The Texas Railroad Commission: The State's Most Powerful Agency
A Voter's Guide to the Texas Railroad Commission
Key topics in this article:
A Brief History of the Texas Railroad Commission
What the Texas Railroad Commission Does
The TRC’s Infrastructure and Weatherization Regulation Responsibility
The Texas Railroad Commission 2024 election opportunity
I recently made a post on Threads in which I outlined all of the positions that will be on the ballot in the 2024 Texas Primary and I included a link that outlined all of the candidates for each position. In my post, I listed the following positions:
U.S. Senate
Railroad Commissioner
Congress
State Senate
State House
State Board of Education
Texas Supreme Court
Almost immediately my post received a comment that read “Railroad Commissioner? I hope that list isn’t in order of importance".”
I didn’t realize until I read that comment that because of the deceiving name, a lot of voters might not realize just how important the Railroad Commission is in Texas and why they should be paying attention when one of the Commissioners is up for re-election.
A Brief History
Established in 1891, The Texas Railroad Commission is the oldest regulatory agency in Texas and is among the oldest in the country. It was established to regulate the rail industry of the 1800s, and its original authorities were to issue rules on the classification of freight, set rates, require adequate railroad reporting, and regulate and punish discrimination and extortion by corporations.
At the time, its name was adequate.
The agency’s responsibilities expanded to regulating oil pipelines in 1917, oil and gas production in 1919, natural gas delivery in 1920, bus lines in 1927, and trucking in 1930.
In the early 20th century The Texas Railroad Commission had such strong influence over the world’s oil prices that it practically set the world’s market prices from the 1930s through the 1960s when it was displaced by OPEC (Organization of Petroleum Exporting Companies) in 1973.
In 1984, the federal government assumed regulation of railroads, trucking, and buses, but the Railroad Commission kept its name.
In 2005 its Rail Division and rail safety regulation responsibilities were transferred to the Texas Department of Transportation as a result of House Bill 2702, 79th Legislature, Regular Session, signaling the end of all rail-related responsibilities for the commission. The Railroad Commission has had no involvement in the railroad industry since that time.
What Does the Texas Railroad Commission Do?
In a state renowned for its vast energy resources, the Texas Railroad Commission stands as a pivotal regulatory authority. With the jurisdiction to oversee some of the state's most critical industries, the Commission's responsibilities extend across various sectors, each vital to the economic and environmental well-being of Texas.
The following sections delve into each of these key areas, shedding light on how the Texas Railroad Commission navigates the complex landscape of regulation, safety, and environmental stewardship.
The Oil and Gas Industry
The Texas Railroad Commission plays a pivotal role in regulating the oil and gas industry, a sector that is vital to both the state and national economy. The Commission is responsible for overseeing various aspects of this industry, including the permitting of drilling operations, ensuring environmentally responsible exploration and production, and monitoring for compliance with state laws. They enforce regulations that safeguard the public and the environment from potential hazards associated with oil and gas operations. Additionally, the Commission plays a key role in managing the fair and equitable allocation of resources, preventing waste, and facilitating the efficient recovery of oil and natural gas.
Gas Utilities
When it comes to gas utilities, the Texas Railroad Commission ensures that natural gas is delivered safely and reliably to customers. This includes overseeing the rates and services of natural gas providers, and ensuring they are fair and reasonable. The Commission also addresses issues related to the expansion of gas utility services and infrastructure, ensuring that they meet the state's growing energy needs while complying with safety and environmental standards. Consumer protection is a critical aspect of their mandate, handling customer complaints and disputes related to gas utility services.
Pipeline Safety
The Commission's responsibility for pipeline safety is paramount given Texas' extensive network of oil and gas pipelines. They enforce state and federal pipeline safety regulations to protect the public and the environment. This includes conducting inspections, investigating incidents, and enforcing compliance with safety standards. The Commission also oversees the construction, operation, and maintenance of pipelines, ensuring that they are safe and meet all regulatory requirements. Additionally, they play a role in emergency response and preparedness, coordinating with other agencies in the event of a pipeline incident.
Safety in the Liquified Petroleum Gas Industry
In the liquified petroleum gas (LPG) industry, the Texas Railroad Commission's role is to ensure the safe storage, transportation, and use of LPG. This involves regulating LPG facilities, enforcing safety codes and standards, and conducting inspections. The Commission is also responsible for licensing LPG dealers, installers, and operations, ensuring they meet rigorous safety criteria. Public education and outreach are also part of their mandate, providing resources and information to promote safety in the handling and use of LPG.
Surface Coal and Uranium Mining
The Texas Railroad Commission oversees surface coal and uranium mining within the state, ensuring that these activities are conducted responsibly and in an environmentally sound manner. Their responsibilities include issuing permits, enforcing mining regulations, and reclaiming abandoned mine lands. The Commission ensures that mining operations protect water quality, restore mined lands to productive use, and comply with federal and state environmental standards. They also play a role in promoting the safe and efficient extraction of these resources, balancing economic development with environmental stewardship.
Infrastructure and Weatherization Regulation
The catastrophic winter weather event of February 2021 in Texas, marked by severe power outages and critical energy shortages, cast a glaring spotlight on the Texas Railroad Commission's significant oversight responsibilities. While much of the immediate blame was directed at the Electric Reliability Council of Texas (ERCOT), a deeper examination reveals critical lapses by the Texas Railroad Commission, especially in the realms of infrastructure maintenance and weatherization.
Inadequate Infrastructure and Weatherization Standards
At the core of the Commission's responsibilities is the oversight of the state’s oil and gas infrastructure, a role that proved to be critically underperformed in the lead-up to the 2021 crisis. The Commission's failure to enforce stringent weatherization standards led to widespread malfunctions in natural gas production and distribution systems, directly contributing to the energy shortfall. Despite previous warnings from similar, though less severe, events in the past, the Commission had not implemented adequate measures to ensure that the infrastructure was resilient against extreme cold conditions.
The TRC’s approach to infrastructure resilience was largely reactive rather than proactive. The failure to hold natural gas companies accountable for weatherization left the state's energy grid vulnerable to the devastating impacts of the freeze.
The Commission is made up of 3 Commissioners, one of which, Christi Craddick (R), is up for re-election in 2024.
There will be 2 Democrat challengers (as well as 3 Republican challengers) for her seat on the March 5, 2024 primary ballot.
Bill Burch (D)
The last time a Democrat won an election for the Texas Railroad Commission was in 1990. Given the importance of this agency this is a race Democrats will want to show up for.
