HB 5224

relating to the critical designation of certain natural gas
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.
(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
(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
(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
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.