88R13978 ANG-F     By: Bryant H.B. No. 4706       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of an independent market monitor for   the natural gas market by the Public Utility Commission of Texas and   an independent organization certified for a power region.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 39.1515, Utilities Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  In this section, "market monitor" means the entity   selected under Subsection (a).          SECTION 2.  Subchapter D, Chapter 39, Utilities Code, is   amended by adding Section 39.1517 to read as follows:          Sec. 39.1517.  NATURAL GAS MARKET MONITOR. (a)  An   independent organization certified under Section 39.151 shall   contract with an entity selected by the commission to act as an   independent market monitor for the natural gas market to:                (1)  detect and prevent market manipulation strategies   in the natural gas market to prevent the unreasonable restriction,   impairment, or reduction in the level of competition; and                (2)  recommend measures to enhance the efficiency of   the natural gas market.          (b)  In this section:                (1)  "Market monitor" means the entity selected under   Subsection (a).                (2)  "Natural gas market" means transactions made by a   gas supply chain facility described by Section 86.044(b), Natural   Resources Code, or a gas pipeline facility described by Section   121.2015(a)(3) to supply natural gas for the electricity supply   chain, as mapped under Section 38.203.          (c)  The independent organization shall provide to the   personnel of the market monitor:                (1)  support and cooperation the commission determines   is necessary for the market monitor to perform the market monitor's   functions; and                (2)  full access to the parts of the independent   organization's main operations center and records that concern   operations, settlements, and reliability.          (d)  The independent organization shall use money from the   fee authorized by Section 39.151(e) to pay for the market monitor's   activities.          (e)  The commission and the Railroad Commission of Texas are   responsible for ensuring that the market monitor has the resources,   expertise, and authority necessary to monitor the natural gas   market in this state effectively and shall adopt rules and perform   oversight of the market monitor as necessary. The market monitor   shall operate under the supervision and oversight of the   commission.          (f)  The commission and the Railroad Commission of Texas   retain all enforcement authority conferred under this title, Title   3, and the Natural Resources Code, and this section may not be   construed to confer enforcement authority on the market monitor or   to authorize the commission or the Railroad Commission of Texas to   delegate enforcement authority to the market monitor.  The   commission by rule shall define:                (1)  the market monitor's monitoring responsibilities,   including reporting obligations and limitations;                (2)  the standards for funding the market monitor,   including staffing requirements;                (3)  qualifications for personnel of the market   monitor; and                (4)  ethical standards for the market monitor and the   personnel of the market monitor.          (g)  In adopting rules governing the standards for funding   the market monitor, the commission shall consult with a   subcommittee of the independent organization's governing body to   receive information on how money is or should be spent for   monitoring functions.  Rules governing ethical standards must   include provisions designed to ensure that the personnel of the   market monitor are professionally and financially independent from   participants in the natural gas market. The commission shall   develop and implement policies that clearly separate the   policy-making responsibilities of the commission and the   monitoring, analysis, and reporting responsibilities of the market   monitor.          (h)  The market monitor immediately shall report directly to   the commission any potential market manipulations and any   discovered or potential violations of commission rules, protocols   of the independent organization, or rules of the Railroad   Commission of Texas.          (i)  The market monitor shall consult with the Railroad   Commission of Texas to obtain necessary information for the market   monitor to perform the market monitor's functions.  The commission   may enter into a memorandum of understanding with the Railroad   Commission of Texas to:                (1)  ensure the market monitor has access to the   information needed for the market monitor to perform the market   monitor's functions; and                (2)  provide oversight over the sharing of information   between the Railroad Commission of Texas and the market monitor.          (j)  The personnel of the market monitor may communicate with   commission staff on any matter without restriction.          (k)  The market monitor annually shall submit to the   independent organization, the commission, and the Railroad   Commission of Texas a report that identifies market flaws and   recommends methods to correct the flaws. The independent   organization, the commission, and the Railroad Commission of Texas   shall review the report and evaluate whether changes to commission   rules, protocols of the independent organization, or rules of the   Railroad Commission of Texas should be made.          SECTION 3.  This Act takes effect September 1, 2023.