TITLE 16. ECONOMIC REGULATION

PART 1. RAILROAD COMMISSION OF TEXAS

CHAPTER 12. COAL MINING REGULATIONS

The Railroad Commission of Texas (Commission) proposes to amend, in Subchapter A, General, Division 1, General, §12.3 and §12.4, relating to Definitions; and Petitions to Initiate Rulemaking.

In Subchapter G, Surface Coal Mining and Reclamation Operations, Permits, and Coal Exploration Procedures Systems, Division 1, General Requirements for Permit and Exploration Procedure Systems under Regulatory Programs, the Commission proposes to amend §12.100, relating to Responsibilities.

In Subchapter G, Division 2, General Requirements for Permits and Permit Applications, the Commission proposes to amend §12.106 and §12.108, relating to Permit Application Filing Deadlines; and Permit Fees.

In Subchapter G, Division 4, Surface Mining Permit Applications--Minimum Requirements for Legal, Financial, Compliance, and Related Information, the Commission proposes a change in the Division title and amendments to §12.121, relating to Identification of Other Licenses and Permits.

In Subchapter G, Division 5, Surface Mining Permit Applications--Minimum Requirements for Information on Environmental Resources, the Commission proposes amendments to §12.126 and §12.137, relating to Description of Hydrology and Geology: General Requirements; and Cross Sections, Maps, and Plans.

In Subchapter G, Division 6, Surface Mining Permit Applications--Minimum Requirements for Reclamation and Operation Plan, the Commission proposes amendments to §§12.142, 12.146, 12.148, and 12.154, relating to Operation Plan: Maps and Plans; Reclamation Plan: Protection of Hydrologic Balance; Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments; and Road Systems and Support Facilities.

In Subchapter G, Division 7, Underground Mining Permit Applications--Minimum Requirements for Legal, Financial, Compliance, and Related Information, the Commission proposes changes to the Division title and amendments to §12.161, relating to Identification of Other Licenses and Permits.

In Subchapter G, Division 8, Underground Mining Permit Applications--Minimum Requirements for Information on Environmental Resources, the Commission proposes amendments to §12.172 and §12.183, relating to Description of Hydrology and Geology: General Requirements; and Cross Sections, Maps, and Plans.

In Subchapter G, Division 9, Underground Mining Permit Applications--Minimum Requirements for Reclamation and Operation Plan, the Commission proposes amendments to §§12.188, 12.190, 12.197, and 12.198, relating to Reclamation Plan: Protection of Hydrologic Balance; Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments; Operation Plan: Maps and Plans; and Road Systems and Support Facilities.

In Subchapter G, Division 11, Review, Public Participation, and Approval of Permit Applications and Permit Terms and Conditions, the Commission proposes amendments to §§12.207, 12.211, and 12.215, relating to Public Notices of Filing of Permit Applications; Public Hearing on Application; and Review of Permit Applications.

In Subchapter G, Division 13, Permit Reviews, Revisions, and Renewals, and Transfers, Sale, and Assignment of Rights Granted Under Permits, the Commission proposes amendments to §12.225, relating to Commission Review of Outstanding Permits.

In Subchapter K, Permanent Program Performance Standards, Division 2, Permanent Program Performance Standards--Surface Mining Activities, the Commission proposes amendments to §§12.341, 12.344, 12.347, 12.363, 12.366, 12.368, 12.369, 12.373, 12.376, 12.382, 12.398, 12.399, and 12.401, relating to Hydrologic Balance: Diversions; Hydrologic Balance: Siltation Structures; Hydrologic Balance: Permanent and Temporary Impoundments; Disposal of Excess Spoil: General Requirements; Disposal of Excess Spoil: Durable Rock Fills; Coal Processing Waste Banks: General Requirements; Coal Processing Waste Banks: Site Inspection; Coal Processing Waste: Burned Waste Utilization; Coal Mine Waste: Dams and Embankments: General Requirements; Pipelines; Cessation of Operations: Permanent; Postmining Land Use; and Primary Roads.

In Subchapter K, Division 3, Permanent Program Performance Standards--Underground Mining Activities, the Commission proposes amendments to §§12.511, 12.514, 12.517, 12.531, 12.534, 12.535, 12.536, 12.540, 12.543, 12.549, 12.567, 12.568, and 12.570, relating to Hydrologic Balance: Diversions; Hydrologic Balance: Siltation Structures; Hydrologic Balance: Permanent and Temporary Impoundments; Disposal of Underground Development Waste and Excess Spoil: General Requirements; Disposal of Underground Development Waste and Excess Spoil: Durable Rock Fills; Coal Mine Waste Banks: General Requirements; Coal Mine Waste Banks: Site Inspection; Coal Mine Waste: Burned-Waste Utilization; Coal Mine Waste: Dams and Embankments: General Requirements; Pipelines; Cessation of Operations: Permanent; Postmining Land Use; and Primary Roads.

In Subchapter L, Permanent Program Inspection and Enforcement Procedures, Division 1, Commission Inspection and Enforcement, the Commission proposes amendments to §12.676, relating to Alternative Enforcement, and in Division 2, Enforcement, the Commission proposes amendments to §12.679, relating to Suspension or Revocation of Permits.

The Commission proposes the amendments in order to better organize and clarify certain procedures, conform Commission rules to federal regulations and guidance such as the United States Department of Agriculture (USDA) Technical Release 60, update references to statutes or editions of external documents, update references to professional engineers and professional geoscientists, and make other nonsubstantive clarifying amendments such as making rules gender neutral and correcting internal cross-references.

Proposed amendments to §§12.100, 12.108, 12.121, 12.146, 12.161, 12.188, 12.225, 12.398, and 12.567 result from Commission staff recommendations to update, reorganize, or clarify certain procedures. The proposed amendments in §12.100 correspond to other proposed amendments in §12.398 and §12.567 to require operators to notify the Commission of the intent to permanently cease and abandon operations. In §12.108, the proposed amendments state that the annual fee for each acre of land within a permit area covered by a reclamation bond on December 31st of a year will be based on the number of bonded acres of land identified by the applicant on the map included in the permit and approved by the Commission. The amendments will require that, by December 31st of any given year, the permit bond map is updated to incorporate any releases of reclamation acreage that were approved during that year. On December 31st of each year, Commission staff will use the approved bond map on file to calculate the fee. In §12.121 and §12.161, the proposed amendments add the permit expiration date to list of information required to be submitted with an application to conduct the proposed surface mining activities. In §12.146 and §12.188, proposed amendments reorganize certain requirements for ease of reading and to assist Commission staff in checking that the requirements have been met; the proposed amendments in new subsection(d)(6) in both rules are made to ensure consistency with the corresponding federal rule.

Proposed amendments to §§12.344, 12.347, 12.376, 12.514, 12.517, and 12.543 update references to the United State Department of Agriculture's Technical Release 60 which was revised in 2005. Previously, the rules referenced the 1985 edition of Technical Release 60. In the 2005 version, several terms have been updated and those terms are proposed to be updated in the Commission's rules as well. For example, these proposed amendments replace the term "emergency spillways" with "auxiliary spillways" and change references to "Class B or C" criteria to "significant or high hazard class."

Certain amendments are proposed to update the terms "registered professional engineer" and "professional geologist" to "professional engineer" and "professional geoscientist," respectively. The updates ensure consistency with terms used by professional licensing boards. These amendments are proposed in the definitions of those terms in §12.3(132) and (133) with conforming amendments proposed in §§12.137, 12.142, 12.148, 12.154, 12.183, 12.190, 12.197, 12.198, 12.341, 12.363, 12.366, 12.368, 12.369, 12.373, 12.399, 12.401, 12.511, 12.531, 12.534, 12.535, 12.536, 12.540, 12.568, and 12.570.

Finally, other proposed nonsubstantive clarifying amendments to §§12.3(89), 12.4, 12.106, 12.126, 12.172, 12.207, 12.211, 12.215, 12.382, 12.549, 12.676, and 12.679 correct internal cross-references or references to statutes or editions of external documents, ensure consistency with state statutes, make rule wording gender neutral, or make grammatical corrections. For example, proposed amendments in §12.4 remove outdated requirements for petitions for rulemaking, which required that the Commission respond to a petition within 90 days of receipt. The proposed changes reference the Texas Administrative Procedure Act and the Commission's corresponding rule of practice and procedure, which require a response within 60 days of receipt. Proposed amendments in §12.106 change the required permit renewal application date to 120 days before the expiration of the permit to match the timeline in Texas Natural Resources Code §134.078.

Brent Elliott, Director, Surface Mining and Reclamation Division, has determined that during each year of the first five years the proposed amendments would be in effect, the fiscal effect on state government as a result of enforcing the proposed amendments would be zero. There are no fiscal impacts on local governments.

Mr. Elliott has determined that during each year of the first five years the proposed amendments would be in effect the fiscal impact on those required to comply with the proposed amendments would be minimal postage costs associated with the new notice requirement in §12.398 and §12.567.

Mr. Elliott has determined that the public benefit resulting from the proposed amendments is consistency with governing state statutes and federal rules, use of correct references, and updated rule language.

In accordance with Texas Government Code §2006.002, the Commission has determined that there will be no adverse economic effects on rural communities or small or micro-businesses resulting from the proposed amendments. The Commission notes there are no small businesses or micro-businesses, as those terms are defined in Texas Government Code §2006.001, holding coal mining permits from the Commission. Therefore, the Commission has not prepared the economic impact statement or regulatory flexibility analysis required under §2006.002(c).

The proposed amendments also will not affect a local economy; therefore, the Commission has not prepared a local employment impact statement pursuant to Texas Government Code §2001.022.

During the first five years that the rules would be in effect, the proposed amendments would not: create or eliminate a government program; create or eliminate any employee positions; require an increase or decrease in future legislative appropriations; create a new regulation; expand, limit, or repeal an existing regulation; increase or decrease the number of individuals subject to the rule's applicability; or affect the state's economy. As described above, the Commission proposes the amendments to better organize and clarify certain procedures, conform Commission rules to federal regulations and guidance, update references, and make other nonsubstantive clarifying amendments.

Lastly, the Commission has determined that the proposed rule does not meet the statutory definition of a major environmental rule as set forth in Texas Government Code §2001.0225; therefore, a regulatory analysis pursuant to that section is not required.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.texas.gov/general-counsel/rules/comment-form-for-proposed-rulemakings; or by electronic mail to rulescoordinator@rrc.texas.gov. The Commission will accept comments until 5:00 p.m. on Monday, November 23, 2020. The Commission finds that this comment period is reasonable because the proposal and an online comment form will be available on the Commission's website more than two weeks prior to Texas Register publication of the proposal, giving interested persons additional time to review, analyze, draft, and submit comments. The Commission encourages all interested persons to submit comments no later than the deadline. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Mr. Elliott at (512) 305-8840. The status of pending Commission rulemakings is available at www.rrc.texas.gov/general-counsel/rules/proposed-rules.

SUBCHAPTER A. GENERAL

DIVISION 1. GENERAL

16 TAC §12.3, §12.4

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.3.Definitions.

The following words and terms, when used in this Chapter (relating to Coal Mining Regulations), shall have the following meanings unless the context clearly indicates otherwise:

(1) - (88) (No change.)

(89) Imminent danger to the health and safety of the public--The existence of any condition or practice, or any violation of a permit or other requirements of the Act in a surface coal mining and reclamation operation, which condition, practice, or violation could reasonably be expected to cause substantial physical harm to persons outside the permit area before such condition, practice, or violation can be abated. A reasonable expectation of death or serious injury before abatement exists if a rational person, subjected to the same condition or practices giving rise to the peril, would not expose that person [himself] to the danger during the time necessary for abatement.

(90) - (121) (No change.)

(122) Permit area--The area of land and water indicated on the map submitted by the operator with the [his] application, as approved by the Commission, which area shall be covered by the operator's bond as required by §§134.121 - 134.127 of the Act and shall be readily identifiable by appropriate markers on the site. This area shall include, at a minimum, all areas which are or will be affected by the surface coal mining and reclamation operations during the term of the permit.

(123) - (131) (No change.)

(132) Professional engineer--A person who is duly licensed by the Texas Board of Professional Engineers and Land Surveyors to engage in the practice of engineering in this state.

(133) Professional geoscientist--A person who is duly licensed by the Texas Board of Professional Geoscientists to engage in the practice of geoscience in this state.

(134) [(132)] Professional specialist--A person whose training, experience, and professional certification or licensing are acceptable to the Commission for the limited purpose of performing certain specified duties under this chapter.

(135) [(133)] Prohibited financial interest--Any direct or indirect financial interest in any coal mining operation.

(136) [(134)] Property to be mined--Both the surface estates and mineral estates within the permit area and the area covered by underground workings.

(137) [(135)] Public building--Any structure that is owned or leased, and principally used by a governmental agency for public business or meetings.

(138) [(136)] Publicly-owned park--A public park that is owned by a federal, state or local governmental entity.

(139) [(137)] Public office--A facility under the direction and control of a governmental entity which is open to public access on a regular basis during reasonable business hours.

(140) [(138)] Public park--An area or portion of an area dedicated or designated by any federal, state, or local agency primarily for public recreational use, whether or not such use is limited to certain times or days, including any land leased, reserved, or held open to the public because of that use.

(141) [(139)] Public road--Any thoroughfare open to the public for passage of vehicles.

(142) [(140)] Qualified jurisdiction--A state or federal mining regulatory authority that has a blaster certification program approved by the U.S. Department of the Interior, Office of Surface Mining Reclamation and Enforcement, in accordance with the Federal Act.

(143) [(141)] Qualified laboratory--A designated public agency, private firm, institution, or analytical laboratory that can provide the required determination of probable hydrologic consequences or statement of results of test borings or core samplings or other services as specified at §12.236 and §12.240 of this title (relating to Program Services, and Data Requirements), and that meets the standards of §12.241 of this title (relating to Qualified Laboratories).

(144) [(142)] Rangeland--Land on which the natural potential (climax) plant cover is principally native grasses, forbs, and shrubs valuable for forage. This land includes natural grass lands and savannahs, such as prairies, and juniper savannahs, such as brushlands. Except for brush control, management is primarily achieved by regulating the intensity of grazing and season of use.

(145) [(143)] Recharge capacity--The ability of the soils and underlying materials to allow precipitation and runoff to infiltrate and reach the zone of saturation.

(146) [(144)] Reciprocity--The conditional recognition by the Commission of a blaster certificate issued by another qualified jurisdiction.

(147) [(145)] Reclamation--Those actions taken to restore mined land as required by this chapter to a postmining land use approved by the Commission.

(148) [(146)] Recurrence interval--The interval of time in which a precipitation event is expected to occur once, on the average. For example, the 10-year, 24-hour precipitation event would be that 24-hour precipitation event expected to occur on the average once in 10 years.

(149) [(147)] Reference area--A land unit maintained under appropriate management for the purpose of measuring vegetation ground cover, productivity and plant species diversity that are produced naturally or by crop production methods approved by the Commission. Reference areas must be representative of geology, soil, slope, and vegetation in the permit area.

(150) [(148)] Regional Director--A Regional Director of the Office or a Regional Director's representative.

[(149) Registered professional engineer--A person who is duly licensed by the Texas State Board of Registration for Professional Engineers to engage in the practice of engineering in this state.]

(151) [(150)] Remining--Surface coal mining and reclamation operations that affect previously mined areas.

(152) [(151)] Renewable resource lands--Aquifers and areas for the recharge of aquifers and other underground waters, areas for agricultural or silvicultural production of food and fiber, and grazing lands. With respect to Subchapter F of this chapter (relating to Lands Unsuitable for Mining), geographic areas which contribute significantly to the long-range productivity of water supply or of food or fiber products, such lands to include aquifers and aquifer recharge areas.

(153) [(152)] Replacement of water supply--With respect to protected water supplies contaminated, diminished, or interrupted by coal mining operations, provision of water supply on both a temporary and permanent basis equivalent to premining quantity and quality. Replacement includes provision of an equivalent water-delivery system and payment of operation and maintenance costs in excess of customary and reasonable delivery costs for premining water supplies.

(A) Upon agreement by the permittee and the water-supply owner, the obligation to pay such operation and maintenance costs may be satisfied by a one-time payment in an amount which covers the present worth of the increased annual operation and maintenance costs for a period agreed to by the permittee and the water-supply owner.

(B) If the affected water supply was not needed for the land use in existence at the time of loss, contamination, or diminution, and if the supply is not needed to achieve the postmining land use, replacement requirements may be satisfied by demonstrating that a suitable alternative water source is available and could feasibly be developed. If the latter approach is selected, written concurrence must be obtained from the water-supply owner.

(154) [(153)] Road--A surface right-of-way for purposes of travel by land vehicles used in surface coal mining and reclamation operations or coal exploration. A road consists of the entire area within the right-of-way, including the roadbed, shoulders, parking and side areas, approaches, structures, ditches, and surface. The term includes access and haulroads constructed, used, reconstructed, improved, or maintained for use in surface coal mining and reclamation operations or coal exploration, including use by coal-hauling vehicles to and from transfer, processing, or storage areas. The term does not include ramps and routes of travel within the immediate mining area or within spoil or coal mine waste disposal areas.

(155) [(154)] Safety factor--The ratio of the available shear strength to the developed shear stress, or the ratio of the sum of the resisting forces to the sum of the loading or driving forces, as determined by accepted engineering practices.

(156) [(155)] Secretary--The Secretary of the U.S. Department of the Interior, or the Secretary's representative.

(157) [(156)] Sedimentation pond--A primary sediment control structure designed, constructed and maintained in accordance with §12.344 or §12.514 of this title (relating to Hydrologic Balance: Siltation Structures) and including but not limited to a barrier, dam, or excavated depression which slows down water runoff to allow sediment to settle out. A sedimentation pond shall not include secondary sedimentation control structures, such as straw dikes, riprap, check dams, mulches, dugouts and other measures that reduce overland flow velocity, reduce runoff volume or trap sediment to the extent that such secondary sedimentation structures drain to a sedimentation pond.

(158) [(157)] Significant forest cover--An existing plant community consisting predominantly of trees and other woody vegetation.

(159) [(158)] Significant, imminent environmental harm to land, air or water resources--Determined in the following context:

(A) An environmental harm is an adverse impact on land, air, or water resources, which resources include, but are not limited to, plant and animal life.

(B) An environmental harm is imminent, if a condition, practice, or violation exists which:

(i) is causing such harm; or

(ii) may reasonably be expected to cause such harm at any time before the end of the reasonable abatement time that would be set under §134.162 of the Act.

(C) An environmental harm is significant if that harm is appreciable and not immediately reparable.

(160) [(159)] Significant recreational, timber, economic, or other values incompatible with surface coal mining operations--Those significant values which could be damaged by, and are not capable of existing together with, surface coal mining operations because of the undesirable effects mining would have on those values, either on the area included in the permit application or on other affected areas. Those values to be evaluated for their significance include:

(A) recreation, including hiking, boating, camping, skiing or other related outdoor activities;

(B) timber management and silviculture;

(C) agriculture, aquaculture or production of other natural, processed or manufactured products which enter commerce; and

(D) scenic, historic, archaeologic, esthetic, fish, wildlife, plants or cultural interests.

(161) [(160)] Siltation structure--A sedimentation pond, a series of sedimentation ponds, or other treatment facility.

(162) [(161)] Slope--Average inclination of a surface, measured from the horizontal, generally expressed as the ratio of a unit of horizontal distance to a given number of units of vertical distance (e.g., 5h:1v). It may also be expressed as a percent or in degrees.

(163) [(162)] Soil horizons--Contrasting layers of soil parallel or nearly parallel to the land surface. Soil horizons are differentiated on the basis of field characteristics and laboratory data. The four master soil horizons are:

(A) A horizon. The uppermost mineral layer, often called the surface soil. It is the part of the soil in which organic matter is most abundant, and leaching of soluble or suspended particles is typically the greatest;

(B) E horizon. The layer commonly near the surface below an A horizon and above a B horizon. An E horizon is most commonly differentiated from an overlying A horizon by lighter color and generally has measurably less organic matter than the A horizon. An E horizon is most commonly differentiated from an underlying B horizon in the same sequum by color of higher value or lower chroma, by coarser texture, or by a combination of these properties;

(C) B horizon. The layer that typically is immediately beneath the E horizon and often called the subsoil. This middle layer commonly contains more clay, iron, or aluminum than the A, E, or C horizons; and

(D) C horizon. The deepest layer of soil profile. It consists of loose material or weathered rock that is relatively unaffected by biologic activity.

(164) [(163)] Soil survey--A field and other investigation, resulting in a map showing the geographic distribution of different kinds of soils and an accompanying report that describes, classifies, and interprets such soils for use. Soil surveys must meet the standards of the National Cooperative Soil Survey.

(165) [(164)] Spoil--Overburden that has been removed during surface coal mining operations.

(166) [(165)] Stabilize--To control movement of soil, spoil piles, or areas of disturbed earth by modifying the geometry of the mass, or by otherwise modifying physical or chemical properties, such as by providing a protective surface coating.

(167) [(166)] Steep slope--Any slope of more than 20 degrees or such lesser slope as may be designated by the Commission after consideration of soil, climate, and other characteristics of a region or state.

(168) [(167)] Subirrigation--With respect to alluvial valley floors, the supplying of water to plants from underneath or from a semi-saturated or saturated subsurface zone where water is available for use by vegetation. Subirrigation may be identified by:

(A) diurnal fluctuation of the water table, due to the differences in nighttime and daytime evapotranspiration rates;

(B) increasing soil moisture from a portion of the root zone down to the saturated zone, due to capillary action;

(C) mottling of the soils in the root zones;

(D) existence of an important part of the root zone within the capillary fringe or water table of an alluvial aquifer; or

(E) an increase in streamflow or a rise in ground-water levels, shortly after the first killing frost on the valley floor.

(169) [(168)] Substantial legal and financial commitments in a surface coal mining operation--Significant investments that have been made on the basis of a long-term coal contract in power plants, railroads, coal-handling, preparation, extraction or storage facilities and other capital-intensive activities. An example would be an existing mine, not actually producing coal, but in a substantial stage of development prior to production. Costs of acquiring the coal in place or the right to mine it without an existing mine, as described in the above example, alone are not sufficient to constitute substantial legal and financial commitments.

(170) [(169)] Substantially disturb--For purposes of coal exploration, to significantly impact land, air or water resources by such activities as blasting; mechanical excavation; drilling or altering coal or water exploratory holes or wells; removal of vegetation, topsoil, or overburden; construction of roads or other access routes; placement of structures, excavated earth, or waste material on the natural surface of land; or by other such activities; or to remove more than 250 tons of coal.

(171) [(170)] Successor in interest--Any person who succeeds to rights granted under a permit, by transfer, assignment, or sale of those rights.

(172) [(171)] Surface coal mining and reclamation operations--Surface coal mining operations and all activities necessary or incidental to the reclamation of such operations. This term includes the term surface coal mining operations.

(173) [(172)] Surface coal mining operations--Includes:

(A) activities conducted on the surface of lands in connection with a surface coal mine or, subject to the requirements of §134.015 of the Act, surface operations and surface impacts incident to an underground coal mine, the products of which enter or the operations of which directly or indirectly affect interstate commerce. Such activities include excavation for the purpose of obtaining coal, including such common methods as contour, strip, auger, mountaintop removal, box cut, open pit, and area mining; the use of explosives and blasting; in situ distillation or retorting; leaching or other chemical or physical processing; the cleaning, concentrating, or other processing or preparation of coal; and the loading of coal for interstate commerce at or near the mine-site. Provided, however, that such activities do not include the extraction of coal incidental to the extraction of other minerals, where coal does not exceed 16 2/3% of the tonnage of minerals removed annually from all sites operated by a person on contiguous tracts of land for purposes of commercial use or sale, or coal exploration subject to §134.014 and §134.031(d) of the Act; and provided further, that excavation for the purpose of obtaining coal includes extraction of coal from coal refuse piles; and

(B) areas upon which the activities described in subparagraph (A) of this definition occur or where such activities disturb the natural land surface. Such areas shall also include any adjacent land the use of which is incidental to any such activities, all lands affected by the construction of new roads or the improvement or use of existing roads to gain access to the site of those activities and for haulage and excavation, workings, impoundments, dams, ventilation shafts, entryways, refuse banks, dumps, stockpiles, overburden piles, spoil banks, culm banks, tailings, holes or depressions, repair areas, storage areas, processing areas, shipping areas, and other areas upon which are site structures, facilities, or other property or material on the surface, resulting from or incident to those activities.

(174) [(173)] Surface mining activities--Those surface coal mining and reclamation operations incident to the extraction of coal from the earth by removing the materials over a coal seam, before recovering the coal, by auger coal mining, or by recovery of coal from a deposit that is not in its original geologic location.

(175) [(174)] Surface operations and impacts incident to an underground coal mine--All activities involved in or related to underground coal mining which are either conducted on the surface of the land, produce changes in the land surface or disturb the surface, air or water resources of the area, including all activities listed in §134.004(19) of the Act and the definition of surface coal mining operations contained in this section.

(176) [(175)] Suspended solids or nonfilterable residue--Expressed as milligrams per liter, organic or inorganic materials carried or held in suspension in water which are retained by a standard glass fiber filter in the procedure outlined by the U.S. Environmental Protection Agency regulations for wastewater and analyses (40 CFR 136).

(177) [(176)] Temporary diversion--A diversion of a stream or overland flow which is used during coal exploration or surface coal mining and reclamation operations and not approved by the Commission to remain after reclamation as part of the approved postmining land use.

(178) [(177)] Temporary impoundment--An impoundment used during surface coal mining and reclamation operations, but not approved by the Commission to remain as part of the approved postmining land use.

(179) [(178)] Thick overburden--More than sufficient spoil and other waste materials available from the entire permit area to restore the disturbed area to its approximate original contour. More than sufficient spoil and other waste materials occur where the overburden thickness times the swell factor exceeds the combined thickness of the overburden and coal bed prior to removing the coal, so that after backfilling and grading the surface configuration of the reclaimed area would not:

(A) closely resemble the surface configuration of the land prior to mining; or

(B) blend into and complement the drainage pattern of the surrounding terrain.

(180) [(179)] Thin overburden--Insufficient spoil and other waste materials available from the entire permit area to restore the disturbed area to its approximate original contour. Insufficient spoil and other waste materials occur where the overburden thickness times the swell factor, plus the thickness of other available waste materials, is less than the combined thickness of the overburden and coal bed prior to removing the coal, so that after backfilling and grading the surface configuration of the reclaimed area would not:

(A) closely resemble the surface configuration of the land prior to mining; or

(B) blend into and complement the drainage pattern of the surrounding terrain.

(181) [(180)] Ton--2,000 pounds avoirdupois (0.90718 metric ton).

(182) [(181)] Topsoil--The A and E soil-horizon layers of the four master soil horizons.

(183) [(182)] Toxic-forming materials--Earth materials or wastes which, if acted upon by air, water, weathering, or microbiological processes, are likely to produce chemical or physical conditions in soils or water that are detrimental to biota or uses of water.

(184) [(183)] Toxic mine drainage--Water that is discharged from active or abandoned mines or other areas affected by coal exploration or surface coal mining and reclamation operations, which contains a substance that through chemical action or physical effects is likely to kill, injure, or impair biota commonly present in the area that might be exposed to it.

(185) [(184)] Transfer, assignment, or sale of rights--A change in ownership or other effective control over the right to conduct surface coal mining operations under a permit issued by the Commission.

(186) [(185)] Unconsolidated streamlaid deposits holding streams--With respect to alluvial valley floors, all flood plains and terraces located in the lower portions of topographic valleys which contain perennial or other streams with channels that are greater than 3 feet in bankfull width and greater than 0.5 feet in bankfull depth.

(187) [(186)] Underground development waste--Waste rock mixtures of coal, shale, claystone, siltstone, sandstone, limestone, or related materials that are excavated, moved, and disposed of during development and preparation of areas incident to underground mining activities.

(188) [(187)] Underground mining activities--Includes:

(A) surface operations incident to underground extraction of coal or in situ processing, such as construction, use, maintenance, and reclamation of roads, above-ground repair areas, storage areas, processing areas, shipping areas, areas upon which are sited support facilities including hoist and ventilating ducts, areas utilized for the disposal and storage of waste, and areas on which materials incident to underground mining operations are placed; and

(B) underground operations such as underground construction, operation, and reclamation of shafts, adits, underground support facilities, in situ processing, and underground mining, hauling, storage, and blasting.

(189) [(188)] Undeveloped rangeland--For purposes of alluvial valley floors, lands where the use is not specifically controlled and managed.

(190) [(189)] Unwarranted failure to comply--The failure of the permittee to prevent the occurrence of any violation of the permit or any requirement of the Act, due to the indifference, lack of diligence, or lack of reasonable care, or the failure to abate any violation of such permit or the Act, due to indifference, lack of diligence, or lack of reasonable care.

(191) [(190)] Upland areas--With respect to alluvial valley floors, those geomorphic features located outside the floodplain and terrace complex, such as isolated higher terraces, alluvial fans, pediment surfaces, landslide deposits, and surfaces covered with residuum, mud flows or debris flows, as well as highland areas underlain by bedrock and covered by residual weathered material or debris deposited by sheetwash, rillwash, or windblown material.

(192) [(191)] Valid existing rights--A set of circumstances under which a person may, subject to Commission approval, conduct surface coal mining operations on lands where §134.022 of the Act and §12.71(a) of this title (relating to Areas Where Surface Coal Mining Operations are Prohibited or Limited) would otherwise prohibit such operations. Possession of valid existing rights only confers an exception from the prohibitions of §12.71(a) of this title and §134.022 of the Act. A person seeking to exercise valid existing rights must comply with all other pertinent requirements of the Act and this chapter.

(A) Property rights demonstration. Except as provided in subparagraph (C) of this paragraph, a person claiming valid existing rights must demonstrate that a legally binding conveyance, lease, deed, contract, or other document vests that person, or a predecessor in interest, with the right to conduct the type of surface coal mining operations intended. This right must exist at the time that the land came under the protection of §12.71(a) of this title or §134.022 of the Act. Applicable state statutory or case law will govern interpretation of documents relied upon to establish property rights. If no applicable state law exists, custom and generally accepted usage at the time and place that the documents came into existence will govern their interpretation.

(B) Additional demonstrations. Except as provided in subparagraph (C) of this paragraph, a person claiming valid existing rights must also demonstrate compliance with one of the following standards:

(i) Good faith/all permits standard. All permits and other authorizations required to conduct surface coal mining operations have been obtained, or a good faith effort to obtain all necessary permits and authorizations has been made, before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. At a minimum, an application must have been submitted for any permit required under Subchapter G of this chapter (relating to Surface Coal Mining and Reclamation Operations, Permits, and Coal Exploration Procedure Systems); or

(ii) Needed for and adjacent standard. The land is needed for and immediately adjacent to a surface coal mining operation for which all permits and other authorizations required to conduct surface coal mining operations have been obtained, or a good faith attempt to obtain all permits and authorizations has been made, before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. To meet this standard, a person must demonstrate that prohibiting expansion of the operation onto that land would unfairly impact the viability of the operation as originally planned before the land came under the protection of §12.71(a) of this title or §134.022 of the Act. Except for operations in existence before August 3, 1977, or for which a good faith effort to obtain all necessary permits have been made before August 3, 1977, this standard does not apply to lands already under the protection of §12.71(a) of this title or §134.022 of the Act when the Commission approved the permit for the original operation or when the good faith effort to obtain all necessary permits for the original operation was made. In evaluating whether a person meets this standard, the Commission may consider factors such as:

(I) the extent to which coal supply contracts or other legal and business commitments that predate the time that the land came under the protection of §12.71(a) of this title or §134.022 of the Act depend upon use of that land for surface coal mining operations;

(II) the extent to which plans used to obtain financing for the operation before the land came under the protection of §12.71(a) of this title or §134.022 of the Act rely upon use of that land for surface coal mining operations;

(III) the extent to which investments in the operation before the land came under the protection of §12.71(a) of this title or §134.022 of the Act rely upon use of that land for surface coal mining operations; and

(IV) whether the land lies within the area identified on the life-of-mine map submitted under §12.136(3) of this title (relating to Maps: General Requirements) or §12.182(3) of this title (relating to Maps: General Requirements) before the land came under the protection of §12.71(a) of this title.

(C) Roads. A person who claims valid existing rights to use or construct a road across the surface of lands protected by §12.71(a) of this title or §134.022 of the Act must demonstrate that one or more of the following circumstances exist if the road is included within the definition of "surface coal mining operations" in this section:

(i) the road existed when the land upon which it is located came under the protection of §12.71(a) of this title or §134.022 of the Act, and the person has a legal right to use the road for surface coal mining operations;

(ii) a properly recorded right of way or easement for a road in that location existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act, and, under the document creating the right of way or easement, and under subsequent conveyances, the person has a legal right to use or construct a road across the right of way or easement for surface coal mining operations;

(iii) a valid permit for use or construction of a road in that location for surface coal mining operations existed when the land came under the protection of §12.71(a) of this title or §134.022 of the Act; or

(iv) valid existing rights exist under subparagraphs (A) and (B) of this paragraph.

(193) [(192)] Valley fill--A fill structure consisting of any material other than coal waste and organic material that is placed in a valley where side slopes of the existing valley measured at the steepest point are greater than 20 degrees or the average slope of the profile of the valley from the toe of the fill to the top of the fill is greater than 10 degrees.

(194) [(193)] Violation--When used in the context of the permit application information or permit eligibility requirements of the Act and this chapter:

(A) a failure to comply with an applicable provision of a Federal or state law or regulation pertaining to air or water environmental protection, as evidenced by a written notification from a governmental entity to the responsible person; or

(B) a noncompliance for which the Commission has provided one or more of the following types of notice, or another state's regulatory authority has provided equivalent notice under corresponding provisions of that state's regulatory program:

(i) a notice of violation under §12.678 of this title (relating to Notices of Violation);

(ii) a cessation order under §12.677 of this title (relating to Cessation Orders);

(iii) a final order, bill, or demand letter pertaining to a delinquent civil penalty assessed under Subchapter L of this chapter (relating to Permanent Program Inspection and Enforcement Procedures);

(iv) a bill or demand letter pertaining to delinquent reclamation fees owed under 30 CFR, Part 870; or

(v) a notice of bond forfeiture under §12.314(d) of this title (relating to Forfeiture of Bonds) when:

(I) one or more violations upon which the forfeiture was based have not been abated or corrected; or

(II) the amount forfeited and collected is insufficient for full reclamation under §12.314 of this title, the Commission orders reimbursement for additional reclamation costs, and the person has not complied with the reimbursement order.

(195) [(194)] Violation, failure, or refusal--With respect to §§12.696 - 12.699 of this title, a violation of or a failure or refusal to comply with any order of the Commission including, but not limited to, a condition of a permit, notice of violation, failure-to-abate cessation order, imminent harm cessation order, order to show cause why a permit should not be suspended or revoked, and order in connection with a civil action for relief, except an order incorporated in a decision issued under §134.175 of the Act.

(196) [(195)] Violation notice--Any written notification from a regulatory authority or other governmental entity, as specified in the definition of "violation" in this section.

(197) [(196)] Water table--The upper surface of a zone of saturation, where the body of ground water is not confined by an overlying impermeable zone.

(198) [(197)] Willful or willfully--With respect to §§12.696 - 12.699 of this title, an individual that authorized, ordered, or carried out an act or omission that resulted in either a violation or the failure to abate or correct a violation acted:

(A) intentionally, voluntarily, or consciously; and

(B) with intentional disregard or plain indifference to legal requirements.

(199) [(198)] Willful violation--An act or omission which violates the Act, state, or federal laws or regulations, or any permit condition required by the Act or this chapter, committed by a person who intends the result which actually occurs.

§12.4.Petitions to Initiate Rulemaking.

[(a)] Any person may petition the Commission to initiate a proceeding for the issuance, amendment, or repeal of any regulation [under the Act]. The petition shall be submitted in accordance with §1.301 of this title, relating to Petition for Adoption of Rules, and the APA [to the Surface Mining and Reclamation Division, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711].

[(b) The petition shall be a concise statement of the facts, technical justification, and law which require issuance, amendment, or repeal of a regulation under the Act and shall indicate whether the petitioner desires a public hearing.]

[(c) Upon receipt of the petition, the Commission shall determine if the petition sets forth facts, technical justification and law which may provide a reasonable basis for issuance, amendment or repeal of a regulation. Facts, technical justification or law previously considered in a petition or rulemaking on the same issue shall not provide a reasonable basis. If a reasonable basis is shown, a notice shall be published in the Texas Register asking for public comments on the proposed change.]

[(d) Within 90 days from receipt of the petition, the Commission shall issue a written decision either granting or denying the petition.]

[(1) If the petition is granted, the Commission shall initiate a rulemaking proceeding in accordance with the APA.]

[(2) If the petition is denied, the Commission shall notify the petitioner in writing, setting forth the reasons for denial.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004376

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER G. SURFACE COAL MINING AND RECLAMATION OPERATIONS, PERMITS, AND COAL EXPLORATION PROCEDURES SYSTEMS

DIVISION 1. GENERAL REQUIREMENTS FOR PERMIT AND EXPLORATION PROCEDURE SYSTEMS UNDER REGULATORY PROGRAMS

16 TAC §12.100

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.100.Responsibilities.

(a) Persons seeking to engage in surface coal mining and reclamation operations must submit an application for and obtain a permit for those operations in accordance with this subchapter (relating to Surface Coal Mining and Reclamation Operations, Permits, and Coal Exploration Procedures Systems). Persons seeking to conduct coal exploration must first file the notice of intention or obtain approval of the Commission as required under §§12.109 - 12.115 of this title (relating to General Requirements for Coal Exploration). A permit and the obligations established therein (to include payment of annual fees associated with the permit as required in §12.108 of this title, relating to Permit Fees) shall continue until all surface coal mining and reclamation operations are completed, regardless of whether the authorization to conduct surface coal mining operations has expired or has been terminated, revoked, or suspended.

(b) A permittee will not be required to submit an application to renew a permit if no surface coal mining operations will be conducted under the permit and solely reclamation activities remain to be completed. The permittee will provide written notification to the Director the Surface Mining and Reclamation Division of permanent cessation of mining operations as required under §12.398 and §12.567 of this title, both relating to Cessation of Operations: Permanent. [A permit and the obligations established therein (to include payment of annual fees associated with the permit as required in §12.108 of this title, relating to Permit Fees) shall continue until all surface coal mining and reclamation operations are completed, regardless of whether the authorization to conduct surface coal mining operations has expired or has been terminated, revoked, or suspended.]

(c) [(b)] The Commission shall review each application for exploration approval and for a permit, approve or disapprove each permit application or exploration application, and issue, condition, suspend, or revoke exploration approval, permits, renewals, or revised permits under an approved regulatory program.

(d) [(c)] The applicant for a permit or revision of a permit shall have the burden of establishing that the application is in compliance with all of the requirements of the Commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004377

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 2. GENERAL REQUIREMENTS FOR PERMITS AND PERMIT APPLICATIONS

16 TAC §12.106, §12.108

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal miningoperations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.106.Permit Application Filing Deadlines.

(a) (No change.)

(b) Filing deadlines after initial implementation.

(1) (No change.)

(2) Renewal of valid permits. An application for renewal of a permit shall be filed with the Commission at least 120 [180] days before the expiration of the permit involved.

(3) - (4) (No change.)

§12.108.Permit Fees.

(a) (No change.)

(b) Annual Fees. In addition to application fees required by this section, each permittee shall pay to the Commission the following annual fees due and payable not later than March 15th of the year following the calendar year for which these fees are applicable:

(1) a fee of $12.85 for each acre of land within a permit area covered by a reclamation bond on December 31st of the year, based on the number of bonded acres of land identified by the applicant [as shown] on the map included in the permit as required by §12.142(2)(C) of this chapter (relating to Operation Plan: Maps and Plans) and approved by the Commission; and

(2) a fee of $6,170 for each permit in effect on December 31st of the year.

(c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004378

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 4. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION[, PART I]

16 TAC §12.121

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.121.Identification of Other Licenses and Permits.

Each application shall contain a list of all other licenses and permits needed by the applicant to conduct the proposed surface mining activities. This list shall identify each license and permit by:

(1) type of permit or license;

(2) name and address of issuing authority;

(3) identification numbers of applications for those permits or licenses or, if issued, the identification numbers of the permits or licenses; and

(4) if a decision has been made, the date of approval or disapproval by each issuing authority and permit expiration date.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004379

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 5. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR INFORMATION ON ENVIRONMENTAL RESOURCES

16 TAC §12.126, §12.137

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.126.Description of Hydrology and Geology: General Requirements.

(a) - (c) (No change.)

(d) All water-quality analyses performed to meet the requirements of this chapter shall be conducted according to the methodology in the 23rd [15th] edition of the American Public Health Association's Standard Methods for the Examination of Water and Wastewater [Standard Methods for the Examination of Water and Wastewater], which is incorporated by reference, or the methodology in 40 CFR Parts 136 and 434.

§12.137.Cross Sections, Maps, and Plans.

(a) (No change.)

(b) Maps, plans, and cross sections included in a permit application which are required by this section shall be prepared by or under the direction of and certified by a qualified [registered] professional engineer or qualified professional geoscientist [geologist], with assistance from experts in related fields such as land surveying and landscape architecture and shall be updated as required by the Commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004380

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 6. SURFACE MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR RECLAMATION AND OPERATION PLAN

16 TAC §§12.142, 12.146, 12.148, 12.154

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.142.Operation Plan: Maps and Plans.

Each application shall contain maps and plans of the proposed permit and adjacent areas as follows:

(1) - (2) (No change.)

(3) Except as provided in §12.148(a)(2) and (3) of this title, §12.153(a) of this title (relating to Disposal of Excess Spoil), §12.363(b) of this title (relating to Disposal of Excess Spoil: General Requirements), §12.366(b)(1) of this title (relating to Disposal of Excess Spoil: Durable Rock Fills), and §12.368(c) of this title (relating to Coal Processing Waste Banks: General Requirements), maps, plans, and cross-sections required under paragraph (2)(D), (E), (F), (J), and (K) of this section shall be prepared by, or under the direction of, and certified by a qualified [registered] professional engineer, or qualified professional geoscientist [geologist], with assistance from experts in related fields such as land surveying and landscape architecture.

(4) (No change.)

§12.146.Reclamation Plan: Protection of Hydrologic Balance.

(a) General requirements. The application shall include a hydrologic reclamation plan, with appropriate maps and descriptions, indicating how the relevant requirements of this chapter (relating to Coal Mining Regulations), including §§12.339-12.341, 12.346, 12.348 and 12.349, and 12.350-12.354 of this title (relating to Hydrologic Balance: General Requirements, to Hydrologic Balance: Water-Quality Standards and Effluent Limitations, to Hydrologic Balance: Diversions, to Hydrologic Balance: Acid-Forming and Toxic-Forming Spoil, to Hydrologic Balance: Ground-Water Protection, to Hydrologic Balance: Surface-Water Protection, to Hydrologic Balance: Surface and Ground-Water Monitoring, to Hydrologic Balance: Transfer of Wells, to Hydrologic Balance: Water Rights and Replacement, to Hydrologic Balance: Discharge of Water Into an Underground Mine, and to Hydrologic Balance: Postmine Rehabilitation of Sedimentation Ponds, Diversions, Impoundments, and Treatment Facilities), will be met. The plan shall be specific to the local hydrologic conditions.

(1) The plan [It] shall contain the steps to be taken during mining and reclamation through bond release:

(A) to minimize disturbances to the hydrologic balance within the permit and adjacent areas;

(B) to prevent material damage outside thepermit area;

(C) to meet applicable federal and state water-quality laws and regulations; and

(D) to protect the rights of present water users.

(2) The plan shall specifically address any potential adverse hydrologic consequences identified in the PHC determination prepared under §§12.139-12.154 of this title (relating to Surface Mining Permit Applications--Minimum Requirements for Reclamation and Operation Plan) and shall include preventive and remedial measures. The plan shall identify the measures to be taken to:

(A) [(1)] protect the quality of surface- and ground-water systems, both within the proposed permit and adjacent areas, from the adverse effects of the proposed surface mining activities, or to provide alternative sources of water in accordance with §12.130 and §12.352 of this title (relating to Alternative Water Supply Information, and to Hydrologic Balance: Water Rights and Replacement), where the protection of quality cannot be ensured;

(B) [(2)] protect or replace the rights of present users of surface and ground water;

(C) [(3)] protect the quantity of surface and ground water both within the proposed permit area and adjacent area from adverse effects of the proposed surface mining activities, or to provide alternative sources of water in accordance with §12.130 and §12.352 of this title (relating to Alternative Water Supply Information, and to Hydrologic Balance: Water Rights and Replacement), where the protection of quantity cannot be ensured;

(D) [(4)] avoid acid or toxicdrainage;

(E) [(5)] prevent, to the extent possible using the best technology currently available, additional contributions of suspended solids to streamflow;

(F) [(6)] provide water-treatment facilities when needed;

(G) [(7)] control drainage; and

(H) [(8)] restore approximate premining recharge capacity.

(b) - (c) (No change.)

(d) Probable hydrologic consequences determination.

(1) - (2) (No change.)

(3) The PHC determination shall include findings on:

(A) whether adverse impacts may occur to the hydrologic balance;

(B) whether acid-forming [or toxic-forming] materials are present that could result in the contamination of ground- or surface-water supplies;

(C) whether toxic-forming materials are present that could result in the contamination of ground- or surface-water supplies;

(D) [(C)] whether the proposed operation may proximately result in contamination[, diminution, or interruption] of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose; [and]

(E) whether the proposed operation may proximately result in diminution of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose;

(F) whether the proposed operation may proximately result in interruption of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose;

(G) [(D)] what impact the proposed operation will have on:

(i) sediment yield from the disturbed area;

(ii) acidity, total suspended and dissolved solids, and other important water-quality parameters of local impact;

(iii) flooding or streamflow alteration;

(iv) ground- and surface-water availability; and

(v) other characteristics as required by the Commission.

(4) An application for a permit revision shall be reviewed by the Commission to determine whether a new or updated PHC determination shall be required.

(5) If the PHC determination [of the probable hydrologic consequences (PHC)] required by this subsection indicates adverse impacts on or off the proposed permit area may occur to the hydrologic balance, or that acid-forming or toxic-forming material is present that may result in the contamination of ground-water or surface-water supplies, then information supplemental to that required under §12.128 and §12.129 of this title (relating to Ground-Water Information, and to Surface-Water Information) shall be provided to evaluate such probable hydrologic consequences and to plan remedial and reclamation activities. Such supplemental information may be based upon drilling, aquifer tests, hydrogeologic analysis of the water-bearing strata, flood flows, or analysis of other water quality and quantity characteristics. Information shall be provided on water availability and alternative water sources, including the suitability of alternative water sources for existing premining uses and approved postmining land uses.

(6) If the PHC determination required by this subsection indicates that the proposed mining operation may proximately result in contamination, diminution, or interruption of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial or other legitimate purpose, then the Commission may require that the applicant provide information supplemental to that required under §12.130 (relating to Alternative Water Supply Information).

(e) Cumulative hydrologic impact assessment.

(1) The Commission shall provide a [an assessment of the] probable cumulative hydrologic impacts assessment (CHIA) of the proposed operation and all anticipated mining upon surface- and ground-water systems in the cumulative impact area. The CHIA shall be sufficient to determine, for purposes of permit approval, whether the proposed operation has been designed to prevent material damage to the hydrologic balance outside the permit area. The Commission may allow the applicant to submit data and analyses relevant to the CHIA with the permit application.

(2) An application for a permit revision shall be reviewed by the Commission to determine whether a new or updated CHIA shall be required.

§12.148.Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments.

(a) General. Each application shall include a general plan for each proposed sedimentation pond, water impoundment, and coal processing waste bank, dam, or embankment within the proposed permit area.

(1) Each general plan shall:

(A) be prepared by or under the direction of, and certified by a qualified [registered] professional engineer, or by a qualified professional geoscientist [geologist ], with assistance from experts in related fields such as land surveying and landscape architecture;

(B) - (E) (No change.)

(2) Each detailed design plan for a structure that meets or exceeds the size or other criteria of the Mine Safety and Health Administration, 30 CFR 77.216(a), shall:

(A) be prepared by or under the direction of, and certified by a qualified [registered] professional engineer with assistance from experts in related fields such as geology, land surveying, and landscape architecture;

(B) - (D) (No change.)

(3) Each detailed design plan for a structure that does not meet the size or other criteria of 30 CFR 77.216(a) shall:

(A) be prepared by or under the direction of, and certified by a qualified [registered] professional engineer;

(B) - (D) (No change.)

(b) - (d) (No change.)

(e) Coal processing waste dams and embankments. Coal mine waste dams and embankments shall be designed to comply with the requirements of §§12.376 - 12.378 of this title (relating to Coal Mine Waste: Dams and Embankments: General Requirements, to Coal Mine Waste: Dams and Embankments: Site Preparation, and to Coal Mine Waste: Dams and Embankments: Design and Construction). Each plan shall comply with the requirements of the Mine Safety and Health Administration, 30 CFR 77.216-1 and 77.216-2, and shall contain the results of a geotechnical investigation of the proposed dam or embankment foundation area, to determine the structural competence of the foundation which will support the proposed dam or embankment structure and the impounded material. The geotechnical investigation shall be planned and supervised by a qualified professional [an] engineer or qualified professional geoscientist [engineering geologist], according to the following:

(1) - (4) (No change.)

(f) (No change.)

§12.154.Road Systems and Support Facilities.

(a) (No change.)

(b) Primary road certification. The plans and drawings for each primary road shall be prepared by, or under the direction of, and certified by a qualified [registered] professional engineer with experience in the design and construction of roads as meeting the requirements of this chapter (relating to Coal Mining Regulations), current, prudent engineering practices; and any design criteria established by the Commission.

(c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004381

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 7. UNDERGROUND [SURFACE] MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR LEGAL, FINANCIAL, COMPLIANCE, AND RELATED INFORMATION[, PART II]

16 TAC §12.161

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.161.Identification of Other Licenses and Permits.

Each application shall contain a list of all other licenses and permits needed by the applicant to conduct the proposed underground mining activities. This list shall identify each license and permit by:

(1) type of permit or license;

(2) name and address of issuing authority;

(3) identification numbers of applications for those permits or licenses or, if issued, the identification numbers of the permits or licenses; and

(4) if a decision has been made, the date of approval or disapproval by each issuing authority and permit expiration date.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004382

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 8. UNDERGROUND MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR INFORMATION ON ENVIRONMENTAL RESOURCES

16 TAC §12.172, §12.183

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.172.Description of Hydrology and Geology: General Requirements.

(a) - (c) (No change.)

(d) All water-quality analyses performed to meet the requirements of this chapter [(relating to Coal Mining Regulations)] shall be conducted according to the methodology in the 23rd [15th] edition of the American Public Health Association's Standard Methods for the Examination of Water and Wastewater, ["Standard Methods for the Examination of Water and Wastewater,"] which is incorporated by reference, or the methodology in 40 CFR Parts 136 and 434.

§12.183.Cross Sections, Maps, and Plans.

(a) (No change.)

(b) Maps, plans and cross sections included in a permit application and required by this shall be prepared by, or under the direction of and certified by a qualified [registered] professional engineer or qualified professional geoscientist [geologist], with assistance from experts in related fields such as land surveying and landscape architecture and shall be updated as required by the Commission.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004383

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 9. UNDERGROUND MINING PERMIT APPLICATIONS--MINIMUM REQUIREMENTS FOR RECLAMATION AND OPERATION PLAN

16 TAC §§12.188, 12.190, 12.197, 12.198

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.188.Reclamation Plan: Protection of Hydrologic Balance.

(a) General requirements. The application shall include a hydrologic reclamation plan, with appropriate maps and descriptions, indicating how the relevant requirements of this chapter (relating to Coal Mining Regulations), including §§12.509-12.511, 12.516, 12.518 and 12.519, and 12.520-12.524 of this title (relating to Hydrologic Balance: General Requirements, to Hydrologic Balance: Water-Quality Standards and Effluent Limitations, to Hydrologic Balance: Diversions, to Hydrologic Balance: Acid-Forming and Toxic-Forming Spoil, to Hydrologic Balance: Ground-Water Protection, to Hydrologic Balance: Surface-Water Protection, to Hydrologic Balance: Surface and Ground-Water Monitoring, to Hydrologic Balance: Transfer of Wells, to Hydrologic Balance: Water Rights and Replacement, to Hydrologic Balance: Discharge of Water Into an Underground Mine, and to Hydrologic Balance: Postmine Rehabilitation of Sedimentation Ponds, Diversions, Impoundments, and Treatment Facilities), will be met. The plan shall be specific to the local hydrologic conditions.

(1) The plan [It] shall contain the steps to be taken during mining and reclamation through bond release:

(A) to minimize disturbances to the hydrologic balance within the permit and adjacent areas;

(B) to prevent material damage outside the permit area;

(C) to meet applicable federal and state water-quality laws and regulations; and

(D) to protect the rights of present water users.

(2) The plan shall specifically address any potential adverse hydrologic consequences identified in the PHC determination prepared under §§12.185-12.198 of this title (relating to Underground Mining Permit Applications--Minimum Requirements for Reclamation and Operation Plan) and shall include preventive and remedial measures. The plan shall identify the measures to be taken to:

(A) [(1)] protect the quality of surface- and ground-water systems, both within the proposed permit area and adjacent areas, from the adverse effects of the proposed underground mining activities, or to provide alternative sources of water, in accordance with §12.176 and §12.521 of this title (relating to Alternative Water Supply Information, and to Hydrologic Balance: Water Rights and Replacement), where the protection of quality cannot be ensured;

(B) [(2)] protect or replace the rights of present users of surface and ground water;

(C) [(3)] protect the quantity of surface and ground water both within the proposed permit area and adjacent area from adverse effects of the proposed underground mining activities, or to provide alternative sources of water, in accordance with §12.176 and §12.521 of this title (relating to Alternative Water Supply Information, and to Hydrologic Balance: Water Rights and Replacement), where the protection of quantity cannot be ensured;

(D) [(4)] avoid acid or toxic drainage;

(E) [(5)] prevent, to the extent possible using the best technology currently available, additional contributions of sediment to streamflows;

(F) [(6)] provide water-treatment facilities when needed;

(G) [(7)] control drainage;

(H) [(8)] restore approximate premining recharge capacity; and

(I) [(9)] protect the quality of water by locating openings for mines in accordance with §12.518 of this title (relating to Hydrologic Balance: Underground Mine Entry and Access Discharges).

(b) - (c) (No change.)

(d) Probable hydrologic consequences determination.

(1) - (2) (No change.)

(3) The PHC determination shall include findings on:

(A) whether adverse impacts may occur to the hydrologic balance;

(B) whether acid-forming [or toxic-forming] materials are present that could result in contamination of surface- or ground-water supplies;

(C) whether toxic-forming materials are present that could result in contamination of surface- or ground-water supplies;

(D) [(C)] whether the proposed operation may proximately result in contamination[, diminution, or interruption] of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose; [and]

(E) whether the proposed operation may proximately result in diminution of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose;

(F) whether the proposed operation may proximately result in interruption of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial, or other legitimate purpose; and

(G) [(D)] what impact the proposed operation will have on:

(i) sediment yield from the disturbed area;

(ii) acidity, total suspended and dissolved solids, and other important water-quality parameters of local impact;

(iii) flooding or streamflow alteration;

(iv) ground- and surface-water availability; and

(v) other characteristics as required by the Commission.

(4) An application for a permit revision shall be reviewed by the Commission to determine whether a new or updated PHC determination shall be required.

(5) If the PHC determination [of the probable hydrologic consequences (PHC)] required by this subsection indicates adverse impacts on or off the proposed permit area may occur to the hydrologic balance, or that acid-forming or toxic-forming material is present that may result in the contamination of ground-water or surface-water supplies, then information supplemental to that required under §12.174 and §12.175 of this title (relating to Ground-Water Information, and to Surface-Water Information), shall be provided to evaluate such probable hydrologic consequences and to plan remedial and reclamation activities. Such supplemental information may be based upon drilling, aquifer tests, hydrogeologic analysis of the water-bearing strata, flood flows, or analysis of other water quality and quantity characteristics. Information shall be provided on water availability and alternative water sources, including the suitability of alternative water sources for existing premining uses and approved postmining land uses.

(6) If the PHC determination required by this subsection indicates that the proposed mining operation may proximately result in contamination, diminution, or interruption of an underground or surface source of water within the proposed permit or adjacent areas which is used for domestic, agricultural, industrial or other legitimate purpose, then the Commission may require that the applicant provide information supplemental to that required under §12.176 (relating to Alternative Water Supply Information).

(e) Cumulative hydrologic impact assessment.

(1) The Commission shall provide a [an assessment of the] probable cumulative hydrologic impacts assessment (CHIA) of the proposed operation and all anticipated mining upon surface- and ground-water systems in the cumulative impact area. The CHIA shall be sufficient to determine, for purposes of permit approval, whether the proposed operation has been designed to prevent material damage to the hydrologic balance outside the permit area. The Commission may allow the applicant to submit data and analyses relevant to the CHIA with the permit application.

(2) (No change.)

(f) (No change.)

§12.190.Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments.

(a) General. Each application shall include a general plan for each proposed sedimentation pond, water impoundment, and coal processing waste bank, dam, or embankment within the proposed permit area.

(1) Each general plan shall:

(A) be prepared by or under the direction of[,] and certified by[,] a qualified [registered] professional engineer or by a qualified professional geoscientist [geologist] with assistance from experts in related fields such as land surveying and landscape architecture;

(B) - (E) (No change.)

(2) Each detailed design plan for a structure that meets or exceeds the size or other criteria of the Mine Safety and Health Administration, 30 CFR 77.216(a) shall:

(A) be prepared by or under the direction of[,] and certified by[,] a qualified [registered] professional engineer with assistance from experts in related fields such as geology, land surveying, and landscape architecture;

(B) - (D) (No change.)

(3) Each detailed design plan for a structure that does not meet the size or other criteria of 30 CFR 77.216(a) shall:

(A) be prepared by[,] or under the direction of[,] and certified by a qualified [registered] professional engineer;

(B) (No change.)

(b) - (d) (No change.)

(e) Coal mine waste dams and embankments. Coal mine waste dams and embankments shall be designed to comply with the requirements of §12.543 and §12.544 of this title (relating to Coal Mine Waste: Dams and Embankments: General Requirements, and to Coal Mine Waste: Dams and Embankments: Site Preparation). Each plan shall comply with the requirements of the Mine Safety and Health Administration, 30 CFR 77.216-1 and 77.216-2, and shall contain the results of a geotechnical investigation of the proposed dam or embankment foundation area, to determine the structural competence of the foundation which will support the proposed dam or embankment structure and the impounded material. The geotechnical investigation shall be planned and supervised by a qualified professional [an] engineer or qualified professional geoscientist [engineering geologist], according to the following:

(1) - (4) (No change.)

(f) (No change.)

§12.197.Operation Plan: Maps and Plans.

Each application shall contain maps, plans, and cross sections of the proposed permit and adjacent areas as follows:

(1) - (2) (No change.)

(3) except as provided in §§12.190(a)(2) and (3), 12.193(a), 12.531(b), 12.534(b)(1), and 12.535(c) of this title (relating to Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments, to Underground Development Waste/Return of Coal Processing Waste to Underground Workings, to Disposal of Underground Development Waste and Excess Spoil: General Requirements, to Disposal of Underground Development Waste and Excess Spoil: Durable Rock Fills, and to Coal Mine Waste Banks: General Requirements), maps, plans, and cross-sections required under paragraph (2)(D)-(F), (J), and (K) of this subsection shall be prepared by, or under the direction of, and certified by a qualified [registered] professional engineer, or qualified professional geoscientist [geologist], with assistance from experts in related fields such as land surveying and landscape architecture; and

(4) (No change.)

§12.198.Road Systems and Support Facilities.

(a) (No change.)

(b) Primary road certification. The plans and drawings for each primary road shall be prepared by, or under the direction of, and certified by a qualified [registered] professional engineer as meeting the requirements of this chapter (relating to Coal Mining Regulations); current, prudent engineering practices; and any design criteria established by the Commission.

(c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004385

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 11. REVIEW, PUBLIC PARTICIPATION, AND APPROVAL OF PERMIT APPLICATIONS AND PERMIT TERMS AND CONDITIONS

16 TAC §§12.207, 12.211, 12.215

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.207.Public Notices of Filing of Permit Applications.

(a) An applicant for a permit shall place an advertisement in a local newspaper of general circulation in the locality of the proposed surface coal mining and reclamation operations at least once a week for four consecutive weeks. The applicant shall place the advertisement in the newspaper at the same time the complete permit application is filed with the Commission. The advertisement shall contain, at a minimum, the following information:

(1) - (2) (No change.)

(3) the location where a copy of the application is available for public inspection under subsection (d)(1) [(c)] of this section;

(4) - (5) (No change.)

(b) - (d) (No change.)

§12.211.Public Hearing on Application.

(a) - (b) (No change.)

(c) Any person having a valid legal interest or an interest which is or may be adversely affected by any Commission action taken or proposed on any application or existing permit, may request informal consideration or disposition of the matter in accordance with §§2001.051, 2001.052, 2001.056, 2001.057, 2001.059, [2001.056-2001.060] and 2001.141 of the APA [(relating to Opportunity for Hearing and Participation: Notice of Hearing, to Contents of Notice, to Informal Disposition of Contested Case, to Continuances, to Hearing Conducted by State Office of Administrative Hearings, to Transcript, to Record, and to Form of Decision: Findings of Fact and Conclusions of Law)].

§12.215.Review of Permit Applications.

(a) - (f) (No change.)

(g) After an application is approved, but before the permit is issued, the Commission shall review and consider any new compliance information submitted pursuant to §12.116(a)(2) [§12.116(a)(3)] of this title under the criteria of subsection (e)(1) of this section. If the applicant fails or refuses to respond as required by the Commission to provide new compliance information, or the new compliance information shows that the applicant, anyone who owns or controls the applicant, or the operator is in violation, the Commission shall deny the permit.

(h) - (i) (No change.)

(j) Based on reviews of the applicant's and any operator's organizational structure and ownership or control relationships provided in the application as required under subsections (h) and (i) of this section, the Commission shall determine whether an applicant is eligible for a permit under §134.068 and §134.069 of the Act (relating to Schedule of Notices of Violations, and to Effect of Past or Present Violation).

(1) - (2) (No change.)

(3) After approval of the permit under §12.216 of this title (relating to Criteria for Permit Approval or Denial), the Commission shall not issue the permit until the information updates and certification requirements of §12.116(a)(2) or §12.156(a)(2) [§12.116(a)(3) or §12.156(a)(3)] of this title are met. After the applicant completes this requirement, the Commission shall again request a compliance history report from AVS to determine if there are any unabated or uncorrected violations which affect permit eligibility under paragraphs (1) and (2) of this subsection. The Commission shall request this report no more than five business days before permit issuance under §12.218 and §12.219 of this title (relating to Permit Approval or Denial Actions, and Permit Terms).

(4) (No change.)

(k) - (l) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004386

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 13. PERMIT REVIEWS, REVISIONS, AND RENEWALS, AND TRANSFERS, SALE, AND ASSIGNMENT OF RIGHTS GRANTED UNDER PERMITS

16 TAC §12.225

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.225.Commission Review of Outstanding Permits.

(a) - (f) (No change.)

(g) Suspension and rescission. If the Commission elects to rescind an improvidently issued permit, it shall serve on the permittee a written notice of the proposed suspension and rescission which includes the reasons for the findings of the Commission under subsection (e) of this section and states that:

(1) after a specified period of time not to exceed 60 days, the permit will automatically become suspended, and not to exceed 60 days thereafter rescinded, unless within those periods the permittee submits proof, and the Commission finds that:

(A) the finding of the Commission under subsection (e) of this section was erroneous;

(B) the permittee or operator has abated the violation on which the finding was based, or paid the penalty or fee, to the satisfaction of the responsible agency;

(C) the violation, penalty, or fee is the subject of a good-faith appeal, or of an abatement plan or payment schedule with which the permittee or operator is complying to the satisfaction of the responsible agency; or

(D) since the finding was made, the permittee has severed any ownership or control link with the person responsible for[, and does not continue to be responsible for,] the violation, penalty, or fee and the permittee is no longer responsible for the violation, penalty, or fee.

(2) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004387

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER K. PERMANENT PROGRAM PERFORMANCE STANDARDS

DIVISION 2. PERMANENT PROGRAM PERFORMANCE STANDARDS--SURFACE MINING ACTIVITIES

16 TAC §§12.341, 12.344, 12.347, 12.363, 12.366, 12.368, 12.369, 12.373, 12.376, 12.382, 12.398, 12.399, 12.401

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.341.Hydrologic Balance: Diversions.

(a) (No change.)

(b) Diversions of Perennial and Intermittent Streams.

(1) - (3) (No change.)

(4) The design and construction of all stream channel diversions of perennial and intermittent streams shall be certified by a qualified [registered] professional engineer as meeting the performance standards of this part and any design criteria set by the Commission.

(c) (No change.)

§12.344.Hydrologic Balance: Siltation Structures.

(a) (No change.)

(b) General requirements.

(1) - (2) (No change.)

(3) Siltation structures for an area shall be constructed before beginning any surface mining activities in that area, and upon construction shall be certified by a qualified [registered] professional engineer to be constructed as designed and as approved in the reclamation plan.

(4) - (6) (No change.)

(c) Sedimentation ponds.

(1) (No change.)

(2) A sedimentation pond shall include either a combination of principal and auxiliary [emergency] spillways or single spillway configured as specified in §12.347(a)(9) of this title (relating to Hydrologic Balance: Permanent and Temporary Impoundments).

(d) - (e) (No change.)

§12.347.Hydrologic Balance: Permanent and Temporary Impoundments.

(a) General Requirements. The requirements of this subsection apply to both temporary and permanent impoundments.

(1) Impoundments meeting the significant or high hazard class [Class B or C] criteria of dams in the U.S. Department of Agriculture (USDA), Natural Resources Conservation Service Technical Release No. 60 (210-VI-TR60, July 2005 [Oct. 1985]), Earth Dams and Reservoirs, shall comply with the table of Minimum Auxiliary [Emergency ] Spillway Hydrologic Criteria [table] in Technical Release No. 60 (TR-60), which is incorporated by reference, [TR-60 ] and the requirements of this section. [Technical Release No. 60 is hereby incorporated by reference. Copies may be obtained from the National Technical Information Service (NTIS), 5285 Port Royal Road, Springfield, Virginia 22161, Order No. PB 87-157509/AS.] Copies may be obtained on the USDA website [can be inspected at the Commission's Surface Mining and Reclamation Division Office at 1701 N. Congress Avenue, Austin, Texas].

(2) An impoundment meeting the size or other criteria of 30 CFR 77.216(a) shall comply with the requirements of 30 CFR 77.216 and of this section.

(3) The design of impoundments shall be certified in accordance with §12.148(a) of this title (relating to Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments) as designed to meet the requirements of this part using current, prudent, engineering practices and any design criteria established by the Commission. The qualified[, registered] professional engineer shall be experienced in the design and construction of impoundments.

(4) Stability.

(A) An impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a), shall have a minimum static factor of 1.5 for a normal pool with steady-state seepage saturation conditions, and a seismic safety factor of at least 1.2.

(B) (No change.)

(5) Impoundments shall have adequate freeboard to resist overtopping by waves and by sudden increases in storage volume. Impoundments meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60 shall comply with the freeboard hydrograph criteria in the Minimum Auxiliary [Emergency] Spillway Hydrologic Criteria table in TR-60.

(6) Foundations.

(A) Foundations and abutments for an impounding structure shall be stable during all phases of construction and operation and shall be designed based on adequate and accurate information on the foundation conditions. For an impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a), foundation investigation, as well as any necessary laboratory testing of foundation material, shall be performed to determine the design requirements for foundation stability.

(B) (No change.)

(7) - (8) (No change.)

(9) An impoundment shall include either a combination of principal and auxiliary [emergency] spillways or a single spillway configured as specified in subparagraph (A) of this paragraph, designed and constructed to safely pass the applicable design precipitation event specified in subparagraph (B) of this paragraph.

(A) (No change.)

(B) Except as specified in subsection (c)(2) of this section, the required design precipitation event for an impoundment meeting the spillway requirements of this paragraph is:

(i) for an impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, the auxiliary [emergency] spillway hydrograph criteria in the Minimum Emergency Spillway Hydrologic Criteria table in TR-60, or greater event as specified by the Commission;

(ii) - (iii) (No change.)

(10) (No change.)

(11) A qualified [registered] professional engineer or other qualified professional specialist under the direction of a professional engineer, shall inspect each impoundment as provided in subparagraph (A) of this paragraph. The professional engineer or specialist shall be experienced in the construction of impoundments.

(A) (No change.)

(B) The qualified [registered] professional engineer shall promptly after each inspection required in subparagraph (A) of this paragraph, provide the Commission a certified report that the impoundment has been constructed and/or maintained as designed and in accordance with the approved plan and this chapter. The report shall include discussion of any appearance of instability, structural weakness or other hazard condition, depth and elevation of any impounded waters, existing storage capacity, any existing or required monitoring procedures and instrumentation, and any other aspects of the structure affecting stability.

(C) (No change.)

(12) Impoundments meeting the NRCS significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216 must be examined in accordance with 30 CFR 77.216-3. Impoundments not meeting the NRCS significant or high hazard class [Class B or C] criteria for dams in TR-60, or subject to 30 CFR 77.216, shall be examined at least quarterly. A qualified person designated by the operator shall examine impoundments for the appearance of structural weakness and other hazardous conditions.

(13) (No change.)

(b) (No change.)

(c) Temporary Impoundments.

(1) (No change.)

(2) In lieu of meeting the requirements of subsection (a)(9)(A) of this section, the Commission may approve an impoundment that relies primarily on storage to control the runoff from the design precipitation event when it is demonstrated by the operator and certified by a qualified [registered] professional engineer that the impoundment will safely control the design precipitation event, the water from which shall be safely removed in accordance with current, prudent engineering practices. Such an impoundment shall be located where failure would not be expected to cause loss of life or serious property damage, except where:

(A) impoundments meeting the NRCS significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a), shall be designed to control the precipitation of the probable maximum precipitation of a 6-hour event, or greater event as specified by the Commission; and

(B) (No change.)

§12.363.Disposal of Excess Spoil: General Requirements.

(a) (No change.)

(b) The fill shall be designed using recognized professional standards, certified by a qualified [registered] professional engineer, and approved by the Commission.

(c) - (i) (No change.)

(j) The fill shall be inspected for stability by a qualified [registered] professional engineer, or other qualified professional specialist under the direction of the professional engineer, experienced in the construction of earth and rockfill embankments, at least quarterly throughout construction and during the following critical construction periods:

(1) - (5) (No change.)

(k) The qualified [registered] professional engineer shall provide to the Commission a certified report, within 2 weeks after each inspection, that the fill has been constructed as specified in the design approved by the Commission. The certified report on the drainage system and protective filters shall include color photographs taken during and after construction, but before underdrains are covered with excess spoil. If the underdrain system is constructed in phases, each phase shall be certified separately. A copy of the report shall be retained at the minesite.

(l) - (q) (No change.)

§12.366.Disposal of Excess Spoil: Durable Rock Fills.

(a) In lieu of the requirements of §§12.364 and 12.365 of this title (relating to Disposal of Excess Spoil: Valley Fills, and to Disposal of Excess Spoil: Head-of-Hollow Fills), the Commission may approve alternate methods for disposal of hard rock spoil, including fill placement of dumping in a single lift, on a site specific basis, provided the services of a qualified [registered] professional engineer experienced in the design and construction of earth and rockfill embankments are utilized and provided the requirements of this section and §12.363 of this title (relating to Disposal of Excess Spoil: General Requirements) are met. For this section, "hard rock spoil" shall be defined as rockfill consisting of at least 80% by volume of sandstone, limestone, or other rocks that do not slake in water. Resistance of the hard rock spoil to slaking shall be determined by using the slake index and slake durability tests in accordance with guidelines and criteria established by the Commission.

(b) Spoil is to be transported and placed in a specified and controlled manner which will ensure stability of the fill.

(1) (No change.)

(2) Loads of noncemented clay shale and/or clay spoil in the fill shall be mixed with hard rock spoil in a controlled manner to limit on a unit basis concentrations of noncemented clay shale and clay in the fill. Such materials shall comprise no more than 20% of the fill volume as determined by tests performed by a qualified professional [registered] engineer and approved by the Commission.

(c) Requirements for design of earth and rockfill embankments shall include the following:

(1) stability analyses shall be made by the qualified [registered] professional engineer. Parameters used in the stability analyses shall be based on adequate field reconnaissance, subsurface investigations, including borings, and laboratory tests;and

(2) (No change.)

(d) - (h) (No change.)

§12.368.Coal Processing Waste Banks: General Requirements.

(a) - (b) (No change.)

(c) The disposal facility shall be designed using current, prudent engineering practices and shall meet any design criteria established by the Commission. A qualified [registered] professional engineer, experienced in the design of similar earth and waste structures, shall certify the design of the disposal facility.

§12.369.Coal Processing Waste Banks: Site Inspection.

(a) All coal processing waste banks shall be inspected by a qualified [registered] professional engineer, or other qualified professional specialist under the direction of the professional engineer. The professional engineer or specialist shall be experienced in the construction of similar earth and waste structures.

(1) - (3) (No change.)

(4) The qualified [registered] professional engineer shall provide a certified report to the Commission promptly after each inspection that the refuse pile has been constructed and maintained as designed and in accordance with the approved plan and this chapter (relating to Coal Mining Regulations). The report shall include any appearance of instability, structural weakness, and other hazardous conditions.

(5) - (6) (No change.)

(b) (No change.)

§12.373.Coal Processing Waste: Burned Waste Utilization.

Before any burned coal processing waste, other materials, or refuse is removed from a disposal area, approval shall be obtained from the Commission. A plan for the method of removal, with maps and appropriate drawings to illustrate the proposed sequence of the operation and method of compliance with §§12.330 - 12.372, this section, and §§12.374 - 12.403 of this title (relating to Permanent Program Performance Standards--Surface Mining Activities), shall be submitted to the Commission. Consideration shall be given in the plan to potential hazards, which may be created by removal, to persons working or living in the vicinity of the structure. The plan shall be certified by a qualified [registered] professional engineer.

§12.376.Coal Mine Waste: Dams and Embankments: General Requirements.

(a) - (c) (No change.)

(d) If an impounding structure constructed of coal mine waste or intended to impound coal mine waste meets the criteria of the Mine Safety and Health Administration, 30 CFR 77.216(a), the combination of principal and auxiliary [emergency] spillways shall be able to safely pass the probable maximum precipitation of a 6-hour precipitation event, or greater event as specified by the Commission.

§12.382.Pipelines.

With respect to pipelines transmitting crude oil, liquid petroleum, natural gas, toxic or flammable substances:

(1) - (5) (No change.)

(6) comply with [rules and regulations pursuant to TEXAS REVISED CIVIL STATUTES ANNOTATED, ARTICLE 6053-1;] Railroad Commission of Texas[,] Pipeline Safety Rules (16 Texas Administrative Code, Chapter 8) and [§§7.70 et seq.);] 49 CFR 191, 192, and 199; and

(7) (No change.)

§12.398.Cessation of Operations: Permanent.

(a) - (b) (No change.)

(c) Persons who conduct surface mining activities shall submit to the Commission a written notice of intent to permanently cease and abandon mining operations as soon as the intent is finalized.

§12.399.Postmining Land Use.

(a) - (b) (No change.)

(c) Alternative land uses. Prior to the release of lands from the permit area in accordance with §12.313 of this title (relating to Criteria and Schedule for Release of Performance Bond), the permit area shall be restored, in a timely manner, either to conditions capable of supporting the uses they were capable of supporting before any mining, or to conditions capable of supporting approved alternative land uses. Alternative land uses may be approved by the Commission after consultation with the landowner or the land management agency having jurisdiction over the lands, if the following criteria are met:

(1) - (4) (No change.)

(5) plans for the postmining land use are designed under the general supervision of qualified [registered] professional engineer, who will ensure that the plans conform to applicable accepted standards for adequate land stability, drainage, vegetative cover, and aesthetic design appropriate for the postmining use of the site;

(6) - (9) (No change.)

§12.401.Primary Roads.

Primary roads shall meet the requirements of §12.400 of this title (relating to Roads: General) and the additional requirements of this section.

(1) Certification. The construction or reconstruction of primary roads shall be certified in a report to the Commission by a qualified [registered] professional engineer. The report shall indicate that the primary road has been constructed or reconstructed as designed and in accordance with the approved plan.

(2) - (5) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004388

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 3. PERMANENT PROGRAM PERFORMANCE STANDARDS--UNDERGROUND MINING ACTIVITIES

16 TAC §§12.511, 12.514, 12.517, 12.531, 12.534 - 12.536, 12.540, 12.543, 12.549, 12.567, 12.568, 12.570

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.511.Hydrologic Balance: Diversions.

(a) (No change.)

(b) Diversions of Perennial and Intermittent Streams.

(1) - (3) (No change.)

(4) The design and construction of all stream channel diversions of perennial and intermittent streams shall be certified by a qualified [registered] professional engineer as meeting the performance standards of §§12.500 - 12.572 of this title (relating to Permanent Program Performance Standards--Underground Mining Activities) and any design criteria set by the Commission.

(c) (No change.)

§12.514.Hydrologic Balance: Siltation Structures.

(a) (No change.)

(b) General requirements.

(1) - (2) (No change.)

(3) Siltation structures for an area shall be constructed before beginning any underground mining activities in that area, and upon construction shall be certified by a qualified [registered] professional engineer to be constructed as designed and as approved in the reclamation plan.

(4) - (6) (No change.)

(c) Sedimentation ponds.

(1) (No change.)

(2) A sedimentation pond shall include either a combination of principal and auxiliary [emergency] spillways or single spillway configured as specified in §12.517(a)(9) of this title (relating to Hydrologic Balance: Permanent and Temporary Impoundments).

(d) - (e) (No change.)

§12.517.Hydrologic Balance: Permanent and Temporary Impoundments.

(a) General Requirements. The requirements of this subsection apply to both temporary and permanent impoundments.

(1) Impoundments meeting the significant or high hazard class [Class B or C] criteria of dams in the U.S. Department of Agriculture (USDA), Natural Resources Conservation Service Technical Release No. 60 (210-VI-TR60, July 2005 [Oct. 1985]), Earth Dams and Reservoirs, shall comply with the table of Minimum Auxiliary [Emergency ] Spillway Hydrologic Criteria [table] in Technical Release No. 60 (TR-60), which is incorporated by reference, [TR-60 ] and the requirements of this section. [The Technical Release No. 60 is hereby incorporated by reference. Copies may be obtained from the National Technical Information Service (NTIS), 5285 Port Royal Road, Springfield, Virginia 22161, Order No. PB 87-157509/AS.] Copies may be obtained on the USDA website [can be inspected at the Commission's Surface Mining and Reclamation Division Office at 1701 North Congress Avenue, Austin, Texas].

(2) (No change.)

(3) The design of impoundments shall be certified in accordance with §12.190(a) of this title (relating to Reclamation Plan: Ponds, Impoundments, Banks, Dams, and Embankments) as designed to meet the requirements of this part using current, prudent, engineering practices and any design criteria established by the Commission. The qualified[, registered] professional engineer shall be experienced in the design and construction of impoundments.

(4) Stability.

(A) An impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a) shall have a minimum static factor of 1.5 for a normal pool with steady state seepage saturation conditions, and a seismic safety factor of at least 1.2.

(B) (No change.)

(5) Impoundments shall have adequate freeboard to resist overtopping by waves and by sudden increases in storage volume. Impoundments meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60 shall comply with the freeboard hydrograph criteria in the Minimum Auxiliary [Emergency] Spillway Hydrologic Criteria table in TR-60.

(6) Foundations.

(A) Foundations and abutments for an impounding structure shall be stable during all phases of construction and operation and shall be designed based on adequate and accurate information on the foundation conditions. For an impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a), foundation investigation, as well as any necessary laboratory testing of foundation material, shall be performed to determine the design requirements for foundation stability.

(B) (No change.)

(7) - (8) (No change.)

(9) An impoundment shall include either a combination of principal and auxiliary [emergency] spillways or a single spillway configured as specified in subparagraph (A) of this paragraph, designed and constructed to safely pass the applicable design precipitation event specified in subparagraph (B) of this paragraph.

(A) (No change.)

(B) Except as specified in subsection (c)(2) of this section, the required design precipitation event for an impoundment meeting the spillway requirements of this paragraph is:

(i) for an impoundment meeting the significant or high hazard class [Class B or C] criteria for dams in TR-60, the auxiliary [emergency] spillway hydrograph criteria in the Minimum Emergency Spillway Hydrologic Criteria table in TR-60, or greater event as specified by the Commission;

(ii) - (iii) (No change.)

(10) (No change.)

(11) A qualified [registered] professional engineer or other qualified professional specialist under the direction of a professional engineer, shall inspect each impoundment as provided in subparagraph (A) of this paragraph. The professional engineer or specialist shall be experienced in the construction of impoundments.

(A) (No change.)

(B) The qualified [registered] professional engineer shall promptly after each inspection required in subparagraph (A) of this paragraph provide the Commission a certified report that the impoundment has been constructed and/or maintained as designed and in accordance with the approved plan and this chapter. The report shall include discussion of any appearance of instability, structural weakness or other hazard condition, depth and elevation of any impounded waters, existing storage capacity, any existing or required monitoring procedures and instrumentation, and any other aspects of the structure affecting stability.

(C) (No change.)

(12) Impoundments meeting the NRCS significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216 must be examined in accordance with 30 CFR 77.216-3. Impoundments not meeting the NRCS Class B or C criteria for dams in TR-60, or subject to 30 CFR 77.216, shall be examined at least quarterly. A qualified person designated by the operator shall examine impoundments for the appearance of structural weakness and other hazardous conditions.

(13) (No change.)

(b) (No change.)

(c) Temporary Impoundments.

(1) (No change.)

(2) In lieu of meeting the requirements of subsection (a)(9)(A) of this section, the Commission may approve an impoundment that relies primarily on storage to control the runoff from the design precipitation event when it is demonstrated by the operator and certified by a qualified [registered] professional engineer that the impoundment will safely control the design precipitation event, the water from which shall be safely removed in accordance with current, prudent engineering practices. Such an impoundment shall be located where failure would not be expected to cause loss of life or serious property damage, except where:

(A) impoundments meeting the NRCS significant or high hazard class [Class B or C] criteria for dams in TR-60, or the size or other criteria of 30 CFR 77.216(a), shall be designed to control the precipitation of the probable maximum precipitation of a 6-hour event, or greater event as specified by the Commission; and

(B) impoundments not included in subparagraph (A) of this paragraph shall be designed to control the precipitation of the 100-year, 6-hour event, or greater event as specified by the Commission.

§12.531.Disposal of Underground Development Waste and Excess Spoil: General Requirements.

(a) (No change.)

(b) The fill shall be designed using recognized professional standards, certified by a qualified [registered] professional engineer, and approved by the Commission.

(c) - (i) (No change.)

(j) The fill shall be inspected for stability by a qualified [registered] professional engineer experienced in the construction of earth and rockfill embankments at least quarterly throughout construction, and during the following critical construction periods:

(1) - (5) (No change.)

(k) The qualified [registered] professional engineer shall provide to the Commission a certified report, within two weeks after each inspection that the fill has been constructed as specified in the design approved by the Commission. The certified report on the drainage system and protective filters shall include color photographs taken during and after construction, but before underdrains are covered with excess spoil. If the underdrain system is constructed in phases, each phase shall be certified separately. A copy of the report shall be retained at the minesite.

(l) - (q) (No change.)

§12.534.Disposal of Underground Development Waste and Excess Spoil: Durable Rock Fills.

(a) In lieu of the requirements of §12.532 and §12.533 of this title (relating to Disposal of Underground Development Waste and Excess Spoil: Valley Fills, and to Disposal of Underground Development Waste and Excess Spoil: Head-of-Hollow Fills), the Commission may approve alternate methods for disposal of hard rock spoil, including fill placement by dumping in a single lift, on a site-specific basis, provided the services of a qualified [registered] professional engineer experienced in the design and construction of earth and rockfill embankments are utilized, and provided the requirements of this section and §12.531 of this title (relating to Disposal of Underground Development Waste and Excess Spoil: General Requirements) are met. For this section, hard rock spoil shall be defined as rockfill consisting of at least 80% by volume of sandstone, limestone, or other rocks that do not slake in water. Resistance of the hard rock waste or spoil to slaking shall be determined by using the slake index and slake durability tests in accordance with guidelines and criteria established by the Commission.

(b) Waste or spoil is to be transported and placed in a specified and controlled manner which will ensure stability of the fill.

(1) (No change.)

(2) Loads of noncemented clay shale and/or clay spoil in the fill shall be mixed with hard rock waste spoil in a controlled manner to limit, on a unit basis, concentrations of noncemented clay shale and clay in the fill. Such materials will comprise no more than 20% of the fill volume as determined by tests performed by a qualified professional [registered] engineer and approved by the Commission.

(c) Requirements for design of earth and rockfill embankments shall include the following:

(1) stability analyses shall be made by the qualified [registered] professional engineer. Parameters used in the stability analyses shall be based on adequate field reconnaissance, subsurface investigations including borings, and laboratory tests; and

(2) (No change.)

(d) - (h) (No change.)

§12.535.Coal Mine Waste Banks: General Requirements.

(a) - (b) (No change.)

(c) The disposal facility shall be designed using current, prudent engineering practices and shall meet any design criteria established by the Commission. A qualified [registered] professional engineer experienced in the design of similar earth and waste structures shall certify the design of the disposal facility.

§12.536.Coal Mine Waste Banks: Site Inspection.

(a) All coal mine waste banks shall be inspected, on behalf of the person conducting underground mining activities, by a qualified professional [registered] engineer or other person approved by the Commission.

(1) - (4) (No change.)

(b) (No change.)

§12.540.Coal Mine Waste: Burned-Waste Utilization.

Before any burned coal mine waste or other materials or refuse is removed from a disposal area, approval shall be obtained from the Commission. A plan for the method of removal, with maps and appropriate drawings to illustrate the proposed sequence of the operation and methods of compliance with §§12.500 - 12.539, this section, and §§12.541 - 12.572 of this title (relating to Permanent Program Performance Standards--Underground Mining Activities), shall be submitted to the Commission. Consideration shall be given in the plan to potential hazards, which may be created by removal, to persons working or living in the vicinity of the structure. The plan shall be certified by a qualified [registered] professional engineer.

§12.543.Coal Mine Waste: Dams and Embankments: General Requirements.

(a) - (c) (No change.)

(d) If an impounding structure constructed of coal mine waste or intended to impound coal mine waste meets the criteria of the Mine Safety and Health Administration, 30 CFR 77.216(a), the combination of principal and auxiliary [emergency] spillways shall be able to safely pass the probable maximum precipitation of a 6-hour precipitation event, or greater event as specified by the Commission.

§12.549.Pipelines.

With respect to pipelines transmitting crude oil, liquid petroleum, natural gas, toxic or flammable substances:

(1) - (5) (No change.)

(6) comply with [rules and regulations pursuant to TEXAS REVISED CIVIL STATUTES ANNOTATED, ARTICLE 6053-1;] Railroad Commission of Texas[,] Pipeline Safety Rules (16 Texas Administrative Code, Chapter 8) and [§§7.70 et seq.);] 49 CFR 191, 192, and 199; and

(7) (No change.)

§12.567.Cessation of Operations: Permanent.

(a) - (b) (No change.)

(c) Persons who conduct underground mining activities shall submit to the Commission a written notice of intent to permanently cease and abandon mining operations as soon as the intent is finalized.

§12.568.Postmining Land Use.

(a) - (b) (No change.)

(c) Prior to the release of lands from the permit area in accordance with §12.313 of this title (relating to Criteria and Schedule for Release of Performance Bond), the permit area shall be restored in a timely manner, either to conditions capable of supporting the uses they were capable of supporting before any mining or to conditions capable of supporting approved alternative land uses. Alternative land uses may be approved by the Commission after consultation with the landowner or the land management agency having jurisdiction over the lands, if the following criteria are met:

(1) - (4) (No change.)

(5) plans for the postmining land use shall have been designed under the general supervision of a qualified [registered ] professional engineer, or other appropriate professional, who will ensure that the plans conform to applicable accepted standards for adequate land stability, drainage, vegetative cover, and aesthetic design appropriate for the postmining use of the site;

(6) - (9) (No change.)

§12.570.Primary Roads.

Primary roads shall meet the requirements of §12.569 of this title (relating to Roads: General) and the additional requirements of this section.

(1) Certification. The construction or reconstruction of primary roads shall be certified in a report to the Commission by a qualified [registered] professional engineer with experience in the design and construction of roads. The report shall indicate that the primary road has been constructed or reconstructed as designed and in accordance with the approved plan.

(2) - (5) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004389

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER L. PERMANENT PROGRAM INSPECTION AND ENFORCEMENT PROCEDURES

DIVISION 1. COMMISSION INSPECTION AND ENFORCEMENT

16 TAC §12.676

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.676.Alternative Enforcement.

(a) - (b) (No change.)

(c) Civil actions for relief.

(1) Under §134.173 of the Act, the Commission may request the Texas Attorney General to institute a civil action for relief whenever the permittee or an agent of the permittee:

(A) fails or refuses to comply with or violates [or fail or refuse to comply with] any order or decision issued [issues] by the Commission under the Act or regulatory program;

(B) - (F) (No change.)

(2) - (4) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004390

Haley Cochran

Rules Attorney, Office of General

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


DIVISION 2. ENFORCEMENT

16 TAC §12.679

The Commission proposes the amendments under Texas Natural Resources Code §134.011 and §134.013, which authorize the Commission to promulgate rules pertaining to surface coal mining operations.

Statutory Authority: Texas Natural Resources Code §134.011 and §134.013.

Cross-reference to statute: Texas Natural Resources Code §134.011 and §134.013.

§12.679.Suspension or Revocation of Permits.

(a) Pattern of violations.

(1) Except as provided in subsection (b) of this section, the Director of the Surface Mining and Reclamation Division shall issue an order to a permittee requiring the permittee [him ] to show cause why the [his] permit and right to mine under the Act should not be suspended or revoked[,] if the Director of the Surface Mining and Reclamation Division [he] determines that a pattern of violations of any requirements of the Act, this chapter (relating to Coal Mining Regulations), or any permit condition required by the Act exists or has existed, and that the violations were caused by the permittee willfully or through unwarranted failure to comply with those requirements or conditions. Violations by any person conducting surface coal mining operations on behalf of the permittee shall be attributed to the permittee, unless the permittee establishes that they were acts of deliberate sabotage.

(2) The Director of the Surface Mining and Reclamation Division may determine that a pattern of violations exists or has existed, based on two or more inspections of the permit area within any 12-month period, after considering the circumstances, including:

(A) (No change.)

(B) the number of violations, cited on more than one occasion, of different requirements of the Act, this chapter [(relating to Coal Mining Regulations)], the applicable program, or the permit; and

(C) (No change.)

(3) The Director of the Surface Mining and Reclamation Division shall determine that a pattern of violations exists, if the Director [he] finds that there were violations of the same or related requirements of the Act, this chapter [(relating to Coal Mining Regulations)], or the permit during three or more inspections of the permit area within any 12-month period.

(b) Discretion of the Division Director. The Director of the Surface Mining and Reclamation Division may decline to issue a show cause order, or may vacate an outstanding show cause order, if the Director of the Surface Mining and Reclamation Division [he] finds that, taking into account exceptional factors present in the particular case, it would be demonstrably unjust to issue or to fail to vacate the show cause order. The basis for this finding shall be fully explained and documented in the records of the case. [;]

(c) - (f) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004391

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


CHAPTER 13. REGULATIONS FOR COMPRESSED NATURAL GAS (CNG)

The Railroad Commission of Texas (Commission) proposes amendments, new rules, and repeals in 16 TAC Chapter 13, relating to Regulations for Compressed Natural Gas (CNG). In Subchapter A, Scope and Definitions, the Commission proposes amendments to §13.1, Applicability, Severability, and Retroactivity; the repeal of §13.2, Retroactivity; amendments to §13.3, Definitions; §13.4, CNG Forms; and §13.15, Penalty Guidelines and Enforcement.

In Subchapter B, General Rules for Compressed Natural Gas (CNG) Equipment Qualifications, the Commission proposes amendments to §13.21, Applicability; and §13.22, Odorization; new §13.23, Installation and Maintenance; amendments to §13.24, School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections; and §13.25, Filings Required for Stationary CNG Installations; the repeal of §13.26, Design and Construction of Cylinders, Pressure Vessels, and Vapor Recovery Receivers; new §13.26, Notice of, Objections to, and Hearings on Proposed Stationary CNG Installations; the repeal of §§13.27 - 13.33, Pressure Relief Devices; Pressure Gauges; Pressure Regulators; Piping; Valves; Hose and Hose Connections; and Compression Equipment; amendments to §13.34, Vehicle Fueling Connection; §13.35, Application for an Exception to a Safety Rule; and §13.36, Report of CNG Incident/Accident; new §13.37, Appurtenances and Equipment; amendments to §13.38, Removal from CNG Service; §13.39, Filling Unapproved Containers Prohibited; and §13.40, Manufacturer's Nameplates and Markings on ASME Containers.

In Subchapter C, Classification, Registration, and Examination, the Commission proposes amendments to §13.61, License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals; §13.62, Insurance Requirements; §13.63, Self-Insurance Requirements; §13.64, Irrevocable Letter of Credit; the repeal of §13.65, Statements in Lieu of Insurance Certificates; amendments to §13.67, Changes in Ownership, Form of Dealership, or Name of Dealership; the repeal of §13.68, Dealership Name Change; amendments to §13.69, Registration and Transfer of CNG Cargo Tanks or Delivery Units; §13.70, Examination and Exempt Registration Requirements and Renewals; §13.71, Hearings for Denial, Suspension, or Revocation of Licenses, Manufacturer Registrations, or Certificates; §13.72, Designation and Responsibilities of Company Representatives and Operations Supervisors; §13.73, Employee Transfers; §13.75, Franchise Tax Certification and Assumed Name Certificate; and §13.80, Requests for CNG Classes.

In Subchapter D, CNG Compression, Storage, and Dispensing Systems, the Commission proposes the repeal of §13.92, System Component Qualification; amendments to §13.93, System Protection Requirements; the repeal of §§13.94 - 13.105, Location of Installations; Installation of Cylinders and Cylinder Appurtenances; Installation of Pressure Relief Devices; Installation of Pressure Regulators; Installation of Pressure Gauges; Installation of Piping and Hoses; Testing; Installation of Emergency Shutdown Equipment; Installation of Electrical Equipment; Stray or Impressed Currents and Bonding; Operation; and Fire Protection; and amendments to §13.106, Maintenance; and §13.107, Dispenser Installation.

In Subchapter E, Engine Fuel Systems, the Commission proposes the repeal of §13.132, System Component Qualification; amendments to §13.133, Installation of Fuel Supply Containers; the repeal of §§13.134 - 13.141, Installation of Venting Systems; Installation of Piping; Installation of Valves; Installation of Pressure Gauges; Installation of Pressure Regulators; Installation of Fueling Connection; Labeling; and System Testing; amendments to §13.142, Maintenance and Repair; and §13.143, Venting of CNG to the Atmosphere.

In Subchapter F, Residential Fueling Facilities, the Commission proposes the repeal of §13.182, Scope; amendments to §13.183, System Component Qualifications; the repeal of §§13.184 - 13.186, General; Installation; and Outdoor Installations; amendments to §13.187, Installation of Pressure Relief Devices; the repeal of §13.188 and §13.189, Installation of Pressure Gauges; and Pressure Regulation; amendments to §13.190, Piping and Hose; and the repeal of §§13.191 - 13.194, Testing; Installation of Emergency Shutdown Equipment; Operation; and Maintenance and Inspection.

The Commission proposes new Subchapter G, Adoption by Reference of NFPA 52 (Vehicular Gaseous Fuel Systems Code) to include new §13.201, Adoption by Reference of NFPA 52; §13.202, Clarification of Certain Terms Used in NFPA 52; and §13.203, Sections in NFPA 52 Adopted with Additional Requirements or Not Adopted.

The Commission proposes new Subchapter H, Adoption by Reference of NFPA 55 (Compressed Gases and Cryogenic Fluids Code) to include new §13.301, Adoption by Reference of NFPA 55; §13.302, Clarification of Certain Terms Used in NFPA 55; and §13.303, Sections in NFPA 55 Adopted with Additional Requirements or Not Adopted. The Commission proposes to adopt the two NFPA standards to establish requirements for Texas CNG licensees and consumers consistent with most other states in the United States. Because NFPA 52 and 55 have been adopted in whole or in part by many states, the Texas CNG industry would benefit from their adoption because Texas companies would be held to the same standards.

The Commission proposes the amendments, new rules, and repeals to update and clarify the Commission's CNG rules. The main purpose of the proposal is to adopt by reference NFPA 52 and 55 in the proposed new rules in Subchapters G and H. In addition to the proposed new rules, the Commission proposes amendments to certain rules to incorporate or update references to sections in the NFPA standards, as well as other nonsubstantive clarifications. Rules proposed with these types of amendments include §§13.3, 13.4, 13.23, 13.25, 13.36, 13.37, 13.61, and 13.70.

Several rules are proposed for repeal; with the proposed adoption by reference of NFPA 52 and 55, these rules are no longer necessary. Rules proposed for repeal include §§13.2, 13.26 - 13.33, 13.68, 13.92, 13.94 - 13.105, 13.132, 13.134 - 13.141, 13.182, 13.184 - 13.186, 13.188, 13.189, and 13.191 - 13.194.

Other rules with proposed amendments to add references to NFPA sections and make other clarifying changes include §§13.22, 13.34, 13.35, 13.38, 13.40, 13.93, 13.107, 13.133, 13.143, 13.183, 13.187, and 13.190.

The second purpose for the proposed amendments, new rules, and repeals is to implement changes from the 86th Legislative Session. House Bill 2127 removed the requirement that manufacturers of CNG containers obtain a license from the Commission and instead requires registration with the Commission. Proposed changes to reflect this statutory change are found in §§13.3, 13.15, 13.61 - 13.63, 13.67, 13.70, 13.71, and 13.75. Operators will not be required to comply with changes directly related to manufacturer registrations until approximately February 15, 2021. Upon adoption, the Commission will specify the effective date relating to requirements for manufacturer registration.

These rules also include proposed nonsubstantive amendments to clarify existing language, correct outdated language such as incorrect division and department names, update references to other Commission rules, and ensure language throughout Chapter 13, and throughout the Commission's alternative fuels regulations, is consistent. Clarifying changes include amendments to improve readability such as removing repetitive language, adding internal cross references, and including language from a referenced section (e.g., a fee amount) to give the reader better access to applicable requirements.

Proposed amendments in §13.1 clarify that the requirements of Chapter 13 apply to the operation of CNG compression and dispensing systems in addition to their design and installation. Proposed subsections (b) and (c) are moved from §13.21. Proposed subsection (d) is moved from §13.2, which is proposed for repeal.

Proposed amendments to §13.3 remove definitions of terms that no longer appear in Chapter 13 or are only used within one section and, therefore, do not need to be defined. The proposed amendments add definitions of "certificate holder," "certified," "licensed," "licensee," "operations supervisor," "registered manufacturer," "rules examination," "trainee," and "transfer system" as those terms are now used throughout the chapter. The proposed amendments also clarify several existing definitions.

Proposed amendments in §13.4 remove the list of official forms from the rule language to ensure consistency with other chapters. All Commission forms are now located on the Commission's website. The proposed amendments also specify the form amendment and adoption process, which is consistent with forms referenced in other Commission chapters.

Proposed new §13.23, relating to Installation and Maintenance, is added to ensure consistency among the Commission's alternative fuels regulations. It requires all CNG containers, valves, dispensers, accessories, piping, transfer equipment, and gas utilization equipment to be installed and maintained in safe working order according to the manufacturer's instructions and the rules in Chapter 13.

Proposed amendments in §13.24, in addition to general updates and clarifications, clarify existing filing requirements for registering a CNG transport.

In addition to incorporating NFPA requirements, proposed amendments to §13.25 make minor updates for clarity and change requirements to ensure consistency among the Commission's alternative fuels regulations. The amendments also reorganize the rule; several subsections are moved within §13.25 and subsection (l) was removed and relocated to §13.37.

Proposed new §13.26 specifies the process for notice of, objections to, and hearings on proposed stationary installations. The Commission's other alternative fuels regulations contain this process and it is added here for consistency.

Proposed amendments to §13.36 clarify existing requirements and align the rules with the accident and incident reporting procedures in Chapter 9 of this title.

Proposed amendments in §13.61 include changes to implement the registration requirement from House Bill 2127. "Manufacturer registration" is included alongside references to applications for license and exemptions, and the license categories are updated to include licenses currently offered by the Commission, including Categories 1A and 1B. Proposed new subsection (k) requires a new form, CNG Form 1001M, and specifies that a container manufacturer registration authorizes the manufacture, assembly, repair, testing and sale of CNG containers. The original registration fee is $1,000; the renewal fee is $600. Other proposed wording generally clarifies license requirements and reflects the proposed adoption of NFPA 52 and 55.

Proposed amendments to §13.67 specify the requirements for any changes in ownership, form of dealership, or name of dealership. The new rule incorporates existing procedures and reflects the process from the corresponding rule in Chapter 9 of this title.

Proposed amendments to §13.69 clarify requirements for registration and transfer of CNG cargo tanks or delivery units and conform the rule to similar provisions in Chapter 9 of this title.

Proposed amendments in §13.70 include requirements for individuals who perform work, directly supervise CNG activities, or are employed in any capacity requiring contact with CNG, in addition to certain NFPA-related amendments previously discussed. The proposed amendments also ensure "certificate" and "certificate holder" are used throughout instead of using "certificate," "certificate holder," "certified," and "certification" inconsistently. Proposed wording clarifies requirements for certificate renewal and steps to renew a lapsed certificate. Proposed new wording specifies that an individual who passes the applicable examination with a score of at least 75% will become a certificate holder, clarifies where and when examinations are available, and states what an examinee must bring to the exam site. Further, the proposed wording incorporates the examinations and their descriptions, which were previously included in a table, and clarifies the process for obtaining a management-level certificate.

Proposed amendments in §13.72 clarify filing requirements for company representatives, operations supervisors, and outlets, in addition to NFPA-related amendments previously discussed. The proposed amendments specify the requirements for designating company representatives and operations supervisors, and change wording from "termination" to "conclusion of employment" to better communicate AFS's intent for when a licensee must notify AFS of a company representative's or operations supervisor's departure.

Amendments proposed in §13.73 update the process for licensees who hire certificate holders, including allowing notification to the Commission to include only the last four digits of the employee's Social Security Number.

Proposed amendments in §13.93 include updates due to NFPA changes and also require uprights, braces, and cornerposts to be anchored in concrete a minimum of 12 inches below the ground. This change ensures consistency among the Commission's alternative fuels regulations.

Proposed amendments in §13.107 include updates due to NFPA changes and also add language previously found in other sections of the chapter. New language proposed in subsection (b) was moved from subsection (d) of §13.93 (relating to System Protection Requirements) and new language proposed in subsection (d) of §13.107 was moved from §13.104(i) (relating to Operation).

Proposed amendments in §13.142 remove specific requirements related to damaged supply lines and pressure relief devices and add a provision requiring removal of a vehicle from CNG service if any component is not in safe working order.

Other proposed amendments are nonsubstantive clarifications or updates such as correcting Commission department or division names, reorganization of the rule text, or other similar revisions. These types of amendments are proposed in §§13.21, 13.39, 13.64, 13.71, 13.73, 13.80, and 13.106.

April Richardson, Director, Alternative Fuels Safety Department, has determined that there will be a one-time cost to the Commission of approximately $23,275 in programming costs based on 490 hours of programming to implement changes required by HB 2127. This cost will be covered using the Commission's existing budget. Further, AFS will have a one-time cost to purchase copies of NFPA 52 and 55. The copies of NFPA standards will be provided to all inspectors, to managers at the AFS Austin office, and to examinees and instructors across the state. The total estimated cost to replace these books is $9,912. This cost will also be covered using AFS's existing budget. There are no anticipated fiscal implications for local governments as a result of enforcing the amendments and new rules.

Ms. Richardson has determined that there will be minimal costs for those required to comply with the proposed amendments. Any cost stems from the need to purchase the new copies of NFPA 52 and/or NFPA 55 if a person required to comply does not already own a copy. The softbound copies of NFPA 52 and NFPA 55 total $125.50. Manufacturers who are no longer required to obtain a license will save $20 per company representative per year, as the certificate renewal requirements will not apply to these employees.

Ms. Richardson has also determined that the public benefit anticipated as a result of enforcing or administering the amendments will be compliance with recent changes to the Texas Natural Resources Code and increased public safety due to new NFPA standards.

In accordance with Texas Government Code, §2006.002, the Commission has determined there will be no adverse economic effect on rural communities, small businesses or micro-businesses resulting from the proposed amendments and new rule; therefore, the Commission has not prepared the economic impact statement or the regulatory flexibility analysis required under §2006.002.

The Commission has determined that the proposed rulemaking will not affect a local economy; therefore, pursuant to Texas Government Code, §2001.022, the Commission is not required to prepare a local employment impact statement for the proposed rules.

The Commission has determined that the proposed amendments and new rule do not meet the statutory definition of a major environmental rule as set forth in Texas Government Code, §2001.0225; therefore, a regulatory analysis conducted pursuant to that section is not required.

During the first five years that the rules would be in effect, the proposed amendments would not: create or eliminate a government program; create or eliminate any employee positions; require an increase or decrease in future legislative appropriations; increase fees paid to the agency; create a new regulation; increase or decrease the number of individuals subject to the rule's applicability; expand, limit, or repeal an existing regulation; or effect the state's economy. The amendments are proposed to align Commission rules with governing state statutes and national standards. The amendments would decrease fees paid to the agency because due to HB 2127, manufacturers no longer require a license. Thus, a registered manufacturer is not required to pay $20 per company representative for annual certificate renewal.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.texas.gov/general-counsel/rules/comment-form-for-proposed-rulemakings; or by electronic mail to rulescoordinator@rrc.texas.gov. The Commission will accept comments until 12:00 noon on Monday, December 14, 2020. The Commission finds that this comment period is reasonable because the proposal and an online comment form will be available on the Commission's website more than two weeks prior to Texas Register publication of the proposal, giving interested persons additional time to review, analyze, draft, and submit comments. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Ms. Richardson at (512) 463-6935. The status of Commission rulemakings in progress is available at www.rrc.texas.gov/general-counsel/rules/proposed-rules.

SUBCHAPTER A. SCOPE AND DEFINITIONS

16 TAC §§13.1, 13.3, 13.4, 13.15

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.1.Applicability, Severability, and Retroactivity [Scope].

(a) This chapter applies to the design, [and ] installation, and operation of compressed natural gas (CNG) compression and dispensing systems; the design and installation of CNG engine fuel systems on vehicles of all types and their associated fueling facilities; and the construction and operation of equipment for the [; CNG systems used for compression,] storage, handling, and [sale,] transportation[, delivery, or distribution] of CNG [for any purpose; and all CNG mobile fuel systems].

(b) If any term, clause, or provision of these rules is for any reason declared invalid, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

(c) Nothing in these rules shall be construed as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring licensure.

(d) Unless otherwise stated, the rules in this chapter are not retroactive. Any installation of a CNG system shall meet the requirements of this chapter at the time of installation.

(e) [(b)] This chapter shall not apply to:

(1) the production, transportation, storage, sale, or distribution of natural gas that is subject to Commission jurisdiction under Subtitle A or B, Title 3, Texas Utilities Code;

(2) pipelines, fixtures, equipment, or facilities to the extent that they are subject to the safety regulations promulgated and enforced by the Railroad Commission of Texas pursuant to Natural Resources Code, Chapter 117, or Subchapter E, Chapter 121, Texas Utilities Code; or

(3) the design and installation of any CNG system in ships, barges, sailboats, or other types of watercraft. Such installation is subject to the American Board and Yacht Council (ABYC) and any other applicable standards.

(f) [(c)] This [Subchapters A, B, C, D, E, and F of this] chapter shall not apply to vehicles and fuel supply containers that:

(1) are manufactured or installed by original equipment manufacturers; and

(2) comply with Title 49, Code of Federal Regulations, the Federal Motor Vehicle Safety Standards. [; and]

[(3) comply with the National Fire Protection Association (NFPA) Code 52, Compressed Natural Gas (CNG) Vehicular Systems Code.]

(g) [(d)] Vehicles and fuel supply containers excluded from the requirements [of subchapters A through F] of this chapter pursuant to subsection (f) [(c)] of this section shall comply with the requirements of §13.24 of this title (relating to School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections) [ , relating to Filings Required for School Bus, Mass Transit, and Special Transit Installations].

§13.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) AFS [AED]‑‑The Commission's Alternative Fuels Safety department within the Commission's Oversight and Safety [Energy] Division.

[(2) AFRED‑‑The organizational unit of the AED that administers the Commission's alternative fuels research and education program, including CNG certification, exempt registration, and training.]

(2) [(3)] ANSI‑‑American National Standards Institute.

(3) [(4)] ASME‑‑American Society of Mechanical Engineers.

(4) [(5)] ASME Code‑‑ASME Boiler and Pressure Vessel Code.

(5) [(6)] ASTM‑‑ASTM International (formerly American Society for Testing and Materials).

(6) [(7)] Automatic dispenser‑‑A CNG dispenser which is operated by a member of the general public and which requires transaction authorization.

(7) [(8)] Building‑‑A structure with walls and a roof resulting in the structure being totally enclosed.

(8) [(9)] Cascade storage system‑‑Storage in multiple cylinders.

(9) Certificate holder-‑An individual:

(A) who has passed the required management‑level or employee‑level examination pursuant to §13.70 of this title (relating to Examination and Exempt Registration Requirements and Renewal) and paid applicable fees; or

(B) who holds a current examination exemption pursuant to §13.70 of this title.

(10) Certified--An individual who is authorized by the Commission to perform the CNG activities covered by the certification issued under §13.70 of this title.

(11) [(10)] CNG‑‑See "Compressed natural gas" in this section.

(12) [(11)] CNG cargo tank‑‑A container which complies with ASME or DOT specifications used to transport CNG for delivery.

(13) [(12)] CNG cylinder‑‑A cylinder or other container designed for use or used as part of a CNG system.

(14) [(13)] CNG system‑‑A system of safety devices, cylinders, piping, fittings, valves, compressors, regulators, dryers, gauges, relief devices, vents, installation fixtures, and other CNG equipment intended for use or used in any building or public place by the general public [commercial installation], or used in conjunction with a motor vehicle or mobile fuel system fueled by CNG, and [or] any system or facilities designed to be used or used in the compression, sale, storage, transportation for delivery, or distribution of CNG in portable CNG cylinders, but does not include [not including] natural gas facilities, equipment, or pipelines located upstream of the outlet of the natural gas meter [inlet of a compressor devoted entirely to CNG].

(15) [(14)] Commercial installation‑‑Any CNG installation located on premises other than a single family dwelling used as a residence, or a private agricultural installation, including but not limited to a retail business establishment, school, convalescent home, hospital, retail CNG cylinder filling/exchange operation, service station, forklift refueling facility, or private motor/mobile fuel cylinder filling operation.

(16) [(15)] Commission‑‑The Railroad Commission of Texas.

(17) [(16)] Company representative‑‑The individual designated to the Commission by a license applicant or a licensee as the principal individual in authority and actively supervising the conduct of the licensee's CNG activities [An owner or employee of a licensee designated by that licensee to take any required examinations and to actively supervise CNG operations of the licensee].

(18)[(17)] Compressed natural gas‑‑Natural gas primarily [which is a mixture of hydrocarbon gases and vapors] consisting [principally ] of methane (CH4) [(CH4 )] in gaseous state [form] that is compressed and used, stored, sold, transported, or distributed for use by or through a CNG system.

(19) [(18)] Container‑‑A pressure vessel cylinder or cylinders permanently manifolded together used to store CNG.

(20) [(19)] Cylinder service valve‑‑A hand‑wheel operated valve connected directly to a CNG cylinder.

(21) [(20)] Director‑‑The director of the AFS [AED] or the director's delegate.

(22) [(21)] Dispensing [area or dispensing] installation‑‑A CNG installation that dispenses CNG from any source by any means into fuel supply cylinders installed on vehicles or into portable cylinders.

(23) [(22)] DOT‑‑The United States Department of Transportation.

(24) [(23)] Flexible metal hose‑‑Metal hose made from continuous tubing that is corrugated for flexibility and, if used for pressurized applications, has an external wire braid.

(25) [(24)] Fuel supply cylinder‑‑A cylinder mounted upon a vehicle for storage of CNG as fuel supply to an internal combustion engine.

(26) [(25)] Interim approval order‑‑The authority issued by the Railroad Commission of Texas following a public hearing allowing construction of a CNG installation.

(27) Licensed--Authorized by the Commission to perform CNG activities through the issuance of a valid license.

(28) Licensee--A person which has applied for and been granted a CNG license by the Commission.

[(26) Location‑‑A site operated by a CNG licensee at which the licensee carries on an essential element of its CNG activities, but where the activities of the site alone do not qualify the site as an outlet.]

[(27) LP‑Gas Operations‑‑The organizational unit of the AED that administers the CNG safety program, including licensing, truck registration, installation approvals, complaint and accident investigations, inspections of stationary installations and vehicles, and code enforcement.]

[(28) Manifold‑‑The assembly of piping and fittings used to connect cylinders.]

(29) Mass transit vehicle‑‑Any vehicle which is owned or operated by a political subdivision of a state, city, or county and primarily used in the conveyance of the general public.

(30) Metallic hose‑‑Hose in which the strength of the hose depends primarily on the strength of metallic parts, including liners or covers.

(31) Mobile fuel container‑‑A CNG container mounted on a vehicle to store CNG as the fuel supply for uses other than the engine to propel the vehicle, including use in an auxiliary engine [motor fuel].

(32) Mobile fuel system‑‑A CNG system which supplies natural gas fuel to an auxiliary engine other than the engine used to propel the vehicle or for other uses on the vehicle.

(33) Motor fuel container‑‑A CNG container mounted on a vehicle to store CNG as the fuel supply to an engine used to propel the vehicle.

(34) Motor fuel system‑‑A CNG system [excluding the container which supplies CNG] to supply natural gas as a fuel for an engine used to propel the vehicle.

(35) Motor vehicle‑‑A self‑propelled vehicle licensed for highway use or used on a public highway.

(36) Operations supervisor--The individual who is certified by the Commission to actively supervise a licensee's CNG activities and is authorized by the licensee to implement operational changes.

(37) [(36)] Outlet‑‑A site operated by a CNG licensee from which any regulated CNG activity is performed [at which the business conducted materially duplicates the operations for which the licensee is initially granted a license].

(38) [(37)] Person‑‑An individual, [sole proprietor,] partnership, firm, joint venture, association, corporation, or any other business entity, a state agency or institution, county, municipality, school district, or other governmental subdivision, or licensee.

(39) [(38)] Point of transfer‑‑The point where the fueling connection is made.

[(39) Pressure‑filled‑‑A method of transferring CNG into cylinders by using pressure differential.]

(40) Pressure relief device [valve]‑‑A device designed to provide a means of venting excess pressure to prevent rupture of a normally charged cylinder.

(41) Public transportation vehicle‑‑A vehicle for hire to transport persons, including but not limited to taxis, buses (excluding school buses, mass transit, or special transit vehicles), or airport courtesy cars.

(42) Pullaway‑‑The accidental separation of a hose from a cylinder, container, transfer equipment, or dispensing equipment, which could occur on a cylinder, container, transfer equipment, or dispensing equipment whether or not they are protected by a pullaway or breakaway device.

(43) Registered manufacturer--A person who has applied for and been granted a registration to manufacture CNG containers by the Commission.

[(43) Representative‑‑The individual designated by an applicant or licensee as the principal individual in authority who is responsible for actively supervising the licensee's CNG activities.]

(44) Residential fueling facility‑‑An assembly and its associated equipment and piping at a residence used for the compression and delivery of natural gas into vehicles.

(45) Rules examination--The Commission's written examination that measures an examinee's working knowledge of Texas Natural Resources Code, Chapter 116, and the rules in this chapter.

(46) [(45)] School‑‑A public or private institution which has been accredited through the Texas Education Agency or the Texas Private School Accreditation Commission.

[(46)] School bus‑‑A vehicle that is sold or used for purposes that include carrying students to and from school or related events.

[(47) Settled pressure‑‑The pressure in a container at 70 degrees Fahrenheit, which cannot exceed the marked service or design pressure of the cylinder.]

(48) Special transit vehicle‑‑A vehicle designed with limited passenger capacity which is used by a [school or] mass transit authority for special transit purposes, such as transport of mobility impaired persons.

(49) Trainee--An individual who has not yet taken and passed an employee-level rules examination.

(50) Transfer system--All piping, fittings, valves, pumps, compressors, meters, hoses, and equipment used in transferring CNG between containers.

(51) [(49)] Transport‑‑Any vehicle or combination of vehicles and CNG cylinders designed or adapted for use or used principally as a means of moving or delivering CNG from one place to another, including but not limited to any truck, trailer, semitrailer, cargo tank, or other vehicle used in the distribution of CNG.

(52) [(50)] Ultimate consumer‑‑The person controlling CNG immediately prior to its ignition.

§13.4.CNG Forms.

Forms required to be filed with AFS shall be those prescribed by the Commission. A complete set of all required forms shall be posted on the Commission's web site. Notice of any new or amended forms shall be issued by the Commission. A person may file the prescribed form on paper or use any electronic filing process. Any form filed with the Commission shall be completed in its entirety. The Commission may at its discretion accept an earlier version of a prescribed form provided that it contains all required information. [Under the provisions of the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has designated the following forms for use:]

[Figure: 16 TAC §13.4]

§13.15.Penalty Guidelines and Enforcement [for CNG Safety Violations].

(a) Policy. Improved safety and environmental protection are the desired outcomes of any enforcement action. Encouraging licensees, [and] certificate holders, and registered manufacturers to take appropriate voluntary corrective and future protective actions once a violation has occurred is an effective component of the enforcement process. Deterrence of violations through penalty assessments is also a necessary and effective component of the enforcement process. A rule‑based enforcement penalty guideline to evaluate and rank CNG‑related violations is consistent with the central goal of the Commission's enforcement efforts to promote compliance. Penalty guidelines set forth in this section will provide a framework for more uniform and equitable assessment of penalties throughout the state, while also enhancing the integrity of the Commission's enforcement program.

(b) Guidelines [Only guidelines]. This section complies with the requirements of Texas Natural Resources Code, §81.0531. The penalty amounts contained in the tables in this section are provided solely as guidelines to be considered by the Commission in determining the amount of administrative penalties for violations [of provisions] of Texas Natural Resources Code, [Title 3,] Chapter 116[, relating to compressed natural gas]; of rules, orders, licenses, permits, or certificates relating to CNG safety adopted under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference.

(c) Commission authority. The establishment of these penalty guidelines shall in no way limit the Commission's authority and discretion to assess administrative penalties. The typical minimum penalties listed in this section are for the most common violations cited; however, this is neither an exclusive nor an exhaustive list of violations that the Commission may cite. The Commission retains full authority and discretion to cite violations of Texas Natural Resources Code, [Title 3,] Chapter 116[, relating to compressed natural gas]; of rules, orders, licenses, registrations, permits, or certificates relating to CNG safety adopted or issued under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference, and to assess administrative penalties in any amount up to the statutory maximum when warranted by the facts in any case, regardless of inclusion in or omission from this section.

(d) Factors considered. The amount of any penalty requested, recommended, or finally assessed in an enforcement action will be determined on an individual case‑by‑case basis for each violation, taking into consideration the following factors:

(1) the person's history of previous violations;

(2) the seriousness of the previous violations;

(3) any hazard to the health or safety of the public; and

(4) the demonstrated good faith of the person charged.

(e) Typical penalties. Regardless of the method by which the typical penalty amount is calculated, the total penalty amount will be within the statutory limit [maximum]. Typical penalties for violations [of provisions] of Texas Natural Resources Code, [Title 3,] Chapter 116[, relating to compressed natural gas]; of rules, orders, licenses, registrations, permits, or certificates relating to CNG safety adopted under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference, are set forth in Table 1.

Figure: 16 TAC §13.15(e) (.pdf)

[Figure: 16 TAC §13.15(e)]

(f) Penalty enhancements for certain violations. For violations that involve threatened or actual safety hazards, or that result from the reckless or intentional conduct of the person charged, the Commission may assess an enhancement of the typical penalty. The enhancement may be in any amount in the range shown for each type of violation, as shown in Table 2.

Figure: 16 TAC §13.15(f) (No change.)

(g) Penalty enhancements for certain violators. For violations in which the person charged has a history of prior violations within seven years of the current enforcement action, the Commission may assess an enhancement based on either the number of prior violations or the total amount of previous administrative penalties, but not both. The actual amount of any penalty enhancement will be determined on an individual case‑by‑case basis for each violation. The guidelines in Tables 3 and 4 are intended to be used separately. Either guideline may be used where applicable, but not both.

Figure 1: 16 TAC §13.15(g) (No change.)

Figure 2: 16 TAC §13.15(g) (No change.)

(h) Penalty reduction for settlement before hearing. The recommended monetary penalty for a violation may be reduced by up to 50% if the person charged agrees to a settlement before the Commission conducts an administrative hearing to prosecute a violation. Once the hearing is convened, the opportunity for the person charged to reduce the basic monetary penalty is no longer available. The reduction applies to the basic penalty amount requested and not to any requested enhancements.

(i) Demonstrated good faith. In determining the total amount of any monetary penalty requested, recommended, or finally assessed in an enforcement action, the Commission may consider, on an individual case‑by‑case basis for each violation, the demonstrated good faith of the person charged. Demonstrated good faith includes, but is not limited to, actions taken by the person charged before the filing of an enforcement action to remedy, in whole or in part, a violation or to mitigate the consequences of a violation.

(j) Other sanctions. Depending upon the nature of and the consequences resulting from a violation of the rules in this chapter, the Commission may impose a non‑monetary penalty, such as requiring attendance at a safety training course, or may issue a warning.

(k) Penalty calculation worksheet. The penalty calculation worksheet shown in Table 5 lists the typical penalty amounts for certain violations; the circumstances justifying enhancements of a penalty and the amount of the enhancement; and the circumstances justifying a reduction in a penalty and the amount of the reduction.

Figure: 16 TAC §13.15(k) (.pdf)

[Figure: 16 TAC §13.15(k)]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004395

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §13.2

The Commission proposes the repeal under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.2.Retroactivity.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004394

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER B. GENERAL RULES FOR COMPRESSED NATURAL GAS (CNG) EQUIPMENT QUALIFICATIONS

16 TAC §§13.21 - 13.26, 13.34 - 13.40

The Commission proposes the amendments and new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.21.Applicability [and Severability].

[(a)] The provisions of this subchapter apply to pressurized components of a CNG [compressed natural gas (CNG)] system, and are applicable to both engine fuel systems and compression, storage, and dispensing systems.

[(b) If any item, clause, or provision of these rules is for any reason declared invalid, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.]

[(c) Nothing in these rules shall be construed as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring licensure.]

§13.22.Odorization.

[(a) Compressed natural gas shall have a distinctive odor potent enough for its presence to be detected down to a concentration in air of not over one‑fifth of the lower limit of flammability.]

(a) [(b)] In addition to NFPA 52 §5.2.1.1, compressed [Compressed] natural gas shall be odorized according to the provisions of Texas Utilities Code, §§121.251 and 121.252[, in effect at the time the gas is odorized].

(b) Containers installed in accordance with NFPA 55 that will contain unodorized CNG shall be legibly marked "NON‑ODORIZED" or "NOT ODORIZED" on two opposing sides of the container.

§13.23.Installation and Maintenance.

In addition to NFPA 52 §6.13.2, all CNG containers, valves, dispensers, accessories, piping, transfer equipment, and gas utilization equipment shall be installed and maintained in safe working order according to the manufacturer's instructions and the rules in this chapter. If any one of the CNG storage containers, valves, dispensers, accessories, piping, transfer equipment, gas utilization equipment, and appliances is not in safe working order, AFS may require that the installation be immediately removed from CNG service and not be operated until the necessary repairs have been made.

§13.24.[Filings Required for] School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections.

(a) After the manufacture of or the conversion to a CNG system on any vehicle to be used in Texas as a school bus, mass transit, public transportation, or special transit vehicle, the manufacturer, licensee, or ultimate consumer making the installation or conversion shall notify AFS [LP‑Gas Operations] in writing on CNG Form 1503 that the applicable CNG‑powered vehicles are ready for a complete inspection to determine compliance with the rules in this chapter.

(b) AFS shall conduct the inspection within a reasonable time to ensure the vehicles are operating in compliance with the rules in this chapter.

(1) If AFS' [LP‑Gas Operations'] initial complete inspection finds the vehicle in compliance with the rules in this chapter and the statutes, the vehicle may be placed into CNG service. For fleet installations of identical design, an initial inspection shall be conducted prior to the operation of the first vehicle, and subsequent vehicles of the same design may be placed into service without prior inspections. [Subsequent inspections shall be conducted within a reasonable time frame to ensure the vehicles are operating in compliance with the rules in this chapter.]

(2) If violations exist at the time of the initial complete inspection, the vehicle shall not be placed into CNG service and the manufacturer, licensee, or ultimate consumer making the installation or conversion shall correct the violations. The manufacturer, licensee, or ultimate consumer shall file with AFS [LP-Gas Operations] documentation demonstrating compliance with the rules in this chapter, or AFS [LP-Gas Operations] shall conduct another complete inspection before the vehicle may be placed into CNG service.

(3) For public transportation vehicles only, if AFS does not conduct the initial inspection within 30 business days of receipt of CNG Form 1503, the vehicle may be operated in CNG service if it complies with the rules in this chapter.

(c) The manufacturer, licensee, or ultimate consumer making the installation or conversion shall be responsible for compliance with the rules in this chapter, statutes, and any other local, state, or federal requirements.

(d) If the requested AFS [LP-Gas Operations ] inspection identifies violations requiring modifications by the manufacturer, licensee, or ultimate consumer, AFS [LP-Gas Operations] shall consider the assessment of an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

§13.25.Filings Required for Stationary CNG Installations.

(a) General requirements. In addition to NFPA 52 §7.3.1, and NFPA 55 §4.1, no [No] CNG container shall be placed into CNG service or an installation operated or used in CNG service until the requirements of this section, as applicable, are met and the facility is in compliance with the rules in this chapter and all applicable statutes, in addition to any applicable requirements of the municipality or the county where an installation is or will be located.

(b) Installations with an aggregate [Aggregate ] storage capacity [in excess] of 84,500 standard cubic feet or more [240 standard cubic feet water volume]. The storage capacity of each container is based on the container's operating pressure.

(1) For installations with an aggregate storage capacity [in excess] of 84,500 standard cubic feet or more [240 standard cubic feet water volume], the licensee shall submit the following information to AFS [LP-Gas Operations] at least 30 days prior to construction:

(A) [(1)] CNG Form 1500;

(B) [(2)] CNG Form 1500A with all applicable documents;

(C) [(3)] a plat drawing from the appropriate appraisal district identifying:

(i) the facility's property boundaries;

(ii) the names of all real property owners within 500 feet; and

(iii) a 500-foot radius measured from the proposed container location on the site;

(D) [(4)] a site plan of sufficient scale that identifies:

(i) [(A)] the location, types, and sizes of all CNG containers and compression and dispensing equipment already on site or proposed to be on site;

(ii) [(B)] the distances from the containers, compression equipment, dispensing equipment, and material handling equipment to [the] property lines, buildings on the same property, any electric transmission lines, and railroads [and railroad, pipeline, or roadway rights‑of‑way; and]. If the area where the container and/or compression equipment will be installed is a leased area or utility easement, the site plan shall indicate the boundaries of the leased area or utility easement, regardless of the size of the property in which the lease or easement lies;

(iii) [(C)] any known potential hazards; [.]

(iv) location of CNG dispensers and their distance from any proposed container (the nearest container if more than one), property lines, buildings on the same property, roadways, and railroad track centerlines;

(v) location of the nearest public sidewalk, highway, street, or road and its distance to containers and equipment;

(vi) location of all sources of ignition;

(vii) location of other types of aboveground fuel containers, the type of fuel stored, and the distance to CNG containers and dispensing equipment; and

(viii) the location of other types of fuel dispensers, the type of fuel dispensed, and the distance to CNG containers and dispensing equipment.

(E) [(5)] a nonrefundable fee of $50 for the initial application, or a nonrefundable fee of $30 for a resubmission; and [. A nonrefundable fee of $30 shall be required for any resubmission.]

(F) if the facility is accessed by cargo tanks from a public highway under the jurisdiction of the Texas Department of Transportation, a statement or permit from the Texas Department of Transportation showing that the driveway is of proper design and construction to allow safe entry and egress of the CNG cargo tanks.

(2) Printed copies of site plans with a legend must be printed to the correct size for the legend or distance provided.

(3) Prior to the installation of any individual CNG container, AFS shall determine whether the proposed installation constitutes a danger to the public health, safety, and welfare. The Commission does not consider public health, safety, and welfare to include such factors as the value of property adjacent to the installation, the esthetics of the proposed installation, or similar considerations. The applicant shall provide additional information if requested by AFS. AFS may impose restrictions or conditions on the proposed CNG installation based on one or more of the following factors:

(A) nature and density of the population or occupancy of structures within 500 feet of the proposed or existing container locations;

(B) nature of use of property located within 500 feet of the CNG installation;

(C) type of activities on the installation's premises;

(D) potential sources of ignition that might affect a CNG leak;

(E) existence of dangerous or combustible materials in the area that might be affected by an emergency situation;

(F) any known potential hazards or other factors material to the public health, safety, and welfare.

(4) [(c)] AFS [LP-Gas Operations] shall notify the applicant in writing outlining its findings.

(A) When AFS notifies an applicant of an incomplete CNG Form 1500 or CNG Form 1500A, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, the applicant shall file a new application to reactivate AFS review of the proposed installation.

(B) The applicant may request in writing an extension of the 120-day time period. The request shall be postmarked or physically delivered to AFS before the expiration date. AFS may extend the application period for up to an additional 90 days.

(5) If the application is administratively denied:

(A) AFS shall specify the deficiencies in the written notice required in paragraph (3) of this subsection.

(B) The [, the] applicant shall [may] modify the submission and resubmit it for approval or [may] request a hearing on the matter in accordance with [the general rules of practice and procedure of the Railroad Commission of Texas in] Chapter 1 of this title (relating to Practice and Procedure). If the Commission finds after a public hearing that the proposed installation complies with the rules in this chapter and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:

(i) the applicant has introduced CNG into the system prior to final approval;

(ii) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the rules in this chapter, or the statutes of the State of Texas; or

(iii) the installation constitutes a danger to the public health, safety, and welfare.

(6) The licensee shall not commence construction until notice of approval is received from AFS.

(A) If the subject installation is not completed within one year from the date AFS has granted construction approval, the application will expire.

(B) Prior to the date of expiration, the applicant may request in writing an extension of time of up to 90 days to complete the installation.

(C) If the applicant fails to request an extension of time within the time period prescribed in this paragraph, the applicant shall submit a new application before the installation can be completed.

(7) The applicant shall submit to AFS written notice of completed construction and the Commission shall complete the field inspection as specified in subsection (e) of this section. After the Commission has completed the inspection, the operator, pending the inspection findings, may commence CNG activities at the facility.

(8) A licensee shall not be required to submit CNG Form 1500, CNG Form 1500A, or a site plan prior to the installation of dispensers, equipment, piping, or when maintenance and improvements are being made at an existing CNG installation.

(9) If a licensee is replacing a container with a container of the same or less overall diameter and length or height, and is installing the replacement container in the identical location of the existing container, the licensee shall file CNG Form 1500.

(10) AFS may request CNG Form 1008, a Manufacturer's Data Report, or any other documentation or information pertinent to the installation in order to determine compliance with the rules in this chapter.

(11) For an installation that is a licensee outlet, the licensee shall submit CNG Form 1001A within 30 days of installation, in accordance with §13.61(j) of this title (relating to License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals).

[(d) If the Railroad Commission finds after a public hearing that the proposed installation complies with the rules in this chapter and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Railroad Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:]

[(1) the applicant has introduced CNG into the system prior to final approval; or]

[(2) a physical inspection of the installation indicates that it is not installed in] compliance with the submitted plat drawing for the installation, the rules in this chapter, or the statutes of the State of Texas; or]

[(3) the installation constitutes a danger to the public health, safety, and welfare.]

[(e) If a CNG stationary installation, equipment, or appurtenances not specifically covered by the rules in this chapter has been or will be installed, LP-Gas Operations shall apply and require any reasonable safety provisions to ensure the CNG installation is safe for CNG service. If the affected entity disagrees with LP-Gas Operations' determination, the entity may request a hearing. The installation shall not be placed in CNG operation until LP-Gas Operations has determined the installation is safe for CNG service.]

(c) [(f)] Commercial installations with an aggregate [Aggregate] storage capacity of less than 240 standard cubic feet water volume. The storage capacity of each container is based on the container's operating pressure.

(1) Within 10 calendar days following the completion of a commercial container installation, the licensee shall submit CNG Form 1501 to AFS [LP-Gas Operations] stating:

(A) the installation fully complies with the statutes and the rules in this chapter;

(B) all necessary Commission [CNG] licenses, [and] certificates, and permits have been issued; and

(C) the date the installation has been placed into [in] CNG service.

(2) The licensee shall pay [Pay] a nonrefundable fee of $10 for each [ASME] container, [or DOT cylinder] cascade, and compressor listed on the form. One fee is required for each cascade regardless of the number of cylinders in the cascade. [A nonrefundable fee of $20 shall be required for any resubmission.]

(A) AFS shall review the submitted information and shall notify the applicant in writing of any deficiencies.

(B) A nonrefundable fee of $20 shall be required for any resubmission.

(3) CNG activities may commence prior to the submission of CNG Form 1501 if the facility is in compliance with the rules in this chapter.

[(g) Notice of complete or incomplete form. LP-Gas Operations shall review all applications within 21 business days of receipt of all required information and shall notify the applicant in writing of any deficiencies.]

[(h) Expiration of application; extension.]

[(1) When LP-Gas Operations notifies an applicant of an incomplete CNG Form 1500, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, a new application shall be filed should the applicant wish to reactivate LP-Gas Operations review of the proposed installation.]

[(2) If the applicant requests an extension of the 120‑day time period in writing, postmarked or physically delivered to LP-Gas Operations before the expiration date, the application may be renewed for up to 90 days as determined by LP-Gas Operations.]

[(3) If the subject installation is not completed within one year from the date of LP-Gas Operations' completed review, the applicant shall resubmit the application for LP-Gas Operations' review.]

(d) [(i)] Physical inspection of stationary installations.

(1) Aggregate storage capacity [in excess] of 240 standard cubic feet water volume or more. The applicant shall notify AFS in writing [LP-Gas Operations] when the installation is ready for inspection.

(A) If any non-compliance items are cited at the time of AFS' initial inspection, the installation shall not be placed into CNG service until the non-compliance items are corrected, as determined at the time of inspection, depending on the nature of the non-compliance items cited.

(B) If AFS [LP-Gas Operations] does not physically inspect the facility within 30 calendar days of receipt of notice that the facility is ready for inspection, the facility [applicant] may operate [the facility] conditionally until the initial [complete] inspection is completed [made]. [If any safety rule violations exist at the time of the initial inspection, the applicant may be required to cease CNG operation until the applicant corrects the violations.]

(2) Aggregate storage capacity of less than 240 standard cubic feet water volume. After receipt of CNG Form 1501, AFS [LP-Gas Operations] shall conduct an inspection as soon as possible to verify the installation described complies with the rules in this chapter. The facility may be operated [The applicant may operate the facility] prior to inspection if the facility fully complies with the rules in this chapter. If [any CNG statute or safety rule violations exist at the time of] the initial inspection at a commercial installation results in the citation of non-compliance items, AFS may require that [LP-Gas Operations may immediately remove] the subject container, including any piping, appliances, appurtenances, or equipment connected to it be immediately removed from CNG service until the applicant corrects the non-compliance items [violations].

(3) [(j)] Material variances. If AFS [LP-Gas Operations] determines the completed installation varies materially from the application originally accepted, correction of the variance and notification to AFS [the applicant shall correct the variance and notify LP-Gas Operations of the correction of the variance] or resubmittal of [resubmit] the application is required. AFS' [LP-Gas Operations'] review of such resubmitted application shall comply with subsection (b)(3) of [the procedure described in] this section.

(4) [(k)] In the event an applicant has requested an inspection and AFS' [LP-Gas Operations'] inspection identifies non-compliance items [violations] requiring modifications by the applicant, AFS [LP-Gas Operations] may assess an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

[(l) Appurtenances and equipment.]

[(1) All appurtenances and equipment placed into CNG service shall be certified, marked, or listed by a nationally recognized laboratory such as Underwriters Laboratory (UL), Factory Mutual (FM), CSA International, or such other laboratories approved by LP-Gas Operations unless:]

[(A) it is specifically prohibited for use by another section of this chapter; or]

[(B) there is no test specification or procedure developed by the testing laboratory for the appurtenance or equipment.]

[(2) Appurtenances and equipment that cannot be listed but are not prohibited for use by the rules in this chapter shall be acceptable for CNG service provided the appurtenances and equipment are installed in compliance with the applicable rules in this chapter.]

[(3) The licensee or operator of the appurtenances or equipment shall maintain documentation sufficient to substantiate any claims made regarding the safety of any valves, fittings, and equipment and shall, upon request, furnish copies to LP-Gas Operations.]

[(4) Compliance under this section does not ensure conformity with other state and federal regulations, such as those of the Texas Commission on Environmental Quality or its successor agencies.]

§13.26.Notice of, Objections to, and Hearings on Proposed Stationary CNG Installations.

(a) Notice of proposed stationary CNG installations.

(1) For a proposed installation with an aggregate storage capacity of 84,500 standard cubic feet or more, an applicant shall send a copy of the filings required under §13.25 of this title (relating to Filings Required for Stationary CNG Installations) by certified mail, return receipt requested or otherwise delivered, to all owners of real property situated within 500 feet of any proposed container location at the same time the originals are filed with AFS.

(A) AFS shall consider the notice to be sufficient when the applicant has provided evidence that copies of a complete application have been mailed or otherwise delivered to all real property owners.

(B) The applicant or licensee may obtain names and addresses of owners from current county tax rolls.

(2) An applicant shall notify owners of real property situated within 500 feet of the proposed container location if:

(A) the current aggregate storage capacity of the installation is more than doubled in a 12-month period; or

(B) the resulting aggregate storage capacity of the installation will be more than 1,014,000 standard cubic feet.

(b) Objections to proposed stationary CNG installations.

(1) Each owner of real property receiving notice of a proposed installation pursuant to subsection (a) of this section shall have 18 calendar days from the date the notice is postmarked to file a written objection with AFS using the CNG Form 1500A sent to them by the applicant. An objection is considered timely filed when it is actually received by the Commission. AFS shall review all objections within 10 business days of receipt. An objection shall be in writing and shall include a statement of facts showing that the proposed installation:

(A) does not comply with the rules in this chapter, specifying which rules are violated;

(B) does not comply with the statutes of the State of Texas, specifying which statutes are violated; or

(C) constitutes a danger to the public health, safety, and welfare, specifying the exact nature of the danger. For purposes of this section, "danger" means an imminent threat or an unreasonable risk of bodily harm, but does not mean diminished property or esthetic values in the area.

(2) Upon review of the objection, AFS shall:

(A) request a public hearing as specified in §13.71 of this title (relating to Hearing for Denial, Suspension, or Revocation of Licenses, Manufacturer Registrations, or Certificates); or

(B) notify the objecting party in writing within 10 business days of receipt requesting further information for clarification and stating why the objection is not valid. The objecting entity shall have 10 calendar days from the postmark of AFS' letter to file its corrected objection. Clarification of incomplete or non-substantive objections shall be limited to two opportunities. If new objections are raised in the objecting party's clarification, the new objections shall be limited to one notice of correction.

(c) Hearings on stationary CNG installations.

(1) Reason for hearing. AFS shall call a public hearing if:

(A) AFS receives an objection that complies with subsection (b) of this section; or

(B) AFS determines that a hearing is necessary to investigate the impact of the installation.

(2) Notice of public hearing. The Hearings Division shall give notice of the public hearing at least 21 calendar days prior to the date of the hearing to the applicant and to all real property owners who were required to receive notice of the proposed installation under subsection (a) of this section.

(3) Procedure at hearing. The public hearing shall be conducted pursuant to Chapter 1 of this title (relating to Practice and Procedure).

(4) Hearing findings. If the Railroad Commission finds after a public hearing that the proposed installation complies with the rules in this chapter and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Railroad Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:

(A) the applicant has introduced CNG into the system prior to final approval; or

(B) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the rules in this chapter, or the statutes of the State of Texas; or

(C) the installation constitutes a danger to the public health, safety, and welfare.

§13.34.Vehicle Fueling Connection.

[(a) A vehicle fueling connection shall provide for the reliable and secure connection of the fuel system cylinders to a source of compressed natural gas (CNG).]

[(b) The fueling connection shall be suitable for the pressure expected under normal conditions and corrosive conditions which might be encountered.]

[(c) The fueling connection shall prevent escape of gas when the connector is not properly engaged or becomes separated.]

[(d)] In addition to NFPA 52 §6.9.3, the [The] refueling connection on an engine fuel system shall be firmly supported, and shall:

(1) receive the fueling connector and accommodate the service pressure of the vehicle fuel system;

(2) incorporate a means to prevent the entry of dust, water, and other foreign material. If the means used is capable of sealing system pressure, it shall be capable of being depressurized before removal; and

(3) have a [different] fueling connection appropriate for the [each] pressure of the [base] vehicle fuel system.

[(e) Any vehicle that will be fueled by an automatic dispenser shall be equipped with a fueling connection that complies with ANSI/AGA NGV1, Requirements for Natural Gas Vehicles (NGV) Refueling Connection Devices, Requirement 1‑90.]

§13.35.Application for an Exception to a Safety Rule.

(a) In addition to NFPA 52 §4.3 and for any alternate design used for installations subject to NFPA 55 requirements, a [A] person may apply for an exception to the provisions of this chapter by filing CNG Form 1025 along with supporting documentation and a $50 filing fee with AFS [LP-Gas Operations].

(b) The application shall contain the following:

(1) the section number of any [applicable] rules for which an exception is being requested;

(2) the type of relief desired, including the exception requested and any information which may assist AFS [LP-Gas Operations] in comprehending the requested exception;

(3) a concise statement of facts which supports the applicant's request for the exception, such as the reason for the exception, the safety aspects of the exception, and the social and/or economic impact of the exception;

(4) for all stationary installations, regardless of size, a description of the acreage and/or address upon which the subject of the exception will be located. The description shall be in writing and shall include:

(A) a site drawing;

(B) sufficient identification of the site so that determination of property boundaries may be made;

(C) a plat from the applicable appraisal district indicating the ownership of the land; and

(D) the legal authority under which the applicant, if not the owner, is permitted occupancy; [.]

(5) the name, business address, and telephone number of the applicant and of the authorized agent, if any; and

[(6) an original signature, in ink, by the party filing the application or by the authorized representative;]

(6) [(7)] a list of the names and addresses of all interested entities as defined in subsection (c) of this section.

(c) Notice of the application for an exception to a safety rule.

(1) The applicant shall send a copy of CNG Form 1025 by certified mail, return receipt requested, to all affected entities as specified in paragraphs (2), (3), and (4) of this subsection on the same date on which the form is filed with or sent to AFS [LP-Gas Operations]. The applicant shall include a notice to the affected entities that any objection shall be filed with AFS [LP-Gas Operations] within 18 calendar days of the date of postmark. The applicant shall file all return receipts with AFS [LP-Gas Operations] as proof of notice.

(2) If an exception is requested on a stationary site, the affected entities to whom the applicant shall give notice shall include but not be limited to:

(A) persons and businesses owning or occupying property adjacent to the site;

(B) the city council or fire marshal, if the site is within municipal limits; and

(C) the county Commission, if the site is not within any municipal limits.

(3) If an exception is requested on a nonstationary site, affected entities to whom the applicant shall give notice include but are not limited to:

(A) the Texas Department of Public Safety; and

(B) all CNG loading and unloading facilities utilized by the applicant.

(4) AFS [LP-Gas Operations] may require an applicant to give notice to persons in addition to those listed in paragraphs (2) and (3) of this subsection if doing so will not prejudice the rights of any entity.

(d) Objections to the requested exception shall be in writing, filed with AFS [LP-Gas Operations] within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that, as proposed, the exception would have an adverse effect on public health, safety, or welfare. AFS [LP-Gas Operations] may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

(e) AFS [LP-Gas Operations] shall review the application within 21 business days of receipt of the application.

(1) If AFS [LP-Gas Operations] does not receive any objections from any affected entities as defined in subsection (c) of this section, the AFS [LP-Gas Operations] director may administratively grant the exception if the AFS [LP-Gas Operations] director determines that the installation, as proposed, does not adversely affect the health or safety of the public. AFS [LP-Gas Operations] shall notify the applicant in writing by the end of the 21‑day review period and, if approved, the installation shall be installed within one year from the date of approval. AFS [LP-Gas Operations] shall also advise the applicant at the end of the objection period as to whether any objections were received and whether the applicant may proceed.

(2) If the AFS [LP-Gas Operations ] director denies the exception, AFS [LP-Gas Operations] shall notify the applicant in writing, outlining the reasons and any specific deficiencies.

(3) The applicant may modify the application to correct the deficiencies and resubmit the application along with a $30 resubmission fee, or may request a hearing on the matter.

(A) To be granted a hearing, the applicant shall file a written request for hearing within 14 calendar days of receiving notice of the administrative denial.

(B) [(f)] A hearing shall be held when AFS [LP-Gas Operations] receives an objection as set out in subsection (d) of this section from any affected entity, or when the applicant requests one following an administrative denial. AFS [LP-Gas Operations] shall forward the request for hearing to the Hearings Division [mail the notice of hearing to the applicant and all objecting entities by certified mail, return receipt requested, at least 21 calendar days prior to the date of the hearing. Hearings will be held in accordance with the Texas Government Code, Chapter 2001, et seq., Chapter 1 of this title (relating to Practice and Procedure), and this chapter].

(f) [(g)] Applicants intentionally submitting incorrect or misleading information are subject to penalties in the Texas Natural Resources Code, §116.142, and the filing of incorrect or misleading information shall be grounds for dismissing the application with prejudice.

(g) [(h)] After hearing, exceptions to this chapter may be granted by the Commission if the Commission finds that granting the exception for the installation, as proposed, will not adversely affect the safety of the public.

[(i) Temporary exception. For good cause shown, LP-Gas Operations may grant a temporary exception, which shall not exceed 30 days, to the examination requirements for representatives and operations supervisors. Good cause shall include the death of a sole proprietor or partner. An applicant for a temporary exception shall comply with all applicable safety requirements and LP-Gas Operations shall obtain information showing that the exception will not be hazardous to the public.]

(h) [(j)] A request for an exception shall expire if it is inactive for three months [90 calendar days] after the date of the letter in which the applicant was notified by AFS [LP-Gas Operations] of an incomplete request. Additional time may be granted upon request if needed to generate engineering results or calculations. The applicant may restart the application process [resubmit an exception request].

§13.36.Report of CNG Incident/Accident.

(a) At the earliest practical moment or within two hours following discovery, a licensee owning, operating, or servicing equipment or an installation shall notify AFS by telephone of any event involving CNG which:

(1) caused a death or personal injury requiring hospitalization;

(2) required taking an operating facility out of service;

(3) resulted in unintentional gas ignition requiring emergency response;

(4) meets the requirements of subsection (c) of this section;

(5) caused an estimated damage to the property of the operator, others or both totaling $50,000 or more, including gas loss;

(6) involves a [In case of an incident involving] single release of CNG [compressed natural gas (CNG)] during or following CNG transfer or during container transportation[, or an accident at any location where CNG is the cause or is suspected to be the cause, the licensee owning, operating, or servicing the equipment or the installation shall notify LP-Gas Operations by telephone within two hours of discovery after the licensee has knowledge of the incident or accident]. Any loss of CNG which is less than 1.0% of the gross amount delivered, stored, or withdrawn need not be reported. However, any loss occurring as a result of a pullaway shall be reported; [. Any individual reporting shall leave his or her name, and telephone number where he or she can be reached for further information.]

(7) could reasonably be judged as significant because of rerouting of traffic, evacuation of buildings, or media interest, even though it does not meet paragraphs (1) - (6) of this subsection; or

(8) is required to be reported to any other state or federal agency (such as the Texas Department of Public Safety or the United States Department of Transportation).

(b) The telephonic notice [telephone notification] required by this section shall be made to the Railroad Commission's 24‑hour emergency line at (512) 463‑6788 or (844) 773-0305 and shall include the following [information ]:

(1) date and time of the incident [or accident];

[(2) type of structure or equipment involved;]

(2) [(3) resident's or operator's] name of reporting operator;

(3) phone number of operator;

(4) [physical] location of leak or incident;

(5) personal [number of] injuries and/or fatalities;

(6) whether fire, explosion, or gas leak has occurred;

(7) status of [whether] gas leak or other immediate hazards [is leaking]; [and]

(8) other significant facts relevant to the incident; and

(9) [(8)] whether immediate assistance from AFS [LP-Gas Operations] is requested.

(c) Any transport unit required to be registered with AFS [LP-Gas Operations] in accordance with §13.69 of this title (relating to Registration and Transfer of CNG Cargo Tanks and Delivery Units [Transports and CNG Form 1004 Decal or Letter of Authority]) which is involved in an accident where there is damage to the tank, piping or appurtenances, or any release of CNG resulting from an accident shall be reported to AFS [LP-Gas Operations] in accordance with this section regardless of the accident location. Any CNG powered motor vehicle used for school transportation or mass transit including any state owned vehicle which is involved in an accident resulting in a substantial release of CNG or damage to the CNG conversion equipment shall be reported to AFS [LP-Gas Operations] in accordance with this section regardless of accident location.

(d) Following the initial telephone report, the licensee who made the telephonic report shall submit [a] CNG Form 1020 to AFS [, Report of CNG Incident/Accident, shall be submitted to LP-Gas Operations]. The form [report] shall be postmarked within 14 calendar days of the date of initial notification to AFS, or within five business days of receipt of the fire department report, whichever occurs first, unless AFS grants authorization for a longer period of time when additional investigation or information is necessary [LP-Gas Operations].

(e) Within five business days of receipt, AFS shall review CNG Form 1020 and notify in writing the person submitting CNG Form 1020 if the report is incomplete and specify in detail what information is lacking or needed. Incomplete reports may delay the resumption of CNG activities at the involved location.

§13.37.Appurtenances and Equipment.

(a) In addition to NFPA 52 §5.3.1, all appurtenances and equipment placed into CNG service shall be certified, marked, or listed by a nationally recognized laboratory such as Underwriters Laboratory (UL), Factory Mutual (FM), CSA International, or such other laboratories approved by AFS unless:

(1) it is specifically prohibited for use by another section of this chapter; or

(2) there is no test specification or procedure developed by the testing laboratory for the appurtenance or equipment.

(b) In addition to NFPA 52 §1.4.1, appurtenances and equipment that cannot be listed but are not prohibited for use by the rules in this chapter shall be acceptable for CNG service provided the appurtenances and equipment are installed in compliance with the applicable rules in this chapter.

(c) In addition to NFPA 52 §1.4.1.2, the licensee or operator of the appurtenances or equipment shall maintain documentation sufficient to substantiate any claims made regarding the safety of any valves, fittings, and equipment and shall, upon request, furnish copies to AFS.

(d) Compliance under this section does not ensure conformity with other state and federal regulations, such as those of the Texas Commission on Environmental Quality or its successor agencies.

(e) Components of CNG stationary installations which are not specifically covered by the rules in this chapter shall not be placed into service until AFS has determined the installation complies with the rules in this chapter. AFS may require any change to a proposed stationary installation which the Commission may consider necessary to ensure the CNG installation is safe for CNG service. If the affected party disagrees with AFS' determination, the party may request a hearing as described in §13.15 of this title (relating to Penalty Guidelines and Enforcement). However, the installation shall not be placed into CNG operation until the Commission has determined the installation complies with the rules of this chapter.

§13.38.Removal from CNG Service.

(a) In addition to NFPA 55 §§7.1.14 and 7.1.15 and for any installations subject to NFPA 52 requirements, if AFS [If LP-Gas Operations] determines that any CNG [compressed natural gas (CNG)] cylinder or installation constitutes an immediate danger to the public health, safety, and welfare, AFS [LP-Gas Operations] shall require the immediate removal of all [the] CNG and/or the immediate disconnection by a properly licensed company to the extent necessary to eliminate the danger. This may include [If LP-Gas Operations determines that any CNG appliance,] equipment[,] or any part of the system including the service container. A warning tag shall be attached by AFS until the unsafe condition is remedied. Once the unsafe condition is remedied, the tag may be removed by an AFS inspector or by the licensee if authorized by AFS [constitutes an immediate danger to the public health, safety, and welfare, LP-Gas Operations shall require the immediate disconnection by a properly licensed company of such appliance, equipment, or system from the CNG cylinder it services].

(b) If the affected entity disagrees with the removal from service and/or placement of a warning tag[, or with LP-Gas Operations' findings in subsection (a) of this section], the entity may request a review of AFS' decision within 10 calendar days [an investigation into the matter]. Within 10 business days, AFS [LP-Gas Operations] shall notify such entity of its finding in writing, stating the deficiencies. If the entity disagrees, the entity may request or AFS [LP-Gas Operations] on its own motion may request [call] a hearing. Such installation shall be brought into compliance or removed from service until such time as the final decision is rendered by the Commission.

§13.39.Filling Unapproved Containers Prohibited.

A [No] licensee or the licensee's employees shall not introduce CNG [compressed natural gas (CNG)] into any container if the licensee or employee [he] has knowledge or reason to believe [notice] that such [CNG] container, cylinder, piping, or system is unsafe or is [was] not installed in accordance with Texas Natural Resources Code, Chapter 116, or [the statutes of the State of Texas, and with] the rules in this chapter [and regulations in effect at the time of installation.] [Exception:] This section does not apply to motor fuel or mobile fuel containers and systems installed on vehicles licensed in states other than Texas.

§13.40.Manufacturer's Nameplates and Markings on ASME Containers.

(a) In addition to NFPA 52 §5.4.5.1 and NFPA 55 §7.1.6.1, compressed [Compressed] natural gas (CNG) shall not be introduced into any American Society of Mechanical Engineers (ASME) container which is not equipped with a manufacturer's original or replacement nameplate [or a manufacturer's replacement nameplate] permanently attached to the container or has the required information stamped directly on the vessel. No ASME container manufactured on or after November 1, 1994, shall be used in the State of Texas unless it has attached to it a stainless steel manufacturer's nameplate or the required information is visibly stamped directly on the vessel. If the nameplate is attached, it [The nameplate] shall be attached in a manner that will minimize corrosion of the nameplate or its attachments or that will not contribute to the corrosion of the container.

(b) If the nameplate is attached directly to the container, the nameplate thickness shall be sufficient to resist distortion due to the application of markings and fusion welding.

(c) Container nameplates shall be stamped or etched with the following information in legible characters:

(1) the mark or symbol approved by ASME indicating compliance with the provisions of the ASME Pressure Vessel Code;

(2) the name and address of the manufacturer;

(3) the capacity of the container in standard cubic feet;

(4) the maximum allowable working pressure of the container in pounds per square inch (psi);

[(5) the wording "This container shall not contain a product having a vapor pressure in excess of _____ pounds per square inch at a temperature of 100 degrees Fahrenheit];

(5) [(6)] the thickness of the material used in both the shell and heads;

(6) [(7)] the overall length of the container, the outside diameter of the container, and the dish radius of the heads;

(7) [(8)] the serial number of the container; and

(8) [(9)] the date of manufacture.

(d) Nameplates attached to or markings on [shall be attached to] the container shall [so as to] remain visible after installation of the containers.

(e) Containers manufactured prior to November 1, 1994, which may have corroded or rusted nameplates shall have the following minimum information readable on the manufacturer's nameplate:

(1) name of the container manufacturer;

(2) manufacturer's serial number;

(3) working pressure; and

(4) [water] capacity.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004397

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§13.26 - 13.33

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.26.Design and Construction of Cylinders, Pressure Vessels, and Vapor Recovery Receivers.

§13.27.Pressure Relief Devices.

§13.28.Pressure Gauges.

§13.29.Pressure Regulators.

§13.30.Piping.

§13.31.Valves.

§13.32.Hose and Hose Connections.

§13.33.Compression Equipment.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004396

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER C. CLASSIFICATION, REGISTRATION, AND EXAMINATION

16 TAC §§13.61 - 13.64, 13.67, 13.69 - 13.73, 13.75, 13.80

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.61.License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals [Licenses, Related Fees, and Licensing Requirements].

(a) A prospective licensee may apply to AFS [LP-Gas Operations] for one or more licenses specified in subsection (b)(1) ‑ (7) [(6)] of this section. Fees required to be paid by subsection (b)(1) - (7) of this section [shall be those established by the Commission and in effect at the time of licensing or renewal] shall be paid at the time of application or renewal. [A person shall not engage in CNG activities unless that person has obtained a license as specified in this section. If a license expires or lapses, the person shall immediately cease CNG operations.]

(b) The license categories and fees are as follows.

(1) A Category 1 license for container assembly and repair [manufacturers of CNG cylinders] authorizes the [manufacture,] assembly, repair, testing, sale, installation, and [or] subframing of ASME or DOT CNG containers [cylinders]. A Category 1 license includes all activities covered by both the Category 1A and 1B licenses. The original license fee is $1,000; the renewal fee is $600.

(2) A Category 1A license for ASME container assembly and repair authorizes the assembly, repair, testing, sale and installation of ASME containers. The original license fee is $1,000; the renewal fee is $600.

(3) A Category 1B license for U.S. Department of Transportation (DOT) container assembly and repair authorizes the assembly, repair, testing, sale, installation, and subframing, of CNG DOT containers. The original license fee is $1,000; the renewal fee is $600.

(4) [(2)] A Category 2 license for general installers and repairmen authorizes the sale, installation, service, or repair of CNG systems, including cylinders. The original license fee is $300; the renewal fee is $150.

(5) [(3)] A Category 3 license for retail and wholesale dealers authorizes the sale, storage, transportation for delivery, or dispensing of CNG for use other than by an ultimate consumer, and the sale, installation, service, or repair of CNG systems as set out in Categories 2, 5, and 6. The original license fee is $750; the renewal fee is $300.

(6) [(4)] A Category 4 license for testing laboratories authorizes the testing of CNG cylinders. The original license fee is $400; the renewal fee is $200.

(7) [(5)] A Category 5 license for service stations or cylinder exchangers authorizes the operation of a CNG service station, including filling CNG cylinders, or the operation of a cylinder exchange dealership, including filling CNG cylinders, the sale of CNG in cylinders, the sale of CNG cylinders, and the replacement of cylinder valves. The original license fee is $150; the renewal fee is $70.

[(6) A Category 6 license for equipment dealers authorizes the sale of CNG cylinders or systems. The original license fee is $100; the renewal fee is $50.]

(c) A military service member, military veteran, or military spouse shall be exempt from the original license fee specified in subsection (b) of this section pursuant to the requirements in §13.76 of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from the renewal or transport registration fees specified in subsection (n) of this section and §13.69 of this title (relating to Registration and Transfer of CNG Cargo Tanks or Delivery Units).

(d) In addition to NFPA 55 §7.1.12, no person may engage in CNG activities until that person has obtained a license from the Commission authorizing that activity, except as follows:

(1) A state agency or institution, county, municipality, school district or other governmental subdivision is exempt from licensing requirements as provided in Texas Natural Resources Code, §116.031(d), if the entity is performing CNG activities on its own behalf, but is required to obtain a license to perform CNG activities for or on behalf of a second party.

(2) [(c)] An ultimate consumer is not subject to the licensing requirements of this chapter [title] in order to perform those CNG activities dealing only with the ultimate consumer; however, a license is required to register a transport or cylinder delivery unit. An ultimate consumer's license does not require a fee or a company representative.

(3) [(d)] An original manufacturer of a new motor vehicle powered by CNG or a subcontractor of a manufacturer who produces a new CNG powered motor vehicle for the manufacturer is not subject to the licensing requirements of this chapter, but shall comply with all other rules [regulations for compressed natural gas] in this chapter.

(e) A license obtained by an individual, partnership, corporation, or other legal entity shall extend to the entity's employees who are performing CNG activities [work], provided that each employee is properly certified as required by this chapter.

(f) An applicant for license shall not engage in CNG activities until it has employed a company representative who meets the requirements of §13.72 of this title (relating to Designation and Responsibilities of Company Representative and Operations Supervisor).

(g) [(f)] Licensees, registered manufacturers, company representatives, and operations supervisors at each outlet shall have copies of all current licenses and/or manufacturer registrations and certification cards for employees at that location available for inspection during regular business hours. In addition, licensees and registered manufacturers shall maintain a current version of the rules in this chapter and any adopted codes covering CNG activities performed by the licensee or manufacturer, and shall provide at least one copy of all publications to each company representative and operations supervisor. The copies shall be available to employees during business hours [shall maintain a copy of the current Regulations for Compressed Natural Gas and shall provide at least one copy to each company representative and operations supervisor. The copies shall be available to employees during business hours].

[(g) Licensees shall have copies of all current licenses and examination identification cards for employees at each location available for inspection during regular business hours.]

(h) Licenses or manufacturer registrations issued under this chapter expire one year after issuance at midnight on the last day of the month previous to the month in which they are issued.

(i) If a license or registration expires, the person shall immediately cease CNG activities.

[(i) For license renewals, LP-Gas Operations shall notify the licensee in writing at the address on file with LP-Gas Operations of the impending license expiration at least 30 calendar days before the date the license is scheduled to expire. Renewals shall be submitted to LP-Gas Operations along with the license renewal fee specified in subsection (b) of this section on or before the last day of the month in which the license expires in order for the licensee to continue CNG activities. Failure to meet the renewal deadline set forth in this section shall result in expiration of the license. If a person's license expires, that person shall immediately cease performance of any CNG activities.]

[(1) If a person's license has been expired for 90 calendar days or fewer, the person shall submit a renewal fee that is equal to 1 1/2 times the renewal fee required in subsection (b) of this section. Upon receipt of the renewal fee, LP-Gas Operations shall verify that the person's license has not been suspended, revoked, or expired for more than one year. After verification, if the licensee has met all other requirements for licensing, LP-Gas Operations shall renew the license, and the person may resume CNG activities.]

[(2) If a person's license has been expired for more than 90 calendar days but less than one year, the person shall submit a renewal fee that is equal to two times the renewal fee required in subsection (b) of this section. Upon receipt of the renewal fee, LP-Gas Operations shall verify that the person's license has not been suspended, revoked, or expired for more than one year. After verification, if the licensee has met all other requirements for licensing, LP-Gas Operations shall renew the license, and the person may resume CNG activities.]

[(3) If a person's license has been expired for one year or longer, that person may not renew, but shall comply with the requirements for issuance of an original license.]

[(4) A person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application, may obtain a new license without reexamination. The person shall pay to LP-Gas Operations a fee that is equal to two times the renewal fee required by subsection (b) of this section.]

[(A) As a prerequisite to licensing pursuant to this provision, the person shall submit, in addition to an application for licensing, proof of having been in practice and licensed in good standing in another state continuously for the two years immediately preceding the filing of the application;]

[(B) A person licensed under this provision shall be required to comply with all requirements of licensing other than the examination requirement, including but not limited to the insurance requirements as specified in §13.62 of this title (relating to Insurance Requirements).]

(j) Applicants for a new license [or license renewal] shall file with AFS: [LP-Gas Operations]

(1) a properly completed CNG Form 1001 listing all names under which CNG related activities requiring licensing are to be conducted and the applicant's properly qualified [designating a] company representative, and the following forms or documents as applicable: [who shall be an owner or employee of the licensee, and shall be directly responsible for actively supervising CNG operations of the licensee. A licensee may have more than one company representative.]

(A) CNG Form 1001A if the applicant will operate any outlets pursuant to subsection (j) of this section;

(B) CNG Form 1007 and any information requested in §13.69 of this title if the applicant intends to register any CNG cargo tanks or container delivery units;

(C) CNG Form 1019 if the applicant will be transferring the operation of one or more existing retail service stations;

(D) any form required to comply with §13.62 of this title (relating to Insurance Requirements);

(E) a copy of current certificate of account status if required by §13.75 of this title (relating to Franchise Tax Certification and Assumed Name Certificate); and/or

(F) copies of the assumed name certificates if required by §13.75 of this title; and

[(1) An applicant for license shall not engage in CNG activities governed by the Texas Natural Resources Code, Chapter 116, and the Regulations for Compressed Natural Gas, until its company representative has successfully completed the management examination administered by AFRED.]

(2) payment for all applicable fees.

(A) If the applicant submits the payment by mail, the payment shall be in the form of a check, money order or printed copy of an online receipt.

(B) If the applicant pays the applicable fee online, the applicant shall submit a copy of an online receipt via mail, email, or fax.

[(2) The licensee shall notify LP-Gas Operations in writing upon termination of its company representative of record and shall at the same time designate a replacement by submitting a new CNG Form 1001.]

[(3) The licensee shall cease operations if, at the termination of its company representative, there is no other qualified company representative of the licensee who has complied with the Commission's requirements. The licensee shall not resume CNG activities until such time as it has a properly qualified company representative.]

(k) A licensee shall submit CNG Form 1001A listing all outlets operated by the licensee.

(1) Each outlet shall employ an operations supervisor who meets the requirements of §13.72 of this title.

(2) Each outlet shall be listed on the licensee's renewal specified in subsection (l) of this section.

[(k) In addition to complying with other licensing requirements set out in the Texas Natural Resources Code and the Regulations for Compressed Natural Gas, applicants for license or license renewal in the following categories shall comply with the specified additional requirements.]

[(1) An applicant for a Category 1 license or renewal shall file with LP-Gas Operations for each of its outlets legible copies of:]

[(A) its current DOT authorization. A licensee shall not continue to operate after the expiration date of the DOT authorization; and/or]

[(B) its current ASME Code, Section VIII certificate of authorization or "R" certificate. If ASME is unable to issue a renewed certificate of authorization prior to the expiration date, the licensee may request in writing an extension of time not to exceed 60 calendar days past the expiration date. The licensee's request for extension shall be received by LP-Gas Operations prior to the expiration date of the ASME certificate of authorization referred to in this section, and shall include a letter or statement from ASME that the agency is unable to issue the renewal certificate of authorization prior to expiration and that a temporary extension will be granted for its purposes. A licensee shall not continue to operate after the expiration date of an ASME certificate of authorization until the licensee files a current ASME certificate of authorization with LP-Gas Operations, or LP-Gas Operations grants a temporary exception.]

[(2) An applicant for a Category 4 license or renewal shall file a properly completed CNG Form 1505 with LP-Gas Operations, certifying that the applicant will follow the testing procedures indicated. CNG Form 1505 shall be signed by the appropriate CNG company representative designated on CNG Form 1001.]

(l) Beginning February 15, 2021, a prospective container manufacturer may apply to AFS to manufacture CNG containers in the state of Texas. Beginning February 15, 2021, a person shall not engage in the manufacture of CNG containers in this state unless that person has obtained a container manufacturer's registration as specified in this subsection.

(1) Applicants for container manufacturer registration shall file with AFS CNG Form 1001M, and the following forms or documents as applicable:

(A) any form required by §13.62 of this title;

(B) a copy of current certificate of account status if required by §13.75 of this title;

(C) copies of the assumed name certificates if required by §13.75 of this title;

(D) a copy of current DOT authorization. A registered manufacturer shall not continue to operate after the expiration date of the DOT authorization; and/or

(E) a copy of current ASME Code, Section VIII certificate of authorization or "R" certificate. If ASME is unable to issue a renewed certificate of authorization prior to the expiration date, the manufacturer may request in writing an extension of time not to exceed 60 calendar days past the expiration date. The request for extension shall be received by AFS prior to the expiration date of the ASME certificate of authorization referred to in this section, and shall include a letter or statement from ASME that the agency is unable to issue the renewal certificate of authorization prior to expiration and that a temporary extension will be granted for its purposes. A registered manufacturer shall not continue to operate after the expiration date of an ASME certificate of authorization until the manufacturer files a current ASME certificate of authorization with AFS or AFS grants a temporary exception.

(2) By filing CNG Form 1001M, the applicant certifies that it has read the requirements of this chapter and shall comply with all applicable rules, regulations and adopted standards.

(3) The required fee shall accompany CNG Form 1001M. An original registration fee is $1,000; the renewal fee is $600.

(A) If submitted by mail, payment shall be by check, money order, or printed copy of an online receipt.

(B) If submitted by email or fax, payment shall be a copy of an online receipt.

(4) If a manufacturer registration expires or lapses, the person shall immediately cease the manufacture, assembly, repair, testing and sale of CNG containers in Texas.

[(l) A military service member, military veteran, or military spouse shall be exempt from the original license fee specified in subsection (b) of this section pursuant to the requirements in §13.76 of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from renewal or transport registration fees specified in subsection (i) of this section and §13.69 of this title (relating to Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority).]

(m) AFS will review an application for license or registration to verify all requirements have been met.

(1) If errors are found or information is missing in the application or other documents, AFS will notify the applicant of the deficiencies in writing.

(2) The applicant must respond with the required information and/or documentation within 30 days of the written notice. Failure to respond by the deadline will result in withdrawal of the application.

(3) If all requirements have been met, AFS will issue the license or manufacturer registration and send the license or registration to the licensee or manufacturer, as applicable.

(n) For license and manufacturer registration renewals:

(1) AFS shall notify the licensee or registered manufacturer in writing at the address on file with AFS of the impending license or manufacturer registration expiration at least 30 calendar days before the date the license or registration is scheduled to expire.

(2) The renewal notice shall include copies of applicable CNG Forms 1001, 1001A, and 1007, or CNG Form 1001M showing the information currently on file.

(3) The licensee or registered manufacturer shall review and return all renewal documentation to AFS with any necessary changes clearly marked on the forms. The licensee or registered manufacturer shall submit any applicable fees with the renewal documentation.

(4) Failure to meet the renewal deadline set forth in this section shall result in expiration of the license or manufacturer registration.

(5) If a person's license or manufacturer registration expires, that person shall immediately cease performance of any CNG activities authorized by the license or registration.

(6) If a person's license or manufacturer registration has been expired for 90 calendar days or fewer, the person shall submit a renewal fee that is equal to 1 1/2 times the renewal fee in subsections (a) and (k) of this section, respectively.

(7) If a person's license or manufacturer registration has been expired for more than 90 calendar days but less than one year, the person shall submit a renewal fee that is equal to two times the renewal fee.

(8) If a person's license or manufacturer registration has been expired for one year or longer, that person shall not renew, but shall comply with the requirements for issuance of an original license or manufacturer registration under subsections (i) or (k) of this section.

(9) After verification that the license or registered manufacturer has met all requirements for licensing or manufacturer registration, AFS shall renew the license or registration and send the applicable authorization to the licensee or manufacturer.

(o) Applicants for license or license renewal in the following categories shall comply with these additional requirements.

(1) An applicant for a Category 4 license or renewal shall file with AFS a completed CNG Form 1505, certifying that the applicant will follow the testing procedures indicated. CNG Form 1505 shall be signed by the appropriate CNG company representative designated on CNG Form 1001.

(2) An applicant for Category 1 or 4 license or renewal who tests tanks, subframes CNG cargo tanks, or performs other activities requiring DOT registration shall file with AFS a copy of any applicable current DOT registrations. Such registration shall comply with Title 49, Code of Federal Regulations, Part 107 (Hazardous Materials Program Procedures), Subpart F (Registration of Cargo Tank and Cargo Tank Motor Vehicle Manufacturers and Repairers and Cargo Tank Motor Vehicle Assemblers).

§13.62.Insurance Requirements.

(a) A licensee or registered manufacturer shall not perform any activity authorized by its license or registration under §13.61 of this title (relating to License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals) unless insurance coverage required by this section is in effect. CNG licensees, registered manufacturers, or applicants for license or manufacturer registration shall comply with the minimum amounts of insurance specified in Table 1 of this section, with the self-insurance requirements in §13.63 of this title (relating to Self-Insurance Requirements), or the irrevocable letter of credit requirements in §13.64 of this title (relating to Irrevocable Letter of Credit), if applicable. Registered manufacturers are not eligible for self-insurance. Before AFS grants or renews a manufacturer registration, an applicant for manufacturer registration shall submit the documents required by paragraph (1) of this subsection. Before AFS grants or renews a license, an applicant for license shall submit:

Figure: 16 TAC §13.62(a) (.pdf)

[Figure: 16 TAC §13.62(a)]

[(b)] [Before LP-Gas Operations grants or renews a license, the applicant shall submit either:]

(1) an [An] insurance Acord form[;] or any other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier containing all required information. The forms must be issued by an insurance company authorized or accepted by the Texas Department of Insurance; [or]

(2) properly completed documents demonstrating the applicant's compliance with the self‑insurance requirements in §13.63 of this title; or [(relating to Qualification as Self‑Insured)]

(3) properly completed documents demonstrating the applicant's compliance with the irrevocable letter of credit requirements in §13.64 of this title.

[(c) A licensee shall not perform any licensed activity under §13.61 of this title (relating to Licenses, Related Fees, and Licensing Requirements) unless insurance coverage required by this section is in effect.]

[(d) Except as provided in the column relating to Statements in Lieu of Required Insurance Filing in Table 1, subsection (a) of this section, and paragraphs (1) ‑ (5) of this subsection, the types and amounts of insurance specified in subsection (a) of this section are required while engaging in any of the activities set forth in this section or any activity incidental thereto.]

(b) [(1)] A [Category 3] licensee, [or] applicant for license, or an ultimate consumer that does not operate or contemplate operating [the operation of] a motor vehicle equipped with a CNG cargo container or [transport and] does not transport or contemplate transporting [the delivery of] CNG [cylinders] by vehicle in any manner may file [a] CNG Form 1997B in lieu of filing motor vehicle bodily injury and property damage [liability] insurance form, if this certificate is not otherwise required. The licensee or applicant for a license shall [must] file the required insurance form with AFS [LP-Gas Operations] before operating a motor vehicle equipped with a CNG cargo container or transporting CNG by vehicle in any manner.

(c) [(2)] A licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any activities that [operations which] would be covered by general liability insurance may file [a] CNG Form 1998B in lieu of filing a general liability insurance form. The licensee, registered manufacturer, or applicant for a license or manufacturer registration shall [must] file the required insurance form with AFS [LP-Gas Operations] before engaging in any activities [operations ] that require general liability insurance.

(d) [(3)] A licensee or applicant for license that does not employ or contemplate employing anyone [the hiring of an employee or employees] to be engaged in CNG related activities in Texas may file [a] CNG Form 1996B in lieu of filing a workers' compensation insurance form, including employer's liability insurance or alternative accident and health insurance coverage. The licensee or applicant for a license shall [must] file the required insurance form with AFS [LP-Gas Operations] before hiring any person as an employee engaged in CNG related work.

(e) [(4)] A licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any CNG activities [operations] that would be covered by completed operations or products liability insurance, or both, may file CNG Form 1998B in lieu of a completed operations and/or products liability insurance form. The licensee, registered manufacturer, or applicant for a license or manufacturer registration shall file the required insurance form with AFS [LP-Gas Operations] before engaging in any activities [operations] that require completed operations and/or products liability insurance.

(f) [(5)] A licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in this state as an alternative to workers' compensation coverage. The alternative coverage shall be in the amounts specified in Table 1 of this section.

[(e) As evidence that required insurance has been secured and is in force, insurance forms which are approved by the Texas Department of Insurance shall be filed with LP-Gas Operations before licensing, license renewal, and during the entire period that the license is in effect. Any document filed with LP-Gas Operations in a timely manner which is not completed in accordance with the instructions indicated on the insurance forms supplied by LP-Gas Operations, but which complies with the substantive requirements of this section and with the rules adopted under this section, may be considered by LP-Gas Operations to be evidence that required insurance has been secured and is in force for a temporary period not to exceed 45 days. During this temporary period, a licensee shall file with LP-Gas Operations an amended certificate of insurance which complies with all procedural and substantive requirements of this section and this chapter.]

[(f) All certificates filed under this section shall be continuous in duration and shall remain on file with LP-Gas Operations during the entire period that the license is in effect.]

(g) Each licensee or registered manufacturer shall file CNG Form 1999 or other written notice with AFS [LP-Gas Operations] at least 30 calendar days before the cancellation of any insurance coverage. The 30‑day period commences on the date the notice is actually received by AFS [LP-Gas Operations].

[(h) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements relating to general liability and/or motor vehicle liability insurance or workers' compensation coverage by filing CNG Form 1995 with LP-Gas Operations as evidence of self‑insurance, if permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.]

(h) [(i)] Each licensee or registered manufacturer shall promptly notify AFS [LP-Gas Operations] of any change in insurance coverage or insurance carrier by filing a [properly completed] revised Acordïƒ" form; other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier containing all required information; or documents demonstrating the applicant's compliance with the self‑insurance requirements set forth in §13.63 of this title [(relating to Qualification as Self‑Insured)]. Failure to promptly notify AFS [LP-Gas Operations] of a change in the status of insurance coverage or insurance carrier may result in an enforcement action and an administrative penalty.

(i) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements of this section for workers' compensation, general liability and/or motor vehicle liability insurance. The requirements may be met by submitting evidence of self-insurance that complies with the requirements of §13.63 or §13.64 of this title. CNG Form 1995 may be filed as evidence of self-insurance, if self-insurance is permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.

§13.63.Self-Insurance Requirements [Qualification as Self‑Insured].

(a) General qualifications. AFS [LP-Gas Operations] may approve the application of a CNG licensee to qualify as a self‑insurer if such licensee furnishes a true and accurate statement of its financial condition and other evidence which establishes to the satisfaction of AFS [LP-Gas Operations] the ability of such licensee to satisfy its obligations for the minimum insurance requirements specified in §13.62 of this title (relating to Insurance Requirements). Registered manufacturers are not eligible for self-insurance. This section shall not apply to AFS' [LP-Gas Operations'] licensing requirements for worker's compensation insurance, including employer's liability coverage.

(b) Applicant guidelines. In addition to filing [a] CNG Form 1027, Application for Qualification as Self‑Insurer, an applicant applying for self‑insurer status covering general liability, including premises and operations coverage, shall submit materials that will allow AFS [LP-Gas Operations] to determine whether:

(1) the net worth of the applicant is adequate in relationship to the size of operations and the extent of its request for self‑insurance authority. The applicant should demonstrate that it will maintain a net worth sufficient to ensure that it will be able to meet its statutory obligations to the public to pay all claims relating to general liability, including premises and operations coverage in the event of a claim;

(2) the applicant has a sound self‑insurance program. The applicant shall demonstrate that it has established, and will maintain an insurance program that will protect the public against all claims involving CNG activities to the same extent as the minimum limits applicable pursuant to Table 1 in §13.62(a) [§13.61(a)(6) and (7)] of this title (relating to Insurance Requirements [Licensing]). Such a program may include, but not be limited to, one or more of the following:

(A) reserves;

(B) sinking funds;

(C) third party financial guarantees;

(D) parent company or affiliate sureties;

(E) excess insurance coverage; or

(F) other similar arrangements; and

(3) the applicant presents evidence that it meets the requirements for motor carrier self‑insurance promulgated by the Texas Department of Transportation.

(c) Other securities or agreements. AFS [LP-Gas Operations] may consider applications for approval of other securities or agreements, or may require any other document(s) which may be necessary to ensure such application satisfies that the security or agreement offered will afford adequate security for protection of the public.

(d) Periodic reports. The applicant shall file with semiannual [Semiannual] reports and annual statements reflecting the applicant's financial condition and status of its self‑insurance program [shall be filed] with AFS [LP-Gas Operations] during the period of its self‑insurer status by March 10 and September 10 of each year.

(e) Duration of self‑insurer status. AFS [LP-Gas Operations] may approve the applicant as a self‑insurer for any specific time period, or for an indefinite period until revoked by AFS [LP-Gas Operations].

(f) Revocation of a self‑insurer status. AFS [LP-Gas Operations] may at any time, upon 10 days notice to the applicant, require the applicant to appear and demonstrate that it continues to have adequate financial resources to pay all general liability, including premises and operations coverage claims, and that it remains in compliance with the other requirements of this section. If the applicant fails to so demonstrate, its self‑insurer status shall be revoked and it may be ineligible for self‑insurance in the future.

(g) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for general liability and/or motor vehicle liability insurance or workers' compensation coverage of §13.62 of this title if permitted by the Texas Workers' Compensation Act, Texas Labor Code, Title 5, Subtitle A; and the Texas Natural Resources Code, §116.036, by submitting [a] CNG Form 1995 to AFS [LP-Gas Operations].

§13.64.[Qualification by] Irrevocable Letter of Credit.

When an applicant submits [a] CNG Form 1028, Application to use Irrevocable Letter of Credit, as an alternative to insurance, letters of credit shall be subject to the following conditions:

(1) the letter may only be issued by a federally chartered and federally insured bank authorized to do business in the Unites States;

(2) the letter of credit must be irrevocable during their terms;

(3) the letter must be payable to the Commission in part or in full upon demand and receipt from the Commission of a notice of forfeiture;

(4) this section shall not apply to AFS' [LP-Gas Operations] licensing requirements for worker's compensation insurance, including employer's liability coverage.

§13.67.Changes in Ownership, [and/or] Form of Dealership, or Name of Dealership.

(a) Changes in ownership which require a new license or manufacturer registration.

(1) Transfer of dealership outlet or location by sale, lease, or gift.

[(1)] [Licensing.] The purchaser, lessee, or donee of any dealership or outlet shall have a current and valid license or manufacturer registration authorizing the CNG activities to be performed at the dealership or outlet or [location] shall apply for and be issued a [notice of tentative] CNG license or manufacturer registration [approval,] prior to engaging in any CNG activities which require a license or manufacturer registration. The purchaser, lessee, or donee shall notify AFS by filing a properly completed CNG Form 1001 or CNG Form 1001M prior to engaging in any CNG activities at that dealership or outlet which require a CNG license or manufacturer registration [the transfer of such an entity. Such tentative CNG license approval, when issued, shall be valid for a period not to exceed 90 days from the date of issue. During this 90‑day period, the licensee and the recipient of the tentative CNG license approval shall be allowed to conduct business under this subchapter. Any applicable licensing fees shall be prorated to cover this period of tentative approval and shall be payable at the time of application for tentative approval. Any portion of the licensing fees unused during this 90‑day period shall be applied on a prorated basis to the licensing fee required of the new purchaser, lessee, or donee of such dealership or outlet].

[(2) Notice. After the transfer of any dealership outlet or location, the new operator/owner or the authorized representative thereof, shall notify LP-Gas Operations of the completed transfer of such dealership by certified mail immediately upon the completion of said transfer, and file with LP-Gas Operations all forms of application for licensing or registration required by this subchapter.]

(2) [(b)] Other changes in ownership.

[(1)] [Licensing.] A change in members of a partnership occurs upon the death, withdrawal, expulsion, or addition of a partner. Upon the death of a sole proprietor or partner, the dissolution of a corporation or partnership, any changes in the members of a partnership, or other changes in ownership not specifically provided for [elsewhere] in this section, an authorized representative of the previously existing dealership or of the successor in interest shall notify AFS in writing and shall immediately cease all CNG activities of the previously existing dealership which require a CNG license or manufacturer registration and shall not resume until AFS issues a CNG license or manufacturer registration to the successor in interest [, the CNG operation shall continue for no longer than 30 days, unless a CNG license is issued to the successor in interest and the notice requirements of paragraph (2) of this subsection have been satisfied. This 30‑day period shall be allowed only when the licensee meets all other pertinent requirements of this subchapter, specifically those regarding the licensee's representative].

[(2) Notice. The successor in interest shall notify LP-Gas Operations by certified mail of the death of a sole proprietorship or partner, the dissolution of a corporation or partnership, any change in partnership members, or other changes in ownership not specifically provided for in this section.]

[(3) Change in partnership members. A change in partnership members occurs upon the death, withdrawal, expulsion, or addition of a partner.]

[(4) Transfer of stock. Notwithstanding, the provisions of paragraphs (1) ‑ (3) of this subsection, a change in ownership does not occur, for the purpose of this section, when shares of stock in a corporation are transferred, exchanged, sold, or alienated, unless such action creates a new controlling interest in such corporation.]

(b) [(c)] Changes in dealership business entity [form].

[(1)] [Licensing.] When a dealership converts from one business entity into [to] a different kind of business entity, the resulting [newly formed] entity shall have a valid license or manufacturer registration authorizing the CNG activities to be performed or shall apply for and be issued a [notice of tentative CNG] license or manufacturer registration before [approval, prior to] engaging in any CNG activities which require a CNG license or manufacturer registration and shall immediately notify AFS in writing of the change in business entity [the conversion. Such tentative CNG license approval, when issued, shall be valid for a period not to exceed 90 days from the date of issue. During this 90‑day period, the licensee (regardless of form) shall be allowed to conduct business under this subchapter. Any applicable licensing fees shall be paid or maintained to cover this period of tentative approval and shall be paid or payable at the time of application for tentative approval. Any fees paid by this original entity shall be credited on a prorated basis to the account of the new entity].

[(2) Notice. An authorized representative of the original entity or of the new entity shall notify LP-Gas Operations by certified mail of an accomplished change in business form immediately upon the completion of such conversion, and shall cause to be filed with LP-Gas Operations all forms of applications for licensing or registration required by this subchapter.]

(c) Dealership name change. A licensee or registered manufacturer which changes its name shall not be required to obtain a new license or manufacturer registration but shall immediately notify AFS as follows prior to engaging in any CNG activities under the new name. The licensee or registered manufacturer shall file:

(1) an amended CNG Form 1001 or CNG Form 1001M;

(2) an amended CNG Form 1001A, if outlet names will change;

(3) a copy of the licensee's or registered manufacturer's business documents reflecting the name change, such as amendments to the articles of incorporation or assumed name filings;

(4) certificates of insurance or affidavits in lieu of insurance if permitted by §13.63 of this title (relating to Self-Insurance Requirements) or both; and

(5) any other forms required by AFS.

(d) Company representative and operations supervisor. In all changes of ownership, form of dealership, or name of dealership, the resulting entity shall have a properly certified company representative for the license and an operations supervisor, if required, at each outlet and as specified in §13.72 of this title (relating to Designation and Responsibilities of Company Representative and Operations Supervisor).

(e) For good cause shown, the AFS director may grant a temporary exception of 30 days or less to the examination requirements for company representatives and operations supervisors. Good cause includes but is not limited to the death of a sole proprietor or partner. An applicant for a temporary exception shall comply with applicable safety requirements and submit to AFS information showing the exception will not be hazardous to the public.

§13.69.Registration and Transfer of CNG Cargo Tanks or Delivery Units [Transports and CNG Form 1004 Decal or Letter of Authority].

(a) All CNG cargo tanks shall comply with US DOT Code of Federal Regulations (CFR) or Transport Canada (TC) Transportation of Dangerous Goods (TDG).

(b) [(a)] A person who operates a transport [equipped with CNG cargo tanks or any cylinder delivery] unit, regardless of who owns the [transport or] unit, shall register such [transport or] unit with AFS [LP-Gas Operations] in the name or names under which the operator conducts business in Texas prior to the [transport or] unit being used in CNG service.

(1) To register a unit previously unregistered in Texas, the operator of the unit shall:

(A) pay to AFS [LP-Gas Operations] the $270 registration fee for each [bobtail truck, semitrailer, cylinder delivery] unit; [, or other motor vehicle equipped with CNG cargo tanks; and]

(B) file a properly completed CNG Form 1007; [.]

(C) file a copy of the manufacturer's data report;

(D) file a copy of the US DOT special permit under which the container is built; and

(E) file a copy of the most recent test required by the US DOT special permit under which the container was built.

(2) To register a [specification] unit which was previously registered in Texas but for which the registration has expired, the operator of the unit shall:

(A) pay to AFS [LP-Gas Operations] the $270 registration fee;

(B) file a properly completed CNG Form 1007; and

(C) file a copy of the latest test results if an expired unit has not been used in the transportation of CNG for over one year, or if a current test has not been filed with AFS.

(3) To transfer a currently registered unit, the new operator [owner] of the unit [transport] shall:

(A) pay the $100 transfer fee for each unit; and

(B) file a properly completed CNG Form 1007.

(4) To re‑register a currently registered unit, the licensee operating the unit shall pay a $270 annual registration fee.

[(b) LP-Gas Operations may also request that an operator registering or transferring any unit to file a copy of the Manufacturer's Data Report.]

(c) When all registration or transfer requirements have been met, AFS [LP-Gas Operations] shall issue CNG Form 1004 [or letter of authority] which shall be properly affixed in accordance with the placement instructions on the form [as instructed on the decal or letter or maintained on the bobtail or transport trailer]. CNG Form 1004 [or letter of authority] shall authorize the licensee or ultimate consumer to whom it has been issued and no other person to operate such unit in the transportation of CNG and to fill the transport containers.

(1) A person shall not operate a CNG transport [unit] or cylinder delivery unit [or introduce CNG into a transport container] in Texas unless the CNG Form 1004 [or letter of authority] has been properly affixed [as instructed on the decal or the letter or maintained on the bobtail or transport trailer] or unless its operation has been specifically approved by AFS [LP-Gas Operations].

(2) A person shall not introduce CNG into a transport container unless that unit bears a CNG Form 1004 or unless specifically approved by AFS.

(3) [(2)] CNG Form 1004 [or letter of authority] shall not be transferable by the person to whom it has been issued, but shall be registered by any subsequent licensee or ultimate consumer prior to the unit being placed into CNG service.

(4) [(3)] This subsection shall not apply to:

(A) a container manufacturer/fabricator who introduces [from introducing] a reasonable amount of CNG into a newly constructed container in order to properly test the vessel, piping system, and appurtenances prior to the initial sale of the container. The CNG shall be removed from the transport container prior to the transport leaving the manufacturer's or fabricator's premises; or

(B) a person who introduces a maximum of 500 cubic feet of CNG into a newly constructed transport container when such container will provide the motor fuel to the chassis engine for the purpose of allowing the unit to reach its destination.

(5) [(4)] AFS [LP-Gas Operations] shall not issue a CNG Form 1004 [or letter of authority] if AFS [LP-Gas Operations] or a Category 1 or 4 licensee determines that the transport is unsafe for CNG service.

(6) [(5)] If a CNG Form 1004 decal [or letter of authority] on a unit currently registered with AFS [LP-Gas Operations] is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement by filing CNG Form 1018B and a $50 replacement fee with AFS [LP-Gas Operations].

§13.70.Examination and Exempt Registration Requirements and Renewals.

(a) Requirements and application for a new certificate [Examination general provisions].

(1) In addition to NFPA 52 §§1.4.3 and 4.2, and NFPA 55 §4.7, no person shall perform work, directly supervise CNG activities, [No individual may work] or be employed in any capacity requiring [which requires] contact with CNG unless [or CNG systems until] that individual is employed by a licensee and:

(A) is a certificate holder who is in compliance with renewal requirements in subsection (h) of this section;

(B) is a trainee who complies with subsection (f) of this section; or

(C) holds a current examination exemption pursuant to subsection (g) of this section [has submitted to and successfully completed an examination which measures the competency of that individual to perform the CNG related activities anticipated, and tests working knowledge of the Texas Natural Resources Code and the regulations for compressed natural gas related to the type of CNG work anticipated. Table 1 of this section sets forth specific requirements for examination for each category of license. This section applies to all licensees and their employees who perform CNG related activities, and also applies to any ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined as a CNG transport by this chapter and any employee of such ultimate consumer if that employee drives or in any way operates such a CNG transport. Driving a motor vehicle powered by CNG or fueling of motor vehicles for an ultimate consumer by the ultimate consumer or its employees do not in themselves constitute CNG related activities. Only paragraph (2) of this subsection applies to an employee of an ultimate consumer or a state agency or institution, county, municipality, school district, or other governmental subdivision].

[Figure: 16 TAC §13.70(a)(1)]

(2) Any person transporting CNG on a public roadway must be properly certified, even if the unit is operated by an ultimate consumer.

(b) Rules examination.

(1) An individual who passes the applicable rules examination with a score of at least 75% will become a certificate holder. AFS will mail a certificate to the licensee listed on the CNG Form 1016. If a licensee is not listed on the form, the certificate will be mailed to individual's personal address.

(A) Successful completion of any required examination shall be credited to and accrue to the individual.

(B) An individual who has been issued a certificate shall make it readily available and shall present the certificate to any Commission employee or agent who requests proof of certification.

(2) An applicant for examination shall bring to the exam site:

(A) a completed CNG Form 1016; and

(B) payment of the applicable fee specified in this subsection;

(3) An individual who files CNG Form 1016 and pays the applicable nonrefundable examination fee may take the rules examination.

(A) Dates and locations of available Commission CNG examinations may be obtained in the Austin offices of AFS and on the Commission's web site, and shall be updated at least monthly. Examinations may be conducted at the Commission's AFS Training Center in Austin between the hours of 8:00 a.m. and 12:00 noon, Monday through Friday, except for state holidays, and at other designated times and locations around the state. Individuals or companies may request in writing that examinations be given in their area. AFS shall schedule its examinations and locations at its discretion.

(B) Exam fees.

(i) [(A)] The [Individuals wishing to take a management‑level rules examination (for company representatives or operations supervisors) shall pay a] nonrefundable management-level rules examination fee is $70 [of $70 before taking any such examination].

(ii) [(B)] The [Individuals wishing to take an employee‑level rules examination (for employees other than company representatives or operations supervisors) shall pay a] nonrefundable employee-level rules examination fee is $40 [of $40 before taking any such examination].

(iii) [(C)] The nonrefundable examination fees shall be paid each time an individual takes an [are nonrefundable and, if an applicant fails an examination, the applicant shall pay the full examination fee for each subsequent] examination.

(iv) [(D)] A military service member, military veteran, or military spouse shall be exempt from the examination fee pursuant to the requirements in §13.76 of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from renewal fees specified in subsection (h) [(d)] of this section.

(C) Time limits.

(i) An applicant shall complete the examination within two hours.

(ii) The examination proctor shall be the official timekeeper.

(iii) An examinee shall submit the examination and the answer sheet to the examination proctor before or at the end of the established time limit for an examination.

(iv) The examination proctor shall mark any answer sheet that was not completed within the time limit.

(D) [(2)] Each individual who performs CNG activities as an employee of an ultimate consumer or a state agency, county, municipality, school district, or other governmental subdivision shall be properly supervised by his or her employer. Any such individual who is not certified by AFS [AFRED] to perform such CNG activities shall be properly trained by a competent person in the safe performance of such CNG activities.

[(3) Each person wishing to submit to examination shall file a CNG Form 1016 with AFRED.]

[(4) An individual who has filed CNG Form 1016 and the applicable nonrefundable examination fee may take the rules examination at the Commission's AFRED Training Center, 6506 Bolm Road, Austin, Texas, between the hours of 8:00 a.m. and 12:00 noon, Monday through Friday, except for state holidays, and at other designated times and locations around the state. Tuesdays and Thursdays are the preferred days for examinations at the AFRED Training Center. Dates and locations of available Commission CNG examinations may be obtained in the Austin offices of AFRED and on the Commission's web site, and shall be updated at least monthly. Examinations shall be conducted in Austin and in other locations around the state. Individuals or companies may request in writing that examinations be given in their area. AFRED shall schedule its examinations and locations at its discretion.]

(c) The following examinations are offered by the Commission.

(1) Employee‑level examinations:

(A) The Service and Installation Technician examination qualifies an individual to perform all CNG activities related to stationary CNG systems, including CNG containers, piping, and equipment. The Service and Installation examination doe transport.

(B) The Delivery Truck Driver examination qualifies an individual to operate a cargo tank or cylinder deliver unit, load and unload CNG and connect and disconnect transfer hoses, operate a cylinder delivery unit, perform all activities related to stationary CNG systems, including CNG containers, piping and equipment, and inspect, fill, disconnect, and connect CNG cylinders.

(C) The Cylinder Filler examination qualifies an individual to inspect, fill, disconnect, and connect CNG cylinders.

(2) Management‑level examinations:

(A) Category 1 examination qualifies an individual to assemble, repair, test, sell, install, and subframe ASME and DOT containers.

(B) Category 1A examination qualifies an individual to assemble, repair, test, sell, install, and subframe ASME containers.

(C) Category 1B examination qualifies an individual to assemble, repair, test, sell, install, and subframe DOT containers.

(D) Category 2 examination qualifies an individual to sell, install, service, and repair CNG systems, including cylinders.

(E) Category 3 examination qualifies an individual to sell, store, transport for delivery and dispense CNG for use other than by an ultimate consumer, and to sell, install, service, and repair CNG systems as described in Category 2 and 5 examinations.

(F) Category 4 examination qualifies an individual to test CNG cylinders.

(G) Category 5 examination qualifies an individual to operate a CNG service station, including filling CNG cylinders, or operate a cylinder exchange dealership, including filling CNG cylinders, selling CNG in cylinders, selling CNG cylinders, and replacing cylinder valves.

(d) [(5)] Within 15 calendar days of the date an individual takes an examination, AFS [AFRED ] shall notify the individual of the results of the examination.

(1) [(A)] If the examination is graded or reviewed by a testing service, AFS [AFRED] shall notify the individual of the examination results within 14 days of the date AFS [AFRED] receives the results from the testing service.

(2) If the notice of the examination results will be delayed for longer than 90 days after the examination date, AFS [AFRED] shall notify the individual of the reason for the delay before the 90th day. AFS [AFRED] may require a testing service to notify an individual of the individual's examination results.

[(B) Successful completion of any required examination shall be credited to and accrue to the individual.]

(e) [(C)] Failure of any [Any individual who fails an] examination shall [be] immediately disqualify the individual [disqualified] from performing any CNG related activities covered by the examination which is failed, except for activities covered by a separate examination which the individual has passed.

(1) Any individual who fails an examination administered by the Commission [AFRED] at the Austin location [only] may retake the same examination [only] one additional time during a business day.

(2) Any subsequent examinations shall be taken on another business day, unless approved by the AFS [AFRED] director.

(3) An [If requested by an] individual who fails an examination may request [failed the examination, AFRED shall furnish the individual with] an analysis of the individual's performance on the examination.

[(6) Time limits.]

[(A) Effective June 1, 2008, an applicant shall complete the examination within two hours.]

[(B) The examination proctor shall be the official timekeeper.]

[(C) An examinee shall submit the examination and the answer sheet to the examination proctor before or at the end of the established time limit for an examination.]

[(D) The examination proctor shall mark any answer sheet that was not completed within the time limit.]

(f) Trainees.

(1) A licensee or ultimate consumer may employ an individual as a trainee for a period not to exceed 45 calendar days without that individual having successfully completed the rules examination, as specified in subsection (b) of this section or registered as specified in subsection (g) of this section, subject to the following conditions:

(A) In addition to NFPA 52 §4.2, the trainee shall be directly and individually supervised at all times by an individual who has successfully completed the Commission's rules examination for the areas of work being performed by the trainee.

(B) A trainee who has been in training for a total period of 45 calendar days, in any combination and with any number of employers, shall cease to perform any CNG activities for which the trainee is not certified until the trainee successfully completes the rules examination.

(2) A trainee who fails the rules examination shall immediately cease to perform any CNG related activities covered by the examination failed.

(g) [(b)] General installers and repairmen exemption.

(1) Any individual who is currently licensed as a master or journeyman plumber by the Texas State Board of Plumbing Examiners or who is currently licensed with a Class A or B Air Conditioning and Refrigeration Contractors License [air conditioning and refrigeration contractors license] issued by the Texas Department of Licensing and Regulation may register with AFS [apply for] and be granted an exemption to the [Category 2 and 3] service and installation technician employee-level [employee] examination requirements provided the applicant [by submitting to AFRED the following information]:

(A) holds an active license in compliance with Texas Occupations Code, §1302.260, relating to Issuance and Term of License, and §1301.351, relating to License, Endorsement, or Registration Required;

(B) [(A)] submits a completed CNG Form 1016B;

(C) [(B)] submits the required [a] $30 original filing fee, except as described in paragraph (8) [(7)] of this subsection; [and]

[(C) any information AFRED may reasonably require.]

(D) submits a legible copy of a current Air Conditioning and Refrigeration Contractors License or Master/Journeyman Plumbers certificate; and

(E) submits a legible copy of a current picture state-issued identification card or driver's license.

(2) This exemption does not become effective until the examination exemption card is issued by AFS [AFRED].

(3) The examination exemption accrues to the individual and is nontransferable. An exemption does not allow other individuals to perform CNG related activities under the supervision of the registered individual. Each individual performing CNG related activities must be registered or certified by examination in accordance with subsection (a) of this section.

(4) Any individual granted such exemption shall maintain registered [certified] status at all times. Upon failure to maintain registered [certified] status, the individual shall immediately cease all affected CNG activities [all affected CNG operations shall cease immediately] until proper status has been regained.

(5) In order to maintain an exemption, each individual issued an examination exemption card must maintain a valid master or journeyman plumbers license or Class A or B Air Conditioning and Refrigeration Contractors license. Each individual shall also pay a $20 annual renewal fee to AFS [AFRED] on or before May 31 of each year. Failure to pay the annual renewal fee by May 31 shall result in a lapsed exemption. If an individual's exemption lapses, that individual shall cease [performing] all CNG [related] activities [granted by this exemption] until [that individual renews] the exemption has been renewed. To renew a lapsed exemption, the individual shall pay the $20 annual renewal fee plus a $20 late‑filing fee. Failure to do so shall result in the expiration of the examination exemption. If the individual's examination exemption has been expired for more than two years [one year or longer], the individual shall complete all requirements necessary to apply for a new exemption.

(6) Individuals issued an exemption must maintain a valid master or journeyman plumbers license or ACR Contractors license to renew their Commission registration.

(7) [(6)] Any individual who is issued an [this] exemption under this subsection agrees to comply with the current edition of the rules in this chapter [regulations for compressed natural gas]. In the event the exempt individual surrenders, fails to renew, or has the license revoked either by the Texas State Board of Plumbing Examiners or Texas Department of Licensing and Regulation, that individual shall immediately cease performing any CNG activity granted by this section. [The examination exemption card shall be returned immediately to AFRED and all rights and privileges surrendered.]

(8) [(7)] A military service member, military veteran, or military spouse shall be exempt from the original registration fee pursuant to the requirements in §13.76 of this title. An individual who receives a military fee exemption is not exempt from renewal fees specified in subsection (h) [(d)] of this section.

[(c) Trainees.]

[(1) A licensee or ultimate consumer may employ an individual as a trainee for a period not to exceed 45 calendar days without that individual having successfully completed the rules examination subject to the following conditions.]

[(A) The trainee shall be directly and individually supervised at all times by an individual who has successfully completed the rules examination for the areas of work being performed by the trainee.]

[(B) The licensee or ultimate consumer shall ensure that CNG Form 1016 is on file with AFRED for each trainee at the time that trainee begins supervised CNG activities. The trainee shall then have 45 calendar days to pass the applicable rules examination.]

[(2) A trainee who fails the rules examination shall immediately cease to perform any CNG related activities covered by the examination failed.]

[(3) A trainee who has been in training for a total of 45 calendar days, in any combination and with any number of employers, shall cease to perform any CNG activities for which he or she is not certified.]

(h) [(d)] Requirements for certificate holder renewal [Renewal of certified status].

(1) In order to maintain active status, certificate holders shall renew their certificate or exemption annually as specified in this subsection.

(2) [(1)] AFS [AFRED ] shall notify licensees of any of their employees' pending renewal deadlines and [renewals, or] shall notify the individual if not employed by a licensee, in writing, at the address on file with AFS [AFRED] no later than March 15 of a year for the May 31 renewal date of that year.

(3) [(2)] Certificate holders [In order to maintain active status, a certificate holder] shall pay the nonrefundable $25 annual certificate renewal fee to AFS [AFRED] on or before May 31 of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee.

(A) [(3)] Failure to pay the nonrefundable annual renewal fee by the deadline shall result in a lapsed certificate [lapse of certification unless the late filing fee in paragraph (4) of this subsection is paid].

(i) To renew a lapsed certificate, the individual shall pay the nonrefundable $25 annual renewal fee plus a nonrefundable $20 late-filing fee. Failure to do so shall result in the expiration of the certificate.

(ii) If an individual's certificate lapses or expires, that individual shall immediately cease performance of any CNG activities authorized by the certificate.

(iii) If an individual's certificate [certification] has been expired for more than two years from May 31 of the year in which the certificate lapsed [one year or longer], that individual shall comply with the requirements of subsection (a) of this section. [If an individual's certification lapses or expires, that individual shall immediately cease performance of any CNG activities that require certification. Certified status shall be regained only by successfully completing the examination requirement for certification and meeting the requirements of paragraph (4) of this subsection.]

(B) [(4)] [Any lapsed renewals submitted after May 31st of each year shall include a $20 late filing fee in addition to the renewal fee, proof of successful completion of the examination required for certification, and be received in AFRED's Austin office no later than close of business on August 31 or, if August 31 falls on a weekend or state holiday, close of business on the last business day before August 31 of each year.] Upon receipt of the annual renewal fee and late filing fee [penalty], AFS [AFRED] shall verify that all applicable requirements have been met [the individual's certification has not been suspended, revoked, or expired for one year or longer]. After verification, AFS [AFRED] shall renew the certificate [certification] and send a copy of the certificate, and the individual may continue or resume CNG activities authorized by that certificate.

[(e) Expired certification(s). Any renewal submitted after the August 31 deadline shall be considered expired. If an individual wishes to renew a certification that has been expired for less than one year, that individual shall submit the annual renewal fee and late filing fee, and proof of successful completion of the examination required for certification. Upon verification that the individual's certification has not been suspended, revoked, or expired for one year or longer, AFRED shall renew the individual's certification and the individual may resume CNG activities.]

§13.71.Hearings for Denial, Suspension, or Revocation of Licenses, Manufacturer Registrations, or Certificates [or Certifications].

(a) The Commission may deny, suspend, or revoke a license, registration, or certificate for any person [individual ] who fails to comply with this chapter.

(1) If AFS [LP-Gas Operations] determines that an applicant for license, manufacturer registration, certificate, or [license] renewal has not met the requirements of this chapter, AFS [LP-Gas Operations] shall notify the applicant in writing of the reasons for the proposed denial. In the case of an applicant for license, manufacturer registration, or certificate, the notice shall advise the applicant that the application may be resubmitted within 30 calendar days of receipt of the denial with all cited deficiencies corrected, or, if the applicant disagrees with AFS' [LP-Gas Operations'] determination, the applicant may request a hearing in writing on the matter within 30 calendar days of receipt of the notice of denial.

(2) If the applicant resubmits the application [for license or license renewal] within 30 days of receipt of the denial with all deficiencies corrected, AFS [LP-Gas Operations] shall issue the license, manufacturer registration, certificate, or [license] renewal as applicable.

(b) Hearing regarding denial of license, manufacturer registration, certificate, or associated renewals [license renewal].

(1) An applicant receiving a notice of denial [of a license or license renewal] may request a hearing to determine whether the applicant did comply in all respects with the requirements for the [category or categories of] license, registration, or certificate sought. The request for hearing must be in writing, must refer to the specific requirements the applicant claims were met, and must be received in the Commission's Austin office within 30 days of the applicant's receipt of the notification of denial.

(2) Upon receipt of a request complying with paragraph (1) of this subsection, AFS [LP-Gas Operations] shall forward the request for a hearing to the Hearings Division [Office of General Counsel] for the purpose of scheduling a hearing within 30 calendar days following the receipt of the request for hearing to determine the applicant's compliance or noncompliance with applicable requirements [the licensing requirements for the category or categories of license sought].

(3) If, after hearing, the Commission finds the applicant's claim has been supported, the Commission may [enter an order] issue an order approving the license, manufacturer registration, or certificate and AFS shall issue the license, manufacturer registration, certificate, or associated renewal if applicable [in its records to that effect, noting the category or categories of license for which the applicant is entitled to be licensed, and the license(s) or renewal(s) shall be issued].

(4) If, after hearing, the Commission finds that the applicant does not comply with the requirements of this chapter, the Commission may issue an order denying the application or renewal [is not qualified for the license or license renewal in the category or categories of license sought, the Commission may enter an order in its records to that effect, and no license or renewal may be issued to the applicant].

(c) Suspension and revocation of licenses, manufacturer registrations, or certificates [and certifications].

(1) If AFS [LP-Gas Operations] finds by means including, but not limited to, inspection, review of required documents submitted, or complaint by a member of the general public or any other person, a probable or actual violation of or noncompliance with the Texas Natural Resources Code, Chapter 116, or this chapter, AFS [LP-Gas Operations] shall notify the licensee, registered manufacturer, or certificate holder [certified person] of the alleged violation or noncompliance in writing.

(2) The notice shall specify the acts, omissions, or conduct constituting the alleged violation or noncompliance and shall designate a date not less than 30 calendar days or more than 45 calendar days after the licensee, registered manufacturer, or certificate holder [certified person] receives the notice by which the violation or noncompliance must be corrected or discontinued. If AFS [LP-Gas Operations] determines the violation or noncompliance may pose imminent peril to the health, safety, or welfare of the general public, AFS [LP-Gas Operations] may notify the licensee, registered manufacturer, or certificate holder [certified person] orally with instruction to immediately cease the violation or noncompliance. When oral notice is given, AFS [LP-Gas Operations] shall follow it with written notification no later than five business days after the oral notification.

(3) The licensee, registered manufacturer, or certificate holder [certified person] shall either report the correction or discontinuance of the violation or noncompliance within the time frame specified in the notice or request an extension of time in which to comply. The request for extension of the time to comply must be received by AFS [LP-Gas Operations] within the same time frame specified in the notice for correction or discontinuance.

(d) Hearing regarding suspension or revocation of licenses, manufacturer registrations, and certificates [certifications].

(1) If a licensee, registered manufacturer, or certificate holder [certified individual] disagrees with the determination of AFS [LP-Gas Operations] under this section, that licensee or certified individual may request a public hearing on the matter to be conducted as specified in Chapter 1 of this title (relating to Practice and Procedure) [in compliance with the Texas Government Code, Chapter 2001, Chapter 1 of this title (relating to Practice and Procedure), and any other applicable rules]. The request shall be in writing, shall refer to the specific rules or statutes the person [licensee or certified individual] claims were met, and shall be received by AFS [LP-Gas Operations] within 30 calendar days of the person's [licensee's or certified individual's ] receipt of the notice of violation or noncompliance.

(2) AFS shall forward the request for hearing to the Hearings Division. [If, after hearing, the Commission finds that the licensee or certified individual may not comply within the specified time, the Railroad Commission of Texas may enter an order calling a public hearing to be conducted in compliance with the Texas Government Code, Chapter 2001, the general rules of practice and procedure of the Railroad Commission of Texas in Chapter 1 of this title, and any other applicable rules].

§13.72.Designation and Responsibilities of Company Representatives and [of] Operations Supervisors [Supervisor (Branch Manager)].

(a) Each licensee shall have at least one company representative for the license and at least one operations supervisor for each outlet.

(1) A licensee maintaining one or more outlets shall file CNG Form 1001 with AFS listing the physical location of the first outlet and designating the company representative for the license and file CNG Form 1001A designating the physical location and operations supervisor for each additional outlet.

(2) A licensee may have more than one company representative.

(3) An individual may be an operations supervisor at more than one outlet provided that:

(A) each outlet has a designated CNG certified employee responsible for the CNG activities at that outlet;

(B) the certified employee's and/or operations supervisor's telephone number is posted at the outlet on a sign with lettering at least 3/4 inches high, visible and legible during normal business hours; and

(C) the certified employee and/or operations supervisor monitors the telephone number and responds to calls during normal business hours.

(4) The company representative may also serve as operations supervisor for one or more of the licensee's outlets provided that the person meets both the company representative and operations supervisor requirements in this section.

(5) A licensee shall immediately notify AFS in writing upon conclusion of employment, for whatever reason, of its company representative or any operations supervisor and shall at the same time designate a replacement.

(6) A licensee shall cease all CNG activities if it no longer employees a qualified company representative who complies with the Commission's requirements. A licensee shall not resume CNG activities until such time as it has a properly qualified company representative.

(7) A licensee shall cease CNG activities at an outlet if it no longer employs a qualified operations supervisor at that outlet who complies with the Commission's requirements. A licensee shall not resume CNG activities at that outlet until such time as it has a properly qualified operations supervisor.

[(a) The Commission shall designate whether a site is an outlet for the purpose of this chapter. Criteria used by the Commission in determining the designation of an outlet includes, but is not limited to:]

[(1) distance from other CNG activities operated by the licensee;]

[(2) whether the operation is a duplicate of the home office operation; and]

[(3) whether the operation is directly supervised on a routine basis.]

(b) A company representative shall:

(1) be an owner or employee of the licensed entity;

(2) be the licensee's principal individual in authority and be responsible for actively supervising all CNG activities conducted by the licensee, including all equipment, container, product, and system activities;

(3) have a working knowledge of the licensee's CNG activities to ensure compliance with the rules in this chapter and the Commission's administrative requirements;

(4) pass the appropriate management‑level rules examination;

(5) be directly responsible for all employees performing their assigned CNG activities, unless an operations supervisor is fulfilling this requirement; and

(6) submit any additional information as deemed necessary by AFS.

[(b) A licensee maintaining more than one outlet shall file CNG Form 1001A with LP-Gas Operations designating an operations supervisor (branch manager) at each outlet. The operations supervisor shall pass the management examination as administered by AFRED before commencing or continuing the licensee's operations at the outlet.]

(c) In addition to NFPA 52 §§1.4.3 and 4.2, an operations supervisor shall:

(1) be an owner or employee of the licensee;

(2) pass the applicable management‑level rules examination; and

(3) be directly responsible for actively supervising the CNG activities of the licensee at the designated outlet.

[(c) An operations supervisor (branch manager) may be a company representative of the licensee; however, unless specific approval is granted by LP-Gas Operations, an individual may be designated as an operations supervisor (branch manager) at each outlet.]

[(d) The operations supervisor (branch manager) shall be directly responsible for actively supervising CNG operations of the licensee at the designated outlet.]

§13.73.Employee Transfers.

(a) A licensee or [, an] ultimate consumer[, or a state agency, county, municipality, school district, or other governmental subdivision] shall notify AFS [AFRED] when a certificate holder or individual with an examination exemption [previously certified person] is hired[,] by filing CNG Form 1016A and a nonrefundable $10 [along with a $10 filing] fee with AFS, or in lieu of CNG Form 1016A, submit the $10 fee and a written notice including:[.]

(1) [Notification must include] the employee's name as recorded with the Commission; and [on a current driver's license or Texas Department of Public Safety identification card,]

(2) the last four digits of the employee's [employee] social security number[, name of previous and new licensee‑employer, and types of CNG work to be performed by the newly‑hired certified employee. A state agency, county, municipality, school district, or other governmental subdivision is exempt from this subsection if such entity chooses not to certify its employees who perform CNG activities].

(b) Upon approval of the documents submitted under subsection (a) of this section and verification of the individual's active status, AFS will send a copy of the certificate or exemption card to the new employer.

§13.75.Franchise Tax Certification and Assumed Name Certificate.

(a) An applicant for an original or renewal license or registered manufacturer that is a corporation, limited partnership, or limited liability company shall be approved to transact business in Texas by [in good standing with] the Texas Comptroller of Public Accounts. The licensee or registered manufacturer [An original license applicant] shall provide a copy of the current Certificate of Account Status [Franchise Tax Statement] from the Texas Comptroller of Public Accounts. [showing "In Good Standing."]

(b) All applicants [Any applicant] for license or manufacturer registrations, or their corresponding renewals shall [must] list [all names] on CNG Form 1001 or CNG Form 1001M all names under which CNG related activities requiring licensing or registration as a container manufacturer are to be conducted. Any company performing CNG activities under an assumed name ("DBA" or "doing business as" [dba]) shall [must ] file with AFS [LP-Gas Operations] copies of the assumed name certificates which are required to be filed with the respective county clerk's office and/or the Office of the Secretary of State.

§13.80.Requests for CNG Classes.

Requests for Commission staff to conduct a CNG training class for CNG activities under the Commission's jurisdiction shall be submitted to the AFS [AFRED] training section. The AFS [AFRED] training section may conduct the requested class at its discretion. The nonrefundable fee for a CNG training class is $250 if no overnight expenses are incurred by the AFS [AFRED] training section, or $500 if overnight expenses are incurred. AFS [AFRED] may waive the class fee in cases where the Commission recovers the cost of the class from another source, such as a grant.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004399

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §13.65, §13.68

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.65.Statements in Lieu of Insurance Certificates.

§13.68.Dealership Name Change.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004398

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER D. CNG COMPRESSION, STORAGE, AND DISPENSING SYSTEMS

16 TAC §§13.92, 13.94 - 13.105

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.92.System Component Qualification.

§13.94.Location of Installations.

§13.95.Installation of Cylinders and Cylinder Appurtenances.

§13.96.Installation of Pressure Relief Devices.

§13.97.Installation of Pressure Regulators.

§13.98.Installation of Pressure Gauges.

§13.99.Installation of Piping and Hoses.

§13.100.Testing.

§13.101.Installation of Emergency Shutdown Equipment.

§13.102.Installation of Electrical Equipment.

§13.103.Stray or Impressed Currents and Bonding.

§13.104.Operation.

§13.105.Fire Protection.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004400

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§13.93, 13.106, 13.107

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.93.System Protection Requirements [General].

(a) In addition to NFPA 52 §7.3.2, and NFPA 55 §§4.11 and 7.1.9, equipment [Equipment] related to a compression, storage, or dispensing installation[, excluding automatic dispensers and residential fueling facilities], shall be protected from tampering and damage [and the protection shall be maintained in good condition at all times and] in accordance with subsections (b) and (c) of this section [one of the three standards set forth in paragraphs (1) ‑ (3) of this subsection. Automatic dispensers for general public use shall be protected against collision damage in accordance with subsection (d) of this section]. These protections shall be maintained in good condition at all times.

(b) [(1)] Fencing at CNG stationary installations shall comply with the following.

(1) [(A)] Fencing material shall be chain link type with wire at least [no smaller than] 12‑1/2 American wire gauge in size.

(2) [(B)] Fencing shall be at least [no less than] six feet in height at all points. Fencing may be five feet in height when topped with at least three strands of barbed wire, with the strands [no more than] four inches apart.

(3) [(C)] Uprights [All uprights], braces, and [and/or] cornerposts of the fence shall be composed of noncombustible material [if located within distances for sources of ignition or combustible materials required in Table 1 of §13.94 of this title (relating to Location of Installations) of the enclosed CNG transfer system(s) or CNG cylinder(s)].

(4) Uprights, braces, and cornerposts of the fence shall be anchored in concrete a minimum of 12 inches below the ground.

(5) [(D)] All fenced enclosures shall have at least one gate suitable for ingress and egress. All gates shall be locked whenever the area enclosed is unattended.

(6) [(E)] A minimum clearance of two feet shall be maintained between the fencing and the compression equipment, cylinder cascade(s), or container(s), and the entire dispensing system(s).

(7) [(F)] Fencing which is located more than 25 feet from any point of a CNG dispensing system(s), container(s), or compression equipment is designated as perimeter fencing. If a CNG dispensing system(s), cylinder cascade(s), or compression equipment is located inside perimeter fencing and is subject to vehicular traffic, it shall be protected against damage according to the specifications set forth in subsection (c) of this section [paragraph (2) of this subsection].

(8) [(G)] The storage and compression area [cylinder cascade containers, compression equipment, and the entire dispensing system] must be completely enclosed by fencing.

(9) Where fencing is not used to protect the installation, then valve locks, a means of locking the electric control for the compressors, or other suitable means shall be provided to prevent unauthorized withdrawal of CNG.

(c) [(2)] Guardrails at CNG stationary installations shall comply with the following: [.]

[(A) Where fencing is not used to protect the installation as provided in paragraph (1) of this subsection, then valve locks, a means of locking the electric control for the compressor(s), or other suitable means shall be provided to prevent unauthorized withdrawal of CNG.]

(1) [(B)] Vertical supports for guardrails shall be at least [a minimum of] three‑inch Schedule 40 steel pipe, or other material with equal or greater strength. The vertical supports shall [must] be capped on the top or otherwise protected to prevent the entrance of water or debris into the guardpost, [and] anchored in concrete at least 18 inches below the ground, and rise at least [a minimum of 18 inches in concrete, with a minimum height of] 30 inches above the ground. Supports shall be spaced [no more than] four feet apart or less.

(2) [(C)] The top of the horizontal guardrailing shall be secured to the vertical supports at least [a minimum of] 30 inches above the ground. The horizontal guardrailing shall be at least [no less than] three‑inch Schedule 40 steel pipe, or other material with equal or greater strength. The horizontal guardrailing shall be capped on the ends or otherwise protected to prevent the entrance of water or debris into the guardpost, and welded or bolted to the vertical supports with bolts of sufficient size and strength to prevent damage to the protected equipment under normal conditions, including the nature of the traffic to which the protected equipment is subjected [displacement of the horizontal guardrailing].

(3) [(D)] Openings [No opening] in [the] horizontal guardrailing shall not [may] exceed 36 inches. Only one opening is allowed on each side of the guardrailing. A means of temporarily removing the horizontal guardrailing and/or vertical supports to facilitate the handling of heavy [compression] equipment may be incorporated into the horizontal guardrailing and vertical supports. In no case shall the protection provided by the horizontal guardrailing and vertical supports be decreased.

(4) [(E)] A minimum clearance of 24 inches shall be maintained between the railing and any part of the CNG compression equipment, cylinder cascade(s), container(s), or dispensing equipment.

(5) [(F)] The operating end of the container(s) and any part of the CNG compression equipment, piping, or cylinder cascade(s) which is exposed to collision damage or vehicular traffic shall [must] be protected from this type of damage [by the vehicular traffic]. [The protection shall extend at least 24 inches beyond any part of the CNG compression equipment, cylinder cascade(s), container(s), or dispensing equipment which is exposed to or vehicular traffic.]

(6) A minimum clearance of 24 inches shall be maintained between the railing and any part of the CNG compression equipment, cylinder cascades, containers, or dispensing equipment.

(d) [(3)] Dispenser protection [ Protection]. Each [automatic] dispenser shall be secured to a concrete island a minimum of six inches above the normal grade and two inches above the grade of any other fuel dispenser(s). Each [automatic] dispenser shall be protected against collision damage. Support columns or other such protection installed at the approach end(s) of the concrete island shall prevent collision with the [automatic] dispenser. If such protection cannot be provided, then the requirements of subsection (c) of this section [paragraph (2) of this subsection] shall apply.

[(4) Fencing and guardrails. A combination of the protection standards authorized by paragraphs (1) and (2) of this subsection shall not result in less protection than either standard.]

(e) [(5)] The provisions of this section notwithstanding, AFS [LP-Gas Operations] may require an installation to be protected in accordance with [subsection (a) of] this section when evidence exists that because of exceptional circumstances, added safeguards are needed to adequately protect the health, safety, and welfare of the general public. If a person owning or operating such an installation disagrees with the determination of AFS [LP-Gas Operations] made under this subsection, then that person may request a public hearing on the matter. However, until a determination is issued subsequent to a hearing on the matter, the subject automatic dispenser(s) shall be either protected in the manner described by AFS [LP-Gas Operations] or removed from CNG service and/or all of the product withdrawn from it.

(f) At least two monitoring sensors shall be installed at all stationary installations where methane can be trapped to detect hazardous levels of methane. Sensors shall activate prior to the methane level exceeding 25% of the lower flammability limit (LFL). If the level exceeds 25% of the LFL, the sensor shall either shut the system down or activate an audible and visual alarm. The number of sensors to be installed shall comply with the area of coverage for each sensor and the size of the installation. The sensors shall be installed and maintained in accordance with the manufacturer's instructions.

[(b) Control devices shall be designed and installed so that internal or external icing or hydrate formation will not cause a malfunction.]

[(c) Authorized automatic dispenser(s) shall comply with §13.25(k) of this title (relating to Filings Required for Stationary CNG Installations). Existing dispensers may be modified, provided the modifications include only those components listed as approved by a laboratory as discussed in §13.25(k) of this title, and are installed in a workmanlike manner in accordance with industry standards.]

[(d) The authorized automatic dispenser shall have the following features.]

[(1) A key, card, or code system shall be used.]

[(2) All appurtenances, metering equipment, and other related equipment installed on an automatic dispenser shall meet all applicable requirements of the rules in this chapter.]

[(3) All dispensing equipment shall be fabricated of material suitable for CNG, and resistant to the action of CNG under service conditions. Pressure containing parts shall be of steel, ductile iron, forged steel, brass, or an equivalent material. Aluminum may be used for approved meters. All piping shall be Schedule 80, and all pipe fittings shall be forged steel stamped 6,000 psi or greater.]

[(4) The automatic dispensing system shall incorporate a cutoff valve with an opening and closing device which ensures the valve is in a closed position when the dispenser is deactivated.]

[(5) A device shall be installed in the CNG piping in such a manner that displacement of the dispenser will result in the displacement of such piping on the downstream side of the device.]

[(6) The transfer hose on an automatic dispenser shall incorporate a pull‑away device. The pull‑away device shall be installed so as to separate by a force not greater than 45 pounds when applied in any horizontal direction. The device shall stop the flow of CNG in the event of a separation.]

[(7) All electric installations within the automatic dispenser enclosure and the entire pit or open space beneath the dispenser shall comply with the National Electric Code, Class 1, Group D, Division 2, except for dispenser components located at least 48 inches above the dispenser base which are intrinsically safe according to the National Electric Code.]

[(8) The fueling connector shall be compatible with the fueling connection of the vehicle as specified in §13.34 of this title (relating to Vehicle Fueling Connection). The fueling connector shall have the following safety features:]

[(A) remote vapor discharge;]

[(B) a manual shut‑off valve.]

(g) [(e)] In addition to NFPA 52 §§7.4.3.11, 7.11.5.2, and 7.14.12 and NFPA 55 §§4.10 and 7.1.8.3, all [All] CNG storage installations, and installations protected by guardrails only, must comply with the sign and/or lettering requirements of Table 1 of this section.

Figure: 16 TAC §13.93(g) (.pdf)

[Figure: 16 TAC §13.93(e)]

§13.106.Maintenance.

[(a) Cylinders and their appurtenances, piping systems, compression equipment, controls, vehicle fueling hose(s), and devices shall be maintained in proper operating condition at all times.]

(a) [(b)] While in transit, fueling hose and flexible metal hose on a cargo vehicle to be used in a transfer operation, including their connections, shall be depressurized and protected from wear and injury.

(b) [(c)] Pressure relief devices [valves] shall be maintained in proper operating condition.

(c) [(d)] As a precaution to keep pressure relief devices in reliable operating condition, care shall be taken in the handling or storing of CNG [compressed natural gas (CNG)] cylinders to avoid damage. Care shall also be exercised to avoid plugging by paint or other dirt accumulation of pressure relief device channels or other parts which could interfere with the functioning of the device.

§13.107.Dispenser Installation [Accuracy].

(a) In addition to NFPA 52 §§7.14.4 and 7.14.5, dispensers shall comply with §13.37 of this title (relating to Appurtenances and Equipment). Existing dispensers may be modified, provided the modifications include only those components listed as approved by a laboratory as specified in §13.37 of this title, and are installed in a workmanlike manner in accordance with industry standards.

(b) The dispenser shall have the followingfeatures.

(1) A key, card, or code system shall be used for automatic dispensers.

(2) All appurtenances, metering equipment, and other related equipment installed on a dispenser shall meet all applicable requirements of the rules in this chapter.

(3) All dispensing equipment shall be fabricated of material suitable for CNG, and resistant to the action of CNG under service conditions.

(4) The dispensing system shall incorporate a cutoff valve with an opening and closing device which ensures the valve is in a closed position when the dispenser is deactivated.

(5) The fueling connector shall be compatible with the fueling connection of the vehicle as specified in §13.34 of this title (relating to Vehicle Fueling Connection). The fueling connector shall have the following safety features:

(A) remote vapor discharge; and

(B) a manual shut‑off valve.

(c) CNG dispensing systems utilizing automatic dispensers shall be limited to the filling of permanently mounted fuel containers on CNG‑powered vehicles.

(d) Fuel dispensers, including automatic dispensers, may be operated only by an individual who has been properly trained.

(1) The licensee owning, operating, or servicing a CNG fuel dispensing facility shall ensure the safe operation of the system and provide training to users.

(2) Step‑by‑step operating instructions provided by the manufacturer shall be posted at or on each automatic dispenser, readily visible to the operator during transfer operations. The instructions shall describe each action necessary to operate the automatic dispenser and include the location of and procedure for activating emergency shutoff equipment.

(3) Each person or entity who operates a fuel dispenser, excluding an automatic dispenser, shall be provided with written instructions and safe operating procedures by the licensee. The person operating the dispenser should be cautioned to study and preserve such instructions and procedures.

(e) Each retail CNG [compressed natural gas (CNG)] dispenser shall comply with the applicable weights and measures requirements of the Texas Department of Agriculture, relating to dispensing accuracy.

(f) If automatic dispensers are to be used during hours of darkness, permanent adequate lighting shall be provided to facilitate proper operations.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004401

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER E. ENGINE FUEL SYSTEMS

16 TAC §§13.132, 13.134 - 13.141

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter116.

§13.132.System Component Qualification.

§13.134.Installation of Venting Systems.

§13.135.Installation of Piping.

§13.136.Installation of Valves.

§13.137.Installation of Pressure Gauges.

§13.138.Installation of Pressure Regulators.

§13.139.Installation of Fueling Connection.

§13.140.Labeling.

§13.141.System Testing.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004402

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§13.133, 13.142, 13.143

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.133.Installation of Fuel Supply Containers [Cylinders].

[(a) Fuel supply cylinders on vehicles other than school buses, mass transit, or other vehicles used in public transportation may be located within, below, or above the driver or passenger compartment, provided all connections to the cylinders are external to, or sealed and vented from those compartments.]

(a) [(b)] In addition to NFPA 52 §§6.3.2 and 6.3.3, fuel [Fuel] supply containers [cylinders] on school buses, mass transit, and other public transportation vehicles shall not be located [above or] within the driver or passenger compartment. The motor fuel containers installed on a special transit vehicle may be installed in the passenger compartment, provided all connections to the containers are external to, or sealed and vented from, those compartments [it complies with subsection (a) of this section].

[(c) Each fuel supply cylinder shall be mounted in a location to minimize damage from collision. No part of a cylinder or its appurtenances shall protrude beyond the sides or top of the vehicle at the point where it is installed.]

[(d) The fuel system shall be installed with as much road clearance as practical, but not less than the minimum road clearance of the vehicle when loaded to its gross vehicle weight rating. This minimum clearance shall be measured from the lowest part of the fuel system.]

[(e) No portion of a fuel supply cylinder or cylinder appurtenance shall be located ahead of the front axle or behind the rear bumper mounting face of a vehicle. Cylinder valves shall be protected from physical damage using the vehicle structure, valve protectors, or a suitable metal shield.]

[(f) Each cylinder bracket shall be secured to the vehicle body, bed, or frame with bolts, lock washers and nuts, or self‑locking nuts of a size and strength capable of withstanding a static force in any direction of eight times the weight of a fully pressurized cylinder. The cylinder bracket shall be designed and manufactured by a cylinder manufacturer. Each specific mounting bracket manufactured on or after January 1, 1994, must have the manufacturer's name or logo on it in order to properly identify the bracket manufacturer. If self‑locking nuts are installed, such nuts shall not be reused once they are removed. The container mounting brackets shall prevent the container from jarring loose, slipping, or rotating.]

[(g) Each fuel supply cylinder shall be secured in the mounting brackets by bolts, lock washers and nuts, or self‑locking nuts of a size and strength capable of withstanding a static force applied in any direction eight times the weight of the fully pressurized cylinder. If self‑locking nuts are installed, such nuts shall not be reused once they are removed.]

[(h) The cylinder weight shall not be supported by the outlet, service valves, manifolds, or other fuel connections.]

[(i) Fuel supply cylinders located less than eight inches from the exhaust system shall be shielded against direct heat.]

[(j) The mounting system shall minimize fretting corrosion between the cylinder and the mounting system by means of rubber insulators or other suitable means.]

[(k) Fuel supply cylinders shall not be installed so as to adversely affect the driving characteristics of the vehicle.]

[(l) Containers shall be secured to a school bus, mass transit, or special transit vehicle frame (not the floor) by container fastenings or mounting brackets described in subsection (f) of this section. The fastenings or brackets must be secured to the frame or securely mounted to a supporting structure so as not to compromise the strength of that structure (i.e., backing plates or other acceptable means may be used to accomplish this purpose). Container(s) which are currently installed on school buses or mass transit vehicles by means of strap mounting brackets may continue to be used.

[(m) The motor fuel container(s) installed on a school bus or mass transit vehicle shall be installed on the underside of the vehicle.]

(b) [(n)] If necessary, a plumbing chamber door shall be provided in the sidewall of the school bus, mass transit, or special transit vehicle to allow easy access for filling or securing the service valve in the event of an emergency. The plumbing chamber door shall be hinged and latched, but not locked.

§13.142.Maintenance and Repair.

[(a) Damaged supply lines shall be replaced, not repaired.]

[(b) The owner or user, or both, shall maintain all cylinders, cylinder appurtenances, piping systems, venting systems, and other components in a safe condition.]

(a) [(c)] As a precaution to keep pressure relief devices in reliable operating condition, care shall be taken in the handling or storing of CNG [compressed natural gas (CNG)] cylinders to avoid damage. Care shall also be exercised to avoid plugging by paint or other dirt accumulation of pressure relief device channels or other parts which could interfere with the functioning of the device.

(b) If any component is not in safe working order, AFS may require that the vehicle be immediately removed from CNG service and not be operated until the necessary repairs have been made.

[(d) No repair or alteration will be permitted on pressure relief devices.]

§13.143.Venting of CNG to the Atmosphere.

In addition to NFPA 52 §6.14.1.1, all [All] venting of CNG shall be done outdoors [only under conditions that will result in rapid dispersion of the product being released. Consideration shall be given to such factors as distance to buildings, terrain, wind direction and velocity, and use of a vent pipe or stack so that a flammable mixture will not reach a point of ignition. A vent pipe or stack shall have the open end suitably protected to prevent entrance of rain, snow, and solid material. Provision shall be made in vertical vent pipes and stacks for drainage. Prior to and during venting of the CNG cylinders, they shall be properly grounded so as to eliminate any possible static electrical charges].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004403

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER F. RESIDENTIAL FUELING FACILITIES

16 TAC §§13.182, 13.184 - 13.186, 13.188, 13.189, 13.191 - 13.194

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.182.Scope .

§13.184.General.

§13.185.Installation.

§13.186.Outdoor Installations.

§13.188.Installation of Pressure Gauges.

§13.189.Pressure Regulation.

§13.191.Testing.

§13.192.Installation of Emergency Shutdown Equipment.

§13.193.Operation.

§13.194.Maintenance and Inspection.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004404

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§13.183, 13.187, 13.190

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.183.System Component Qualifications.

In addition to NFPA 52 §8.2.1, system [System ] components shall comply with the appropriate provisions in Subchapter B of this chapter (relating to General Rules for Compressed Natural Gas (CNG) Equipment Qualifications).

§13.187.Installation of Pressure Relief Devices [Valves].

In addition to NFPA 52, §8.5, the [Pressure relief valves shall be vented upwards to a safe area so as not to impinge on buildings, other equipment, or areas that could be occupied by the public (e.g., sidewalks). The] discharge vent line shall be able to withstand the pressure from the relief vapor discharge when the relief device [valve] is in the full open position and shall permit sufficient pressure relief relieving capacity. A spring loaded or counterbalanced rain cap shall be provided on the discharge vent line. The rain cap shall permit the pressure relief device [valve] to operate at sufficient relieving capacity.

§13.190.Piping and Hose.

[(a) All piping and hose from the outlet of the compressor shall be supplied as part of the residential fueling facility.]

(a) [(b)] The use of hose in an installation is limited to:

(1) a vehicle refueling hose; the maximum length fueling hose is 12 feet and shall be supported;

(2) an inlet connection to compression equipment not exceeding 36 inches. This connector, if used, shall be supplied as part of the residential fueling appliance [facility];

(3) a section of metallic hose not exceeding 36 inches in length in a pipeline to provide flexibility where necessary. Each section shall be so installed that it will be protected against mechanical damage and be readily visible for inspection. The manufacturer's identification shall be retained in each section;

(4) hose used for pressure relief device channels may exceed 36 inches.

(b) [(c)] The least possible number of connections shall be used in order to reduce the possibility of leakage in the residential fueling appliance [facility].

[(d) Bleed connections shall be provided in transfer systems to permit depressurizing the line before disconnection. These bleed connections shall be vented to a safe point of discharge.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004405

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER G. ADOPTION BY REFERENCE OF NFPA 52 (VEHICULAR GASEOUS FUEL SYSTEMS CODE)

16 TAC §§13.201 - 13.203

The Commission proposes the new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.201.Adoption by Reference of NFPA 52.

(a) Effective February 15, 2021, except as modified in this subchapter, the Commission adopts by specific reference the provisions established by the National Fire Protection Association in its 2013 edition of the Vehicular Gaseous Fuel Systems Code, commonly referred to as NFPA 52 or Pamphlet 52. Nothing in this section or subchapter shall prevent the Commission, after notice, from adopting additional requirements, whether more or less stringent, for individual situations to protect the health, safety, and welfare of the general public. Any documents or parts of documents incorporated by reference into these rules shall be a part of these rules as if set out in full.

(b) Effective February 15, 2021, the Commission also adopts by reference all other NFPA publications or portions of those publications referenced in NFPA 52 which apply to CNG activities only. The pamphlets adopted by reference in NFPA 52 are:

(1) NFPA 30A, Code for Motor Fuel Dispensing Facilities and Repair Garages, 2012 edition;

(2) NFPA 37, Standard for the Installation and Use of Stationary Combustion Engines and Gas Turbines, 2010 edition;

(3) NFPA 51B, Standard for Fire Prevention During Welding, Cutting, and Other Hot Work, 2009 edition;

(4) NFPA 54, National Fuel Gas Code, 2012 edition;

(5) NFPA 59A, Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG), 2013 edition;

(6) NFPA 70, National Electrical Code, 2014 edition;

(7) NFPA 80, Standard for Fire Doors and Other Opening Protectives, 2013 edition;

(8) NFPA 101, Life Safety Code, 2012 edition;

(9) NFPA 259, Standard Test Method for Potential Heat of Building Materials, 2013 edition;

(10) NFPA 302, Fire Protection Standard for Pleasure and Commercial Motor Craft, 2010 edition;

(11) NFPA 303, Fire Protection Standard for Marinas and Boatyards, 2011 edition;

(12) NFPA 496, Standard for Purged and Pressurized Enclosures for Electrical Equipment, 2013 edition; and

(13) NFPA 5000, Building Construction and Safety Code, 2012 edition.

§13.202.Clarification of Certain Terms Used in NFPA 52.

(a) Authority having jurisdiction. As pertains to CNG activities in Texas, the phrase "authority having jurisdiction" defined in NFPA 52 §3.2 and referenced in other NFPA publications shall be the Railroad Commission of Texas or any of its divisions or employees, except with respect to the definitions of "approved," "labeled," and "listed" in NFPA 52 §3.2.

(b) Engineering. The Commission does not adopt language in any NFPA 52 rule such as "sound engineering practice," "accepted engineering practice," "good engineering practice," "sound engineering design," or similar language that might be understood to mean or refer to the practice of engineering. The omission of a specific NFPA 52 rule or other NFPA pamphlets containing such language from the exceptions listed in this subchapter is inadvertent and shall not be read or understood as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring a license.

§13.203.Sections in NFPA 52 Adopted with Additional Requirements or Not Adopted.

Table 1 of this section lists certain NFPA 52 sections which the Commission adopts with additional requirements or does not adopt in order to address the Commission's rules in this chapter.

Figure: 16 TAC §13.203 (.pdf)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004406

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER H. ADOPTION BY REFERENCE OF NFPA 55 (COMPRESSED GASES AND CRYOGENIC FLUIDS CODE)

16 TAC §§13.301 - 13.303

The Commission proposes the new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the Commission in accordance with rules adopted by the Commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§13.301.Adoption by Reference of NFPA 55.

(a) Effective February 15, 2021, except as modified in this subchapter, the Commission adopts by specific reference the provisions established by the National Fire Protection Association in its 2013 edition of the Compressed Gases and Cryogenic Fluids Code, commonly referred to as NFPA 55 or Pamphlet 55. Nothing in this section or subchapter shall prevent the Commission, after notice, from adopting additional requirements, whether more or less stringent, for individual situations to protect the health, safety, and welfare of the general public. Any documents or parts of documents incorporated by reference into these rules shall be a part of these rules as if set out in full.

(b) Effective February 15, 2021, the Commission also adopts by reference all other NFPA publications or portions of those publications referenced in NFPA 55 which apply to CNG activities only. The pamphlets adopted by reference in NFPA 55 are:

(1) NFPA 1, Fires Code, 2012 edition;

(2) NFPA 2, Hydrogen Technologies Code, 2011 edition;

(3) NFPA 10, Standard for Portable Fire Extinguishers, 2010 edition;

(4) NFPA 13, Standard for the Installation of Sprinkler Systems, 2013 edition;

(5) NFPA 16, Standard for the Installation of Foam‑Water Sprinkler and Foam‑Water Spray Systems, 2011 edition;

(6) NFPA 30, Flammable and Combustible Liquids Code, 2012 edition;

(7) NFPA 31, Standard for the Installation of Oil‑Burning Equipment, 2011 edition;

(8) NFPA 45, Standard on Fire Protection for Laboratories Using Chemicals, 2011 edition;

(9) NFPA 51, Standard for the Design and Installation of Oxygen‑Fuel Gas Systems for Welding, Cutting, and Allied Processes, 2013 edition;

(10) NFPA 52, Vehicular Gaseous Fuel Systems Code, 2010 edition;

(11) NFPA 54, National Fuel Gas Code, 2012 edition;

(12) NFPA 58, Liquefied Petroleum Gas Code, 2011 edition;

(13) NFPA 59A, Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG), 2013 edition;

(14) NFPA 68, Standard on Explosion Protection by Deflagration Venting, 2007 edition;

(15) NFPA 69, Standard on Explosion Prevention Systems, 2008 edition;

(16) NFPA 70, National Electrical Code, 2011 edition;

(17) NFPA 72, National Fire Alarm and Signaling Code, 2013 edition;

(18) NFPA 79, Electrical Standard for Industrial Machinery, 2012 edition;

(19) NFPA 80, Standard for Fire Doors and Other Opening Protectives, 2013 edition;

(20) NFPA 90A, Standard for the Installation of Air‑Conditioning and Ventilating Systems, 2012 edition;

(21) NFPA 99, Health Care Facilities Code, 2012 edition;

(22) NFPA 101, Life Safety Code, 2012 edition;

(23) NFPA 110, Standard for Emergency and Standby Power Systems, 2013 edition;

(24) NFPA 259, Standard Test Method for Potential Heat of Building Materials, 2008 edition;

(25) NFPA 496, Standard for Purged and Pressurized Enclosures for Electrical Equipment, 2008 edition;

(26) NFPA 505, Fire Safety Standard for Powered Industrial Tricks Including Type Designations, Areas of Use, Conversions, Maintenance, and Operations, 2011 edition;

(27) NFPA 704, Standard System for the Identification of the Hazards of Materials for Emergency Response, 2012 edition;

(28) NFPA 801, Standard for Fire Protection for Facilities Handling Radioactive Materials, 2008 edition; and

(29) NFPA 853, Standard for the Installation of Stationary Fuel Cell Power Systems, 2010 edition.

§13.302.Clarification of Certain Terms Used in NFPA 55.

(a) Authority having jurisdiction. As pertains to CNG activities in Texas, the phrase "authority having jurisdiction" defined in NFPA 55 §3.2.2 and referenced in other NFPA publications shall be the Railroad Commission of Texas or any of its divisions or employees, except with respect to the definitions of "approved," "labeled," and "listed" in NFPA 55 §3.2.

(b) Engineering. The Commission does not adopt language in any NFPA 55 rule such as "sound engineering practice," "accepted engineering practice," "good engineering practice," "sound engineering design," or similar language that might be understood to mean or refer to the practice of engineering. The omission of a specific NFPA 55 rule or other NFPA pamphlets containing such language from the exceptions listed in this subchapter is inadvertent and shall not be read or understood as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring a license.

§13.303.Sections in NFPA 55 Adopted with Additional Requirements or Not Adopted.

Table 1 of this section lists certain NFPA 55 sections which the Commission adopts with additional requirements or does not adopt in order to address the Commission's rules in this chapter.

Figure: 16 TAC §13.303 (.pdf)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004407

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


CHAPTER 14. REGULATIONS FOR LIQUEFIED NATURAL GAS (LNG)

The Railroad Commission of Texas (Commission) proposes amendments, new rules, and repeals in 16 TAC Chapter 14. In Subchapter A, General Applicability and Requirements, the Commission proposes amendments to §14.2004, Applicability, Severability, and Retroactivity; §14.2007, Definitions; §14.2010, LNG Forms; and §14.2013, License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals; the repeal of §14.2014, Military Fee Exemption; new §14.2014, Application for License or Manufacturer Registration (New and Renewal); the repeal of §14.2015, Penalty Guidelines for LNG Safety Violations; new §14.2015, Military Fee Exemption; the repeal of §14.2016, Licensing Requirements; new §14.2016, Penalty Guidelines and Enforcement; amendments to §14.2019, Examination Requirements and Renewals; §14.2020, Employee Transfers; and §14.2021, Requests for LNG Classes; the repeal of §14.2022, Denial, Suspension, or Revocation of Licenses or Certifications, and Hearing Procedure; amendments to §14.2025, Designation and Responsibilities of Company Representatives and Operations Supervisors; and §14.2028, Franchise Tax Certification and Assumed Name Certificates; new §14.2029, Changes in Ownership, Form of Dealership, or Name of Dealership; amendments to §14.2031, Insurance Requirements; and §14.2034, Self-Insurance Requirements; the repeal of §14.2037, Components of LNG Stationary Installations Not Specifically Covered; amendments to §14.2040, Filings Required for Stationary LNG Installations; new §14.2041, Notice of, Objections to, and Hearings on Proposed Stationary LNG Installations; and new §14.2042, Physical Inspection of Stationary Installations; amendments to §14.2043, Temporary Installations; §14.2046, School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections; §14.2049, Report of LNG Incident/Accident; and.§14.2052, Application for an Exception to a Safety Rule.

In Subchapter B, General Rules for All Stationary LNG Installations, the Commission proposes amendments to §14.2101, System Protection Requirements; new §14.2102. Installation and Maintenance; amendments to §14.2104, Testing of Containers; the repeal of §14.2107, Stationary LNG Storage Containers; amendments to §14.2110, LNG Container Installation Distance Requirements; the repeal of §14.2113, Maintenance Tanks; amendments to §14.2116, Venting of LNG; §14.2119, Transport Vehicle Loading and Unloading Facilities and Procedures; §14.2122, Pumps and Compressors Used for LNG and Refrigerants; and §14.2125, Hoses and Arms; the repeal of §14.2128, Communications and Lighting; amendments to §14.2131, Fire Protection; the repeal of §14.2134, Container Purging Procedures; amendments to §14.2137, Employee Safety and Training; and the repeal of §14.2140, Inspection and Maintenance.

In Subchapter D, General Rules for LNG Fueling Facilities, the Commission proposes amendments to §14.2304, General Facility Design; the repeal of §14.2307, Indoor Fueling; amendments to §14.2310, Emergency Refueling; and §14.2313, Fuel Dispensing Systems; new §14.2314. Removal from LNG Service; the repeal of §14.2316, Filings Required for Installation of Fuel Dispensers; amendments to §14.2319, Automatic Fuel Dispenser Safety Requirements; the repeal of §14.2322, Protection of Automatic and Other Dispensers; §14.2325, LNG Transport Unloading at Fueling Facilities; and §14.2328, Training, Written Instructions, and Procedures Required.

In Subchapter E, Piping Systems and Components for All Stationary LNG Installations, the repeal of §14.2404, Piping Materials; §14.2407, Fittings Used in Piping; §14.2410, Valves; and §14.2413, Installation of Piping; amendments to §14.2416, Installation of Valves; the repeal of §14.2419, Welding at Piping Installations; §14.2422, Pipe Marking and Identification; §14.2425, Pipe Supports; §14.2428, Inspection and Testing of Piping; §14.2431, Welded Pipe Tests; §14.2434, Purging of Piping Systems; §14.2437, Pressure and Relief Valves in Piping; and §14.2440, Corrosion Control.

In Subchapter F, Instrumentation and Electrical Services, the Commission proposes the repeal of all rules in the subchapter, including §14.2501, Liquid Level Gauging; §14.2504, Pressure Gauges; §14.2507, Vacuum Gauges; §14.2510, Emergency Failsafe; §14.2513, Electrical Equipment; and §14.2516, Electrical Grounding and Bonding.

In Subchapter G, Engine Fuel Systems, the Commission proposes amendments to §14.2604, System Component Qualification, the repeal of §14.2607, Vehicle Fuel Containers; amendments to §14.2610, Installation of Vehicle Fuel Containers; the repeal of §14.2613, Engine Fuel Delivery Equipment; and §14.2616, Installation of Venting Systems and Monitoring Sensors; amendments to §14.2619, Installation of Piping; the repeal of §14.2622, Installation of Valves; amendments to §14.2625, Installation of Pressure Gauges; the repeal of §14.2628, Installation of Pressure Regulators; and §14.2631, Wiring; amendments to §14.2634, Vehicle Fueling Connection; §14.2637, Signs and Labeling; and §14.2640, System Testing.

In Subchapter H, LNG Transports, the Commission proposes amendments to §14.2701, DOT Requirements; §14.2704, Registration and Transfer of LNG Transports; §14.2705, Replacement Decals; §14.2707, Testing Requirements; §14.2710, Markings; §14.2737, Parking of LNG Transports and Container Delivery Units, and Use of Chock Blocks; and §14.2746, Delivery of Inspection Report to Licensee; and the repeal of §14.2749, Issuance of LNG Form 2004 Decal.

The Commission proposes new Subchapter I, Adoption by Reference of NFPA 52 (Vehicular Gaseous Fuel Systems Code) to include new §14.2801, Adoption by Reference of NFPA 52; §14.2802, Clarification of Certain Terms Used in NFPA 52; and §14.2803, Sections in NFPA 52 Adopted with Additional Requirements or Not Adopted.

The Commission proposes new Subchapter J, Adoption by Reference of NFPA 59A (Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG)) to include new §14.2901, Adoption by Reference of NFPA 59A; §14.2902, Clarification of Certain Terms Used in NFPA 59A; and §14.2903, Sections in NFPA 59A Adopted with Additional Requirements or Not Adopted. The Commission proposes to adopt the two NFPA standards to establish requirements for Texas LNG licensees and consumers consistent with most other states in the United States. Because NFPA 52 and 59A have been adopted in whole or in part by many states, the Texas LNG industry would benefit from their adoption because Texas companies would be held to the same standards.

The Commission proposes the amendments, new rules, and repeals to update and clarify the Commission's LNG rules. The main purpose of the proposal is to adopt by reference NFPA 52 and 59A in the proposed new rules in Subchapters I and J. In addition, the Commission proposes amendments to certain rules to incorporate or update references to sections in the NFPA standards, as well as other nonsubstantive clarifications. Rules proposed with these types of amendments include §§14.2019, 14.2025, 14.2052, 14.2101, 14.2110, 14.2116, 14.2119, 14.2122, 14.2125, 14.2131, 14.2304, 14.2313, 14.2319, 14.2416, 14.2604, 14.2610, 14.2619, 14.2625, 14.2634, 14.2637, and 14.2640.

Several rules are proposed for repeal; with the proposed adoption by reference of NFPA 52 and 59A, these rules are no longer necessary. Rules proposed for repeal include §§14.2037, 14.2107, 14.2113, 14.2128, 14.2134, 14.2140, 14.2307, 14.2316, 14.2322, 14.2325, 14.2328, 14.2404, 14.2407, 14.2410, 14.2413, 14.2419, 14.2422, 14.2425, 14.2428, 14.2431, 14.2434, 14.2437, 14.2440, 14.2501, 14.2504, 14.2507, 14.2510, 14.2513, 14.2516, 14.2607, 14.2613, 14.2616, 14.2622, 14.2628, 14.2631, 14.2643, and 14.2749.

The second purpose for the proposed amendments, new rules, and repeals is to implement changes from the 86th Legislative Session. House Bill 2127 removed the requirement that manufacturers of LNG containers obtain a license from the Commission and instead requires registration with the Commission. Proposed changes to reflect this statutory change are found in §§14.2007, 14.2013, 14.2014, 14.2016, 14.2028, new 14.2029, and 14.2031. Operators will not be required to comply with changes directly related to manufacturer registrations until approximately February 15, 2021. Upon adoption, the Commission will specify the effective date relating to requirements for manufacturer registration.

These rules also include proposed nonsubstantive amendments to clarify existing language, correct outdated language such as incorrect division and department names, update references to other Commission rules, and ensure language within Chapter 14, and throughout the Commission's alternative fuels regulations, is consistent. Clarifying changes include amendments to improve readability such as removing repetitive language, adding internal cross references, and including language from a referenced section (e.g., a fee amount) to give the reader better access to applicable requirements.

Proposed amendments to §14.2007 remove definitions of terms that no longer appear in Chapter 14 or are only used within one section and, therefore, do not need to be defined. The proposed amendments add definitions of "certificate holder," "pullaway," "registered manufacturer," and "rule examination," as those terms are now used throughout the chapter. The proposed amendments also clarify several existing definitions.

Proposed amendments in §14.2010 remove the list of official forms from the rule language to ensure consistency with other chapters. All Commission forms are now located on the Commission's website. The proposed amendments also specify the form amendment and adoption process.

Proposed amendments in §14.2013 include changes to implement the registration requirement from House Bill 2127.

Proposed new §14.2014 contains language moved from current §14.2016. New language includes proposed subsection (h), which implements House Bill 2127 by requiring a new form, LNG Form 2001M, and specifying that a container manufacturer registration authorizes the manufacture, assembly, repair, testing and sale of LNG containers. The original registration fee is $1,000; the renewal fee is $600. Other proposed wording generally clarifies license requirements and reflects the proposed adoption of NFPA 52 and 59A.

Current §14.2014 is proposed to be repealed and the text is proposed as new §14.2015 with no changes other than the rule number.

Current §14.2015 is proposed to be repealed and most of its text moved to §14.2016. The tables in §14.2016(a)(5) and (a)(11) include some proposed changes from the existing tables in §14.2015. Most of these proposed changes are made to reference container manufacturer requirements and penalty amounts, as well as the adoption of the NFPA documents. Because the tables are proposed in new §14.2016 and therefore do not include any underlining or strike-outs, the Commission has provided a version of these tables showing the proposed changes on its website for comparison purposes. The remaining three tables moving from §14.2015 to new §14.2016 have no proposed changes other than the Figure heading indicating the rule number.

Proposed new §14.2016(b) is moved from current §14.2022, which is proposed to be repealed. Proposed new subsection (b) also incorporates references to registered manufacturers.

Proposed amendments in §14.2019 include requirements for individuals who perform work, directly supervise LNG activities, or are employed in any capacity requiring contact with LNG, in addition to certain NFPA-related amendments previously discussed. The proposed amendments also ensure "certificate" and "certificate holder" are used throughout instead of using "certificate," "certificate holder," "certified," and "certification" inconsistently. Proposed wording clarifies requirements for certificate renewal and steps to renew a lapsed certificate. Proposed new wording specifies that an individual who passes the applicable examination with a score of at least 75% will become a certificate holder and clarifies where and when examinations are available and what an examinee must bring to the exam site. Further, the proposed wording incorporates the examinations and their descriptions, which were previously included in a table, and clarifies the process for obtaining a management-level certificate. The examinations were previously listed in Figure 14.2019(a)(3) and are now proposed in §14.2019(c).

Amendments proposed in §14.2020 update the process for licensees who hire certificate holders, including allowing notification to the Commission to include only the last four digits of the employee's Social Security Number.

Proposed amendments in §14.2025 clarify filing requirements for company representatives, operations supervisors, and outlets, in addition to NFPA-related amendments previously discussed. The proposed amendments specify the requirements for designating company representatives and operations supervisors, and change wording from "termination" to "conclusion of employment" to better communicate AFS's intent for when a licensee must notify AFS of a company representative's or operations supervisor's departure.

Proposed new §14.2029, specifies the requirements for any changes in ownership, form of dealership, or name of dealership. The new rule incorporates existing procedures and reflects the process from the corresponding rule in Chapter 9 of this title (relating to LP-Gas Safety Rules).

Amendments proposed in §14.2031 incorporate insurance requirements for registered manufacturers.

Proposed amendments to §14.2040 remove language related to local requirements to ensure consistency among the Commission's alternative fuels regulations. Proposed amendments reorganize the rule, make minor updates for clarity, and change requirements to ensure consistency among the Commission's alternative fuels regulations.

Existing §14.2040 (c) through (m) are proposed to be deleted from §14.2040 and moved to proposed new §§14.2041 and 14.2042 for better organization of the subject matter. Proposed wording in §14.2042 incorporates new terminology used by AFS such that a "safety rule violation" is now called a "non-compliance item."

Proposed amendments in §14.2046, in addition to general updates and clarifications, clarify existing filing requirements for registering an LNG transport.

Proposed amendments to §14.2049 clarify existing requirements and align the rules with the accident and incident reporting procedures in Chapter 9 of this title.

Proposed amendments in §14.2101 include updates due to NFPA changes. Proposed amendments also require uprights, braces, and cornerposts to be anchored in concrete a minimum of 12 inches below the ground. This provision is added to ensure consistency among the Commission's alternative fuels regulations.

Proposed amendments in new §14.2102 and §14.2314 ensure the rules match current Commission procedure as well as the corresponding rules in Chapter 9.

Proposed amendments in §14.2704 clarify requirements for registration and transfer of LNG cargo tanks or delivery units and conform the rule to similar provisions in Chapters 9 and 13 of this title.

Proposed amendments in §14.2710 clarify the requirements for markings on CNG transports. New language proposed in subsection (b) requires certain types of public transportation vehicles to mark the location of the manual shutoff valve.

Other proposed amendments are nonsubstantive clarifications or updates such as correcting Commission department or division names, reorganization of the rule text, or other similar revisions. These types of amendments are proposed in §§14.2004, 14.2021, 14.2034, 14.2043, 14.2104, 14.2137, 14.2310, 14.2701, 14.2704, 14.2705, 14.2707, 14.2710, 14.2737, and 14.2746.

April Richardson, Director, Alternative Fuels Safety Department, has determined that there will be a one-time cost to the Commission of approximately $23,275 in programming costs based on 490 hours of programming to implement changes required by HB 2127. This cost will be covered using the Commission's existing budget. Further, AFS will have a one-time cost to purchase copies of NFPA 52 and 59A. The copies of NFPA standards will be provided to all inspectors, to managers at the AFS Austin office, and to examinees and instructors across the state. The total estimated cost to replace these books is $4,408. This cost will also be covered using AFS's existing budget. There are no anticipated fiscal implications for local governments as a result of enforcing the amendments and new rule.

Ms. Richardson has determined that there will be minimal costs for those required to comply with the proposed amendments. Any cost stems from the need to purchase copies of NFPA 52 and/or NFPA 59A if a person required to comply does not already own a copy. The softbound copies of NFPA 52 and NFPA 59A total $116. Manufacturers who are no longer required to obtain a license will save $20 per company representative per year, as the certificate renewal requirements will not apply to these employees.

Ms. Richardson has also determined that the public benefit anticipated as a result of enforcing or administering the amendments will be compliance with recent changes to the Texas Natural Resources Code and increased public safety due to new NFPA standards.

In accordance with Texas Government Code, §2006.002, the Commission has determined there will be no adverse economic effect on rural communities, small businesses or micro-businesses resulting from the proposed amendments and new rule; therefore, the Commission has not prepared the economic impact statement or the regulatory flexibility analysis required under §2006.002.

The Commission has determined that the proposed rulemaking will not affect a local economy; therefore, pursuant to Texas Government Code, §2001.022, the Commission is not required to prepare a local employment impact statement for the proposed rules.

The Commission has determined that the proposed amendments and new rule do not meet the statutory definition of a major environmental rule as set forth in Texas Government Code, §2001.0225; therefore, a regulatory analysis conducted pursuant to that section is not required.

During the first five years that the rules would be in effect, the proposed amendments would not: create or eliminate a government program; create or eliminate any employee positions; require an increase or decrease in future legislative appropriations; increase or decrease fees paid to the agency; create a new regulation; increase or decrease the number of individuals subject to the rule's applicability; expand, limit, or repeal an existing regulation; or effect the state's economy. The amendments are proposed to align Commission rules with governing state statutes and national standards. The amendments would decrease fees paid to the agency because due to HB 2127, manufacturers no longer require a license. Thus, a registered manufacturer is not required to pay $20 per company representative for annual certificate renewal.

Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.texas.gov/general-counsel/rules/comment-form-for-proposed-rulemakings; or by electronic mail to rulescoordinator@rrc.texas.gov. The Commission will accept comments until 12:00 noon on Monday, December 14, 2020. The Commission finds that this comment period is reasonable because the proposal and an online comment form will be available on the Commission's website more than two weeks prior to Texas Register publication of the proposal, giving interested persons additional time to review, analyze, draft, and submit comments. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Ms. Richardson at (512) 463-6935. The status of Commission rulemakings in progress is available at www.rrc.texas.gov/general-counsel/rules/proposed-rules.

SUBCHAPTER A. GENERAL APPLICABILITY AND REQUIREMENTS

16 TAC §§14.2004, 14.2007, 14.2010, 14.2013 - 14.2016, 14.2019 - 14.2021, 14.2025, 14.2028, 14.2029, 14.2031, 14.2034, 14.2040 - 14.2043, 14.2046, 14.2049, 14.2052

The Commission proposes the amendments and new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2004.Applicability, Severability, and Retroactivity.

(a) This chapter is intended to apply to the design, installation, and operation of liquefied natural gas (LNG) dispensing systems, the design and installation of LNG engine fuel systems on vehicles of all types and their associated fueling facilities, and the construction and operation of equipment for the storage, handling, and transportation of LNG.

(b) This chapter shall [does] not apply to:

(1) locomotives, railcar tenders, marine terminals; [, or to]

(2) the transportation, loading, or unloading of LNG on ships, barges, or other types of watercraft which are subject to the American Boat and Yacht Council and any other applicable standards; [, or to]

(3) any fuel cell approved by the Federal Aviation Administration and intended to be used solely as a fuel cell for aircraft, including hot air balloons; [, or to]

(4) an installation or connection that is part of a distribution or pipeline system that is covered by Title 49, Code of Federal Regulations, Part 192;[.]

(5) [From the point at which] LNG in a system that has been vaporized and converted to compressed natural gas (CNG), in which case the equipment and components must comply with the Commission's Regulations for Compressed Natural Gas in Chapter 13 of this title (relating to Regulations for Compressed Natural Gas (CNG)); and[.]

(6) liquefaction plants under the jurisdiction of DOT and the requirements of Chapter 8 of this title (relating to Pipeline Safety Regulations).

(c) [(b)] If any term, clause, or provision of these rules is for any reason declared invalid, the remainder of the provisions shall remain in full force and effect, and shall in no way be affected, impaired, or invalidated.

(d) [(c)] Nothing in these rules shall be construed as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring licensure.

(e) [(d)] Unless otherwise stated, the rules in this chapter are not retroactive. Any installation of an LNG system, containers, and equipment shall meet the requirements of this chapter at the time of installation[; however, the Railroad Commission of Texas has jurisdiction over all LNG installations in Texas and installations placed into operation after October 1, 1996, shall comply with this chapter. All other LNG installations in operation prior to October 1, 1996, shall be maintained and operated in a safe manner as determined by the Railroad Commission of Texas. Persons engaged in LNG activities on the effective date of this chapter shall comply with licensing and examination requirements by February 1, 1997].

(f) [(e)] This chapter [The requirements of 16 TAC Chapter 14] shall not apply to vehicles and fuel supply containers that:

(1) are manufactured or installed by original equipment manufacturers; and

(2) comply with Title 49, Code of Federal Regulations, the Federal Motor Vehicle Safety Standards.[; and]

[(3) comply with the National Fire Protection Association (NFPA) Code 57, Liquefied Natural Gas (LNG) Fuel Systems Code.]

(g) [(f)] Vehicles and fuel supply containers excluded from the requirements of this chapter pursuant to subsection (f) [(e)] of this section shall comply with the requirements of §14.2046 of this title[,] (relating to [Filings Required for] School Bus, Public Transportation, Mass Transit and Special Transit Vehicle Installations and Inspections) [Vehicles].

§14.2007.Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise.

(1) AFS [AED]--The Commission's Alternative Fuels Safety department within the Commission's Oversight and Safety [Energy] Division.

[(2) AFRED--The organizational unit of the AED that administers the Commission's alternative fuels research and education program, including LNG certification, exempt registration, and training.]

(2) [(3)] Aggregate water capacity (AWC)--The sum of all individual container capacities as measured by weight or volume of water which are placed at a single installation location [when the containers in a battery at an installation are full].

(3) [(4)] ANSI--American National Standards Institute.

(4) [(5)] API--American Petroleum Institute.

(5) [(6)] ASME--American Society of Mechanical Engineers.

(6) [(7)] ASME Code--The American Society of Mechanical Engineers Boiler and Pressure Vessel Code, Section I, Section IV, Section VIII, and Section IX.

(7) [(8)] Automatic fuel dispenser--A fuel dispenser which requires transaction authorization.

(8) Certificate holder--An individual who has passed the required management-level or employee-level examination pursuant to §14.2019 of this title (relating to Examination Requirements and Renewals) and paid the applicable fees.

[(9) Branch manager--See "Operations supervisor."]

(9) [(10)] Certified--An individual who is authorized by the Commission [Authorized] to perform the LNG activities covered by the certification issued under §14.2019 of this title [under the direction of a licensee as set forth in the Texas Natural Resources Code. Certification alone does not allow an employee to perform those activities which require licensing].

(10) [(11)] Combustible material--A solid material which, in the form in which it is used and under the conditions anticipated, can be ignited and will burn, support combustion, or release flammable vapors when subjected to fire or heat.

(11) [(12)] Commercial installation--An LNG equipment installation located on premises other than a single-family dwelling used primarily as a residence.

(12) [(13)] Commission--The Railroad Commission of Texas.

(13) [(14)] Company representative--The individual [An owner or employee of a licensee] designated to the Commission by a license applicant or a [by that] licensee as the principal individual in authority [to take any required examinations] and actively supervising the conduct of the licensee's LNG activities [to actively supervise LNG operations of the licensee].

(14) [(15)] Container--Any LNG vessel manufactured to the applicable sections of the API Code, ASME Code, or DOT requirements in effect at the time of manufacture.

(15) [(16)] Container appurtenances--Components installed in container openings, including but not limited to pressure relief devices, shutoff valves, backflow check valves, excess flow check valves, internal valves, liquid level gauges, pressure gauges, and plugs.

(16) [(17)] Conversion--The changes made to a vehicle to allow it to use LNG as a motor fuel.

[(18) Design pressure--The pressure for which a system or portion of that system is designed.]

(17) [(19)] Dike--A structure used to establish an impounding area.

(18) [(20)] Director--The director of AFS [the AED] or the director's delegate.

(19) [(21)] Dispensing system--That combination of valves, meters, hoses, piping, electrical connections, and fuel connections used to distribute LNG to mobile or motor fuel containers.

(20) [(22)] DOT--The United States Department of Transportation.

(21) [(23)] Employee--Any individual who renders or performs any services or labor for compensation, including individuals hired on a part-time or temporary basis, full-time or permanent basis,[;] independent contractors,[;] and owner-employees.

[(24) Failsafe--Design features which provide for safe conditions in the event of a malfunction of control devices or an interruption of an energy source or an emergency shutdown.]

(22) [(25)] Final approval--The authority issued by AFS [LP-Gas Operations] allowing the introduction of LNG into a container and system.

(23) [(26)] Fired equipment--Any equipment in which the combustion of fuels takes place.

[(27) Fixed-length dip tube--A pipe with a fixed open end positioned inside a container at a designated elevation to measure a liquid level.]

(24) [(28)] Ignition source--Any item, substance, or event having adequate temperature and energy release of the type and magnitude sufficient to ignite any flammable mixture of gases or vapors that could occur at a site.

(25) [(29)] Impounding area--An area defined through the use of dikes or the topography at the site for the purpose of containing any accidental spill of LNG.

[(30) Individual--One human being. (See also "Person".)]

(26) [(31)] Interim approval order--The authority issued by the Railroad Commission of Texas following a public hearing allowing construction of an LNG installation.

(27) [(32)] Labeled--The attachment to equipment or materials of a label, symbol, or other identifying mark of a nationally recognized testing laboratory or a Category 50 licensee which conducts product evaluation, periodically inspects production of listed equipment or materials, and which publishes its findings in a list indicating that the equipment either meets appropriate standards or has been tested and found suitable for use in a specified manner.

[(33) LFL--Lower flammability limit.]

(28) [(34)] Licensed--Authorized by the Commission to perform LNG activities through the issuance of a valid license by AFS [LP-Gas Operations].

(29) [(35)] Licensee--A person which has applied for and [An applicant that has] been granted an LNG license by the Commission [LP-Gas Operations].

[(36) Listed--The inclusion of equipment or materials in a list published by a nationally recognized testing laboratory or a Category 50 licensee which conducts product evaluation, periodically inspects production of listed equipment or materials, and whose listing states either that the equipment or material meets appropriate standards or has been tested and found suitable for use in a specified manner.]

(30) [(37)]) LNG--Natural gas, consisting primarily of methane in liquid or semisolid state [, that has been condensed to liquid by cooling].

(31) [(38)] LNG system--A system of safety devices, containers, piping, fittings, valves, regulators, and other LNG equipment intended for use or used with a motor vehicle fueled by LNG and any system or other facilities designed to be used or used [installed at a facility or on a vehicle and designed for use] in the sale, storage, transportation for delivery, or distribution of LNG.

(32) [(39)] LNG transport--Any vehicle or combination of vehicles and LNG containers designed or adapted for use or used principally as a means of moving or delivering LNG from one place to another, including but not limited to any truck, trailer, semi-trailer, cargo tank, or other vehicle used in the distribution of LNG.

[(40) LP-Gas Operations--The organizational unit of the AED that administers the LNG safety program, including licensing, truck registration, installation approvals, complaint and accident investigations, inspections of stationary installations and vehicles, and code enforcement.]

(33) [(41)] Mass transit vehicle--Any vehicle which is owned or operated by a political subdivision of a state, city, or county, and which is used primarily in the conveyance of the general public.

(34) [(42)] Maximum allowable working pressure--The maximum gauge pressure permissible at the top of completed equipment, containers, or vessels in their operating position for a design temperature.

(35) [(43)] Mobile fuel container--An LNG container mounted on a vehicle [and used] to store LNG as the fuel supply for uses other than the engine to propel the vehicle, including use in an auxiliary engine [motor fuel].

(36) [(44)] Mobile fuel system--An LNG system to supply natural gas fuel to an auxiliary engine other than the engine used to propel the vehicle or for other uses on the vehicle.

(37) [(45)] Motor fuel container--An LNG container mounted on a vehicle and used to store LNG as the fuel supply to an engine used to propel the vehicle.

(38) [(46)] Motor fuel system--An LNG system to supply natural gas [LNG] as a fuel for an engine used to propel the vehicle.

(39) [(47)] NEC--National Electrical Code (NFPA 70).

(40) [(48)] NFPA--National Fire Protection Association.

(41) [(49)] Noncombustible material--A solid material which in no conceivable form or combination with other material will ignite.

[(50) Nonlicensee--A person not required to be licensed, but which shall comply with all other applicable rules in this chapter.]

(42) [(51)] Operations supervisor--An individual who is certified by the Commission to actively supervise a licensee's LNG activities and who is authorized by the licensee to implement operational changes [supervises LNG operations at an outlet].

(43) [(52)] Outlet--A site operated by an LNG licensee from which any regulated LNG activity is performed [at which the business conducted materially duplicates the operation for which the licensee is initially granted a license].

(44) [(53)] Person--An individual, [sole proprietor,] partnership, firm, joint venture, corporation, association, or any other business entity, a state agency or institution, county, municipality, school district, [or] other governmental subdivision, or licensee.

(45) [(54)] Point of transfer--The point at which a connection is made to transfer LNG from one container to another.

(46) [(55)] Pressure relief device [valve]--A device, including a pressure relief valve, which is designed both to open automatically to prevent a continued rise of internal fluid pressure in excess of a specified value (set pressure) and to close when the internal fluid pressure is reduced below the set pressure.

(47) [(56)] Pressure vessel--A container or other component designed in accordance with the ASMECode.

(48) [(57)] Property line--The [That] boundary which designates the point at which one real property interest ends and another begins.

(49) [(58)] PSIG--Pounds persquare inch gauge.

(50) [(59)] Public transportation vehicle--A vehicle for hire to transport persons, [or service to the general public] including but not limited to taxis, buses (excluding school buses, mass transit or special transit vehicles), and airport courtesy cars.

(51) Pullaway--The accidental separation of a hose from a cylinder, container, transfer equipment, or dispensing equipment, which could occur on a cylinder, container, transfer equipment, or dispensing equipment whether or not they are protected by a pullaway or breakaway device.

(52) Registered manufacturer--A person who has applied for and been granted a registration to manufacture LNG containers by the Commission.

(53) [(60)] Repair to container--The correction of damage or deterioration to an LNG container, the alteration of the structure of such a container, or the welding on such a container in a manner which causes the temperature of the container to rise above 400 degrees Fahrenheit.

(54) Rules examination--The Commission's written examination that measures an examinee's working knowledge of Texas Natural Resources Code, Chapter 116, and the rules in this chapter.

(55) [(61)] School--A public or private institution which has been accredited through the Texas Education Agency or the Texas Private School Accreditation Commission.

(56) [(62)] School bus--A vehicle that is sold or used for purposes that include carrying students to and from school or related events.

(57) [(63)] Special transit vehicle--A vehicle designed with limited passenger capacity which is primarily used by a [school or] mass transit authority for special transit purposes such as transport of mobility impaired individuals.

(58) [(64)] Temporary installation--A stationary installation at which LNG activities are performed for 12 months or less pursuant to §14.2043 of this title (relating to Temporary Installations) [dispensing station, either skid-mounted or on a transport unit, that is intended to be used for a finite period of time].

[(65) Tentative approval--The authority issued by LP-Gas Operations without a hearing allowing construction of an LNG installation.]

[(66) Thermal expansion relief valve--A pressure relief valve that is activated by pressure created by a fluid temperature rise.]

(59) [(67)] Trainee--An individual who has not yet taken and passed an employee-level rules examination [employed by a licensee for a period not to exceed 45 days without that individual having successfully completed the required examinations for the LNG activities to be performed].

(60) [(68)] Transfer area--That portion of an LNG refueling station where LNG is introduced into or dispensed from a stationary installation.

(61) [(69)] Transfer system--All piping, fittings, valves, pumps, meters, hoses, bulkheads, and equipment used in transferring LNG between containers.

[(70) Transition joint--A connector fabricated of two or more metals used to join piping sections of two different materials.]

(62) [(71)] Transport--Any container built in accordance with ASME or DOT specifications and used to transport LNG for delivery [bobtail or semi-trailer equipped with one or more containers].

(63) [(72)] Transport system--Any and all piping, fittings, valves, and equipment on a transport, excluding the container.

(64) [(73)] Ultimate consumer--The person controlling LNG immediately prior to its ignition.

[(74) Vaporizer--A device other than a container that receives LNG in liquid form and adds sufficient heat to convert the liquid to a gaseous state.]

(65) [(75)] Water capacity--The amount of water in gallons required to fill a container.

§14.2010.LNG [Report] Forms.

Forms required to be filed with AFS shall be those prescribed by the Commission. A complete set of all required forms shall be posted on the Commission's web site. Notice of any new or amended forms shall be issued by the Commission. Any form filed with the Commission shall be completed in its entirety. A person may file the prescribed form on paper or use any electronic filing process. The Commission may at its discretion accept an earlier version of a prescribed form, provided that it contains all required information. [Under the provisions of the Texas Natural Resources Code, Chapter 116, the Commission has designated the following forms for use.]

[Figure: 16 TAC §14.2010]

§14.2013.License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations, and Renewals.[Licenses and Fees.]

(a) A prospective licensee may apply to AFS [LP-Gas Operations] for one or more licenses specified in subsection (b)(1) - (8) of this section. A prospective container manufacturer may apply to AFS for a container manufacturer registration specified in subsection (d) of this section. Fees required to be paid shall be those established by the Commission and in effect at the time of application [licensing] or renewal and shall be paid at the time of application or renewal.

(b) The license categories and fees are as follows:

(1) A Category 15 license for container assembly and repair [manufacturers and/or fabricators] authorizes the [manufacture, fabrication,] assembly, repair, installation, subframing, testing, and sale of LNG containers, including LNG motor or mobile fuel containers and systems, and the repair and installation of transport and transfer systems [for use in Texas]. The original license fee is $1,000; the renewal fee is $600.

(2) A Category 20 license for transport outfitters authorizes the subframing, testing, and sale of LNG transport containers; the testing of LNG storage containers; the installation, testing, and sale of LNG motor or mobile fuel containers and systems; and the installation and repair of transport systems and motor or mobile fuel systems [for use in Texas]. The original license fee is $400; the renewal fee is $200.

(3) A Category 25 license for carriers authorizes the transportation of LNG by transport, including the loading and unloading of LNG. The original license fee is $1,000; the renewal fee is $300.

(4) A Category 30 license for general installers and repairmen authorizes the sale, repair, service, and installation of stationary containers and LNG systems. The original license fee is $100; the renewal fee is $70.

(5) A Category 35 license for retail and wholesale dealers authorizes the storage, sale, transportation, and distribution of LNG and all other activities included in this section, except the manufacture, fabrication, assembly, repair, subframing, and testing of LNG containers. The original license fee is $750; the renewal fee is $300.

(6) A Category 40 license for general public dispensing stations authorizes the storage, sale, and dispensing of LNG into motor and mobile fuel containers. The original license fee is $150; the renewal fee is $70.

(7) A Category 45 license for engine and mobile [motor] fuel authorizes the sale and installation of LNG motor or mobile fuel containers, and the sale, repair, and installation of LNG motor or mobile fuel systems. The original license fee is $100; the renewal fee is $50.

(8) A Category 50 license for testing laboratories authorizes the testing of LNG containers, LNG motor fuel systems or mobile fuel systems, transfer systems, and transport systems for the purpose of determining the safety of the containers or systems for LNG service, including the necessary installation, disconnection, reconnection, testing, and repair of LNG motor fuel systems or mobile fuel systems, transfer systems, and transport systems involved in the testing of containers. The original license fee is $200; the renewal fee is $100.

[(c) An original manufacturer of a new motor vehicle powered by LNG, or a subcontractor of a manufacturer who produces a new LNG powered motor vehicle for the manufacturer, is not subject to the licensing requirements of this title, but shall comply with all other rules in this chapter.]

[(d) Public or private entities performing LNG activities for their own vehicles are not required to be licensed. Public or private entities performing any LNG activities for the general public are required to be licensed.]

(c) [(e)] A military service member, military veteran, or military spouse shall be exempt from the original license fee specified in subsection (b) of this section pursuant to the requirements in §14.2015 [§14.2014] of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from renewal or transport registration fees specified in §14.2014 [§14.2016] and §14.2704 of this title (relating to Application for License or Manufacturer Registration (New and Renewal) [Licensing Requirements]; and Registration and Transfer of LNG Transports), respectively[)].

(d) A container manufacturer registration authorizes the manufacture, assembly, repair, testing and sale of LNG containers. An original registration fee is $1,000; the renewal fee is $600.

§14.2014.Application for License or Manufacturer Registration (New and Renewal).

(a) No person may engage in any LNG activities until that person has obtained a license from the Commission authorizing the LNG activities, except as follows:

(1) A state agency or institution, county, municipality, school district, or other governmental subdivision is exempt from licensing requirements as provided in Texas Natural Resources Code, §116.031(d) if the entity is performing LNG activities on its own behalf but is required to obtain a license to perform LNG activities for or on behalf of a second party.

(2) An original manufacturer of a new motor vehicle powered by LNG, or a subcontractor of a manufacturer who produces a new LNG powered motor vehicle for the manufacturer is not subject to the licensing requirements of this chapter, but shall comply with all other rules in this chapter.

(3) An ultimate consumer is not subject to the licensing requirements of this chapter in order to perform those LNG activities dealing only with the ultimate consumer; however, a license is required to register a transport or cylinder delivery unit. An ultimate consumer's license does not require a fee or a company representative.

(b) An applicant for license shall not engage in LNG activities until it has employed a company representative who meets the requirements of §14.2025 of this title (relating to Designation and Responsibilities of Company Representatives and Operations Supervisors).

(c) Licensees, registered manufacturers, company representatives, and operations supervisors at each outlet shall have copies of all current licenses and/or manufacturer registration certificates and certification cards for employees at that location available for inspection during regular business hours. In addition, licensees and registered manufacturers shall maintain a current version of the rules in this chapter and any adopted codes covering LNG activities performed by the licensee or manufacturer, and shall provide at least one copy of all publications to each company representative and operations supervisor. The copies shall be available to employees during business hours.

(d) Licenses and manufacturer registrations issued under this chapter expire one year after issuance at midnight on the last day of the month prior to the month in which they are issued.

(e) If a license or registration expires, the person shall immediately cease LNG activities.

(f) Applicants for a new license shall file with AFS:

(1) a properly completed LNG Form 2001 listing all names under which LNG-related activities requiring licensing are to be conducted and the applicant's properly qualified company representative, and the following forms or documents as applicable:

(A) LNG Form 2001A if the applicant will operate any outlets pursuant to subsection (g) of this section;

(B) LNG Form 2007 and any information requested in §14.2704 of this title (relating to Registration and Transfer of LNG Transports) if the applicant intends to register any LNG transports;

(C) LNG Form 2019 if the applicant will be transferring the operation of an existing storage or retail facilities;

(D) any form required to comply with §14.2031 of this title (relating to Insurance Requirements);

(E) a copy of current certificate of account status if required by §14.2028 of this title (relating to Franchise Tax Certification and Assumed Name Certificates); and/or

(F) copies of the assumed name certificates if required by §14.2028 of this title; and

(2) payment for all applicable fees.

(A) If the applicant submits the payment by mail, the payment shall be in the form of a check, money order or printed copy of an online receipts.

(B) If the applicant pays the applicable fee online, the applicant shall submit a copy of an online payment receipt via mail, email or fax.

(g) A licensee shall submit LNG Form 2001A listing all outlets operated by the licensee.

(1) Each outlet shall employ an operations supervisor who meets the requirements of §14.2025 of this title.

(2) Each outlet shall be listed on the licensee's renewal specified in subsection (j) of this section.

(h) Beginning February 15, 2021, a prospective container manufacturer may apply to AFS to manufacture LNG containers in the state of Texas. Beginning February 15, 2021, a person shall not engage in the manufacture of LNG containers in this state unless that person has obtained a container manufacturer's registration as specified in this subsection.

(1) Applicants for container manufacturer registration shall file with AFS LNG Form 2001M, and the following forms or documents as applicable:

(A) any form required by §14.2031 of this title;

(B) a copy of current certificate of account status if required by §14.2028 of this title;

(C) copies of the assumed name certificates if required by §14.2028 of this title;

(D) a copy of current DOT authorization. A registered manufacturer shall not continue to operate after the expiration date of the DOT authorization; and/or

(E) a copy of current ASME Code, Section VIII certificate of authorization or "R" certificate. If ASME is unable to issue a renewed certificate of authorization prior to the expiration date, the manufacturer may request in writing an extension of time not to exceed 60 calendar days past the expiration date. The request for extension shall be received by AFS prior to the expiration date of the ASME certificate of authorization referred to in this section, and shall include a letter or statement from ASME that the agency is unable to issue the renewal certificate of authorization prior to expiration and that a temporary extension will be granted for its purposes. A registered manufacturer shall not continue to operate after the expiration date of an ASME certificate of authorization until the manufacturer files a current ASME certificate of authorization with AFS or AFS grants a temporary exception.

(2) By filing LNG Form 2001M, the applicant certifies that it has read the requirements of this chapter and shall comply with all applicable rules, regulations and adopted standards.

(3) The required fee shall accompany LNG Form 2001M. An original registration fee is $1,000; the renewal fee is $600.

(A) If submitted by mail, payment shall be by check, money order, or printed copy of an online receipt.

(B) If submitted by email or fax, payment shall be a copy of an online receipt.

(4) If a manufacturer registration expires or lapses, the person shall immediately cease the manufacture, assembly, repair, testing and sale of LNG containers in Texas.

(i) AFS will review an application for license or registration to verify all requirements have been met.

(1) If errors are found or information is missing in the application or other documents, AFS will notify the applicant of the deficiencies in writing.

(2) The applicant must respond with the required information and/or documentation within 30 days of the written notice. Failure to respond by the deadline will result in withdrawal of the application.

(3) If all requirements have been met AFS will issue the license or manufacturer registration and send the license or registration to licensee or manufacturer, as applicable.

(j) For license and manufacturer registration renewals:

(1) AFS shall notify the licensee or registered manufacturer in writing at the address on file with AFS of the impending license or manufacturer registration expiration at least 30 calendar days before the date the license or registration is scheduled to expire.

(2) The renewal notice shall include copies of applicable LNG Forms 2001, 2001A, and 2007 or LNG Form 2001M showing the information currently on file.

(3) The licensee or registered manufacturer shall review and return all renewal documentation to AFS with any necessary changes clearly marked on the forms. The licensee or registered manufacturer shall submit any applicable fees with the renewal documentation.

(4) Failure to meet the renewal deadline set forth in this section shall result in expiration of the license or manufacturer registration.

(5) If a person's license or manufacturer registration expires, that person shall immediately cease performance of any LNG activities authorized by the license or registration.

(6) If a person's license or manufacturer registration has been expired for 90 calendar days or fewer, the person shall submit a renewal fee that is equal to 1 1/2 times the renewal fee in §14.2013 of this title (relating to License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations and Renewals).

(7) If a person's license or manufacturer registration has been expired for more than 90 calendar days but less than one year, the person shall submit a renewal fee that is equal to two times the renewal fee.

(8) If a person's license or manufacturer registration has been expired for one year or more, that person shall not renew, but shall comply with the requirements for issuance of an original license or manufacturer registration under this section and §14.2013 of this title.

(9) After verification that the licensee or registered manufacturer has met all requirements for licensing or manufacturer registration, AFS shall renew the license or registration and send the applicable authorization to the licensee or manufacturer.

(k) Applicants for license or license renewal in the following categories shall comply with these additional requirements:

(1) An applicant for a Category 20 or 50 license or renewal shall file with AFS a completed LNG Form 2505, certifying that the applicant will follow the testing procedures indicated. LNG Form 2505 shall be signed by the appropriate LNG company representative designated on the licensee's LNG Form 2001.

(2) An applicant for Category 15, 20, or 50 license or renewal who tests tanks, subframes LNG cargo tanks, or performs other activities requiring DOT registration shall file with AFS a copy of any applicable current DOT registrations. Such registration shall comply with Title, 40 Code of Federal Regulations, Part 107 (Hazardous Materials Program Procedures), Subpart F (Registration of Cargo Tank and Cargo Tank Motor Vehicle Manufacturers and Repairers and Cargo Tank Motor Vehicle Assemblers).

§14.2015.Military Fee Exemption.

(a) This section applies to military service members, military veterans, or military spouses, as those terms are defined in Texas Occupations Code, Chapter 55.

(b) The Commission shall waive license and examination fees for:

(1) a military service member or military veteran whose service, training, or education meets the Commission's licensing or certification requirements in this chapter; or

(2) a military service member, military veteran, or military spouse who holds a current license issued by another jurisdiction with licensing requirements substantially equivalent to the Commission's licensing requirements in this chapter.

(c) To receive a military fee exemption, an applicant for a fee exemption shall file with the Commission LNG Form 2035 and any documentation required by this subsection.

(1) A military service member or military veteran whose service, training, or education meets the Commission's requirements for licensing or certification shall submit the following documentation with LNG Form 2035:

(A) a copy of any military records showing the applicant's dates of service;

(B) a copy of the applicant's driver's license or state-issued identification card; and either

(C) any military service history for the applicant showing that LNG activities were performed, including a description of the types of LNG activities that were performed; or

(D) any military LNG training or education the applicant received, including a description of the types of LNG activities the training or education covered.

(2) A military service member or military veteran who holds a current license issued by another jurisdiction with licensing requirements substantially equivalent to the Commission's requirements in this chapter shall submit the following documentation with LNG Form 2035:

(A) a copy of the license issued by the named jurisdiction;

(B) a description of the types of LNG activities that were performed under the license;

(C) a copy of any military records showing the applicant's dates of service; and

(D) a copy of the applicant's driver's license or state-issued identification card.

(3) A military spouse who holds a current license issued by another jurisdiction with licensing requirements substantially equivalent to the Commission's requirements in this chapter shall submit the following documentation with LNG Form 2035:

(A) a copy of the license issued by the named jurisdiction;

(B) a description of the types of LNG activities that were performed under the license;

(C) a copy of the applicant's driver's license or state-issued identification card;

(D) a copy of the military service member's military records, including dates of service; and

(E) a copy of a valid marriage license between the applicant and the individual listed on the military records.

(d) The Commission shall review LNG Form 2035 and required documentation to determine if the requirements for the fee exemption have been met and shall notify the applicant of the determination in writing within 30 days.

(1) If all requirements have been met, the applicant may submit the application for license or examination and attach a copy of the written notice granting military fee exemption with the application to serve as notice of payment.

(2) If the Commission has notified the applicant that the application is incomplete, the applicant shall provide any requested information or documentation within 30 days of the date of the notice.

(e) A military service member, military veteran, or military spouse who receives a military fee exemption is not exempt from, and may not use this section to circumvent, the requirements in this chapter to obtain a license or become certified by examination; license or certification renewal requirements; or any transport registration requirements or fees.

§14.2016.Penalty Guidelines and Enforcement.

(a) Penalty guidelines for LNG safety violations.

(1) Policy. Improved safety and environmental protection are the desired outcomes of any enforcement action. Encouraging licensees, certificate holders and registered manufacturers to take appropriate voluntary corrective and future protective actions once a violation has occurred is an effective component of the enforcement process. Deterrence of violations through penalty assessments is also a necessary and effective component of the enforcement process. A rule-based enforcement penalty guideline to evaluate and rank LNG-related violations is consistent with the central goal of the Commission's enforcement efforts to promote compliance. Penalty guidelines set forth in this section will provide a framework for more uniform and equitable assessment of penalties throughout the state, while also enhancing the integrity of the Commission's enforcement program.

(2) Guidelines. This section complies with the requirements of Texas Natural Resources Code, §81.0531. The penalty amounts contained in the tables in this section are provided solely as guidelines to be considered by the Commission in determining the amount of administrative penalties for violations of Texas Natural Resources Code, Chapter 116; of rules, orders, licenses, registrations, permits, or certificates relating to LNG safety adopted under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference.

(3) Commission authority. The establishment of these penalty guidelines shall in no way limit the Commission's authority and discretion to assess administrative penalties. The typical minimum penalties listed in this section are for the most common violations cited; however, this is neither an exclusive nor an exhaustive list of violations that the Commission may cite. The Commission retains full authority and discretion to cite violations of Texas Natural Resources Code, Chapter 116; of rules, orders, licenses, registrations, permits, or certificates relating to LNG safety adopted or issued under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference, and to assess administrative penalties in any amount up to the statutory maximum when warranted by the facts in any case, regardless of inclusion in or omission from this section.

(4) Factors considered. The amount of any penalty requested, recommended, or finally assessed in an enforcement action will be determined on an individual case-by-case basis for each violation, taking into consideration the following factors:

(A) the person's history of previous violations;

(B) the seriousness of the previous violations;

(C) any hazard to the health or safety of the public; and

(D) the demonstrated good faith of the person charged.

(5) Typical penalties. Regardless of the method by which the typical penalty amount is calculated, the total penalty amount will be within the statutory limit. Typical penalties for violations of Texas Natural Resources Code, Chapter 116; of rules, orders, licenses, registrations, permits, or certificates relating to LNG safety adopted under those provisions; and of regulations, codes, or standards that the Commission has adopted by reference, are set forth in Table 1.

Figure: 16 TAC §14.2016(a)(5) (.pdf)

(6) Penalty enhancements for certain violations. For violations that involve threatened or actual safety hazards, or that result from the reckless or intentional conduct of the person charged, the Commission may assess an enhancement of the typical penalty. The enhancement may be in any amount in the range shown for each type of violation, as shown in Table 2.

Figure: 16 TAC §14.2016(a)(6) (.pdf)

(7) Penalty enhancements for certain violators. For violations in which the person charged has a history of prior violations within seven years of the current enforcement action, the Commission may assess an enhancement based on either the number of prior violations or the total amount of previous administrative penalties, but not both. The actual amount of any penalty enhancement will be determined on an individual case-by-case basis for each violation. The guidelines in Tables 3 and 4 are intended to be used separately. Either guideline may be used where applicable, but not both.

Figure 1: 16 TAC §14.2016(a)(7) (.pdf)

Figure 2: 16 TAC §14.2016(a)(7) (.pdf)

(8) Penalty reduction for settlement before hearing. The recommended monetary penalty for a violation may be reduced by up to 50% if the person charged agrees to a settlement before the Commission conducts an administrative hearing to prosecute a violation. Once the hearing is convened, the opportunity for the person charged to reduce the basic monetary penalty is no longer available. The reduction applies to the basic penalty amount requested and not to any requested enhancements.

(9) Demonstrated good faith. In determining the total amount of any monetary penalty requested, recommended, or finally assessed in an enforcement action, the Commission may consider, on an individual case-by-case basis for each violation, the demonstrated good faith of the person charged. Demonstrated good faith includes, but is not limited to, actions taken by the person charged before the filing of an enforcement action to remedy, in whole or in part, a violation or to mitigate the consequences of a violation.

(10) Other sanctions. Depending upon the nature of and the consequences resulting from a violation of the rules in this chapter, the Commission may impose a non-monetary penalty, such as requiring attendance at a safety training course, or may issue a warning.

(11) Penalty calculation worksheet. The penalty calculation worksheet shown in Table 5 lists the typical penalty amounts for certain violations; the circumstances justifying enhancements of a penalty and the amount of the enhancement; and the circumstances justifying a reduction in a penalty and the amount of the reduction.

Figure: 16 TAC §14.2016(a)(11) (.pdf)

(b) Denial, suspension, or revocation of licenses, manufacturer registrations, or certificates.

(1) The Commission may deny, suspend, or revoke a license, manufacturer registration, or certificate for any person who fails to comply with this chapter.

(A) If AFS determines that an applicant for license, manufacturer registration, certificate, or renewal has not met the requirements of this chapter, AFS shall notify the applicant in writing of the reasons for the proposed denial. In the case of an applicant for license, manufacturer registration, or certificate, the notice shall advise the person that the application may be resubmitted within 30 calendar days of receipt of the denial with all cited deficiencies corrected, or, if the person disagrees with AFS=determination, that person may request in writing a hearing on the matter within 30 calendar days of receipt of the notice of denial.

(B) If a person resubmits the application within 30 calendar days of receipt of the denial with all deficiencies corrected, AFS shall issue the license, manufacturer registration, certificate, or renewal as applicable.

(2) Hearing regarding denial of license, manufacturer registration, certificate, or associated renewals.

(A) An applicant receiving a notice of denial may request a hearing to determine whether the applicant did comply in all respects with the requirements for the license, registration, or certificate sought. The request for hearing shall be in writing, shall refer to the specific requirements the applicant claims were met, and shall be submitted to AFS within 30 calendar days of the applicant's receipt of the notification of denial.

(B) Upon receipt of a request complying with this paragraph, AFS shall forward the request for a hearing to the Hearings Division for the purpose of scheduling a hearing.

(C) If, after hearing, the Commission finds the applicant's claim has been supported, the Commission may issue an order approving the license, manufacturer registration, or certificate and AFS shall issue the license, manufacturer registration, certificate, or associated renewal if applicable.

(D) If, after hearing, the Commission finds that the applicant does not comply with the requirements of this chapter the Commission may issue an order denying the application or renewal.

(3) Alleged violations and notice of non-compliance.

(A) If AFS finds by means including, but not limited to, inspection, review of required documents submitted, or complaint by a member of the general public or any other person, a probable or actual violation of or noncompliance with Texas Natural Resources Code, Chapter 116, or the rules in this chapter, AFS shall notify the licensee, registered manufacturer, or certified person of the alleged violation or noncompliance in writing.

(B) The notice shall specify the acts, omissions, or conduct constituting the alleged violation or noncompliance and shall designate a date not less than 30 calendar days or more than 45 calendar days after the licensee, registered manufacturer, or certified person receives the notice by which the violation or noncompliance shall be corrected or discontinued. If AFS determines the violation or noncompliance may pose imminent peril to the health, safety, or welfare of the general public, AFS may notify the licensee, registered manufacturer, or certified person orally with instruction to immediately cease the violation or noncompliance. When oral notice is given, AFS shall follow it with written notification no later than five business days after the oral notification.

(C) The licensee, registered manufacturer, or certified person shall either report the correction or discontinuance of the violation or noncompliance within the time frame specified in the notice or shall request an extension of time in which to comply. The request for extension of the time to comply shall be received by AFS within the same time frame specified in the notice for correction or discontinuance.

(4) Hearing regarding suspension or revocation of licenses, manufacturer registrations, and certificates. If a licensee, registered manufacturer, or certified person disagrees with the determination of AFS under this subsection, that person may request a public hearing on the matter as specified in Chapter 1 of this title (relating to Practice and Procedure). The request shall be in writing, shall refer to the specific rules or statutes the licensee, registered manufacturer, or certified person claims to have complied with, and shall be received by AFS within 30 calendar days of the person's receipt of the notice of violation or noncompliance. AFS shall forward the request for hearing to the Hearings Division.

§14.2019.Examination [Certification ] Requirements and Renewals.

(a) Requirements and application for a new certificate. [This section applies to all licensees and their employees who perform LNG activities, and to any ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined by this chapter as an LNG transport, including any employee of such ultimate consumer if that employee drives or in any way operates such an LNG transport. Only paragraph (2) of this subsection applies to an employee of a state agency or institution, county, municipality, school district, or other governmental subdivision. Driving a motor vehicle powered by LNG or fueling of motor vehicles for an ultimate consumer by the ultimate consumer or its employees do not in themselves constitute LNG activities.]

(1) In addition to NFPA 52 §§4.1 and 4.2 and 59A §14.9, no person shall perform work, directly supervise LNG activities, [No individual may work] or be employed in any capacity requiring [which requires] contact with LNG unless that individual: [or LNG systems until that individual has submitted to and passed an examination measuring the competence of that individual to perform the LNG activities anticipated and the individual's working knowledge of the Texas Natural Resources Code and the rules in this chapter related to the type of LNG work anticipated. Table 1 of this section specifies which requirements, indicated with an asterisk, apply to each category of license.]

(A) is a certificate holder who is in compliance with renewal requirements in subsection (g) of this section and is employed by a licensee; or

(B) is a trainee who complies with subsection (f) of this section.

(2) Any person transporting LNG on a public roadway must be properly certified, even if the unit is operated by an ultimate consumer [Each individual who performs LNG activities as an employee of an ultimate consumer or a state agency, county, municipality, school district, or other governmental subdivision shall be properly supervised by his or her employer. Any such individual who is not certified by AFRED to perform such LNG activities shall be properly trained by a competent person in the safe performance of such LNG activities].

(b) Rules examination

(1) An individual who passes the applicable rules examination with a score of at least 75% will become a certificate holder. AFS will send a certificate to the licensee listed on LNG Form 2016. If a licensee is not listed on the form, AFS will send the certificate to individual's personal address.

(A) Successful completion of any required examination shall be credited to the individual.

(B) An individual who has been issued a certificate shall make the certificate readily available and shall present it to any Commission employee or agent who requests proof of certification.

(2) [(3)] An applicant for [individual wishing to submit to] examination shall bring to the exam site:

(A) a completed [file] LNG Form 2016; and

(B) payment of the applicable fee specified in paragraph (3)(B) of this subsection [along with the appropriate fee listed in subsection (c) of this section with AFRED].

[Figure: 16 TAC §14.2019(a)(3)]

(3) [(4)] An individual who files [has filed] LNG Form 2016 and pays the applicable nonrefundable examination fee may take the rules examination [at the Commission's AFRED Training Center, 6506 Bolm Road, Austin, Texas, between the hours of 8:00 a.m. and 12:00 noon, Monday through Friday, except for state holidays, and at other designated times and locations around the state. Tuesdays and Thursdays are the preferred days for examinations at the AFRED Training Center].

(A) Dates and locations of available Commission LNG examinations may be obtained in the Austin offices of AFS [AFRED] and on the Commission's web site, and shall be updated at least monthly. Examinations may [shall] be conducted at the Commission's AFS Training Center in Austin between the hours of 8:00 a.m. and 12:00 noon, Monday through Friday, except for state holidays, and at other designated times and [in other] locations around the state. Individuals or companies may request in writing that examinations be given in their area. AFS [AFRED] shall schedule its examinations and locations at its discretion.

(B) Exam fees.

(i) The nonrefundable management-level rules examination fee is $70.

(ii) The nonrefundable employee-level rules examination fee is $40.

(iii) The nonrefundable examination fees shall be paid each time an individual takes an examination.

(iv) A military service member, military veteran, or military spouse shall be exempt from the examination fee pursuant to §14.2015 of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from renewal fees specified in subsection (g) of this section.

[(5)] [Within 15 days of the date an individual takes an examination, AFRED shall notify the individual of the results of the examination. The individual shall pass the rules examination with a score of at least 75%.]

[(A)] [If the examination is graded or reviewed by a testing service, AFRED shall notify the individual of the examination results within 14 days of the date AFRED receives the results from the testing service. If the notice of the examination results will be delayed for longer than 90 days after the examination date, AFRED shall notify the individual of the reason for the delay before the 90th day. AFRED may require a testing service to notify an individual of the individual's examination results.]

[(B)] [Successful completion of any required examination shall be credited to the individual. An individual who has been issued a certification card shall make the card readily available and shall present the card to any Commission employee or agent who requests proof of certification.]

[(C)] [Any individual who fails an examination shall be immediately disqualified from performing any LNG activities covered by that examination. If requested by an individual who failed the examination, AFRED shall furnish the individual with an analysis of the individual's performance on the examination. Any individual who fails an examination administered by AFRED at the Austin location only may retake the same examination one additional time during a business day. Any subsequent examination shall be taken on another business day, unless approved by the AFRED director.]

(C) [(6)] Time limits.

(i) [(A)] An [Effective June 1, 2008, an] applicant shall complete the examination within the time limits specified in this subparagraph.

(I) The employee-level LNG Delivery Truck Driver examination and the management-level Category 35 Retail and Wholesale Dealers examination shall be limited to [within ] three hours; and

(II) [shall complete] all other examinations shall be limited to [within] two hours.

(ii) [(B)] The examination proctor shall be the official timekeeper.

(iii) [(C)] An examinee shall submit the examination and the answer sheet to the examination proctor before or at the end of the established time limit for an examination.

(iv) [(D)] The examination proctor shall mark any answer sheet that was not completed within the time limit.

(D) Each individual who performs LNG activities as an employee of an ultimate consumer or a state agency, county, municipality, school district, or other governmental subdivision shall be properly supervised by his or her employer. Any such individual who is not certified by the Commission to perform LNG activities shall be properly trained by a competent person in the safe performance of such LNG activities.

(c) The following examinations are offered by the Commission.

(1) Employee‑level examinations:

(A) The Delivery Truck Driver examination qualifies an individual to operate a transport, load and unload LNG and connect and disconnect transfer hoses, and to perform all activities related to stationary LNG systems, including LNG containers, piping and equipment.

(B) The Service and Installation Technician examination qualifies an individual to perform all CNG activities related to stationary LNG systems, including LNG containers, piping and equipment. The Service and Installation examination does not authorize an individual to fill containers or operate an LNG transport.

(C) The Transport Truck Driver examination qualifies an individual to operate an LNG transport, to load and unload LNG, and connect and disconnect transfer hoses. The Transport Driver examination does not authorize an individual to install or repair transport systems.

(D) The Engine Fuel examination qualifies an individual to install LNG motor fuel containers and LNG motor fuel systems, and replace container valves on motorized vehicles licensed to operate on public roadways. The Engine Fuel examination does not authorize an individual to fill LNG motor fuel containers.

(E) The Motor/Mobile Fuel Filler examination qualifies an individual to inspect and fill motor or mobile fuel containers on vehicles, including recreational vehicles, cars, trucks, and buses. The Motor/Mobile Fuel Dispensing examination does not authorize an individual to fill stationary LNG containers.

(2) Management‑level examinations:

(A) Category 15 examination qualifies an individual to assemble, repair, install, test, and sell LNG containers, including LNG motor or mobile fuel containers and systems, and to repair transport and transfer systems for use in Texas.

(B) Category 20 examination qualifies an individual to subframe, test, and sell LNG transport containers, test LNG storage containers, install, test, and sell LNG motor or mobile fuel containers and systems, and install and repair transport systems and motor or mobile fuel systems for use in Texas.

(C) Category 25 examination qualifies an individual to transport LNG by transport, including the loading and unloading of LNG.

(D) Category 30 examination qualifies an individual to sell, repair, service, and install stationary containers and LNG systems.

(E) Category 35 examination qualifies an individual to store, sell, transport, and distribute LNG and all other activities included in this section except manufacture, fabrication, assembly, repair, subframing, and testing of LNG containers.

(F) Category 40 examination qualifies an individual to store, sell, and dispense LNG into motor‑ and mobile fuel containers.

(G) Category 45 qualifies an individual to sell and install LNG motor or mobile fuel containers, and sell, repair, and install LNG motor or mobile fuel systems.

(H) Category 50 qualifies an individual to test LNG containers, LNG motor fuel systems or mobile fuel systems, transfer systems, and transport systems for the purpose of determining the safety of the containers or systems for LNG service, including the necessary installation, disconnection, reconnection, testing, and repair of LNG motor fuel systems or mobile fuel systems, transfer systems and transport systems involved in the testing of containers.

(d) Within 15 calendar days of the date an individual takes an examination, AFS shall notify the individual of the results of the examination.

(1) If the examination is graded or reviewed by a testing service, AFS shall notify the individual of the examination results within 14 days of the date AFS receives the results from the testing service.

(2) If the notice of the examination results will be delayed for longer than 90 days after the examination date, AFS shall notify the individual of the reason for the delay before the 90th day. AFS may require a testing service to notify an individual of the individual's examination results.

(e) Failure of any examination shall immediately disqualify the individual from performing any LNG related activities covered by the examination which is failed, except for activities covered by a separate examination which the individual has passed.

(1) Any individual who fails an examination administered by the Commission, at the Austin location, may retake the same examination one additional time during a business day.

(2) Any subsequent examination shall be taken on another business day, unless approved by the AFS director.

(3) An individual who fails an examination may request an analysis of the individual's performance on the examination.

(f) Trainees.

(1) [(b)] A licensee or ultimate consumer [other than a political subdivision] may employ an individual as a trainee for a period not to exceed 45 calendar days without that individual having successfully completed the rules examination, as specified in subsection (b) of this section, subject to the following conditions:

(A) [(1)] In addition to NFPA 52 §4.2, the [The] trainee shall be directly and individually supervised at all times by an individual who has successfully completed the Commission's rules examination for the [those] areas of work being performed by the trainee.

(B) A trainee who has been in training for a total period of 45 days, in any combination and with any number of employers, shall cease to perform any LNG activities for which the trainee is not currently certified, until the trainee successfully completes the rules examination.

[(2) The licensee or ultimate consumer other than a political subdivision shall ensure that LNG Form 2016 is on file with AFRED for each trainee at the time the trainee begins supervised LNG activities. The trainee shall then have 45 calendar days to pass the applicable rules examination.]

(2) [(3)] A trainee who fails the rules examination shall immediately cease to perform any LNG activities covered by the examination failed.

[(4) A trainee who has been in training for a total of 45 days in any combination and with any number of employers shall cease to perform any LNG activities for which the trainee is not currently certified.]

[(5) Once a trainee has taken the rules examination, the training period shall cease and the individual shall perform no LNG activities which require certification until the individual is notified by AFRED that the individual passed the examination.]

[(c) The applicant shall pay to AFRED a $70 examination fee for each management-level examination and a $40 fee for each employee-level examination in advance of each required examination. Examination fees are nonrefundable. An applicant who fails an examination shall pay the full examination fee for each subsequent examination.]

(g) [(d)] Requirements for certificate holder renewal.

(1) In order to maintain active status, certificate holders shall renew their certificate annually as specified in this subsection.

(2) AFS [AFRED] shall notify licensees of any of their employees' pending renewal deadlines and [renewals, or] shall notify the individual if not employed by a licensee, in writing, at the address on file with AFS [AFRED] no later than March 15 of a year for the May 31 renewal date of that year.

(3) Certificate holders [To maintain active status, a certificate holder] shall pay the nonrefundable $25 annual certificate renewal fee to AFS [AFRED] on or before May 31 of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee.

(A) [(1)] Failure to pay the nonrefundable annual renewal fee by the [renewal] deadline shall result in a lapsed certificate [a lapse of certification unless the late filing fee in paragraph (2) of this subsection is paid. If an individual's certification has been expired for one year or longer, that individual shall comply with the requirements of subsection (a) of this section].

(i) To renew a lapsed certificate, the individual shall pay the nonrefundable $25 annual renewal fee plus a nonrefundable $20 late-filing fee. Failure to do so shall result in the expiration of the certificate.

(ii) If an individual's certificate [certification] lapses or expires, that individual shall immediately cease performance of any LNG activities authorized by the certificate [that require certification. An individual may regain certified status only by successfully completing the examination required for the certification and meeting the requirements of paragraph (2) of this section.]

(iii) If an individual's certificate has been expired for more than two years from May 31 of the year in which the certificate lapsed, that individual shall comply with the requirements of subsection (b) of this section.

(B) [(2) Any lapsed or expired renewals submitted after May 31 of each year shall include a $20 late-filing fee in addition to the renewal fee and proof of successful completion of the examination required for the certification no later than close of business on August 31 or, if August 31 falls on a weekend or state holiday, close of business on the last business day before August 31.] Upon receipt of the annual renewal fee and any late-filing fee, AFS shall verify that all applicable requirements have been met [renewal fee, late-filing penalty, and proof of successful completion of the examination required for the certification, AFRED shall verify that the individual's certification has not been suspended, revoked, or expired for one year or longer]. After verification, AFS [AFRED] shall renew and send a copy of the certificate, [certification] and the individual may continue or resume LNG activities authorized by that certificate.

[(e) Expired certifications. Any renewal submitted after the August 31 deadline shall be considered expired. If an individual wishes to renew a certification that has been expired for less than one year, that individual shall submit the annual renewal fee and late filing fee, and proof of successful completion of the examination required for certification. Upon verification that the individual's certificate has not been suspended, revoked, or expired for one year or longer, AFRED shall renew the individual's certification and the individual may resume LNG activities.]

[(f) A military service member, military veteran, or military spouse shall be exempt from the examination fee specified in subsection (c) of this section pursuant to the requirements in §14.2014 of this title (relating to Military Fee Exemption). An individual who receives a military fee exemption is not exempt from renewal fees specified in subsection (d) of this section.]

§14.2020.Employee Transfers.

(a) A [When a previously certified individual is hired, the] licensee or [,] ultimate consumer[, or state agency, county, municipality, school district, or other governmental subdivision] shall notify AFS [AFRED] by filing [a properly completed and signed] LNG Form 2016A and a nonrefundable $10 [along with a $10 filing] fee with AFS, or in lieu of LNG Form 2016A, submit the $10 fee and a written notice including: [. Notice shall include]

(1) the employee's name as recorded with the Commission; and [on a current driver's license or Texas Department of Public Safety identification card,]

(2) the last four digits of the employee's [employee] social security number [, name of previous and new licensee-employer, and types of LNG related work to be performed by the newly-hired certified employee. A state agency, county, municipality, school district, or other governmental subdivision is exempt from this subsection if such entity chooses not to certify its employees who perform LNG activities].

(b) Upon approval of the documents submitted under subsection (a) of this section and verification of the individual's active status, AFS will send a copy of the certificate card to the new employer.

§14.2021.Requests for LNG Classes.

Requests for Commission staff [Staff] to conduct an LNG training class for LNG activities under the Commission's jurisdiction shall be submitted to the AFS [AFRED] training section. The AFS [AFRED] training section may conduct the requested class at its discretion. The nonrefundable fee for an LNG training class is $250 if no overnight expenses are incurred by AFS [AFRED], or $500 if overnight expenses are incurred. AFS [AFRED] may waive the class fee in cases where the Commission recovers the cost of the class from another source, such as a grant.

§14.2025.Designation and Responsibilities of Company Representatives [Outlet] and Operations Supervisors [Supervisor (Branch Manager)].

(a) Each licensee shall have at least one company representative for the license and at least one operations supervisor for each outlet. [The Commission shall designate whether a site is an outlet for the purpose of this chapter. Criteria used by the Commission in determining the designation of an outlet include but are not limited to:] [(1) distance from other LNG activities operated by the licensee;]

[(2) whether the operation duplicates the primary LNG operation; and]

[(3) whether the operation is directly supervised on a routine basis.]

(1) [(b)] A licensee maintaining one or more outlets [than one outlet] shall file LNG Form 2001 [2001A] with AFS listing the physical location of the first outlet and designating the company representative for the license and file LNG Form 2001A [ LP-Gas Operations] designating the physical location and [an] operations supervisor for each additional [(branch manager) at each] outlet. [The operations supervisor shall pass the management examination administered by AFRED before commencing or continuing the licensee's operations at the outlet.]

(2) A licensee may have more than one company representative.

(3) An individual may be an operations supervisor at more than one outlet provided that:

(A) each outlet has a designated LNG certified employee responsible for the LNG activities at that outlet;

(B) the certified employee's and/or operations supervisor's telephone number is posted at the outlet on a sign with lettering at least 3/4 inches high, visible and legible during normal business hours; and

(C) the certified employee and/or operations supervisor monitors the telephone number and responds to calls during normal business hours.

(4) [(c)]The [An operations supervisor may be a] company representative may also serve as operations supervisor for one or more of the licensee's outlets provided that the person meets both the company representative and operations supervisor requirements in this section [of the licensee; however, an individual may be designated as an operations supervisor at only one outlet unless approved by LP-Gas Operations].

(5) A licensee shall immediately notify AFS in writing upon conclusion of employment, for whatever reason, of its company representative or any operations supervisor and shall at the same time designate a replacement.

(A) A licensee shall cease all LNG activities if it no longer employees a qualified company representative who complies with the Commission's requirements. A licensee shall not resume LNG activities until such time as it has a properly qualified company representative.

(B) A licensee shall cease LNG activities at an outlet if it no longer employs a qualified operations supervisor at that outlet who complies with the Commission's requirements. A licensee shall not resume LNG activities at that outlet until such time as it has a properly qualified operations supervisor.

(b) A company representative shall:

(1) be an owner or employee of the licensed entity;

(2) be the licensee's principal individual in authority and be responsible for actively supervising all LNG activities conducted by the licensee, including all equipment, container, product, and system activities;

(3) have a working knowledge of the licensee's LNG activities to ensure compliance with the rules in this chapter and the Commission's administrative requirements;

(4) pass the appropriate management‑level rules examination;

(5) be directly responsible for all employees performing their assigned LNG activities, unless an operations supervisor is fulfilling this requirement; and

(6) submit any additional information as deemed necessary by AFS.

(c) In addition to NFPA 52 §§1.4.3 and 4.2, an operations supervisor shall:

(1) be an owner or employee of the licensee;

(2) pass the applicable management‑level rules examination; and

(3) [(d) The operations supervisor shall] be directly responsible for actively supervising the LNG activities [operations] of the licensee at the designated outlet.

§14.2028.Franchise Tax Certification and Assumed Name Certificates.

(a) An applicant for an original or renewal license or registered manufacturer that is a corporation, limited partnership or limited liability company shall be approved to transact business in Texas by [in good standing with] the Texas Comptroller of Public Accounts. The licensee or registered manufacturer [of the State of Texas. An original license applicant] shall provide a copy of the current Certificate of Account Status [Franchise Tax Statement] from the Texas Comptroller of Public Accounts. [showing "In Good Standing."]

(b) All applicants [Any applicant] for license or manufacturer registrations or their corresponding renewals shall list [all names] on LNG Form 2001 or LNG Form 2001M all names under which LNG related activities requiring licensing or registration as a container manufacturer are to be conducted. Any company performing LNG activities under an assumed name ("doing business as" or "DBA") [name] shall file with AFS [LP-Gas Operations] copies of the assumed name certificates which are required to be filed with the respective county clerk's office and/or the Secretary of State's Office [office].

§14.2029.Changes in Ownership, Form of Dealership, or Name of Dealership.

(a) Changes in ownership which require a new license or manufacturer registration.

(1) Transfer of dealership outlet or location by sale, lease, or gift. The purchaser, lessee, or donee of any dealership or outlet shall have a current and valid license or manufacturer registration authorizing the LNG activities to be performed and the dealership or outlet shall apply for and be issued an LNG license or manufacturer registration prior to engaging in any LNG activities which require a license or manufacturer registration. The purchaser, lessee, or donee shall notify AFS by filing a properly completed LNG Form 2001 or LNG Form 2001M prior to engaging in any LNG activities at that dealership or outlet which require an LNG license or manufacturer registration.

(2) Other changes in ownership. A change in members of a partnership occurs upon the death, withdrawal, expulsion, or addition of a partner. Upon the death of a sole proprietor or partner, the dissolution of a corporation or partnership, any changes in the members of a partnership, or other changes in ownership not specifically provided for in this section, an authorized representative of the previously existing dealership or of the successor in interest shall notify AFS in writing and shall immediately cease all LNG activities of the previously existing dealership which require an LNG license or manufacturer registration and shall not resume until AFS issues an LNG license or manufacturer registration to the successor in interest.

(b) Changes in dealership business entity. When a dealership converts from one business entity into a different kind of business entity, the resulting entity shall have a valid license or manufacturer registration before engaging in any LNG activities which require an LNG license or manufacturer registration and shall immediately notify AFS in writing of the change in business entity.

(c) Dealership name change. A licensee or registered manufacturer which changes its name shall not be required to obtain a new license or manufacturer registration but shall immediately notify AFS as follows prior to engaging in any LNG activities under the new name. The licensee or registered manufacturer shall file:

(1) an amended LNG Form 2001 or LNG Form 1001M;

(2) an amended LNG Form 2001A, if outlet names will change;

(3) a copy of the licensee's or registered manufacturer's business documents reflecting the name change, such as amendments to the articles of incorporation or assumed name filings;

(4) certificates of insurance or affidavits in lieu of insurance if permitted by §14.2034 of this title (relating to Self-Insurance Requirements) or both; and

(5) any other forms required by AFS.

(d) Company representatives and operations supervisors. In all changes of ownership, form of dealership, or name of dealership, the resulting entity shall have a properly certified company representative for the license and an operations supervisor, if required, at each outlet and as specified in §14.2025 of this title (relating to Designation and Responsibilities of Company Representative and Operations Supervisors).

(e) In the event of a death of a sole proprietor or partner, the AFS director may grant a temporary exception not to exceed 30 calendar days to the examination requirement for company representatives and operations supervisors. An applicant for a temporary exception shall comply with applicable safety requirements.

§14.2031.Insurance Requirements.

(a) A licensee or registered manufacturer shall not perform any activity authorized by its license or registration under §14.2013 of this title (relating to License Categories, Container Manufacturer Registration, Fees, and Application for Licenses, Manufacturer Registrations and Renewals) unless insurance coverage required by this section is in effect. LNG licensees, registered manufacturers, or applicants for license or manufacturer registration shall comply with the minimum amounts of insurance specified in Table 1 of this section or with the self-insurance requirements in §14.2034 of this title (relating to Self-Insurance Requirements). Registered manufacturers are not eligible for self-insurance. Before AFS grants or renews a manufacturer registration, an applicant for a manufacturer registration shall submit the documents required by paragraph (1) of this subsection. Before AFS grants or renews a license, an applicant for license shall submit either:

(1) an insurance Acord™ form or any other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier and containing all required information. The forms must be issued by an insurance company authorized or accepted by the Texas Department of Insurance; or

(2) properly completed documents demonstrating the applicant's compliance with the self‑insurance requirements in §14.2034 of this title.

Figure: 16 TAC §14.2031(a)(2) (.pdf)

[(b) Before LP-Gas Operations grants or renews a license, the applicant shall submit either:]

[(1) an insurance AcordJ form or any other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier and contains all required information. The forms must be issued by an insurance company authorized or accepted by the Texas Department of Insurance; or]

[(2) properly completed documents demonstrating the applicant's compliance with the self-insurance requirements in §14.2034 of this title (relating to Self-Insurance Requirements).]

[(3) Certificates of insurance shall be continuous in duration and shall remain on file with LP-Gas Operations during the entire period that the license is in effect.]

[(4) Documentation other than a certificate of insurance may be accepted by LP-Gas Operations as evidence of required insurance provided that the documentation contains the same information as required on a certificate of insurance. The alternative documentation may be accepted for a period not to exceed 45 days. During the temporary period, a licensee shall file with LP-Gas Operations an amended certificate of insurance which complies with the requirements of this section.]

(b) [(c)] Each licensee shall file LNG Form 2999 or other written notice with AFS [LP-Gas Operations] at least 30 calendar days before the cancellation of any insurance coverage. The 30-day period commences on the date the notice is actually received by AFS [LP-Gas Operations].

(c) [(d)] A licensee or applicant for a license that does not employ or contemplate employing any employee to be engaged in LNG-related activities in Texas may [shall ] file LNG Form 2996B in lieu of filing a workers' compensation insurance form, including employers' liability insurance, or alternative accident and health insurance coverage. The licensee or applicant for a license shall file the required insurance form [forms ] with AFS [LP-Gas Operations] before hiring any person as an employee engaged in LNG-related work.

(d) [(e)] A [Category 25 or 35] licensee, applicant for a license, or an ultimate consumer that does not operate or contemplate operating a motor vehicle equipped with an LNG cargo container or does not transport or contemplate transporting LNG by vehicle in any manner may [shall] file LNG Form 2997B in lieu of filing [a] motor vehicle bodily injury and property damage insurance form, if this certificate is not otherwise required. The licensee or applicant for a license shall file the required insurance form [forms] with AFS [LP-Gas Operations] before operating a motor vehicle equipped with an LNG cargo container or transporting LNG by vehicle in any manner.

(e) [(f)] A [Category 15] licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any LNG activities [LNG-related operations in Texas] that would be covered by completed operations or products [and product] liability insurance, or both, may [shall] file LNG Form 2998B in lieu of filing a completed operations and/or products [and product] liability insurance form. The licensee, registered manufacturer, or applicant for a license or manufacturer registration shall file the required insurance form [forms] with AFS [LP-Gas Operations] before engaging in any activities [operations] that require completed operations and/or products [and product] liability insurance.

(f) [(g)] A licensee, registered manufacturer, or applicant for a license or manufacturer registration that does not engage in or contemplate engaging in any activities [LNG-related operations] that would be covered by general liability insurance may [shall ] file LNG Form 2998B in lieu of filing a general liability insurance form. The licensee, registered manufacturer, or applicant for a license or manufacturer registration shall file the required insurance form [forms] with AFS [LP-Gas Operations] before engaging in any activities [operations] that require general liability insurance.

(g) [(h)] A [Notwithstanding the requirements specified in Table 1 of subsection (a) of this section that each licensee carry a policy of workers' compensation insurance, the] licensee may protect its employees by obtaining accident and health insurance coverage from an insurance company authorized to write such policies in this state [Texas] as an alternative to workers' compensation coverage. The alternative coverage shall be in the amounts specified in Table 1 [of subsection (a)] of this section.

(h) [(i)] Each licensee or registered manufacturer shall promptly notify AFS [LP-Gas Operations] of any change in insurance coverage or insurance carrier by filing a [properly completed] revised [certificate of insurance; insurance] Acord™ form; other form approved by the Texas Department of Insurance that has been prepared and signed by the insurance carrier containing all required [that contains all the] information [required by the certificate of insurance]; or documents demonstrating the applicant's compliance with the self-insurance requirements set forth in §14.2034 of this title [(relating to Self-Insurance Requirements)]. Failure to promptly notify AFS [LP-Gas Operations] of a change in the status of insurance coverage or insurance carrier may result in an enforcement action and an administrative penalty.

(i) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements of this section for worker's compensation, general liability and/or motor vehicle liability insurance. The requirements may be met by submitting evidence of self-insurance that complies with the requirements of §14.2034 of this title. LNG Form 2995 may be filed as evidence of self-insurance, if self-insurance is permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §116.036.

§14.2034.Self-Insurance Requirements.

(a) This section applies to a licensee's general liability insurance, including premises and operations coverage. This section shall not apply to worker's compensation insurance, including employer's liability coverage.

(b) A licensee applying for self-insurance shall file LNG Form 2027 with AFS [LP-Gas Operations,] along with materials which will allow AFS [LP-Gas Operations] to determine whether:

(1) the net worth of the applicant is adequate in relationship to the size of operations and the extent of its request for self-insurance authority. The applicant shall demonstrate that it will maintain a net worth sufficient to ensure that it will meet its statutory obligations to the public to pay all claims relating to general liability, including premises and operations coverage; and

(2) the applicant has a sound self-insurance program. The applicant shall demonstrate that it has established and shall maintain an insurance program that will protect the public against all claims involving LNG activities to the same extent as the minimum limits specified in Table 1 of §14.2031 of this title (relating to Insurance Requirements). Such a program may include but not be limited to one or more of the following: reserves; irrevocable letter of credit, as specified in subsection (h) of this section; sinking funds; third-party financial guarantees; parent company or affiliate sureties; excess insurance coverage; or other similar arrangements.

(c) AFS [LP-Gas Operations] may consider applications for approval of other securities or agreements, or may require any other information which may be necessary to ensure the application satisfies that the security or agreement offered will afford adequate security for protection of the public.

(d) AFS [LP-Gas Operations] may approve a licensee's application for self-insurance if the licensee demonstrates to AFS [LP-Gas Operations] its ability to satisfy its obligations for the minimum insurance requirements specified in §14.2031 of this title . AFS [(relating to Insurance Requirements). LP-Gas Operations] may approve the licensee as a self-insurer for a specific time period or for an indefinite period until further action is taken by AFS [LP-Gas Operations].

(e) The applicant shall file semi-annual reports and annual statements with the applicant's financial status and status of its self-insurance program with AFS [LP-Gas Operations ] during the period of its self-insurer status by March 10 and September 10 of each year.

(f) After ten days' notice to the applicant, AFS [LP-Gas Operations] may require the applicant to appear and demonstrate that it continues to have adequate financial resources to pay all general liability, including premises and operations coverage[,] claims, and that it remains in compliance with the other requirements of this section. If the applicant fails to do so, AFS [LP-Gas Operations] shall revoke its self-insurer status and may order that the licensee is ineligible for self-insurance in the future.

(g) A state agency or institution, county, municipality, school district, or other governmental subdivision may meet the requirements for workers' compensation coverage or general liability and/or motor vehicle liability insurance if permitted by the Texas Workers' Compensation Act, Texas Labor Code, Title 5, Subtitle A; and Texas Natural Resources Code, §116.036, by submitting LNG Form 2995 to AFS [LP-Gas Operations].

(h) Letters of credit filed with LNG Form 2028 shall:

(1) be issued by a federally chartered and federally insured bank authorized to do business in the United States;

(2) be irrevocable during their terms;

(3) be payable to the Commission in part or in full upon demand and receipt from the Commission of a notice of forfeiture; and

(4) not apply to the licensing requirements for worker's compensation insurance, including employer's liability coverage.

§14.2040.Filings Required [and Notice Requirements] for Stationary LNG Installations.

(a) General requirements. No LNG container shall be placed into LNG service or an installation operated or used in LNG service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable rules in this chapter and [all] statutes. LNG systems under the jurisdiction of DOT Safety regulations in 49 CFR Part 193 shall comply with Chapter 8 of this title (relating to Pipeline Safety Regulations) prior to implementation of service. [, in addition to any applicable requirements of the municipality or the county where an installation is or will be located. A person who purchases an existing LNG installation shall file LNG Form 2019 with LP-Gas Operations within 10 calendar days of the purchase in order for the installation to remain in LNG service.]

(b) Commercial installations with an aggregate water capacity of less than 15,540 gallons.

(1) Within 10 calendar days following the completion of a commercial container installation, the licensee shall submit LNG Form 2501 to AFS stating:

(A) the installation fully complies with the statutes and the rules in this chapter;

(B) all necessary Commission licenses, certificates, and permits have been issued; and

(C) the date the installation has been placed into LNG service.

(2) The licensee shall pay a nonrefundable fee of $10 for each LNG container listed on the form.

(A) AFS shall review the submitted information and shall notify the applicant in writing of any deficiencies.

(B) A nonrefundable $20 fee shall be required for any resubmission.

(3) LNG activities may commence prior to the submission of LNG Form 2501 if the facility is in compliance with the rules in this chapter.

(c) Aggregate water capacity of 15,540 gallons or more.

(1) [(b)] For [Prior to the construction of a] stationary installations with [installation which would result in] an aggregate water capacity of 15,540 gallons or more, the licensee [applicant] shall submit the following information to AFS at least 30 days prior to construction:

(A) LNG Form 2500; [and]

(B) LNG Form 2500A with all applicabledocuments;

(C) a plat drawing from the appropriate appraisal district identifying:

(i) the facility's property boundaries;

(ii) the names of all real property owners within 500 feet; and

(iii) a 500-foot radius measured from the proposed container location on the site;

(D) a site plan of sufficient scale that identifies:

(i) fire protection which complies with §14.2131 of this title (relating to Fire Protection);

(ii) location, types, and size of all LNG containers already on site or proposed to be on site,

(iii) the distances from the container(s) to property lines and buildings;

(iv) location of LNG dispensers and their distance from the proposed container (the nearest container if more than one), property lines, buildings on the same property, roadways, driveways, and railroad track centerlines;

(v) any known potential hazards;

(vi) location of any sources of ignition;

(vii) location of other types of aboveground fuel containers, the type of fuel stored, and the distance to LNG containers and dispensing equipment;

(viii) the location of other types of fuel dispensers, the type of fuel dispensed, and the distance to LNG containers and dispensing equipment;

(E) a non-refundable fee of $50 for the initial [$50] application or a nonrefundable fee of $30 for any resubmission; and [fee to LP-Gas Operations including site plans and plans and specifications for the installation at least 30 calendar days prior to construction.]

(F) if the facility is accessed by cargo tanks from a public highway under the jurisdiction of the Texas Department of Transportation, a statement or permit from the Texas Department of Transportation showing that the driveway is of proper design and construction to allow safe entry and egress of the LNG cargo tanks.

(2) Site plans shall include a scale or legend indicating the distances or measurements described and printed copies of plans with a legend must be printed to the correct size for the legend or distance provided.

(3) [(1)] Plans and specifications submitted under paragraph (1)(D) of this subsectionshall be sealed by a registered professional engineer licensed and in good standing to practice in the State of Texas and who is qualified in the area of the design and construction of LNG facilities.

[(2) Plans and specifications shall include fire protection which complies with §14.2131 of this title (relating to Fire Protection).]

(4) [(3)] If the applicant modifies the plans and specifications before tentative or interim approval is granted by AFS [LP-Gas Operations] or the Commission, respectively, the plans and specifications shall be resealed by a registered professional engineer licensed to practice in the State of Texas and resubmitted to AFS. [LP-Gas Operations. A non-refundable fee of $30 shall be required for any resubmission.]

(5) Prior to the installation of any individual LNG container, AFS shall determine whether the proposed installation constitutes a danger to the public health, safety, and welfare. The applicant shall provide additional information if requested by AFS.

(A) AFS may impose restrictions or conditions on the proposed LNG installation based on one or more of the following factors:

(i) nature and density of the population or occupancy of structures within 500 feet of the proposed or existing container locations;

(ii) nature of use of property located within 500 feet of the LNG installation;

(iii) type of activities on the installation's premises;

(iv) potential sources of ignition that might affect an LNG leak;

(v) existence of dangerous or combustible materials in the area that might be affected by an emergency situation;

(vi) any known potential hazards or other factors material to the public health, safety, and welfare.

(B) The Commission does not consider public health, safety, and welfare to include such factors as the value of property adjacent to the installation, the esthetics of the proposed installation, or similar considerations.

(6) AFS shall notify the applicant as follows:

(A) If AFS administratively approves the installation, AFS shall notify the applicant in writing within 21 business days.

(B) If the application is administratively denied:

(i) AFS shall notify the applicant in writing, specifying the deficiencies, within 21 business days.

(ii) The applicant shall modify the submission and resubmit it for approval or request a hearing on the matter in accordance with Chapter 1 of this title (relating to Practice and Procedure). The subject of the submission shall not be operated or used in LNG service in this state until approved by the Commission following a hearing.

(iii) When AFS notifies an applicant of an incomplete LNG Form 2500 or LNG Form 2500A, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, the applicant shall file a new application to reactivate AFS review of the proposed installation.

(iv) The applicant may request in writing an extension of the 120-day time period. The request shall be postmarked or physically delivered to AFS before the expiration date. AFS may extend the application period for up to an additional 90 days.

(7) The licensee shall not commence construction until notice of approval is received from AFS.

(A) If the subject installation is not completed within one year from the date AFS has granted construction approval, the application will expire.

(B) Prior to the date of expiration, the applicant may request in writing an extension of time of up to 90 days to complete the installation.

(C) If the applicant fails to request an extension of time within the time period prescribed in this paragraph, the applicant will be required to submit a new application before the installation can be completed.

(8) The applicant shall submit to AFS written notice of completed construction and the Commission shall complete the field inspection as specified in §14.2042 of this title (relating to Physical Inspection of Stationary Installations).

(9) The container may be placed into service after AFS has completed the inspection and determines the installation meets all safety requirements.

(10) The proposed installation shall not be operated or used in LNG service until approved by AFS.

(11) A licensee shall not be required to submit LNG Form 2500, LNG Form 2500A, or a site plan prior to the installation of pull-away devices, or emergency shutoff valves (ESV's), or when maintenance and improvements are being made to the piping system at an existing LNG installation.

(12) If a licensee is replacing a container with a container of the same or less overall diameter and length or height, and is installing the replacement container in the identical location of the existing container, the licensee shall file LNG Form 2500.

(d) AFS may request LNG Form 2008, a Manufacturer's Data Report, or any other documentation or information pertinent to the installation in order to determine compliance with the rules in this chapter.

(e) For an installation that is a licensee outlet, the operating licensee shall comply with §14.2014 of this title (relating to Applications for License or Manufacturer Registration (New and Renewal)) within 30 days of installation.

[(c) Prior to the installation of an LNG container resulting in an aggregate water capacity of 15,540 gallons or more, the applicant or licensee shall send a copy of LNG Form 2500, LNG Form 2500A, and a plat by certified mail, return receipt requested, to all owners of real property situated within 500 feet of the proposed container location(s). The applicant or licensee shall submit LNG Form 2500 to LP-Gas Operations at the same time LNG Form 2500 and LNG Form 2500A are mailed to the real property owners.]

[(1) Notice shall be considered sufficient when the applicant or licensee has provided evidence that a complete LNG Form 2500, LNG Form 2500A, and a plat have been sent to all real property owners. The applicant or licensee may obtained names and addresses of owners from current county tax rolls.]

[(2) The applicant or licensee shall notify owners of real property situated within 500 feet of the proposed container location(s) if the current aggregate water capacity of the installation is more than doubled in a 12-month period or if the resulting aggregate water capacity of the installation will be more than 214,348 gallons.]

[(3) The applicant or licensee shall retain the return receipts for Commission review, if requested.]

[(4) The site plan or drawing shall describe the facility's property or a 250-foot diameter (measured from the proposed container's location on the site), whichever is smaller, and include all containers, buildings, structures, geographical or topographical features, or any other features or activities relating to LNG which could affect the health, safety and welfare of the general public. The site plan or drawing shall include a scale or legend to indicate the distances or measurements described.]

[(5) Objections shall be filed with LP-Gas Operations within 18 days of the postmarked date on the notice letter. If LP-Gas Operations finds that the objection is not proper, LP-Gas Operations shall notify the property owner and the property owner shall have ten days from the date of LP-Gas Operations' postmarked letter to correct the objection. If one or more of the adjoining property owners files an objection and a written request with LP-Gas Operations for a hearing, the hearing shall be conducted as soon as possible and a recommendation presented to the Railroad Commission within 90 days following the hearing. When possible, the hearing shall be held in a location near the proposed site.]

[(A) LP-Gas Operations shall review all objections within 10 business days of receipt. An objection shall be in writing and shall include a statement of facts showing that the proposed installation:]

[(i) does not comply with the rules in this chapter, specifying which rules are violated;]

[(ii) does not comply with the statutes of the State of Texas, specifying which statutes are violated; or]

[(iii) constitutes a danger to the public health, safety, and welfare, specifying the exact nature of the danger. For purposes of this section, "danger" means an imminent threat or an unreasonable risk of bodily harm, but does not mean diminished property or esthetic values in the area. The Railroad Commission does not consider public health, safety, and welfare to include such factors as the value of property adjacent to the installation, the esthetics of the proposed installation, or similar considerations.]

[(B) Upon review of the objection, LP-Gas Operations shall either:]

[(i) schedule a public hearing as specified in §14.2022 of this title (relating to Denial, Suspension, or Revocation of Licenses or Certifications, and Hearing Procedure); or]

[(ii) notify the objecting party in writing within 10 business days of receipt requesting further information for clarification and stating why the objection is being returned. The objecting entity shall have 10 calendar days from the postmark of LP-Gas Operations' letter to file its corrected objection. Clarification of incomplete or non-substantive objections shall be limited to two opportunities. If new objections are raised in the objecting party's clarification, the new objections shall be limited to one notice of correction.]

[(6) Temporary installations which are used during peak demand times such as during cold weather or emergencies are not required to comply with these notice requirements. However, a sign shall be installed at the site and brochures or other similar means of notification shall be available at the site to advise the public of the need and use for the temporary installation.]

[(d) Unless considered to be in the public interest by LP-Gas Operations, the applicant or licensee does not need to notify owners of real property situated within 500 feet of the proposed container location(s) of an addition to an existing LNG facility provided the current aggregate water capacity is not more than doubled in a 12-month period; however, if the resulting aggregate water capacity will exceed 214,348 gallons, the applicant or licensee shall provide notice as specified in subsection (c) of this section.]

[(e) LP-Gas Operations shall grant tentative or the Commission shall grant interim approval prior to the setting of the LNG container and construction of the LNG installation.]

[(f) When an LNG container is replaced with a container of the same or less overall diameter and length or height, and installed in the identical location of the existing container at an LNG storage installation of 15,540 gallons aggregate water capacity or more, the applicant shall file LNG Form 2501 with LP-Gas Operations.]

[(1) LNG Form 2500, LNG Form 2500A, and LNG Form 2501, including site plans and plans and specifications, are not required to be filed prior to installation of pull-away devices, or emergency shutoff valves (ESV's), or when maintenance and improvements are being performed to the piping system at existing previously approved LNG installations having an aggregate water capacity of 15,540 gallons or more.]

[(2) A nonrefundable fee of $50 shall be submitted with each LNG Form 2500. A nonrefundable resubmission fee of $30 shall be included with each incomplete or revised set of plans and specifications resubmitted.]

[(3) The proposed installation shall not be operated or used in LNG service until approved by LP-Gas Operations.]

[(g) Upon completion of a commercial installation having an aggregate water capacity of less than 15,540 gallons, the applicant shall submit LNG Form 2501, postmarked or physically delivered to LP-Gas Operations, within ten calendar days after completion of such installation. LNG Form 2501 shall state that:]

[(1) the installation complies with the statutes and the rules in this chapter;]

[(2) any necessary LNG licenses have been issued; and]

[(3) the installation has been placed in LNG service.]

[(h) A nonrefundable fee of $10 for each LNG container listed on LNG Form 2501 shall be submitted with each LNG Form 2501 required to be filed by the applicable subsections of this section. A nonrefundable resubmission fee of $20 shall be included for each LNG Form 2501 resubmitted.]

[(i) LP-Gas Operations shall review all applications within 21 business days of the receipt of all required information and shall notify the applicant as follows:]

[(1) If LP-Gas Operations administratively approves the installation, LP-Gas Operations shall notify the applicant in writing within 21 business days.]

[(2) If LP-Gas Operations declines to administratively approve the installation, LP-Gas Operations shall notify the applicant in writing, specifying the deficiencies, within 21 business days. The applicant may modify the submission and resubmit it for approval, or may request a hearing on the matter in accordance with Chapter 1 of this title (relating to Practice and Procedure).]

[(j) When LP-Gas Operations notifies an applicant of an incomplete LNG Form 2500 or LNG Form 2500A, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, the applicant shall file a new application to reactivate LP-Gas Operations' review of the proposed installation.]

[(1) The applicant may request in writing an extension of the 120-day time period. The request shall be postmarked or physically delivered to LP-Gas Operations before the expiration date. LP-Gas Operations may extend the application period for up to an additional 90 days.]

[(2) If the tentatively approved installation is not completed within one year from the date tentative approval was granted, the application will expire. Prior to the date of expiration, the applicant may request in writing an extension of time of up to 90 days to complete the installation. If the applicant fails to request an extension of time within the time period prescribed in this subsection, the applicant will be required to submit a new application before the original installation can be completed.]

[(3) Prior to the installation of an LNG container referenced in this section in a heavily populated or congested area, LP-Gas Operations shall determine whether the proposed installation poses a threat to the health, safety, and welfare of the general public. LP-Gas Operations shall determine restrictions on LNG container capacities in accordance with the following:]

[(A) density of the population within 500 feet of the LNG installation;]

[(B) nature of the land use on those pieces of property located within 500 feet of the LNG installation;]

[(C) vehicular traffic in the area;]

[(D) types and numbers of roadways in the area;]

[(E) type of operations on the premises;]

[(F) potential ignition sources in the area;]

[(G) existence of dangerous or combustible materials in the area that might be affected in an emergency situation;]

[(H) the number of members of the general public who are concentrated in the area; and]

[(I) other factors related to the public health, safety, and welfare.]

[(k) LP-Gas Operations shall examine plans and specifications to ensure that they have been sealed by a qualified professional engineer licensed to practice in the State of Texas. LP-Gas Operations shall review site plans to determine whether the installation complies with the distance requirements in this chapter. LP-Gas Operations shall determine whether the subject of the submission poses a threat to the health, safety, and welfare of the general public.]

[(1) If LP-Gas Operations declines to approve administratively the submission, LP-Gas Operations shall notify the applicant of this decision in writing within 21 calendar days. The applicant may modify the submission and resubmit it for approval within 21 calendar days after receiving the notice, or may request a hearing to be conducted in accordance with Chapter 1 of this title. The subject of the submission shall not be operated or used in LNG service in this state until approved by the Commission following a hearing.]

[(2) LNG Form 2008 or the Manufacturer's Data Report, and any other documentation pertinent to the installation, may be requested by LP-Gas Operations in order to further determine compliance with the rules in this chapter.]

[(l) Physical inspection of stationary installations.]

[(1) Aggregate water capacity 15,540 gallons or more. The applicant shall notify LP-Gas Operations when the installation is ready for inspection. If LP-Gas Operations does not physically inspect the facility within 30 calendar days of receipt of notice that the facility is ready for inspection, the applicant may operate the facility conditionally until the initial complete inspection is made. If any safety rule violations exist at the time of the initial inspection, the applicant may be required to cease LNG operations until the applicant corrects the violations.]

[(2) Aggregate water capacity of less than 15,540 gallons. After receipt of LNG Form 2501, LP-Gas Operations shall conduct an inspection as soon as possible to verify the installation described complies with the rules in this chapter. The applicant may operate the facility prior to inspection if the facility fully complies with the rules in this chapter. If any LNG statute or safety rule violations exist at the time of the initial inspection at a commercial installation, LP-Gas Operations may immediately remove the subject container, including any piping, appliances, appurtenances, or equipment connected to it from LNG service until the applicant corrects the violations.]

[(m) If the Railroad Commission finds after a public hearing that the proposed installation complies with the rules in this chapter and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Railroad Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:]

[(1) the applicant has introduced LNG into the system prior to final approval; or]

[(2) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the rules in this chapter, or the statutes of the State of Texas; or]

[(3) the installation constitutes a danger to the public health, safety, and welfare.]

[(n) Material variances. If LP-Gas Operations determines the completed installation varies materially from the application originally accepted, the applicant shall correct the variance and notify LP-Gas Operations of the correction of the variance or resubmit the application. LP-Gas Operations' review of such resubmitted application shall comply with the procedure described in this section.]

[(o) In the event an applicant has requested an inspection and LP-Gas Operations' inspection identifies violations requiring modifications by the applicant, LP-Gas Operations may assess an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.]

§14.2041.Notice of, Objections to, and Hearings on Proposed Stationary LNG Installations.

(a) Notice of proposed stationary LNG installations.

(1) For a proposed installation with an aggregate water capacity of 15,540 gallons or more, an applicant shall send a copy of the filings required under §14.2040 of this title (relating to Filings Required for Stationary LNG Installations) by certified mail, return receipt requested or otherwise delivered, to all owners of real property situated within 500 feet of any proposed container location at the same time the originals are filed with AFS.

(A) AFS shall consider the notice to be sufficient when the applicant has provided evidence that copies of a complete application have been mailed or otherwise delivered to all real property owners.

(B) The applicant or licensee may obtain names and addresses of owners from current county tax rolls.

(2) An applicant shall notify owners of real property situated within 500 feet of the proposed container location if:

(A) the current aggregate water capacity of the installation is more than doubled in a 12-month period; or

(B) the resulting aggregate water capacity of the installation will be more than 214,348 gallons.

(b) Objections to proposed stationary LNG installations.

(1) Each owner of real property receiving notice of a proposed installation pursuant to subsection (a) of this section shall have 18 calendar days from the date the notice is postmarked to file a written objection with AFS using the LNG Form 2500A sent to them by the applicant. An objection is considered timely filed when it is actually received by the Commission.

(A) AFS shall review all objections within 10 business days of receipt.

(B) An objection shall be in writing and shall include a statement of facts showing that the proposed installation:

(i) does not comply with the rules in this chapter, specifying which rules are violated;

(ii) does not comply with the statutes of the State of Texas, specifying which statutes are violated; or

(iii) constitutes a danger to the public health, safety, and welfare, specifying the exact nature of the danger. For purposes of this section, "danger" means an imminent threat or an unreasonable risk of bodily harm, but does not mean diminished property or esthetic values in the area.

(2) Upon review of the objection, AFS shall:

(A) request a public hearing as specified in §14.2016 of this title (relating to Penalty Guidelines and Enforcement); or

(B) notify the objecting party in writing within 10 business days of receipt requesting further information for clarification and stating why the objection is not valid. The objecting entity shall have 10 calendar days from the postmark of AFS' letter to file its corrected objection. Clarification of incomplete or non-substantive objections shall be limited to two opportunities. If new objections are raised in the objecting party's clarification, the new objections shall be limited to one notice of correction.

(c) Temporary installations which are used during peak demand times such as during cold weather or emergencies are not required to comply with these notice requirements. However, a sign shall be installed at the site and brochures or other similar means of notification shall be available at the site to advise the public of the need and use for the temporary installation.

(d) Hearings on stationary LNG installations.

(1) Reason for hearing. AFS shall call a public hearingif:

(A) AFS receives an objection that complies with subsection (b) of this section; or

(B) AFS determines that a hearing is necessary to investigate the impact of the installation.

(2) Notice of public hearing. The Hearings Division shall give notice of the public hearing at least 21 calendar days prior to the date of the hearing to the applicant and to all real property owners who were required to receive notice of the proposed installation under subsection (a) of this section.

(3) Procedure at hearing. The public hearing shall be conducted pursuant to Chapter 1 of this title (relating to Practice and Procedure).

(4) Hearing findings. If the Railroad Commission finds after a public hearing that the proposed installation complies with the rules in this chapter and the statutes of the State of Texas, and does not constitute a danger to the public health, safety, and welfare, the Railroad Commission shall issue an interim approval order. The construction of the installation and the setting of the container shall not proceed until the applicant has received written notification of the interim approval order. Any interim approval order shall include a provision that such approval may be suspended or revoked if:

(A) the applicant has introduced LNG into the system prior to final approval;

(B) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the rules in this chapter, or the statutes of the State of Texas; or

(C) the installation constitutes a danger to the public health, safety, and welfare.

§14.2042.Physical Inspection of Stationary Installations.

(a) Aggregate water capacity of 15,540 gallons or more. The applicant shall notify AFS in writing when the installation is ready for inspection.

(1) If any non-compliance items are cited at the time of AFS' initial inspection, the installation shall not be placed in LNG service until the non-compliance items are corrected, as determined at the time of inspection depending on the nature of the non-compliance items cited.

(2) If AFS does not physically inspect the facility within 30 calendar days of receipt of notice that the facility is ready for inspection, the facility may operate conditionally until the initial inspection is completed.

(b) Aggregate water capacity of less than 15,540 gallons. After receipt of LNG Form 2501, AFS shall conduct an inspection as soon as possible to verify the installation described complies with the rules in this chapter. The facility may be operated prior to inspection if the facility fully complies with the rules in this chapter. If the initial inspection at a commercial installation results in the citation of non-compliance items, AFS may require that the subject container, including any piping, appliances, appurtenances, or equipment connected to it, be immediately removed from LNG service until the non-compliance items are corrected.

(c) Material variances. If AFS determines the completed installation varies materially from the application originally accepted, correction of the variance and notification to AFS or resubmission of the application is required. The review of such resubmitted application shall comply with §14.2040 of this title (relating to Filings Required for Stationary LNG Installations).

(d) In the event an applicant has requested an inspection and AFS' inspection identifies non-compliance items requiring modifications by the applicant, AFS may assess an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

§14.2043.Temporary Installations.

(a) Temporary installations shall comply with the following requirements:

(1) Prior to the completion of a temporary installation with an individual or aggregate water capacity of 15,540 gallons or less, the licensee [or non-licensee] shall file LNG Form 2501 with AFS, and include [LP-Gas Operations, including] proof of the local fire marshal's approval if the installation is within such jurisdiction.

(2) Prior to the completion of a temporary installation with an individual or aggregate water capacity of 15,541 gallons or more, the licensee [or non-licensee] shall file LNG Form 2500, including plans and specifications, and proof of the local fire marshal's approval if the installation is with such jurisdiction.

(b) Temporary installations shall be limited to one year from the date of installation. If the temporary installation is expected [needs] to remain in service for more than one year, the licensee [or nonlicensee] responsible for the temporary installation shall inform AFS [LP-Gas Operations of this extension of time] at least 30 days prior to the expiration of the one-year period.

(c) Temporary installations shall be protected by guardrailing as specified in §14.2101(c) [§14.2102(f)] of this title (relating to System [Uniform] Protection Requirements) unless otherwise approved by AFS [LP-Gas Operations].

(d) Temporary installations shall comply with the electrical requirements specified in Subchapter F of this chapter (relating to Instrumentation and Electrical Services).

(e) Temporary installations shall be mounted on a secure surface, not to include bare earth.

(f) Temporary installations are not required to have impounding areas.

(g) AFS [LP-Gas Operations] may inspect temporary installations for compliance with this section.

(h) Any temporary installation subject to the jurisdiction of United States Department of Transportation under 49 Code of Federal Regulations, Part 193, shall comply with the applicable DOT rules and any requirements of AFS [LP-Gas Operations].

(i) Pursuant to §14.2041(c) of this title (relating to Notice of, Objections to, and Hearings on Proposed Stationary LNG Installations), temporary installations are not required to comply with the notification requirements in §14.2041 of this title.

§14.2046.[Filings Required for] School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections [Vehicles].

(a) After the manufacture of or the conversion to an LNG system on any vehicle to be used in Texas as a school bus, mass transit, public transportation, or special transit vehicle, the manufacturer, licensee, or ultimate consumer making the installation or conversion shall notify AFS [LP-Gas Operations] in writing on LNG Form 2503 that the applicable LNG-powered vehicles are ready for a complete inspection to determine compliance with the rules in this chapter.

(b) AFS shall conduct the inspection [If LP-Gas Operations' initial complete inspection finds the vehicle in compliance with the rules in this chapter and the statutes, the vehicle may be placed into LNG service. For fleet installations of identical design, an initial inspection shall be conducted prior to the operation of the first vehicle, and subsequent vehicles of the same design may be placed into service without prior inspections. Subsequent inspections shall be conducted] within a reasonable time [frame] to ensure the vehicles are operating in compliance with the rules in this chapter. [If violations exist at the time of the initial complete inspection, the vehicle shall not be placed into LNG service and the manufacturer, licensee, or ultimate consumer making the installation or conversion shall correct the violations. The manufacturer, licensee, or ultimate consumer shall file with LP-Gas Operations documentation demonstrating compliance with the rules in this chapter, or LP-Gas Operations shall conduct another complete inspection before the vehicle may be placed into LNG service.]

(1) If AFS' initial complete inspection finds that the vehicle is in compliance with the rules in this chapter and the statutes, the vehicle may be placed into LNG service. For fleet installations of identical design, an initial inspection shall be conducted prior to the operation of the first vehicle, and subsequent vehicles of the same design may be placed into service without prior inspections.

(2) If violations exist at the time of the initial inspection, the vehicle shall not be placed into LNG service and the manufacturer, licensee, or ultimate consumer making the installation or conversion shall correct the violations. The manufacturer, licensee, or ultimate consumer shall file with AFS documentation demonstrating compliance with the rules in this chapter, or AFS shall conduct another complete inspection before the vehicle may be placed into LNG service.

(3) For public transportation vehicles only, if AFS does not conduct the initial inspection within 30 business days of receipt of the LNG Form 2503, the vehicle may be operated in LNG service if it complies with the rules in this chapter.

(c) The manufacturer, licensee, or ultimate consumer making the installation or conversion shall be responsible for compliance with the rules in this chapter, statutes, and any other local, state, or federal requirements.

(d) If the requested AFS [LP-Gas Operations ] inspection identifies violations requiring modifications by the manufacturer, licensee, or ultimate consumer, AFS [LP-Gas Operations] shall consider the assessment of an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

§14.2049.Report of LNG Incident/Accident.

(a) At the earliest practical moment or within two hours following discovery, a [If an incident or accident occurs during transport, as a result of a pullaway, or where LNG is or is suspected to be the cause, the] licensee [or nonlicensee ] owning, operating, or servicing equipment or an [the] installation shall notify AFS [LP-Gas Operations ] by telephone of any event involving LNG which [within two hours of discovery after the licensee or nonlicensee has knowledge of the incident or accident if any of the following occurs]:

(1) involves a single release of LNG during or following LNG transfer or during container transportation. Any loss of LNG which is less than 1.0% of the gross amount delivered, stored, or withdrawn need not be reported. Any loss occurring as a result of a pullaway shall be reported [a spill of 25 gallons or more of LNG];

(2) caused an estimated [property] damage to the property of the operator, others, or both totaling $50,000 or more, including gas loss; [of $1,000 or greater; or]

(3) caused a death or any personal [an] injury requiring hospitalization; [transport to a medical facility.]

(4) required taking an operating facility out of service;

(5) resulted in an unintentional ignition of LNG requiring an emergency response;

(6) involved the LNG installation on any vehicle propelled by or transporting LNG;

(7) could reasonably be judged as significant because of rerouting of traffic, evacuation of buildings, or media interest, even though it does not meet paragraphs (1) - (6) of this subsection; or

(8) is required to be reported to any other state or federal agency (such as the Texas Department of Public Safety or U.S. Department of Transportation).

(b) Any transport unit required to be registered with AFS [LP-Gas Operations] in accordance with §14.2704 of this title (relating to Registration and Transfer of LNG Transports) which is involved in an accident where there is damage to the tank, piping appurtenances, or any release of LNG resulting from the accident shall be reported to AFS [LP-Gas Operations], regardless of the accident location. Any LNG-powered motor vehicle used for school transportation or mass transit, including any state-owned vehicle, which is involved in an accident resulting in a release of LNG or damage to LNG equipment shall be reported to AFS [LP-Gas Operations], regardless of the accident location.

(c) The telephonic notice [telephone notification] required by this section shall be made to the Railroad Commission's 24-hour emergency line at (512) 463-6788 or (844) 773-0305 and shall include the following [information]:

(1) [the] date and time of the incident [or accident];

(2) name of the reporting operator [type of structure or equipment involved];

(3) phone number of the operator [resident's or operator's name];

(4) [physical] location of the leak or incident;

(5) personal [number and type of] injuries and/or [or] fatalities;

(6) whether fire, explosion, or leak has occurred;

(7) status of leak or other immediate hazards; [whether LNG is currently leaking; and]

(8) other significant facts relevant to the incident; and

(9) [(8)] whether immediate assistance from AFS [LP-Gas Operations] is requested.

[(d) The individual making the telephone notification shall leave his or her name and telephone number.]

(d) [(e)] Following the initial telephone report [of any of the incidents or accidents described in this section], the licensee who made the telephonic report shall submit [file] LNG Form 2020 to AFS [with LP-Gas Operations]. The form shall be postmarked within 14 calendar days of the date of initial notification to AFS, or within five business days of receipt of the fire department report, whichever occurs first, unless AFS grants authorization for a longer period of time when additional investigation or information is necessary [LP-Gas Operations].

(e) Within five business days of receipt, AFS shall review LNG Form 2020 and notify in writing the person submitting LNG Form 2020 if the report is incomplete and specify in detail what information is lacking or needed. Incomplete reports may delay the resumption of LNG activities at the involved location.

§14.2052.Application for an Exception to a Safety Rule.

(a) In addition to NFPA 52 §4.3 and for any alternate design used for installations subject to NFPA 59A requirements, a [Any] person may apply for an exception to the provisions of this chapter by filing LNG Form 2025 along with supporting documentation and a $50 filing fee[,] with AFS [LP-Gas Operations].

(b) The application shall contain the following:

(1) the section number of any [applicable] rules for which an [the] exception is being requested;

(2) the type of relief desired, including the exception requested and any information which may assist AFS [LP-Gas Operations] in comprehending the requested exception;

(3) a concise statement of facts which support the applicant's request for the exception, such as the reason for the exception, the safety aspects of the exception, and the social and/or [or] economic impact of the exception;

(4) for all stationary installations, regardless of size, a description of the acreage and/or address upon which the subject of the exception will be located. The description shall be in writing and shall include:

(A) a site drawing;

(B) sufficient identification of the site so that determination of property boundaries may [can] be made;

(C) a plat from the applicable appraisal district indicating the ownership of the land; and

(D) the legal authority under which the applicant, if not the owner, is permitted occupancy;

(5) the name, business address, and telephone number of the applicant and of the authorized agent, if any; and

[(6) an original signature in ink by the applicant filing the application or by the applicant's authorized representative; and]

(6) [(7)] a list of the names and addresses of all interested entities as defined in subsection (c) of this section.

(c) Notice of the application for an exception to a safety rule shall include the following items and procedures:

(1) The applicant shall send a copy of LNG Form 2025 by certified mail, return receipt requested, to all affected entities as specified in paragraphs (2), (3), and (4) of this subsection on the same date on which the form is filed with or sent to AFS [LP-Gas Operations]. The applicant shall include a notice to the affected entities that any objection shall be filed with AFS [LP-Gas Operations] within 18 calendar days of the postmark. The applicant shall file all return receipts with AFS [LP-Gas Operations] as proof of notice.

(2) If an exception is requested for a stationary site, the affected entities to whom the applicant shall give notice shall include but not be limited to:

(A) persons and businesses owning or occupying property adjacent to the site;

(B) the city council or fire marshal, if the site is within municipal limits; and

(C) the county Commission, if the site is not within any municipal limits.

(3) If an exception is requested for a non-stationary installation, affected entities to whom the applicant shall give notice shall include but not be limited to:

(A) the Texas Department of Public Safety; and

(B) all processed gas loading and unloading facilities used by the applicant.

(4) AFS [LP-Gas Operations] may require an applicant to give notice to persons in addition to those listed in paragraphs (2) and (3) of this subsection if doing so will not prejudice the rights of any entity.

(d) Objections to the requested exception shall be in writing, filed with AFS [at LP-Gas Operations] within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that, as proposed, the exception would have an adverse effect on public health, safety, or welfare. AFS [LP-Gas Operations] may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

(e) AFS [LP-Gas Operations] shall review the application within 21 business days of receipt of the application.

(1) If AFS [LP-Gas Operations] does not receive any objections from any affected entities as defined in subsection (c) of this section, the AFS [LP-Gas Operations] director may grant administratively the exception if the AFS [LP-Gas Operations] director determines that the installation, as proposed, does not adversely affect the health or safety of the public. AFS [LP-Gas Operations] shall notify the applicant in writing by the end of the 21-day review period and, if approved, the installation shall be installed within one year from the date of approval. AFS [LP-Gas Operations ] shall also advise the applicant at the end of the objection period as to whether any objections were received and whether the applicant may proceed.

(2) If the AFS [LP-Gas Operations ] director denies the exception, AFS [LP-Gas Operations] shall notify the applicant, in writing, outlining [of] the reasons and any specific deficiencies.

(3) The applicant may modify the application to correct the deficiencies and resubmit the application along with a $30 resubmission fee, or may request a hearing on the matter [in accordance with Chapter 1 of this title (relating to Practice and Procedure)].

(A) To be granted a hearing, the applicant shall file a written request for hearing within 14 calendar days of receiving notice of the administrative denial.

(B) [(f)] A hearing shall be held when AFS [LP-Gas Operations] receives an objection, as set out in subsection (d) of this section from any affected entity or when the applicant requests one following an administrative denial. AFS [LP-Gas Operations] shall forward the request to the Hearing Division [mail the notice of hearing to the applicant and all objecting entities by certified mail, return receipt requested, at least 21 calendar days prior to the date of the hearing. Hearings will be held in accordance with the Texas Government Code, Chapter 2001, et seq., Chapter 1 of this title, and the rules in this chapter].

(f) [(g)] Applicants intentionally submitting incorrect or misleading information are subject to penalties as set out in Texas Natural Resources Code, [']'116.142 [91.143], and the filing of incorrect or misleading information shall be grounds for dismissing the [Commission to dismiss an] application with prejudice.

(g) [(h)] After hearing, [the Commission may grant] exceptions to this chapter may be granted by the Commission if the Commission finds that granting the exception for the installation, as proposed, will not adversely affect the safety of the public.

[(i) For good cause shown, LP-Gas Operations may grant a temporary exception of 30 days or less to the examination requirements for company representatives and operations supervisors. Good cause includes but is not limited to death of a sole proprietor or partner. Applicants for temporary exceptions shall comply with applicable safety requirements and LP-Gas Operations shall obtain information showing that the exception will not be hazardous to the public.]

(h) [(j)] A request for an exception shall expire if it is inactive for three months after the date of the letter in which the applicant was notified by AFS [LP-Gas Operations] of an incomplete request. Additional time may be granted upon request if needed to generate engineering results or calculations. The applicant may restart the application process.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004410

Haley Cochran

Rules Attorney, Office of the General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§14.2014 - 14.2016, 14.2022, 14.2037

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2014.Military Fee Exemption.

§14.2015.Penalty Guidelines for LNG Safety Violations.

§14.2016.Licensing Requirements.

§14.2022.Denial, Suspension, or Revocation of Licenses or Certifications, and Hearing Procedure.

§14.2037.Components of LNG Stationary Installations Not Specifically Covered.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004409

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER B. GENERAL RULES FOR ALL STATIONARY LNG INSTALLATIONS

16 TAC §§14.2101, 14.2102, 14.2104, 14.2110, 14.2116, 14.2119, 14.2122, 14.2125, 14.2131, 14.2137

The Commission proposes the amendments and new rule under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2101.System [Uniform] Protection Requirements.

(a) In addition to NFPA 59A §§12.9.3 and 13.2.3, this [This] section applies to the protection from tampering and damage of stationary LNG installations, including LNG transfer systems, dispensing systems, and storage containers.

(b) Fencing at LNG stationary installations shall comply with the following:

(1) Fencing material shall be solid construction of noncombustible material or chain link type with wire at least 12 1/2 American wire gauge in size.

(2) Fencing shall be at least six feet in height at all points. Fencing may be five feet in height when topped with at least three strands of barbed wire, with the strands four inches apart.

(3) Uprights, braces, and cornerposts of the fence shall be composed of noncombustible material.

(4) Uprights, braces, and cornerposts of the fence shall be anchored in concrete a minimum of 12 inches below the ground.

(5) All fenced enclosures shall have at least one gate suitable for ingress and egress. All gates shall be locked whenever the area enclosed is unattended.

(6) A minimum clearance of two feet shall be maintained between the fencing and any part of an LNG transfer system, dispensing system, or storage container that is part of a stationary installation.

(7) Fencing which is located more than 25 feet from any point of the LNG transfer system, dispensing system, or storage containers shall be designated as perimeter fencing. If the LNG transfer system, dispensing system, or storage container is located inside perimeter fencing and is subject to vehicular traffic, it shall be protected against damage according to subsection (c) of this section.

(8) The storage and compression area must be completely enclosed by fencing.

(9) Where fencing is not used to protect the installation, then valve locks, a means of locking the electric control for the compressors, or other suitable means shall be provided to prevent unauthorized withdrawal of CNG.

(c) Guardrails at LNG stationary installations shall comply with the following:

(1) Vertical supports for guardrails shall be at least four-inch concrete-filled schedule 40 steel pipe or material with equal or greater strength. The vertical supports shall be capped on top, anchored in concrete at least 36 inches below the ground, and rise at least 30 inches above the ground. Supports shall be spaced four feet apart or less.

(2) The top of the horizontal guardrailing shall be secured to the vertical supports at least 30 inches above the ground. The horizontal guardrailing shall be at least three-inch Schedule 40 steel pipe or other material with equal or greater strength. The horizontal guardrailing shall be welded or bolted to the vertical supports with bolts of sufficient size and strength to prevent damage to the protected equipment under normal conditions including the nature of the traffic to which the protected equipment is subjected.

(3) Openings in the horizontal guardrailing shall not exceed 36 inches. Only one opening is allowed on each side of the guardrailing. A means of temporarily removing the horizontal guardrailing and/or vertical supports to facilitate the handling of heavy equipment may be incorporated into the horizontal guardrailing and vertical supports. In no case shall the protection provided by the horizontal guardrailing and vertical supports be decreased. Transfer hoses from the bulkhead shall be routed only over the horizontal guardrailing or through the 45-degree opening in front of the bulkhead.

(4) A minimum clearance of 24 inches shall be maintained between the railing and any part of an LNG transfer system, dispensing system, or storage container.

(d) [(b)] Protection shall be maintained in good condition at all times in accordance with the standards set forth in this section. AFS [LP-Gas Operations] may impose additional requirements to ensure the safety of personnel and the general public.

(e) [(c) Stationary LNG installations shall be protected from tampering and damage by either fencing or guardrails, or a combination of both as specified in this section.] The operating end of each [the] container, including the material handling equipment and the entire dispensing system, and any part of the LNG transfer system, dispensing system, or storage container which is exposed to collision damage or vehicular traffic shall be protected from this type of damage [by the vehicular traffic to which it is normally exposed. The protection shall extend at least 24 inches beyond any part of the LNG transfer system, dispensing system, or storage container].

[(d) Stationary LNG installations may use fencing which is located more than 25 feet from any point of the LNG transfer system, dispensing system, or storage containers. If such perimeter fencing is used, the LNG transfer system, dispensing system, or storage containers shall also be protected from the normal vehicular traffic to which they are subjected by guardrails at the operating end of the equipment, including all material handling equipment. Guardrails shall be located at least 24 inches beyond any part of the protected equipment which is exposed to vehicular traffic.]

[(e) Fencing at LNG stationary installations shall comply with the following:]

[(1) Fencing material shall be solid construction of noncombustible material or chain link with wire at least 12 1/2 American wire gauge in size.]

[(2) Fencing shall be at least six feet in height at all points. Fencing may be five feet in height when topped with at least three strands of barbed wire, with the strands four inches apart.]

[(3) Uprights, braces, and cornerposts shall be composed of noncombustible material if located within the minimum distances specified for ignition sources or combustible materials set forth in §14.2110 of this title (relating to LNG Container Installation Distance Requirements) for the enclosed LNG transfer system, dispensing system, or LNG containers.]

[(4) A minimum clearance of 24 inches shall be maintained between the fencing and any part of an LNG transfer system, dispensing system, or storage container that is part of a stationary installation.]

[(f) Guardrails at LNG stationary installations shall comply with the following:]

[(1) Vertical supports for guardrails shall be at least four-inch concrete-filled schedule 40 steel pipe or material of equal or greater strength. The vertical supports shall be capped on top, anchored in concrete at least 36 inches below the ground, and rise at least 30 inches above the ground. Supports shall be spaced four feet apart or less.]

[(2) The top of the horizontal guardrailing shall be secured to the vertical supports at least 30 inches above the ground. The horizontal guardrailing shall be at least three-inch schedule 40 steel pipe or other material with equal or greater strength. The horizontal guardrailing shall be welded or bolted to the vertical supports with bolts of sufficient size and strength to prevent damage to the protected equipment under normal conditions including the nature of the traffic to which the protected equipment is exposed.]

[(3) Openings in the horizontal guardrailing shall not exceed 36 inches. A means of temporarily removing the horizontal guardrailing and vertical supports to facilitate the handling of heavy equipment may be incorporated into the horizontal guardrailing and vertical supports. In no case shall the protection provided by the horizontal guardrailing and vertical supports be decreased. Transfer hoses from the bulkhead shall be routed only over the horizontal guardrailing or through the 45-degree opening in front of the bulkhead.]

[(4) A minimum clearance of 24 inches shall be maintained between the railing and any part of an LNG transfer system, dispensing system, or storage container.]

(f) [(g)] Stationary LNG installations shall comply with the sign and lettering requirements specified in Table 1 of this section and the following:

Figure: 16 TAC §14.2101(f) (.pdf)

[Figure: 16 TAC §14.2101(g)]

(1) Unless colors are specified, lettering shall be a color in sharp contrast to the background color of the sign and shall be easily readable.

(2) Signs shall be visible from each point of transfer;

(3) Signs on emergency shutdown devices shall be permanently affixed;

(4) Signs bearing the words, "NATURAL GAS," shall be located on all operating sides of dispensers; and

(5) Signs indicating the licensee's name shall be located at either the vehicle dispenser or refueling area, or at the loading or unloading area.

(g) [(h)] At least two monitoring sensors shall be installed at all stationary installations to detect hazardous levels of LNG. Sensors shall activate at not more than 25% of the lower flammability limit (LFL) of LNG. If the level exceeds one-fourth of the LFL, the sensor shall either shut the system down or activate an audible and visual alarm. The number of sensors to be installed shall comply with the area of coverage for each sensor and the size of the installation. The sensors shall be installed and maintained in accordance with the manufacturer's instructions.

§14.2102.Installation and Maintenance.

All LNG containers, valves, dispensers, accessories, piping, transfer equipment, and gas utilization equipment shall be installed and maintained in safe working order according to the manufacturer's instructions and the rules in this chapter. If any one of the LNG storage containers, valves, dispensers, accessories, piping, transfer equipment, gas utilization equipment, and appliances is not in safe working order, AFS may require that the installation be immediately removed from LNG service and not be operated until the necessary repairs have been made.

§14.2104.Testing of Containers [Uniform Safety Requirements].

(a) In order to determine the safety of a container, AFS [LP-Gas Operations] may require that the licensee or operator of the container submit a copy of [request ] the manufacturer's data report on that container. AFS [LP-Gas Operations] may also require [request] that the container and assembly [containers and assemblies ] be tested [examined] by a Category 15, 20, or 50 licensee and [equipped for and experienced in the testing of LNG containers and equipment. The Category 15, 20, or 50 licensee shall file] a comprehensive report on the [its] findings submitted to AFS [with LP-Gas Operations]. This requirement may be applied even though an acceptable LNG Form 2023 has been received [is on file with LP-Gas Operations].

(b) Any stationary LNG container previously in LNG service brought into Texas or which has not been subject to continuous LNG pressure or inert gas pressure shall be inspected by a currently licensed Category 15, 20, or 50 licensee to determine if the container shall be leak-tested or re-certified. A copy of the inspector's written report shall be filed with AFS [LP-Gas Operations]. The container shall not be used until the appropriate leak test or certification process determines the container is safe for LNG service [LP-Gas Operations grants approval].

(c) Any stationary LNG container which has been subject to continuous LNG or inert gas pressure may not require testing [need not be tested] prior to installation provided the licensee or operator of the container files [an acceptable] LNG Form 2023 at the time [is filed with LP-Gas Operations when] LNG Form 2500 is submitted for any facility requiring submission of a site plan in accordance with §14.2040 of this title (relating to Filings for Stationary LNG Installations) [plans and specifications].

(d) AFS may remove a container from LNG service or require ASME acceptance of a container at any time if AFS determines that the nameplate is loose, unreadable, or detached, or if it appears to be tampered with or damaged in any way and does not contain at a minimum the items specified in subsection (a) of this section. [When installed for use, containers shall not be stacked one upon another except when designed by the manufacturer for stacking.]

§14.2110.LNG Container Installation Distance Requirements.

[(a) LNG containers shall be installed in accordance with the following minimum distance requirements:]

[(1) Containers with aggregate water capacities up to 15,540 gallons shall be located at least 25 feet from any building, property line, stationary ignition sources, or other aboveground flammable liquids;]

[(2) Containers with aggregate water capacities from 15,541 to 93,240 gallons shall be located at least 50 feet from any building, property line, stationary ignition sources, or other aboveground flammable liquids;]

[(3) Containers with aggregate water capacities of 93,241 gallons or more shall be located at least 100 feet from any building, property line, stationary ignition sources, or other aboveground flammable liquids.]

[(4) Underground LNG containers shall be located at least 15 feet apart, regardless of size.]

[(5) LNG dispensers or points or transfer shall be located at least 25 feet from the nearest building not associated with the LNG facility and from any line of adjoining property that can be built upon.]

(a) [(b)] Operating industrial trucks with only one container mounted on each truck may be stored inside buildings. Extra containers shall not be stored inside buildings. Operating industrial trucks shall be stored in an area that will reduce the likelihood of an accident. Service valves shall be closed whenever a truck with a mounted container is stored. A venting system shall be used any time a vehicle not in operation is inside a building to allow safe relief valve venting.

(b) [(c)] In addition to NFPA 52 §13.5, stationary [Stationary] LNG containers and piping shall not be placed in the area directly beneath or above an electric transmission, distribution, or customer service line and the area six feet to either side of that line. If this distance is not adequate to prevent the line and the associated voltage from contacting the LNG container in the event of breakage of any conductor, then other suitable means of protection designed and constructed to prevent such contact with the container may be used if approval is received from AFS [LP-Gas Operations]. The request for approval shall be in writing and shall specify the manner in which the container will be protected from contact, including specifications for the materials to be used. If AFS [LP-Gas Operations] does not approve the proposed protection, then the container shall be located a sufficient distance from the line to prevent such contact.

(c) When installed for use, containers shall not be stacked one upon another except when designed by the manufacturer for stacking.

(d) Welding, cutting, and similar operations shall be prohibited within 25 feet of the container and the transfer area during transfer operations and shall be conducted only as specifically authorized in a manner to prevent accidental ignition of LNG or flammable fluids.

§14.2116.Venting [Transfer] of LNG.

[(a)] Venting of LNG is prohibited as part of routine activities, except for the following:

(1) as provided for in §14.2119 of this title (relating to Transport Vehicle Loading and Unloading Facilities and Procedures); and

(2) through a trycock installed on a stationary storage tank during filling of the tank.

[(b) LNG being transferred into stationary storage containers shall be compatible in composition or temperature and density with the LNG already in the container. When making transfers into fueling facility containers, the LNG shall be transferred at a pressure that will not exceed the set pressure of the pressure relief device.]

[(c) When the composition or temperature and density are not compatible, measures shall be taken to prevent an excessive rate of vapor evolution.]

[(d) At least one licensed or certified individual shall be in attendance while unloading is in progress.]

[(e) Ignition sources shall not be permitted within 25 feet of the transfer area or within the distances specified as classified areas in Table 1 of §14.2513 of this title (relating to Electrical Equipment) while transfer of LNG is in progress.]

[(f) Measuring instruments shall be provided to determine that containers are not overfilled.]

§14.2119.Transport Vehicle Loading and Unloading Facilities and Procedures.

[(a)] In addition to NFPA 59A §11.6, transport [Transport] vehicle loading and unloading facilities shall meet the following requirements:

[(1) Rack structures shall be constructed of noncombustible material such as steel or concrete.]

(1) [(2)] Transfer piping, pumps, and compressors shall be installed with the following protective measures:

(A) protection from damage from vehicle movements in compliance with the guardrail and fencing requirements of §14.2101 of this title (relating to System [Uniform] Protection Requirements);

(B) isolation valves at both ends of containers with less than 2,000 gallon capacity, and a remote operating valve, automatic closure, or check valve to prevent backflow on containers of 2,000 gallons or more capacity;

[(C) isolation valving and bleed connections to depressurize hoses and arms and minimize venting before disconnecting;]

[(D) hoses and arms equipped with a shutoff valve at the free end;]

(C) [(E)] a check valve on piping for liquid transfer to minimize accidental release; and

(D) [(F)] a line relief valve between every pair of isolation valves.

[(3) Where multiple products are loaded or unloaded at the same location, loading arms, hoses, and manifolds shall be marked to indicate the product or products handled by each system.]

(2) [(4)] Operating status indicators shall be provided in the transfer area.

[(b) Written procedures covering normal transfer and emergency operating procedures shall be available for all transfer operations. The procedures shall be kept current and available to all employees engaged in transfer operations.]

[(c) Prior to beginning transfer operations, the following checks shall be made:]

[(1) Gauge readings shall be obtained or inventory established to prevent overfilling of the receiving vessel.]

[(2) Transfer connections shall be checked to ensure they are gastight and liquidtight.]

[(3) Unless required for transfer operations, LNG or flammable liquid transport vehicle engines shall be turned off. Brakes shall be set and wheels chocked to prevent movement of the vehicle prior to connecting for transfer. The engine shall not be started until the transport vehicle has been disconnected and any released vapors have dissipated.]

[(4) Prior to loading LNG into a transport vehicle tank which does not have a positive pressure or is not in exclusive LNG service, a test shall be made to determine the oxygen content in the receiving container. If the oxygen content in either case exceeds 1.0% by volume, the container shall not be loaded until suitably purged.]

[(5) An LNG transport vehicle shall be positioned prior to transfer so that it can exit the area without backing when the transfer operation is complete.]

[(d) During transfer operations, the following checks shall be made:]

[(1) Levels shall be checked during the transfer operations.]

[(2) Pressure and temperature conditions shall be observed during the transfer operations. If any unusual variance in pressure occurs, transfer shall be stopped until the cause has been determined and corrected.]

[(e) No repair shall be performed on the transfer system while transfer is taking place.]

§14.2122.[Transfer Systems, Including Piping,] Pumps[,] and Compressors[,] Used for LNG and Refrigerants.

[(a) Transfer systems and pumps used for transfer of LNG and refrigerants shall be provided with means for precooling to reduce the effect of thermal shock and overpressure.]

[(b) Check valves shall be provided as required to prevent backflow in transfer systems and shall be located as close as practicable to the point of connection to any system from which backflow might occur.]

[(c) In addition to a locally mounted device to shut down the pump or compressor drive, a readily accessible, remotely located device shall be provided at least 25 feet away from the equipment to shut down the pump or compressor in case of emergency. The device shall be marked in accordance with the table in §14.2101 of this title (relating to Uniform Protection Requirements). Remotely located pumps and compressors used for loading or unloading tank vehicles shall be provided with shut-down controls at the transfer area and at the pump or compressor site.]

[(d)] In addition to NFPA 59A §11.8, pressure [Pressure] gauges shall be installed on each pump and compressor discharge.

[(e) Valves shall be installed so that each pump or compressor can be isolated for maintenance. Where pumps or centrifugal compressors are installed for operation in parallel, each discharge line shall be equipped with a check valve.]

[(f) Pumps and compressors shall be provided with pressure relief devices to limit the discharge pressure to their maximum allowable working pressure.]

§14.2125.Hoses and Arms.

[(a) Hoses and arms used for transfer shall be suitable for the temperature and pressure of the operating conditions. Hoses shall be designed to have a bursting pressure of at least five times the maximum allowable working pressure of the equipment to which it is attached.]

[(b) Loading hoses or arms shall be supported to prevent displacement of the hoses and arms that results in greater stresses than those allowed in Appendix A of ANSI B31.3.]

[(c)] In addition to NFPA 59A §11.8, couplings [Couplings] used for connection of a hose or arm shall be suitable for operating conditions and shall be designed for frequent coupling and uncoupling.

[(d) Hoses shall be tested at least annually to the setting of the relief valve that protects the hose.]

[(e) Hoses shall be visually inspected for damage or defects before each use and shall not be used if any damage or defect is found.]

§14.2131.Fire Protection.

[(a) Fire protection shall be provided for all LNG facilities, as determined by sound fire protection engineering principles, analysis of local conditions, hazards within the facility, and exposure to or from other property. The evaluation shall determine at a minimum type, quantity, and location of:]

[(1) equipment necessary for the detection and control of fires, leaks, and spills of LNG, flammable refrigerants, or flammable gases;]

[(2) equipment necessary for the detection and control of potential non-process and electrical fires;]

[(3) the methods necessary for protection of the equipment and structures from the effects of fire;]

[(4) fire protection water systems;]

[(5) fire extinguishing and other fire control equipment;]

[(6) the availability and duties of employees and the availability of local emergency response organizations during an emergency; and]

[(7) the protective equipment and special training needed by employees for their emergency duties.]

[(b) A detailed emergency response manual shall be prepared for potential emergency conditions. The procedures shall include but not be limited to:]

[(1) shut-down or isolation of all or part of the equipment to ensure that the escape of gas or liquid is promptly stopped or reduced as much as possible;]

[(2) use of fire protection equipment;]

[(3) notification of emergency response organizations and public authorities;]

[(4) first aid; and]

[(5) duties of employees.]

(a) [(c)] The emergency procedure manual required in NFPA 59A §13.18.3.1 shall be available in the operating area and shall be updated as required by changes in equipment or procedures.

[(d) Employees engaged in LNG activities shall be trained in emergency duties and procedures. Refresher training shall be conducted at least once every two years.]

[(e) Fire control measures shall be coordinated with the local fire and emergency response organizations.]

(b) [(f)] In addition to NFPA 59A §12.7, safety [Safety] and fire protection equipment shall be visually inspected at least once a month and tested at least once a year. Documentation shall be maintained on inspections and tests for at least two years or consistent with other safety record retention schedules, whichever is greater.

[(g) Maintenance on fire control equipment shall be scheduled so that a minimum of equipment is out of service at any one time and fire protection safety is not compromised. Access routes for movement of fire control equipment to an LNG fueling facility shall be maintained at all times.]

[(h) Fire extinguishing and other fire control systems shall follow the local fire marshal's requirements and recommendations for the protection of specific hazards.]

[(i) Dry chemical fire extinguishers suitable for extinguishing gas fires shall be provided at each stationary LNG installation.]

§14.2137.Employee Safety and Training.

[(a) Employees shall be advised of the hazards relative to LNG facility operations.]

[(b) Protective clothing and equipment shall be provided to employees for both normal operations and emergency response.]

(a) [(c)] Employees who handle and dispense LNG shall be trained in proper handling, operating duties, and procedures.

(b) [(d)] Employees shall be trained upon employment and as needed thereafter, but no less than every two years. Training shall include the following:

(1) information on the nature, properties, and hazards of LNG in both the liquid and gaseous phases;

(2) specific instructions on the facility equipment to be used;

(3) use and care of protective equipment and clothing;

(4) standard first aid;

(5) response to emergency situations such as fire, leaks, and spills;

(6) good housekeeping practices;

(7) the emergency response plan; and

(8) evacuation and fire drills.

[(e) Licensees or ultimate consumers shall retain employee safety training records for the past four years.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004412

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§14.2107, 14.2113, 14.2128, 14.2134, 14.2140

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2107.Stationary LNG Storage Containers.

§14.2113.Maintenance Tanks.

§14.2128.Communications and Lighting.

§14.2134.Container Purging Procedures.

§14.2140.Inspection and Maintenance.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004411

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER D. GENERAL RULES FOR LNG FUELING FACILITIES

16 TAC §§14.2304, 14.2310, 14.2313, 14.2314, 14.2319

The Commission proposes the amendments and new rule under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2304.General Facility Design.

[(a) LNG fueling facilities shall be designed with provisions for securing all equipment in accordance with §14.2101 of this title (relating to Uniform Protection Requirements).]

[(b) Structures and support of LNG fueling facility equipment, piping, controls, and tanks shall be constructed of noncombustible material.]

[(c) Dikes, grading, or diversion curbs shall be provided to prevent combustible or hazardous liquids from encroaching on the LNG refueling facility.]

(a) [(d)] LNG shall not be vented to the atmosphere under normal operations unless the vent leads to a safe point of discharge. Vent pipes or stacks shall have the open end suitably protected to prevent entrance of rain, snow, and other foreign material. Vent stacks shall have provision for drainage.

[(e) Instructions identifying the location and operation of emergency controls shall be conspicuously posted in the facility area.]

[(f) LNG fueling facility containers, liquid impoundment areas, and points of transfer shall be located according to the distances specified in §14.2110 of this title (relating to LNG Container Installation Distance Requirements).]

[(g) LNG fueling facility containers may be sited above or below grade. Soil susceptible to freezing from contact with containers shall be heated directly or protected with an air space.]

[(h) Containers having outer jackets made of materials subject to corrosion shall be protected against corrosion.]

[(i) Vehicles delivering LNG to a facility or vehicles being fueled from a facility shall not be considered ignition sources. Vehicles containing fuel-fired equipment, such as recreational vehicles and catering trucks, shall be considered ignition sources unless the fuel-fired equipment is shut off completely before the vehicle enters an area in which ignition sources are prohibited.]

[(j) LNG fueling facilities which transfer LNG at night shall have permanent lighting at points of transfer and operation, including at least two lights with a total of at least two footcandles of power.]

(b) [(k)] Temperature monitoring systems shall be provided where the foundations supporting cryogenic containers and equipment could be adversely affected by freezing or frost heaving of the ground.

§14.2310.Emergency Refueling.

(a) Licensees and nonlicensees, such as mass transit authorities, may use a mobile refueling vehicle for emergency refueling provided it complies with the following requirements:

(1) The gross vehicle weight (GVW) shall not exceed the GVW rating. Installation of the container shall not adversely affect the vehicle.

(2) The vehicle used to transport the container shall comply with all DOT and Texas placarding requirements.

(3) The LNG cargo container shall have a maximum water capacity of 200 gallons.

(4) The container, fittings, and transfer equipment shall be properly secured against displacement.

(b) The individual performing the transfer of LNG shall be properly trained in all aspects of LNG transfer.

(c) Prior to the mobile refueling vehicle being placed into service, the licensee [or non-licensee] shall file with AFS [LP-Gas Operations] a drawing showing the mounting, type of container, water capacity of the container, type of vehicle to be used, and the method of mounting. The vehicle shall not be placed into service until AFS [LP-Gas Operations] ensures that it complies with the applicable rules.

(d) Emergency refueling vehicles are not required to be registered with AFS [LP-Gas Operations].

§14.2313.Fuel Dispensing Systems.

(a) Compliance with NFPA 52 §10.4 or requirements of this section does not ensure conformity with other state and federal regulations, such as those of the Texas Commission on Environmental Quality or the United States Environmental Protection Agency. Retail LNG dispensers shall comply with the applicable weights and measures requirements of the Texas Department of Agriculture relating to dispensing accuracy.

(b) All appurtenances [Appurtenances] and equipment placed into LNG service shall be certified, marked, or listed by a nationally recognized laboratory such as Underwriters Laboratory (UL), Factory Mutual (FM), CSA International or other such laboratories approved by AFS [Category 15, 20, or 50 licensee] unless:

(1) the appurtenances or equipment are specifically prohibited for use by another section of [the rules in] this chapter; or

(2) there is no test specification or procedure developed by a testing laboratory for the appurtenances or equipment.

(c) Appurtenances and equipment that cannot be [are labeled but not] listed but [and] are not prohibited for use by the rules in this chapter shall be acceptable [and safe] for LNG service over the full range of pressures and temperatures to which they will be subjected under normal operating conditions.

(d) The licensee or operator of the appurtenance or equipment shall maintain [LP-Gas Operations may require any] documentation sufficient to substantiate any claims made regarding the safety of any valves, fittings, and equipment and shall, upon request, furnish copies to AFS.

[(e) Drive-away protection shall be provided.]

[(f) Emergency shut-down devices shall be distinctly marked for easy recognition according to the requirements of Table 1 of §14.2101 of this title (relating to Uniform Protection Requirements) and shall activate a valve installed at the dispensing area that shuts off the power and gas supply to the dispensers. ESD devices shall be located as follows:]

[(1) For containers with water capacity of 93,240 gallons or less, an ESD device shall be located between 35 and 50 feet from the container.]

[(2) For containers with water capacity of 93,241 gallons or more, an ESD device shall be located between 60 and 75 feet from the container.]

(e) [(g)] Manually operated container valves shall be provided for each container.

(f) [(h)] Manually operated shutoff valves shall be installed in manifolds as close as practicable to a container or group of containers.

[(i) The use of hoses or arms in a fueling installation is limited to:]

[(1) a vehicle fueling hose;]

[(2) an inlet connection to compression equipment; or]

[(3) a section of metallic hose not exceeding 36 inches in length in a pipeline to provide flexibility where necessary. Metallic hose shall be installed so that it will be protected against damage and be readily visible for inspection. The manufacturer's identification shall be retained for each section of metallic hose used.]

[(j) When a hose or arm of nominal three-inch diameter or larger is used for liquid transfer, or nominal four-inch diameter or larger is used for vapor transfer, an emergency shutoff valve shall be installed in the piping of the transfer system less than ten feet from the nearest end of the hose or arm. If the flow is away from the hose, a check valve may be used as the shutoff valve. If a liquid or vapor line has two or more legs, an emergency shutoff valve shall be installed in each leg.]

[(k) The fill line on storage containers shall be equipped with a backflow check valve to prevent discharge of LNG from the container in case of line, hose, or fitting rupture.]

[(l) A fueling connection and mating vehicle receptacle shall be used to transfer LNG or gas vapor to or from the vehicle.]

[(m) An interlock device shall be provided so that the hose coupling cannot be released while the transfer line is open. Interlock devices are not required for transports when transferring fuel to a stationary tank.]

[(n) The maximum delivery pressure shall not exceed the maximum allowable working pressure of the vehicle and fuel tanks.]

[(o) Where excess flow check valves are used, the closing flow shall be less than the flow rating of the piping system that would result from a pipeline rupture between the excess flow valve and the equipment downstream of the excess flow check valve.]

§14.2314.Removal from LNG Service.

(a) If AFS determines that any LNG container or installation constitutes an immediate danger to the public health, safety, and welfare, AFS shall require the immediate removal of all LNG and/or the immediate disconnection by a properly licensed company to the extent necessary to eliminate the danger. This may include equipment or any part of the system including the service container. A warning tag shall be attached by AFS until the unsafe condition is remedied. Once the unsafe condition is remedied, the tag may be removed by an AFS inspector or by the licensee if authorized by AFS.

(b) If the affected entity disagrees with the removal from service and/or placement of a warning tag the entity may request a review of AFS' decision within 10 calendar days. Within 10 business days, AFS shall notify such entity of its finding in writing, stating the deficiencies. If the entity disagrees, the entity may request or AFS on its own motion may request a hearing. Such installation shall be brought into compliance or removed from service until such time as the final decision is rendered by the Commission.

§14.2319.Automatic Fuel Dispenser Safety Requirements.

(a) Automatic fuel dispensers shall be fabricated of material suitable for LNG and resistant to the action of LNG under service conditions. Pressure containing parts shall be stainless steel, brass, or other equivalent cryogenic material. Aluminum may be used for approved meters.

(b) Electric installations within dispenser enclosures and the entire pit or open space beneath dispensers shall comply with NEC, Class 1, Group D, Division 1, except for dispenser components located at least 48 inches above the dispenser base which NEC states are intrinsically safe.

(c) Valves, metering equipment, and other related equipment installed on automatic dispensers shall meet all applicable requirements of the rules in this chapter.

(d) In addition to NFPA 52 §10.4.1, automatic [Automatic] dispensers shall be protected from damage by vehicle collision by fencing and guardrails installed in accordance with §14.2101 of this title (relating to System [Uniform] Protection Requirements).

(e) A device shall be installed in the liquid piping so that displacement of an automatic dispenser will result in the displacement of such piping on the downstream side of the device.

(f) The fueling nozzle shall prevent LNG from being discharged unless the nozzle is connected to the vehicle.

(g) A key, card, or code system shall be used to activate the automatic dispenser.

(h) Automatic dispensers shall incorporate cutoff valves with opening and closing devices which ensure the valves are in a closed position when dispensers are deactivated.

(i) LNG fuel storage installations which include automatic dispensers shall be equipped with an emergency shut-down device for the entire LNG installation located at least 20 feet from the nearest dispenser or storage area. The emergency shut-down device shall be distinctly marked for easy recognition in compliance with the requirements of §14.2101 of this title [(relating to Uniform Protection Requirements)].

(j) If automatic dispensers are to be used during hours of darkness, permanent adequate lighting shall be provided to facilitate proper operations.

(k) Fuel dispensers, including automatic dispensers, may be operated only by an individual who has been properly trained.

(1) The licensee owning, operating, or servicing a CNG fuel dispensing facility shall ensure the safe operation of the system and provide training to users.

(2) Step‑by‑step operating instructions provided by the manufacturer shall be posted at or on each automatic dispenser, readily visible to the operator during transfer operations. The instructions shall describe each action necessary to operate the automatic dispenser and include the location of and procedure for activating emergency shutoff equipment.

(3) Each person or entity who operates a fuel dispenser, excluding an automatic dispenser, shall be provided with written instructions and safe operating procedures by the licensee. The person operating the dispenser should be cautioned to study and preserve such instructions and procedures.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004414

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§14.2307, 14.2316, 14.2322, 14.2325, 14.2328

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2307.Indoor Fueling.

§14.2316.Filings Required for Installation of Fuel Dispensers.

§14.2322.Protection of Automatic and Other Dispensers.

§14.2325.LNG Transport Unloading at Fueling Facilities.

§14.2328.Training, Written Instructions, and Procedures Required.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004413

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER E. PIPING SYSTEMS AND COMPONENTS FOR ALL STATIONARY LNG INSTALLATIONS

16 TAC §§14.2404, 14.2407, 14.2410, 14.2413, 14.2419, 14.2422, 14.2425, 14.2428, 14.2431, 14.2434, 14.2437, 14.2440

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2404.Piping Materials.

§14.2407.Fittings Used in Piping.

§14.2410.Valves.

§14.2413.Installation of Piping.

§14.2419.Welding at Piping Installations.

§14.2422.Pipe Marking and Identification.

§14.2425.Pipe Supports.

§14.2428.Inspection and Testing of Piping.

§14.2431.Welded Pipe Tests.

§14.2434.Purging of Piping Systems.

§14.2437.Pressure and Relief Valves in Piping.

§14.2440.Corrosion Control.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004415

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §14.2416

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2416.Installation of Valves.

[(a) Valves shall be installed to prevent leaking or malfunction due to freezing. Cryogenic liquid valves shall be installed at an angle greater than 45 degrees from horizontal.]

[(b) Isolation valves shall be provided on container, tank, and vessel connections, except for connections:]

[(1) for relief valves. Shutoff valves are only permitted at connections for relief valves in accordance with ASME Code, Section VIII, Division 1, Paragraphs UG-125(d) and Appendix M, Paragraphs M-5 and M-6;]

[(2) for liquid level alarms required by §14.2501 of this title (relating to Liquid Level Gauging); or]

[(3) that are blind-flanged or plugged.]

[(c) Shutoff valves shall be located inside the impounding area as close as practicable to the containers, tanks, and vessels.]

[(d) Internal valves shall be designed and installed so that any failure of the nozzle will be downstream of the seat of the internal valve itself.]

(a) [(e)] In addition to NFPA 59A ' ' 9.4.2.3 and 9.4.2.4, the [The] number of shutoff valves installed shall be kept to the minimum required for efficient and safe operation of each facility.

(b) [(f)] Piping systems shall be designed to limit the contained volume that could be discharged in the event of a piping system failure. Sufficient valves which can be operated both at the installed location and from a remote location to shut down the process and transfer systems in the event of an emergency shall be installed.

[(g) Container connections larger than one-inch pipe size through which liquid can escape shall be equipped with:]

[(1) a valve which closes automatically if exposed to fire; or]

[(2) a remotely controlled, quick-closing valve which shall remain closed except during the operating period;]

[(3) a fail-closed valve; or]

[(4) a check valve on filling connections.]

(c) [(h)] ESD valves shall be single-purpose valves.

[(i) Valves and valve controls shall be designed to permit operation under icing conditions, if such conditions are possible.]

[(j) Powered controls shall be provided for emergency shutoff valves that would require excessive time to manually operate during an emergency or if the valve is eight inches or larger in size. A means for manual operation shall also be provided.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004416

Heley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER F. INSTRUMENTATION AND ELECTRICAL SERVICES

16 TAC §§14.2501, 14.2504, 14.2507, 14.2510, 14.2513, 14.2516

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2501.Liquid Level Gauging.

§14.2504.Pressure Gauges.

§14.2507.Vacuum Gauges.

§14.2510.Emergency Failsafe.

§14.2513.Electrical Equipment.

§14.2516.Electrical Grounding and Bonding.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004417

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER G. ENGINE FUEL SYSTEMS

16 TAC §§14.2604, 14.2610, 14.2619, 14.2625, 14.2634, 14.2637, 14.2640

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2604.System Component Qualification.

[(a) Components in the engine compartment normally in contact with LNG shall be suitable for service over a range of temperatures of -260 degrees Fahrenheit to +250 degrees Fahrenheit. Other components not normally in contact with LNG shall be suitable for service over a range of -40 degrees Fahrenheit to +250 degrees Fahrenheit.]

[(b) Components outside the engine compartment normally in contact with LNG shall be suitable for service over a range of temperatures from -260 degrees Fahrenheit to +180 degrees Fahrenheit. Other components not normally in contact with LNG shall be suitable for service over a range from -40 degrees Fahrenheit to +180 degrees Fahrenheit.]

[(c)] Fuel-carrying components (excluding service valves, tubing, and fittings) shall be labeled or stamped with the following:

(1) the manufacturer's name or symbol;

(2) the model designation;

(3) the maximum allowable maximum allowable working pressure;

(4) the design temperature range;

(5) direction of flow of fuel when necessary for correct installation; and

(6) capacity or electrical rating as applicable.

§14.2610.Installation of Vehicle Fuel Containers.

(a) In addition to NFPA 52 §9.12.1.2, vehicle [Vehicle] fuel containers [shall comply with the following specifications:]

[(1) Fuel containers on vehicles other than school buses, mass transit, or other vehicles used in public transportation may be located within, below, or above the driver or passenger compartments, provided all connections to the containers are external to or sealed and vented from those compartments. The motor fuel containers installed on a special transit vehicle may be installed in the passenger compartment, provided all connections to the containers are external to or sealed and vented from those compartments.]

[(2) Fuel supply components and containers shall be mounted in a location to minimize damage from collision. No part of a container or its appurtenances shall protrude beyond any part of the vehicle at the point of installation.]

[(3) Fuel systems shall be installed with as much road or ground clearance as practicable, but not less than the minimum road or ground clearance of the vehicle when loaded to its gross vehicle weight rating. The minimum distance shall be measured from the lowest part of the fuel system.]

[(4) No portion of a fuel supply container or container appurtenance shall be located ahead of the front axle or behind the rear bumper mounting face of a vehicle. Fuel container valves shall be protected from physical damage using the vehicle structure, valve protectors, or a suitable metal shield.]

[(5) Fuel supply containers located less than eight inches from the exhaust system shall be shielded from direct heat.]

[(6) Mountings shall minimize fretting corrosion between the fuel container and the mounting system by means of rubber insulators or other suitable means.]

[(7) Fuel containers shall not be installed where they would adversely affect the driving characteristics of the vehicle.]

[(8)] [Fuel containers] on school buses, [or] mass transit vehicles, and other public transportation vehicles shall be installed on the underside of the vehicle, except as specified in subsection (c) of this section. Fuel containers on special transit vehicles shall be installed in a location which will not interfere with vehicle operation.

[(9) Fuel containers, appurtenances, and connections may be enclosed in a shroud-type structure, provided it is securely attached to the container and liquid-tight. The shroud access doors shall be secured in place by fasteners such as wing nuts or spring-loaded latches and shall not require the use of tools for removal. The use of locks on shroud access doors is prohibited.]

(b) Fuel supply containers shall be connected or mounted to comply with the following specifications:

[(1) Fuel supply container connections shall be external to or sealed and vented from the driver and passenger compartments or any space containing radio transmitters or other spark-producing equipment.]

(1) [(2)] Container brackets shall be secured to the vehicle body, bed, or frame with bolts, lock washers and nuts, or self-locking nuts of a size and strength capable of withstanding a static force in any direction of eight times the weight of a full container for vehicles with gross vehicle weights of 19,500 pounds or less, and four times the weight of a full container for vehicles with gross vehicle weights of 19,501 pounds or more. Mounting brackets shall be marked with the manufacturer's name or logo. If self-locking nuts are installed, they shall not be reused once they are removed. [Container mounting brackets shall prevent the container from jarring loose, slipping or rotating.]

[(3) Fuel supply containers shall be secured in the mounting brackets by bolts, lock washers, and nuts, or self-locking nuts of a size and strength capable of withstanding a static force applied in any direction eight times the weight of the full container for vehicles with gross vehicle weights of 19,500 pounds or less, and four times the weight of a full container for vehicles with gross vehicle weights of 19,501 pounds or more. If self-locking nuts are installed, the nuts shall not be reused once they are removed.]

[(4) The weight of the fuel container shall not be supported by the outlet, service valves, manifolds, or other fuel connections.]

(2) [(5)] Containers shall be secured to a school bus, mass transit, or special transit vehicle frame excluding the floor by container fastenings or mounting brackets described in paragraph (1) of this subsection [(b) of this section]. The fastenings or brackets shall be secured to the frame, backing plates, or other supporting structure without compromising the strength of that structure.

(c) Roof-mounted containers are allowed if the vehicle was originally designed and manufactured to have roof-mounted containers or if the original manufacturer approves the design of the structure mounting. Vehicles shall not be modified to have roof-mounted containers.

[(d) Container markings shall be readable after a container is permanently installed on a vehicle. A portable lamp or mirror may be used to read markings.]

[(e) Where an LNG container is substituted for the fuel container installed by the original manufacturer of the vehicle, whether or not that fuel container was for LNG, the LNG container shall either fit within the space in which the original fuel container was installed or comply with subsection (a) of this section.]

(d) [(f)] If necessary, a plumbing chamber door shall be provided in the sidewall of the school bus, mass transit, or special transit vehicle to allow for easy access for filling or securing the service valve in the event of an emergency. The plumbing chamber door shall be hinged and latched, but not locked.

§14.2619.Installation of Piping.

[(a) Piping that carries fuel shall be fabricated to minimize vibration and shall be shielded or installed in a protected location to prevent damage from unsecured objects.]

(a) [(b) Fuel lines shall be mounted, braced, and supported to minimize vibration and protected against damage, corrosion, or breaking due to strain or wear.] Fuel lines shall be supported at least every 21 to 27 inches.

[(c) Fuel lines passing through a panel shall be protected against abrasion by grommets or similar devices such as fittings, which shall snugly fit both the supply lines and the holes in the panel.]

[(d) Fuel lines shall have a minimum clearance of eight inches from the engine exhaust system or shall be shielded against direct heat.]

[(e) Piping or tubing shall pass through the floor of a vehicle directly beneath or adjacent to the container. If a branch line is required, the tee connection shall be in the main fuel line under the floor and outside the vehicle.]

[(f) Hydrostatic relief valves shall be installed in each section of piping or tubing in which LNG can be isolated between shutoff valves to relieve to a safe atmosphere the pressure which could develop from the trapped fuel. The pressure relief valve shall have a pressure not greater than the maximum allowable working pressure of the line it protects.]

(b) [(g)] Joint compound or tape acceptable for use with LNG shall be applied to all male pipe threads prior to assembly.

(c) [(h)] Piping and fittings shall be clean and free from cutting or threading burrs and scaling. The ends of all piping shall be reamed.

(d) [(i)] Bends in piping or tubing are prohibited if the bend weakens the pipe or tubing. Bends shall be made by bending tools designated for this purpose.

(e) [(j)] Joints or connections shall be located only in an accessible location.

[(k) Fuel connections between a tractor and trailer or other vehicle units are prohibited.]

§14.2625.Installation of Pressure Gauges.

[(a) Pressure gauges located within driver or passenger compartments shall be installed so that no gas will flow through the gauge in the event of failure. Installed gauges shall be readily visible by the driver.]

[(b)] Pressure gauges installed outside driver or passenger compartments shall be equipped with a limiting orifice, a shatter-proof dial lens, and a body relief.

[(c) Gauges shall be securely mounted, shielded, and installed in a protected location to prevent damage from vibration and unsecured objects.]

§14.2634.Vehicle Fueling Connection.

(a) Vehicle fueling connections shall provide for the reliable and secure connection of the fuel system containers to a source of LNG.

[(b) Fueling connections shall be designed for the pressure expected under normal conditions and corrosive conditions which might occur.]

(b) [(c)] Fueling connections shall prevent escape of gas when the connector is not properly engaged or becomes separated.

[(d) Refueling receptacles on engine fuel systems shall be firmly supported and shall:]

[(1) receive the fueling connector and accommodate the maximum allowable working pressure of the vehicle fuel system;]

[(2) incorporate a means to prevent the entry of dust, water, and other foreign material. If the means used is capable of sealing system pressure, it shall be capable of being depressurized before removal; and]

[(3) have a different fueling connection for each pressure base vehicle fuel system.]

§14.2637.Signs and Labeling.

(a) Signs or labels shall be readily visible before and during transfer operations, shall be weather-resistant, and shall be located as specified in Table 1 of this section.

Figure: 16 TAC §14.2637(a) (No change.)

[(b) Vehicles shall be identified with a weather-resistant diamond-shaped label located on an exterior vertical or near vertical surface on the lower right rear of the vehicle (excluding the bumper) inboard of any other markings. The label shall be at least 4 3/4 inches by 3 1/4 inches. The marking shall consist of a border and the capital letters, "LNG"; the letters shall be at least one inch tall, and be silver or white reflective luminous material on a blue or black background.]

(b) [(c)] Upon completion of a vehicle conversion, the licensee making the conversion shall affix to the vehicle an identification tag or decal in a location that is easily readable. The tag or decal shall contain letters that indicate the licensee's name, current license number, and the year and month the conversion was made.

§14.2640.System Testing.

[(a) The complete LNG engine fuel system shall be leak tested.]

[(b) After installation, the piping and connections that are subject to container pressure shall be checked with a non-ammonia soap solution or a leak detector instrument after the equipment is connected and pressurized to its 90% of the maximum allowable working pressure of the container.]

(a) [(c)] If the completed LNG engine fuel system is leak tested with natural gas, the testing shall be done under adequately ventilated conditions.

(b) [(d)] If an LNG container is involved in an accident or fire causing damage to the container, the container shall be replaced or removed and returned to a currently licensed Category 15, 20, or 50 licensee to be inspected and retested in accordance with the original manufacturer's specifications. The licensee who performs any repair, modification, or testing of a container shall file LNG Form 2008 with AFS [LP-Gas Operations] before the container is returned to service.

[(e) If a vehicle is involved in an accident or fire causing damage to any part of the LNG engine fuel system, the system shall be replaced or repaired as provided in these regulations and retested before it is returned to service.]

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004419

Haley Cochran

Rules Attorney, Office of the General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §§14.2607, 14.2613, 14.2616, 14.2622, 14.2628, 14.2631

The Commission proposes the repeals under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2607.Vehicle Fuel Containers.

§14.2613.Engine Fuel Delivery Equipment.

§14.2616.Installation of Venting Systems and Monitoring Sensors.

§14.2622.Installation of Valves.

§14.2628.Installation of Pressure Regulators.

§14.2631.Wiring.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004418

Haley Cochran

Rules Attorney, Office of the General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER H. LNG TRANSPORTS

16 TAC §§14.2701, 14.2704, 14.2705, 14.2707, 14.2710, 14.2737, 14.2746

The Commission proposes the amendments under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2701.DOT Requirements.

(a) This subchapter applies to LNG transports as defined in this chapter [transport containers] used in the transportation and distribution of LNG.

(b) LNG transports shall comply with the requirements of DOT specification MC-338 and the applicable parts of Title 49, Code of Federal Regulations, Parts 171 - 180.

§14.2704.Registration and Transfer of LNG Transports.

(a) A person who operates an LNG transport [as defined in this chapter], regardless of who owns the transport, shall register the transport with AFS [LP-Gas Operations] in the name or names under which the operator conducts business in Texas prior to the transport being used in LNG service [in Texas].

(1) To register a unit previously unregistered in Texas, the operator of the unit shall:

(A) pay to AFS [LP-Gas Operations] the $270 registration fee for each LNG transport [truck, semi-trailer, or other motor vehicle equipped with an LNG cargo tank]; [and]

(B) file a properly completed LNG Form 2007; [.]

(C) file a copy of the manufacturer's data report;

(D) file a copy of the DOT compliance sheet; and

(E) file a copy of the test required by §14.2707 of this title (relating to Testing Requirements), unless that unit was manufactured within the previous five years.

(2) To register a transport [unit] which was previously registered in Texas but for which the registration has expired, the operator of the unit shall:

(A) pay to AFS [LP-Gas Operations] the $270 registration fee;

(B) file [a properly completed] LNG Form 2007; and

(C) file a copy of the latest test results if an expired unit has not been used in the transportation of LNG for over one year or the current test has not been filed with AFS.

(3) To re‑register a currently registered unit, the licensee operating the unit shall pay a $300 annual registration fee.

(4) [(3)] To transfer a currently registered unit, the new operator [owner] of the transport shall:

(A) pay the $100 transfer fee for each unit; and

(B) file a properly completed LNG Form 2007.

(b) AFS [LP-Gas Operations] may also request an operator registering or transferring any transport have the transport tested by a test other than those required by §14.2707 of this title [unit to file a copy of the Manufacturer's Data Report or a copy of the DOT certification issued by the manufacturer and/or subframer who prepared the unit for road use, or any other documentation to show the container complies with MC-338].

(c) When all registration or transfer requirements have been met, AFS [LP-Gas Operations] shall issue LNG Form 2004 [or letter of authority] which shall be properly affixed in accordance with the placement instructions on the form [as instructed on the decal or letter or maintained on the bobtail or transport trailer]. LNG Form 2004 [or letter of authority] shall authorize the licensee or ultimate consumer to whom it has been issued and no other person to operate such unit in the transportation of LNG and to fill the transport containers.

(1) A person shall not operate an LNG transport [unit or introduce LNG into a transport container] in Texas unless the LNG Form 2004 [or letter of authority] has been properly affixed [as instructed on the decal or the letter or maintained on the bobtail or transport trailer] or unless its operation has been specifically approved by AFS [LP-Gas Operations].

(2) A person shall not introduce LNG into a transport container unless that transport bears an LNG Form 2004 or unless specifically approved by AFS.

(3) [(2)] LNG Form 2004 [or letter of authority] shall not be transferable by the person to whom it has been issued, but shall be registered by any subsequent licensee or ultimate consumer prior to the unit being placed into LNG service.

(4) [(3)] This subsection [section] shall not apply to:

(A) a container manufacturer/fabricator who introduces [from introducing] a reasonable amount of LNG into a newly constructed container in order to properly test the vessel, piping system, and appurtenances prior to the initial sale of the container. The LNG shall be removed from the transport container prior to the transport leaving the manufacturer's or fabricator's premises; or

(B) a person who introduces [introducing] a maximum of 150 gallons of LNG into a newly constructed transport container when such container will provide the motor fuel to the chassis engine for the purpose of allowing the unit to reach its destination.

(5) [(4)] AFS [LP-Gas Operations] shall not issue an LNG Form 2004 [or letter of authority] if AFS [LP-Gas Operations] or a Category 15 or 50 licensee determines that the transport is unsafe for LNG service.

§14.2705.Replacement Decals [or Letters of Authority and Fees].

If an LNG Form 2004 decal [or letter of authority] on a transport [unit] currently registered with AFS [LP-Gas Operations] is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement decal [or letter of authority] by filing LNG Form 2018B and a $50 replacement fee with AFS [LP-Gas Operations].

§14.2707.Testing Requirements.

(a) Transports [Transport container units] required to be registered with AFS [LP-Gas Operations] shall be tested at least once every five years by a Category 15, 20, or 50 licensee.

(1) Documentation of the required testing shall be filed by the Category 15, 20, or 50 licensee.

(2) The results of any test required under this section shall clearly indicate whether the transport container unit is safe for LNG service. The Category 15, 20, or 50 licensee shall send [mail] LNG Form 2008 to AFS [LP-Gas Operations] within 30 calendar days of the due date of any tests required under this section.

(3) If evidence of any unsafe condition is discovered as a result of any tests performed under this section, the transport container unit shall be immediately removed from LNG service and shall not be returned to LNG service until AFS [LP-Gas Operations ] notifies the licensee in writing that the transport container unit may be returned to LNG service.

(b) Containers shall be tested in accordance with 49 CFR §338.

(c) Containers shall be inspected for corroded areas, dents, or other conditions (including leakage under test pressure) which could render the container unsafe for LNG service.

§14.2710.Markings.

(a) LNG transports [and container delivery units in LNG service] shall be marked on each side and the rear with the name of the licensee or the ultimate consumer operating the unit. Such lettering [The name] shall be legible and [in letters] at least two inches in height and in sharp color contrast to the background. AFS [LP-Gas Operations] will determine whether the name marked on the transport [marking] is sufficient to properly identify the operator.

(b) Each school bus, special transit vehicle, mass transit vehicle, and public transportation unit shall be marked with the manual shutoff valve's location with the words "Manual Shutoff Valve." Decals or stencils are acceptable.

[(b) Other markings shall comply with other DOT marking requirements.]

[(c) If a transport unit is loaned or leased for a period of time not to exceed 30 days, the unit may have painted or permanently affixed thereon, in lieu of the name of the licensee operating the transport unit, the name of the owner of the transport unit in letters at least two inches in height.]

§14.2737.Parking of LNG Transports and Container Delivery Units, and Use of Chock Blocks.

(a) LNG transport or container delivery units shall not be parked on any public street, highway, or alley, except in an emergency, or when in connection with normal duties, meals, or rest stops. Such units shall not be parked in a congested area and shall be parked a minimum distance of 50 feet from any building, except buildings devoted exclusively to LNG activities [operations].

(b) LNG transports shall carry at least two chock blocks designed to effectively prevent the movement of the transport. These blocks shall be used any time the transport is parked and during the transfer of fuel regardless of the level of the surrounding terrain.

§14.2746.Delivery of Inspection Report to Licensee.

The transport driver of any transport unit receiving an inspection report from AFS [LP-Gas Operations] shall deliver that report to the licensee in whose name the transport unit is registered.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004421

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


16 TAC §14.2749

The Commission proposes the repeal under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2749.Issuance of LNG Form 2004 Decal.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004420

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER I. ADOPTION BY REFERENCE OF NFPA 52 (VEHICULAR GASEOUS FUEL SYSTEMS CODE)

16 TAC §§14.2801 - 14.2803

The Commission proposes the new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2801.Adoption by Reference of NFPA 52.

(a) Effective February 15, 2021, except as modified in the remaining sections of this subchapter, the Commission adopts by specific reference the provisions established by the National Fire Protection Association in its 2013 edition of the Vehicular Gaseous Fuel Systems Code, commonly referred to as NFPA 52 or Pamphlet 52. Nothing in this section or subchapter shall prevent the Commission, after notice, from adopting additional requirements, whether more or less stringent, for individual situations to protect the health, safety, and welfare of the general public. Any documents or parts of documents incorporated by reference into these rules shall be a part of these rules as if set out in full.

(b) Effective February 15, 2021, the Commission also adopts by reference all other NFPA publications or portions of those publications referenced in NFPA 52 which apply to LNG activities only. The pamphlets adopted by reference in NFPA 52 are:

(1) FPA 30A, Code for Motor Fuel Dispensing Facilities and Repair Garages, 2012 edition;

(2) NFPA 37, Standard for the Installation and Use of Stationary Combustion Engines and Gas Turbines, 2010 edition;

(3) NFPA 51B, Standard for Fire Prevention During Welding, Cutting, and Other Hot Work, 2009 edition;

(4) NFPA 54, National Fuel Gas Code, 2012 edition;

(5) NFPA 59A, Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG), 2013 edition;

(6) NFPA 70, National Electrical Code, 2014 edition;

(7) NFPA 80, Standard for Fire Doors and Other Opening Protectives, 2013 edition;

(8) NFPA 101, Life Safety Code, 2012 edition;

(9) NFPA 259, Standard Test Method for Potential Heat of Building Materials, 2013 edition;

(10) NFPA 302, Fire Protection Standard for Pleasure and Commercial Motor Craft, 2010 edition;

(11) NFPA 303, Fire Protection Standard for Marinas and Boatyards, 2011 edition;

(12) NFPA 496, Standard for Purged and Pressurized Enclosures for Electrical Equipment, 2013 edition; and

(13) NFPA 5000, Building Construction and Safety Code, 2012 edition.

§14.2802.Clarification of Certain Terms Used in NFPA 52.

(a) Authority having jurisdiction. As pertains to LNG activities in Texas, the phrase "authority having jurisdiction" defined in NFPA 52 §3.2 and referenced in other NFPA publications shall be the Railroad Commission of Texas or any of its divisions or employees, except with respect to the definitions of "approved," "labeled," and "listed" in NFPA 52 §3.2.

(b) Engineering. The Commission does not adopt language in any NFPA 52 rule such as "sound engineering practice," "accepted engineering practice," "good engineering practice," "sound engineering design," or similar language that might be understood to mean or refer to the practice of engineering. The omission of a specific NFPA 52 rule or other NFPA pamphlets containing such language from the exceptions listed in this subchapter is inadvertent and shall not be read or understood as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring a license.

§14.2803.Sections in NFPA 52 Adopted with Additional Requirements or Not Adopted.

Table 1 of this section lists certain NFPA 52 sections which the Commission adopts with additional requirements or does not adopt in order to address the Commission's rules in this chapter.

Figure: 16 TAC §14.2803 (.pdf)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004422

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


SUBCHAPTER J. ADOPTION BY REFERENCE OF NFPA 59A (STANDARD FOR THE PRODUCTION, STORAGE, AND HANDLING OF LIQUEFIED NATURAL GAS (LNG))

16 TAC §§14.2901 - 14.2903

The Commission proposes the new rules under Texas Natural Resources Code, §116.012, which authorizes the Commission to promulgate and adopt rules and standards relating to any and all aspects or phases of the compressed natural gas and liquefied natural gas industries that will protect or tend to protect the health, welfare, and safety of the general public; Texas Natural Resources Code §116.013, which allows the Commission to adopt by reference in its rules all or part of the published codes of nationally recognized societies as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of CNG or LNG components and equipment; and Texas Natural Resources Code §116.031(e), which requires a person engaging in the manufacture or fabrication of containers to register with the commission in accordance with rules adopted by the commission.

Statutory authority: Texas Natural Resources Code, §§116.012, 116.013, and 116.031.

Cross reference to statute: Texas Natural Resources Code Chapter 116.

§14.2901.Adoption by Reference of NFPA 59A.

(a) Effective February 15, 2021, except as modified in the remaining sections of this subchapter, the Commission adopts by specific reference the provisions established by the National Fire Protection Association in its 2013 edition of the Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG), commonly referred to as NFPA 59A or Pamphlet 59A. Nothing in this section or subchapter shall prevent the Commission, after notice, from adopting additional requirements, whether more or less stringent, for individual situations to protect the health, safety, and welfare of the general public. Any documents or parts of documents incorporated by reference into these rules shall be a part of these rules as if set out in full.

(b) Effective February 15, 2021, the Commission also adopts by reference all other NFPA publications or portions of those publications referenced in NFPA 59A. The pamphlets adopted by reference in NFPA 59A are:

(1) NFPA 10, Standard for Portable Fire Extinguishers, 2010 edition;

(2) NFPA 11, Standard for Low‑, Medium‑, and High‑Expansion Foam, 2010 edition;

(3) NFPA 12, Standard on Carbon Dioxide Extinguishing Systems, 2011 edition;

(4) NFPA 12A, Standard on Halon 1301 Fire Extinguishing Systems, 2009 edition;

(5) NFPA 13, Standard for the Installation of Sprinkler Systems, 2013 edition;

(6) NFPA 16, Standard for the Installation of Foam‑Water Sprinkler and Foam‑Water Spray Systems, 2011 edition;

(7) NFPA 17, Standard for Dry Chemical Extinguishing Systems, 2009 edition;

(8) NFPA 20, Standard for the Installation of Stationary Pumps for Fire Protection, 2013 edition;

(9) NFPA 22, Standard for Water Tanks for Private Fire Protection, 2008 edition;

(10) NFPA 24, Standard for the Installation of Private Fire Service Mains and Their Appurtenances, 2013 edition;

(11) NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water‑Based Fire Protection Systems, 2011 edition;

(12) NFPA 30, Flammable and Combustible Liquids Code, 2012 edition;

(13) NFPA 37, Standard for the Installation and Use of Stationary Combustion Engines and Gas Turbines, 2010 edition;

(14) NFPA 54, National Fuel Gas Code, 2012 edition;

(15) NFPA 58, Liquefied Petroleum Gas Code, 2011 edition;

(16) NFPA 59, Utility LP‑Gas Plant Code, 2012 edition;

(17) NFPA 70, National Electrical Code, 2011 edition;

(18) NFPA 72, National Fire Alarm and Signaling Code, 2013 edition;

(19) NFPA 101, Life Safety Code, 2012 edition;

(20) NFPA 274, Standard Test Method to Evaluate Fire Performance Characteristics of Pipe Insulation, 2009 edition;

(21) NFPA 385, Standard for Tank Vehicles for Flammable and Combustible Liquids, 2012 edition;

(22) NFPA 600, Standard on Industrial Fire Brigades, 2010 edition;

(23) NFPA 1221, Standard for the Installation, Maintenance, and Use of Emergency Services Communications Systems, 2013 edition;

(24) NFPA 1901, Standard for Automotive Fire Apparatus, 2009 edition;

(25) NFPA 2001, Standard on Clean Agent Fire Extinguishing Systems, 2012 edition;

(26) NFPA 5000, Building Construction and Safety Code, 2012 edition.

§14.2902.Clarification of Certain Terms Used in NFPA 59A.

(a) Authority having jurisdiction. As pertains to LNG activities in Texas, the phrase "authority having jurisdiction" defined in NFPA 59A §3.2 and referenced in other NFPA publications shall be the Railroad Commission of Texas or any of its divisions or employees, except with respect to the definitions of "approved," "labeled," and "listed" in NFPA 59A §3.2.

(b) Engineering. The Commission does not adopt language in any NFPA 59A rule such as "sound engineering practice," "accepted engineering practice," "good engineering practice," "sound engineering design," or similar language that might be understood to mean or refer to the practice of engineering. The omission of a specific NFPA 59A rule or other NFPA pamphlets containing such language from the exceptions listed in this subchapter is inadvertent and shall not be read or understood as requiring, allowing, or approving the unlicensed practice of engineering or any other professional occupation requiring a license.

§14.2903.Sections in NFPA 59A Adopted with Additional Requirements or Not Adopted.

Table 1 of this section lists certain NFPA 59A sections which the Commission adopts with additional requirements or does not adopt in order to address the Commission's rules in this chapter.

Figure: 16 TAC §14.2903 (.pdf)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004423

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


CHAPTER 15. ALTERNATIVE FUELS PROGRAMS

16 TAC §§15.1 - 15.13

The Railroad Commission of Texas proposes the repeal of 16 Texas Administrative Code Chapter 15, relating to Alternative Fuels Programs, specifically §§15.1 - 15.13, relating to Purpose; Definitions; Establishment and Duration; Availability of Funds; Eligibility; Application; Conditions of Receipt of Rebate or Incentive; Selection of Equipment and Installer; Rebate or Incentive Amount; Minimum Efficiency Factor; or Performance Standard; Verification, Safety, Disallowance, and Refund; Assignment of Rebate or Incentive; Compliance; and Complaints. The repeals are proposed pursuant to House Bill 1818, 85th Legislative Session (2017) which repealed the statute authorizing the Alternative Fuels Research and Education program.

Texas Natural Resources Code Chapter 113, Subchapter I, provided authority to create the Alternative Fuels Research and Education Program. In 2013, House Bill 7 (83rd Legislature) repealed Texas Natural Resources Code, Chapter 113, Subchapter I, and moved the authority for the program to Texas Natural Resources Code §81.0681, which read (in part): "The commission shall adopt all necessary rules relating to activities regarding the use of alternative fuels that are or have the potential to be effective in improving the air quality, energy security, or economy of this state." Finally, House Bill 1818 of the 85th Legislature repealed §81.0681, thus eliminating the Alternative Fuels Research and Education Program. The proposal would repeal Commission rules related to this program.

April Richardson, Director, Alternative Fuels Department, Oversight and Safety Division, has determined that for each year of the first five years the repeals as proposed are in effect, there will be no fiscal effect on state or local government.

Ms. Richardson has determined that for the first five years the proposed repeals are in effect, the primary public benefit will be the elimination of unnecessary Commission rules and consistency with the Commission's governing statutes.

Ms. Richardson has determined that for each year of the first five years that the repeals will be in effect, there will be no economic costs for persons required to comply as a result of adoption of the proposed repeals.

The Commission has determined that the proposed repeals will not have an adverse economic effect on rural communities, small businesses or micro businesses. Therefore, the Commission has not prepared the economic impact statement or the regulatory flexibility analysis pursuant to Texas Government Code §2006.002.

The Commission has also determined that the proposed repeals will not affect a local economy. Therefore, the Commission has not prepared a local employment impact statement pursuant to Texas Government Code §2001.022.

The Commission has determined that the repeals do not meet the statutory definition of a major environmental rule as set forth in Texas Government Code, §2001.0225(a); therefore, a regulatory analysis conducted pursuant to that section is not required.

During the first five years that the repeals would be in full effect, the proposed repeals would not: require an increase or decrease in future legislative appropriations; create a new regulation; increase or decrease the number of individuals subject to the rule's applicability; expand, limit, or repeal an existing regulation; or affect the state's economy. The proposed repeal would not eliminate a government program but would remove rules related to a program that was eliminated by the legislature.

Comments on the proposed repeals may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.texas.gov/general-counsel/rules/comment-form-for-proposed-rulemakings; or by electronic mail to rulescoordinator@rrc.texas.gov. The Commission will accept comments until 12:00 noon on Monday, December 14, 2020. The Commission finds that this comment period is reasonable because the proposal and an online comment form will be available on the Commission's website more than two weeks prior to Texas Register publication of the proposal, giving interested persons additional time to review, analyze, draft, and submit comments. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Ms. Richardson at (512) 463-6935. The status of Commission rulemakings in progress is available at www.rrc.texas.gov/general-counsel/rules/proposed-rules. Once received, all comments are posted on the Commission's website at https://rrc.texas.gov/general-counsel/rules/proposed-rules. If you submit a comment and do not see the comment posted at this link within three business days of submittal, please call the Office of General Counsel at (512) 463-7149. The Commission has safeguards to prevent emailed comments from getting lost; however, your operating system's or email server's settings may delay or prevent receipt.

The Commission proposes the repeals pursuant to House Bill 1818 (85th Legislature, 2017). House Bill 1818 repealed Nat. Res. Code §81.0681 which authorized the Commission to adopt all necessary rules relating to activities regarding the use of alternative fuels that are or have the potential to be effective in improving the air quality, energy security, or economy of this state.

Statutory authority: Texas Natural Resources Code, §81.0681.

Cross-reference to statute: Texas Natural Resources Code, Chapter 81.

§15.1.Purpose.

§15.2.Definitions.

§15.3.Establishment and Duration.

§15.4.Availability of Funds.

§15.5.Eligibility.

§15.6.Application.

§15.7.Conditions of Receipt of Rebate or Incentive.

§15.8.Selection of Equipment and Installer.

§15.9.Rebate or Incentive Amount, Minimum Efficiency Factor, or Performance Standard.

§15.10.Verification, Safety, Disallowance, and Refund.

§15.11.Assignment of Rebate or Incentive.

§15.12.Compliance.

§15.13.Complaints.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 20, 2020.

TRD-202004393

Haley Cochran

Rules Attorney, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-1295


PART 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

CHAPTER 67. AUCTIONEERS

16 TAC §67.20

The Texas Department of Licensing and Regulation (Department) proposes amendments to an existing rule at 16 Texas Administrative Code (TAC), Chapter 67, §67.20, regarding the Auctioneers program. These proposed changes are referred to as the "proposed rule."

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The rule under 16 TAC Chapter 67 implements Texas Occupations Code, Chapter 1802.

The proposed rule implements necessary changes required by Senate Bill (SB) 1531, 86th Legislature, Regular Session (2019). The proposed rule amends the licensure requirements for auctioneers.

The proposed rule was presented to and discussed by the Auctioneer Advisory Board at its meeting on October 13, 2020. The Advisory Board did not make any changes to the proposed rule. The Advisory Board voted and recommended that the proposed rule be published in the Texas Register for public comment.

SECTION-BY-SECTION SUMMARY

The proposed rule amends §67.20, License Requirements Auctioneer, by removing the restriction that prevents an applicant with a felony conviction during the five years prior to application from being licensed.

FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT

Tony Couvillon, Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rule is in effect, there are no estimated additional costs or reductions in costs to state or local government as a result of enforcing or administering the proposed rule.

Mr. Couvillon has determined that for each year of the first five years the proposed rule is in effect, there is no estimated increase or loss in revenue to the state or local government as a result of enforcing or administering the proposed rule.

Mr. Couvillon has determined that for each year of the first five years the proposed rule is in effect, enforcing or administering the proposed rule does not have foreseeable implications relating to costs or revenues of state governments.

Mr. Couvillon has determined that for each year of the first five years the proposed rule is in effect, enforcing or administering the proposed rule does not have foreseeable implications relating to costs or revenues of local governments.

LOCAL EMPLOYMENT IMPACT STATEMENT

Mr. Couvillon has determined that the proposed rule will not affect the local economy, so the agency is not required to prepare a local employment impact statement under Government Code §2001.022.

Mr. Couvillon has determined that the proposed rule will affect the local economy, so the agency has prepared a local employment impact statement, as detailed and required under Government Code §2001.022.

PUBLIC BENEFITS

Mr. Couvillon also has determined that for each year of the first five-year period the proposed rule is in effect, the public benefit will be that applicants will no longer be automatically ineligible for an auctioneer license due to a felony conviction within five years of the application date. A person with such a conviction seeking to become an auctioneer will be able to have their application and criminal history considered to obtain a license. Due to the statutory change, these applicants will be afforded the due process which was not previously available to them.

PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL

Mr. Couvillon has determined that for each year of the first five-year period the proposed rule is in effect, there are no anticipated economic costs to persons who are required to comply with the proposed rule.

FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES

There will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rule. Since the agency has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, are not required.

ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT

The proposed rule does not have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. Therefore, the agency is not required to take any further action under Government Code §2001.0045.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rule. For each year of the first five years the proposed rule will be in effect, the agency has determined the following:

1. The proposed rule does not create or eliminate a government program.

2. Implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions.

3. Implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the agency.

4. The proposed rule does not require an increase or decrease in fees paid to the agency.

5. The proposed rule does not create a new regulation.

6. The proposed rule does expand, limit, or repeal an existing regulation. The proposed rule eliminates the provision which prohibited an applicant from having a criminal conviction within the five years prior to the application date.

7. The proposed rule does not increase or decrease the number of individuals subject to the rule's applicability.

8. The proposed rule does not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

The Department has determined that no private real property interests are affected by the proposed rule and the proposed rule does not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rule does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

PUBLIC COMMENTS

Comments on the proposed rules may be submitted electronically on the Department's website at https://ga.tdlr.texas.gov:1443/form/gcerules; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.

STATUTORY AUTHORITY

The proposed rule is proposed under Texas Occupations Code, Chapters 51 and 1802, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposed rule are those set forth in Texas Occupations Code, Chapters 51 and 1802. No other statutes, articles, or codes are affected by the proposed rule.

§67.20.Licensure Requirements--Auctioneer.

(a) (No change.)

(b) To obtain a license as an auctioneer an applicant must:

(1) - (3) (No change.)

(4) hold a high school diploma or a high school equivalency certificate; and

[(5) not have been convicted of a felony during the five (5) years preceding the application date; and]

(5) [(6)] show proof of successful completion of at least eighty (80) hours of classroom instruction at an auction school with a curriculum approved by the department.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 26, 2020.

TRD-202004479

Brad Bowman

General Counsel

Texas Department of Licensing and Regulation

Earliest possible date of adoption: December 6, 2020

For further information, please call: (512) 475-4879