Overall Vote Recommendation

Vote No; Amend

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 143 seeks to improve electrical safety standards at oil and gas well sites and associated surface facilities in Texas. The bill amends Section 91.019 of the Texas Natural Resources Code to require that operators construct, operate, and maintain electrical power lines according to either the National Electrical Code (as adopted by the Texas Commission of Licensing and Regulation) or certain provisions of the Texas Administrative Code if the operator qualifies as a utility.

The legislation establishes a clear inspection and enforcement process. If, during an inspection or in response to a landowner’s written complaint, the Railroad Commission of Texas (RRC) finds electrical infrastructure that does not meet code requirements and presents a fire or safety hazard, the RRC must notify both the Public Utility Commission of Texas (PUC) and the operator within three days. Within ten days of receiving the RRC’s notice, the PUC and RRC must inform the landowner of the identified risk and outline steps to address the problem.

To resolve the hazardous condition, the RRC and PUC may request inspections from local authorities or the state fire marshal, direct the utility to disconnect power if needed, or take other appropriate actions. Once the condition has been corrected and the RRC verifies resolution, power must be restored by the utility. The bill creates a formal mechanism for coordination among regulatory agencies and landowners to ensure that outdated or unsafe electrical lines related to energy production do not pose threats to public safety or property.

The originally filed version of HB 143 focused narrowly on mandating that operators of electrical power lines serving well sites or associated facilities comply with the National Electrical Code, and provided a mechanism for the Railroad Commission of Texas (RRC) and the Public Utility Commission of Texas (PUC) to coordinate remediation if code violations were discovered. It laid out three specific actions the commissions could take: notifying the utility provider to assess disconnection, requesting an inspection by the fire marshal or local authority, or ordering the utility to disconnect service if needed.

The Committee Substitute, however, introduces several significant changes and expansions. First, it broadens the compliance requirement by allowing operators to follow specific rules under the Texas Administrative Code (§§ 25.94–25.96) if they are considered utilities under Texas law. This creates a dual compliance path depending on the operator’s classification, which wasn’t present in the original bill.

Second, the substitute adds a more structured and time-sensitive notification process. It mandates that the RRC must notify the PUC and the operator within three days of discovering a hazardous condition and requires joint notification to the landowner within ten days. The original version only involved notifying the utility and did not include the landowner.

Lastly, the substitute bill adds a new provision that obligates utilities to restore electric service upon confirmation by the RRC that the condition has been resolved. This clause is not present in the original version, which left the process for service restoration undefined. The substitute also allows the commissions to take "any other action" they deem necessary, giving them broader discretion than the original version, which listed a more limited set of actions.

These changes reflect a shift from a narrowly focused enforcement mechanism to a more comprehensive, procedural, and inclusive regulatory framework.

Author

Ken King

Drew Darby

Todd Hunter

Caroline Fairly

Rafael Anchia

Co-Author

Cassandra Garcia Hernandez

Ray Lopez

Penny Morales Shaw

Mihaela Plesa

Sponsor

Kelly Hancock

Co-Sponsor

Nathan Johnson

Lois Kolkhorst

Contact the Author

Rep. Ken King

Capitol Phone:

(512) 463-0736

Capitol Office:

CAP GW.17

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), HB 143 will have no significant fiscal implication to the state. The agencies tasked with implementing the bill—the Railroad Commission of Texas and the Public Utility Commission of Texas—are expected to be able to absorb any additional responsibilities within their existing budgets and staffing resources.

However, there is a potential but indeterminate fiscal impact on local government entities. This could arise in instances where local authorities or the state fire marshal are requested to inspect well sites or surface facilities to assess electrical hazards. Since the bill enables the Railroad Commission and the Public Utility Commission to involve local resources in remediation efforts, municipalities may incur costs related to inspections or enforcement actions. Nevertheless, the LBB notes that the number of such incidents and the associated costs cannot be estimated with current data, making the full local fiscal impact uncertain.

In summary, while the bill is expected to be fiscally neutral for the state, it may result in unpredictable costs for local governments, depending on the frequency and severity of electrical compliance issues at oil and gas production sites.

Vote Recommendation Notes

HB 143 emerges from the pressing need to address safety risks at oil and gas well sites in the wake of catastrophic wildfires in the Texas Panhandle. The bill seeks to codify a memorandum of understanding (MOU) between the Railroad Commission of Texas (RRC) and the Public Utility Commission of Texas (PUC), which was established to ensure coordination and accountability when electrical power infrastructure fails to meet safety standards. The legislation is rooted in legitimate public safety concerns and provides a procedural framework for inspections, notifications, and corrective actions in collaboration with landowners, operators, and local authorities.

However, while the bill represents a step forward in formalizing interagency cooperation and enhancing infrastructure oversight, it presents some challenges when evaluated through the lens of core liberty principles. The bill grants broad discretion to the RRC and PUC to take "any other action" they consider necessary, a phrase that could allow overly expansive regulatory intervention. Furthermore, the lack of a clear appeals process for operators facing power disconnection may compromise due process and disrupt legitimate business activity, especially for smaller operators.

The bill does offer some safeguards for property owners by requiring prompt agency response and restoration of power once conditions are resolved. It also provides for landowner notification and agency accountability in addressing electrical risks. But to better align the bill with principles of limited government and free enterprise, it should be amended to clarify the scope of agency powers and introduce procedural checks for affected operators.

Therefore, Texas Policy Research recommends that lawmakers vote NO on HB 143 unless amended as described above to protect against regulatory overreach and unintended consequences.

References

Investigative Committee Unveils Findings on 2024 Panhandle Wildfires

Related Legislation

View Bill Text and Status