Subchapter C. CLASSIFICATION, REGISTRATION, AND EXAMINATION

The Railroad Commission of Texas adopts the repeal of 16 TAC Chapter 13, Subchapter G, §§13.2001, 13.2007, 13.2010, 13.2013, 13.2016, 13.2019, 13.2020, 13.2022, 13.2025, 13.2028, 13.2031, 13.2034, 13.2037, 13.2040, 13.2043, 13.2046, 13.2049, and 13.2052; Subchapter H, §§13.2101, 13.2104, 13.2107, 13.2110, 13.2113, 13.2116, 13.2119, 13.2122, 13.2125, 13.2128, 13.2131, 13.2134, 13.2137, and 13.2140; Subchapter J, §§13.2301, 13.2304, 13.2307, 13.2310, 13.2313, 13.2316, 13.2319, 13.2322, 13.2325, and 13.2328; Subchapter K, §§13.2401, 13.2404, 13.2407, 13.2410, 13.2413, 13.2416, 13.2419, 13.2422, 13.2425, 13.2428, 13.2431, 13.2434, 13.2437, and 13.2440; Subchapter L, §§13.2501, 13.2504, 13.2507, 13.2510, 13.2513, and 13.2516; Subchapter M, §§13.2601, 13.2604, 13.2607, 13.2610, 13.2613, 13.2616, 13.2619, 13.2622, 13.2625, 13.2628, 13.2631, 13.2634, 13.2637, 13.2640, and 13.2643; and Subchapter N, §§13.2701, 13.2704, 13.2705, 13.2707, 13.2710, 13.2713, 13.2716, 13.2719, 13.2722, 13.2725, 13.2728, 13.2731, 13.2734, 13.2737, 13.2740, 13.2743, 13.2746, and 13.2749, relating to the Regulations for Liquefied Natural Gas (LNG), without changes to the versions published in the March 14, 2003, issue of the Texas Register (28 TexReg 2178).

The Commission adopts the repeals in order to separate the LNG rules and the compressed natural gas (CNG) rules (which are found in 16 TAC Chapter 13, Subchapters A - F) into their own individual chapters to avoid confusion over having both fuels covered in one chapter. In concurrent proposals, the new LNG rules will be adopted in Chapter 14 and the review adopted for the LNG rules as required under Texas Government Code, §2001.039.

The Commission received no comments on the proposed repeals.

Subchapter G. GENERAL APPLICABILITY AND REQUIREMENTS

The Railroad Commission of Texas adopts new 16 TAC Chapter 14, relating to the Regulations for Liquefied Natural Gas (LNG) including new Subchapter A, §§14.2001, 14.2007, 14.2010, 14.2013, 14.2016, 14.2019, 14.2020, 14.2022, 14.2025, 14.2028, 14.2031, 14.2034, 14.2037, 14.2040, 14.2043, 14.2046, 14.2049, and 14.2052, relating to General Applicability and Requirements; new Subchapter B, §§14.2101, 14.2104, 14.2107, 14.2110, 14.2113, 14.2116, 14.2119, 14.2122, 14.2125, 14.2128, 14.2131, 14.2134, 14.2137, and 14.2140, relating to General Rules for All Stationary LNG Installations; new Subchapter D, §§14.2301, 14.2304, 14.2307, 14.2310, 14.2313, 14.2316, 14.2319, 14.2322, 14.2325, and 14.2328, relating to General Rules for LNG Fueling Facilities; new Subchapter E, §§14.2401, 14.2404, 14.2407, 14.2410, 14.2413, 14.2416, 14.2419, 14.2422, 14.2425, 14.2428, 14.2431, 14.2434, 14.2437, and 14.2440, relating to Piping Systems and Components for All Stationary LNG Installations; new Subchapter F, §§14.2501, 14.2504, 14.2507, 14.2510, 14.2513, and 14.2516, relating to Instrumentation and Electrical Services; new Subchapter G, §§14.2601, 14.2604, 14.2607, 14.2610, 14.2613, 14.2616, 14.2619, 14.2622, 14.2625, 14.2628, 14.2631, 14.2634, 14.2637, 14.2640, and 14.2643, relating to Engine Fuel Systems; and new Subchapter H, §§14.2701, 14.2704, 14.2705, 14.2707, 14.2710, 14.2713, 14.2716, 14.2719, 14.2722, 14.2725, 14.2728, 14.2731, 14.2734, 14.2737, 14.2740, 14.2746, and 14.2749, relating to LNG Transports. Sections 14.2001 and 14.2313 are adopted with changes, and the remaining sections are adopted without changes to the versions published in the March 14, 2003, issue of the Texas Register (28 TexReg 2178). The adopted changes in §14.2001 correct two typographical errors and in §14.2313 change the reference from Texas Natural Resources Conservation Commission to the agency's correct name, the Texas Commission on Environmental Quality.

In a concurrent rulemaking, the Commission has adopted the repeal of the current LNG rules from Chapter 13, Subchapters G, H, and J - N, in order to separate the LNG rules and the compressed natural gas (CNG) rules into their own individual chapters and to avoid confusion over having both fuels covered in one chapter.

The Commission received no comments on the proposed repeals, new sections, or review.

The Commission adopts the new rules in Chapter 14 with the identical rule numbers as they currently have in Chapter 13, except the rule numbers will begin with "14" instead of "13." Many of the new rules in Chapter 14 include different language from the rules as they currently exist in Chapter 13, as explained in the following paragraphs. In general, there are five types of language changes: statutory changes resulting from Senate Bill 310 (SB 310), 77th legislature (2001); changes to address issues related to professional engineering practices; changes approved by the Commission's LNG Advisory Committee; non-substantive changes such as wording, punctuation, or organization; and no changes other than the rule number.

Senate Bill 310 Changes

The first group of changes result from SB 310 and are found in §14.2016(f). The new wording addresses license and license renewal requirements and requires a renewal fee of 1 1/2 times the renewal fee required in §14.2013(b) (relating to Licenses and Related Fees) if a person's license has expired for 90 calendar days or fewer, and a renewal fee of two times the renewal fee required in §14.2013(b) if the license has expired for more than 90 calendar days but less than one year. If a person's license has been expired for one year or longer, that person may not renew, but shall complete the requirements for a new license. New subsection (f)(4) allows a person who was previously 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 to obtain a new license without reexamination. The person shall pay a fee to the Commission that is equal to two times the renewal fee required in §14.2013. The wording in subsection (f)(4)(A) and (B) requires the person to submit proof of having been in practice and licensed in good standing in the other state, as well as requiring the person to comply with other licensing requirements such as insurance.

Section 14.2019(a)(4) and (5) include new wording based on SB 310 establishing the times when applicants may take the rules examination; that a minimum score of at least 75% is required (this is not required by SB 310, but is consistent with the minimum score for LP-gas examinations); that the Commission will notify individuals of examination results within 30 days; and that a testing service may be used. A new sentence in paragraph (5)(C) states that an individual who fails an examination may request in writing that the Commission furnish an analysis of the individual's performance on the examination.

New subsection (e) addresses another SB 310 issue regarding expired certificates. 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, the 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, the Commission shall renew the individual's certificate.

Professional Engineering Changes

The second group of changes address professional engineering activities. These changes will make the LNG rules as consistent as possible with the Commission's LP-gas rules (16 TAC Chapter 9), especially with regard to Commission procedures, deadlines, and fees, and are mostly non-substantive. These types of wording changes are found in §§14.2010(21), 14.2037, 14.2040, 14.2310, and 14.2316.

LNG Advisory Committee Changes

The third group of changes were discussed and approved by the Commission's LNG Advisory Committee. The committee approved changes to §§14.2007, 14.2010, 14.2013, 14.2016, 14.2019, 14.2031, and 14.2040 which are substantive in nature. Specifically, amendments to §14.2007 amend the definition of "mass transit vehicle" and add definitions for "transport" and "transport system." The new wording clarifies these terms which are commonly used in these regulations. In §14.2010, two new forms are added (in paragraphs (13) and (19)), while other changes are made for clarification. Section 14.2013(b)(2) and (5) include minor clarifications. Section 14.2016(e)(3) adds license categories 15 and 20 to category 50 as categories that include testing activities.

In §14.2019(f) and in the table, the one-hour course currently in §13.2019 has been deleted and the reference to the 32-hour course has been changed to the Category 35 course of instruction. Course attendees shall pay the course fee as established by the division director.

Adopted §14.2031 includes the addition of license categories 15 and 25 to the table in the row requiring product liability insurance; this is a current Commission practice consistent with the LP-gas and CNG rules. Also, new language in subsection (b) describes certificates of insurance and requirements for these; the language tracks the Commission's corresponding CNG rule.

Adopted language requiring LNG Form 2019 is added in §14.2040(a); this form will be required when a person purchases an existing LNG installation and wishes for it to remain in LNG service. In addition, the notice requirements in subsections (c) and (d) wherein real property owners must be notified of a new LNG installation or an addition to an existing LNG installation are changed from current §13.2040. The distances in which notification is required--currently up to 900 feet for certain installations--are decreased to 500 feet for all installations. The Commission finds this acceptable because of the tremendous safety equipment included in any LNG installation; in addition, this is the same notice requirement in the Commission's LP-gas and CNG regulations. The aggregate water capacities of 15,540 and 214,348 gallons are the equivalent gas volumes to the requirements in the LP-gas rules for 10,000 and 120,000 gallons aggregate water capacities, respectively.

In new §14.2043, language in new subsection (h) requires temporary installations to comply with DOT rules, as well as the Commission's applicable Pipeline Safety rules.

Section 14.2104 clarifies the activities of Category 15, 20, and 50 licensees regarding examination and inspection of containers.

In §14.2310, new subsection (d) is added, stating that emergency refueling vehicles are not required to be registered with the Commission.

In the table in §14.2637, the change from current §13.2637 is found in the second row, where the language "(not required for systems installed by OEM or OEM's subcontractor)" is added for clarification. In addition, the table in current §13.2637 contains an asterisk under the "Engine Compartment" column for the row requiring the maximum allowable working pressure; that asterisk is deleted from the §14.2637 table because that sign or label is not required.

Section 14.2640(d) clarifies that Category 20 and 50 licensees, as well as Category 15 licensees, may perform these activities.

In §14.2701, subsection (b) is changed because effective October 1, 1998, the United States Department of Transportation's jurisdiction expanded from strictly interstate to intrastate operations of hazardous materials transportation, including LNG. In §14.2704, the table in §13.2704 is not retained, but the requirements regarding current registration fees, forms, and procedures are more accurately specified. Registration fees are $270 for each transport truck, semi-trailer, or other motor vehicle equipped with an LNG cargo tank. The fee to transfer each such unit to a new owner is $100 per vehicle. These fees are currently charged and do not represent any increase in amounts.

Adopted §14.2707 deletes references to registered testing laboratories and adds references to the Commission's appropriate license categories. The testing procedures in current §13.2707(b) are deleted and a reference to 49 CFR §338 is added to cover these procedures.

Adopted §14.2749 clarifies that either a decal or a letter of authority issued by the Commission shall serve to verify that a particular LNG transport has been properly registered. Adopted new subsection (f) allows a small amount of LNG to be introduced into a new container if it will provide the fuel to deliver the unit to its new location.

Current §13.2743, relating to Inspection of Transport Containers, was not proposed as a new rule in Chapter 14. The LNG advisory committee recommended it be deleted because LNG transports must comply with United States Department of Transportation specification MC-338, so inspection by the Commission is unnecessary.

Other Non-substantive Changes

The fourth group of changes are non-substantive and include changes in wording, punctuation, or organization to provide better clarity or consistency. For example, references to the LP-Gas Division have been changed to reflect the current organization of the Commission. Citations to statutes or other Commission rules have been corrected. Rules including these types of non-substantive changes are §§14.2001, 14.2007(5), (13), (21), (28), and (35), 14.2016(c), 14.2022, 14.2052, 14.2122, 14.2125, 14.2137, 14.2407. 14.2416, 14.2607, 14.2610, 14.2619, and 14.2705.

Section 14.2019(b)(5) clarifies current procedures that a trainee who takes the rules examination shall cease performing LP-gas activities which require certification until the individual is notified of a passing score, even if time remains in the 45-day trainee period.

In §14.2040(c)(5), the Commission has added some additional wording regarding objections; this wording clarifies the procedures and makes the LNG rule consistent with the LP-gas rules. New subsection (l) addresses current Commission practice regarding physical inspections of stationary installations and is modeled after the same requirement in the CNG rules. Similarly, new subsections (m) regarding hearings, (n) regarding material variances, and (o) regarding fees for re-inspections specify current Commission practices.

Section 14.2046 is reworded from current §13.2046 to use active voice and to clarify the procedures for LNG Form 2503 and the Commission inspection of vehicles.

Section 14.2052(d) contains new wording regarding objections to requests for an exception to a safety rule. These objections must be in writing, filed at the Commission within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that the adopted exception would have an adverse effect on public health, safety, or welfare. The Commission may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

Section 14.2110 clarifies some distance requirements for containers with aggregate water capacities of 93,241 gallons or more, underground containers, and LNG dispensers or points of transfer; the distances are based on the industry standard, NFPA 59A, Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG) .

Section 14.2313 corrects a reference to nationally-recognized testing laboratories to the correct references of Category 15, 20, or 50 licensees.

No Changes Other Than Rule Numbers

Many of the LNG rules have no wording changes other than the chapter number in the rule changing from 13 to 14. These include §§14.2001, 14.2020, 14.2034, 14.2049, 14.2101, 14.2107, 14.2113, 14.2116, 14.2119, 14.2128, 14.2131, 14.2134, 14.2140, 14.2301, 14.2304, 14.2307, 14.2319, 14.2322, 14.2325, 14.2401, 14.2404, 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, 14.2601, 14.2604, 14.2613, 14.2616, 14.2622, 14.2625, 14.2628, 14.2631, 14.2634, 14.2643, 14.2710, 14.2713, 14.2719, 14.2722, 14.2725, 14.2728, 14.2731, 14.2734, 14.2737, 14.2740, and 14.2746.

In a separate proposal, the Commission adopts the rule review for the LNG rules required under Texas Government Code, §2001.039. The separate rule review documents will be filed with the Texas Register concurrently with this rulemaking.

Subchapter A. GENERAL APPLICABILITY AND REQUIREMENTS

Subchapter A. GENERAL APPLICABILITY AND REQUIREMENTS