Rosenthal Bill Lifts Gas Weather Penalties Up To $1M

The text as introduced · 625 words

89R3761 ANG-D

By: Rosenthal
H.B. No. 575

A BILL TO BE ENTITLED

AN ACT

relating to preparation for and response to weather emergencies

that affect certain natural gas facilities; increasing the amount

of civil and administrative penalties.

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

SECTION 1. Section 86.044(c), Natural Resources Code, is

amended to read as follows:

(c) The commission by rule shall require a gas supply chain

facility operator to implement measures to prepare to operate

during a weather emergency. In adopting the rules, the commission

shall take into consideration weather predictions produced by the

office of the state climatologist. The rules must include a process

that allows the commission to require a gas supply chain facility

operator to implement measures recommended by the commission in a

weather emergency preparedness report under Section 186.008(b)(4),

Utilities Code.

SECTION 2. Section 86.222(d), Natural Resources Code, is

amended to read as follows:

(d) The [ classification ] system established under

Subsection (c) must [ shall ] provide that a violation is punishable

by a penalty of, after taking into account the factors described by

Subsection (c):

(1) at least $100 and not more than $1,000 for the

first violation;

(2) at least $1,000 and not more than $50,000 for the

second violation; and

(3) at least $50,000 and not more than $1,000,000 for

the third violation and each subsequent violation [ a penalty in an

amount that exceeds $5,000 may be recovered only if the violation is

included in the highest class of violations in the classification

system ].

SECTION 3. Section 121.2015(a-1), Utilities Code, is

amended to read as follows:

(a-1) In adopting rules under Subsection (a)(3), the

railroad commission shall take into consideration weather

predictions produced by the office of the state climatologist. The

rules must include a process that allows the railroad commission to

require a gas pipeline facility operator to implement measures

recommended by the railroad commission in a weather emergency

preparedness report under Section 186.008(b)(4).

SECTION 4. Section 121.206(e), Utilities Code, is amended

to read as follows:

(e) The guidelines adopted under Subsection (d) must

provide that a violation of a rule adopted under Section

121.2015(a)(3) is punishable by a penalty of, after taking into

account the factors described by Subsection (d):

(1) at least $100 and not more than $1,000 for the

first violation;

(2) at least $1,000 and not more than $50,000 for the

second violation; and

(3) at least $50,000 and not more than $1,000,000 for

the third violation and each subsequent violation [ in an amount

that exceeds $5,000 for a violation of a rule adopted under Section

121.2015(a)(3) may be assessed only if circumstances justify the

enhancement of the penalty ].

SECTION 5. The changes in law made by this Act to Section

86.222, Natural Resources Code, and Section 121.206, Utilities

Code, as amended by this Act, apply only to a violation that occurs

on or after the effective date of the rules adopted by the Railroad

Commission of Texas under Section 86.222, Natural Resources Code,

or Section 121.206, Utilities Code, as amended by this Act. A

violation that occurs before the effective date of the rules

adopted by the Railroad Commission of Texas under Section 86.222,

Natural Resources Code, or Section 121.206, Utilities Code, as

amended by this Act, is governed by the law in effect on the date the

violation occurred, and that law is continued in effect for that

purpose.

SECTION 6. 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, 2025.