The bill amends the Natural Resources Code to establish a framework for designating certain natural gas facilities and entities as critical during energy emergencies. It mandates collaboration between the Texas Railroad Commission and the Public Utility Commission of Texas to create rules that define criteria for identifying critical customers and gas suppliers. The criteria will consider essential operational elements such as natural gas production, processing, and transportation, and will ensure that only facilities prepared to operate during weather emergencies can be designated as critical. Additionally, the bill introduces a new provision that allows facilities designated as critical to apply for seasonal critical status, with the commission responsible for determining the specific seasons and dates for such designations.

To implement these changes, the Texas Railroad Commission is required to initiate a rulemaking process within 90 days of the bill's effective date, with a final rule to be adopted by February 1, 2026. The Public Utility Commission will also open a rulemaking project to allow these seasonal critical facilities to participate in demand reductions. Lists of designated critical facilities must be provided to the Public Utility Commission and the independent organization for the ERCOT power region by specified deadlines in 2026. The bill will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

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