By Kuempel H.B. No. 2008
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of compressed natural gas and liquefied
1-3 natural gas industry.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. SUBCHAPTERS A through E, CHAPTER 116, Natural
1-6 Resources Code, are amended to read as follows:
1-7 SUBCHAPTER A. GENERAL PROVISIONS
1-8 Sec. 116.001. Definitions.
1-9 In this chapter:
1-10 (1) "Commission" means the Railroad Commission of
1-11 Texas.
1-12 (2) "Compressed natural gas" or "CNG" means natural
1-13 gas primarily consisting of methane in a gaseous state that is
1-14 compressed and used, stored, sold, transported, or distributed for
1-15 use by or through a CNG system.
1-16 (3) "Liquefied natural gas" or "LNG" means natural gas
1-17 primarily consisting of methane in liquid or semi-solid state.
1-18 (4) <(3)> "CNG cylinder" means a cylinder or other
1-19 container designed for use or used as part of a CNG system.
1-20 (5) "LNG container" means a container designed for use
1-21 or used as part of a LNG system.
1-22 (6) <(4)> "CNG system" means a system of safety
1-23 devices, cylinders, piping, fittings, valves, compressors,
2-1 regulators, gauges, relief devices, vents, installation fixtures,
2-2 and other CNG <compressed natural gas> equipment intended for use
2-3 or used in any building or public place by the general public or in
2-4 conjunction with a motor vehicle or mobile fuel system fueled by
2-5 compressed natural gas and any system or facilities <of equipment>
2-6 designed to be used or used in the compression, sale, storage,
2-7 transportation for delivery, or distribution of compressed natural
2-8 gas in portable CNG cylinders, but does not include <a> natural gas
2-9 facilities, equipment, or pipelines located upstream of the inlet
2-10 of a <the> compressor devoted entirely to compressed natural gas.
2-11 (7) "LNG system" means a system of safety devices,
2-12 containers, piping, fittings, valves, compressors, regulators,
2-13 gauges, relief devices, vents, installation fixtures, and other LNG
2-14 equipment intended for use or used with a motor vehicle fueled by
2-15 liquefied natural gas and any system or facilities designed to be
2-16 used or used in the liquefaction, sale, storage, transportation for
2-17 delivery, or distribution of liquefied natural gas.
2-18 (8) <(5)> "Motor vehicle" means any <a> self-propelled
2-19 vehicle licensed for highway use or used on a public highway.
2-20 (9) <(6)> "Compressed natural gas cargo tank" means a
2-21 container built in accordance with A.S.M.E. or D.O.T.
2-22 specifications and used to transport compressed natural gas for
2-23 delivery.
2-24 (10) "Liquefied natural gas cargo tank" means a
2-25 container built in accordance with A.S.M.E. or D.O.T.
3-1 specifications and used to transport liquefied natural gas for
3-2 delivery.
3-3 (11) "Mobile fuel system" means a CNG or LNG system to
3-4 supply natural gas fuel to an auxiliary engine other than the
3-5 engine used to propel the vehicle or for other uses on the vehicle.
3-6 (12) "Motor fuel system" means a CNG or LNG system to
3-7 supply natural gas as a fuel for an engine used to propel the
3-8 vehicle.
3-9 (13) "Registrant" means any individual exempt from the
3-10 licensing requirements as established by rule of the commission,
3-11 who is required to register with the commission, any person
3-12 qualified by examination by the commission, or any person who
3-13 applies for registration with the commission. Registrant includes
3-14 an employee of a licensee who performs CNG or LNG-related
3-15 activities.
3-16 Sec. 116.002. Exceptions.
3-17 This chapter does not apply to:
3-18 (1) the production, transportation, storage, sale, or
3-19 distribution of natural gas that is not included in the definition
3-20 of compressed natural gas or liquefied natural gas; <or>
3-21 (2) the production, transportation, storage, sale or
3-22 distribution of natural gas that is subject to commission
3-23 jurisdiction under the Gas Utility Regulatory Act (Article 1446e,
3-24 Revised Statutes) or the Cox Act (Articles 6050, et seq., Revised
3-25 Statutes);
4-1 (3)<2> pipelines, fixtures, and other equipment used in the
4-2 natural gas industry that are not used or designed to be used as
4-3 part of a CNG or LNG system; or
4-4 (4) pipelines, fixtures, equipment, or facilities to the
4-5 extent that they are subject to the safety regulations promulgated
4-6 and enforced by the commission pursuant to Chapter 117, Natural
4-7 Resources Code, or Article 6053-1, Revised Statutes.
4-8 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
4-9 Sec. 116.011. Administration.
4-10 The commission shall administer and enforce this chapter and
4-11 rules and standards adopted under this chapter relating to
4-12 compressed natural gas and liquefied natural gas.
4-13 Sec. 116.012. Rules and Standards.
4-14 To protect the health, safety, and welfare of the general
4-15 public, the commission shall adopt necessary rules and standards
4-16 relating to the work of compression and liquefaction, storage, sale
4-17 or dispensing, transfer or transportation, use or consumption, and
4-18 disposal of compressed natural gas or liquefied natural gas
4-19 <compressed natural gas work and operations>.
4-20 Sec. 116.013. National Codes.
4-21 The commission may adopt by reference in its rules all or
4-22 part of the published codes of nationally recognized societies as
4-23 standards to be met in the design, construction, fabrication,
4-24 assembly, installation, use, and maintenance of CNG <compressed
4-25 natural gas> or LNG components and equipment.
5-1 Sec. 116.014. Fees.
5-2 (a) Fees collected by the commission under Section 116.034
5-3 of this code for training, examinations, and seminars must be
5-4 deposited in a special fund in the state treasury designated as the
5-5 CNG <compressed natural gas> and LNG examination fund. The
5-6 commission shall use money in this fund to pay the cost of
5-7 training, examinations, and seminars sponsored <furnished> or
5-8 administered by the commission.
5-9 (b) Except as provided by Subsection (a) of this section,
5-10 money collected by the commission as fees under this chapter shall
5-11 be deposited in the general revenue fund.
5-12 Sec. 116.015. Entry on Property; Inspection and
5-13 Investigation.
5-14 (a) An employee, agent, or inspector of the commission may
5-15 enter the premises of a licensee <property of a person licensed>
5-16 under this chapter, or any building or other premises open to the
5-17 public, or inspect any CNG or LNG system or motor vehicle equipped
5-18 with CNG or LNG equipment at any reasonable time for the purpose of
5-19 determining and verifying <and may inspect any motor vehicle
5-20 equipped with compressed natural gas equipment to determine if the
5-21 licensee is complying with or if the motor vehicle is in>
5-22 compliance with this chapter and rules of the commission adopted
5-23 under this chapter.
5-24 (b) Any authorized representative of the LPG division may
5-25 enter any building or premises where an accident has occurred in
6-1 which CNG or LNG was a probable cause, for purposes of
6-2 investigating the cause, origin, and circumstances of such
6-3 accident. The LPG division may request that any state or local
6-4 authority having jurisdiction take appropriate action as may be
6-5 necessary for preservation of property and premises.
6-6 SUBCHAPTER C. LICENSING & REGISTRATION
6-7 Sec. 116.031. License Requirement.
6-8 (a) Unless otherwise provided in this chapter or by
6-9 commission rule, a person shall be required to obtain a license
6-10 from the commission to engage in any of the following activities <a
6-11 person has obtained a license from the commission under this
6-12 chapter, the person may not engage in the following work>:
6-13 (1) <cylinder> work that includes the manufacture,
6-14 assembly, repair, testing, sale, installation, or subframing of CNG
6-15 cylinders or LNG containers for use in this state;
6-16 (2) systems work that includes the sale, installation,
6-17 modification or service<, or repair> of CNG or LNG systems for use
6-18 in this state, including the installation, modification or service
6-19 by any person, except a political subdivision, of a CNG or LNG
6-20 motor fuel system or mobile fuel system on a vehicle used in the
6-21 transportation of the general public; or
6-22 (3) product work that includes the sale, storage,
6-23 transportation for delivery, or dispensing of CNG or LNG
6-24 <compressed natural gas> in this state.
6-25 (b) A license obtained by a partnership, corporation, or
7-1 other legal entity extends to the entity's employees who are
7-2 performing CNG or LNG <compressed natural gas> work, provided that
7-3 each employee is qualified and registered as required by rules
7-4 adopted by the commission.
7-5 (c) No license is required by an original vehicle
7-6 manufacturer or a contractor of such manufacturer for the
7-7 installation and sale of a new CNG or LNG system when such system
7-8 is installed on a new original vehicle fueled by CNG or LNG.
7-9 (d) The commission by rule may provide for the annual
7-10 registration of all individuals performing CNG or LNG-related
7-11 activities who are exempt from the licensing requirements of the
7-12 commission. Employees of a political subdivision are not required
7-13 to be licensed or registered under this chapter.
7-14 Sec. 116.032. License <Categories> and Registration Fees.
7-15 (a) The commission shall adopt rules establishing
7-16 registration fees and license categories and license fees to be
7-17 charged for application for and issuance and renewal of a license<s
7-18 in each category> or registration.
7-19 (b) The commission may establish fees for each category of
7-20 license. A license fee may not exceed $1,000.
7-21 Sec. 116.033. Application and Renewal Procedures.
7-22 The commission shall adopt rules establishing procedures for
7-23 submitting and processing applications for issuance and renewal of
7-24 licenses and for registration.
7-25 Sec. 116.034. Examination and Seminar Requirements.
8-1 (a) The commission shall adopt rules providing the training,
8-2 examination, and seminar attendance requirements for persons who
8-3 are required or who wish to be licensed or registered under this
8-4 chapter.
8-5 (b) The commission may adopt a reasonable fee to cover the
8-6 cost of any training, examination, or seminar required by and
8-7 sponsored <furnished> or administered by the commission.
8-8 (c) Before a license or registration may be issued, the
8-9 person to be licensed or registered must satisfactorily complete
8-10 the training, examinations, and seminars required by the
8-11 commission.
8-12 Sec. 116.035. Denial of License.
8-13 The commission may deny issuance or renewal of a license or
8-14 registration to any person who fails to qualify under the
8-15 requirements of this chapter and rules adopted by the commission
8-16 under this chapter. The commission shall give written notice to an
8-17 applicant for the issuance or renewal of a license or for
8-18 registration of the denial of the license or registration and the
8-19 reasons for denial.
8-20 Sec. 116.036. Insurance Requirement.
8-21 (a) All licensees <A person licensed under this chapter>
8-22 must acquire and maintain appropriate workers' compensation or
8-23 coverage for its employees under policies of work related accident,
8-24 disability and health insurance, including coverage for death
8-25 benefits, from an insurance carrier authorized to provide coverage
9-1 in this state and other insurance coverage required by the
9-2 commission in the amounts required by the commission.
9-3 (b) Notwithstanding Subsection (a), a state agency or
9-4 institution, county, municipality, school district or other
9-5 governmental subdivision may submit evidence of workers'
9-6 compensation coverage by self-insurance if permitted by the state
9-7 workers' compensation act.
9-8 (c) <(b)> The commission shall adopt rules establishing
9-9 specific requirements for insurance coverage under this chapter and
9-10 evidence of such coverage. The types and amounts of insurance
9-11 coverage required by the commission shall be based on the type and
9-12 category of licensed activity.
9-13 (d) <(c)> The commission may not issue or renew a license,
9-14 and a licensee may not perform any licensed activity unless the
9-15 insurance coverage required by the commission's rules is in effect
9-16 and evidence of that coverage is filed with the commission as
9-17 required by commission rule.
9-18 (e) Every motor vehicle operated in this state as a
9-19 conveyance for a CNG or an LNG cargo tank must meet motor vehicle
9-20 insurance requirements established by the commission.
9-21 Sec. 116.037. Suspension and Revocation of License.
9-22 (a) The commission shall notify a licensee or registrant in
9-23 writing if it finds probable violation or noncompliance with this
9-24 chapter or the rules adopted under this chapter.
9-25 (b) The notice shall specify the particular acts, omissions,
10-1 or conduct comprising the alleged violation and shall designate a
10-2 date by which the violation must be corrected or discontinued.
10-3 (c) The licensee or registrant shall report timely
10-4 compliance or shall request extension of time for compliance if
10-5 considered necessary.
10-6 (d) If a licensee or registrant objects to the complaint or
10-7 requirements under this section, or if the commission determines
10-8 that the licensee or registrant is not proceeding adequately to
10-9 compliance, then, on written request of the licensee or registrant
10-10 or order of the commission, a public hearing must be conducted.
10-11 (e) If the commission or division determines that the
10-12 probable violation or noncompliance constitutes an immediate danger
10-13 to the public health, safety, and welfare, it shall require the
10-14 immediate cessation of the probable violation or noncompliance and
10-15 proceed with a hearing.
10-16 (f) If the commission finds that the licensee or registrant
10-17 has violated or failed to comply with or is violating or failing to
10-18 comply with this chapter or a rule adopted under this chapter, the
10-19 commission may suspend the license or registration for a definite
10-20 period not to exceed 90 days or may revoke the license.
10-21 (g) Any party to a proceeding before the commission is
10-22 entitled to judicial review under the substantial evidence rule.
10-23 Sec. 116.038. Staggered Renewal of Licenses.
10-24 The commission, by rule, may adopt a system under which
10-25 license and registration fees required by section 116.014 of this
11-1 chapter expire on various dates during the year. For the year in
11-2 which the license and registration expiration dates are changed,
11-3 license and registration fees payable on a specified date shall be
11-4 pro-rated on a monthly basis so that each licensee shall pay only
11-5 that portion of the license and registration fees that is allowable
11-6 to the number of months during which the license and registration
11-7 is valid. On renewal of the license and registration on the new
11-8 expiration date, the total license and registration fees are
11-9 payable.
11-10 SUBCHAPTER D. MOTOR VEHICLE REGULATION
11-11 Sec. 116.071. Registration Rules.
11-12 The commission shall adopt rules relating to the registration
11-13 of motor vehicles that are equipped with a CNG or LNG <compressed
11-14 natural gas> cargo tank<s> and motor vehicles used principally to
11-15 transport compressed natural gas or liquefied natural gas in
11-16 portable cylinders or containers.
11-17 Sec. 116.072. Registration.
11-18 (a) Each motor vehicle that is equipped with a CNG or LNG
11-19 <compressed natural gas> cargo tank and each motor vehicle used
11-20 principally to transport CNG or LNG <compressed natural gas> in
11-21 portable cylinders or containers must be registered with the
11-22 commission as provided by commission rules.
11-23 (b) The commission may not impose a fee for registration
11-24 under this section on a motor vehicle owned by a county.
11-25 (c) The commission, by rule, shall establish a reasonable,
12-1 nonrefundable registration and transfer fee for each CNG or LNG
12-2 cargo trailer, semitrailer, bobtail, and cylinder delivery unit
12-3 registered or transferred as follows:
12-4 (1) The registration fee established by the commission
12-5 shall not be less than $100, nor more than $500.
12-6 (2) The transfer fee established by the commission
12-7 shall not be less than $25, nor more than $100.
12-8 Sec. 116.073. Safety Rules.
12-9 The commission shall adopt safety rules relating to the
12-10 transportation of compressed natural gas and liquefied natural gas
12-11 in this state.
12-12 Sec. 116.074. Cooperation of the Department of Public
12-13 Safety.
12-14 The Department of Public Safety shall cooperate with the
12-15 commission in administering and enforcing this chapter and rules of
12-16 the commission relating to regulation of motor vehicles required to
12-17 be registered under this subchapter.
12-18 <Sec. 116.075. SUSPENSION AND REVOCATION OF REGISTRATION.>
12-19 <(a) The commission shall notify a registrant in writing if
12-20 it finds probable violation or noncompliance with this chapter or
12-21 the safety rules adopted under this chapter.>
12-22 <(b) The notice shall specify the particular acts,
12-23 omissions, or conduct comprising the alleged violation and shall
12-24 designate a date by which the violation must be corrected or
12-25 discontinued.>
13-1 <(c) The registrant shall report timely compliance or shall
13-2 request extension of time for compliance if considered necessary.>
13-3 <(d) If a registrant objects to the complaint or
13-4 requirements under this section, or if the commission determines
13-5 that the registrant is not proceeding adequately to compliance,
13-6 then, on written request of the registrant or order of the
13-7 commission, a public hearing must be conducted.>
13-8 <(e) If the commission or division determines that the
13-9 probable violation or noncompliance constitutes an immediate danger
13-10 to the public health, safety, and welfare, it shall require the
13-11 immediate cessation of the probable violation or noncompliance and
13-12 proceed with a hearing.>
13-13 <(f) If the commission finds that the registrant has
13-14 violated or failed to comply with or is violating or failing to
13-15 comply with this chapter or a rule adopted under this chapter, the
13-16 commission may suspend the registration for a definite period not
13-17 to exceed 90 days or may revoke the registration.>
13-18 <(g) Any party to a proceeding before the commission is
13-19 entitled to judicial review under the substantial evidence rule.>
13-20 Sec. 116.075<6>. Application of Other Laws.
13-21 This chapter and the rules adopted under this chapter do not
13-22 modify, amend, or repeal any laws of this state relating to the
13-23 regulation of motor carriers.
13-24 SUBCHAPTER E. MISCELLANEOUS PROVISIONS
13-25 Sec. 116.101. Malodorants.
14-1 Compressed natural gas and liquefied natural gas must be
14-2 odorized as provided by Section 2, Article 6053, Revised Statutes,
14-3 as amended.
14-4 Sec. 116.102. Testing Laboratories.
14-5 The commission shall adopt rules relating to testing of CNG
14-6 and LNG <compressed natural gas> equipment and to the
14-7 qualifications required of the persons who are to perform those
14-8 tests.
14-9 Sec. 116.103. Warning Tags.
14-10 (a) An employee, agent, or inspector of the commission may
14-11 declare unsafe or dangerous for service any motor vehicle required
14-12 to be registered under this chapter, or any CNG or LNG equipment or
14-13 system <compressed natural gas equipment, or CNG system> that is
14-14 defective or that does not otherwise conform to the safety
14-15 requirements of this chapter and the rules adopted under this
14-16 chapter and shall attach a warning tag to the motor vehicle,
14-17 equipment, or system in a conspicuous location.
14-18 (b) A person may not sell, furnish, deliver, or supply
14-19 compressed natural gas and liquefied natural gas for use or
14-20 consumption by or through a motor vehicle or system in a public
14-21 place or operate a motor vehicle having CNG or LNG <compressed
14-22 natural gas> equipment to which a warning tag is attached.
14-23 (c) A warning tag may be removed on approval of the
14-24 commission or by a person designated by the commission to remove
14-25 the tag. A warning tag may not be removed by any person who is not
15-1 authorized to remove the tag by the commission.
15-2 SECTION 2. This Act takes effect September 1, 1993.
15-3 SECTION 3. The importance of this legislation and the
15-4 crowded condition of the calendars in both houses create an
15-5 emergency and an imperative public necessity that the
15-6 constitutional rule requiring bills to be read on three several
15-7 days in each house be suspended, and this rule is hereby suspended.