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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of an independent market monitor for |
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the natural gas market by the Public Utility Commission of Texas and |
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an independent organization certified for a power region. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.1515, Utilities Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) In this section, "market monitor" means the entity |
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selected under Subsection (a). |
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SECTION 2. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1517 to read as follows: |
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Sec. 39.1517. NATURAL GAS MARKET MONITOR. (a) An |
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independent organization certified under Section 39.151 shall |
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contract with an entity selected by the commission to act as an |
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independent market monitor for the natural gas market to: |
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(1) detect and prevent market manipulation strategies |
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in the natural gas market to prevent the unreasonable restriction, |
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impairment, or reduction in the level of competition; and |
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(2) recommend measures to enhance the efficiency of |
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the natural gas market. |
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(b) In this section: |
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(1) "Market monitor" means the entity selected under |
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Subsection (a). |
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(2) "Natural gas market" means transactions made by a |
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gas supply chain facility described by Section 86.044(b), Natural |
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Resources Code, or a gas pipeline facility described by Section |
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121.2015(a)(3) to supply natural gas for the electricity supply |
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chain, as mapped under Section 38.203. |
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(c) The independent organization shall provide to the |
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personnel of the market monitor: |
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(1) support and cooperation the commission determines |
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is necessary for the market monitor to perform the market monitor's |
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functions; and |
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(2) full access to the parts of the independent |
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organization's main operations center and records that concern |
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operations, settlements, and reliability. |
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(d) The independent organization shall use money from the |
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fee authorized by Section 39.151(e) to pay for the market monitor's |
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activities. |
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(e) The commission and the Railroad Commission of Texas are |
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responsible for ensuring that the market monitor has the resources, |
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expertise, and authority necessary to monitor the natural gas |
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market in this state effectively and shall adopt rules and perform |
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oversight of the market monitor as necessary. The market monitor |
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shall operate under the supervision and oversight of the |
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commission. |
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(f) The commission and the Railroad Commission of Texas |
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retain all enforcement authority conferred under this title, Title |
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3, and the Natural Resources Code, and this section may not be |
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construed to confer enforcement authority on the market monitor or |
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to authorize the commission or the Railroad Commission of Texas to |
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delegate enforcement authority to the market monitor. The |
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commission by rule shall define: |
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(1) the market monitor's monitoring responsibilities, |
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including reporting obligations and limitations; |
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(2) the standards for funding the market monitor, |
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including staffing requirements; |
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(3) qualifications for personnel of the market |
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monitor; and |
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(4) ethical standards for the market monitor and the |
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personnel of the market monitor. |
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(g) In adopting rules governing the standards for funding |
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the market monitor, the commission shall consult with a |
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subcommittee of the independent organization's governing body to |
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receive information on how money is or should be spent for |
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monitoring functions. Rules governing ethical standards must |
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include provisions designed to ensure that the personnel of the |
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market monitor are professionally and financially independent from |
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participants in the natural gas market. The commission shall |
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develop and implement policies that clearly separate the |
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policy-making responsibilities of the commission and the |
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monitoring, analysis, and reporting responsibilities of the market |
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monitor. |
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(h) The market monitor immediately shall report directly to |
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the commission any potential market manipulations and any |
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discovered or potential violations of commission rules, protocols |
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of the independent organization, or rules of the Railroad |
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Commission of Texas. |
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(i) The market monitor shall consult with the Railroad |
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Commission of Texas to obtain necessary information for the market |
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monitor to perform the market monitor's functions. The commission |
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may enter into a memorandum of understanding with the Railroad |
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Commission of Texas to: |
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(1) ensure the market monitor has access to the |
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information needed for the market monitor to perform the market |
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monitor's functions; and |
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(2) provide oversight over the sharing of information |
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between the Railroad Commission of Texas and the market monitor. |
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(j) The personnel of the market monitor may communicate with |
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commission staff on any matter without restriction. |
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(k) The market monitor annually shall submit to the |
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independent organization, the commission, and the Railroad |
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Commission of Texas a report that identifies market flaws and |
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recommends methods to correct the flaws. The independent |
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organization, the commission, and the Railroad Commission of Texas |
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shall review the report and evaluate whether changes to commission |
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rules, protocols of the independent organization, or rules of the |
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Railroad Commission of Texas should be made. |
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SECTION 3. This Act takes effect September 1, 2023. |