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AN ACT
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relating to gas utilities and gas storage facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 121.001(a), Utilities Code, is amended |
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to read as follows: |
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(a) In this chapter, "gas utility" means a person who owns, |
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manages, operates, leases, or controls in this state property or |
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equipment or a pipeline, plant, facility, franchise, license, or |
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permit for a business that: |
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(1) transports, conveys, distributes, or delivers |
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natural gas: |
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(A) for public use or service for compensation; |
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(B) for sale to municipalities or persons engaged |
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in distributing or selling natural gas to the public, in a situation |
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described by Subdivision (3); |
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(C) for sale or delivery to a person operating |
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under a franchise or contract with a political subdivision of this |
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state; or |
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(D) for sale or delivery to the public for |
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domestic or other use; |
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(2) owns, operates, or manages a pipeline: |
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(A) that is for transporting or carrying natural |
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gas, whether for public hire or not; and |
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(B) for which the right-of-way has been or is |
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hereafter acquired by exercising the right of eminent domain, or by |
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lawfully representing to a property owner that the person has the |
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right to acquire right-of-way by the use of eminent domain; or |
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(3) produces or purchases natural gas and transports |
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or causes the transportation of natural gas by a pipeline to or near |
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the limits of a municipality in which the gas is received and |
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distributed or sold to the public by another gas utility or by the |
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municipality in a situation in which the business is the only or |
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practically the only agency of supply of natural gas to the gas |
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utility or municipality. |
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SECTION 2. Section 181.021(2), Utilities Code, is amended |
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to read as follows: |
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(2) "Gas utility" means a person, firm, or corporation |
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subject to the jurisdiction of the Railroad Commission of Texas, or |
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a municipality, engaged in the business of transporting or |
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distributing gas [for public consumption]. |
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SECTION 3. Section 101.003(7), Utilities Code, is amended |
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to read as follows: |
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(7) "Gas utility" includes a person or river authority |
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that owns or operates for compensation in this state equipment or |
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facilities to transmit or distribute combustible hydrocarbon |
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natural gas or synthetic natural gas for sale or resale in a manner |
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not subject to the jurisdiction of the Federal Energy Regulatory |
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Commission under the Natural Gas Act (15 U.S.C. Section 717 et |
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seq.). The term includes a lessee, trustee, or receiver of a gas |
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utility. The term does not include: |
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(A) a municipal corporation; |
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(B) a person or river authority to the extent the |
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person or river authority: |
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(i) produces, gathers, transports, or sells |
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natural gas or synthetic natural gas under Section 121.004 or |
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121.005; |
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(ii) distributes or sells liquefied |
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petroleum gas; or |
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(iii) transports, delivers, or sells |
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natural gas for fuel for irrigation wells or any other direct |
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agricultural use; |
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(C) a person to the extent the person: |
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(i) sells natural gas for use as vehicle |
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fuel; |
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(ii) sells natural gas to a person who later |
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sells the natural gas for use as vehicle fuel; or |
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(iii) owns or operates equipment or |
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facilities to sell or transport natural gas for ultimate use as |
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vehicle fuel; |
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(D) a person not otherwise a gas utility who |
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furnishes gas or gas service only to itself, its employees, or its |
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tenants as an incident of employment or tenancy, if the gas or gas |
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service is not resold to or used by others; [or] |
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(E) a person excluded from being considered a gas |
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utility under Section 121.007; or |
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(F) an electric cooperative, as that term is |
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defined by Section 11.003, or its subsidiary, that is excluded from |
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regulation as a gas utility by Section 121.008. |
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SECTION 4. Subchapter A, Chapter 121, Utilities Code, is |
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amended by adding Section 121.008 to read as follows: |
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Sec. 121.008. CERTAIN STORAGE FACILITIES OWNED BY ELECTRIC |
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COOPERATIVES EXCLUDED. An electric cooperative, as that term is |
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defined by Section 11.003, or its subsidiary, that sells |
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electricity at wholesale is not a gas utility or subject to |
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regulation as a gas utility solely because it provides gas storage |
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services for hire if the gas storage facility is predominantly |
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operated to support the integration of renewable resources. Such a |
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gas storage facility shall not have a working gas capacity of |
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greater than five billion cubic feet. |
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SECTION 5. Section 111.001(2), Natural Resources Code, is |
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amended to read as follows: |
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(2) "Public utility" means a person, association of |
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persons, or corporation that owns, operates, or manages crude |
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petroleum storage tanks or storage facilities for the public for |
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hire, either in connection with a pipeline, pipelines, or |
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otherwise. The term does not include an electric cooperative, as |
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that term is defined by Section 11.003, Utilities Code, or its |
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subsidiary, that sells electricity at wholesale and that owns or |
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operates an underground storage facility and provides gas storage |
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services to the public for hire if the gas storage facility is |
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predominantly operated to support the integration of renewable |
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resources. Such a gas storage facility shall not have a working gas |
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capacity of greater than five billion cubic feet. |
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SECTION 6. Section 111.003, Natural Resources Code, is |
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amended by adding Subsection (c) to read as follows: |
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(c) The provisions of this chapter, and any common law |
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requirements or limitations applicable to a common carrier, do not |
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apply to an underground storage facility owned or operated by an |
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electric cooperative, as that term is defined by Section 11.003, |
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Utilities Code, or its subsidiary, that sells electricity at |
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wholesale and offers or provides gas storage services to the public |
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for hire if the gas storage facility is predominately operated to |
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support the integration of renewable resources. Such a gas storage |
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facility shall not have a working gas capacity of greater than five |
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billion cubic feet. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3346 was passed by the House on April |
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30, 2009, by the following vote: Yeas 144, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3346 on May 25, 2009, by the following vote: Yeas 139, Nays 0, |
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3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3346 was passed by the Senate, with |
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amendments, on May 21, 2009, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |