38.074(b)(1), Utilities Code;

(2) consider essential operational elements when

defining critical customer designations and critical gas supply

information for the purposes of Subdivision (1), including natural

gas production, processing, and transportation, related produced

water handling and disposal facilities, and the delivery of natural

gas to generators of electric energy; and

(3) require that only facilities and entities that are

prepared to operate during a weather emergency may be designated as

a critical customer under this section . ; and

(4) establish criteria for a facility operated under

the jurisdiction of the commission which has been designated as

critical under (a) to be designated as critical on a seasonal

basis. In determining these criteria:

(i) the commission shall determine for which

seasons each facility is designated critical and the beginning and

ending date of such seasons;

(ii) the commission shall grant any person who

owns or operates a facility which has been designated as critical

under (a) the right to apply to the commission to be designated as

critical on a seasonal basis. Any such application may be made by an

owner or operator as part of the owner or operator's Critical

Infrastructure Designation Report to the commission; and

(iii) the commission shall provide a list of

facilities designated as critical on a seasonal basis to the Public

Utility Commission.

SECTION 2. (a) The Texas Railroad Commission shall open a

rulemaking to implement Natural Resources Code Subsection

81.073(b)(4). This rulemaking project shall begin not later than

the 90th day after the effective date of this Act. The commission

shall adopt the final rule not later than February 1, 2026. A list

of facilities designated as critical on a seasonal basis shall be

provided to the Public Utility Commission by March 31, 2026.

(b) The Public Utility Commission of Texas shall open a

rulemaking project requiring the independent organization

certified under Section 39.151 for the ERCOT power region to allow

facilities designated as critical on a seasonal basis, under

Natural Resources Code Subsection 81.073(b)(4), to participate in

competitively procured demand reductions. This rulemaking project

shall begin not later than the 90th day after the effective date of

this Act. The commission shall adopt the final rule not later than

February 1, 2026. The Public Utility Commission must provide the

list of facilities designated as critical on a seasonal basis to the

independent organization certified under Section 39.151 for the

ERCOT power region by April 30, 2026.

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.