H.B. No. 4042 amends the Utilities Code to clarify the applicability of safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution pipelines. The bill allows the commission to adopt an annual fee for operators of gas distribution pipelines and their facilities, as well as for gas master metered systems. Specifically, it sets the maximum fee at one dollar for each service line reported by gas distribution systems and up to $100 for each master metered system. Additionally, operators are required to recover these fees through surcharges on existing rates, which will not be included in the revenue calculations for municipal franchise fees or subject to sales and use taxes.

The bill also revises the definition of "distribution gas pipeline facility" to remove the term "natural" from the description, thereby broadening the scope of the definition. This change is reflected in multiple sections of the Utilities Code, ensuring consistency in the language used throughout the legislation. H.B. No. 4042 is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 121.211, Utilities Code 121.213, Utilities Code 121.214 (Utilities Code 121)
House Committee Report: Utilities Code 121.211, Utilities Code 121.213, Utilities Code 121.214 (Utilities Code 121)
Engrossed: Utilities Code 121.211, Utilities Code 121.213, Utilities Code 121.214 (Utilities Code 121)
Senate Committee Report: Utilities Code 121.211, Utilities Code 121.213, Utilities Code 121.214 (Utilities Code 121)
Enrolled: Utilities Code 121.211, Utilities Code 121.213, Utilities Code 121.214 (Utilities Code 121)