Bill Text: TX SB1049 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to gas utility alternative gas expenses and infrastructure investments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-03 - Referred to Natural Resources & Economic Development [SB1049 Detail]
Download: Texas-2023-SB1049-Introduced.html
88R7673 JXC-F | ||
By: Hughes | S.B. No. 1049 |
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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) the breakdown of methane into hydrogen and | ||
solid carbon through pyrolysis; | ||
(3) gas certified in a manner approved by the railroad | ||
commission under Subsection (b); or | ||
(4) another gaseous fuel designated by the railroad | ||
commission under Subsection (b). | ||
(b) 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. | ||
(c) 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 public. 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. | ||
(d) When reviewing a gas utility's expenses, the regulatory | ||
authority shall presume that purchases of alternative gas under | ||
Subsection (c) are prudent, reasonable, and necessary gas expenses. | ||
(e) A gas utility may invest in infrastructure to acquire, | ||
interconnect with, or produce 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 the infrastructure costs. | ||
(f) The regulatory authority shall presume that an | ||
infrastructure investment under Subsection (e) is used and useful | ||
in providing service to the public and a prudent, reasonable, and | ||
necessary investment. | ||
SECTION 2. This Act takes effect September 1, 2023. |