SEB C.S.S.B. 1797 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1797 By: Duncan Energy Resources 4/26/1999 Engrossed 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. S.B. 1797 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.