1 | 1 | | H.B. No. 3346 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | AN ACT |
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5 | 5 | | relating to gas utilities and gas storage facilities. |
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6 | 6 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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7 | 7 | | SECTION 1. Section 121.001(a), Utilities Code, is amended |
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8 | 8 | | to read as follows: |
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9 | 9 | | (a) In this chapter, "gas utility" means a person who owns, |
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10 | 10 | | manages, operates, leases, or controls in this state property or |
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11 | 11 | | equipment or a pipeline, plant, facility, franchise, license, or |
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12 | 12 | | permit for a business that: |
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13 | 13 | | (1) transports, conveys, distributes, or delivers |
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14 | 14 | | natural gas: |
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15 | 15 | | (A) for public use or service for compensation; |
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16 | 16 | | (B) for sale to municipalities or persons engaged |
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17 | 17 | | in distributing or selling natural gas to the public, in a situation |
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18 | 18 | | described by Subdivision (3); |
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19 | 19 | | (C) for sale or delivery to a person operating |
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20 | 20 | | under a franchise or contract with a political subdivision of this |
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21 | 21 | | state; or |
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22 | 22 | | (D) for sale or delivery to the public for |
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23 | 23 | | domestic or other use; |
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24 | 24 | | (2) owns, operates, or manages a pipeline: |
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25 | 25 | | (A) that is for transporting or carrying natural |
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26 | 26 | | gas, whether for public hire or not; and |
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27 | 27 | | (B) for which the right-of-way has been or is |
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28 | 28 | | hereafter acquired by exercising the right of eminent domain, or by |
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29 | 29 | | lawfully representing to a property owner that the person has the |
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30 | 30 | | right to acquire right-of-way by the use of eminent domain; or |
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31 | 31 | | (3) produces or purchases natural gas and transports |
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32 | 32 | | or causes the transportation of natural gas by a pipeline to or near |
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33 | 33 | | the limits of a municipality in which the gas is received and |
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34 | 34 | | distributed or sold to the public by another gas utility or by the |
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35 | 35 | | municipality in a situation in which the business is the only or |
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36 | 36 | | practically the only agency of supply of natural gas to the gas |
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37 | 37 | | utility or municipality. |
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38 | 38 | | SECTION 2. Section 181.021(2), Utilities Code, is amended |
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39 | 39 | | to read as follows: |
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40 | 40 | | (2) "Gas utility" means a person, firm, or corporation |
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41 | 41 | | subject to the jurisdiction of the Railroad Commission of Texas, or |
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42 | 42 | | a municipality, engaged in the business of transporting or |
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43 | 43 | | distributing gas [for public consumption]. |
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44 | 44 | | SECTION 3. Section 101.003(7), Utilities Code, is amended |
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45 | 45 | | to read as follows: |
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46 | 46 | | (7) "Gas utility" includes a person or river authority |
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47 | 47 | | that owns or operates for compensation in this state equipment or |
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48 | 48 | | facilities to transmit or distribute combustible hydrocarbon |
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49 | 49 | | natural gas or synthetic natural gas for sale or resale in a manner |
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50 | 50 | | not subject to the jurisdiction of the Federal Energy Regulatory |
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51 | 51 | | Commission under the Natural Gas Act (15 U.S.C. Section 717 et |
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52 | 52 | | seq.). The term includes a lessee, trustee, or receiver of a gas |
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53 | 53 | | utility. The term does not include: |
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54 | 54 | | (A) a municipal corporation; |
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55 | 55 | | (B) a person or river authority to the extent the |
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56 | 56 | | person or river authority: |
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57 | 57 | | (i) produces, gathers, transports, or sells |
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58 | 58 | | natural gas or synthetic natural gas under Section 121.004 or |
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59 | 59 | | 121.005; |
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60 | 60 | | (ii) distributes or sells liquefied |
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61 | 61 | | petroleum gas; or |
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62 | 62 | | (iii) transports, delivers, or sells |
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63 | 63 | | natural gas for fuel for irrigation wells or any other direct |
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64 | 64 | | agricultural use; |
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65 | 65 | | (C) a person to the extent the person: |
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66 | 66 | | (i) sells natural gas for use as vehicle |
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67 | 67 | | fuel; |
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68 | 68 | | (ii) sells natural gas to a person who later |
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69 | 69 | | sells the natural gas for use as vehicle fuel; or |
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70 | 70 | | (iii) owns or operates equipment or |
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71 | 71 | | facilities to sell or transport natural gas for ultimate use as |
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72 | 72 | | vehicle fuel; |
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73 | 73 | | (D) a person not otherwise a gas utility who |
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74 | 74 | | furnishes gas or gas service only to itself, its employees, or its |
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75 | 75 | | tenants as an incident of employment or tenancy, if the gas or gas |
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76 | 76 | | service is not resold to or used by others; [or] |
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77 | 77 | | (E) a person excluded from being considered a gas |
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78 | 78 | | utility under Section 121.007; or |
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79 | 79 | | (F) an electric cooperative, as that term is |
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80 | 80 | | defined by Section 11.003, or its subsidiary, that is excluded from |
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81 | 81 | | regulation as a gas utility by Section 121.008. |
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82 | 82 | | SECTION 4. Subchapter A, Chapter 121, Utilities Code, is |
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83 | 83 | | amended by adding Section 121.008 to read as follows: |
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84 | 84 | | Sec. 121.008. CERTAIN STORAGE FACILITIES OWNED BY ELECTRIC |
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85 | 85 | | COOPERATIVES EXCLUDED. An electric cooperative, as that term is |
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86 | 86 | | defined by Section 11.003, or its subsidiary, that sells |
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87 | 87 | | electricity at wholesale is not a gas utility or subject to |
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88 | 88 | | regulation as a gas utility solely because it provides gas storage |
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89 | 89 | | services for hire if the gas storage facility is predominantly |
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90 | 90 | | operated to support the integration of renewable resources. Such a |
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91 | 91 | | gas storage facility shall not have a working gas capacity of |
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92 | 92 | | greater than five billion cubic feet. |
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93 | 93 | | SECTION 5. Section 111.001(2), Natural Resources Code, is |
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94 | 94 | | amended to read as follows: |
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95 | 95 | | (2) "Public utility" means a person, association of |
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96 | 96 | | persons, or corporation that owns, operates, or manages crude |
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97 | 97 | | petroleum storage tanks or storage facilities for the public for |
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98 | 98 | | hire, either in connection with a pipeline, pipelines, or |
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99 | 99 | | otherwise. The term does not include an electric cooperative, as |
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100 | 100 | | that term is defined by Section 11.003, Utilities Code, or its |
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101 | 101 | | subsidiary, that sells electricity at wholesale and that owns or |
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102 | 102 | | operates an underground storage facility and provides gas storage |
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103 | 103 | | services to the public for hire if the gas storage facility is |
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104 | 104 | | predominantly operated to support the integration of renewable |
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105 | 105 | | resources. Such a gas storage facility shall not have a working gas |
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106 | 106 | | capacity of greater than five billion cubic feet. |
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107 | 107 | | SECTION 6. Section 111.003, Natural Resources Code, is |
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108 | 108 | | amended by adding Subsection (c) to read as follows: |
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109 | 109 | | (c) The provisions of this chapter, and any common law |
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110 | 110 | | requirements or limitations applicable to a common carrier, do not |
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111 | 111 | | apply to an underground storage facility owned or operated by an |
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112 | 112 | | electric cooperative, as that term is defined by Section 11.003, |
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113 | 113 | | Utilities Code, or its subsidiary, that sells electricity at |
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114 | 114 | | wholesale and offers or provides gas storage services to the public |
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115 | 115 | | for hire if the gas storage facility is predominately operated to |
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116 | 116 | | support the integration of renewable resources. Such a gas storage |
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117 | 117 | | facility shall not have a working gas capacity of greater than five |
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118 | 118 | | billion cubic feet. |
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119 | 119 | | SECTION 7. This Act takes effect immediately if it receives |
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120 | 120 | | a vote of two-thirds of all the members elected to each house, as |
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121 | 121 | | provided by Section 39, Article III, Texas Constitution. If this |
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122 | 122 | | Act does not receive the vote necessary for immediate effect, this |
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123 | 123 | | Act takes effect September 1, 2009. |
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124 | 124 | | ______________________________ ______________________________ |
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125 | 125 | | President of the Senate Speaker of the House |
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126 | 126 | | I certify that H.B. No. 3346 was passed by the House on April |
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127 | 127 | | 30, 2009, by the following vote: Yeas 144, Nays 0, 1 present, not |
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128 | 128 | | voting; and that the House concurred in Senate amendments to H.B. |
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129 | 129 | | No. 3346 on May 25, 2009, by the following vote: Yeas 139, Nays 0, |
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130 | 130 | | 3 present, not voting. |
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131 | 131 | | ______________________________ |
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132 | 132 | | Chief Clerk of the House |
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133 | 133 | | I certify that H.B. No. 3346 was passed by the Senate, with |
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134 | 134 | | amendments, on May 21, 2009, by the following vote: Yeas 31, Nays |
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135 | 135 | | 0. |
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136 | 136 | | ______________________________ |
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137 | 137 | | Secretary of the Senate |
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138 | 138 | | APPROVED: __________________ |
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139 | 139 | | Date |
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140 | 140 | | __________________ |
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141 | 141 | | Governor |
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