BILL ANALYSIS
Senate Research Center H.B. 1883
81R23350 TRH-F By: Farabee (Averitt)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Under current law, most entities engaged in the transportation and gathering of natural gas within Texas are not regulated like their counterparts in the interstate system. Intrastate pipelines in Texas are allowed to claim an exemption from utility status, reporting, and other requirements by self-certifying to the Railroad Commission of Texas (commission) that they meet the criteria for the gathering exemption. Most pipelines claim this exemption and there is speculation that some may not be eligible for the exemption.
This bill authorizes the commission to review a certification made by a person who transports natural or synthetic gas and, after notice and opportunity for a hearing, to determine whether the person is eligible for an exemption from provisions applicable to a gas utility.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 121.005, Utilities Code, by adding Subsection (d), to authorize the Railroad Commission of Texas to review a certification made by a person under Subsection (a) (relating to a person who transports natural or synthetic gas solely to certain areas or persons) and, after notice and opportunity for a hearing, determine whether the person is eligible for an exemption under that subsection.
SECTION 2. Effective date: September 1, 2009.