By: Darby (Senate Sponsor - Hughes) H.B. No. 2262
(In the Senate - Received from the House May 8, 2023;
May 9, 2023, read first time and referred to Committee on Natural
Resources & Economic Development; May 18, 2023, reported favorably
by the following vote: Yeas 7, Nays 1; May 18, 2023, sent to
printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to gas utility alternative gas expenses and infrastructure
investments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 104, Utilities Code, is
amended by adding Section 104.061 to read as follows:
Sec. 104.061. CONSIDERATION OF ALTERNATIVE GAS EXPENSES AND
INFRASTRUCTURE INVESTMENTS. (a) In this section, "alternative
gas" means:
(1) any pipeline-compatible gaseous fuel that is
derived from:
(A) the anaerobic digestion of biomass,
gasification of biomass, or another biomass conversion process;
(B) agricultural waste; or
(C) landfill gas;
(2) hydrogen produced using:
(A) carbon capture and storage;
(B) renewable energy to break down water into
hydrogen and oxygen through electrolysis; or
(C) pyrolysis to break down methane into hydrogen
and solid carbon;
(3) gas certified in a manner approved by the railroad
commission under Subsection (c); or
(4) another gaseous fuel designated by the railroad
commission under Subsection (c).
(b) This section applies only to a gas utility that owns or
operates for compensation in this state equipment or facilities to
distribute combustible hydrocarbon natural gas or synthetic
natural gas under rates, terms, and conditions approved by a
regulatory authority.
(c) The railroad commission by rule may:
(1) approve a certification process used by an
organization to certify that a type of gas has a lower carbon
content than natural gas; and
(2) designate a gaseous fuel as an alternative gas if
the fuel has a lower carbon content than natural gas.
(d) A gas utility may include one or more forms of purchased
alternative gas in its gas supply portfolio used for the provision
of gas service to the utility's customers. When establishing a gas
utility's rates, the regulatory authority shall allow a gas utility
to recover as a cost or expense expenditures associated with
purchasing the alternative gas if the expenditures were prudent,
reasonable, and necessary.
(e) A gas utility may invest in infrastructure to acquire,
interconnect with, or produce an alternative gas supply for its
customers. When establishing a gas utility's rates, the regulatory
authority shall allow a gas utility to include in its invested
capital prudent, reasonable, and necessary alternative gas supply
infrastructure costs while the infrastructure is used and useful in
providing service to the utility's customers.
SECTION 2. This Act takes effect September 1, 2023.
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