By: Huberty, Paddie, Harless, King of Parker,	H.B. No. 2000
	et al.

	A BILL TO BE ENTITLED
	AN ACT
	relating to the funding of projects by the Texas Water Development
	Board to promote utility reliability, resiliency, efficiency,
	conservation, and demand reduction; authorizing the issuance of
	revenue bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  (a)  The legislature recognizes the importance
	of providing for the reliability and resiliency of this state's
	utilities, broadband providers, and power generation companies.
	The purpose of this Act is to ensure that proper funding in the form
	of meaningful and adequate financial assistance is available to
	enhance the reliability and resiliency of water, electric, and
	natural gas utilities, broadband providers, and power generation
	companies in this state, including by supporting projects to
	weatherize facilities, provide resilience, and reduce demand
	during periods of high demand.
	(b)  To accomplish that purpose, this Act creates the state
	utilities reliability fund. The fund is intended to serve as an
	infrastructure funding source in order to enhance the financing
	capabilities of the Texas Water Development Board under a
	constitutionally created program and a revenue bond program. Money
	in the fund will be available to provide any financial assistance,
	including market rate, low-interest, and no-interest loans, longer
	repayment terms for loans, deferral of loan payments, interest rate
	rebates and subsidies, loan guarantees, grants, or other financial
	assistance that meets the needs of this state, the recipients, and
	the purposes of this Act, as provided by Sections 49-d-15 and
	49-d-16, Article III, Texas Constitution.  In addition, this Act
	creates the state utilities reliability revenue fund for use in
	managing revenue bonds issued by the Texas Water Development Board
	that are supported by the state utilities reliability fund.  The
	state utilities reliability fund and the state utilities
	reliability revenue fund are not intended to be used to pay for new,
	dispatchable sources of electricity to be built by private
	entities.
	SECTION 2.  Chapter 447, Government Code, is amended by
	adding Section 447.014 to read as follows:
	Sec. 447.014.  ENERGY EFFICIENCY, NATURAL GAS CONSERVATION,
	AND WATER CONSERVATION LOAN PROGRAM. (a) Using money available
	from the state utilities reliability fund established under Chapter
	202, Utilities Code, the comptroller and the State Energy
	Conservation Office jointly by rule shall establish and administer
	a program that issues or guarantees loans to be used for
	improvements that increase the energy efficiency of and promote
	conservation of natural gas and water by residences and businesses
	that are not newly constructed.
	(b)  The rules adopted under this section must establish
	eligibility requirements for receipt of a loan issued or guaranteed
	under the program, including emissions reduction
	cost-effectiveness criteria.
	(c)  The State Energy Conservation Office annually shall
	submit to the Public Utility Commission of Texas and the Energy
	Systems Laboratory of the Texas A&M Engineering Experiment Station
	a report that:
	(1)  evaluates the effectiveness of the program; and
	(2)  quantifies energy savings and emissions
	reductions that result from the program for consideration in the
	state implementation plan, as described by Section 382.0173, Health
	and Safety Code, for emissions reduction credits.
	SECTION 3.  Title 4, Utilities Code, is amended by adding
	Subtitle C to read as follows:
	SUBTITLE C.  RELIABILITY AND RESILIENCY OF UTILITIES, BROADBAND
	PROVIDERS, AND POWER GENERATORS
	CHAPTER 201.  GENERAL PROVISIONS
	Sec. 201.001.  DEFINITIONS. In this subtitle:
	(1)  "Advisory committee" means the State Utilities
	Reliability Fund Advisory Committee.
	(2)  "Board" means the Texas Water Development Board.
	(3)  "Broadband provider" means any person,
	corporation, municipality or other political subdivision, or
	agency that owns or operates for compensation in this state
	facilities to provide broadband telecommunications capability and
	Internet access in this state.
	(4)  "Commission" means the Public Utility Commission
	of Texas.
	(5)  "Electric utility" has the meaning assigned by
	Section 31.002, except that the term includes an electric
	cooperative organized under Chapter 161 and a municipally owned
	utility.
	(6)  "Executive administrator" means the executive
	administrator of the Texas Water Development Board.
	(7)  "Facilities" means all of the property, plants,
	and equipment of an electric, natural gas, or water utility, a
	broadband provider, or a power generation company.  The term
	includes tangible property owned, operated, leased, used,
	controlled, or supplied for, by, or in connection with the business
	of the electric, natural gas, or water utility, the broadband
	provider, or the power generation company in this state.
	(8)  "Fund" means the state utilities reliability fund.
	(9)  "Historically underutilized business" has the
	meaning assigned by Section 2161.001, Government Code.
	(10)  "Natural gas utility" means a person who owns or
	operates for compensation in this state facilities to transmit or
	distribute combustible hydrocarbon natural gas or synthetic
	natural gas for sale or resale in a manner not subject to the
	jurisdiction of the Federal Energy Regulatory Commission under the
	Natural Gas Act (15 U.S.C. Section 717 et seq.).
	(11)  "Power generation company" has the meaning
	assigned by Section 31.002.
	(12)  "Railroad commission" means the Railroad
	Commission of Texas.
	(13)  "Revenue fund" means the state utilities
	reliability revenue fund.
	(14)  "State Energy Conservation Office" means a unit
	of the comptroller of public accounts.
	(15)  "Trust company" means the Texas Treasury
	Safekeeping Trust Company.
	(16)  "Water utility" means a person operating,
	maintaining, or controlling in this state facilities for providing
	potable water service or wastewater service, or both, for
	compensation.
	CHAPTER 202.  STATE UTILITIES RELIABILITY FUND
	Sec. 202.001.  FUND. (a)  The state utilities reliability
	fund is a special fund in the state treasury outside the general
	revenue fund to be used by the board as authorized by this chapter
	without further legislative appropriation.  The board may establish
	separate accounts in the fund and may transfer funds between
	accounts. The board may invest, reinvest, and direct the
	investment of money in the fund.  The fund and the fund's accounts
	may be kept and held by the trust company for and in the name of the
	board. The board has legal title to money and investments in the
	fund until money is disbursed from the fund as provided by this
	chapter and board rules.
	(b)  Money deposited to the credit of the fund may be used
	only as provided by Section 202.003.
	(c)  The fund consists of:
	(1)  money appropriated to the fund;
	(2)  money transferred or deposited to the credit of
	the fund by law, including money from any source transferred or
	deposited to the credit of the fund at the board's discretion as
	authorized by law;
	(3)  the proceeds of any fee or tax imposed by this
	state that by statute is dedicated for deposit to the credit of the
	fund;
	(4)  any other revenue that the legislature by statute
	dedicates for deposit to the credit of the fund;
	(5)  investment earnings and interest earned on amounts
	credited to the fund;
	(6)  repayments of loans made from the fund; and
	(7)  money transferred to the fund from another fund or
	account to which money from the fund was transferred.
	Sec. 202.002.  MANAGEMENT AND INVESTMENT OF FUND. (a)  The
	board or the trust company may hold and invest the fund, and any
	accounts established in the fund, for and in the name of the board,
	taking into account the purposes for which money in the fund may be
	used.  The fund may be invested with the state treasury pool.
	(b)  The overall objectives for the investment of the fund
	are, in order of precedence:
	(1)  preservation and safety of the fund principal;
	(2)  liquidity; and
	(3)  investment yield.
	(c)  The board or the trust company, as directed by the
	board, has any power necessary to accomplish the purposes of
	managing and investing the assets of the fund. In managing the
	assets of the fund, through procedures and subject to restrictions
	the board or the trust company considers appropriate, the board or
	the trust company may acquire, exchange, sell, supervise, manage,
	or retain any kind of investment that a prudent investor,
	exercising reasonable care, skill, and caution, would acquire or
	retain in light of the purposes, terms, distribution requirements,
	and other circumstances of the fund then prevailing, taking into
	consideration the investment of all the assets of the fund rather
	than a single investment.
	(d)  If the fund is managed by the trust company, the trust
	company may charge fees to cover its costs incurred in managing and
	investing the fund. The fees must be consistent with the fees the
	trust company charges other state and local governmental entities
	for which the trust company provides investment management
	services. The trust company may recover fees the trust company
	charges under this subsection only from the earnings of the fund.
	(e)  If the fund is managed by the trust company, the trust
	company annually shall provide a report to the board and to the
	advisory committee with respect to the investment of the fund. The
	trust company shall contract with a certified public accountant to
	conduct an independent audit of the fund annually and shall present
	the results of each annual audit to the board and to the advisory
	committee. This subsection does not affect the state auditor's
	authority to conduct an audit of the fund under Chapter 321,
	Government Code.
	(f)  The board or trust company shall adopt a written
	investment policy that is appropriate for the fund. If the fund is
	managed by the trust company:
	(1)  the trust company shall present the investment
	policy to the board and the investment advisory board established
	under Section 404.028, Government Code; and
	(2)  the board and investment advisory board shall
	submit to the trust company recommendations regarding the policy.
	(g)  If the fund is managed by the trust company, the board
	annually shall provide to the trust company a forecast of the cash
	flows into and out of the fund. The board shall provide updates to
	the forecasts as appropriate to assist the trust company in
	achieving the objectives specified by Subsection (b).
	(h)  If the fund is managed by the trust company, the company
	shall disburse money from the fund as directed by the board.  The
	board shall direct disbursements from the fund on a schedule
	specified by the board.  If any applicable revenue bonds are
	outstanding, the board shall direct disbursements from the fund not
	more frequently than twice in any state fiscal year.
	(i)  An investment-related contract entered into under this
	section is not subject to Chapter 2260, Government Code.
	Sec. 202.003.  USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS
	OR ACCOUNTS. (a)  The board or the trust company at the direction of
	the board shall make disbursements from the fund to the revenue fund
	in the amounts the board determines are needed for disbursement
	through the financing structures developed to meet the goals of the
	fund, including transfer of those amounts to other board programs
	or funds as necessary, or for debt service payments on or security
	provisions of the board's revenue bonds, after considering all
	other sources available for those purposes.
	(b)  The fund may be used only to:
	(1)  enhance the reliability and resiliency of water,
	electric, and natural gas utilities, broadband providers, and power
	generation companies for this state by supporting projects,
	including projects to weatherize facilities and reduce demand, in
	order to provide resilience and continuous service during periods
	of high demand;
	(2)  pay the necessary and reasonable expenses of the
	board in administering the fund; and
	(3)  transfer funds to other board programs or funds.
	(c)  Notwithstanding any other provision of this chapter,
	the use of the fund may be prioritized based on a statewide utility
	reliability and resiliency plan adopted under Section 202.010.
	(d)  The board may provide financial assistance from the fund
	for:
	(1)  a water utility project;
	(2)  an electric utility project;
	(3)  a natural gas utility project;
	(4)  a power generation company project;
	(5)  a water utility, electric utility, or natural gas
	utility project to reduce demand; or
	(6)  a broadband provider to provide matching funds to
	enable the broadband provider to participate in a federal program
	for broadband facilities.
	(e)  Financial assistance under Subsection (d) may be
	provided in any form as determined by the board, including a market
	rate, low-interest, or no-interest loan, a loan guarantee, an
	equity ownership in a public or private entity, a joint venture with
	a public or private entity, a grant, an interest rebate, or an
	interest subsidy.
	(f)  In providing financial assistance under Subsection (d),
	the board may make, enter into, and enforce contracts, agreements,
	including management agreements, for the management of any of the
	board's property, leases, indentures, mortgages, deeds of trust,
	security agreements, pledge agreements, credit agreements,
	overrides or other revenue sharing mechanisms, repurchase
	agreements, and other instruments with any person, including any
	lender and any federal, state, or local governmental agency, and to
	take other actions as may accomplish any of its purposes.
	(g)  The board may contract with and provide for the
	compensation of consultants and agents, including engineers,
	attorneys, management consultants, financial advisors, indexing
	agents, and other experts, as the business of the board under this
	chapter may require.
	(h)  The fund may not be used to subsidize or finance the
	construction of facilities that the board determines, in the
	board's sole discretion, will result in new electric generation
	capacity.
	(i)  Money in the fund may not be used for the purposes of
	certification under Section 403.121, Government Code.
	Sec. 202.004.  PRIORITIZATION OF PROJECTS BY BOARD. (a)  The
	board, for the purpose of providing financial assistance under this
	chapter, shall prioritize projects that enhance the reliability and
	resiliency of water, electric, and natural gas utilities, broadband
	providers, and power generation companies in this state.
	(b)  The board shall establish a point system for
	prioritizing projects for which financial assistance is sought from
	the board. The system must include a standard for the board to
	apply in determining whether a project qualifies for financial
	assistance at the time the application for financial assistance is
	filed with the board.
	(c)  The board shall give the highest consideration in
	awarding points to projects that will have a substantial effect,
	including projects that will:
	(1)  harden facilities to protect against extreme
	weather and fuel supply disruptions;
	(2)  enhance resiliency of existing facilities during
	periods of high demand;
	(3)  enhance the availability of fuel or water to
	existing power generation companies and electric utilities to
	improve the reliability of those companies and utilities to provide
	continuous and adequate electric service during periods of high
	demand;
	(4)  improve local resiliency by reducing demand
	through energy efficiency measures, advanced metering
	infrastructure deployment, and demand response technology
	deployment; and
	(5)  provide broadband service in low-income and rural
	communities.
	(d)  In addition to the criteria provided by Subsection (c),
	the board may also consider the following criteria in prioritizing
	projects:
	(1)  other funding sources secured by the applicant for
	the project, including any capital to be provided by the applicant;
	(2)  the financial capacity of the applicant to repay
	the financial assistance provided; and
	(3)  the ability of the applicant to timely leverage
	state financing with local, federal, or private funding.
	(e)  The board shall consider federal tax subsidies in
	prioritizing projects.
	Sec. 202.005.  ADVISORY COMMITTEE. (a)  The State Utilities
	Reliability Fund Advisory Committee is composed of the following
	members:
	(1)  the comptroller, or a person designated by the
	comptroller;
	(2)  three members of the senate appointed by the
	lieutenant governor, including:
	(A)  a member of the committee of the senate
	having primary jurisdiction over matters relating to finance; and
	(B)  a member of the committee of the senate
	having primary jurisdiction over natural resources;
	(3)  three members of the house of representatives
	appointed by the speaker of the house of representatives,
	including:
	(A)  a member of the committee of the house of
	representatives having primary jurisdiction over appropriations;
	and
	(B)  a member of the committee of the house of
	representatives having primary jurisdiction over natural
	resources;
	(4)  the chief executive of the Office of Public
	Utility Counsel, or a person designated by the chief executive of
	the Office of Public Utility Counsel;
	(5)  the presiding officer of the commission, or a
	person designated by the presiding officer of the commission;
	(6)  the chair of the Texas Reliability Entity board of
	directors, or a person designated by a public vote of the Texas
	Reliability Entity; and
	(7)  an unaffiliated board member of the Electric
	Reliability Council of Texas, appointed in a public meeting of the
	Electric Reliability Council of Texas.
	(b)  The board shall provide staff as necessary to assist the
	advisory committee.
	(c)  An appointed member of the advisory committee serves at
	the will of the officer who appointed the member.
	(d)  The lieutenant governor shall appoint a co-presiding
	officer of the advisory committee from among the members appointed
	by the lieutenant governor, and the speaker of the house of
	representatives shall appoint a co-presiding officer of the
	committee from among the members appointed by the speaker.
	(e)  The advisory committee shall hold public hearings,
	formal meetings, or work sessions in a location with audio and video
	capacity. The board shall broadcast over the Internet live video
	and audio of each public hearing, formal meeting, or work session of
	the advisory committee and provide access to each broadcast on the
	board's Internet website.  Either co-presiding officer of the
	advisory committee may call a public hearing, formal meeting, or
	work session of the advisory committee after issuing a public
	notice not later than the seventh day before the date of the public
	hearing, formal meeting, or work session. The public notice must
	include an agenda with formal actions included. The advisory
	committee may not take formal action at a public hearing, formal
	meeting, or work session unless a quorum of the committee is
	present. The board shall provide access on the board's Internet
	website to the public notices, recordings of the live broadcasts,
	and minutes of public hearings, formal meetings, and work sessions.
	(f)  Except as otherwise provided by this subsection, a
	member of the advisory committee is not entitled to receive
	compensation for service on the committee or reimbursement for
	expenses incurred in the performance of official duties as a member
	of the committee.  Service on the advisory committee by a member of
	the senate or house of representatives is considered legislative
	service for which the member is entitled to reimbursement and other
	benefits in the same manner and to the same extent as for other
	legislative service.
	(g)  The advisory committee shall submit comments and
	recommendations to the board regarding the use of money in the fund
	and in the revenue fund for use by the board in adopting rules under
	Section 202.006 and in adopting policies and procedures under
	Section 202.008. The submission must include:
	(1)  comments and recommendations on rulemaking
	related to the prioritization of projects in accordance with
	Section 202.004;
	(2)  comments and recommendations on rulemaking
	related to establishing standards for determining whether projects
	meet the criteria provided by Section 202.003;
	(3)  an evaluation of the available programs for
	providing financing for projects authorized by this chapter and
	guidelines for implementing those programs;
	(4)  an evaluation of the lending practices of the
	board and guidelines for lending standards;
	(5)  an evaluation of the use of funds by the board to
	provide support for financial assistance for projects that enhance
	the reliability and resiliency of water, electric, and natural gas
	utilities, broadband providers, and power generation companies for
	this state, including support for the purposes described by Section
	202.003(b);
	(6)  an evaluation of methods for encouraging
	participation in the programs established under this chapter by
	companies domiciled in this state or that employ a significant
	number of residents of this state; and
	(7)  an evaluation of the overall operation, function,
	and structure of the fund.
	(h)  The advisory committee shall review the overall
	operation, function, and structure of the fund at least
	semiannually and may provide comments and recommendations to the
	board on any matter.
	(i)  The advisory committee may adopt rules, procedures, and
	policies as needed to administer this section and implement its
	responsibilities.
	(j)  Chapter 2110, Government Code, does not apply to the
	size, composition, or duration of the advisory committee.
	(k)  The advisory committee is subject to Chapter 325,
	Government Code (Texas Sunset Act). Unless continued in existence
	as provided by that chapter, the advisory committee is abolished
	and this section expires September 1, 2035.
	(l)  The advisory committee shall make recommendations to
	the board regarding information to be posted on the board's
	Internet website under Section 202.007(b).
	(m)  The advisory committee shall evaluate and may provide
	comments or recommendations on the feasibility of the state owning,
	constructing, and operating water, electric, natural gas, power
	generation, or broadband facilities related to the purposes
	described by Section 202.003(b).
	(n)  The executive administrator shall provide an annual
	report to the advisory committee on:
	(1)  the board's compliance with statewide annual goals
	relating to historically underutilized businesses; and
	(2)  the participation level of historically
	underutilized businesses in projects that receive funding under
	this chapter.
	(o)  If the aggregate level of participation by historically
	underutilized businesses in projects that receive funding under
	this chapter does not meet statewide annual goals adopted under
	Chapter 2161, Government Code, the advisory committee shall make
	recommendations to the board to improve the participation level.
	Sec. 202.006.  RULES. (a)  The board shall adopt rules
	providing for the use of money in the fund that are consistent with
	this subchapter, including rules:
	(1)  establishing standards for determining whether
	projects meet the criteria provided by Section 202.003;
	(2)  providing for public access to information on
	financing assistance applications and providing for consideration
	of public comment before financing decisions are made; and
	(3)  specifying the manner for prioritizing projects
	for purposes of Section 202.004.
	(b)  The board shall give full consideration to the
	recommendations of the advisory committee before adopting rules
	under this chapter.
	Sec. 202.007.  REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
	Not later than December 1 of each even-numbered year, the board
	shall provide a report to the governor, lieutenant governor,
	speaker of the house of representatives, and members of the
	legislature regarding the use of the fund.
	(b)  The board shall post the following information on the
	board's Internet website regarding the use of the fund and
	regularly update the information posted:
	(1)  the progress made in enhancing critical water,
	electric, natural gas, and broadband infrastructure to withstand
	periods of high demand; and
	(2)  a description of each project funded through the
	fund, including the expected date of completion of the project.
	Sec. 202.008.  POLICIES AND PROCEDURES TO MITIGATE OR
	MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
	adopt, and may amend from time to time at the board's discretion,
	policies and procedures for the purpose of mitigating or minimizing
	the adverse effects, if any, of federal laws and regulations
	relating to income taxes, arbitrage, rebates, and related matters
	that may restrict the board's ability to freely invest all or part
	of the fund or to receive and retain all the earnings from the fund.
	Sec. 202.009.  COOPERATION WITH OTHER STATE AGENCIES. (a)
	The commission, railroad commission, the State Energy Conservation
	Office, and other state agencies shall provide resources to the
	board that the board determines are necessary to carry out the
	board's duties and responsibilities under this chapter.
	(b)  The board may require the commission to review and
	recommend for approval electric utility, power generation company,
	and broadband provider projects for board assistance under this
	chapter and inspect electric utility, power generation company, and
	broadband provider projects after board financial assistance.
	(c)  The board may require the railroad commission to review
	and recommend for approval natural gas utility and power generation
	projects for board assistance under this chapter and inspect
	natural gas utility and power generation company projects after
	board financial assistance.
	(d)  The board may require any other state agency to provide
	services to the board to ensure the goals of the fund and this
	chapter are met.
	Sec. 202.010.  RELIABILITY AND RESILIENCY STUDY AND PLAN.
	(a)  The board may, at any time, develop and conduct a study of the
	needs, causes, and methods to address reliability and resiliency of
	the industries affected by this chapter and may develop a statewide
	reliability and resiliency plan.
	(b)  The board may, at any time, use money from the fund to
	contract and engage outside entities to develop a study or plan
	considered necessary by the board.
	Sec. 202.011.  CHANGES TO INDUSTRY STRUCTURE NOT IN CONFLICT
	WITH CHAPTER.  Any reconstruction or changes to the regulatory
	market structures of the industries identified in this chapter are
	not in conflict with the purpose of this chapter.
	Sec. 202.012.  PUBLIC PRIVATE PARTNERSHIPS. Money from the
	fund may be used to make payments under a public and private entity
	agreement to design, develop, finance, or construct a project
	described by this chapter.
	Sec. 202.013.  METHODOLOGY AND STANDARDS FOR POWER
	GENERATION FACILITY WEATHERIZATION. (a)  The commission shall
	develop a statistical methodology to determine the ambient
	conditions to which each power generation facility must be
	weatherized to comply with winter operations reliability
	standards.
	(b)  A methodology or standard developed under Subsection
	(a) may be used only to determine whether to provide financial
	assistance or support to a project to weatherize a power generation
	facility under this subtitle.
	CHAPTER 203. STATE UTILITIES RELIABILITY REVENUE FUND
	Sec. 203.001.  REVENUE FUND. (a)  The state utilities
	reliability revenue fund is a special fund in the state treasury
	outside the general revenue fund to be used by the board as
	authorized by this chapter without further legislative
	appropriation. The board may establish separate accounts in the
	revenue fund and may transfer money between accounts. The board has
	legal title to money and investments in the revenue fund until the
	money is disbursed as provided by this chapter and board rules.
	(b)  Money deposited to the credit of the revenue fund may be
	used only as provided by Section 203.003.
	(c)  The revenue fund consists of:
	(1)  money appropriated to the revenue fund;
	(2)  money transferred or deposited to the credit of
	the revenue fund by law, including money from any source
	transferred or deposited to the credit of the revenue fund at the
	board's discretion as authorized by law;
	(3)  the proceeds of any fee or tax imposed by this
	state that by statute is dedicated for deposit to the credit of the
	revenue fund;
	(4)  any other revenue that the legislature by statute
	dedicates for deposit to the credit of the revenue fund;
	(5)  investment earnings and interest earned on amounts
	credited to the revenue fund;
	(6)  the proceeds from the sale of revenue bonds issued
	by the board under this chapter that are designated by the board for
	the purpose of providing money for the revenue fund;
	(7)  repayments of loans made from the revenue fund;
	and
	(8)  money disbursed to the revenue fund from the state
	utilities reliability fund as authorized by Section 202.003.
	Sec. 203.002.  MANAGEMENT AND INVESTMENT OF REVENUE FUND.
	(a)  Money deposited to the credit of the revenue fund shall be
	invested as determined by the board. The revenue fund may be
	invested with the state treasury pool.
	(b)  The revenue fund and any accounts established in the
	revenue fund shall be kept and maintained by or at the direction of
	the board.
	(c)  At the direction of the board, the revenue fund and any
	accounts established in the revenue fund may be managed by the
	board, the comptroller, or a corporate trustee that is a trust
	company or a bank that has the powers of a trust company for and on
	behalf of the board and, pending use of the revenue fund and
	accounts for the purposes provided by this chapter, may be invested
	as provided by an order, resolution, or rule of the board.
	(d)  The board, comptroller, or corporate trustee shall
	manage the revenue fund in strict accordance with this chapter and
	the orders, resolutions, and rules of the board.
	Sec. 203.003.  USE OF REVENUE FUND. (a)  Money in the
	revenue fund may be used by the board only to provide financial
	assistance under terms specified by the board for projects that
	enhance the reliability and resiliency of water, electric, natural
	gas, broadband, and power generation facilities in this state,
	including:
	(1)  projects that enhance the ability of facilities to
	withstand periods of high demand;
	(2)  projects that reduce demand during periods of high
	demand; and
	(3)  projects to weatherize facilities.
	(b)  Financial assistance for projects under Subsection (a)
	may be provided in any form determined by the board that meets the
	needs and goals of this state and the applicants, including a market
	rate, low-interest, or no-interest loan, loan guarantee, equity
	ownership in a public or private entity, a joint venture with a
	public or private entity, a grant, an interest rebate, or an
	interest subsidy.
	(c)  In providing financial assistance under Subsection (a),
	the board may:
	(1)  make, enter into, and enforce contracts and
	agreements, including management agreements, for the management of
	any of the board's property, leases, indentures, mortgages, deeds
	of trust, security agreements, pledge agreements, credit
	agreements, overrides or other revenue sharing mechanisms,
	repurchase agreements, and other instruments with any person,
	including any lender and any federal, state, or local governmental
	agency;
	(2)  contract with and provide for the compensation of
	consultants and agents, including engineers, attorneys, management
	consultants, financial advisors, indexing agents, and other
	experts, as the business of the board may require; and
	(3)  take other actions to accomplish any of the board's
	purposes.
	(d)  The board may use money in the revenue fund:
	(1)  as a source of revenue or security for the payment
	of the principal of and interest on revenue bonds issued by the
	board under this chapter;
	(2)  to pay the necessary and reasonable expenses of
	paying agents, bond counsel, and financial advisory services and
	similar costs incurred by the board in administering the revenue
	fund; or
	(3)  to transfer money to the fund as necessary.
	(e)  The board, comptroller, or corporate trustee managing
	the revenue fund at the direction of the board shall withdraw from
	the revenue fund and pay to a person any amounts, as determined by
	the board, for the timely payment of:
	(1)  the principal of and interest on bonds described
	by Subsection (d)(1) that mature or become due; and
	(2)  any cost related to bonds described by Subsection
	(d)(1) that become due, including payments under related credit
	agreements.
	(f)  Money in the revenue fund may not be used for the purpose
	of certification under Section 403.121, Government Code.
	Sec. 203.004.  ISSUANCE OF REVENUE BONDS. (a)  The board may
	issue revenue bonds for the purpose of providing money for the
	revenue fund.
	(b)  The board may issue revenue bonds to refund revenue
	bonds or bonds and obligations issued or incurred in accordance
	with other provisions of law.
	(c)  Revenue bonds issued under this chapter are special
	obligations of the board payable only from and secured by
	designated income and receipts of the revenue fund, or of one or
	more accounts in the revenue fund, including principal of and
	interest paid and to be paid on revenue fund assets or income from
	accounts created within the revenue fund by the board, as
	determined by the board.
	(d)  Revenue bonds issued under this chapter do not
	constitute indebtedness of the state as prohibited by the
	constitution.
	(e)  The board may require revenue fund participants to make
	charges, levy taxes, or otherwise provide for sufficient money to
	pay acquired obligations.
	(f)  Revenue bonds issued under this chapter must be
	authorized by resolution of the board and must have the form and
	characteristics and bear the designations as the resolution
	provides.
	(g)  Revenue bonds issued under this chapter may:
	(1)  bear interest at the rate or rates payable
	annually or otherwise;
	(2)  be dated;
	(3)  mature at the time or times, serially, as term
	revenue bonds, or otherwise in not more than 50 years from their
	dates;
	(4)  be callable before stated maturity on the terms
	and at the prices, be in the denominations, be in the form, either
	coupon or registered, carry registration privileges as to principal
	only or as to both principal and interest and as to successive
	exchange of coupon for registered bonds or one denomination for
	bonds of other denominations, and successive exchange of registered
	revenue bonds for coupon revenue bonds, be executed in the manner,
	and be payable at the place or places inside or outside the state,
	as provided by the resolution;
	(5)  be issued in temporary or permanent form;
	(6)  be issued in one or more installments and from time
	to time as required and sold at a price or prices and under terms
	determined by the board to be the most advantageous reasonably
	obtainable; and
	(7)  be issued on a parity with and be secured in the
	manner as other revenue bonds authorized to be issued by this
	chapter or may be issued without parity and secured differently
	than other revenue bonds.
	(h)  Section 17.955, Water Code, applies to revenue bonds
	issued under this chapter in the same manner as that section applies
	to water financial assistance bonds.
	(i)  All proceedings relating to the issuance of revenue
	bonds issued under this chapter shall be submitted to the attorney
	general for examination. If the attorney general finds that the
	revenue bonds have been authorized in accordance with law, the
	attorney general shall approve the revenue bonds, and the revenue
	bonds shall be registered by the comptroller. After the approval
	and registration, the revenue bonds are incontestable in any court
	or other forum for any reason and are valid and binding obligations
	in accordance with their terms for all purposes.
	(j)  The proceeds received from the sale of revenue bonds
	issued under this chapter may be deposited or invested in any manner
	and in such investments as may be specified in the resolution or
	other proceedings authorizing those obligations. Money in the
	revenue fund or accounts created by this chapter or created in the
	resolution or other proceedings authorizing the revenue bonds may
	be invested in any manner and in any obligations as may be specified
	in the resolution or other proceedings.
	Sec. 203.005.  CHAPTER CUMULATIVE OF OTHER LAWS. (a)  This
	chapter is cumulative of other laws on the subject, and the board
	may use provisions of other applicable laws in the issuance of bonds
	and other obligations, but this chapter is wholly sufficient
	authority for the issuance of bonds and other obligations and the
	performance of all other acts and procedures authorized by this
	chapter.
	(b)  In addition to other authority granted by this chapter,
	the board may exercise the authority granted to the governing body
	of an issuer with regard to the issuance of obligations under
	Chapter 1371, Government Code.
	SECTION 4.  Section 15.102(b), Water Code, is amended to
	read as follows:
	(b)  The loan fund may also be used by the board to provide:
	(1)  grants or loans for projects that include
	supplying water and wastewater services in economically distressed
	areas or nonborder colonias as provided by legislative
	appropriations, this chapter, and board rules, including projects
	involving retail distribution of those services; [and]
	(2)  grants for:
	(A)  projects for which federal grant funds are
	placed in the loan fund;
	(B)  projects, on specific legislative
	appropriation for those projects; or
	(C)  water conservation, desalination, brush
	control, weather modification, regionalization, and projects
	providing regional water quality enhancement services as defined by
	board rule, including regional conveyance systems; and
	(3)  loans or grants to water utilities, as that term is
	defined by Section 201.001, Utilities Code, for projects that
	enhance the reliability and resiliency of those water utilities by
	weatherizing facilities or reducing water demand through water
	conservation and water demand reduction efforts.
	SECTION 5.  (a) The terms used in this section have the
	meanings assigned by Section 201.001, Utilities Code, as added by
	this Act.
	(b)  The executive administrator of the Texas Water
	Development Board, in coordination with the Public Utility
	Commission of Texas, the Texas Commission on Environmental Quality,
	the Railroad Commission of Texas, the State Energy Conservation
	Office, and the independent organization certified under Section
	39.151, Utilities Code, for the ERCOT power region, shall conduct a
	study regarding:
	(1)  the need for financial assistance from the state
	to weatherize:
	(A)  water utility facilities;
	(B)  electric utility facilities;
	(C)  natural gas utility facilities;
	(D)  power generation companies; and
	(E)  broadband provider facilities;
	(2)  the need for financial assistance from the state
	to provide adequate capacity during periods of high demand for
	electric utilities and natural gas utilities, including by reducing
	electric and natural gas demand; and
	(3)  the financing structures desirable to potential
	applicants for the categories listed in Subdivisions (1) and (2) of
	this subsection.
	(c)  The costs of the report, including any external
	management or consulting services considered necessary, may be paid
	from the state utilities reliability fund.
	(d)  The executive administrator shall submit the report to
	the State Utilities Reliability Fund Advisory Committee not later
	than March 1, 2023.
	(e)  This section expires September 1, 2023.
	SECTION 6.  As soon as practicable after the effective date
	of this Act, the lieutenant governor and the speaker of the house of
	representatives shall appoint the initial appointive members of the
	State Utilities Reliability Fund Advisory Committee as provided by
	Section 202.005, Utilities Code, as added by this Act.
	SECTION 7.  (a)  Not later than June 1, 2023, the State
	Utilities Reliability Fund Advisory Committee shall submit
	recommendations to the Texas Water Development Board on the rules
	to be adopted by the board under Section 202.006(a), Utilities
	Code, as added by this Act.
	(b)  Not later than December 1, 2023, the board shall propose
	rules under Section 202.006, Utilities Code, as added by this Act.
	SECTION 8.  The Texas Water Development Board shall post the
	information described by Section 202.007(b), Utilities Code, as
	added by this Act, on the board's Internet website not later than
	March 1, 2022.
	SECTION 9.  (a)  Except as provided by Subsection (b) of this
	section:
	(1)  this Act takes effect on the date on which the
	constitutional amendment proposed by the 87th Legislature, Regular
	Session, 2021, creating the state utilities reliability fund and
	the state utilities reliability revenue fund to provide financial
	support for projects that enhance the reliability and resiliency of
	water, electric, and natural gas utilities, broadband providers,
	and power generation companies in this state takes effect; or
	(2)  if the amendment described by Subdivision (1) of
	this subsection is not approved by the voters, this Act has no
	effect.
	(b)  Regardless of whether the constitutional amendment
	described by Subsection (a) of this section is approved by the
	voters, Section 5 of this Act takes effect:
	(1)  immediately, if this Act receives a vote of
	two-thirds of all the members elected to each house, as provided by
	Section 39, Article III, Texas Constitution; or
	(2)  September 1, 2021, if this Act does not receive the
	vote necessary for immediate effect.