BILL ANALYSIS

Senate Research Center	H.B. 4042
89R3842 CS-F	By: Morales, Eddie (Zaffirini)
	Natural Resources
	5/20/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Railroad Commission of Texas (RRC) oversees the safety of gas pipeline systems and collects annual safety and regulatory fees from operators of these systems. The relevant statutory sections dealing with pipeline safety, however, refer only to "natural gas" distribution pipelines and pipeline facilities in key definitions but do not include propane distribution systems.

H.B. 4042 seeks to address this issue by removing the term "natural" from various definitions and provisions to ensure that propane gas distribution systems fall under the RRC's pipeline safety oversight and fee collection authority.

H.B. 4042 amends current law relating to the applicability of certain safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution pipelines.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Railroad Commission of Texas is modified in SECTION 1 (Sections 121.211, Utilities Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 121.211(a), (d), (e), and (g), Utilities Code, as follows:

(a)� Authorizes the Railroad Commission of Texas by rule to adopt a fee to be assessed annually against operators of gas, rather than natural gas, distribution pipelines and their pipeline facilities and gas master metered pipelines and their pipeline facilities subject to Title 3 (Gas Regulation). Makes a conforming change.

(d)- (g) Makes conforming changes to these subsections.

SECTION 2. Amends Section 121.213(a), Utilities Code, to redefine "distribution gas pipeline facility."

SECTION 3. Amends Section 121.214(a)(1), Utilities Code, to redefine "distribution gas pipeline facility."

SECTION 4. Effective date: September 1, 2025.