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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 Railroad Commission of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 81, Natural Resources |
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Code, is amended by adding Section 81.0615 to read as follows: |
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Sec. 81.0615. NATURAL GAS INDEPENDENT MARKET MONITOR. (a) |
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The commission shall contract with an entity to act as an |
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independent market monitor to detect and prevent market |
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manipulation strategies in and recommend measures to enhance the |
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efficiency of the natural gas market. |
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(b) The commission shall provide to the personnel of the |
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market monitor support and cooperation the commission determines is |
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necessary for the market monitor to perform the market monitor's |
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functions. |
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(c) A person who produces, processes, or transports natural |
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gas shall cooperate with the personnel of the market monitor in a |
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manner the commission determines is necessary for the market |
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monitor to perform the market monitor's functions. |
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(d) The commission is responsible for ensuring that the |
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market monitor has the resources, expertise, and authority |
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necessary to monitor the natural gas market in this state |
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effectively and shall adopt rules and perform oversight of the |
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market monitor as necessary. The market monitor shall operate |
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under the supervision and oversight of the commission. |
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(e) The commission retains all enforcement authority |
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conferred under this title and Title 3, Utilities Code, and this |
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section may not be construed to confer enforcement authority on the |
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market monitor or to authorize the commission to delegate the |
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commission's 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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(f) In adopting rules governing the standards for funding |
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the market monitor, the commission shall ensure that rules |
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governing ethical standards include provisions designed to ensure |
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that the personnel of the market monitor are professionally and |
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financially independent from participants in the natural gas |
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market. The commission shall develop and implement policies that |
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clearly separate the policy-making responsibilities of the |
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commission and the monitoring, analysis, and reporting |
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responsibilities of the market monitor. The commission shall |
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establish an advisory committee that includes producers, |
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processors, and transporters of natural gas and consult with the |
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advisory committee on how money is or should be spent for monitoring |
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functions. |
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(g) 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. |
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(h) The personnel of the market monitor may communicate with |
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commission staff on any matter without restriction. |
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(i) The market monitor annually shall submit to the |
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commission a report that identifies market flaws and recommends |
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methods to correct the flaws. The commission shall review the |
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report and evaluate whether changes to rules of the commission |
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should be made. |
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SECTION 2. This Act takes effect September 1, 2023. |