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|  | AN ACT | 
|  | relating to excluding the transportation of gas to and from a | 
|  | liquefied natural gas marine terminal from being considered a gas | 
|  | utility. | 
|  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
|  | SECTION 1.  Section 101.003(7), Utilities Code, is amended | 
|  | to read as follows: | 
|  | (7)  "Gas utility" includes a person or river authority | 
|  | that owns or operates for compensation in this state equipment or | 
|  | facilities to transmit or distribute combustible hydrocarbon | 
|  | natural gas or synthetic natural gas for sale or resale in a manner | 
|  | not subject to the jurisdiction of the Federal Energy Regulatory | 
|  | Commission under the Natural Gas Act (15 U.S.C. Section 717 et | 
|  | seq.). The term includes a lessee, trustee, or receiver of a gas | 
|  | utility.  The term does not include: | 
|  | (A)  a municipal corporation; | 
|  | (B)  a person or river authority to the extent the | 
|  | person or river authority: | 
|  | (i)  produces, gathers, transports, or sells | 
|  | natural gas or synthetic natural gas under Section 121.004 or | 
|  | 121.005; | 
|  | (ii)  distributes or sells liquefied | 
|  | petroleum gas;  or | 
|  | (iii)  transports, delivers, or sells | 
|  | natural gas for fuel for irrigation wells or any other direct | 
|  | agricultural use; | 
|  | (C)  a person to the extent the person: | 
|  | (i)  sells natural gas for use as vehicle | 
|  | fuel; | 
|  | (ii)  sells natural gas to a person who later | 
|  | sells the natural gas for use as vehicle fuel; or | 
|  | (iii)  owns or operates equipment or | 
|  | facilities to sell or transport natural gas for ultimate use as | 
|  | vehicle fuel; [ or] | 
|  | (D)  a person not otherwise a gas utility who | 
|  | furnishes gas or gas service only to itself, its employees, or its | 
|  | tenants as an incident of employment or tenancy, if the gas or gas | 
|  | service is not resold to or used by others; or | 
|  | (E)  a person excluded from being considered a gas | 
|  | utility under Section 121.007. | 
|  | SECTION 2.  Subchapter A, Chapter 121, Utilities Code, is | 
|  | amended by adding Section 121.007 to read as follows: | 
|  | Sec. 121.007.  TRANSPORTATION OF GAS TO AND FROM LIQUEFIED | 
|  | NATURAL GAS MARINE TERMINAL EXCLUDED.  (a)  A person operating a | 
|  | natural gas pipeline, a liquefied natural gas pipeline, or an | 
|  | underground storage facility is not a gas utility if the person | 
|  | certifies to the railroad commission that the person uses the | 
|  | pipeline or underground storage facility solely to deliver natural | 
|  | gas or liquefied natural gas: | 
|  | (1)  to a liquefied natural gas marine terminal; | 
|  | (2)  from a liquefied natural gas marine terminal to | 
|  | the owner of the gas or another person on behalf of the owner of the | 
|  | gas; or | 
|  | (3)  that is acquired or sold by the person as necessary | 
|  | for the operation or maintenance of its facility that is excluded as | 
|  | a gas utility under this section. | 
|  | (b)  This section does not confer the power of eminent domain | 
|  | to a pipeline or underground storage facility excluded as a gas | 
|  | utility under this section. | 
|  | SECTION 3.  This Act takes effect immediately if it receives | 
|  | a vote of two-thirds of all the 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, 2007. | 
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|  | 
|  | ______________________________ | ______________________________ | 
|  | President of the Senate | Speaker of the House | 
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|  | 
|  | I certify that H.B. No. 2174 was passed by the House on April | 
|  | 19, 2007, by the following vote:  Yeas 142, Nays 0, 2 present, not | 
|  | voting. | 
|  |  | 
|  | ______________________________ | 
|  | Chief Clerk of the House | 
|  | 
|  | 
|  | I certify that H.B. No. 2174 was passed by the Senate on May | 
|  | 23, 2007, by the following vote:  Yeas 31, Nays 0. | 
|  |  | 
|  | ______________________________ | 
|  | Secretary of the Senate | 
|  | APPROVED:  _____________________ | 
|  | Date | 
|  |  | 
|  | _____________________ | 
|  | Governor |