By: Middleton S.B. No. 2553
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a strategic reserve of gas and
crude oil and a severance tax credit for delivering gas and oil to
the reserve.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 81, Natural Resources Code, is amended
by adding Subchapter G to read as follows:
SUBCHAPTER G. STRATEGIC GAS AND CRUDE OIL RESERVE
Sec. 81.171. DEFINITIONS. In this subchapter:
(1) "Program" means the strategic gas and crude oil
reserve program established under this subchapter.
(2) "Reserve" means the strategic gas and crude oil
reserve maintained under this subchapter.
Sec. 81.172. PROGRAM ESTABLISHMENT; POWERS. (a) The
commission shall establish a program for acquiring and maintaining
a strategic gas and crude oil reserve for the distribution of gas
and crude oil in this state.
(b) The commission may purchase, lease, or sell property,
including gas or crude oil, or take any other action reasonably
necessary to establish the program required by Subsection (a).
(c) The commission may accept gifts, grants, and donations,
including gas or crude oil, to implement the program.
Sec. 81.173. GUIDELINE FOR PROGRAM ESTABLISHMENT AND
OPERATION. The program must be established and operated in a manner
that avoids unnecessary impacts on the gas and oil industries when
acquiring or distributing the gas or crude oil and minimizes the
cost of establishing and operating the program.
Sec. 81.174. RULES. (a) The Public Utility Commission of
Texas shall adopt rules governing the conditions under which gas or
crude oil may be distributed from the reserve.
(b) The commission may adopt rules to implement this
subchapter, other than the rules required by Subsection (a).
SECTION 2. Subchapter E, Chapter 201, Tax Code, is amended
by adding Section 201.2025 to read as follows:
Sec. 201.2025. TAX CREDIT FOR IN-KIND DELIVERY OF GAS. (a)
The person responsible for the payment of the tax imposed by this
chapter is entitled to a credit against the tax in the amount and
under the conditions provided by this section.
(b) The amount of the credit is equal to the market value of
gas delivered, including transportation, without charge to and
accepted by this state for the purpose of strategic energy storage.
(c) The credit may not be applied against any portion of the
tax that is required by the state constitution to be deposited to
the credit of the foundation school fund or transferred to the state
highway fund.
(d) A taxpayer may carry any unused credit forward until the
credit is used.
(e) The comptroller may adopt rules to implement this
section.
SECTION 3. Subchapter D, Chapter 202, Tax Code, is amended
by adding Section 202.1515 to read as follows:
Sec. 202.1515. TAX CREDIT FOR IN-KIND DELIVERY OF OIL. (a)
The person responsible for the payment of the tax imposed by this
chapter is entitled to a credit against the tax in the amount and
under the conditions provided by this section.
(b) The amount of the credit is equal to the market value of
oil delivered, including transportation, without charge to and
accepted by this state for the purpose of strategic energy storage.
(c) The credit may not be applied against any portion of the
tax that is required by the state constitution to be deposited to
the credit of the foundation school fund or transferred to the state
highway fund.
(d) A taxpayer may carry any unused credit forward until the
credit is used.
(e) The comptroller may adopt rules to implement this
section.
SECTION 4. As soon as practicable after the strategic gas
and crude oil reserve is established under Subchapter G, Chapter
81, Natural Resources Code, as added by this Act, the Public Utility
Commission of Texas shall adopt the rules required by Section
81.174(a), Natural Resources Code, as added by this Act.
SECTION 5. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 6. This Act takes effect September 1, 2023.