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A BILL TO BE ENTITLED
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AN ACT
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relating to gas utility alternative gas expenses and infrastructure |
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investments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 104, Utilities Code, is |
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amended by adding Section 104.061 to read as follows: |
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Sec. 104.061. CONSIDERATION OF ALTERNATIVE GAS EXPENSES AND |
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INFRASTRUCTURE INVESTMENTS. (a) In this section, "alternative |
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gas" means: |
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(1) any pipeline-compatible gaseous fuel that is |
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derived from: |
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(A) the anaerobic digestion of biomass, |
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gasification of biomass, or another biomass conversion process; |
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(B) agricultural waste; or |
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(C) landfill gas; |
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(2) hydrogen produced using: |
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(A) carbon capture and storage; |
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(B) renewable energy to break down water into |
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hydrogen and oxygen through electrolysis; or |
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(C) the breakdown of methane into hydrogen and |
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solid carbon through pyrolysis; |
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(3) gas certified in a manner approved by the railroad |
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commission under Subsection (b); or |
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(4) another gaseous fuel designated by the railroad |
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commission under Subsection (b). |
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(b) The railroad commission by rule may: |
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(1) approve a certification process used by an |
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organization to certify that a type of gas has a lower carbon |
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content than natural gas; and |
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(2) designate a gaseous fuel as an alternative gas if |
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the fuel has a lower carbon content than natural gas. |
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(c) A gas utility may include one or more forms of purchased |
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alternative gas in its gas supply portfolio used for the provision |
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of gas service to the public. When establishing a gas utility's |
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rates, the regulatory authority shall allow a gas utility to |
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recover as a cost or expense expenditures associated with |
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purchasing the alternative gas. |
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(d) When reviewing a gas utility's expenses, the regulatory |
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authority shall presume that purchases of alternative gas under |
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Subsection (c) are prudent, reasonable, and necessary gas expenses. |
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(e) A gas utility may invest in infrastructure to acquire, |
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interconnect with, or produce alternative gas supply for its |
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customers. When establishing a gas utility's rates, the regulatory |
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authority shall allow a gas utility to include in its invested |
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capital the infrastructure costs. |
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(f) The regulatory authority shall presume that an |
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infrastructure investment under Subsection (e) is used and useful |
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in providing service to the public and a prudent, reasonable, and |
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necessary investment. |
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SECTION 2. This Act takes effect September 1, 2023. |