Bill Text: TX HB2262 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to gas utility alternative gas expenses and infrastructure investments.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2023-05-21 - Not again placed on intent calendar [HB2262 Detail]
Download: Texas-2023-HB2262-Comm_Sub.html
| By: Darby (Senate Sponsor - Hughes) | H.B. No. 2262 | |
| (In the Senate - Received from the House May 8, 2023; | ||
| May 9, 2023, read first time and referred to Committee on Natural | ||
| Resources & Economic Development; May 18, 2023, reported favorably | ||
| by the following vote: Yeas 7, Nays 1; May 18, 2023, sent to | ||
| printer.) | ||
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| relating to gas utility alternative gas expenses and infrastructure | ||
| investments. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 104, Utilities Code, is | ||
| amended by adding Section 104.061 to read as follows: | ||
| Sec. 104.061. CONSIDERATION OF ALTERNATIVE GAS EXPENSES AND | ||
| INFRASTRUCTURE INVESTMENTS. (a) In this section, "alternative | ||
| gas" means: | ||
| (1) any pipeline-compatible gaseous fuel that is | ||
| derived from: | ||
| (A) the anaerobic digestion of biomass, | ||
| gasification of biomass, or another biomass conversion process; | ||
| (B) agricultural waste; or | ||
| (C) landfill gas; | ||
| (2) hydrogen produced using: | ||
| (A) carbon capture and storage; | ||
| (B) renewable energy to break down water into | ||
| hydrogen and oxygen through electrolysis; or | ||
| (C) pyrolysis to break down methane into hydrogen | ||
| and solid carbon; | ||
| (3) gas certified in a manner approved by the railroad | ||
| commission under Subsection (c); or | ||
| (4) another gaseous fuel designated by the railroad | ||
| commission under Subsection (c). | ||
| (b) This section applies only to a gas utility that owns or | ||
| operates for compensation in this state equipment or facilities to | ||
| distribute combustible hydrocarbon natural gas or synthetic | ||
| natural gas under rates, terms, and conditions approved by a | ||
| regulatory authority. | ||
| (c) The railroad commission by rule may: | ||
| (1) approve a certification process used by an | ||
| organization to certify that a type of gas has a lower carbon | ||
| content than natural gas; and | ||
| (2) designate a gaseous fuel as an alternative gas if | ||
| the fuel has a lower carbon content than natural gas. | ||
| (d) A gas utility may include one or more forms of purchased | ||
| alternative gas in its gas supply portfolio used for the provision | ||
| of gas service to the utility's customers. When establishing a gas | ||
| utility's rates, the regulatory authority shall allow a gas utility | ||
| to recover as a cost or expense expenditures associated with | ||
| purchasing the alternative gas if the expenditures were prudent, | ||
| reasonable, and necessary. | ||
| (e) A gas utility may invest in infrastructure to acquire, | ||
| interconnect with, or produce an alternative gas supply for its | ||
| customers. When establishing a gas utility's rates, the regulatory | ||
| authority shall allow a gas utility to include in its invested | ||
| capital prudent, reasonable, and necessary alternative gas supply | ||
| infrastructure costs while the infrastructure is used and useful in | ||
| providing service to the utility's customers. | ||
| SECTION 2. This Act takes effect September 1, 2023. | ||
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