88(R) SB 1049 - Introduced version - Bill Text

	88R7673 JXC-F
	By:  Hughes	S.B.  No.  1049

	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)    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.