| 1 | 1 | | By: Anchia H.B. No. 4561 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the powers and duties of the Railroad Commission of |
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| 7 | 7 | | Texas; providing an administrative penalty. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | Subchapter A, Chapter 81, Subtitle A, Title 3, Natural |
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| 10 | 10 | | Resources Code, is amended to read as follows: |
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| 11 | 11 | | Sec. 81.058. ADMINISTRATIVE PENALTY FOR CERTAIN NATURAL |
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| 12 | 12 | | GAS-RELATED ACTIVITIES. |
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| 13 | 13 | | (a) The commission, after notice and opportunity for |
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| 14 | 14 | | hearing, may impose an administrative penalty against a purchaser, |
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| 15 | 15 | | transporter, gatherer, shipper, or seller of natural gas, a person |
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| 16 | 16 | | described by Section 81.051(a) or 111.081(a), or any other entity |
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| 17 | 17 | | under the jurisdiction of the commission under this code that the |
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| 18 | 18 | | commission determines has: |
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| 19 | 19 | | (1) violated a commission rule adopting standards or a |
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| 20 | 20 | | code of conduct for entities in the natural gas industry |
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| 21 | 21 | | prohibiting unlawful discrimination; or |
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| 22 | 22 | | (2) unreasonably discriminated against a seller of |
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| 23 | 23 | | natural gas in the purchase of natural gas from the seller[.];or |
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| 24 | 24 | | (3) sold natural gas used in the production and |
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| 25 | 25 | | generation of electricity intended for sale and use on the Texas |
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| 26 | 26 | | electric grid at an excessive price during a declared disaster. |
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| 27 | 27 | | (b) The commission, after notice and opportunity for |
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| 28 | 28 | | hearing, may impose an administrative penalty against a purchaser, |
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| 29 | 29 | | transporter, or gatherer of natural gas if the commission |
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| 30 | 30 | | determines that the person engaged in prohibited discrimination |
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| 31 | 31 | | against a shipper or seller of natural gas because the shipper or |
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| 32 | 32 | | seller filed a formal or informal complaint with the commission |
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| 33 | 33 | | against the person relating to the person's purchase, |
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| 34 | 34 | | transportation, or gathering of the gas. |
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| 35 | 35 | | (c) The commission, after notice and opportunity for |
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| 36 | 36 | | hearing, may impose an administrative penalty against a purchaser, |
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| 37 | 37 | | transporter, gatherer, shipper, or seller of natural gas who is a |
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| 38 | 38 | | party to an informal complaint resolution proceeding and is |
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| 39 | 39 | | determined by the commission to have: |
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| 40 | 40 | | (1) failed to participate in the proceeding; or |
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| 41 | 41 | | (2) failed to provide information requested by a |
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| 42 | 42 | | mediator in the proceeding. |
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| 43 | 43 | | (d) An administrative penalty imposed under this section |
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| 44 | 44 | | may not exceed [$5,000] $250,000 a day for each violation. Each day |
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| 45 | 45 | | a violation continues or occurs is a separate violation for |
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| 46 | 46 | | purposes of imposing a penalty under this section. |
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| 47 | 47 | | (e) If the commission determines after notice and |
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| 48 | 48 | | opportunity for hearing that an entity has engaged in prohibited |
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| 49 | 49 | | discrimination for which a penalty may be imposed under this |
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| 50 | 50 | | section, the commission may issue any order necessary and |
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| 51 | 51 | | reasonable to prevent the discrimination from continuing. |
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| 52 | 52 | | (f) The remedy provided by this section is cumulative of any |
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| 53 | 53 | | other remedy the commission may order. |
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| 54 | 54 | | Sec. 81.061. AUTHORITY TO ESTABLISH MARKET-BASED RATES. |
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| 55 | 55 | | (a) This section does not apply to rates established under |
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| 56 | 56 | | Chapter 103, Utilities Code, or Subchapter C or G, Chapter 104, of |
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| 57 | 57 | | that code. |
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| 58 | 58 | | (b) The commission may use a cost-of-service method or a |
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| 59 | 59 | | market-based rate method in setting a rate in a formal rate |
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| 60 | 60 | | proceeding. If the rate case is the result of a complaint filed for |
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| 61 | 61 | | declared disaster excessive pricing, the commission must use an |
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| 62 | 62 | | average market price of the three months preceding the declared |
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| 63 | 63 | | disaster. |
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| 64 | 64 | | (c) On the filing of a complaint by a shipper or seller of |
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| 65 | 65 | | natural gas, the commission may set a transportation or gathering |
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| 66 | 66 | | rate in a formal rate proceeding if the commission determines that |
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| 67 | 67 | | the rate is necessary to remedy unreasonable discrimination in the |
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| 68 | 68 | | provision of transportation or gathering services. The commission |
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| 69 | 69 | | may set a rate regardless of whether the transporter or gatherer is |
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| 70 | 70 | | classified as a utility by other law. |
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| 71 | 71 | | (d) On the filing of a complaint of excessive price by a |
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| 72 | 72 | | power generation company acting as a purchaser of natural gas and |
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| 73 | 73 | | registered with the Texas Public Utility Commission under |
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| 74 | 74 | | Substantive Rule 25.5 (54), the commission shall set a rate in a |
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| 75 | 75 | | formal rate proceeding if the commission determines that the rate |
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| 76 | 76 | | is necessary to remedy excessive pricing during a declared |
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| 77 | 77 | | disaster period or shortage. |
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| 78 | 78 | | SECTION 2. This Act takes effect immediately if it receives |
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| 79 | 79 | | a vote of two-thirds of all the members elected to each house, as |
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| 80 | 80 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 81 | 81 | | Act does not receive the vote necessary for immediate effect, this |
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| 82 | 82 | | Act takes effect September 1, 2021. |
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