88R14026 JCG-D     By: Slaton H.B. No. 4408       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).          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, in consultation   with the governor, shall adopt rules as necessary to implement this   subchapter, including rules governing the distribution 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 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, 2023.