Texas Senate Bill SB1826

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/14/09
• Voted on by Senate: 4/23/09
• Out of House Committee: 5/6/09
• Voted on by House: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 5/27/09
• Passed: 6/19/09

Caption

Relating to the status of liquefied natural gas marine terminals.

Impact

The implementation of SB1826 would have a significant impact on state laws governing natural gas utilities. The amendment would exempt certain operations from being classified as gas utilities, effectively reducing the regulatory burden on companies involved in LNG. This change aims to facilitate the growth of LNG marine terminals by allowing operators more operational flexibility. As a result, it is expected that this bill could encourage investment in LNG infrastructure in Texas, contributing to the state’s economy and enhancing its position in the energy sector.

Summary

SB1826, titled 'Relating to the status of liquefied natural gas marine terminals,' aims to modify the regulatory framework surrounding liquefied natural gas (LNG) operations in Texas. The bill provides that a person operating a natural gas or liquefied natural gas pipeline, or an underground storage facility, is not characterized as a gas utility if they certify to the railroad commission that they use the infrastructure solely for specific purposes related to liquefied natural gas marine terminals. This legislative adjustment is intended to streamline operations within the LNG sector and clarify the regulatory status of entities involved in the delivery and storage of LNG in Texas.

Contention

Although there are potential benefits associated with SB1826, it has also drawn some concern among stakeholders. Opponents may argue that reducing the regulatory oversight of LNG operations could pose risks in terms of safety and environmental concerns. Critics might highlight that such a legislative change could lead to an increase in the operation of facilities without adequate checks in place, thereby raising questions about the long-term implications for public safety and environmental protection. The balance between encouraging economic development and ensuring regulatory oversight is likely to remain a point of contention as discussions around this bill continue.