88R14026 JCG-D
By: Slaton H.B. No. 4408
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a strategic fuel reserve program
in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 418, Government Code, is amended by
adding Subchapter K to read as follows:
SUBCHAPTER K. STRATEGIC FUEL RESERVE PROGRAM
Sec. 418.351. DEFINITIONS. In this subchapter:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Gas" means natural gas.
(3) "Petroleum product" means any product derived by
refining petroleum and intended to produce power by burning the
product.
(4) "Program" means the strategic fuel reserve program
established under this subchapter.
Sec. 418.352. PROGRAM ESTABLISHMENT AND PURPOSE. The
commission shall establish a program for acquiring and maintaining
a strategic fuel reserve of gas and petroleum products for
distribution in this state in the event of a disaster to reduce the
impact of disruptions in supplies of the gas and petroleum products
in this state.
Sec. 418.353. GUIDELINE FOR PROGRAM ESTABLISHMENT AND
OPERATION. The program must be established and operated in a manner
that substantially reduces this state's vulnerability to an energy
emergency while considering the energy needs and infrastructure of
each region of this state.
Sec. 418.354. POWERS; EXCEPTION. (a) Except as provided by
Subsection (b), the commission may purchase, sell, and lease
property, including gas and petroleum products, and take any other
action reasonable and necessary to establish and operate the
program.
(b) The commission may not distribute gas or petroleum
products maintained as part of the strategic fuel reserve unless
the governor declares a state of disaster and directs the
distribution or determines that a disaster has occurred in another
state and that state is in need of gas or petroleum products.
(c) The governor may direct the distribution of not more
than 30 percent of the gas or petroleum products in the strategic
fuel reserve to another state under Subsection (b).
Sec. 418.355. MINIMUM REQUIREMENTS. The strategic fuel
reserve established under this subchapter must have the capacity to
hold at least the amount of gas and petroleum products needed to
provide fuel and power for this state for a period of at least 30
days in the event of a disaster that would likely disrupt the
regular distribution of gas and petroleum products throughout this
state. The commission shall maintain at least that amount of gas
and petroleum products in the reserve except when gas and petroleum
products are being distributed in response to a disaster and for a
reasonable time needed to replenish the reserve after a disaster.
Sec. 418.356. RULEMAKING. The commission, in consultation
with the governor, shall adopt rules as necessary to implement this
subchapter, including rules governing the distribution of gas or
petroleum products maintained as part of the strategic fuel reserve
in the event of a disaster.
SECTION 2. (a) As soon as practicable after the effective
date of this Act, the Railroad Commission of Texas shall adopt any
rules necessary to implement Subchapter K, Chapter 418, Government
Code, as added by this Act.
(b) After the strategic fuel reserve program described by
Section 418.352, Government Code, as added by this Act, is
established, the Texas Division of Emergency Management shall
revise the state emergency management plan described by Section
418.042, Government Code, and the state emergency management plan
annex described by Section 418.0425, Government Code, to account
for the establishment and operation of a strategic fuel reserve
program under Section 1 of this Act.
SECTION 3. This Act takes effect September 1, 2023.