Bill Text: TX HB4706 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the establishment of an independent market monitor for the natural gas market by the Public Utility Commission of Texas and an independent organization certified for a power region.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-03-22 - Referred to State Affairs [HB4706 Detail]

Download: Texas-2023-HB4706-Introduced.html
  88R13978 ANG-F
 
  By: Bryant H.B. No. 4706
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of an independent market monitor for
  the natural gas market by the Public Utility Commission of Texas and
  an independent organization certified for a power region.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.1515, Utilities Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  In this section, "market monitor" means the entity
  selected under Subsection (a).
         SECTION 2.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Section 39.1517 to read as follows:
         Sec. 39.1517.  NATURAL GAS MARKET MONITOR. (a)  An
  independent organization certified under Section 39.151 shall
  contract with an entity selected by the commission to act as an
  independent market monitor for the natural gas market to:
               (1)  detect and prevent market manipulation strategies
  in the natural gas market to prevent the unreasonable restriction,
  impairment, or reduction in the level of competition; and
               (2)  recommend measures to enhance the efficiency of
  the natural gas market.
         (b)  In this section:
               (1)  "Market monitor" means the entity selected under
  Subsection (a).
               (2)  "Natural gas market" means transactions made by a
  gas supply chain facility described by Section 86.044(b), Natural
  Resources Code, or a gas pipeline facility described by Section
  121.2015(a)(3) to supply natural gas for the electricity supply
  chain, as mapped under Section 38.203.
         (c)  The independent organization shall provide to the
  personnel of the market monitor:
               (1)  support and cooperation the commission determines
  is necessary for the market monitor to perform the market monitor's
  functions; and
               (2)  full access to the parts of the independent
  organization's main operations center and records that concern
  operations, settlements, and reliability.
         (d)  The independent organization shall use money from the
  fee authorized by Section 39.151(e) to pay for the market monitor's
  activities.
         (e)  The commission and the Railroad Commission of Texas are
  responsible for ensuring that the market monitor has the resources,
  expertise, and authority necessary to monitor the natural gas
  market in this state effectively and shall adopt rules and perform
  oversight of the market monitor as necessary. The market monitor
  shall operate under the supervision and oversight of the
  commission.
         (f)  The commission and the Railroad Commission of Texas
  retain all enforcement authority conferred under this title, Title
  3, and the Natural Resources Code, and this section may not be
  construed to confer enforcement authority on the market monitor or
  to authorize the commission or the Railroad Commission of Texas to
  delegate enforcement authority to the market monitor.  The
  commission by rule shall define:
               (1)  the market monitor's monitoring responsibilities,
  including reporting obligations and limitations;
               (2)  the standards for funding the market monitor,
  including staffing requirements;
               (3)  qualifications for personnel of the market
  monitor; and
               (4)  ethical standards for the market monitor and the
  personnel of the market monitor.
         (g)  In adopting rules governing the standards for funding
  the market monitor, the commission shall consult with a
  subcommittee of the independent organization's governing body to
  receive information on how money is or should be spent for
  monitoring functions.  Rules governing ethical standards must
  include provisions designed to ensure that the personnel of the
  market monitor are professionally and financially independent from
  participants in the natural gas market. The commission shall
  develop and implement policies that clearly separate the
  policy-making responsibilities of the commission and the
  monitoring, analysis, and reporting responsibilities of the market
  monitor.
         (h)  The market monitor immediately shall report directly to
  the commission any potential market manipulations and any
  discovered or potential violations of commission rules, protocols
  of the independent organization, or rules of the Railroad
  Commission of Texas.
         (i)  The market monitor shall consult with the Railroad
  Commission of Texas to obtain necessary information for the market
  monitor to perform the market monitor's functions.  The commission
  may enter into a memorandum of understanding with the Railroad
  Commission of Texas to:
               (1)  ensure the market monitor has access to the
  information needed for the market monitor to perform the market
  monitor's functions; and
               (2)  provide oversight over the sharing of information
  between the Railroad Commission of Texas and the market monitor.
         (j)  The personnel of the market monitor may communicate with
  commission staff on any matter without restriction.
         (k)  The market monitor annually shall submit to the
  independent organization, the commission, and the Railroad
  Commission of Texas a report that identifies market flaws and
  recommends methods to correct the flaws. The independent
  organization, the commission, and the Railroad Commission of Texas
  shall review the report and evaluate whether changes to commission
  rules, protocols of the independent organization, or rules of the
  Railroad Commission of Texas should be made.
         SECTION 3.  This Act takes effect September 1, 2023.
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