| 1 | 1 | | 89R13391 JON-D |
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| 2 | 2 | | By: LaHood H.B. No. 3652 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a study by the Railroad Commission of Texas regarding |
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| 10 | 10 | | the creation of a strategic gas and petroleum product reserve in |
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| 11 | 11 | | this state. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. (a) In this Act: |
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| 14 | 14 | | (1) "Commission" means the Railroad Commission of |
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| 15 | 15 | | Texas. |
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| 16 | 16 | | (2) "Gas" means natural gas. |
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| 17 | 17 | | (3) "Petroleum product" means any product derived by |
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| 18 | 18 | | refining petroleum and intended to produce power by burning the |
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| 19 | 19 | | product. |
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| 20 | 20 | | (4) "Strategic fuel reserve" means a reserve of gas |
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| 21 | 21 | | and petroleum products for distribution in this state for the |
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| 22 | 22 | | purpose of reducing, in the event of a disaster or other critical |
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| 23 | 23 | | situation, the impact of disruptions in the supply of gas and |
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| 24 | 24 | | petroleum products. |
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| 25 | 25 | | (b) The commission shall conduct a study to determine: |
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| 26 | 26 | | (1) the feasibility of creating, operating, and |
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| 27 | 27 | | maintaining a strategic fuel reserve; |
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| 28 | 28 | | (2) each appropriate location for strategic fuel |
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| 29 | 29 | | reserve facilities; |
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| 30 | 30 | | (3) the appropriate role of each state or local entity |
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| 31 | 31 | | in operating or regulating the strategic fuel reserve; |
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| 32 | 32 | | (4) the necessary minimum capacity for the strategic |
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| 33 | 33 | | fuel reserve; |
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| 34 | 34 | | (5) the circumstances under which gas or petroleum |
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| 35 | 35 | | products maintained as part of the strategic fuel reserve should be |
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| 36 | 36 | | distributed; and |
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| 37 | 37 | | (6) the estimated cost to implement the strategic fuel |
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| 38 | 38 | | reserve, including: |
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| 39 | 39 | | (A) the costs, as applicable, of purchasing, |
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| 40 | 40 | | leasing, constructing, operating, and maintaining facilities |
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| 41 | 41 | | related to the strategic fuel reserve; and |
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| 42 | 42 | | (B) the costs and any financial benefit from |
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| 43 | 43 | | purchasing and selling oil and gas products as part of the strategic |
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| 44 | 44 | | fuel reserve. |
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| 45 | 45 | | (c) Not later than September 30, 2026, the commission shall |
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| 46 | 46 | | submit to the governor, the lieutenant governor, the speaker of the |
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| 47 | 47 | | house of representatives, and each member of the legislature a |
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| 48 | 48 | | report on the results of the study and any recommendations for |
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| 49 | 49 | | legislative or other action. |
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| 50 | 50 | | SECTION 2. This Act expires January 1, 2027. |
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| 51 | 51 | | SECTION 3. This Act takes effect September 1, 2025. |
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