HBA-SEB C.S.H.B. 2308 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2308
By: Hawley
Energy Resources
4/15/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, a gas utility or municipally owned utility system is required to
transport natural gas produced on state lands to a state agency if pipeline
capacity is available.  C.S.H.B. 2308 prohibits such a utility from
refusing to provide this service to school districts.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter F, Chapter 104, Utilities Code, by adding
Section 104.2545, as follows: 

Sec. 104.2545.  REQUIRED SERVICE TO SCHOOL DISTRICT.  (a)  Defines "service
site" to mean facilities or buildings operated by a school district in a
contiguous geographic area. 

(b)  Prohibits a gas utility or municipally owned utility from refusing to
provide to a school district specific services at a service site unless the
utility is prohibited by other law from providing the service and if
sufficient pipeline capacity is available on an existing facility of the
utility.  Establishes that those services are the sale of gas, the
transportation of an annual average of 10 million British thermal units or
more each day that is taken as a royalty in kind and owned by the state or
managed by a marketing program operated by the state or a state agency, or
a combination of those services. 

(c)  Requires a utility to provide gas service at rates provided by a
written contract negotiated between the utility and the state or a state
agency.  Authorizes the Railroad Commission of Texas to determine a fair
and reasonable rate for the school district as a rate for a separate class
of service if no agreement on the rate is reached.    

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original by inserting entirely new text for
SECTION 1, while maintaining the theme of the original.  SECTION 1 of the
substitute amends Subchapter F, Chapter 104, Utilities Code, by adding
Section 104.2545 (Required Service to School District).  Section 104.2545
prohibits a gas utility or municipally owned utility from refusing to
provide gas service to a school district if sufficient pipeline capacity is
available, unless otherwise prohibited by law.  SECTION 1 of the original
would have amended Section 104.254, Utilities Code, to prohibit a gas
utility or municipally-owned utility from refusing to provide service to a
school district or a state agency if pipeline capacity is available on an
existing facility of the utility.