Saying the Texas Railroad Commission’s (RRC) proposed weatherization rules for natural gas facilities don’t align with the state legislature’s intent, a Senate committee has sent a letter to the agency urging it to revise its rulemaking.
“It has become abundantly clear that failure to properly identify and weatherize critical natural gas infrastructure contributed to widespread power outages across the state,” the letter says. “The commission’s proposed rules contemplate designating all natural gas infrastructure assets as critical without regard to whether these assets directly support critical generation.”
During a Sept. 28 hearing before the Senate Business and Commerce Committee involving the RRC, which regulates the state’s oil and natural gas industries, the senators learned that under the commission’s proposed weatherization requirement, facilities can avoid the rule by not declaring themselves as critical infrastructure and paying a $150 opt-out fee. A Federal Reserve Bank of Dallas report said it can cost between $20,000 and $50,000 to weatherize new and existing wellheads. (See “State Senate Grills Gas Regulator,” Texas PUC Finances Market Debt over Lt. Gov.’s Objections.)
The letter, signed by all nine members of the committee, said rather than designate all facilities as critical, the RRC should start with gas-fired units and work backward through the supply chain to prioritize those elements “most directly essential to electric generation.”
“We sent this letter to the RRC to provide guidance as they proceed in their rulemaking process,” committee Chair Charles Schwertner (R) tweeted. “I will continue to hold these agencies accountable.”
Separately, Rep. Jon Rosenthal (D) filed a bill last week to close the loophole. “It is vital that we fix this oversight, so that Texans may finally have a reliable power grid,” Rosenthal tweeted.
The RRC on Thursday requested the state’s natural gas operators to “take all necessary action” to prepare for winter weather, according to the Houston Chronicle.