By: Armbrister S.B. No. 576
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of compressed natural gas and liquefied
1-2 natural gas industry.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. SUBCHAPTERS A through E of 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.
1-8 In this chapter:
1-9 (1) "Commission" means the Railroad Commission of
1-10 Texas.
1-11 (2) "Compressed natural gas" or "CNG" means natural
1-12 gas primarily consisting of methane in a gaseous state that is
1-13 compressed and used, stored, sold, transported, or distributed for
1-14 use by or through a CNG system.
1-15 (3) "Liquefied natural gas" or "LNG" means natural gas
1-16 primarily consisting of methane in liquid or semi-solid state.
1-17 (4) <(3)> "CNG cylinder" means a cylinder or other
1-18 container designed for use or used as part of a CNG system.
1-19 (5) "LNG container" means a container designed for use
1-20 or used as part of a LNG system.
1-21 (6) <(4)> "CNG system" means a system of safety
1-22 devices, cylinders, piping, fittings, valves, compressors,
1-23 regulators, gauges, relief devices, vents, installation fixtures,
2-1 and other CNG <compressed natural gas> equipment intended for use
2-2 or used in any building or public place by the general public or in
2-3 conjunction with a motor vehicle or mobile fuel system fueled by
2-4 compressed natural gas and any system or facilities <of equipment>
2-5 designed to be used or used in the compression, sale, storage,
2-6 transportation for delivery, or distribution of compressed natural
2-7 gas in portable CNG cylinders, but does not include <a> natural gas
2-8 facilities, equipment, or pipelines located upstream of the inlet
2-9 of a <the> compressor devoted entirely to compressed 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,
3-10 who is required to register with the commission, any person
3-11 qualified by examination by the commission, or any person who
3-12 applies for registration with the commission. Registrant includes
3-13 an employee of a licensee who performs CNG or LNG-related
3-14 activities.
3-15 Sec. 116.002. Exceptions.
3-16 This chapter does not apply to:
3-17 (1) the production, transportation, storage, sale, or
3-18 distribution of natural gas that is not included in the definition
3-19 of compressed natural gas or liquefied natural gas; <or>
3-20 (2) the production, transportation, storage, sale or
3-21 distribution of natural gas that is subject to commission
3-22 jurisdiction under the Gas Utility Regulatory Act (Article 1446e,
3-23 Revised Statutes) or the Cox Act (Articles 6050, et seq., Revised
3-24 Statutes);
3-25 (3) <(2)> pipelines, fixtures, and other equipment
4-1 used in the natural gas industry that are not used or designed to
4-2 be used as part of a CNG or LNG system; or
4-3 (4) pipelines, fixtures, equipment, or facilities to
4-4 the extent that they are subject to the safety regulations
4-5 promulgated and enforced by the commission pursuant to Chapter 117,
4-6 Natural Resources Code, or Article 6053-1, Revised Statutes.
4-7 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
4-8 Sec. 116.011. Administration.
4-9 The commission shall administer and enforce this chapter and
4-10 rules and standards adopted under this chapter relating to
4-11 compressed natural gas and liquefied natural gas.
4-12 Sec. 116.012. Rules and Standards.
4-13 To protect the health, safety, and welfare of the general
4-14 public, the commission shall adopt necessary rules and standards
4-15 relating to the work of compression and liquefaction, storage, sale
4-16 or dispensing, transfer or transportation, use or consumption, and
4-17 disposal of compressed natural gas or liquefied natural gas
4-18 <compressed natural gas work and operations>.
4-19 Sec. 116.013. National Codes.
4-20 The commission may adopt by reference in its rules all or
4-21 part of the published codes of nationally recognized societies as
4-22 standards to be met in the design, construction, fabrication,
4-23 assembly, installation, use, and maintenance of CNG <compressed
4-24 natural gas> or LNG components and equipment.
4-25 Sec. 116.014. Fees.
5-1 (a) Fees collected by the commission under Section 116.034
5-2 of this code for training, examinations, and seminars must be
5-3 deposited in a special fund in the state treasury designated as the
5-4 CNG <compressed natural gas> and LNG examination fund. The
5-5 commission shall use money in this fund to pay the cost of
5-6 training, examinations, and seminars sponsored <furnished> or
5-7 administered by the commission.
5-8 (b) Except as provided by Subsection (a) of this section,
5-9 money collected by the commission as fees under this chapter shall
5-10 be deposited in the general revenue fund.
5-11 Sec. 116.015. Entry on Property; Inspection and
5-12 Investigation.
5-13 (a) An employee, agent, or inspector of the commission may
5-14 enter the premises of a licensee <property of a person licensed>
5-15 under this chapter, or any building or other premises open to the
5-16 public, or inspect any CNG or LNG system or motor vehicle equipped
5-17 with CNG or LNG equipment at any reasonable time for the purpose of
5-18 determining and verifying <and may inspect any motor vehicle
5-19 equipped with compressed natural gas equipment to determine if the
5-20 licensee is complying with or if the motor vehicle is in>
5-21 compliance with this chapter and rules of the commission adopted
5-22 under this chapter.
5-23 (b) Any authorized representative of the LPG division may
5-24 enter any building or premises where an accident has occurred in
5-25 which CNG or LNG was a probable cause, for purposes of
6-1 investigating the cause, origin, and circumstances of such
6-2 accident. The LPG division may request that any state or local
6-3 authority having jurisdiction take appropriate action as may be
6-4 necessary for preservation of property and premises.
6-5 SUBCHAPTER C. LICENSING & REGISTRATION
6-6 Sec. 116.031. License Requirement.
6-7 (a) Unless otherwise provided in this chapter or by
6-8 commission rule, a person shall be required to obtain a license
6-9 from the commission to engage in any of the following activities <a
6-10 person has obtained a license from the commission under this
6-11 chapter, the person may not engage in the following work>:
6-12 (1) <cylinder> work that includes the manufacture,
6-13 assembly, repair, testing, sale, installation, or subframing of CNG
6-14 cylinders or LNG containers for use in this state;
6-15 (2) systems work that includes the sale, installation,
6-16 modification or service<, or repair> of CNG or LNG systems for use
6-17 in this state, including the installation, modification or service
6-18 by any person, except a political subdivision, of a CNG or LNG
6-19 motor fuel system or mobile fuel system on a vehicle used in the
6-20 transportation of the general public; or
6-21 (3) product work that includes the sale, storage,
6-22 transportation for delivery, or dispensing of CNG or LNG
6-23 <compressed natural gas> in this state.
6-24 (b) A license obtained by a partnership, corporation, or
6-25 other legal entity extends to the entity's employees who are
7-1 performing CNG or LNG <compressed natural gas> work, provided that
7-2 each employee is qualified and registered as required by rules
7-3 adopted by the commission.
7-4 (c) No license is required by an original vehicle
7-5 manufacturer or a subcontractor of such manufacturer for the
7-6 installation and sale of a new CNG or LNG system when such system
7-7 is installed on a new original vehicle fueled by CNG or LNG.
7-8 (d) The commission by rule may provide for the annual
7-9 registration of all individuals performing CNG or LNG-related
7-10 activities who are exempt from the licensing requirements of the
7-11 commission. Employees of a political subdivision are not required
7-12 to be licensed or registered under this chapter.
7-13 Sec. 116.032. License <Categories> and Registration Fees.
7-14 (a) The commission shall adopt rules establishing
7-15 registration fees and license categories and license fees to be
7-16 charged for application for and issuance and renewal of a license<s
7-17 in each category> or registration.
7-18 (b) The commission may establish fees for each category of
7-19 license. A license fee may not exceed $1,000.
7-20 Sec. 116.033. Application and Renewal Procedures.
7-21 The commission shall adopt rules establishing procedures for
7-22 submitting and processing applications for issuance and renewal of
7-23 licenses and for registration.
7-24 Sec. 116.034. Examination and Seminar Requirements.
7-25 (a) The commission shall adopt rules providing the training,
8-1 examination, and seminar attendance requirements for persons who
8-2 are required or who wish to be licensed or registered under this
8-3 chapter.
8-4 (b) The commission may adopt a reasonable fee to cover the
8-5 cost of any training, examination, or seminar required by and
8-6 sponsored <furnished> or administered by the commission.
8-7 (c) Before a license or registration may be issued, the
8-8 person to be licensed or registered must satisfactorily complete
8-9 the training, examinations, and seminars required by the
8-10 commission.
8-11 Sec. 116.035. Denial of License.
8-12 The commission may deny issuance or renewal of a license or
8-13 registration to any person who fails to qualify under the
8-14 requirements of this chapter and rules adopted by the commission
8-15 under this chapter. The commission shall give written notice to an
8-16 applicant for the issuance or renewal of a license or for
8-17 registration of the denial of the license or registration and the
8-18 reasons for denial.
8-19 Sec. 116.036. Insurance Requirement.
8-20 (a) All licensees <A person licensed under this chapter>
8-21 must acquire and maintain appropriate workers' compensation or
8-22 coverage for its employees under policies of work related accident,
8-23 disability and health insurance, including coverage for death
8-24 benefits, from an insurance carrier authorized to provide coverage
8-25 in this state and other insurance coverage required by the
9-1 commission in the amounts required by the commission.
9-2 (b) Notwithstanding Subsection (a), a state agency or
9-3 institution, county, municipality, school district or other
9-4 governmental subdivision may submit evidence of workers'
9-5 compensation coverage by self-insurance if permitted by the state
9-6 workers' compensation act.
9-7 (c) <(b)> The commission shall adopt rules establishing
9-8 specific requirements for insurance coverage under this chapter and
9-9 evidence of such coverage. The types and amounts of insurance
9-10 coverage required by the commission shall be based on the type and
9-11 category of licensed activity.
9-12 (d) <(c)> The commission may not issue or renew a license,
9-13 and a licensee may not perform any licensed activity unless the
9-14 insurance coverage required by the commission's rules is in effect
9-15 and evidence of that coverage is filed with the commission as
9-16 required by commission rule.
9-17 (e) Every motor vehicle operated in this state as a
9-18 conveyance for a CNG or an LNG cargo tank must meet motor vehicle
9-19 insurance requirements established by the commission.
9-20 Sec. 116.037. Suspension and Revocation of License.
9-21 (a) The commission shall notify a licensee or registrant in
9-22 writing if it finds probable violation or noncompliance with this
9-23 chapter or the rules adopted under this chapter.
9-24 (b) The notice shall specify the particular acts, omissions,
9-25 or conduct comprising the alleged violation and shall designate a
10-1 date by which the violation must be corrected or discontinued.
10-2 (c) The licensee or registrant shall report timely
10-3 compliance or shall request extension of time for compliance if
10-4 considered necessary.
10-5 (d) If a licensee or registrant objects to the complaint or
10-6 requirements under this section, or if the commission determines
10-7 that the licensee or registrant is not proceeding adequately to
10-8 compliance, then, on written request of the licensee or registrant
10-9 or order of the commission, a public hearing must be conducted.
10-10 (e) If the commission or division determines that the
10-11 probable violation or noncompliance constitutes an immediate danger
10-12 to the public health, safety, and welfare, it shall require the
10-13 immediate cessation of the probable violation or noncompliance and
10-14 proceed with a hearing.
10-15 (f) If the commission finds that the licensee or registrant
10-16 has violated or failed to comply with or is violating or failing to
10-17 comply with this chapter or a rule adopted under this chapter, the
10-18 commission may suspend the license or registration for a definite
10-19 period not to exceed 90 days or may revoke the license.
10-20 (g) Any party to a proceeding before the commission is
10-21 entitled to judicial review under the substantial evidence rule.
10-22 Sec. 116.038. Staggered Renewal of Licenses.
10-23 The commission, by rule, may adopt a system under which
10-24 license and registration fees required by section 116.014 of this
10-25 chapter expire on various dates during the year. For the year in
11-1 which the license and registration expiration dates are changed,
11-2 license and registration fees payable on a specified date shall be
11-3 pro-rated on a monthly basis so that each licensee shall pay only
11-4 that portion of the license and registration fees that is allowable
11-5 to the number of months during which the license and registration
11-6 is valid. On renewal of the license and registration on the new
11-7 expiration date, the total license and registration fees are
11-8 payable.
11-9 SUBCHAPTER D. MOTOR VEHICLE REGULATION
11-10 Sec. 116.071. Registration Rules.
11-11 The commission shall adopt rules relating to the registration
11-12 of motor vehicles that are equipped with a CNG or LNG <compressed
11-13 natural gas> cargo tank<s> and motor vehicles used principally to
11-14 transport compressed natural gas or liquefied natural gas in
11-15 portable cylinders or containers.
11-16 Sec. 116.072. Registration.
11-17 (a) Each motor vehicle that is equipped with a CNG or LNG
11-18 <compressed natural gas> cargo tank and each motor vehicle used
11-19 principally to transport CNG or LNG <compressed natural gas> in
11-20 portable cylinders or containers must be registered with the
11-21 commission as provided by commission rules.
11-22 (b) The commission may not impose a fee for registration
11-23 under this section on a motor vehicle owned by a county.
11-24 (c) The commission, by rule, shall establish a reasonable,
11-25 nonrefundable registration and transfer fee for each CNG or LNG
12-1 cargo trailer, semitrailer, bobtail, and cylinder delivery unit
12-2 registered or transferred as follows:
12-3 (1) The registration fee established by the commission
12-4 shall not be less than $100, nor more than $500.
12-5 (2) The transfer fee established by the commission
12-6 shall not be less than $25, nor more than $100.
12-7 Sec. 116.073. Safety Rules.
12-8 The commission shall adopt safety rules relating to the
12-9 transportation of compressed natural gas and liquefied natural gas
12-10 in this state.
12-11 Sec. 116.074. Cooperation of the Department of Public
12-12 Safety.
12-13 The Department of Public Safety shall cooperate with the
12-14 commission in administering and enforcing this chapter and rules of
12-15 the commission relating to regulation of motor vehicles required to
12-16 be registered under this subchapter.
12-17 <Sec. 116.075. SUSPENSION AND REVOCATION OF REGISTRATION.>
12-18 <(a) The commission shall notify a registrant in writing if
12-19 it finds probable violation or noncompliance with this chapter or
12-20 the safety rules adopted under this chapter.>
12-21 <(b) The notice shall specify the particular acts,
12-22 omissions, or conduct comprising the alleged violation and shall
12-23 designate a date by which the violation must be corrected or
12-24 discontinued.>
12-25 <(c) The registrant shall report timely compliance or shall
13-1 request extension of time for compliance if considered necessary.>
13-2 <(d) If a registrant objects to the complaint or
13-3 requirements under this section, or if the commission determines
13-4 that the registrant is not proceeding adequately to compliance,
13-5 then, on written request of the registrant or order of the
13-6 commission, a public hearing must be conducted.>
13-7 <(e) If the commission or division determines that the
13-8 probable violation or noncompliance constitutes an immediate danger
13-9 to the public health, safety, and welfare, it shall require the
13-10 immediate cessation of the probable violation or noncompliance and
13-11 proceed with a hearing.>
13-12 <(f) If the commission finds that the registrant has
13-13 violated or failed to comply with or is violating or failing to
13-14 comply with this chapter or a rule adopted under this chapter, the
13-15 commission may suspend the registration for a definite period not
13-16 to exceed 90 days or may revoke the registration.>
13-17 <(g) Any party to a proceeding before the commission is
13-18 entitled to judicial review under the substantial evidence rule.>
13-19 Sec. 116.075<6>. Application of Other Laws.
13-20 This chapter and the rules adopted under this chapter do not
13-21 modify, amend, or repeal any laws of this state relating to the
13-22 regulation of motor carriers.
13-23 SUBCHAPTER E. MISCELLANEOUS PROVISIONS
13-24 Sec. 116.101. Malodorants.
13-25 Compressed natural gas and liquefied natural gas must be
14-1 odorized as provided by Section 2, Article 6053, Revised Statutes,
14-2 as amended.
14-3 Sec. 116.102. Testing Laboratories.
14-4 The commission shall adopt rules relating to testing of CNG
14-5 and LNG <compressed natural gas> equipment and to the
14-6 qualifications required of the persons who are to perform those
14-7 tests.
14-8 Sec. 116.103. Warning Tags.
14-9 (a) An employee, agent, or inspector of the commission may
14-10 declare unsafe or dangerous for service any motor vehicle required
14-11 to be registered under this chapter, or any CNG or LNG equipment or
14-12 system <compressed natural gas equipment, or CNG system> that is
14-13 defective or that does not otherwise conform to the safety
14-14 requirements of this chapter and the rules adopted under this
14-15 chapter and shall attach a warning tag to the motor vehicle,
14-16 equipment, or system in a conspicuous location.
14-17 (b) A person may not sell, furnish, deliver, or supply
14-18 compressed natural gas and liquefied natural gas for use or
14-19 consumption by or through a motor vehicle or system in a public
14-20 place or operate a motor vehicle having CNG or LNG <compressed
14-21 natural gas> equipment to which a warning tag is attached.
14-22 (c) A warning tag may be removed on approval of the
14-23 commission or by a person designated by the commission to remove
14-24 the tag. A warning tag may not be removed by any person who is not
14-25 authorized to remove the tag by the commission.
15-1 SECTION 2. This Act takes effect on September 1, 1993.
15-2 SECTION 3. The importance of this legislation and the
15-3 crowded condition of the calendars in both houses create an
15-4 emergency and an imperative public necessity that the
15-5 constitutional rule requiring bills to be read on three several
15-6 days in each house be suspended, and this rule is hereby suspended.