Relating to the regulation of emissions by the Texas Commission on Environmental Quality during an event affecting electric demand or grid reliability, the official text

S.B. No. 2321

AN ACT

relating to the regulation of emissions by the Texas Commission on

Environmental Quality during an event affecting electric demand or

grid reliability.

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

SECTION 1. Subchapter D, Chapter 382, Health and Safety

Code, is amended by adding Section 382.086 to read as follows:

Sec. 382.086. ENFORCEMENT DURING ELECTRIC DEMAND AND

RELIABILITY EVENT. (a) The commission may exercise the

commission's enforcement discretion to waive enforcement for

emissions from electric generation facilities and on-site backup

generation facilities in this state during a period requested by an

independent system operator if the independent system operator

notifies the commission that additional electric generation is

necessary to mitigate an emergency condition or a significant risk

of an emergency condition.

(b) After an independent system operator submits a

notification to the commission under Subsection (a):

(1) the independent system operator shall notify

market participants in this state of the period in the notification

during which limits or standards described by Subdivision (2) may

not apply to the operation of an electric generation facility or

on-site backup generation facility in this state; and

(2) notwithstanding any other state law and subject to

Subsection (d), the commission has the discretion to enforce a rule

or standard, including an emissions limit or standard, hours of

operation limit, or any similar operational limit, against the

owner or operator of an electric generation facility or on-site

backup generation facility for the period in the notification.

(c) The owner or operator of an electric generation facility

or on-site backup generation facility eligible for waived

enforcement during the period in a notification submitted under

Subsection (a) shall:

(1) take commercially reasonable steps to operate

environmental controls and minimize excess emissions during the

period;

(2) maintain operational records during the period;

and

(3) submit proper documentation of the facility's

operational records to the commission, including:

(A) the facility's name;

(B) a contact name and phone number;

(C) the county in which the facility is located;

(D) the customer reference number issued to the

facility by the commission;

(E) the name of any units in the facility that

exceeded an emissions limit or standard during the period; and

(F) a description of the emissions event,

including the date, time, pollutant, quantity, and duration.

(d) The commission has the discretion to consider whether an

exceedance of an emissions limit or standard during a period for

which a notification is submitted under Subsection (a) is

appropriate as the basis for an enforcement action against the

owner or operator of an electric generation facility or on-site

backup generation facility based on information available to the

commission, including information contained in the documentation

required by Subsection (c)(3).

(e) The owner or operator of an electric generation facility

or an on-site backup generation facility eligible for waived

enforcement during the period in a notification submitted under

Subsection (a) shall report any exceedance of an emissions limit or

standard in accordance with commission regulations and permit

requirements.

SECTION 2. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 2321 passed the Senate on

April 16, 2025, by the following vote: Yeas 31, Nays 0; and that

the Senate concurred in House amendment on May 30, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 2321 passed the House, with

amendment, on May 28, 2025, by the following vote: Yeas 140,

Nays 2, one present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor