S.B. No. 576
AN ACT
1-1 relating to the regulation of the compressed natural gas and
1-2 liquefied natural gas industry.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapters A through E, Chapter 116, Natural
1-5 Resources Code, are amended to read as follows:
1-6 SUBCHAPTER A. GENERAL PROVISIONS
1-7 Sec. 116.001. Definitions. In this chapter:
1-8 (1) "Commission" means the Railroad Commission of
1-9 Texas.
1-10 (2) "Compressed natural gas" or "CNG" means natural
1-11 gas primarily consisting of methane in a gaseous state that is
1-12 compressed and used, stored, sold, transported, or distributed for
1-13 use by or through a CNG system.
1-14 (3) "Liquefied natural gas" or "LNG" means natural gas
1-15 primarily consisting of methane in liquid or semisolid state.
1-16 (4) "CNG cylinder" means a cylinder or other container
1-17 designed for use or used as part of a CNG system.
1-18 (5) "LNG container" means a container designed for use
1-19 or used as part of an LNG system.
1-20 (6) <(4)> "CNG system" means a system of safety
1-21 devices, cylinders, piping, fittings, valves, compressors,
1-22 regulators, gauges, relief devices, vents, installation fixtures,
1-23 and other CNG <compressed natural gas> equipment intended for use
2-1 or used in any building or public place by the general public or in
2-2 conjunction with a motor vehicle or mobile fuel system fueled by
2-3 compressed natural gas and any system or facilities <of equipment>
2-4 designed to be used or used in the compression, sale, storage,
2-5 transportation for delivery, or distribution of compressed natural
2-6 gas in portable CNG cylinders, but does not include <a> natural gas
2-7 facilities, equipment, or pipelines <pipeline> located upstream of
2-8 the inlet of a <the> compressor devoted entirely to compressed
2-9 natural gas.
2-10 (7) "LNG system" means a system of safety devices,
2-11 containers, piping, fittings, valves, compressors, regulators,
2-12 gauges, relief devices, vents, installation fixtures, and other LNG
2-13 equipment intended for use or used with a motor vehicle fueled by
2-14 liquefied natural gas and any system or facilities designed to be
2-15 used or used in the liquefaction, sale, storage, transportation for
2-16 delivery, or distribution of liquefied natural gas.
2-17 (8) <(5)> "Motor vehicle" means any <a> self-propelled
2-18 vehicle licensed for highway use or used on a public highway.
2-19 (9) <(6)> "Compressed natural gas cargo tank" means a
2-20 container built in accordance with A.S.M.E. or D.O.T.
2-21 specifications and used to transport compressed natural gas for
2-22 delivery.
2-23 (10) "Liquefied natural gas cargo tank" means a
2-24 container built in accordance with A.S.M.E. or D.O.T.
2-25 specifications and used to transport liquefied natural gas for
3-1 delivery.
3-2 (11) "Mobile fuel system" means a CNG or LNG system to
3-3 supply natural gas fuel to an auxiliary engine other than the
3-4 engine used to propel the vehicle or for other uses on the vehicle.
3-5 (12) "Motor fuel system" means a CNG or LNG system to
3-6 supply natural gas as a fuel for an engine used to propel the
3-7 vehicle.
3-8 (13) "Registrant" means any individual exempt from the
3-9 licensing requirements as established by rule of the commission who
3-10 is required to register with the commission, any person qualified
3-11 by examination by the commission, or any person who applies for
3-12 registration with the commission. Registrant includes an employee
3-13 of a licensee who performs CNG-related or LNG-related activities.
3-14 Sec. 116.002. Exceptions. This chapter does not apply to:
3-15 (1) the production, transportation, storage, sale, or
3-16 distribution of natural gas that is not included in the definition
3-17 of compressed natural gas or liquefied natural gas; <or>
3-18 (2) the production, transportation, storage, sale, or
3-19 distribution of natural gas that is subject to commission
3-20 jurisdiction under the Gas Utility Regulatory Act (Article
3-21 1446e, Revised Statutes) or the Cox law (Title 102, Revised
3-22 Statutes);
3-23 (3) pipelines, fixtures, and other equipment used in
3-24 the natural gas industry that are not used or designed to be used
3-25 as part of a CNG or LNG system; or
4-1 (4) pipelines, fixtures, equipment, or facilities to
4-2 the extent that they are subject to the safety regulations
4-3 promulgated and enforced by the commission pursuant to Chapter 117,
4-4 Natural Resources Code, or Article 6053-1, Revised Statutes.
4-5 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
4-6 Sec. 116.011. Administration. The commission shall
4-7 administer and enforce this chapter and rules and standards adopted
4-8 under this chapter relating to compressed natural gas and liquefied
4-9 natural gas.
4-10 Sec. 116.012. RULES AND STANDARDS. To protect the health,
4-11 safety, and welfare of the general public, the commission shall
4-12 adopt necessary rules and standards relating to the work of
4-13 compression and liquefaction, storage, sale or dispensing, transfer
4-14 or transportation, use or consumption, and disposal of compressed
4-15 natural gas or liquefied natural gas <compressed natural gas work
4-16 and operations>.
4-17 Sec. 116.013. National Codes. The commission may adopt by
4-18 reference in its rules all or part of the published codes of
4-19 nationally recognized societies as standards to be met in the
4-20 design, construction, fabrication, assembly, installation, use, and
4-21 maintenance of CNG or LNG <compressed natural gas> components and
4-22 equipment.
4-23 Sec. 116.014. Fees. (a) Fees collected by the commission
4-24 under Section 116.034 of this code for training, examinations, and
4-25 seminars must be deposited in a special fund in the state treasury
5-1 designated as the CNG and LNG <compressed natural gas> examination
5-2 fund. The commission shall use money in this fund to pay the cost
5-3 of training, examinations, and seminars sponsored <furnished> or
5-4 administered by the commission.
5-5 (b) Except as provided by Subsection (a) of this section,
5-6 money collected by the commission as fees under this chapter shall
5-7 be deposited in the general revenue fund.
5-8 Sec. 116.015. Entry On Property; Inspection AND
5-9 INVESTIGATION. (a) An employee, agent, or inspector of the
5-10 commission may enter the premises of a licensee <property of a
5-11 person licensed> under this chapter or any building or other
5-12 premises open to the public or inspect any CNG or LNG system or
5-13 motor vehicle equipped with CNG or LNG equipment at any reasonable
5-14 time for the purpose of determining and verifying <and may inspect
5-15 any motor vehicle equipped with compressed natural gas equipment to
5-16 determine if the licensee is complying with or if the motor vehicle
5-17 is in> compliance with this chapter and rules of the commission
5-18 adopted under this chapter.
5-19 (b) Any authorized representative of the LPG division may
5-20 enter any building or premises where an accident has occurred in
5-21 which CNG or LNG was a probable cause for purposes of investigating
5-22 the cause, origin, and circumstances of such accident. The LPG
5-23 division may request that any state or local authority having
5-24 jurisdiction take appropriate action as may be necessary for
5-25 preservation of property and premises.
6-1 SUBCHAPTER C. LICENSING AND REGISTRATION
6-2 Sec. 116.031. LICENSE REQUIREMENT. (a) Unless otherwise
6-3 provided in this chapter or by commission rule, a person shall be
6-4 required to obtain a license from the commission to engage in any
6-5 of the following activities <a person has obtained a license from
6-6 the commission under this chapter, the person may not engage in the
6-7 following work>:
6-8 (1) <cylinder> work that includes the manufacture,
6-9 assembly, repair, testing, sale, installation, or subframing of CNG
6-10 cylinders or LNG containers for use in this state;
6-11 (2) systems work that includes the sale, installation,
6-12 modification, or servicing <service, or repair> of CNG or LNG
6-13 systems for use in this state, including the installation,
6-14 modification, or servicing by any person, except a political
6-15 subdivision, of a CNG or LNG motor fuel system or mobile fuel
6-16 system on a vehicle used in the transportation of the general
6-17 public; or
6-18 (3) product work that includes the sale, storage,
6-19 transportation for delivery, or dispensing of CNG or LNG
6-20 <compressed natural gas> in this state.
6-21 (b) A license obtained by a partnership, corporation, or
6-22 other legal entity extends to the entity's employees who are
6-23 performing CNG or LNG <compressed natural gas> work, provided that
6-24 each employee is qualified and registered as required by rules
6-25 adopted by the commission.
7-1 (c) No license is required by an original vehicle
7-2 manufacturer or a subcontractor of such manufacturer for the
7-3 installation and sale of a new CNG or LNG system when such system
7-4 is installed on a new original vehicle fueled by CNG or LNG.
7-5 (d) The commission by rule may provide for the annual
7-6 registration of all individuals performing CNG-related or
7-7 LNG-related activities who are exempt from the licensing
7-8 requirements of the commission. Employees of a political
7-9 subdivision are not required to be licensed or registered under
7-10 this chapter.
7-11 Sec. 116.032. LICENSE <CATEGORIES> AND REGISTRATION FEES.
7-12 (a) The commission shall adopt rules establishing registration
7-13 fees and license categories and license fees to be charged for
7-14 application for and issuance and renewal of a license or
7-15 registration <licenses in each category>.
7-16 (b) The commission may establish fees for each category of
7-17 license. A license fee may not exceed $1,000.
7-18 Sec. 116.033. Application and Renewal Procedures. The
7-19 commission shall adopt rules establishing procedures for submitting
7-20 and processing applications for issuance and renewal of licenses
7-21 and for registration.
7-22 Sec. 116.034. Examination and Seminar Requirements.
7-23 (a) The commission shall adopt rules providing the training,
7-24 examination, and seminar attendance requirements for persons who
7-25 are required or who wish to be licensed or registered under this
8-1 chapter.
8-2 (b) The commission may adopt a reasonable fee to cover the
8-3 cost of any training, examination, or seminar required by and
8-4 sponsored <furnished> or administered by the commission.
8-5 (c) Before a license or registration may be issued, the
8-6 person to be licensed or registered must satisfactorily complete
8-7 the training, examinations, and seminars required by the
8-8 commission.
8-9 Sec. 116.035. Denial of License. The commission may deny
8-10 issuance or renewal of a license or registration to any person who
8-11 fails to qualify under the requirements of this chapter and rules
8-12 adopted by the commission under this chapter. The commission shall
8-13 give written notice to an applicant for the issuance or renewal of
8-14 a license or for registration of the denial of the license or
8-15 registration and the reasons for denial.
8-16 Sec. 116.036. Insurance Requirement. (a) All licensees <A
8-17 person licensed under this chapter> must acquire and maintain
8-18 appropriate workers' compensation or coverage for its employees
8-19 under policies of work-related accident, disability, and health
8-20 insurance, including coverage for death benefits, from an insurance
8-21 carrier authorized to provide coverage in this state and other
8-22 insurance coverage required by the commission in the amounts
8-23 required by the commission.
8-24 (b) Notwithstanding Subsection (a) of this section, a state
8-25 agency or institution, county, municipality, school district, or
9-1 other governmental subdivision may submit evidence of workers'
9-2 compensation coverage by self-insurance if permitted by the Texas
9-3 Workers' Compensation Act (Article 8308-1.01 et seq., Vernon's
9-4 Texas Civil Statutes).
9-5 (c) The commission shall adopt rules establishing specific
9-6 requirements for insurance coverage under this chapter and evidence
9-7 of such coverage. The types and amounts of insurance coverage
9-8 required by the commission shall be based on the type and category
9-9 of licensed activity.
9-10 (d) <(c)> The commission may not issue or renew a license,
9-11 and a licensee may not perform any licensed activity unless the
9-12 insurance coverage required by the commission's rules is in effect
9-13 and evidence of that coverage is filed with the commission as
9-14 required by commission rule.
9-15 (e) Every motor vehicle operated in this state as a
9-16 conveyance for a CNG or an LNG cargo tank must meet motor vehicle
9-17 insurance requirements established by the commission.
9-18 Sec. 116.037. Suspension and Revocation of License.
9-19 (a) The commission shall notify a licensee or registrant in
9-20 writing if it finds probable violation or noncompliance with this
9-21 chapter or the rules adopted under this chapter.
9-22 (b) The notice shall specify the particular acts, omissions,
9-23 or conduct comprising the alleged violation and shall designate a
9-24 date by which the violation must be corrected or discontinued.
9-25 (c) The licensee or registrant shall report timely
10-1 compliance or shall request extension of time for compliance if
10-2 considered necessary.
10-3 (d) If a licensee or registrant objects to the complaint or
10-4 requirements under this section, or if the commission determines
10-5 that the licensee or registrant is not proceeding adequately to
10-6 compliance, then, on written request of the licensee or registrant
10-7 or order of the commission, a public hearing must be conducted.
10-8 (e) If the commission or division determines that the
10-9 probable violation or noncompliance constitutes an immediate danger
10-10 to the public health, safety, and welfare, it shall require the
10-11 immediate cessation of the probable violation or noncompliance and
10-12 proceed with a hearing.
10-13 (f) If the commission finds that the licensee or registrant
10-14 has violated or failed to comply with or is violating or failing to
10-15 comply with this chapter or a rule adopted under this chapter, the
10-16 commission may suspend the license or registration for a definite
10-17 period not to exceed 90 days or may revoke the license.
10-18 (g) Any party to a proceeding before the commission is
10-19 entitled to judicial review under the substantial evidence rule.
10-20 Sec. 116.038. STAGGERED RENEWAL OF LICENSES. The commission
10-21 by rule may adopt a system under which license and registration
10-22 fees required by Section 116.032 of this code expire on various
10-23 dates during the year. For the year in which the license and
10-24 registration expiration dates are changed, license and registration
10-25 fees payable on a specified date shall be prorated on a monthly
11-1 basis so that each licensee shall pay only that portion of the
11-2 license and registration fees that is allowable to the number of
11-3 months during which the license and registration is valid. On
11-4 renewal of the license and registration on the new expiration date,
11-5 the total license and registration fees are payable.
11-6 SUBCHAPTER D. MOTOR VEHICLE REGULATION
11-7 Sec. 116.071. Registration Rules. The commission shall
11-8 adopt rules relating to the registration of motor vehicles that are
11-9 equipped with a CNG or LNG <compressed natural gas> cargo tank
11-10 <tanks> and motor vehicles used principally to transport compressed
11-11 natural gas or liquefied natural gas in portable cylinders or
11-12 containers.
11-13 Sec. 116.072. Registration. (a) Each motor vehicle that is
11-14 equipped with a CNG or LNG <compressed natural gas> cargo tank and
11-15 each motor vehicle used principally to transport CNG or LNG
11-16 <compressed natural gas> in portable cylinders or containers must
11-17 be registered with the commission as provided by commission rules.
11-18 (b) The commission may not impose a fee for registration
11-19 under this section on a motor vehicle owned by a county.
11-20 (c) The commission by rule shall establish a reasonable,
11-21 nonrefundable registration and transfer fee for each CNG or LNG
11-22 cargo trailer, semitrailer, bobtail, and cylinder-delivery unit
11-23 registered or transferred as follows:
11-24 (1) the registration fee established by the commission
11-25 shall not be less than $100 nor more than $500; and
12-1 (2) the transfer fee established by the commission
12-2 shall not be less than $25 nor more than $100.
12-3 Sec. 116.073. Safety Rules. The commission shall adopt
12-4 safety rules relating to the transportation of compressed natural
12-5 gas and liquefied natural gas in this state.
12-6 Sec. 116.074. Cooperation of the Department of Public
12-7 Safety. The Department of Public Safety shall cooperate with the
12-8 commission in administering and enforcing this chapter and rules of
12-9 the commission relating to regulation of motor vehicles required to
12-10 be registered under this subchapter.
12-11 Sec. 116.075. <SUSPENSION AND REVOCATION OF REGISTRATION.
12-12 (a) The commission shall notify a registrant in writing if it
12-13 finds probable violation or noncompliance with this chapter or the
12-14 safety rules adopted under this chapter.>
12-15 <(b) The notice shall specify the particular acts,
12-16 omissions, or conduct comprising the alleged violation and shall
12-17 designate a date by which the violation must be corrected or
12-18 discontinued.>
12-19 <(c) The registrant shall report timely compliance or shall
12-20 request extension of time for compliance if considered necessary.>
12-21 <(d) If a registrant objects to the complaint or
12-22 requirements under this section, or if the commission determines
12-23 that the registrant is not proceeding adequately to compliance,
12-24 then, on written request of the registrant or order of the
12-25 commission, a public hearing must be conducted.>
13-1 <(e) If the commission or division determines that the
13-2 probable violation or noncompliance constitutes an immediate danger
13-3 to the public health, safety, and welfare, it shall require the
13-4 immediate cessation of the probable violation or noncompliance and
13-5 proceed with a hearing.>
13-6 <(f) If the commission finds that the registrant has
13-7 violated or failed to comply with or is violating or failing to
13-8 comply with this chapter or a rule adopted under this chapter, the
13-9 commission may suspend the registration for a definite period not
13-10 to exceed 90 days or may revoke the registration.>
13-11 <(g) Any party to a proceeding before the commission is
13-12 entitled to judicial review under the substantial evidence rule.>
13-13 <Sec. 116.076.> APPLICATION OF OTHER LAWS. This chapter and
13-14 the rules adopted under this chapter do not modify, amend, or
13-15 repeal any laws of this state relating to the regulation of motor
13-16 carriers.
13-17 SUBCHAPTER E. MISCELLANEOUS PROVISIONS
13-18 Sec. 116.101. MALODORANTS. Compressed natural gas must be
13-19 odorized as provided by Section 2, Article 6053, Revised Statutes,
13-20 as amended.
13-21 Sec. 116.102. Testing Laboratories. The commission shall
13-22 adopt rules relating to testing of CNG and LNG <compressed natural
13-23 gas> equipment and to the qualifications required of the persons
13-24 who are to perform those tests.
13-25 Sec. 116.103. Warning Tags. (a) An employee, agent, or
14-1 inspector of the commission may declare unsafe or dangerous for
14-2 service any motor vehicle required to be registered under this
14-3 chapter or any CNG or LNG equipment or system<, compressed natural
14-4 gas equipment, or CNG system> that is defective or that does not
14-5 otherwise conform to the safety requirements of this chapter and
14-6 the rules adopted under this chapter and shall attach a warning tag
14-7 to the motor vehicle, equipment, or system in a conspicuous
14-8 location.
14-9 (b) A person may not sell, furnish, deliver, or supply
14-10 compressed natural gas and liquefied natural gas for use or
14-11 consumption by or through a motor vehicle or system in a public
14-12 place or operate a motor vehicle having CNG or LNG <compressed
14-13 natural gas> equipment to which a warning tag is attached.
14-14 (c) A warning tag may be removed on approval of the
14-15 commission or by a person designated by the commission to remove
14-16 the tag. A warning tag may not be removed by any person who is not
14-17 authorized to remove the tag by the commission.
14-18 SECTION 2. This Act takes effect September 1, 1993.
14-19 SECTION 3. The importance of this legislation and the
14-20 crowded condition of the calendars in both houses create an
14-21 emergency and an imperative public necessity that the
14-22 constitutional rule requiring bills to be read on three several
14-23 days in each house be suspended, and this rule is hereby suspended.