Texas 2023 - 88th Regular

Texas House Bill HB4706 Compare Versions

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1	1	88R13978 ANG-F
2	2	By: Bryant H.B. No. 4706
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of an independent market monitor for
8	8	the natural gas market by the Public Utility Commission of Texas and
9	9	an independent organization certified for a power region.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 39.1515, Utilities Code, is amended by
12	12	adding Subsection (a-1) to read as follows:
13	13	(a-1) In this section, "market monitor" means the entity
14	14	selected under Subsection (a).
15	15	SECTION 2. Subchapter D, Chapter 39, Utilities Code, is
16	16	amended by adding Section 39.1517 to read as follows:
17	17	Sec. 39.1517. NATURAL GAS MARKET MONITOR. (a) An
18	18	independent organization certified under Section 39.151 shall
19	19	contract with an entity selected by the commission to act as an
20	20	independent market monitor for the natural gas market to:
21	21	(1) detect and prevent market manipulation strategies
22	22	in the natural gas market to prevent the unreasonable restriction,
23	23	impairment, or reduction in the level of competition; and
24	24	(2) recommend measures to enhance the efficiency of
25	25	the natural gas market.
26	26	(b) In this section:
27	27	(1) "Market monitor" means the entity selected under
28	28	Subsection (a).
29	29	(2) "Natural gas market" means transactions made by a
30	30	gas supply chain facility described by Section 86.044(b), Natural
31	31	Resources Code, or a gas pipeline facility described by Section
32	32	121.2015(a)(3) to supply natural gas for the electricity supply
33	33	chain, as mapped under Section 38.203.
34	34	(c) The independent organization shall provide to the
35	35	personnel of the market monitor:
36	36	(1) support and cooperation the commission determines
37	37	is necessary for the market monitor to perform the market monitor's
38	38	functions; and
39	39	(2) full access to the parts of the independent
40	40	organization's main operations center and records that concern
41	41	operations, settlements, and reliability.
42	42	(d) The independent organization shall use money from the
43	43	fee authorized by Section 39.151(e) to pay for the market monitor's
44	44	activities.
45	45	(e) The commission and the Railroad Commission of Texas are
46	46	responsible for ensuring that the market monitor has the resources,
47	47	expertise, and authority necessary to monitor the natural gas
48	48	market in this state effectively and shall adopt rules and perform
49	49	oversight of the market monitor as necessary. The market monitor
50	50	shall operate under the supervision and oversight of the
51	51	commission.
52	52	(f) The commission and the Railroad Commission of Texas
53	53	retain all enforcement authority conferred under this title, Title
54	54	3, and the Natural Resources Code, and this section may not be
55	55	construed to confer enforcement authority on the market monitor or
56	56	to authorize the commission or the Railroad Commission of Texas to
57	57	delegate enforcement authority to the market monitor. The
58	58	commission by rule shall define:
59	59	(1) the market monitor's monitoring responsibilities,
60	60	including reporting obligations and limitations;
61	61	(2) the standards for funding the market monitor,
62	62	including staffing requirements;
63	63	(3) qualifications for personnel of the market
64	64	monitor; and
65	65	(4) ethical standards for the market monitor and the
66	66	personnel of the market monitor.
67	67	(g) In adopting rules governing the standards for funding
68	68	the market monitor, the commission shall consult with a
69	69	subcommittee of the independent organization's governing body to
70	70	receive information on how money is or should be spent for
71	71	monitoring functions. Rules governing ethical standards must
72	72	include provisions designed to ensure that the personnel of the
73	73	market monitor are professionally and financially independent from
74	74	participants in the natural gas market. The commission shall
75	75	develop and implement policies that clearly separate the
76	76	policy-making responsibilities of the commission and the
77	77	monitoring, analysis, and reporting responsibilities of the market
78	78	monitor.
79	79	(h) The market monitor immediately shall report directly to
80	80	the commission any potential market manipulations and any
81	81	discovered or potential violations of commission rules, protocols
82	82	of the independent organization, or rules of the Railroad
83	83	Commission of Texas.
84	84	(i) The market monitor shall consult with the Railroad
85	85	Commission of Texas to obtain necessary information for the market
86	86	monitor to perform the market monitor's functions. The commission
87	87	may enter into a memorandum of understanding with the Railroad
88	88	Commission of Texas to:
89	89	(1) ensure the market monitor has access to the
90	90	information needed for the market monitor to perform the market
91	91	monitor's functions; and
92	92	(2) provide oversight over the sharing of information
93	93	between the Railroad Commission of Texas and the market monitor.
94	94	(j) The personnel of the market monitor may communicate with
95	95	commission staff on any matter without restriction.
96	96	(k) The market monitor annually shall submit to the
97	97	independent organization, the commission, and the Railroad
98	98	Commission of Texas a report that identifies market flaws and
99	99	recommends methods to correct the flaws. The independent
100	100	organization, the commission, and the Railroad Commission of Texas
101	101	shall review the report and evaluate whether changes to commission
102	102	rules, protocols of the independent organization, or rules of the
103	103	Railroad Commission of Texas should be made.
104	104	SECTION 3. This Act takes effect September 1, 2023.