HB 3535

relating to requiring backup generation at certain wastewater
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter B, Chapter 26, Water Code, is amended
by adding Section 26.054 to read as follows:
Sec. 26.054.  STANDARDS OF EMERGENCY OPERATIONS FOR PACKAGE
(1)  "Emergency operations" means the operation of a
package plant during an extended power outage that impacts the
(2)  "Extended power outage" means a power outage
lasting for more than 24 hours.
(3)  "Package plant" means a pre-manufactured
wastewater treatment facility with a capacity of less than 500,000
gallons per day.  The term includes an extended aeration plant,
sequencing batch reactor, or oxidation ditch.
(b)  The operator of a package plant shall:
(1)  ensure the emergency operation of the package
plant during an extended power outage as soon as safe and
practicable following the occurrence of a natural disaster; and
(2)  adopt and submit to the commission for its
(A)  an emergency preparedness plan that
demonstrates the operator's ability to provide the emergency
operations described by Subdivision (1); and
(B)  a timeline for implementing the plan
(c)  The commission shall review an emergency preparedness
plan submitted under Subsection (b).  If the commission determines
that the plan is not acceptable, the commission shall recommend
changes to the plan.  The commission must make its recommendations
on or before the 90th day after the date the commission receives the
plan.  In accordance with commission rules, an emergency
preparedness plan for a package plant shall provide for one or more
(1)  the maintenance of automatically starting
(2)  the sharing of auxiliary generator capacity with
one or more operators of wastewater treatment facilities affected
by an extended power outage, including through participation in a
(3)  the negotiation of leasing and contracting
agreements, including emergency mutual aid agreements with other
operators of wastewater treatment facilities, if the agreements
provide for coordination with the division of emergency management
(4)  the use of portable generators capable of serving
multiple facilities equipped with quick-connect systems;
(5)  the use of on-site electrical generation or
distributed generation facilities;
(6)  hardening the electric transmission and
distribution system serving the package plant;
(7)  emergency wastewater treatment service capacity
rules to maintain emergency operations; or
(8)  any other alternative determined by the commission
(d)  Each operator of a package plant shall include in the
package plant's emergency preparedness plan under Subsection (b)
provisions for demonstrating the capability of the package plant to
provide wastewater treatment service to its customers during
emergencies.  This subsection does not apply to wastewater
treatment services that are unnecessary or otherwise subject to
interruption or curtailment during emergencies under a contract.
(e)  The commission shall adopt rules to implement this
(f)  The commission shall provide an operator of a package
plant with access to the commission's financial, managerial, and
technical contractors to assist the operator in complying with the
applicable emergency preparedness plan submission deadline.
(g)  The commission by rule shall create an emergency
preparedness plan template for use by an operator of a package plant
when submitting a plan under this section.  The emergency
preparedness plan template shall contain:
(1)  a list and explanation of the preparations an
operator of a package plant may make under Subsection (c) for the
commission to approve the package plant's emergency preparedness
(2)  a list of all commission rules and standards
pertaining to emergency preparedness plans.
(h)  An emergency generator used as part of an approved
emergency preparedness plan under Subsection (c) must be operated
and maintained according to the manufacturer's specifications.
(i)  The commission shall inspect each package plant to
ensure that the operator of the package plant complies with the
(j)  The commission shall consider whether compliance with
this section will cause a significant financial burden on customers
of an operator of a package plant.
(k)  An operator of a package plant may adopt and enforce
limitations on wastewater treatment service while the package plant
is providing emergency operations.
(l)  Except as specifically required by this section,
information provided by an operator of a package plant under this
section is confidential and is not subject to disclosure under
(m)  The commission shall coordinate with the Public Utility
Commission of Texas in the administration of this section.
SECTION 2.  (a)  Not later than January 1, 2026, the Texas
Commission on Environmental Quality shall adopt rules necessary to
implement Section 26.054, Water Code, as added by this Act.
(b)  Not later than May 1, 2026, each operator of a package
plant shall submit to the Texas Commission on Environmental Quality
the emergency preparedness plan required by Section 26.054, Water
(c)  Not later than September 1, 2026, or upon final approval
by the Texas Commission on Environmental Quality, each operator of
a package plant shall implement the emergency preparedness plan
required by Section 26.054, Water Code, as added by this Act.
SECTION 3.  This Act takes effect September 1, 2025.