SB2211 - Relating to a qualifying cogenerator that serves a large load and a colocated desalination facility.

      By: Sparks S.B. No. 2211               A BILL TO BE ENTITLED   AN ACT   relating to a qualifying cogenerator that serves a large load and a   colocated desalination facility.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 31.002, Utilities Code, is amended by   amending Subdivision (13) to read as follows:                (13)  "Qualifying cogenerator" and "qualifying small   power producer" have the meanings assigned those terms by 16 U.S.C.   Sections 796(18)(C) and 796(17)(D). A qualifying cogenerator that   provides electricity to a purchaser of the cogenerator's thermal   output is not for that reason considered to be a retail electric   provider or a power generation company. A qualifying cogenerator   includes an owner or operator of dispatchable generation that:                       (A)     provides thermal, steam or waste heat for use   by a co-located desalination facility; and                         (B)     serves a load whose primary purpose is the   manufacture of digital products.          SECTION 2.  Subsection 37.001, Utilities Code, is amended by   amending Subdivision (3) to read as follows:                (3)  "Retail electric utility" means a person,   political subdivision, electric cooperative, or agency that   operates, maintains, or controls in this state a facility to   provide retail electric utility service. The term does not include   a corporation described by Section 32.053 to the extent that the   corporation sells electricity exclusively at wholesale and not to   the ultimate consumer. A qualifying cogenerator that sells electric   energy at retail to the sole purchaser of the cogenerator's thermal   output under Sections 35.061 and 36.007 is not for that reason   considered to be a retail electric utility. The owner or operator of   a qualifying cogeneration facility who was issued the necessary   environmental permits from the Texas Natural Resource Conservation   Commission after January 1, 1998, and who commenced construction of   such qualifying facility before July 1, 1998, may provide   electricity to the purchasers of the thermal output of that   qualifying facility and shall not for that reason be considered an   electric utility or a retail electric utility, provided that the   purchasers of the thermal output are owners of manufacturing or   process operation facilities that are located on a site entirely   owned before September, 1987, by one owner who retained ownership   after September, 1987, of some portion of the facilities and that   those facilities now share some integrated operations, such as the   provision of services and raw materials. A person who is an electric   generation equipment lessor or operator is not for that reason   considered to be a retail electric utility. A person who owns or   operates equipment used solely to provide electricity charging   service for consumption by an alternatively fueled vehicle, as   defined by Section 502.004, Transportation Code, is not for that   reason considered to be a retail electric utility. The owner or   operator of a qualifying congenator as defined by Subdivision   31.002(13) is not considered to be a retail electric utility if the   owner or operator of a qualifying cogenerator is providing   electricity to a manufacturer of digital products and thermal,   steam, or waste heat to a colocated desalination facility.            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.