1-1 By: Armbrister S.B. No. 576
1-2 (In the Senate - Filed March 2, 1993; March 3, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 2, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; April 2, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 576 By: Armbrister
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the regulation of the compressed natural gas and
1-24 liquefied natural gas industry.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subchapters A through E, Chapter 116, Natural
1-27 Resources Code, are amended to read as follows:
1-28 SUBCHAPTER A. GENERAL PROVISIONS
1-29 Sec. 116.001. Definitions. In this chapter:
1-30 (1) "Commission" means the Railroad Commission of
1-31 Texas.
1-32 (2) "Compressed natural gas" or "CNG" means natural
1-33 gas primarily consisting of methane in a gaseous state that is
1-34 compressed and used, stored, sold, transported, or distributed for
1-35 use by or through a CNG system.
1-36 (3) "Liquefied natural gas" or "LNG" means natural gas
1-37 primarily consisting of methane in liquid or semisolid state.
1-38 (4) "CNG cylinder" means a cylinder or other container
1-39 designed for use or used as part of a CNG system.
1-40 (5) "LNG container" means a container designed for use
1-41 or used as part of an LNG system.
1-42 (6) <(4)> "CNG system" means a system of safety
1-43 devices, cylinders, piping, fittings, valves, compressors,
1-44 regulators, gauges, relief devices, vents, installation fixtures,
1-45 and other CNG <compressed natural gas> equipment intended for use
1-46 or used in any building or public place by the general public or in
1-47 conjunction with a motor vehicle or mobile fuel system fueled by
1-48 compressed natural gas and any system or facilities <of equipment>
1-49 designed to be used or used in the compression, sale, storage,
1-50 transportation for delivery, or distribution of compressed natural
1-51 gas in portable CNG cylinders, but does not include <a> natural gas
1-52 facilities, equipment, or pipelines <pipeline> located upstream of
1-53 the inlet of a <the> compressor devoted entirely to compressed
1-54 natural gas.
1-55 (7) "LNG system" means a system of safety devices,
1-56 containers, piping, fittings, valves, compressors, regulators,
1-57 gauges, relief devices, vents, installation fixtures, and other LNG
1-58 equipment intended for use or used with a motor vehicle fueled by
1-59 liquefied natural gas and any system or facilities designed to be
1-60 used or used in the liquefaction, sale, storage, transportation for
1-61 delivery, or distribution of liquefied natural gas.
1-62 (8) <(5)> "Motor vehicle" means any <a> self-propelled
1-63 vehicle licensed for highway use or used on a public highway.
1-64 (9) <(6)> "Compressed natural gas cargo tank" means a
1-65 container built in accordance with A.S.M.E. or D.O.T.
1-66 specifications and used to transport compressed natural gas for
1-67 delivery.
1-68 (10) "Liquefied natural gas cargo tank" means a
2-1 container built in accordance with A.S.M.E. or D.O.T.
2-2 specifications and used to transport liquefied natural gas for
2-3 delivery.
2-4 (11) "Mobile fuel system" means a CNG or LNG system to
2-5 supply natural gas fuel to an auxiliary engine other than the
2-6 engine used to propel the vehicle or for other uses on the vehicle.
2-7 (12) "Motor fuel system" means a CNG or LNG system to
2-8 supply natural gas as a fuel for an engine used to propel the
2-9 vehicle.
2-10 (13) "Registrant" means any individual exempt from the
2-11 licensing requirements as established by rule of the commission who
2-12 is required to register with the commission, any person qualified
2-13 by examination by the commission, or any person who applies for
2-14 registration with the commission. Registrant includes an employee
2-15 of a licensee who performs CNG-related or LNG-related activities.
2-16 Sec. 116.002. Exceptions. This chapter does not apply to:
2-17 (1) the production, transportation, storage, sale, or
2-18 distribution of natural gas that is not included in the definition
2-19 of compressed natural gas or liquefied natural gas; <or>
2-20 (2) the production, transportation, storage, sale, or
2-21 distribution of natural gas that is subject to commission
2-22 jurisdiction under the Gas Utility Regulatory Act (Article
2-23 1446e, Revised Statutes) or the Cox law (Title 102, Revised
2-24 Statutes);
2-25 (3) pipelines, fixtures, and other equipment used in
2-26 the natural gas industry that are not used or designed to be used
2-27 as part of a CNG or LNG system; or
2-28 (4) pipelines, fixtures, equipment, or facilities to
2-29 the extent that they are subject to the safety regulations
2-30 promulgated and enforced by the commission pursuant to Chapter 117,
2-31 Natural Resources Code, or Article 6053-1, Revised Statutes.
2-32 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
2-33 Sec. 116.011. Administration. The commission shall
2-34 administer and enforce this chapter and rules and standards adopted
2-35 under this chapter relating to compressed natural gas and liquefied
2-36 natural gas.
2-37 Sec. 116.012. RULES AND STANDARDS. To protect the health,
2-38 safety, and welfare of the general public, the commission shall
2-39 adopt necessary rules and standards relating to the work of
2-40 compression and liquefaction, storage, sale or dispensing, transfer
2-41 or transportation, use or consumption, and disposal of compressed
2-42 natural gas or liquefied natural gas <compressed natural gas work
2-43 and operations>.
2-44 Sec. 116.013. National Codes. The commission may adopt by
2-45 reference in its rules all or part of the published codes of
2-46 nationally recognized societies as standards to be met in the
2-47 design, construction, fabrication, assembly, installation, use, and
2-48 maintenance of CNG or LNG <compressed natural gas> components and
2-49 equipment.
2-50 Sec. 116.014. Fees. (a) Fees collected by the commission
2-51 under Section 116.034 of this code for training, examinations, and
2-52 seminars must be deposited in a special fund in the state treasury
2-53 designated as the CNG and LNG <compressed natural gas> examination
2-54 fund. The commission shall use money in this fund to pay the cost
2-55 of training, examinations, and seminars sponsored <furnished> or
2-56 administered by the commission.
2-57 (b) Except as provided by Subsection (a) of this section,
2-58 money collected by the commission as fees under this chapter shall
2-59 be deposited in the general revenue fund.
2-60 Sec. 116.015. Entry On Property; Inspection AND
2-61 INVESTIGATION. (a) An employee, agent, or inspector of the
2-62 commission may enter the premises of a licensee <property of a
2-63 person licensed> under this chapter or any building or other
2-64 premises open to the public or inspect any CNG or LNG system or
2-65 motor vehicle equipped with CNG or LNG equipment at any reasonable
2-66 time for the purpose of determining and verifying <and may inspect
2-67 any motor vehicle equipped with compressed natural gas equipment to
2-68 determine if the licensee is complying with or if the motor vehicle
2-69 is in> compliance with this chapter and rules of the commission
2-70 adopted under this chapter.
3-1 (b) Any authorized representative of the LPG division may
3-2 enter any building or premises where an accident has occurred in
3-3 which CNG or LNG was a probable cause for purposes of investigating
3-4 the cause, origin, and circumstances of such accident. The LPG
3-5 division may request that any state or local authority having
3-6 jurisdiction take appropriate action as may be necessary for
3-7 preservation of property and premises.
3-8 SUBCHAPTER C. LICENSING AND REGISTRATION
3-9 Sec. 116.031. LICENSE REQUIREMENT. (a) Unless otherwise
3-10 provided in this chapter or by commission rule, a person shall be
3-11 required to obtain a license from the commission to engage in any
3-12 of the following activities <a person has obtained a license from
3-13 the commission under this chapter, the person may not engage in the
3-14 following work>:
3-15 (1) <cylinder> work that includes the manufacture,
3-16 assembly, repair, testing, sale, installation, or subframing of CNG
3-17 cylinders or LNG containers for use in this state;
3-18 (2) systems work that includes the sale, installation,
3-19 modification, or servicing <service, or repair> of CNG or LNG
3-20 systems for use in this state, including the installation,
3-21 modification, or servicing by any person, except a political
3-22 subdivision, of a CNG or LNG motor fuel system or mobile fuel
3-23 system on a vehicle used in the transportation of the general
3-24 public; or
3-25 (3) product work that includes the sale, storage,
3-26 transportation for delivery, or dispensing of CNG or LNG
3-27 <compressed natural gas> in this state.
3-28 (b) A license obtained by a partnership, corporation, or
3-29 other legal entity extends to the entity's employees who are
3-30 performing CNG or LNG <compressed natural gas> work, provided that
3-31 each employee is qualified and registered as required by rules
3-32 adopted by the commission.
3-33 (c) No license is required by an original vehicle
3-34 manufacturer or a subcontractor of such manufacturer for the
3-35 installation and sale of a new CNG or LNG system when such system
3-36 is installed on a new original vehicle fueled by CNG or LNG.
3-37 (d) The commission by rule may provide for the annual
3-38 registration of all individuals performing CNG-related or
3-39 LNG-related activities who are exempt from the licensing
3-40 requirements of the commission. Employees of a political
3-41 subdivision are not required to be licensed or registered under
3-42 this chapter.
3-43 Sec. 116.032. LICENSE <CATEGORIES> AND REGISTRATION FEES.
3-44 (a) The commission shall adopt rules establishing registration
3-45 fees and license categories and license fees to be charged for
3-46 application for and issuance and renewal of a license or
3-47 registration <licenses in each category>.
3-48 (b) The commission may establish fees for each category of
3-49 license. A license fee may not exceed $1,000.
3-50 Sec. 116.033. Application and Renewal Procedures. The
3-51 commission shall adopt rules establishing procedures for submitting
3-52 and processing applications for issuance and renewal of licenses
3-53 and for registration.
3-54 Sec. 116.034. Examination and Seminar Requirements.
3-55 (a) The commission shall adopt rules providing the training,
3-56 examination, and seminar attendance requirements for persons who
3-57 are required or who wish to be licensed or registered under this
3-58 chapter.
3-59 (b) The commission may adopt a reasonable fee to cover the
3-60 cost of any training, examination, or seminar required by and
3-61 sponsored <furnished> or administered by the commission.
3-62 (c) Before a license or registration may be issued, the
3-63 person to be licensed or registered must satisfactorily complete
3-64 the training, examinations, and seminars required by the
3-65 commission.
3-66 Sec. 116.035. Denial of License. The commission may deny
3-67 issuance or renewal of a license or registration to any person who
3-68 fails to qualify under the requirements of this chapter and rules
3-69 adopted by the commission under this chapter. The commission shall
3-70 give written notice to an applicant for the issuance or renewal of
4-1 a license or for registration of the denial of the license or
4-2 registration and the reasons for denial.
4-3 Sec. 116.036. Insurance Requirement. (a) All licensees <A
4-4 person licensed under this chapter> must acquire and maintain
4-5 appropriate workers' compensation or coverage for its employees
4-6 under policies of work-related accident, disability, and health
4-7 insurance, including coverage for death benefits, from an insurance
4-8 carrier authorized to provide coverage in this state and other
4-9 insurance coverage required by the commission in the amounts
4-10 required by the commission.
4-11 (b) Notwithstanding Subsection (a) of this section, a state
4-12 agency or institution, county, municipality, school district, or
4-13 other governmental subdivision may submit evidence of workers'
4-14 compensation coverage by self-insurance if permitted by the Texas
4-15 Workers' Compensation Act (Article 8308-1.01 et seq., Vernon's
4-16 Texas Civil Statutes).
4-17 (c) The commission shall adopt rules establishing specific
4-18 requirements for insurance coverage under this chapter and evidence
4-19 of such coverage. The types and amounts of insurance coverage
4-20 required by the commission shall be based on the type and category
4-21 of licensed activity.
4-22 (d) <(c)> The commission may not issue or renew a license,
4-23 and a licensee may not perform any licensed activity unless the
4-24 insurance coverage required by the commission's rules is in effect
4-25 and evidence of that coverage is filed with the commission as
4-26 required by commission rule.
4-27 (e) Every motor vehicle operated in this state as a
4-28 conveyance for a CNG or an LNG cargo tank must meet motor vehicle
4-29 insurance requirements established by the commission.
4-30 Sec. 116.037. Suspension and Revocation of License.
4-31 (a) The commission shall notify a licensee or registrant in
4-32 writing if it finds probable violation or noncompliance with this
4-33 chapter or the rules adopted under this chapter.
4-34 (b) The notice shall specify the particular acts, omissions,
4-35 or conduct comprising the alleged violation and shall designate a
4-36 date by which the violation must be corrected or discontinued.
4-37 (c) The licensee or registrant shall report timely
4-38 compliance or shall request extension of time for compliance if
4-39 considered necessary.
4-40 (d) If a licensee or registrant objects to the complaint or
4-41 requirements under this section, or if the commission determines
4-42 that the licensee or registrant is not proceeding adequately to
4-43 compliance, then, on written request of the licensee or registrant
4-44 or order of the commission, a public hearing must be conducted.
4-45 (e) If the commission or division determines that the
4-46 probable violation or noncompliance constitutes an immediate danger
4-47 to the public health, safety, and welfare, it shall require the
4-48 immediate cessation of the probable violation or noncompliance and
4-49 proceed with a hearing.
4-50 (f) If the commission finds that the licensee or registrant
4-51 has violated or failed to comply with or is violating or failing to
4-52 comply with this chapter or a rule adopted under this chapter, the
4-53 commission may suspend the license or registration for a definite
4-54 period not to exceed 90 days or may revoke the license.
4-55 (g) Any party to a proceeding before the commission is
4-56 entitled to judicial review under the substantial evidence rule.
4-57 Sec. 116.038. STAGGERED RENEWAL OF LICENSES. The commission
4-58 by rule may adopt a system under which license and registration
4-59 fees required by Section 116.032 of this code expire on various
4-60 dates during the year. For the year in which the license and
4-61 registration expiration dates are changed, license and registration
4-62 fees payable on a specified date shall be prorated on a monthly
4-63 basis so that each licensee shall pay only that portion of the
4-64 license and registration fees that is allowable to the number of
4-65 months during which the license and registration is valid. On
4-66 renewal of the license and registration on the new expiration date,
4-67 the total license and registration fees are payable.
4-68 SUBCHAPTER D. MOTOR VEHICLE REGULATION
4-69 Sec. 116.071. Registration Rules. The commission shall
4-70 adopt rules relating to the registration of motor vehicles that are
5-1 equipped with a CNG or LNG <compressed natural gas> cargo tank
5-2 <tanks> and motor vehicles used principally to transport compressed
5-3 natural gas or liquefied natural gas in portable cylinders or
5-4 containers.
5-5 Sec. 116.072. Registration. (a) Each motor vehicle that is
5-6 equipped with a CNG or LNG <compressed natural gas> cargo tank and
5-7 each motor vehicle used principally to transport CNG or LNG
5-8 <compressed natural gas> in portable cylinders or containers must
5-9 be registered with the commission as provided by commission rules.
5-10 (b) The commission may not impose a fee for registration
5-11 under this section on a motor vehicle owned by a county.
5-12 (c) The commission by rule shall establish a reasonable,
5-13 nonrefundable registration and transfer fee for each CNG or LNG
5-14 cargo trailer, semitrailer, bobtail, and cylinder-delivery unit
5-15 registered or transferred as follows:
5-16 (1) the registration fee established by the commission
5-17 shall not be less than $100 nor more than $500; and
5-18 (2) the transfer fee established by the commission
5-19 shall not be less than $25 nor more than $100.
5-20 Sec. 116.073. Safety Rules. The commission shall adopt
5-21 safety rules relating to the transportation of compressed natural
5-22 gas and liquefied natural gas in this state.
5-23 Sec. 116.074. Cooperation of the Department of Public
5-24 Safety. The Department of Public Safety shall cooperate with the
5-25 commission in administering and enforcing this chapter and rules of
5-26 the commission relating to regulation of motor vehicles required to
5-27 be registered under this subchapter.
5-28 Sec. 116.075. <SUSPENSION AND REVOCATION OF REGISTRATION.
5-29 (a) The commission shall notify a registrant in writing if it
5-30 finds probable violation or noncompliance with this chapter or the
5-31 safety rules adopted under this chapter.>
5-32 <(b) The notice shall specify the particular acts,
5-33 omissions, or conduct comprising the alleged violation and shall
5-34 designate a date by which the violation must be corrected or
5-35 discontinued.>
5-36 <(c) The registrant shall report timely compliance or shall
5-37 request extension of time for compliance if considered necessary.>
5-38 <(d) If a registrant objects to the complaint or
5-39 requirements under this section, or if the commission determines
5-40 that the registrant is not proceeding adequately to compliance,
5-41 then, on written request of the registrant or order of the
5-42 commission, a public hearing must be conducted.>
5-43 <(e) If the commission or division determines that the
5-44 probable violation or noncompliance constitutes an immediate danger
5-45 to the public health, safety, and welfare, it shall require the
5-46 immediate cessation of the probable violation or noncompliance and
5-47 proceed with a hearing.>
5-48 <(f) If the commission finds that the registrant has
5-49 violated or failed to comply with or is violating or failing to
5-50 comply with this chapter or a rule adopted under this chapter, the
5-51 commission may suspend the registration for a definite period not
5-52 to exceed 90 days or may revoke the registration.>
5-53 <(g) Any party to a proceeding before the commission is
5-54 entitled to judicial review under the substantial evidence rule.>
5-55 <Sec. 116.076.> APPLICATION OF OTHER LAWS. This chapter and
5-56 the rules adopted under this chapter do not modify, amend, or
5-57 repeal any laws of this state relating to the regulation of motor
5-58 carriers.
5-59 SUBCHAPTER E. MISCELLANEOUS PROVISIONS
5-60 Sec. 116.101. MALODORANTS. Compressed natural gas must be
5-61 odorized as provided by Section 2, Article 6053, Revised Statutes,
5-62 as amended.
5-63 Sec. 116.102. Testing Laboratories. The commission shall
5-64 adopt rules relating to testing of CNG and LNG <compressed natural
5-65 gas> equipment and to the qualifications required of the persons
5-66 who are to perform those tests.
5-67 Sec. 116.103. Warning Tags. (a) An employee, agent, or
5-68 inspector of the commission may declare unsafe or dangerous for
5-69 service any motor vehicle required to be registered under this
5-70 chapter or any CNG or LNG equipment or system<, compressed natural
6-1 gas equipment, or CNG system> that is defective or that does not
6-2 otherwise conform to the safety requirements of this chapter and
6-3 the rules adopted under this chapter and shall attach a warning tag
6-4 to the motor vehicle, equipment, or system in a conspicuous
6-5 location.
6-6 (b) A person may not sell, furnish, deliver, or supply
6-7 compressed natural gas and liquefied natural gas for use or
6-8 consumption by or through a motor vehicle or system in a public
6-9 place or operate a motor vehicle having CNG or LNG <compressed
6-10 natural gas> equipment to which a warning tag is attached.
6-11 (c) A warning tag may be removed on approval of the
6-12 commission or by a person designated by the commission to remove
6-13 the tag. A warning tag may not be removed by any person who is not
6-14 authorized to remove the tag by the commission.
6-15 SECTION 2. This Act takes effect September 1, 1993.
6-16 SECTION 3. The importance of this legislation and the
6-17 crowded condition of the calendars in both houses create an
6-18 emergency and an imperative public necessity that the
6-19 constitutional rule requiring bills to be read on three several
6-20 days in each house be suspended, and this rule is hereby suspended.
6-21 * * * * *
6-22 Austin,
6-23 Texas
6-24 April 2, 1993
6-25 Hon. Bob Bullock
6-26 President of the Senate
6-27 Sir:
6-28 We, your Committee on Natural Resources to which was referred S.B.
6-29 No. 576, have had the same under consideration, and I am instructed
6-30 to report it back to the Senate with the recommendation that it do
6-31 not pass, but that the Committee Substitute adopted in lieu thereof
6-32 do pass and be printed.
6-33 Sims,
6-34 Chairman
6-35 * * * * *
6-36 WITNESSES
6-37 FOR AGAINST ON
6-38 ___________________________________________________________________
6-39 Name: David John Forgash x
6-40 Representing: Liquid Carbonic Industries
6-41 City: Chicago, Il.
6-42 -------------------------------------------------------------------
6-43 Name: Edward H. Smith x
6-44 Representing: Liquid Carbonic Ind.
6-45 City: El Paso
6-46 -------------------------------------------------------------------
6-47 Name: Thomas D. Petru x
6-48 Representing: Tx Railroad Commission
6-49 City: Austin
6-50 -------------------------------------------------------------------