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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of the Railroad Commission of |
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Texas; providing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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Subchapter A, Chapter 81, Subtitle A, Title 3, Natural |
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Resources Code, is amended to read as follows: |
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Sec. 81.058. ADMINISTRATIVE PENALTY FOR CERTAIN NATURAL |
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GAS-RELATED ACTIVITIES. |
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(a) The commission, after notice and opportunity for |
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hearing, may impose an administrative penalty against a purchaser, |
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transporter, gatherer, shipper, or seller of natural gas, a person |
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described by Section 81.051(a) or 111.081(a), or any other entity |
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under the jurisdiction of the commission under this code that the |
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commission determines has: |
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(1) violated a commission rule adopting standards or a |
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code of conduct for entities in the natural gas industry |
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prohibiting unlawful discrimination; or |
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(2) unreasonably discriminated against a seller of |
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natural gas in the purchase of natural gas from the seller[.];or |
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(3) sold natural gas used in the production and |
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generation of electricity intended for sale and use on the Texas |
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electric grid at an excessive price during a declared disaster. |
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(b) The commission, after notice and opportunity for |
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hearing, may impose an administrative penalty against a purchaser, |
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transporter, or gatherer of natural gas if the commission |
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determines that the person engaged in prohibited discrimination |
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against a shipper or seller of natural gas because the shipper or |
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seller filed a formal or informal complaint with the commission |
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against the person relating to the person's purchase, |
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transportation, or gathering of the gas. |
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(c) The commission, after notice and opportunity for |
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hearing, may impose an administrative penalty against a purchaser, |
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transporter, gatherer, shipper, or seller of natural gas who is a |
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party to an informal complaint resolution proceeding and is |
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determined by the commission to have: |
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(1) failed to participate in the proceeding; or |
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(2) failed to provide information requested by a |
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mediator in the proceeding. |
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(d) An administrative penalty imposed under this section |
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may not exceed [$5,000] $250,000 a day for each violation. Each day |
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a violation continues or occurs is a separate violation for |
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purposes of imposing a penalty under this section. |
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(e) If the commission determines after notice and |
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opportunity for hearing that an entity has engaged in prohibited |
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discrimination for which a penalty may be imposed under this |
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section, the commission may issue any order necessary and |
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reasonable to prevent the discrimination from continuing. |
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(f) The remedy provided by this section is cumulative of any |
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other remedy the commission may order. |
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Sec. 81.061. AUTHORITY TO ESTABLISH MARKET-BASED RATES. |
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(a) This section does not apply to rates established under |
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Chapter 103, Utilities Code, or Subchapter C or G, Chapter 104, of |
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that code. |
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(b) The commission may use a cost-of-service method or a |
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market-based rate method in setting a rate in a formal rate |
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proceeding. If the rate case is the result of a complaint filed for |
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declared disaster excessive pricing, the commission must use an |
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average market price of the three months preceding the declared |
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disaster. |
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(c) On the filing of a complaint by a shipper or seller of |
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natural gas, the commission may set a transportation or gathering |
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rate in a formal rate proceeding if the commission determines that |
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the rate is necessary to remedy unreasonable discrimination in the |
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provision of transportation or gathering services. The commission |
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may set a rate regardless of whether the transporter or gatherer is |
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classified as a utility by other law. |
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(d) On the filing of a complaint of excessive price by a |
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power generation company acting as a purchaser of natural gas and |
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registered with the Texas Public Utility Commission under |
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Substantive Rule 25.5 (54), the commission shall set a rate in a |
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formal rate proceeding if the commission determines that the rate |
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is necessary to remedy excessive pricing during a declared |
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disaster period or shortage. |
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SECTION 2. 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, 2021. |