The bill amends the Natural Resources Code to establish a process for designating certain natural gas facilities and entities as critical customers or critical gas suppliers during energy emergencies. The Texas Railroad Commission is tasked with collaborating with the Public Utility Commission of Texas to adopt rules that will define criteria for these designations, which will include essential operational elements such as natural gas production, processing, and transportation. 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 each facility.

Furthermore, the bill mandates that the Texas Railroad Commission initiate a rulemaking process to implement the new seasonal designation criteria within 90 days of the bill's effective date, with a final rule to be adopted by February 1, 2026. The Public Utility Commission is also required to open a rulemaking project to enable these seasonally designated critical facilities to participate in demand reductions. Lists of these 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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