Bill Text: TX SB2553 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the establishment of a strategic reserve of gas and crude oil and a severance tax credit for delivering gas and oil to the reserve.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2023-03-23 - Referred to Natural Resources & Economic Development [SB2553 Detail]
Download: Texas-2023-SB2553-Introduced.html
| By: Middleton | S.B. No. 2553 | |
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| relating to the establishment of a strategic reserve of gas and | ||
| crude oil and a severance tax credit for delivering gas and oil to | ||
| the reserve. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 81, Natural Resources Code, is amended | ||
| by adding Subchapter G to read as follows: | ||
| SUBCHAPTER G. STRATEGIC GAS AND CRUDE OIL RESERVE | ||
| Sec. 81.171. DEFINITIONS. In this subchapter: | ||
| (1) "Program" means the strategic gas and crude oil | ||
| reserve program established under this subchapter. | ||
| (2) "Reserve" means the strategic gas and crude oil | ||
| reserve maintained under this subchapter. | ||
| Sec. 81.172. PROGRAM ESTABLISHMENT; POWERS. (a) The | ||
| commission shall establish a program for acquiring and maintaining | ||
| a strategic gas and crude oil reserve for the distribution of gas | ||
| and crude oil in this state. | ||
| (b) The commission may purchase, lease, or sell property, | ||
| including gas or crude oil, or take any other action reasonably | ||
| necessary to establish the program required by Subsection (a). | ||
| (c) The commission may accept gifts, grants, and donations, | ||
| including gas or crude oil, to implement the program. | ||
| Sec. 81.173. GUIDELINE FOR PROGRAM ESTABLISHMENT AND | ||
| OPERATION. The program must be established and operated in a manner | ||
| that avoids unnecessary impacts on the gas and oil industries when | ||
| acquiring or distributing the gas or crude oil and minimizes the | ||
| cost of establishing and operating the program. | ||
| Sec. 81.174. RULES. (a) The Public Utility Commission of | ||
| Texas shall adopt rules governing the conditions under which gas or | ||
| crude oil may be distributed from the reserve. | ||
| (b) The commission may adopt rules to implement this | ||
| subchapter, other than the rules required by Subsection (a). | ||
| SECTION 2. Subchapter E, Chapter 201, Tax Code, is amended | ||
| by adding Section 201.2025 to read as follows: | ||
| Sec. 201.2025. TAX CREDIT FOR IN-KIND DELIVERY OF GAS. (a) | ||
| The person responsible for the payment of the tax imposed by this | ||
| chapter is entitled to a credit against the tax in the amount and | ||
| under the conditions provided by this section. | ||
| (b) The amount of the credit is equal to the market value of | ||
| gas delivered, including transportation, without charge to and | ||
| accepted by this state for the purpose of strategic energy storage. | ||
| (c) The credit may not be applied against any portion of the | ||
| tax that is required by the state constitution to be deposited to | ||
| the credit of the foundation school fund or transferred to the state | ||
| highway fund. | ||
| (d) A taxpayer may carry any unused credit forward until the | ||
| credit is used. | ||
| (e) The comptroller may adopt rules to implement this | ||
| section. | ||
| SECTION 3. Subchapter D, Chapter 202, Tax Code, is amended | ||
| by adding Section 202.1515 to read as follows: | ||
| Sec. 202.1515. TAX CREDIT FOR IN-KIND DELIVERY OF OIL. (a) | ||
| The person responsible for the payment of the tax imposed by this | ||
| chapter is entitled to a credit against the tax in the amount and | ||
| under the conditions provided by this section. | ||
| (b) The amount of the credit is equal to the market value of | ||
| oil delivered, including transportation, without charge to and | ||
| accepted by this state for the purpose of strategic energy storage. | ||
| (c) The credit may not be applied against any portion of the | ||
| tax that is required by the state constitution to be deposited to | ||
| the credit of the foundation school fund or transferred to the state | ||
| highway fund. | ||
| (d) A taxpayer may carry any unused credit forward until the | ||
| credit is used. | ||
| (e) The comptroller may adopt rules to implement this | ||
| section. | ||
| SECTION 4. As soon as practicable after the strategic gas | ||
| and crude oil reserve is established under Subchapter G, Chapter | ||
| 81, Natural Resources Code, as added by this Act, the Public Utility | ||
| Commission of Texas shall adopt the rules required by Section | ||
| 81.174(a), Natural Resources Code, as added by this Act. | ||
| SECTION 5. The change in law made by this Act does not | ||
| affect tax liability accruing before the effective date of this | ||
| Act. That liability continues in effect as if this Act had not been | ||
| enacted, and the former law is continued in effect for the | ||
| collection of taxes due and for civil and criminal enforcement of | ||
| the liability for those taxes. | ||
| SECTION 6. This Act takes effect September 1, 2023. | ||
