88R10664 JXC-F
By: Miles S.B. No. 2129
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of an independent market monitor for
the natural gas market by the Railroad Commission of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Section 81.0615 to read as follows:
Sec. 81.0615. NATURAL GAS INDEPENDENT MARKET MONITOR. (a)
The commission shall contract with an entity to act as an
independent market monitor to detect and prevent market
manipulation strategies in and recommend measures to enhance the
efficiency of the natural gas market.
(b) The commission shall provide to the personnel of the
market monitor support and cooperation the commission determines is
necessary for the market monitor to perform the market monitor's
functions.
(c) A person who produces, processes, or transports natural
gas shall cooperate with the personnel of the market monitor in a
manner the commission determines is necessary for the market
monitor to perform the market monitor's functions.
(d) The commission is 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.
(e) The commission retains all enforcement authority
conferred under this title and Title 3, Utilities Code, and this
section may not be construed to confer enforcement authority on the
market monitor or to authorize the commission to delegate the
commission's 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.
(f) In adopting rules governing the standards for funding
the market monitor, the commission shall ensure that rules
governing ethical standards 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. The commission shall
establish an advisory committee that includes producers,
processors, and transporters of natural gas and consult with the
advisory committee on how money is or should be spent for monitoring
functions.
(g) The market monitor immediately shall report directly to
the commission any potential market manipulations and any
discovered or potential violations of commission rules.
(h) The personnel of the market monitor may communicate with
commission staff on any matter without restriction.
(i) The market monitor annually shall submit to the
commission a report that identifies market flaws and recommends
methods to correct the flaws. The commission shall review the
report and evaluate whether changes to rules of the commission
should be made.
SECTION 2. This Act takes effect September 1, 2023.