88R13978 ANG-F
By: Bryant H.B. No. 4706
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of an independent market monitor for
the natural gas market by the Public Utility Commission of Texas and
an independent organization certified for a power region.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.1515, Utilities Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) In this section, "market monitor" means the entity
selected under Subsection (a).
SECTION 2. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1517 to read as follows:
Sec. 39.1517. NATURAL GAS MARKET MONITOR. (a) An
independent organization certified under Section 39.151 shall
contract with an entity selected by the commission to act as an
independent market monitor for the natural gas market to:
(1) detect and prevent market manipulation strategies
in the natural gas market to prevent the unreasonable restriction,
impairment, or reduction in the level of competition; and
(2) recommend measures to enhance the efficiency of
the natural gas market.
(b) In this section:
(1) "Market monitor" means the entity selected under
Subsection (a).
(2) "Natural gas market" means transactions made by a
gas supply chain facility described by Section 86.044(b), Natural
Resources Code, or a gas pipeline facility described by Section
121.2015(a)(3) to supply natural gas for the electricity supply
chain, as mapped under Section 38.203.
(c) The independent organization shall provide to the
personnel of the market monitor:
(1) support and cooperation the commission determines
is necessary for the market monitor to perform the market monitor's
functions; and
(2) full access to the parts of the independent
organization's main operations center and records that concern
operations, settlements, and reliability.
(d) The independent organization shall use money from the
fee authorized by Section 39.151(e) to pay for the market monitor's
activities.
(e) The commission and the Railroad Commission of Texas are
responsible for ensuring that the market monitor has the resources,
expertise, and authority necessary to monitor the natural gas
market in this state effectively and shall adopt rules and perform
oversight of the market monitor as necessary. The market monitor
shall operate under the supervision and oversight of the
commission.
(f) The commission and the Railroad Commission of Texas
retain all enforcement authority conferred under this title, Title
3, and the Natural Resources Code, and this section may not be
construed to confer enforcement authority on the market monitor or
to authorize the commission or the Railroad Commission of Texas to
delegate enforcement authority to the market monitor. The
commission by rule shall define:
(1) the market monitor's monitoring responsibilities,
including reporting obligations and limitations;
(2) the standards for funding the market monitor,
including staffing requirements;
(3) qualifications for personnel of the market
monitor; and
(4) ethical standards for the market monitor and the
personnel of the market monitor.
(g) In adopting rules governing the standards for funding
the market monitor, the commission shall consult with a
subcommittee of the independent organization's governing body to
receive information on how money is or should be spent for
monitoring functions. Rules governing ethical standards must
include provisions designed to ensure that the personnel of the
market monitor are professionally and financially independent from
participants in the natural gas market. The commission shall
develop and implement policies that clearly separate the
policy-making responsibilities of the commission and the
monitoring, analysis, and reporting responsibilities of the market
monitor.
(h) The market monitor immediately shall report directly to
the commission any potential market manipulations and any
discovered or potential violations of commission rules, protocols
of the independent organization, or rules of the Railroad
Commission of Texas.
(i) The market monitor shall consult with the Railroad
Commission of Texas to obtain necessary information for the market
monitor to perform the market monitor's functions. The commission
may enter into a memorandum of understanding with the Railroad
Commission of Texas to:
(1) ensure the market monitor has access to the
information needed for the market monitor to perform the market
monitor's functions; and
(2) provide oversight over the sharing of information
between the Railroad Commission of Texas and the market monitor.
(j) The personnel of the market monitor may communicate with
commission staff on any matter without restriction.
(k) The market monitor annually shall submit to the
independent organization, the commission, and the Railroad
Commission of Texas a report that identifies market flaws and
recommends methods to correct the flaws. The independent
organization, the commission, and the Railroad Commission of Texas
shall review the report and evaluate whether changes to commission
rules, protocols of the independent organization, or rules of the
Railroad Commission of Texas should be made.
SECTION 3. This Act takes effect September 1, 2023.