BILL ANALYSIS

 

 

                                                                                                                                             H.B. 872

                                                                                                                By: West, George "Buddy"

                                                                                                                               Energy Resources

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

The first year this statute(Sections 121.211, Utilities Code) was in effect, a cooperatively-owned natural gas distribution system took the position that it did not owe the pipeline safety fee.  This stand was based on references to “investor-owned and municipally-owned natural gas distribution system” in Section 121.211 of the Utility Code.

 

HB 872 clarifies that the pipeline safety inspection fee is applicable to all natural gas distribution operators by removing current references to “investor-owned” and “municipally-owned” natural gas distribution systems. The pipeline safety inspection fee will clearly apply to operators of all natural gas distribution systems, regardless of the type of ownership of the system.

 

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 1.  

 

Section 121.211(d) and (g) are amended to clarify that an operator of a natural gas distribution system is subject to this chapter.

 

EFFECTIVE DATE

 

September 1, 2005