By: Darby H.B. No. 2262       A BILL TO BE ENTITLED   AN ACT   relating to gas utility alternative gas expenses and infrastructure   investments.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 104, Utilities Code, is   amended by adding Section 104.061 to read as follows:          Sec. 104.061.  CONSIDERATION OF ALTERNATIVE GAS EXPENSES AND   INFRASTRUCTURE INVESTMENTS. (a)  In this section, "alternative   gas" means:                (1)  any pipeline-compatible gaseous fuel that is   derived from:                      (A)  the anaerobic digestion of biomass,   gasification of biomass, or another biomass conversion process;                      (B)  agricultural waste; or                      (C)  landfill gas;                (2)  hydrogen produced using:                      (A)  carbon capture and storage;                      (B)  renewable energy to break down water into   hydrogen and oxygen through electrolysis; or                      (C)  pyrolysis to break down methane into hydrogen   and solid carbon;                (3)  gas certified in a manner approved by the railroad   commission under Subsection (c); or                (4)  another gaseous fuel designated by the railroad   commission under Subsection (c).          (b)  This section applies only to a gas utility that owns or   operates for compensation in this state equipment or facilities to   distribute combustible hydrocarbon natural gas or synthetic   natural gas under rates, terms, and conditions approved by a   regulatory authority.          (c)  The railroad commission by rule may:                (1)  approve a certification process used by an   organization to certify that a type of gas has a lower carbon   content than natural gas; and                (2)  designate a gaseous fuel as an alternative gas if   the fuel has a lower carbon content than natural gas.          (d)  A gas utility may include one or more forms of purchased   alternative gas in its gas supply portfolio used for the provision   of gas service to the utility's customers.  When establishing a gas   utility's rates, the regulatory authority shall allow a gas utility   to recover as a cost or expense expenditures associated with   purchasing the alternative gas if the expenditures were prudent,   reasonable, and necessary.          (e)  A gas utility may invest in infrastructure to acquire,   interconnect with, or produce an alternative gas supply for its   customers.  When establishing a gas utility's rates, the regulatory   authority shall allow a gas utility to include in its invested   capital prudent, reasonable, and necessary alternative gas supply   infrastructure costs while the infrastructure is used and useful in   providing service to the utility's customers.          SECTION 2.  This Act takes effect September 1, 2023.