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A BILL TO BE ENTITLED
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AN ACT
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relating to exempting electric cooperatives and their subsidiaries |
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that store natural gas underground and offer or provide gas storage |
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services to the public for hire from status as a gas utility, public |
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utility, common carrier, or common purchaser. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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, or a subsidiary of |
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an electric cooperative, excluded from being considered a gas |
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utility under Section 121.008. |
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SECTION 2. 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. UNDERGROUND STORAGE FACILITY OWNED OR |
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OPERATED BY ELECTRIC COOPERATIVE OR SUBSIDIARY EXCLUDED. The act |
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of offering or providing gas storage services to the public for hire |
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does not make an electric cooperative organized under Chapter 161, |
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or a subsidiary of the electric cooperative, a gas utility or make |
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the electric cooperative or the subsidiary subject to the |
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jurisdiction, control, and regulation of the railroad commission as |
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a gas utility. |
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SECTION 3. Section 111.001(2), Natural Resources Code, is |
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amended by adding Subdivision (3) to read as follows: |
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(3) "Storage facility" does not include an underground gas |
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storage facility that offers or provides gas storage services to |
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the public for hire, if the facility is owned or operated by an |
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electric cooperative organized under Chapter 161, or a subsidiary |
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of the electric cooperative. |
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SECTION 4. Subchapter A, Chapter 111, Natural Resources |
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Code, is amended by adding Section 111.005 to read as follows: |
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Sec. 111.005. NONAPPLICABILITY TO ELECTRIC COOPERATIVES |
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AND SUBSIDIARIES. The act of offering or providing gas storage |
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services to the public for hire does not: |
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(1) make an electric cooperative organized under |
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Chapter 161, or a subsidiary of the electric cooperative, a public |
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utility, common carrier, or common purchaser, as those terms are |
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defined by this chapter; |
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(2) make an electric cooperative or a subsidiary of |
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the electric cooperative described by Subdivision (1) a common |
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carrier under the common law; or |
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(3) subject an electric cooperative or a subsidiary of |
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the electric cooperative described by Subdivision (1) to the |
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provisions of this chapter. |
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SECTION 5. 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. |