BILL ANALYSIS

H.B. 2127

By: Harris

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that certain state licensing regulations regarding the manufacture of compressed natural gas (CNG) cylinders or liquefied natural gas (LNG) containers are duplicative with other industry standards and requirements. It has been suggested that these state regulations could be streamlined in order to lessen the regulatory impact on industry while still preserving public health and safety. H.B. 2127 seeks to address these issues by removing certain license requirements and providing for the registration of persons engaged in the manufacture of CNG cylinders or LNG containers.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Railroad Commission of Texas in SECTION 1 of this bill.

ANALYSIS

H.B. 2127 amends the Natural Resources Code to remove the requirement that a person obtain a license from the Railroad Commission of Texas (RRC) to engage in work that includes the manufacture of CNG cylinders or LNG containers for use in Texas or to engage in systems work that includes the sale of CNG or LNG systems for use in Texas. The bill requires the RRC to adopt rules providing for the registration of persons engaged in the manufacture of CNG cylinders or LNG containers for use in Texas.

EFFECTIVE DATE

September 1, 2019.