| 1 | 1 | | 89R3842 CS-F |
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| 2 | 2 | | By: Morales of Maverick H.B. No. 4042 |
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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 the applicability of certain safety provisions and |
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| 10 | 10 | | regulatory fees administered by the Railroad Commission of Texas to |
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| 11 | 11 | | gas distribution pipelines. |
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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. Sections 121.211(a), (d), (e), and (g), |
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| 14 | 14 | | Utilities Code, are amended to read as follows: |
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| 15 | 15 | | (a) The railroad commission by rule may adopt a fee to be |
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| 16 | 16 | | assessed annually against operators of [natural] gas distribution |
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| 17 | 17 | | pipelines and their pipeline facilities and [natural] gas master |
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| 18 | 18 | | metered pipelines and their pipeline facilities subject to this |
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| 19 | 19 | | title. |
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| 20 | 20 | | (d) The commission may assess each operator of a [natural] |
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| 21 | 21 | | gas distribution system subject to this title an annual fee not to |
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| 22 | 22 | | exceed one dollar for each service line reported by the system on |
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| 23 | 23 | | the Distribution Annual Report, Form RSPA F7100.1-1, due on March |
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| 24 | 24 | | 15 of each year. The fee is due March 15 of each year. |
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| 25 | 25 | | (e) The railroad commission may assess each operator of a |
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| 26 | 26 | | [natural] gas master metered system subject to this title an annual |
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| 27 | 27 | | fee not to exceed $100 for each master metered system. The fee is |
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| 28 | 28 | | due June 30 of each year. |
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| 29 | 29 | | (g) Each operator of a [natural] gas distribution system and |
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| 30 | 30 | | each [natural] gas master meter operator shall recover as a |
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| 31 | 31 | | surcharge to its existing rates the amounts paid to the commission |
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| 32 | 32 | | under this section. Amounts collected under this subsection by an |
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| 33 | 33 | | investor-owned [natural] gas distribution system or a |
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| 34 | 34 | | cooperatively owned [natural] gas distribution system shall not be |
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| 35 | 35 | | included in the revenue or gross receipts of the company for the |
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| 36 | 36 | | purpose of calculating municipal franchise fees or any tax imposed |
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| 37 | 37 | | under Subchapter B, Chapter 182, Tax Code, or under Chapter 122. |
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| 38 | 38 | | Those amounts are not subject to a sales and use tax imposed by |
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| 39 | 39 | | Chapter 151, Tax Code, or Subtitle C, Title 3, Tax Code. |
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| 40 | 40 | | SECTION 2. Section 121.213(a), Utilities Code, is amended |
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| 41 | 41 | | to read as follows: |
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| 42 | 42 | | (a) In this section, "distribution gas pipeline facility" |
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| 43 | 43 | | means a pipeline facility that distributes [natural] gas directly |
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| 44 | 44 | | to end-use customers. |
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| 45 | 45 | | SECTION 3. Section 121.214(a)(1), Utilities Code, is |
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| 46 | 46 | | amended to read as follows: |
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| 47 | 47 | | (1) "Distribution gas pipeline facility" means a |
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| 48 | 48 | | pipeline facility that distributes [natural] gas directly to end |
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| 49 | 49 | | use customers. |
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| 50 | 50 | | SECTION 4. This Act takes effect September 1, 2025. |
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