88R7673 JXC-F
By: Hughes S.B. No. 1049
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) the breakdown of methane into hydrogen and
solid carbon through pyrolysis;
(3) gas certified in a manner approved by the railroad
commission under Subsection (b); or
(4) another gaseous fuel designated by the railroad
commission under Subsection (b).
(b) 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.
(c) 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 public. 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.
(d) When reviewing a gas utility's expenses, the regulatory
authority shall presume that purchases of alternative gas under
Subsection (c) are prudent, reasonable, and necessary gas expenses.
(e) A gas utility may invest in infrastructure to acquire,
interconnect with, or produce 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 the infrastructure costs.
(f) The regulatory authority shall presume that an
infrastructure investment under Subsection (e) is used and useful
in providing service to the public and a prudent, reasonable, and
necessary investment.
SECTION 2. This Act takes effect September 1, 2023.