| 1 | 1 | | 88R10664 JXC-F |
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| 2 | 2 | | By: Miles S.B. No. 2129 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the establishment of an independent market monitor for |
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| 8 | 8 | | the natural gas market by the Railroad Commission of Texas. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 81, Natural Resources |
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| 11 | 11 | | Code, is amended by adding Section 81.0615 to read as follows: |
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| 12 | 12 | | Sec. 81.0615. NATURAL GAS INDEPENDENT MARKET MONITOR. (a) |
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| 13 | 13 | | The commission shall contract with an entity to act as an |
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| 14 | 14 | | independent market monitor to detect and prevent market |
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| 15 | 15 | | manipulation strategies in and recommend measures to enhance the |
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| 16 | 16 | | efficiency of the natural gas market. |
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| 17 | 17 | | (b) The commission shall provide to the personnel of the |
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| 18 | 18 | | market monitor support and cooperation the commission determines is |
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| 19 | 19 | | necessary for the market monitor to perform the market monitor's |
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| 20 | 20 | | functions. |
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| 21 | 21 | | (c) A person who produces, processes, or transports natural |
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| 22 | 22 | | gas shall cooperate with the personnel of the market monitor in a |
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| 23 | 23 | | manner the commission determines is necessary for the market |
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| 24 | 24 | | monitor to perform the market monitor's functions. |
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| 25 | 25 | | (d) The commission is responsible for ensuring that the |
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| 26 | 26 | | market monitor has the resources, expertise, and authority |
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| 27 | 27 | | necessary to monitor the natural gas market in this state |
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| 28 | 28 | | effectively and shall adopt rules and perform oversight of the |
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| 29 | 29 | | market monitor as necessary. The market monitor shall operate |
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| 30 | 30 | | under the supervision and oversight of the commission. |
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| 31 | 31 | | (e) The commission retains all enforcement authority |
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| 32 | 32 | | conferred under this title and Title 3, Utilities Code, and this |
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| 33 | 33 | | section may not be construed to confer enforcement authority on the |
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| 34 | 34 | | market monitor or to authorize the commission to delegate the |
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| 35 | 35 | | commission's enforcement authority to the market monitor. The |
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| 36 | 36 | | commission by rule shall define: |
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| 37 | 37 | | (1) the market monitor's monitoring responsibilities, |
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| 38 | 38 | | including reporting obligations and limitations; |
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| 39 | 39 | | (2) the standards for funding the market monitor, |
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| 40 | 40 | | including staffing requirements; |
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| 41 | 41 | | (3) qualifications for personnel of the market |
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| 42 | 42 | | monitor; and |
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| 43 | 43 | | (4) ethical standards for the market monitor and the |
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| 44 | 44 | | personnel of the market monitor. |
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| 45 | 45 | | (f) In adopting rules governing the standards for funding |
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| 46 | 46 | | the market monitor, the commission shall ensure that rules |
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| 47 | 47 | | governing ethical standards include provisions designed to ensure |
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| 48 | 48 | | that the personnel of the market monitor are professionally and |
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| 49 | 49 | | financially independent from participants in the natural gas |
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| 50 | 50 | | market. The commission shall develop and implement policies that |
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| 51 | 51 | | clearly separate the policy-making responsibilities of the |
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| 52 | 52 | | commission and the monitoring, analysis, and reporting |
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| 53 | 53 | | responsibilities of the market monitor. The commission shall |
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| 54 | 54 | | establish an advisory committee that includes producers, |
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| 55 | 55 | | processors, and transporters of natural gas and consult with the |
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| 56 | 56 | | advisory committee on how money is or should be spent for monitoring |
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| 57 | 57 | | functions. |
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| 58 | 58 | | (g) The market monitor immediately shall report directly to |
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| 59 | 59 | | the commission any potential market manipulations and any |
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| 60 | 60 | | discovered or potential violations of commission rules. |
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| 61 | 61 | | (h) The personnel of the market monitor may communicate with |
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| 62 | 62 | | commission staff on any matter without restriction. |
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| 63 | 63 | | (i) The market monitor annually shall submit to the |
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| 64 | 64 | | commission a report that identifies market flaws and recommends |
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| 65 | 65 | | methods to correct the flaws. The commission shall review the |
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| 66 | 66 | | report and evaluate whether changes to rules of the commission |
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| 67 | 67 | | should be made. |
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| 68 | 68 | | SECTION 2. This Act takes effect September 1, 2023. |
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