By: Seliger, Duncan	S.B. No. 312
	(Keffer)

	A BILL TO BE ENTITLED
	AN ACT
	relating to the exemption of certain electric cooperatives from
	certain regulations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subdivision (7), Section 101.003, Utilities
	Code, is amended to read as follows:
	(7)  "Gas utility" includes a person or river authority
	that owns or operates for compensation in this state equipment or
	facilities to transmit or distribute combustible hydrocarbon
	natural gas or synthetic natural gas for sale or resale in a manner
	not subject to the jurisdiction of the Federal Energy Regulatory
	Commission under the Natural Gas Act (15 U.S.C. Section 717 et
	seq.).  The term includes a lessee, trustee, or receiver of a gas
	utility.  The term does not include:
	(A)  a municipal corporation;
	(B)  a person or river authority to the extent the
	person or river authority:
	(i)  produces, gathers, transports, or sells
	natural gas or synthetic natural gas under Section 121.004 or
	121.005;
	(ii)  distributes or sells liquefied
	petroleum gas; or
	(iii)  transports, delivers, or sells
	natural gas for fuel for irrigation wells or any other direct
	agricultural use;
	(C)  a person to the extent the person:
	(i)  sells natural gas for use as vehicle
	fuel;
	(ii)  sells natural gas to a person who later
	sells the natural gas for use as vehicle fuel; or
	(iii)  owns or operates equipment or
	facilities to sell or transport natural gas for ultimate use as
	vehicle fuel;
	(D)  a person not otherwise a gas utility who
	furnishes gas or gas service only to itself, its employees, or its
	tenants as an incident of employment or tenancy, if the gas or gas
	service is not resold to or used by others; [or]
	(E)  a person excluded from being considered a gas
	utility under Section 121.007; or
	(F)  an electric cooperative, as that term is
	defined by Section 11.003, or its subsidiary, that is excluded from
	regulation as a gas utility by Section 121.008.
	SECTION 2.  Subchapter A, Chapter 121, Utilities Code, is
	amended by adding Section 121.008 to read as follows:
	Sec. 121.008.  CERTAIN STORAGE FACILITIES OWNED BY ELECTRIC
	COOPERATIVES EXCLUDED. An electric cooperative, as that term is
	defined by Section 11.003, or its subsidiary, that sells
	electricity at wholesale is not a gas utility or subject to
	regulation as a gas utility solely because it provides gas storage
	services for hire if the gas storage facility is predominantly
	operated to support the integration of renewable resources.  Such a
	gas storage facility may not have a working gas capacity of greater
	than five billion cubic feet.
	SECTION 3.  Subdivision (2), Section 111.001, Natural
	Resources Code, is amended to read as follows:
	(2)  "Public utility" means a person, association of
	persons, or corporation that owns, operates, or manages crude
	petroleum storage tanks or storage facilities for the public for
	hire, either in connection with a pipeline, pipelines, or
	otherwise. The term does not include an electric cooperative, as
	that term is defined by Section 11.003, Utilities Code, or its
	subsidiary, that sells electricity at wholesale and that owns or
	operates an underground storage facility and provides gas storage
	services to the public for hire if the gas storage facility is
	predominantly operated to support the integration of renewable
	resources.  Such a gas storage facility may not have a working gas
	capacity of greater than five billion cubic feet.
	SECTION 4.  Section 111.003, Natural Resources Code, is
	amended by adding Subsection (c) to read as follows:
	(c)  The provisions of this chapter, and any common law
	requirements or limitations applicable to a common carrier, do not
	apply to an underground storage facility owned or operated by an
	electric cooperative, as that term is defined by Section 11.003,
	Utilities Code, or its subsidiary, that sells electricity at
	wholesale and offers or provides gas storage services to the public
	for hire if the gas storage facility is predominantly operated to
	support the integration of renewable resources.  Such a gas storage
	facility may not have a working gas capacity of greater than five
	billion cubic feet.
	SECTION 5.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2011.