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Back to HB 4042
Texas Legislature· HB 4042Effective on 9/1/25

Relating to the applicability of certain safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution pipelines, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
H.B. No. 4042

AN ACT

relating to the applicability of certain safety provisions and

regulatory fees administered by the Railroad Commission of Texas to

gas distribution pipelines.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 121.211(a), (d), (e), and (g),

Utilities Code, are amended to read as follows:

(a) The railroad commission by rule may adopt a fee to be

assessed annually against operators of [natural] gas distribution

pipelines and their pipeline facilities and [natural] gas master

metered pipelines and their pipeline facilities subject to this

title.

(d) The commission may assess each operator of a [natural]

gas distribution system subject to this title an annual fee not to

exceed one dollar for each service line reported by the system on

the Distribution Annual Report, Form RSPA F7100.1-1, due on March

15 of each year. The fee is due March 15 of each year.

(e) The railroad commission may assess each operator of a

[natural] gas master metered system subject to this title an annual

fee not to exceed $100 for each master metered system. The fee is

due June 30 of each year.

(g) Each operator of a [natural] gas distribution system and

each [natural] gas master meter operator shall recover as a

surcharge to its existing rates the amounts paid to the commission

under this section. Amounts collected under this subsection by an

investor-owned [natural] gas distribution system or a

cooperatively owned [natural] gas distribution system shall not be

included in the revenue or gross receipts of the company for the

purpose of calculating municipal franchise fees or any tax imposed

under Subchapter B, Chapter 182, Tax Code, or under Chapter 122.

Those amounts are not subject to a sales and use tax imposed by

Chapter 151, Tax Code, or Subtitle C, Title 3, Tax Code.

SECTION 2. Section 121.213(a), Utilities Code, is amended

to read as follows:

(a) In this section, "distribution gas pipeline facility"

means a pipeline facility that distributes [natural] gas directly

to end-use customers.

SECTION 3. Section 121.214(a)(1), Utilities Code, is

amended to read as follows:

(1) "Distribution gas pipeline facility" means a

pipeline facility that distributes [natural] gas directly to end

use customers.

SECTION 4. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 4042 was passed by the House on May 1,

2025, by the following vote: Yeas 105, Nays 38, 3 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 4042 was passed by the Senate on May

23, 2025, by the following vote: Yeas 28, Nays 3.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor
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