Texas House Bill HB4786

Texas 2023 - 88th Regular

• Filed: 3/10/23

Caption

Relating to the imposition of administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas; increasing criminal penalties.

Impact

The implementation of HB4786 is projected to create a stronger regulatory framework, which may deter future violations by imposing higher daily penalties for noncompliance. As a result, entities regulated by the Railroad Commission could face more substantial costs associated with noncompliance. The changes could also lead to a heightened focus on compliance with administrative rules, licenses, and permits enforced by the commission. Given the focus on pipeline safety, it indicates a legislative intent to prioritize public safety and environmental protection in the discharge of energy-related activities.

Summary

House Bill 4786 aims to amend existing laws related to the imposition of administrative, civil, and criminal penalties for violations of statutes under the jurisdiction of the Railroad Commission of Texas. This bill proposes increasing the penalties for various violations, particularly enhancing the amount for those related to pipeline safety. The adjustments in penalty structures are intended to ensure strict adherence to regulations and enhance the enforcement capabilities of the Railroad Commission, which oversees significant aspects of Texas's energy sector.

Sentiment

The sentiment around HB4786 appears to be cautiously optimistic among supporters who recognize the necessity of stricter penalties to enhance compliance. Stakeholders who support the bill argue that it will lead to better enforcement and accountability within the industry. However, there may be some concerns among smaller operators or stakeholders who could be adversely affected by increased financial penalties, potentially limiting their operations or increasing their costs.

Contention

Notable points of contention around HB4786 include discussions regarding the equity in penalties and the potential impact on smaller companies or individual operators. Critics may voice concerns about the ability of the Railroad Commission to fairly assess penalties and whether the increased amounts are justified based on the severity of all potential violations. Ultimately, the balance between ensuring compliance and not overburdening businesses in the energy sector remains a vital discussion as the bill advances through the legislative process.

Texas Constitutional Statutes Affected

Natural Resources Code

• Chapter 81. Railroad Commission Of Texas
  • Section: 0531
  • Section: 058

• Chapter 91. Provisions Generally Applicable
  • Section: New Section

Water Code

• Chapter 27. Injection Wells
  • Section: 101
  • Section: 1011
  • Section: 105