The bill, S.B. No. 2321, introduces new regulations regarding emissions from electric generation facilities in Texas during events that affect electric demand or grid reliability. It 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 standards for electric generation and on-site backup generation facilities when an independent system operator determines that additional electric generation is necessary to address an emergency condition. The bill outlines the responsibilities of the independent system operator to notify market participants and specifies that the TCEQ retains discretion to enforce emissions limits during the waiver 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. The TCEQ will consider this information when determining whether to take enforcement action. The provisions of this bill are set to take effect on September 1, 2025.

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