Texas House Bill HB4382

Texas 2019 - 86th Regular

Caption

Relating to the issuance by the Railroad Commission of Texas of a certificate of convenience and necessity for certain common carrier pipelines.

Impact

By redefining the certification process, HB4382 seeks to streamline the approval of pipeline projects by reducing bureaucratic hurdles while maintaining essential public safety and environmental standards. The amendments also establish that certificates will only be granted to entities whose rates and charges are regulated under state or federal guidelines. This provision aims to protect consumer interests by ensuring that there is oversight on pricing, preventing discrimination or favoritism toward certain parties.

Summary

House Bill 4382 addresses the regulation of common carrier pipelines in Texas, specifically amending the process through which the Railroad Commission of Texas issues certificates of convenience and necessity. The bill entails that any entity classified as a common carrier must secure this certificate if it wishes to construct and operate a pipeline, ensuring that such projects justify public need and utility. The existing facilities’ capabilities will be assessed to affirm that the new pipeline offers enhanced economic efficiency and service to the public.

Contention

The legislative discussions surrounding HB4382 highlight a division between supporters advocating for increased pipeline infrastructure in Texas, arguing it's vital for economic growth, and detractors concerned about potential environmental impacts and local land rights. A point of contention is the provision related to eminent domain, which allows pipeline companies certain rights to acquire land, raising concerns among landowners about losing control over their properties. The bill's modifications reflect a balancing act between promoting infrastructure development and safeguarding local interests.