S.B. No. 2321 amends the Health and Safety Code by adding Section 382.086, which grants the Texas Commission on Environmental Quality (TCEQ) the authority to waive enforcement of emissions regulations for electric generation facilities and on-site backup generation facilities during periods of heightened electric demand or grid reliability events. This waiver can be initiated upon notification from an independent system operator, indicating that additional electric generation is necessary to address an emergency condition or significant risk of such a condition. The bill outlines the responsibilities of the independent system operator to inform market participants about the duration of the waiver and specifies that the TCEQ retains discretion to enforce certain rules or standards during this period.

Additionally, the bill requires owners or operators of eligible facilities to take reasonable steps to minimize excess emissions, maintain operational records, and submit documentation to the TCEQ detailing any exceedances of emissions limits during the waiver period. This documentation must include specific information about the facility and the nature of any emissions events. The TCEQ is also given discretion to consider exceedances during the waiver period when determining enforcement actions. The provisions of this act will take effect on September 1, 2025.

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