Floor Packet Page No. 6
      Amend CSSB 7 (House committee report) as follows:
      (1)  Strike Section 35.102, Utilities Code, as added by
SECTION 23 of the bill (page 29, lines 15-19), and substitute a new
Section 35.102 to read as follows:
      Sec. 35.102.  STATE AUTHORITY TO SELL OR CONVEY POWER.  The
commissioner, acting on behalf of the state, may sell or otherwise
convey power generated from royalties taken in kind as provided by
Sections 52.133(d), 53.026, and 53.077, Natural Resources Code,
directly to a public retail customer regardless of whether the
public retail customer is also classified as a wholesale customer
under other provisions of this title.  To ensure that the state
receives the maximum benefit from the sale of power generated from
royalties taken in kind, the commissioner shall use all feasible
means to sell that power first to public retail customers that are
agencies of this state, institutions of higher education, or public
school districts. The remainder of the power, if any, may be sold
to public retail customers that are political subdivisions of this
state.
      (2)  Strike Subsection (b), Section 35.103, Utilities Code,
as added by SECTION 23 of the bill (page 29, line 26 through page
30, line 3), and substitute a new Subsection (b) to read as
follows:
      (b)  An entity described by Subsection (a) shall provide any
utility service, including transmission, distribution, and other
services, which must include any stranded costs associated with
providing service, to the state at the lowest applicable rate
charged for similar service to other customers.
      (3)  At the end of SECTION 23 of the bill (page 30, between
lines 15 and 16), insert a new Section 35.106, Utilities Code, to
read as follows:
      Sec. 35.106.  ACCESS TO POWER GENERATION.  If pipeline
capacity is available on an existing facility of a gas utility or
municipally owned utility, a gas utility or a municipally owned
utility may not refuse to provide gas service to an electric
utility generating facility, if the purpose of the service is to
generate power for public retail customers by the state or an
agency of this state.
      (4)  In the introduction to SECTION 49 of the bill (page 201,
lines 24 and 25), strike "Subsections (a), (c), and (d), Section
52.133, Natural Resources Code, are amended" and substitute
"Section 52.133, Natural Resources Code, is amended by amending
Subsections (a), (c), and (d) and by adding Subsection (f)".
      (5)  In Section 52.133(c), Natural Resources Code, as amended
by SECTION 49 of the bill (page 202, lines 16 and 17), strike
"sale, purchase, transportation, and storage" and substitute "sale,
marketing, purchase, transportation, including purchase and
exchange agreements necessary to transport gas, and storage".
      (6)  In Section 52.133, Natural Resources Code, as amended by
SECTION 49 of the bill (page 202, between lines 24 and 25), insert
a new Subsection (f) to read as follows:
      (f)  For the purposes of this section, royalty taken in kind
includes oil or gas sold or marketed by the commissioner that has
been produced on state mineral lands or from the first three miles
of federal waters adjacent to the state boundaries, also known as
the 8g zone.