Our rundown outlines the main bills that affect(ed) oil and gas in Texas and their status moving forward.
Railroad Commission of Texas Sunset
HB 1675 Bonnen, Dennis(R) Nichols, Robert(R)
Relating to governmental entities subject to the sunset review process.
Sunset Safety Net Bill.
This is the so-called “Safety Net” bill that provides for the continued existence of certain state agencies whose sunset legislation failed to pass but whose continued existence is deemed necessary.
Extends the existence of the Railroad Commission of Texas [“RRC”] until September 1, 2017.
During the next review of the RRC, provides that the Sunset Advisory Commission [“SAC”] may include any recommendations that it considers appropriate. Specifically provides that the review must include: an examination of alternative organizational structures for the RRC; methods for performing the commission’s responsibilities that would enable the efficient and effective accomplishment of the RRC’s functions including an assessment of existing state agencies that would be able to perform the commission’s functions; an examination of methods to increase the public’s role in decisions of the RRC that relate to the effect of the growth of resource extraction. Allows SAC to contract for assistance in performing the review, including assistance in evaluating, auditing, and forensic auditing. Requires the RRC to pay the costs incurred by the Sunset Advisory Commission in performing a review of the commission.
SB 219 Huffman, Joan(R) Bonnen, Dennis(R)
Relating to ethics of public servants, including the functions and duties of the Texas Ethics Commission.
Ethics Commission Sunset Bill.
Among other things, provides that if a railroad commissioner announces the person’s candidacy, or in fact becomes a candidate, for any elective office other than that of railroad commissioner, that announcement or candidacy constitutes an automatic resignation of the office of railroad commissioner.
Endangered Species Act Habitat Conservation
HB 3509 Bonnen (R) Seliger (R)
In the next five years there are more than 100 species that Texas will have to evaluate and develop conservation plans for in order to prevent an “endangered” listing by U.S. Fish and Wildlife (USFW). There are multiple species in every county in Texas, and some counties have as many as 29 species. Each species listing has the potential to prohibit economic activity for a period of 2-5 years costing billions of dollars. The process of determining whether or not to list a species should be based on a full evaluation of the relevant science, economic considerations, national security, and a balancing of other factors consistent with the act. HB 3509 lays the framework for stakeholder participation.
HB 3509 provides for a coordinated state response in dealing with these potential listings. The legislation expands the existing Task Force on Economic Growth and Endangered Species to include the Agriculture Commissioner, the Land Commissioner, the chair of the Railroad Commission, the Comptroller, the Executive Director of Texas Parks and Wildlife, the executive director of the state Soil and Water Conservation Board, the Texas A&M AgriLife Extension, and the executive directors of the TCEQ and TxDOT.
The Task Force shall set state policy and determine who holds each statewide permit. Local political subdivisions like LCRA and Groundwater Districts, however, could still hold the permits.
To ensure government transparency, this bill requires the agency to solicit comments from the public and interested parties before engaging in any permit and contract negotiations. A statutorily balanced advisory committee would also be required and all information would be posted on a website for whichever agency was the lead for a particular permit.
Additionally, HB 3509 establishes a Habitat Protection Research Fund so that money can be collected and research grants can be awarded to ensure that Texas has the “best scientific and commercial data available.” Landowner and other participant information is required to be kept confidential by the permit holder unless they waive their confidentiality. This legislation does not affect the Texas Conservation Plan for the Dunes Sagebrush Lizard.
EXPLORATION AND PRODUCTION
HB 341 Pitts, Jim(R) Nichols, Robert (R) Relating to the exclusion of mineral interests from the property interests that may be condemned by a regional tollway authority.
HB 724 Guillen, Ryan(D) Zaffirini, Judith(D)
Relating to the creation of a commission to study unclaimed land grant mineral proceeds.
HB 878 Crownover, Myra(R) Estes, Craig(R)
Relating to the filing with the state of well logs by operators of oil-related or gas-related wells.
HB 1025 Pitts, Jim(R) Williams, Tommy(R)
Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.
HB 2571 Keffer, Jim(R) Fraser, Troy(R)
Relating to the inspection of certain information regarding the production, transportation, sale, and marketing of oil and gas from state land.
HB 2590 Keffer, Jim(R) Eltife, Kevin(R)
Relating to the foreclosure sale of property subject to certain agreements related to the production or sale of oil or gas.
HB 2767 King, Phil(R) Estes, Craig(R)
Relating to treating and recycling for beneficial use certain liquid or semiliquid waste arising out of or incidental to drilling for or producing oil or gas.
HB 3309 Crownover, Myra(R) Estes, Craig(R)
Relating to the composition and use of money in the oil and gas regulation and cleanup fund.
SB 138 Zaffirini, Judith(D) Guillen, Ryan(D)
Relating to procedures for filing complaints with, and providing notice of certain violations to, the Texas Board of Professional Geoscientists.
SB 1240 Duncan, Robert(R) Keffer, Jim(R)
Relating to the partition of mineral interests of a charitable trust.
PIPELINES
HB 2982 Keffer, Jim(R) Duncan, Robert(R)
Relating to the power of the Railroad Commission of Texas to adopt and enforce safety standards and practices applicable to the transportation by pipeline of certain substances and to certain pipeline facilities.
SB 514 Davis, Wendy(D) Wu, Gene(R)
Relating to the installation, maintenance, operation, and relocation of saltwater pipeline facilities.
SB 900 Fraser, Troy(R) Wu, Gene(D)
Relating to the amounts of the administrative, civil, and criminal penalties for violating certain statutes under the jurisdiction of, rules or orders adopted by, or licenses, permits, or certificates issued by the Railroad Commission of Texas.
SB 901 Fraser, Troy(R) Paddie, Chris(R)
Relating to safety standards and practices applicable to the transportation by pipeline of certain substances.
TRANSPORTATION
HB 1025 Pitts, Jim(R) Williams, Tommy(R)
Relating to making supplemental appropriations and reductions in appropriations and giving direction and adjustment authority regarding appropriations.
HB 2300 Keffer, Jim(R) Uresti, Carlos(D)
Relating to the creation of County Energy Transportation Reinvestment zones.
HB 2612 Flynn, Dan(R) Deuell, Bob(R)
Relating to liability for damage to a county road.
HB 2741 Phillips, Larry(R) Nichols, Robert(R)
Relating to the regulation of motor vehicles by counties and the Texas Department of Motor Vehicles. Increases fines and penalties for offenses relating to vehicle size and weight.
SB 1747 Uresti, Carlos(D) Keffer, Jim(R)
Relating to funding and donations for transportation projects, including projects of county energy transportation reinvestment zones.
TAXATION
HB 7 Darby, Drew(R) Williams, Tommy(R)
Relating to the amounts, availability, and use of certain statutorily dedicated revenue and accounts.
HB 500 Hilderbran, Harvey(R) Hegar, Glenn(R)
Relating to the franchise tax.
HB 800 Murphy, Jim(R) Deuell, Bob(R)
Relating to a sales and use tax exemption and a franchise tax credit related to certain research and development activities.
HB 1223 Hilderbran, Harvey(R) Hegar, Glenn(R)
Relating to tax incentives with respect to certain data centers.
HB 1712 Lozano, Jose(R) Zaffirini, Judith(D)
Relating to exemptions from property taxation and sales and use taxation for certain offshore spill response and well containment property used to control pollution.
HB 1897 Eiland, Craig(D) Carona, John(R)
Relating to the exemption from ad valorem taxation of pollution control property.
HB 3390 Hilderbran, Harvey(R) Deuell, Bob(R)
Relating to the Texas Economic Development Act.
SB 559 Duncan, Robert(R) Pitts, Jim(R)
Relating to the remittance dates of certain taxes and fees and the allocation dates of certain state money.
ENVIRONMENTAL
HB 788 Smith, Wayne(R) Hinojosa, Chuy(D)
Relating to regulation of greenhouse gas emissions by the Texas Commission on Environmental Quality.
Requires the Texas Commission on Environmental Quality to establish a permitting program by adopting rules and issuing permits to regulate greenhouse gas [“GHG”] emissions to the extent that greenhouse gas emissions require authorization under federal law.
SB 1300 Eltife, Kevin(R) Lewis, Tryon(R)
Relating to environmental or health and safety audits under the Texas Environmental, Health, and Safety Audit Privilege Act
SB 1727 Deuell, Bob(R) Isaac, Jason(R)
Relating to the use of the Texas emissions reduction plan fund.
SB 1756 Uresti, Carlos(D) Villaba, Jason(R)
Relating to the expedited processing of certain applications for permits under the Clean Air Act.
CIVIL PRACTICES
HB 1325 Miller, Doug(R) Duncan, Robert(R)
Relating to the dismissal of certain actions arising from exposure to asbestos and silica.
REFINING AND MARKETING
HB 3086 Darby, Drew(R) Huffman, Joan)R
Relating to an optional exemption from the motor fuels tax for materials blended with taxable diesel. Opt-out for biodiesel motor fuels tax exemption.
Amends Chapter 162 of the Tax Code relating to an exemption from the diesel fuel tax. Section 162.204(a)(9) grants an exemption from the diesel fuel tax for the volumes of water, fuel ethanol, renewable diesel, biodiesel, or mixtures thereof that are blended together with taxable diesel fuel when the finished product sold or used is clearly identified on the retail pump, storage tank, and sales invoice as a combination of diesel fuel and water, fuel ethanol, renewable diesel, biodiesel, or mixtures thereof.
This Act provides that, instead of claiming and taking the exemption on the non-diesel fuel components in the product and meeting the product identification requirements, a person collecting and remitting the diesel fuel tax could elect to pay the tax on the entire product and the product identification requirements would not apply. Diesel fuel on which tax had been paid under the provisions of the bill is taxable and no entitlement to refund or exemption is otherwise established.
The bill would take effect September 1, 2013.
SB 603 Williams, Tommy(R) Ritter, Alan(R)
Relating to the revocation and reinstatement of an end user number for purposes of purchasing dyed diesel fuel.
Requires the Comptroller to revoke a dyed diesel purchaser’s end user number upon receiving notice that a final judgment has been entered against them for failure to pay a supplier or dealer. Upon satisfactory notice that the final judgment has been adhered to, allows the comptroller to reinstate the purchaser’s number.
SB 1225 Taylor, Larry(R) Smith, Wayne(R)
Relating to the facilities to which Chapter 68, Water Code, applies.
Amends references in Ch. 68.051 (b) of the Water Code (Ship Channel Security Districts) by changing the reference to petroleum manufacturing to petrochemical manufacturing and updating the North American Industry Classification System (NAICS) code. Also amends the NAICS codes related to all other chemical manufacturing and to transportation. These references are made with respect to the types of facilities in a ship channel security district to which the chapter applies.