Bryant Bill Creates A Gas Watchdog With No Enforcement Power

The text as introduced · 795 words

89R2469 CS-F

By: Bryant
H.B. No. 2166

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 in the power

region served by the organization 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 shall immediately 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, 2025.