H.B. 2654 78(R) BILL ANALYSIS H.B. 2654 By: Farabee Energy Resources Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, Section 118.002 of the Natural Resources Code allows the Railroad Commission of Texas to require operators of pipelines, to file for Commission approval a plan for assessment or testing of their pipelines. The current law could allow the Commission to also impose these requirements on gathering lines that are outside of populated areas. House Bill 2654 would exclude gathering lines outside of populated areas or residential or commercial areas from the application of this law. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS SECTION 118.002, Natural Resources Code, PIPELINES FOR WHICH PLAN MAY BE REQUIRED This section amends Subsection (a) in Section 118.002 of the Natural Resources Code by creating an exception that exempts gathering lines situated outside of populated, residential or commercial areas from the application of the law. New language is added in Subsection (b) of Section 118.002 of the Natural Resources Code to read as follows: (b) Exempted rom the application of this chapter are gathering lines outside: (i) the limits of an incorporated or unincorporated city or village; (ii) of any designated residential or commercial area such as residential subdivisions, businesses, shopping centers, or community development. EFFECTIVE DATE This Act takes effect immediately if it receives a vote of two-thirds of all members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.