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