1 | 1 | | By: Seliger, Duncan S.B. No. 312 |
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2 | 2 | | (Keffer) |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the exemption of certain electric cooperatives from |
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8 | 8 | | certain regulations. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subdivision (7), Section 101.003, Utilities |
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11 | 11 | | Code, is amended to read as follows: |
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12 | 12 | | (7) "Gas utility" includes a person or river authority |
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13 | 13 | | that owns or operates for compensation in this state equipment or |
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14 | 14 | | facilities to transmit or distribute combustible hydrocarbon |
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15 | 15 | | natural gas or synthetic natural gas for sale or resale in a manner |
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16 | 16 | | not subject to the jurisdiction of the Federal Energy Regulatory |
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17 | 17 | | Commission under the Natural Gas Act (15 U.S.C. Section 717 et |
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18 | 18 | | seq.). The term includes a lessee, trustee, or receiver of a gas |
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19 | 19 | | utility. The term does not include: |
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20 | 20 | | (A) a municipal corporation; |
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21 | 21 | | (B) a person or river authority to the extent the |
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22 | 22 | | person or river authority: |
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23 | 23 | | (i) produces, gathers, transports, or sells |
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24 | 24 | | natural gas or synthetic natural gas under Section 121.004 or |
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25 | 25 | | 121.005; |
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26 | 26 | | (ii) distributes or sells liquefied |
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27 | 27 | | petroleum gas; or |
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28 | 28 | | (iii) transports, delivers, or sells |
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29 | 29 | | natural gas for fuel for irrigation wells or any other direct |
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30 | 30 | | agricultural use; |
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31 | 31 | | (C) a person to the extent the person: |
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32 | 32 | | (i) sells natural gas for use as vehicle |
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33 | 33 | | fuel; |
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34 | 34 | | (ii) sells natural gas to a person who later |
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35 | 35 | | sells the natural gas for use as vehicle fuel; or |
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36 | 36 | | (iii) owns or operates equipment or |
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37 | 37 | | facilities to sell or transport natural gas for ultimate use as |
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38 | 38 | | vehicle fuel; |
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39 | 39 | | (D) a person not otherwise a gas utility who |
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40 | 40 | | furnishes gas or gas service only to itself, its employees, or its |
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41 | 41 | | tenants as an incident of employment or tenancy, if the gas or gas |
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42 | 42 | | service is not resold to or used by others; [or] |
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43 | 43 | | (E) a person excluded from being considered a gas |
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44 | 44 | | utility under Section 121.007; or |
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45 | 45 | | (F) an electric cooperative, as that term is |
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46 | 46 | | defined by Section 11.003, or its subsidiary, that is excluded from |
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47 | 47 | | regulation as a gas utility by Section 121.008. |
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48 | 48 | | SECTION 2. Subchapter A, Chapter 121, Utilities Code, is |
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49 | 49 | | amended by adding Section 121.008 to read as follows: |
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50 | 50 | | Sec. 121.008. CERTAIN STORAGE FACILITIES OWNED BY ELECTRIC |
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51 | 51 | | COOPERATIVES EXCLUDED. An electric cooperative, as that term is |
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52 | 52 | | defined by Section 11.003, or its subsidiary, that sells |
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53 | 53 | | electricity at wholesale is not a gas utility or subject to |
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54 | 54 | | regulation as a gas utility solely because it provides gas storage |
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55 | 55 | | services for hire if the gas storage facility is predominantly |
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56 | 56 | | operated to support the integration of renewable resources. Such a |
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57 | 57 | | gas storage facility may not have a working gas capacity of greater |
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58 | 58 | | than five billion cubic feet. |
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59 | 59 | | SECTION 3. Subdivision (2), Section 111.001, Natural |
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60 | 60 | | Resources Code, is amended to read as follows: |
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61 | 61 | | (2) "Public utility" means a person, association of |
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62 | 62 | | persons, or corporation that owns, operates, or manages crude |
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63 | 63 | | petroleum storage tanks or storage facilities for the public for |
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64 | 64 | | hire, either in connection with a pipeline, pipelines, or |
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65 | 65 | | otherwise. The term does not include an electric cooperative, as |
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66 | 66 | | that term is defined by Section 11.003, Utilities Code, or its |
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67 | 67 | | subsidiary, that sells electricity at wholesale and that owns or |
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68 | 68 | | operates an underground storage facility and provides gas storage |
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69 | 69 | | services to the public for hire if the gas storage facility is |
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70 | 70 | | predominantly operated to support the integration of renewable |
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71 | 71 | | resources. Such a gas storage facility may not have a working gas |
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72 | 72 | | capacity of greater than five billion cubic feet. |
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73 | 73 | | SECTION 4. Section 111.003, Natural Resources Code, is |
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74 | 74 | | amended by adding Subsection (c) to read as follows: |
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75 | 75 | | (c) The provisions of this chapter, and any common law |
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76 | 76 | | requirements or limitations applicable to a common carrier, do not |
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77 | 77 | | apply to an underground storage facility owned or operated by an |
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78 | 78 | | electric cooperative, as that term is defined by Section 11.003, |
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79 | 79 | | Utilities Code, or its subsidiary, that sells electricity at |
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80 | 80 | | wholesale and offers or provides gas storage services to the public |
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81 | 81 | | for hire if the gas storage facility is predominantly operated to |
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82 | 82 | | support the integration of renewable resources. Such a gas storage |
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83 | 83 | | facility may not have a working gas capacity of greater than five |
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84 | 84 | | billion cubic feet. |
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85 | 85 | | SECTION 5. This Act takes effect immediately if it receives |
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86 | 86 | | a vote of two-thirds of all the members elected to each house, as |
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87 | 87 | | provided by Section 39, Article III, Texas Constitution. If this |
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88 | 88 | | Act does not receive the vote necessary for immediate effect, this |
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89 | 89 | | Act takes effect September 1, 2011. |
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