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.)
Click here to see the committee vote

	A BILL TO BE ENTITLED
	AN ACT
	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.
	* * * * *

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()