Texas HB4042 exempts certain natural gas distribution systems from municipal franchise fees and sales tax, and sets annual fees for gas distribution.

Texas HB4042 modifies the applicability of certain safety provisions and regulatory fees for natural gas distribution pipelines. It exempts natural gas distribution systems from being included in revenue calculations for municipal franchise fees and sales tax. The bill also allows the Railroad Commission of Texas to assess annual fees for natural gas distribution systems and master metered systems, with the fees to be recovered as a surcharge to existing rates. The changes take effect September 1, 2025.

Texas HB4042 exempts certain natural gas distribution systems from municipal franchise fees and sales tax, and sets annual fees for gas distribution.

Texas HB4042 modifies the applicability of certain safety provisions and regulatory fees for natural gas distribution pipelines. It exempts natural gas distribution systems from being included in revenue calculations for municipal franchise fees and sales tax. The bill also allows the Railroad Commission of Texas to assess annual fees for natural gas distribution systems and master metered systems, with the fees to be recovered as a surcharge to existing rates. The changes take effect September 1, 2025.