Curry Fuel Reserve Bill Lets 30% Leave Texas

The text as introduced · 706 words

89R10027 JON-D

By: Curry
H.B. No. 4941

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a strategic fuel reserve program

in this state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 418, Government Code, is amended by

adding Subchapter K to read as follows:

SUBCHAPTER K. STRATEGIC FUEL RESERVE PROGRAM

Sec. 418.351. DEFINITIONS. In this subchapter:

(1) "Commission" means the Railroad Commission of

Texas.

(2) "Gas" means natural gas.

(3) "Petroleum product" means any product derived by

refining petroleum and intended to produce power by burning the

product.

(4) "Program" means the strategic fuel reserve program

established under this subchapter.

Sec. 418.352. PROGRAM ESTABLISHMENT AND PURPOSE. The

commission shall establish a program for acquiring and maintaining

a strategic fuel reserve of gas and petroleum products for

distribution in this state in the event of a disaster to reduce the

impact of disruptions in supplies of the gas and petroleum products

in this state.

Sec. 418.353. GUIDELINE FOR PROGRAM ESTABLISHMENT AND

OPERATION. The program must be established and operated in a manner

that substantially reduces this state's vulnerability to an energy

emergency while considering the energy needs and infrastructure of

each region of this state.

Sec. 418.354. POWERS; EXCEPTION. (a) Except as provided by

Subsection (b), the commission may purchase, sell, and lease

property, including gas and petroleum products, and take any other

action reasonable and necessary to establish and operate the

program.

(b) The commission may not distribute gas or petroleum

products maintained as part of the strategic fuel reserve unless

the governor declares a state of disaster and directs the

distribution or determines that a disaster has occurred in another

state and that state is in need of gas or petroleum products.

(c) The governor may direct the distribution of not more

than 30 percent of the gas or petroleum products in the strategic

fuel reserve to another state under Subsection (b).

(d) An underground or aboveground storage tank operated

under the program is subject to Subchapter I, Chapter 26, Water

Code.

(e) At the request of the commission, the General Land

Office shall provide the commission with assistance in establishing

the program, including by acquiring or researching the title to any

real property, mineral right, or other ownership interest.

(f) The commission may enter into an agreement with a local

government or other person for the purpose of facilitating the

operation of the program that includes a provision concerning the

collection of revenue derived from the operation of the program.

Sec. 418.355. MINIMUM REQUIREMENTS. The strategic fuel

reserve established under this subchapter must have the capacity to

hold at least the amount of gas and petroleum products needed to

provide fuel and power for this state for a period of at least 30

days in the event of a disaster that would likely disrupt the

regular distribution of gas and petroleum products throughout this

state. The commission shall maintain at least that amount of gas

and petroleum products in the reserve except when gas and petroleum

products are being distributed in response to a disaster and for a

reasonable time needed to replenish the reserve after a disaster.

Sec. 418.356. RULEMAKING. The commission and the Texas

Commission on Environmental Quality, in consultation with the

governor, shall adopt rules as necessary to implement this

subchapter, including rules governing the distribution and storage

of gas or petroleum products maintained as part of the strategic

fuel reserve in the event of a disaster.

SECTION 2. (a) As soon as practicable after the effective

date of this Act, the Railroad Commission of Texas and the Texas

Commission on Environmental Quality shall adopt any rules necessary

to implement Subchapter K, Chapter 418, Government Code, as added

by this Act.

(b) After the strategic fuel reserve program described by

Section 418.352, Government Code, as added by this Act, is

established, the Texas Division of Emergency Management shall

revise the state emergency management plan described by Section

418.042, Government Code, and the state emergency management plan

annex described by Section 418.0425, Government Code, to account

for the establishment and operation of a strategic fuel reserve

program under Section 1 of this Act.

SECTION 3. This Act takes effect September 1, 2025.