S.B. No. 2321 introduces new regulations concerning emissions from electric generation facilities in Texas during periods of heightened electric demand or grid reliability events. The bill allows the Texas Commission on Environmental Quality (TCEQ) to exercise enforcement discretion to waive emissions enforcement for these facilities when notified by an independent system operator that additional electric generation is necessary to address an emergency condition. The bill outlines the responsibilities of the independent system operator to inform market participants about the enforcement waiver period and grants TCEQ the authority to enforce emissions limits and operational standards during this time.

Additionally, the bill mandates that owners or operators of eligible electric generation facilities take commercially reasonable steps to minimize excess emissions, maintain operational records, and submit documentation to TCEQ detailing any exceedances of emissions limits during the waiver period. The documentation must include specific information about the facility and the nature of any emissions events. The bill emphasizes that TCEQ retains the discretion to consider any exceedances during the waiver period for potential enforcement actions based on the information provided. This legislation is set to take effect on September 1, 2025.

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