Texas House Bill HB3555

Texas 2009 - 81st Regular

• Out of House Committee: 4/16/09

Caption

Relating to the status of liquefied natural gas marine terminals.

Impact

By establishing clearer definitions and certifications, HB3555 aims to streamline operations for LNG marine terminal operators. The amendments are expected to promote efficiencies in the LNG supply chain by reducing regulatory burdens for facilities that are strictly involved in the transportation and storage of natural gas and LNG to and from marine terminals. This legislative initiative could potentially lead to increased investment in LNG infrastructure and enhanced state capacity for handling natural gas resources.

Summary

House Bill 3555 seeks to clarify the status of liquefied natural gas (LNG) marine terminals in relation to Texas utility regulations. The bill amends Section 121.007(a) of the Utilities Code to stipulate that entities operating LNG pipelines and storage facilities may not be classified as gas utilities under certain conditions. Specifically, if these entities certify to the Texas Railroad Commission that they are solely using their pipelines and storage for LNG delivery related to marine terminals, they can avoid regulatory classifications that would otherwise apply to gas utilities.

Contention

The bill's specificity in delineating the status of the LNG operations could catalyze debates about environmental impacts and local concerns. Proponents argue that the bill fosters economic growth and energy independence, while opponents may voice concerns regarding the implications for environmental oversight and local government authority over energy projects. There may also be discussions around how these regulatory changes could impact other aspects of state law related to public utilities and environmental protections.