Texas Senate Bill SB2143

Texas 2009 - 81st Regular

Caption

Relating to the authority of the Railroad Commission of Texas to determine whether certain transporters of natural or synthetic gas are gas utilities.

Impact

The implications of SB2143 are significant for the regulation of gas utilities in Texas. By allowing the Railroad Commission to have a more active role in reviewing exemptions, it aims to increase oversight and potentially enhance safety and efficiency within the gas transport sector. This change could affect how transporters operate, enforce compliance, and engage in regulatory processes. The bill's efficacy hinges on the commission's ability to develop clear rules and guidelines for administering these responsibilities.

Summary

SB2143 seeks to enhance the authority of the Railroad Commission of Texas in determining whether certain transporters of natural or synthetic gas qualify as gas utilities. This bill proposes amendments to the Utilities Code, particularly introducing new subsections that will enable the commission to review certifications made by transporters and assess their eligibility for exemptions. Furthermore, the bill provides the commission with the power to revoke such exemptions after conducting a hearing, ensuring compliance with specific regulatory requirements.

Contention

While the bill is primarily framed as a measure to improve regulatory clarity and oversight, it may lead to contention among various stakeholders. Transport companies might perceive the expanded powers of the Railroad Commission as an increase in bureaucratic oversight, complicating their operations. There could be concerns about the balance between necessary regulation and overreach that could stifle the industry. The requirement for hearings before revocation of exemptions may also lead to disputes over interpretation and application of regulatory standards.