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House Bill 3346 |
House Author: Farabee |
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Effective: Vetoed |
Senate Sponsor: Averitt |
House Bill 3346 amends provisions of the Utilities Code and Natural Resources Code relating to gas utilities and gas storage facilities. The bill redefines "gas utility" as it relates to the regulation and use of gas pipelines to include as an exercise of eminent domain the representation to a property owner that the person has the right to acquire by eminent domain the pipeline right-of-way. In provisions relating to the powers and duties of utilities, the bill clarifies that a gas utility includes a person or business that is under the jurisdiction of the Railroad Commission of Texas and engaged in the transporting or distribution of gas. The bill excludes from regulation as a gas utility an electric cooperative or its subsidiary that sells electricity at wholesale and offers storage services to the public for hire if the gas storage facility is primarily used to support the integration of renewable resources. Such a gas storage facility is prohibited from having a working gas capacity of greater than five billion cubic feet.
Reason Given for Veto: 'House Bill No. 3346 was a well-intended effort to protect landowners from abuses of eminent domain authority. However, two provisions added late in the session are problematic.
'One provision nullifies the original intent of the legislation by removing added protections for landowners. Another provision conflicts with House Bill No. 2572 – which was signed on June 19, 2009 – by requiring the state to pay for the relocation of all gas utility pipelines in certain state rights of way, a requirement that could cost taxpayers millions of dollars.
'Although I support provisions in this bill that offer higher safety requirements for pipelines located in rights of way, these requirements are already covered by provisions in House Bill No. 2572.'