89R13391 JON-D
By: LaHood H.B. No. 3652
A BILL TO BE ENTITLED
AN ACT
relating to a study by the Railroad Commission of Texas regarding
the creation of a strategic gas and petroleum product reserve in
this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) In this Act:
(1) "Commission" means the Railroad Commission of
Texas.
(2) "Gas" means natural gas.
(3) "Petroleum product" means any product derived by
refining petroleum and intended to produce power by burning the
product.
(4) "Strategic fuel reserve" means a reserve of gas
and petroleum products for distribution in this state for the
purpose of reducing, in the event of a disaster or other critical
situation, the impact of disruptions in the supply of gas and
petroleum products.
(b) The commission shall conduct a study to determine:
(1) the feasibility of creating, operating, and
maintaining a strategic fuel reserve;
(2) each appropriate location for strategic fuel
reserve facilities;
(3) the appropriate role of each state or local entity
in operating or regulating the strategic fuel reserve;
(4) the necessary minimum capacity for the strategic
fuel reserve;
(5) the circumstances under which gas or petroleum
products maintained as part of the strategic fuel reserve should be
distributed; and
(6) the estimated cost to implement the strategic fuel
reserve, including:
(A) the costs, as applicable, of purchasing,
leasing, constructing, operating, and maintaining facilities
related to the strategic fuel reserve; and
(B) the costs and any financial benefit from
purchasing and selling oil and gas products as part of the strategic
fuel reserve.
(c) Not later than September 30, 2026, the commission shall
submit to the governor, the lieutenant governor, the speaker of the
house of representatives, and each member of the legislature a
report on the results of the study and any recommendations for
legislative or other action.
SECTION 2. This Act expires January 1, 2027.
SECTION 3. This Act takes effect September 1, 2025.