Today, the Senate debated the committee substitute to SB 655 by Sen. Glenn Hegar, the Sunset bill for the Railroad Commission of Texas. The commission serves as the state’s primary regulator of the oil and gas industry.
Key components of the bill:
- C.S.S.B. 655 creates the Texas Oil and Gas Commission governed by a single, elected commissioner. The bill abolishes the railroad commission without requiring a constitutional amendment; phases in the elected Texas Oil and Gas Commissioner, who is initially appointed by the governor until the general election in 2012; limits when the commissioner and anyone running for that office can accept campaign contributions to the year before the election and up to 30 days before the next legislative session; and continues the commission for the standard 12-year timeframe.
- C.S.S.B. 655 requires that the commission’s oil and gas program be self-supporting by authorizing the agency to levy surcharges on permits and licenses, annually saving the state more than $25 million in general revenue. The bill also expands the oil field cleanup fund to cover both regulation and cleanup; maintains a focus on the ongoing importance of meeting performance goals for cleanup, but abolishes the oil field cleanup advisory committee as its purpose has been accomplished; and redirects fines and penalties collected to general revenue.
- C.S.S.B. 655 also strengthens the commission’s enforcement process to prevent future threats to environment and public safety; transfers enforcement and gas utility contested case hearings to the State Office of Administrative Hearings (SOAH); and eliminates the commission’s propane marketing program.
- C.S.S.B. 655 amends current law relating to the abolition of the Railroad Commission of Texas, the creation of the Texas Oil and Gas Commission, and the transfer of the powers and duties of the railroad commission to the oil and gas commission.
Although several amendments to the legislation were offered, Hegar’s amendment was the only one adopted.
CSSB 655, as amended, passed out of the Senate with 29 ayes and 2 nays.