TEXAS ENERGY AND INTELLIGENCE INFRASTRUCTURE SECURITY BOARD ACT
Texas Government Code · Chapter 481A
Creates the Texas Energy and Intelligence Infrastructure Security Board (TEIISB), a single state-level convening authority that coordinates Texas information-technology sovereignty, critical-infrastructure security and foreign-ownership review, voluntary Power Production Compact certification, universal baseline operating standards, the community-benefit-agreement floor and buffer-zone review, consolidated state permitting aligned with the federal ADVANCE Act, and the statutory mitigation floor for qualifying data-center facilities.
By: ___________________
H.B. No. _____
A BILL TO BE ENTITLED AN ACT
relating to the creation of the Texas Energy and Intelligence Infrastructure Security Board and its authority over data center operations, voluntary Power Production Compact certification, critical-infrastructure security, and Texas information-technology sovereignty; imposing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. SHORT TITLE.
This Act may be cited as the Texas Energy and Intelligence Infrastructure Security Board Act.
SECTION 2. FINDINGS AND PURPOSE.
The legislature finds that:
(1)the Texas Energy and Intelligence Infrastructure Security Board exists to bring together every existing Texas regulatory body, including the Public Utility Commission, the Electric Reliability Council of Texas, the Texas Commission on Environmental Quality, the General Land Office, the Department of Information Resources, the Division of Emergency Management, the Department of Public Safety, the Texas Higher Education Coordinating Board, and the Texas Workforce Commission, with the private industry that must build alongside them, to solve the energy and intelligence-infrastructure problem of this state in three coordinated movements: build new generation capacity fast, where it is needed; build a system that scales as demand scales, indefinitely; and ensure the impact on Texas families, communities, and lands is a net benefit;
(2)the purpose of solving these three is to make Texas more independent, to secure the information-technology and physical-infrastructure systems of this state against domestic and foreign threats, and to establish Texas as the intelligence hub of the world while preserving the lands, way of life, agriculture, and sovereignty of this state;
(3)should the rest of the world go sideways, Texans should know that through the work of the Board, the power systems and information-technology systems of this state are secure;
(4)participation in a Power Production Compact certified by the Board is voluntary, and certification unlocks the enhanced locational value credit tier under Chapter 39A, Utilities Code, expedited consolidated permitting, brownfield-site priority, and the state matching contribution to the Community Infrastructure Fund under Subchapter H; and
(5)the rapid expansion of high-density computing facilities in this state creates an immediate public-interest need for a single state-level convening authority to license data center operations and to coordinate the energy, environmental, water, workforce, security, and information-technology consequences of that expansion.
SECTION 3.
Title 4, Government Code, is amended by adding Subtitle K to read as follows:
SUBTITLE K. DATA CENTERS, ENERGY, AND INTELLIGENCE INFRASTRUCTURE SECURITY
SECTION 4.
Subtitle K, Title 4, Government Code, as added by this Act, is amended by adding Chapter 481A to read as follows:
CHAPTER 481A. TEXAS ENERGY AND INTELLIGENCE INFRASTRUCTURE SECURITY BOARD
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 481A.001. SHORT TITLE.
This chapter may be cited as the Texas Energy and Intelligence Infrastructure Security Board Act.
Sec. 481A.002. DEFINITIONS.
In this chapter:
(1)"Adversary-nation entity" has the meaning assigned by Section 481A.054.
(2)"Air-Burdened Texas Community" has the meaning assigned by Section 481A.081.
(3)"Board" or "TEIISB" means the Texas Energy and Intelligence Infrastructure Security Board established under Section 481A.011.
(4)"Buffer zone" has the meaning assigned by Section 481A.071.
(5)"CEIBA" means a cumulative emissions impact and buffer assessment under Section 481A.072.
(6)"Certified Power Production Compact" or "certified PPC" means a Power Production Compact certified by the Board under Subchapter F.
(7)"Co-located generation" means an electric generation facility located on, adjacent to, or contractually dedicated to a data center campus.
(8)"Commission" means the Public Utility Commission of Texas.
(9)"Community benefit agreement" or "CBA" means an agreement that satisfies the requirements of Subchapter H.
(10)"Data center facility" has the meaning assigned by Section 39B.001, Utilities Code.
(11)"DIR" means the Department of Information Resources established under Chapter 2054.
(12)"Distributed generation node" or "node" has the meaning assigned by Section 39A.001, Utilities Code.
(13)"DPS" means the Department of Public Safety.
(14)"ERCOT" means the Electric Reliability Council of Texas.
(15)"Existing-disturbed site" means a site previously used for industrial purposes, including a brownfield, a former or active coal or lignite mine, an existing utility right-of-way, an existing nuclear site, or a similar previously disturbed parcel.
(16)"GLO" means the General Land Office.
(17)"Host city" means the municipality within whose corporate limits or extraterritorial jurisdiction a facility is sited.
(18)"Host county" means the county within whose boundaries a facility is sited.
(19)"License" or "operating license" means the data center operating license issued under Subchapter C.
(20)"Net water neutrality certification" means a certification under Subchapter K.
(21)"PUCT" means the Public Utility Commission of Texas.
(22)"Qualifying data center facility" has the meaning assigned by Section 39B.001, Utilities Code.
(23)"Reclaimed water" has the meaning assigned by Section 26.039, Water Code.
(24)"TCEQ" means the Texas Commission on Environmental Quality.
(25)"TDEM" means the Texas Division of Emergency Management.
(26)"Texas-domiciled" has the meaning assigned by Section 39B.001, Utilities Code.
(27)"Texas-resident workforce" means a workforce in which a majority of the construction and operations employees and contractors maintain a permanent residence in this state.
(28)"THECB" means the Texas Higher Education Coordinating Board.
(29)"TWC" means the Texas Workforce Commission.
Sec. 481A.003. FINDINGS.
In addition to the findings in Section 2 of the Act adding this chapter, the legislature finds that:
(1)the security of the information-technology infrastructure of this state is a core sovereign interest of this state, distinct from but coordinated with the federal critical- infrastructure-protection framework;
(2)data center operations, taken together with co-located generation, can impose cumulative air, water, land, and infrastructure burdens on host communities;
(3)a Texas-administered framework that combines licensure, baseline mitigation standards, community benefit requirements, voluntary Power Production Compact certification, and critical-infrastructure security review best protects the families and property rights of this state while supporting the orderly growth of the data center industry in this state; and
(4)a Texas-first information-technology framework, anchored in state-resident workforce pipelines, Texas-routed peering for state-government workloads, integration with existing state information resources, and a Texas-state foreign-ownership review process, advances the public interest of this state.
Sec. 481A.004. APPLICABILITY.
This chapter applies to:
(1)a qualifying data center facility under Chapter 39B, Utilities Code;
(2)a distributed generation node established under Chapter 39A, Utilities Code; and
(3)any co-located generation associated with a facility or node described in Subdivisions (1) and (2).
SUBCHAPTER B. TEXAS ENERGY AND INTELLIGENCE INFRASTRUCTURE SECURITY BOARD
Sec. 481A.011. BOARD ESTABLISHED.
The Texas Energy and Intelligence Infrastructure Security Board is established as an independent state board.
Sec. 481A.012. COMPOSITION; APPOINTMENTS.
(a) The Board is composed of nine members appointed by the governor with the advice and consent of the senate.
(b)The Board must include:
(1)three members with demonstrated expertise in the electric generation, transmission, or wholesale market sectors of this state;
(2)two members with demonstrated expertise in data center operations, information-technology infrastructure, or information-security operations;
(3)one member representing residential ratepayer interests, selected by the governor from a list of not fewer than three nominees submitted by the Office of Public Utility Counsel;
(4)one member representing host-community local government interests, selected by the governor from a list of not fewer than three nominees submitted jointly by the Texas Municipal League and the Texas Association of Counties;
(5)one member with demonstrated expertise in environmental engineering, with preference given to expertise in industrial air emissions control and water-resource engineering; and
(6)one member with demonstrated expertise in workforce development, selected by the governor from a list of not fewer than three nominees submitted by THECB.
(c)A person may not serve as a member of the Board if the person, the person's spouse, or a member of the person's household holds a direct financial interest in:
(1)a qualifying data center facility under Chapter 39B, Utilities Code;
(2)a generator licensed within a node under Chapter 39A, Utilities Code; or
(3)a contractor or vendor under contract for an amount of $100,000 or more, in the aggregate during the preceding two years, to a facility or generator described in Subdivisions (1) and (2).
Sec. 481A.013. TERMS; VACANCIES.
(a) Members of the Board serve staggered six-year terms, with the terms of three members expiring February 1 of each odd-numbered year.
(b)A vacancy occurring before the expiration of a term is filled by appointment by the governor with the advice and consent of the senate for the unexpired portion of the term, in the same manner and from the same nominee category as the original appointment.
(c)A member may serve until the member's successor is appointed and qualified, but not more than 180 days after the expiration of the member's term.
Sec. 481A.014.
QUALIFICATIONS AND CONFLICTS OF INTEREST. (a) A member of the Board must be a resident of this state.
(b)A member must disclose in writing to the Board, and to the secretary of state for posting in the public registry under Section 481A.037, any interest of the member, the member's spouse, or a member of the member's household in a person regulated by the Board.
(c)A member shall recuse from any matter in which the member has a personal, financial, or family interest that creates a conflict of interest under Chapter 572 of this code.
(d)A member or former member may not, for two years following the date the member ceases to serve on the Board, accept employment, a consulting engagement, or a direct contract with a person regulated by the Board.
Sec. 481A.015. CHAIR; OFFICERS.
(a) The governor designates a member to serve as chair of the Board for a term coterminous with the term of the governor.
(b)The Board elects a vice-chair and a secretary from among its members at the first meeting of each calendar year.
Sec. 481A.016. COMPENSATION; PER DIEM.
A member of the Board is not entitled to compensation but is entitled to reimbursement of actual and necessary expenses incurred in the performance of the member's duties, including a per diem at the rate provided in the general appropriations act for state employees.
Sec. 481A.017. POWERS AND DUTIES OF THE BOARD.
(a) The Board shall:
(1)administer this chapter;
(2)issue, renew, condition, suspend, and revoke a data center operating license under Subchapter C;
(3)exercise the authority assigned by Subchapter D relating to Texas information-technology sovereignty and intelligence-hub coordination;
(4)exercise the authority assigned by Subchapter E relating to critical-infrastructure security and foreign-ownership review;
(5)certify and oversee voluntary Power Production Compacts under Subchapter F;
(6)adopt and enforce the universal baseline operating standards under Subchapter G;
(7)enforce the community benefit agreement floor and buffer zone review under Subchapter H;
(8)administer the consolidated state permitting process aligned with the federal ADVANCE Act under Subchapter I;
(9)enforce the statutory mitigation floor under Subchapter J, including the Net Water Neutrality standard under Subchapter K applicable to a holder of a certified PPC;
(10)designate specific sites within a distributed generation node established under Chapter 39A, Utilities Code, and license facilities sited within a node;
(11)adopt rules necessary to implement this chapter; and
(12)enter into a memorandum of understanding with the commission, ERCOT, TCEQ, GLO, DIR, TDEM, DPS, THECB, TWC, and any other agency the Board determines necessary to coordinate the functions of the Board.
(b)The Board may:
(1)retain technical, legal, financial, and information-security advisors;
(2)contract for independent inspection, monitoring, audit, and cybersecurity assessment services;
(3)designate, after notice and an opportunity for public comment, additional distributed generation nodes beyond those listed in Section 39A.003, Utilities Code, on a finding that the additional node is consistent with the network capacity targets in Section 39A.004, Utilities Code; and
(4)take any other action necessary to carry out this chapter that is not inconsistent with state or federal law.
(c)The Board does not have authority over wholesale market design, transmission planning, or grid reliability standards, which remain with the commission and ERCOT, except as expressly provided by this chapter or by Chapter 39A, Utilities Code.
Sec. 481A.018. SUNSET REVIEW.
The Board is subject to Chapter 325 (Texas Sunset Act) and shall be reviewed not later than September 1, 2039. Unless continued in existence as provided by Chapter 325, the Board is abolished on that date.
SUBCHAPTER C. DATA CENTER OPERATING LICENSE
Sec. 481A.031. LICENSE REQUIRED.
A qualifying data center facility may not commence or expand operations in this state unless the operator holds a current data center operating license issued by the Board.
Sec. 481A.032. APPLICATION.
(a) An applicant for an operating license shall file a written application with the Board on a form prescribed by the Board.
(b)The application must include, at a minimum:
(1)the identity and corporate structure of the operator and any parent or affiliate, including any direct or indirect foreign ownership interest disclosable under Subchapter E;
(2)the site location, including legal description and host-city and host-county identification;
(3)the projected continuous load and the projected annual megawatt-hour consumption;
(4)the initial resource-use disclosure required under Section 39B.005, Utilities Code, including the declaration regarding voluntary pursuit of certification of a Power Production Compact under Subchapter F;
(5)the air-emissions, water, and waste plans demonstrating compliance with Subchapter G;
(6)the community benefit agreement, if required under Subchapter H;
(7)the cybersecurity attestation required under Section 481A.051;
(8)the documentation of host-city and host-county consent under Section 481A.106; and
(9)any additional information the Board requires by rule.
Sec. 481A.033. APPLICATION FEE.
(a) An applicant shall pay an application fee, set by the Board by rule, in an amount reasonably necessary to cover the cost of administering this chapter.
(b)The application fee may not exceed $250,000 for an initial license and may not exceed $50,000 for a renewal.
(c)Application fees collected under this section are deposited to the credit of an account in the general revenue fund dedicated to the operations of the Board.
Sec. 481A.034. LICENSE STANDARDS.
The Board may issue a license only if the Board finds, on the record, that the applicant has demonstrated:
(1)compliance with the universal baseline operating standards under Subchapter G;
(2)compliance with the buffer zone and CEIBA requirements under Subchapter H, if applicable;
(3)compliance with the community benefit agreement floor under Subchapter H, if applicable;
(4)compliance with the mitigation floor under Subchapter J;
(5)compliance with the Texas information-technology sovereignty licensing standards under Subchapter D, to the extent applicable to the facility;
(6)compliance with the critical-infrastructure security and foreign-ownership review under Subchapter E;
(7)filing of the initial resource-use disclosure required under Section 39B.005, Utilities Code; and
(8)written host-city and host-county consent under Section 481A.106.
Sec. 481A.035. ISSUANCE, RENEWAL, CONDITIONS, SUSPENSION, REVOCATION.
(a) The Board may issue, renew, condition, suspend, or revoke a license under this chapter.
(b)The Board may condition a license on continued compliance with this chapter and with any rule adopted under this chapter.
(c)The Board shall provide written notice and an opportunity for a hearing, conducted in accordance with Chapter 2001, before the Board takes a final action to suspend or revoke a license, except as provided by Section 481A.056 for an emergency suspension on a finding of imminent threat to critical infrastructure or to state security.
Sec. 481A.036. LICENSE TERM AND RENEWAL SCHEDULE.
(a) A license issued under this chapter has an initial term of 10 years.
(b)A license is renewable on application filed not later than the 180th day before the expiration of the license.
(c)A renewal application is governed by Sections 481A.032 through 481A.034.
Sec. 481A.037. STATEWIDE PUBLIC REGISTRY.
(a) The Board shall maintain a statewide public registry of:
(1)each license issued under this chapter;
(2)each annual disclosure report filed under Section 39B.003, Utilities Code;
(3)each certified PPC issued under Subchapter F;
(4)each community benefit agreement entered into under Subchapter H; and
(5)each net water neutrality certification issued under Subchapter K to a holder of a certified PPC.
(b)The registry is a public record under Chapter 552, except for:
(1)trade-secret information protected under Section 552.110; and
(2)security-sensitive information protected under Subchapter E of this chapter, including specific cybersecurity control details, foreign-ownership-review work product, and any information the Board designates as protected by rule.
SUBCHAPTER D. TEXAS INFORMATION-TECHNOLOGY SOVEREIGNTY AND INTELLIGENCE-HUB COORDINATION
Sec. 481A.041. TEXAS-DOMICILED OPERATOR PREFERENCE.
(a) The Board, in considering applications for a license and applications for renewal of a license, shall give preference to a Texas-domiciled operator.
(b)Preference under this section does not waive any other requirement of this chapter.
Sec. 481A.042. TEXAS-ROUTED PEERING FOR STATE-GOVERNMENT WORKLOADS.
(a) An operator of a licensed facility that hosts a workload of a state agency, including a workload of an institution of higher education, shall route the network traffic generated by that workload through a peering point physically located in this state.
(b)The Board, in consultation with DIR, may adopt rules to implement this section.
Sec. 481A.043. TEXAS DIR COORDINATION.
(a) An operator of a licensed facility that contracts with a state agency for data processing services shall coordinate the provision of those services with the DIR Shared Technology Services program established under Subchapter L, Chapter 2054.
(b)Coordination under this section does not require an operator to use the DIR Shared Technology Services program but requires written documentation of the coordination.
(c)DIR shall, in consultation with the Board, publish a state information-technology sovereignty annual report that identifies the Texas-routed share of state-agency workloads, the Texas-domiciled share of state-agency information-technology contracts above an amount set by DIR by rule, and the Texas-resident share of the information-technology workforce supporting state-agency contracts.
Sec. 481A.044. TEXAS WORKFORCE PIPELINE.
(a) The Board, in consultation with THECB and TWC, shall establish a Texas-resident workforce pipeline for the construction and operation of licensed facilities.
(b)The pipeline must:
(1)identify the occupations and credentials needed for licensed facilities, including for information-security operations;
(2)coordinate with public junior colleges, public technical institutes, and public senior institutions of higher education to deliver the credentials; and
(3)publish an annual workforce demand report.
(c)THECB shall, on request of the Board, coordinate with the institutions of higher education in this state to align program offerings with the workforce demand report under Subsection (b).
(d)TWC shall, on request of the Board, coordinate with local workforce development boards to deliver workforce-pipeline services to host cities and host counties.
Sec. 481A.045. INTELLIGENCE-HUB DESIGNATIONS AND REPORTING TO LEGISLATURE.
(a) The Board may designate a licensed facility, or a cluster of licensed facilities sited within a single distributed generation node, as a Texas Intelligence-Hub Designated Facility if the facility or cluster demonstrates:
(1)Texas-domiciled operator status under Section 481A.041;
(2)Texas-routed peering under Section 481A.042;
(3)a documented Texas-resident workforce share under Section 481A.044 of not less than 60 percent of permanent operations employees; and
(4)participation in the Texas Workforce Pipeline as a credentialing-host site.
(b)Not later than December 1 of each even-numbered year, the Board shall submit to the legislature and to the governor a report on:
(1)the cumulative number of Texas Intelligence-Hub Designated Facilities;
(2)the Texas-routed share of state-agency workloads hosted in licensed facilities;
(3)the cumulative compute, storage, and energy footprint of licensed facilities;
(4)the status of foreign-ownership review under Subchapter E; and
(5)any recommendations of the Board for legislative action to advance the information-technology sovereignty interest of this state.
SUBCHAPTER E. CRITICAL-INFRASTRUCTURE SECURITY AND FOREIGN-OWNERSHIP REVIEW
Sec. 481A.051.
CYBERSECURITY STANDARDS; ANNUAL ATTESTATION. (a) The Board shall adopt by rule cybersecurity standards applicable to a licensed facility, based on the cybersecurity framework published by the National Institute of Standards and Technology and tailored to the operational technology and information technology environments of a data center facility and its co-located generation.
(b)Each operator of a licensed facility shall, annually and as a condition of license renewal, file with the Board a written attestation, signed by an officer of the operator designated as the operator's chief information security officer or equivalent, certifying:
(1)the operator's continued compliance with the standards adopted under Subsection (a);
(2)the date and scope of the most recent independent assessment of the operator's cybersecurity posture; and
(3)any material cybersecurity incident affecting the licensed facility during the preceding 12 months.
(c)An attestation under Subsection (b) is security-sensitive information protected under Section 481A.037(b)(2) and is not subject to disclosure under Chapter 552.
Sec. 481A.052. CRITICAL-INFRASTRUCTURE PROTECTION; TDEM COORDINATION.
(a) The Board shall, by memorandum of understanding, coordinate with TDEM to integrate licensed facilities into the critical-infrastructure-protection program of this state.
(b)Each operator of a licensed facility shall:
(1)designate a single point of contact for emergency management coordination;
(2)participate in any state-led tabletop exercise or critical-infrastructure-protection drill scheduled by TDEM with not less than 60 days' notice; and
(3)report to TDEM and to the Board, on the schedule established by TDEM by rule, any operational event affecting the continuity of service to a state-agency workload hosted at the facility.
Sec. 481A.053. PHYSICAL-SECURITY STANDARDS; DPS COORDINATION.
(a) The Board, in coordination with DPS, shall adopt by rule physical-security standards applicable to a licensed facility, including standards for perimeter control, access control, surveillance, insider-threat monitoring, and reporting of attempted intrusion or sabotage.
(b)DPS may, on request of the Board, conduct or assist in conducting a physical-security inspection of a licensed facility.
(c)Physical-security inspection findings are security-sensitive information protected under Section 481A.037(b)(2) and are not subject to disclosure under Chapter 552.
Sec. 481A.054. FOREIGN-OWNERSHIP REVIEW; ADVERSARY-NATION ENTITIES DEFINED.
(a) In this chapter, "adversary-nation entity" means a person:
(1)organized under the laws of, or having its principal place of business in, a country that is identified as a foreign adversary by the United States Secretary of Commerce under 15 C.F.R. Section 7.4, or by any successor federal designation;
(2)in which a government described by Subdivision (1), or an instrumentality, agency, or state-owned enterprise of that government, holds, directly or indirectly, an ownership interest of 25 percent or more, a control interest, or a board seat;
(3)acting as the agent of a person described by Subdivision (1) or (2); or
(4)identified by the Board, after consultation with DPS and notice to the affected person, as posing a national or state security risk equivalent to the risk associated with Subdivisions (1) through (3).
(b)A licensed facility, or an applicant for a license, in which an adversary-nation entity holds, directly or indirectly, an ownership interest of 5 percent or more, a control interest, or a board seat is subject to foreign-ownership review under Section 481A.055.
Sec. 481A.055. NOTICE AND APPROVAL PROCESS FOR FOREIGN OWNERSHIP OR CONTROL.
(a) An applicant for a license shall disclose, as part of the application under Section 481A.032, any foreign ownership interest, control interest, or board seat disclosable under Section 481A.054.
(b)An operator of a licensed facility shall provide written notice to the Board not later than the 30th day before the effective date of any transaction that would result in an adversary-nation entity acquiring, directly or indirectly:
(1)an ownership interest in the licensed facility of 5 percent or more;
(2)a control interest in the licensed facility; or
(3)a board seat at the licensed facility.
(c)The Board shall, not later than the 120th day after receipt of a notice under Subsection (b), or after receipt of an application disclosing a triggering interest under Subsection (a), issue a written determination that:
(1)the transaction or interest does not pose a risk to critical infrastructure or to state security and may proceed;
(2)the transaction or interest may proceed only on the imposition of license conditions, including divestiture, operational firewalls, or workload restrictions, that the Board finds necessary to mitigate the risk; or
(3)the transaction or interest is denied and the license may not issue, or, in the case of an existing license, the operator is required to unwind the triggering interest within a period set by the Board.
(d)The Board shall, in conducting a review under this section, consult with DPS, TDEM, DIR, and, as the Board determines appropriate, with federal authorities under Section 481A.057.
(e)The Board's determination under Subsection (c) is subject to judicial review under Subchapter L.
Sec. 481A.056. LICENSE CONDITIONS, SUSPENSION, AND REVOCATION FOR SECURITY VIOLATIONS.
(a) The Board may, after notice and an opportunity for hearing under Chapter 2001:
(1)impose additional license conditions on a licensed facility found to have violated this subchapter;
(2)suspend a license issued under this chapter for a documented and material violation of this subchapter; or
(3)revoke a license issued under this chapter for a material and repeated or continuing violation of this subchapter, or for failure to comply with a determination under Section 481A.055(c).
(b)Notwithstanding Subsection (a), on a finding by the Board, after consultation with DPS, that a violation of this subchapter presents an imminent threat to critical infrastructure or to state security, the Board may issue an emergency suspension of the license. An emergency suspension is effective immediately on service on the operator. A hearing on the emergency suspension shall be held not later than the 30th day after the suspension.
Sec. 481A.057. INFORMATION SHARING WITH FEDERAL AUTHORITIES; TEXAS SOVEREIGNTY RESERVATION.
(a) The Board may share information collected under this subchapter with the Committee on Foreign Investment in the United States, with the United States Department of Homeland Security, with the Federal Bureau of Investigation, and with other federal authorities the Board determines have a legitimate interest in the information.
(b)Nothing in this subchapter limits, displaces, or defers to a federal review of a transaction or interest involving a licensed facility. The review and determination process under Section 481A.055 is an independent exercise of the police power of this state and applies in addition to, and not in lieu of, any federal review.
(c)TEXAS SOVEREIGNTY RESERVATION. The legislature finds and declares that the security of the critical infrastructure of this state, including the data center facilities and co-located generation regulated under this chapter, is a core sovereign interest of this state. The authority exercised by the Board under this subchapter is reserved to this state under the Tenth Amendment to the United States Constitution and under Article I, Section 1 of the Texas Constitution. A federal determination that a transaction or interest does not pose a national-security risk under federal law does not bind this state or the Board in the exercise of the Board's authority under this subchapter.
SUBCHAPTER F. VOLUNTARY POWER PRODUCTION COMPACT CERTIFICATION
Sec. 481A.061. VOLUNTARY CERTIFICATION AVAILABLE.
(a) The operator of a qualifying data center facility may apply for certification of a Power Production Compact under this subchapter.
(b)Certification of a Power Production Compact is voluntary. Nothing in this chapter or in Chapter 39B, Utilities Code, requires an operator to seek or to hold a certified PPC as a condition of operating a qualifying data center facility in this state.
Sec. 481A.062. MODEL PPC TEMPLATES AND BEST PRACTICES.
(a) The Board shall publish, and shall update not less frequently than every two years, model Power Production Compact templates and best-practice guidance for use by operators and generators considering a Power Production Compact.
(b)The model templates must, at minimum, address:
(1)generation commitment, including off-take, co-located generation, or equity ownership;
(2)net-export floor of generation to the ERCOT grid;
(3)dispatch-certainty provisions;
(4)water-recirculation provisions consistent with Subchapter K;
(5)community benefit floor consistent with Subchapter H;
(6)Texas-first procurement preference;
(7)initial term, renewal, and assignment;
(8)quarterly reporting to the Board; and
(9)termination, withdrawal, and decertification.
Sec. 481A.063. CONVENING AUTHORITY; NEUTRAL MEDIATION.
(a) The Board may, on request of an operator or a generator considering a Power Production Compact, convene the parties for the purpose of negotiating a Power Production Compact and may provide neutral mediation services to facilitate the negotiation.
(b)The Board may charge a fee, set by rule and reasonably necessary to cover the cost of convening and mediation services, to a party requesting services under this section.
Sec. 481A.064. CERTIFICATION STANDARDS.
The Board may certify a Power Production Compact only if the Board finds that the compact:
(1)commits the facility, through one or any combination of co-located generation, contracted off-take of identified generation projects, or equity ownership in an identified generation project, to producing at least 100 percent of the facility's annual megawatt-hour consumption;
(2)commits that at least 10 percent of the facility's annual production under the compact is delivered to the ERCOT grid for use by customers other than the data center facility;
(3)commits that at least 50 percent of the facility's committed generation comes from a dispatchable source as defined by Section 34.0103, Utilities Code;
(4)satisfies the Net Water Neutrality standard under Subchapter K;
(5)satisfies the community benefit agreement floor under Subchapter H;
(6)includes a Texas-first procurement preference, applied during procurement of generation, equipment, fuel, and construction and operations workforce;
(7)has an initial term of not less than 10 years, coterminous with the facility's operating license under Subchapter C, and is subject to renewal on the same schedule as the operating license; and
(8)includes restrictions on assignment, including a requirement that any assignment be approved by the Board.
Sec. 481A.065. CERTIFICATION APPLICATION AND REVIEW.
(a) An operator seeking certification of a Power Production Compact shall file an application with the Board on the form prescribed by the Board.
(b)The Board shall, by rule, establish:
(1)the form and content of the application;
(2)the review and approval schedule, not to exceed 180 days from filing of a complete application;
(3)the schedule of fees, if any, for review; and
(4)the procedures for amendment of a certified PPC.
(c)The Board may certify, condition, or deny a Power Production Compact. The Board shall provide a written explanation for a denial.
(d)A certified PPC is a public record under Chapter 552, except for trade-secret information protected under Section 552.110 and for security-sensitive information protected under Subchapter E.
Sec. 481A.066. BENEFITS OF CERTIFICATION.
Certification of a Power Production Compact under this subchapter entitles the certified operator and the participating generators to:
(1)the enhanced tier of the Locational Value Credit under Section 39A.005(c), Utilities Code, in lieu of the baseline tier;
(2)consideration for participation in the Texas Energy Fund, on the same priority of access as a generator subject to Section 39A.006, Utilities Code;
(3)expedited consolidated state permitting under Subchapter I, including the federal-shot-clock alignment provided in that subchapter;
(4)brownfield-site priority under Section 481A.101; and
(5)a state matching contribution to the Community Infrastructure Fund under Section 481A.084, in an amount and on the terms established by the Board by rule consistent with this chapter.
Sec. 481A.067. WITHDRAWAL; DECERTIFICATION; RENEWAL.
(a) A certified operator may withdraw from a certified PPC on written notice to the Board not less than 180 days before the effective date of withdrawal.
(b)The Board may decertify a Power Production Compact after notice and an opportunity for hearing under Chapter 2001 on a finding of:
(1)a material and uncured violation of a certification standard under Section 481A.064; or
(2)a material misrepresentation in the application under Section 481A.065.
(c)Withdrawal or decertification under this section terminates the benefits of certification under Section 481A.066 prospectively and does not, by itself, affect the operator's license under Subchapter C.
(d)A certified PPC is renewable on the schedule of the operator's license under Subchapter C, subject to the application process under Section 481A.065.
Sec. 481A.068. TEXAS SOVEREIGNTY CLAUSE.
(a) Certification of a Power Production Compact under this subchapter is a benefit provided by this state to operators and generators that voluntarily commit to the standards of this subchapter.
(b)This subchapter does not preempt or limit the lawful operation in this state of a qualifying data center facility that holds a license under Subchapter C but does not hold, or has not sought, a certified PPC under this subchapter.
(c)The Board may not condition the issuance of a license under Subchapter C on the holder's participation in a certified PPC under this subchapter.
SUBCHAPTER G. UNIVERSAL BASELINE OPERATING STANDARDS
Sec. 481A.071. TEXAS FAMILY HEALTH PROTECTION EMISSIONS STANDARDS.
(a) Co-located generation associated with a facility licensed under this chapter must, at a minimum, demonstrate:
(1)use of selective catalytic reduction or an equivalent control technology to achieve nitrogen oxide emissions not greater than 2 parts per million, by volume, on a dry basis, corrected to 15 percent oxygen, measured at the stack;
(2)use of closed-loop air-cooled condensers on all thermal generation units, with no evaporative cooling water loss from power production permitted; and
(3)installation and operation of continuous public emissions monitoring equipment that publishes hourly emissions data, including nitrogen oxide, carbon monoxide, sulfur dioxide, and particulate matter, to a publicly accessible online registry maintained by TCEQ in coordination with the Board.
(b)An emissions standard adopted by TCEQ that is more stringent than a standard under this section controls to the extent of the inconsistency.
Sec. 481A.072. CONTINUOUS PUBLIC MONITORING.
(a) Each operator of a licensed facility shall install and maintain continuous emissions monitoring equipment that meets the specifications adopted by TCEQ under Chapter 382, Health and Safety Code, and any additional specifications adopted by the Board.
(b)The operator shall publish to the public registry maintained under Section 481A.037 hourly emissions data, with not more than a one-hour delay between measurement and publication.
(c)The Board shall, by rule, establish a standard specification for publication, including a machine-readable data format and an open application programming interface.
Sec. 481A.073. INSPECTIONS; ENFORCEMENT.
(a) The Board, or a contractor designated by the Board, may inspect a licensed facility at any reasonable time, with or without notice, to verify compliance with this subchapter.
(b)An operator shall permit access to records, monitoring equipment, and the premises necessary for an inspection under this section.
(c)Enforcement of this subchapter is governed by Subchapter L.
SUBCHAPTER H. COMMUNITY BENEFIT AGREEMENT FLOOR AND BUFFER ZONE REVIEW
Sec. 481A.081. AIR-BURDENED TEXAS COMMUNITY DEFINED.
In this subchapter, "Air-Burdened Texas Community" means a census tract identified by the Board, in coordination with TCEQ, in which:
(1)the annual average ambient concentration of PM2.5, ozone, or nitrogen dioxide, as measured by the TCEQ Continuous Emissions Monitoring network or by a state-certified equivalent monitor for the most recent three consecutive calendar years, exceeds 90 percent of the applicable national ambient air quality standard; or
(2)the cumulative permitted-emissions density, calculated by the Board by rule, falls within the top decile of all census tracts in this state.
Sec. 481A.082. REQUIRED PROVISIONS OF A COMMUNITY BENEFIT AGREEMENT; APPLICABILITY.
(a) An applicant that proposes to site a facility in or within 2 miles of an Air-Burdened Texas Community shall, before the Board may issue the license, enter into a community benefit agreement that contains at minimum the provisions of Sections 481A.083 through 481A.086.
(b)An applicant that holds, or that seeks concurrently with its license application, a certified PPC under Subchapter F satisfies the community benefit agreement requirement under this subchapter through the community benefit floor incorporated into the certified PPC under Section 481A.064(5).
Sec. 481A.083. WORKFORCE HIRE FLOORS.
(a) A community benefit agreement must provide that:
(1)at least 35 percent of the construction workforce hours on the licensed facility are performed by residents of the host county or an adjoining county; and
(2)at least 20 percent of the permanent operations workforce of the licensed facility consists of residents of the host county or an adjoining county.
(b)An operator shall report compliance with Subsection (a) to the Board not later than the 30th day after the end of each calendar quarter.
Sec. 481A.084. COMMUNITY INFRASTRUCTURE FUND.
(a) A community benefit agreement must provide that the operator contributes annually to a Community Infrastructure Fund an amount equal to not less than 1.5 percent of the gross revenue of the licensed facility.
(b)The Community Infrastructure Fund is administered by the host city and the host county jointly, or as the host city and host county agree.
(c)Allowable uses of the Community Infrastructure Fund are limited to:
(1)public-school facility improvements;
(2)local transportation, water, wastewater, and stormwater infrastructure;
(3)emergency services and first-responder infrastructure; and
(4)parks, libraries, and similar community infrastructure.
(d)In the case of a licensed facility that holds a certified PPC under Subchapter F, the state shall match the operator's annual contribution to the Community Infrastructure Fund on the terms and in the amount established by the Board by rule under Section 481A.066(5).
Sec. 481A.085. RESIDENTIAL UTILITY-BILL CREDIT.
(a) A community benefit agreement must provide a monthly utility-bill credit of at least $15 to each residential electric customer whose primary residence is located within a 2-mile radius of the nearest property line of the licensed facility.
(b)The credit applies for not less than 10 years from the commercial operation date of the licensed facility.
(c)The credit is funded by the operator and is delivered through the retail electric provider serving the customer, on a schedule approved by the commission.
Sec. 481A.086. INDEPENDENT COMMUNITY HEALTH STUDY.
(a) A community benefit agreement must provide that the operator funds an independent five-year community health study of the host city and any portion of the host county within a 5-mile radius of the licensed facility.
(b)The study is conducted by an academic or research institution selected by the Board from a panel approved by THECB and the Department of State Health Services.
(c)The methodology, data, and results of the study are public records under Chapter 552.
Sec. 481A.087. BUFFER ZONE DEFINED.
In this subchapter, "buffer zone" means the area within a 1.5-mile radius measured from the nearest property line of a facility licensed or proposed to be licensed under this chapter to the nearest property line of:
(1)a residence;
(2)a school, as defined by Section 25.001, Education Code;
(3)a hospital or other health-care facility, as defined by Chapter 254, Health and Safety Code; or
(4)a licensed child-care facility, as defined by Chapter 42, Human Resources Code.
Sec. 481A.088. CUMULATIVE EMISSIONS IMPACT AND BUFFER ASSESSMENT REQUIRED.
(a) An applicant for a license that proposes to site a facility within a buffer zone shall, before the Board may issue the license, submit to the Board a cumulative emissions impact and buffer assessment.
(b)The CEIBA must include, at a minimum:
(1)an inventory of existing permitted emissions sources within a 3-mile radius of the proposed site, prepared in coordination with TCEQ;
(2)modeled cumulative ambient concentration of nitrogen oxide, carbon monoxide, sulfur dioxide, particulate matter (PM2.5 and PM10), and any hazardous air pollutant for which the proposed facility is a documented source;
(3)a population-density analysis within the buffer zone;
(4)a sensitive-receptor analysis identifying each school, hospital, health-care facility, and child-care facility within the buffer zone; and
(5)a written mitigation plan addressing each cumulative concentration that, in combination with the proposed facility, would exceed a national ambient air quality standard under 42 U.S.C. Section 7409 or a state standard adopted under Chapter 382, Health and Safety Code.
Sec. 481A.089. PUBLIC COMMENT; HEARINGS; FINDINGS.
(a) The Board shall, on receipt of a CEIBA under Section 481A.088, provide notice to:
(1)each property owner within the buffer zone;
(2)the host city and host county;
(3)TCEQ; and
(4)the general public, by publication in a newspaper of general circulation in the host county and on the public registry maintained under Section 481A.037.
(b)The Board shall conduct at least one public hearing in the host city not earlier than the 30th day after notice under Subsection (a). The hearing is conducted in accordance with Chapter 2001.
(c)The Board shall make written findings on each element of the CEIBA and shall publish the findings to the public registry not later than the 60th day after the public hearing.
(d)The Board may not issue a license if the Board finds that the CEIBA demonstrates a cumulative concentration that would exceed a national ambient air quality standard or a state air standard and that the proposed mitigation does not bring the cumulative concentration within the applicable standard.
SUBCHAPTER I. CONSOLIDATED STATE PERMITTING ALIGNED WITH THE FEDERAL ADVANCE ACT
Sec. 481A.091. CONSOLIDATED STATE PERMIT PACKAGE.
(a) The Board, in coordination with TCEQ, the commission, GLO, and any other state agency the Board determines necessary, shall package the state-side approvals required for an ADVANCE-Act-qualifying site into a single consolidated state permit package.
(b)The consolidated package includes, at minimum:
(1)water rights and use permits administered by TCEQ under Chapter 11, Water Code;
(2)air permits administered by TCEQ under Chapter 382, Health and Safety Code;
(3)site-suitability approvals administered by GLO to the extent state land is implicated;
(4)transmission interconnection coordination administered by the commission and ERCOT; and
(5)any other state-side approval the Board determines necessary to a qualifying site.
Sec. 481A.092. ALIGNMENT WITH FEDERAL TWENTY-FIVE-MONTH SHOT CLOCK.
(a) The Board shall align the consolidated state permit package with the federal Nuclear Regulatory Commission review timeline established under the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024 (Pub. L. No. 118-67), including the 25-month combined-license shot clock for small modular reactor licensing at qualifying sites.
(b)The Board shall publish, by rule, a state-side schedule that, on a complete application, results in a final state-side action not later than the date federal action is expected under the federal shot clock.
Sec. 481A.093. QUALIFYING SITES.
In this subchapter, an "ADVANCE-Act-qualifying site" is a site that meets the criteria of the federal Act described in Section 481A.092 and includes:
(1)an existing nuclear site, including the Comanche Peak Nuclear Power Plant in Somervell County and the South Texas Project in Matagorda County; and
(2)a qualified brownfield fossil site, including a former or active coal or lignite generation site, that satisfies the federal qualification standard.
Sec. 481A.094. COORDINATION WITH TCEQ, GLO, PUCT, AND OTHER AGENCIES.
(a) TCEQ, GLO, the commission, and any other state agency the Board identifies shall, on request of the Board, designate a single point of contact for purposes of the consolidated state permit package.
(b)An agency described by Subsection (a) shall provide written acknowledgement of receipt of a complete application not later than the 30th day after receipt and shall provide an expected date of final action consistent with the schedule adopted under Section 481A.092.
(c)An agency action taken under the consolidated state permit package retains the substantive standards of the agency's existing statutes and rules. This subchapter does not waive a substantive standard.
SUBCHAPTER J. STATUTORY MITIGATION FLOOR
Sec. 481A.101.
PREFERENCE FOR EXISTING-DISTURBED SITES. (a) The Board shall, in considering an application for a license, give preference to a site that is an existing-disturbed site.
(b)An applicant that proposes to site a facility on a parcel that is not an existing-disturbed site shall, before the Board may issue the license, demonstrate that:
(1)an existing-disturbed site is not reasonably available within the same node; or
(2)the proposed site provides locational service value that is materially greater than the locational service value available at any reasonably available existing-disturbed site within the same node.
(c)A certified PPC under Subchapter F is entitled to brownfield-site priority under this section.
Sec. 481A.106.
HOST-CITY AND HOST-COUNTY CONSENT REQUIRED. (a) The Board may not issue a license unless the host city and host county have each adopted, by resolution of the governing body after notice and a public hearing, written consent to the licensure of the facility at the proposed site.
(b)The consent resolution must reference:
(1)the proposed site;
(2)the projected continuous load and the projected annual megawatt-hour consumption of the facility;
(3)the community benefit agreement, if required; and
(4)the net water neutrality certification, if the facility holds or seeks a certified PPC.
(c)A consent resolution may be withdrawn by the host city or host county only on a finding, after notice and a public hearing, of a material change in the facts on which the consent was originally based.
SUBCHAPTER K. NET WATER NEUTRALITY (CERTIFIED PPC ONLY)
Sec. 481A.111. APPLICABILITY.
(a) This subchapter applies to a facility that holds, or that seeks concurrently with its license application, a certified PPC under Subchapter F.
(b)This subchapter does not apply to a qualifying data center facility that does not hold a certified PPC. The universal baseline cooling and water disclosure standards applicable to all qualifying data center facilities are governed by Section 39B.004, Utilities Code, and by Subchapter G of this chapter.
Sec. 481A.112. NET WATER NEUTRALITY CERTIFICATION REQUIRED OF CERTIFIED PPC HOLDERS.
(a) The Board may certify a Power Production Compact under Subchapter F only if the operator obtains and maintains a net water neutrality certification from the Board under this subchapter.
(b)The certification must demonstrate compliance with Sections 481A.113, 481A.114, and 481A.115.
(c)The certification is reviewed annually by the Board on the schedule provided in Subchapter C and may be revoked for documented noncompliance.
Sec. 481A.113. CLOSED-LOOP COOLING ON THE POWER SIDE REQUIRED.
All co-located generation associated with a certified PPC must use closed-loop air-cooled condensers or an equivalent dry-cooling technology approved by the Board, in consultation with TCEQ. Evaporative cooling water loss from power production is prohibited.
Sec. 481A.114. RECLAIMED-WATER MAKEUP; ON-SITE CAPTURE; GRAYWATER REUSE.
(a) Makeup water for any wet process on a facility that holds a certified PPC must be sourced from reclaimed water that meets the standard for industrial reuse adopted by TCEQ in 30 Texas Administrative Code Chapter 210, or from any equivalent standard the Board adopts by rule.
(b)The facility must capture, on the campus, rainwater for landscape and process pre-cooling uses to the maximum extent practicable.
(c)The facility must reuse graywater for landscape and process pre-cooling uses to the maximum extent practicable.
Sec. 481A.115. ANNUAL NET-WATER-BALANCE REPORT.
(a) Not later than March 1 of each year, the operator of a facility that holds a certified PPC shall file with the Board an annual net-water-balance report for the preceding calendar year that includes:
(1)total water withdrawn, by source;
(2)total water consumed;
(3)total water discharged, by quality category;
(4)any net water consumption and the verified offsets, including aquifer recharge, municipal reclaimed-water expansion funding, or watershed restoration, that bring the facility within net water neutrality; and
(5)a certification by an independent third-party engineer, retained by the Board, that the operator is in compliance with this subchapter.
(b)The Board shall publish the report to the public registry under Section 481A.037.
SUBCHAPTER L. ENFORCEMENT
Sec. 481A.121. ADMINISTRATIVE PENALTIES.
(a) The Board may impose an administrative penalty against a person who:
(1)operates a qualifying data center facility without a current license issued under this chapter;
(2)violates a license condition imposed under Section 481A.035;
(3)fails to comply with the universal baseline operating standards under Subchapter G;
(4)fails to comply with the critical-infrastructure security and foreign-ownership review requirements under Subchapter E;
(5)fails to maintain a community benefit agreement in compliance with Subchapter H;
(6)fails to maintain a net water neutrality certification in compliance with Subchapter K, in the case of a facility that holds a certified PPC; or
(7)knowingly files a false or materially misleading statement, report, certification, or attestation under this chapter.
(b)The administrative penalty may not exceed $25,000 per day per violation. Each day a violation continues is a separate violation.
(c)The Board shall, by rule, adopt a penalty matrix that considers the factors listed in Section 39B.007(c), Utilities Code.
(d)Administrative penalties collected under this section are deposited to the credit of the general revenue fund.
Sec. 481A.122. CIVIL PENALTIES.
(a) The attorney general may, on request of the Board, bring a civil action in a district court in Travis County, or in the host county of the licensed facility, to:
(1)enjoin a violation of this chapter;
(2)recover a civil penalty for a violation of this chapter; or
(3)recover the reasonable costs of investigation and prosecution.
(b)A civil penalty under this section may not exceed $100,000 per day per violation, subject to the same day-per-violation rule as administrative penalties under Section 481A.121(b).
Sec. 481A.123. LICENSE REVOCATION.
(a) After notice and an opportunity for a hearing under Chapter 2001, the Board may revoke a license issued under this chapter for:
(1)a material violation of this chapter or of a rule adopted under this chapter;
(2)a repeated or continuing violation under Section 481A.121 or 39B.007, Utilities Code;
(3)a documented withdrawal of host-city or host-county consent under Section 481A.106(c);
(4)a material and repeated or continuing violation of Subchapter E, including a failure to comply with a foreign-ownership-review determination under Section 481A.055(c); or
(5)conviction of the licensee, or of a principal officer of the licensee, of a felony involving fraud, theft, bribery, environmental harm, or an offense involving threats to national or state security.
(b)A revocation under this section is effective on the date specified in the Board's written order.
Sec. 481A.124. JUDICIAL REVIEW.
(a) A final order of the Board is subject to judicial review under Chapter 2001.
(b)Venue for judicial review is in a district court in Travis County or, at the election of the licensee, in the host county of the licensed facility.
SUBCHAPTER M. SUNSET REVIEW
Sec. 481A.131. SUNSET REVIEW.
The Board, the licensing program established under this chapter, and the voluntary Power Production Compact certification program established under Subchapter F are subject to Chapter 325 (Texas Sunset Act) and shall be reviewed not later than September 1, 2039. Unless continued in existence as provided by Chapter 325, the Board and those programs are abolished on that date.
SECTION 5.
Section 39.107, Utilities Code, is amended by adding Subsection (o) to read as follows:
<u>(o) A large load customer that is a qualifying data center facility under Chapter 39B is subject to the operating license requirements of Chapter 481A, Government Code, and may not commence or expand operations under this section without a current operating license issued by the Texas Energy and Intelligence Infrastructure Security Board.</u>
SECTION 6.
Section 2054.0035, Government Code, is amended by adding Subsection (e) to read as follows:
<u>(e) The department shall coordinate with the Texas Energy and Intelligence Infrastructure Security Board established under Chapter 481A in the implementation of Sections 481A.043 and 481A.045. The department may adopt rules necessary to implement that coordination.</u>
SECTION 7.
Subchapter A, Chapter 35, Water Code, is amended by adding Section 35.0095 to read as follows:
<u>Sec. 35.0095. COORDINATION WITH TEXAS ENERGY AND INTELLIGENCE INFRASTRUCTURE SECURITY BOARD. The commission shall coordinate with the Texas Energy and Intelligence Infrastructure Security Board established under Chapter 481A, Government Code, in the implementation of the Net Water Neutrality certification required under Subchapter K, Chapter 481A, Government Code, of a holder of a certified Power Production Compact.</u>
SECTION 8.
Subchapter A, Chapter 382, Health and Safety Code, is amended by adding Section 382.0145 to read as follows:
<u>Sec. 382.0145. COORDINATION WITH TEXAS ENERGY AND INTELLIGENCE INFRASTRUCTURE SECURITY BOARD. The commission shall coordinate with the Texas Energy and Intelligence Infrastructure Security Board established under Chapter 481A, Government Code, in the implementation of the Texas Family Health Protection emissions standards required under Subchapter G, Chapter 481A, Government Code, including the continuous public emissions monitoring requirement of Section 481A.072 of that code.</u>
SECTION 9. SAVING AND TRANSITION.
(a) Not later than March 1, 2028, the governor shall make the initial appointments to the Board, with the senate's advice and consent, on the staggered-term schedule provided in Section 481A.013, Government Code, as added by this Act.
(b)The Board shall, not later than the first anniversary of the effective date of this Act, adopt the rules necessary to implement this chapter, including the rules required by Subchapter E for critical-infrastructure security and foreign-ownership review.
(c)An existing data center facility, as defined by Section 39B.001, Utilities Code, may continue to operate without an operating license under this chapter until the second anniversary of the effective date of this Act, by which date the operator must hold a current license.
(d)The Board shall issue the first call for applications under Subchapter C, Chapter 481A, Government Code, not earlier than the first anniversary of the effective date of this Act and not later than the second anniversary of the effective date of this Act.
(e)Participation in a certified Power Production Compact under Subchapter F is voluntary and is not required for the issuance or maintenance of a license under Subchapter C.
(f)The former law is continued in effect for any matter pending before a state agency on the effective date of this Act to the extent the matter is not transferred to the Board by this Act. A matter described by this subsection that is transferred to the Board by rule is governed, from the date of the transfer, by this Act.
SECTION 10. EFFECTIVE DATE.
This Act takes effect September 1, 2027.
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Drafted by Will Campbell for Texas, HD-109 — Pre-filing Draft v1.0
90th Texas Legislature, Regular Session