TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 15. ALTERNATIVE FUELS RESEARCH AND EDUCATION DIVISION

The Railroad Commission of Texas proposes amendments to §15.105, relating to Definitions; §15.125, relating to Application; §15.140, relating to Rebate Amount; Minimum Efficiency Factor or Performance Standard; §15.150, relating to Assignment of Rebate; §15.155, relating to Compliance; §15.160, relating to Complaints; §15.205, relating to Definitions; §15.305, relating to Definitions; and §15.405, relating to Definitions. The Commission proposes the amendments to incorporate provisions related to grant-funded rebate and incentive programs and to clarify certain administrative and procedural provisions.

In §15.105, relating to Definitions, the Commission proposes to amend the definitions of "application," to include a reference to a propane equipment supplier; "available funds," to include funds available from gifts and grants; and "safety inspection," to include a reference to a propane equipment supplier. This change would apply to programs such as the Commission's grant-funded low-NOx forklift initiative program, in which a propane equipment supplier rather than a propane dealer co-signs a consumer's application. The Commission also proposes new definitions of "installation date," as the date on which propane service for eligible equipment is established, i.e., the date the gas is turned on, and "propane equipment supplier," as a Railroad Commission LP-gas licensee, company representative or operations supervisor who sells, leases or services eligible equipment to or for consumers; who has completed and submitted the form prescribed by the Commission to participate in a rebate or incentive program as a propane equipment supplier; and who is a regular or potential supplier of eligible equipment to an applicant. The Commission also proposes to amend the definition of "propane dealer" to correct the name of the administrative unit of the Commission that licenses LP-gas companies and maintains records of their company representatives and operations supervisors.

In §15.125, relating to Application, the Commission proposes to amend subsection (a) to include a reference to a propane equipment supplier. The Commission also proposes to amend subsection (c) to clarify that applications for rebates or incentives will be considered in the order they are received and paid in the order of their installation dates. In addition, the Commission proposes to add a new subsection (d) to clarify that a rebate or incentive will be paid out of funds appropriated for the fiscal year in which the installation date occurs, unless the Commission obligates or reserves funds from a different fiscal year to pay rebates or incentives. The Commission proposes to amend current subsection (e), proposed to be redesignated as subsection (f), by adding a sentence clarifying that it is the installation date that determines whether funds are available and the rebate or incentive amount in effect, and to re-designate former subsections (d), (e), (f) and (g) as (e), (f), (g) and (h), respectively.

In §15.140, relating to Rebate Amount; Minimum Efficiency Factor or Performance Standard, the Commission proposes to amend subsection (a) to clarify that the amount of a rebate or incentive paid on an approved application is the amount that is in effect on the installation date rather than on the date the application is approved.

In §15.150, relating to Assignment of Rebate, the Commission proposes to add a reference to a propane equipment supplier, to allow a consumer to assign a rebate or incentive to a propane equipment supplier as well as to a propane dealer. This change would apply to programs such as the Commission's grant-funded low-NOx forklift initiative program, in which a propane equipment supplier rather than a propane dealer co-signs a consumer's application. The Commission also proposes to amend this section to specify that the rebate amount assigned is the amount in effect on the installation date rather than on the date the application is approved.

In §15.155, relating to Compliance, the Commission proposes to amend subsections (a) and (b) by subjecting a participating propane equipment supplier to the same sanctions as an applicant or propane dealer who submits false information or otherwise violates program rules.

In §15.160, relating to Complaints, the Commission proposes to amend subsection (b) by correcting the name of the Railroad Commission section that handles complaints that an installation does not comply with the Commission's LP-gas safety rules.

In §§15.205, 15.305, and 15.405, the Commission proposes to correct the name of the section of the Commission that handles certain LP-gas activities.

Dan Kelly, Director, Alternative Fuels Education and Research Division, has determined that for the first five years that the proposed amendments will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the sections as amended. Participation in all of the division's consumer rebate and incentive programs is voluntary, and the amendments as proposed represent minor administrative changes that current staff can implement without additional resources.

Mr. Kelly has also determined that there will be no cost of compliance with the proposed amendments for individuals, small businesses, or micro-businesses. Participation in all of the division's consumer rebate and incentive programs is voluntary, and the proposed changes would require no additional expenditures of time or money by individuals and companies choosing to participate in the programs.

Mr. Kelly has also determined that the public benefit anticipated as a result of enforcing or administering the sections as amended will be enhanced applicability of the consumer rebate program rules to grant-funded incentive programs such as the low-NOx forklift initiative, as well as greater clarity and improved communication to consumers, propane dealers and propane equipment suppliers of the rules governing administration of the Commission's LP-gas rebate and incentive programs.

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.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us. The Commission will accept comments for 30 days after publication in the Texas Register . 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. Kelly at (512) 463-7291 or AFRED Marketing and Public Education Director Heather Ball at (512) 463-7359. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.

Subchapter B. PROPANE CONSUMER REBATE PROGRAM

16 TAC §§15.105, 15.125, 15.140, 15.150, 15.155, 15.160

The Commission proposes the amendments under the Texas Natural Resources Code, §113.241, which authorizes the Commission to adopt all necessary rules relating to the purposes of Texas Natural Resources Code, Chapter 113, Subchapter I, and activities regarding the use of LP-gas and other environmentally beneficial alternative fuels that are or have the potential to be effective in improving the quality of air in this state; §113.243, which authorizes the Commission to research, develop, and implement marketing, advertising, and informational programs relating to alternative fuels to make alternative fuels more understandable and readily available to consumers; §113.2435, which authorizes the Commission to establish consumer rebate programs for purchasers of appliances and equipment fueled by LP-gas or other environmentally beneficial alternative fuels for the purpose of achieving energy conservation and efficiency and improving the quality of air in this state; and §113.246, which requires the Commission to adopt rules necessary for the administration, collection, reporting, and payment of the fees payable or collected under this subchapter.

Statutory authority: Texas Natural Resources Code, §§113.241, 113.243, 113.2435, and 113.246.

Cross-reference to statute: Texas Natural Resources Code, Chapter 113.

Issued in Austin, Texas on July 22, 2005.

§15.105.Definitions.

The following words and terms, when used in this chapter (relating to the Alternative Fuels Research and Education Division) shall have the following meanings, unless the context clearly indicates otherwise.

(1) (No change.)

(2) Application--That set of forms prescribed by the commission for the purpose of applying for and/or assigning a rebate and participating in the rebate program as a propane dealer or propane equipment supplier , including all required supporting documentation.

(3) Available funds--Money available in the Alternative Fuels Research and Education Fund Account No. 101--General Revenue Dedicated, or its successor, in the state treasury, consisting of fees charged under Texas Natural Resources Code, Chapter 113, Subchapter I; the penalties for the late payment of the fee charged under Texas Natural Resources Code, Chapter 113, Subchapter I; [ and ] interest earned on amounts in the fund account ; and funds available from gifts and grants related to rebate and incentive programs for eligible equipment .

(4) - (9) (No change.)

(10) Installation date--The date on which propane service for eligible equipment is established.

(11) [ (10) ] Person--An individual, sole proprietorship, partnership, corporation or other legal entity.

(12) [ (11) ] Propane--Liquefied petroleum gas (LPG), as that term is defined in Texas Natural Resources Code, Chapter 113.

(13) [ (12) ] Propane dealer--A person who:

(A) has been issued a current Category E license from the Gas Services Division, License and Permit [ LP-Gas ] Section of the commission, or is an active company representative or operations supervisor on file with the [ Gas Services Division, LP-Gas ] Section; and

(B) operates or manages a retail business, including any branch outlet or outlets, delivering odorized propane to consumers; and

(C) has completed and submitted the form prescribed by the commission for dealer participation in the rebate program; and

(D) is a regular supplier or a potential regular supplier of propane to an applicant.

(14) Propane equipment supplier--A person who:

(A) has been issued a current Category L or other applicable LP-gas license from the Gas Services Division, License and Permit Section of the commission, or is an active company representative or operations supervisor on file with the Section; and

(B) operates or manages a retail business, including any branch outlet or outlets, selling, leasing or servicing eligible equipment to or for consumers; and

(C) has completed and submitted the form prescribed by the commission for propane equipment supplier participation in a rebate or incentive program; and

(D) is a regular supplier or a potential regular supplier of eligible equipment to an applicant.

(15) [ (13) ] Safety inspection--An on-site inspection, including any necessary pressure tests, of an operating eligible installation by a propane dealer , [ or ] a propane dealer's designated agent, a propane equipment supplier, or a propane equipment supplier's designated agent for the purpose of verifying that the LP-gas system, including all equipment, is or was installed in compliance with the propane consumer rebate program rules and with all applicable commission LP-gas safety rules and is in safe operating condition.

§15.125.Application.

(a) Forms. Application for a rebate shall be made by a consumer on forms prescribed for that purpose by the commission. The application for a rebate consists of a one- or two-page form, depending on the type of rebate, verifying the equipment for which the rebate is being sought. The form may require, for example, the make, model, and serial number of the eligible equipment installed or being replaced; the date and physical address of the installation; the applicant's name, address, and telephone number; and the participating propane marketer's or propane equipment supplier's name, address, telephone number, and Railroad Commission LP-Gas license number. The form requires the signature of the applicant and the Company Representative and, for certain rebate amounts, the applicant's tax identification number or social security number. The required documentation must show that the equipment for which the rebate is being sought is installed and operating in the State of Texas in compliance with Railroad Commission requirements.

(b) (No change.)

(c) Priority. Applications shall be considered on a first-come, first-served basis according to the receipt dates of complete and correct applications. Priority for payment shall be determined by the installation dates recorded on complete and correct applications.

(d) Allocation of payment to fiscal year. The installation date shall determine the fiscal year appropriation from which a rebate or incentive is paid. The commission may obligate or reserve funds to pay a rebate or incentive from funds of a fiscal year other than that in which the installation date occurs.

(e) [ (d) ] Acceptance. Applications will be accepted no earlier than the effective date of this rule and no later than the date of termination of the program. An application for a rebate on domestic equipment, such as an appliance, must be received at the Commission no later than 30 days following the date of the eligible installation to be eligible for a rebate. An application for a rebate on a motor vehicle, industrial lift truck, or other industrial equipment must be received at the Commission no later than 60 days following the date of the eligible installation to be eligible for a rebate. Applications may be mailed or hand-delivered to the Railroad Commission of Texas, Alternative Fuels Research and Education Division, 1701 North Congress Avenue, Room 11-170O, P.O. Box 12967, Austin, Texas 78711-2967. Applications may not be submitted electronically or by facsimile transmission (FAX).

(f) [ (e) ] Installation date. Applications must pertain to eligible installations made not earlier than the effective date of this rule and not later than the program termination date. The installation date is the date that determines whether funds are available and the rebate or incentive amount that is in effect.

(g) [ (f) ] Completeness. Applicants must furnish completely and correctly all information required on the official rebate application. No application may be considered complete until all required information is correct and all forms and required supporting documentation are received by the division.

(h) [ (g) ] Incomplete applications. Applicants have 30 days from the date the division sends notice to correct any errors or omissions on the application. If a complete, correct application is not received in the division within 30 days after notice has been sent, the application shall be void.

§15.140.Rebate Amount; Minimum Efficiency Factor or Performance Standard.

(a) The commission shall establish the rebate amount and may establish a minimum energy efficiency factor or other performance standard, as applicable, for an eligible installation. The commission may change this amount or performance standard at any time. If the commission changes the rebate amount or performance standard, an applicant whose application is approved will receive the amount that is in effect on the installation date of [ for ] the eligible installation [ at the time of approval of the application ].

(b) (No change.)

§15.150.Assignment of Rebate.

The commission may authorize payment of a rebate to a propane dealer or propane equipment supplier only by assignment from a consumer. Rebate amounts assigned shall be those in effect on the installation date of eligible equipment [ at the time an application is approved ]. A consumer may apply to assign a rebate to a propane dealer or propane equipment supplier by completing and submitting the form prescribed for that purpose by the commission. A propane dealer , propane equipment supplier, or applicant who submits false information pertaining to the assignment of a rebate is subject to criminal and civil penalties under §15.165 of this title (relating to Penalties).

§15.155.Compliance.

(a) An applicant , [ or ] propane dealer or propane equipment supplier may be suspended from or declared ineligible to participate in the rebate program if, in the judgment of the division director, the applicant , [ or ] dealer or equipment supplier has submitted false information or otherwise violated rebate program rules.

(b) Within 30 days after the division director mails a notice of suspension or ineligibility to an applicant , [ or ] propane dealer or equipment supplier , the applicant , [ or ] propane dealer or equipment supplier may appeal the suspension or declaration of ineligibility in writing to the commission. Actions taken by the commission with respect to such appeals are final.

§15.160.Complaints.

(a) (No change.)

(b) Complaints that an installation does not comply with the commission's LP-gas safety rules should be sent in writing to the assistant director of the Gas Services Division, License and Permit [ LP-Gas ] Section of the commission at the same address.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 22, 2005.

TRD-200502984

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 4, 2005

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


Subchapter C. MEDIA REBATE PROGRAM

16 TAC §15.205

The Commission proposes the amendments under the Texas Natural Resources Code, §113.241, which authorizes the Commission to adopt all necessary rules relating to the purposes of Texas Natural Resources Code, Chapter 113, Subchapter I, and activities regarding the use of LP-gas and other environmentally beneficial alternative fuels that are or have the potential to be effective in improving the quality of air in this state; §113.243, which authorizes the Commission to research, develop, and implement marketing, advertising, and informational programs relating to alternative fuels to make alternative fuels more understandable and readily available to consumers; §113.2435, which authorizes the Commission to establish consumer rebate programs for purchasers of appliances and equipment fueled by LP-gas or other environmentally beneficial alternative fuels for the purpose of achieving energy conservation and efficiency and improving the quality of air in this state; and §113.246, which requires the Commission to adopt rules necessary for the administration, collection, reporting, and payment of the fees payable or collected under this subchapter.

Statutory authority: Texas Natural Resources Code, §§113.241, 113.243, 113.2435, and 113.246.

Cross-reference to statute: Texas Natural Resources Code, Chapter 113.

Issued in Austin, Texas on July 22, 2005.

§15.205.Definitions.

The following words and terms, when used in this subchapter, relating to the Alternative Fuels Research and Education Division, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (9) (No change.)

(10) Propane dealer--A person who:

(A) has been issued a current Category E license from the Gas Services Division, License and Permit [ LP-Gas ] Section of the commission, or is an active company representative or operations supervisor on file with the [ LP-Gas ] Section; and

(B) - (C) (No change.)

(11) Retail propane delivery truck--Any bobtail truck, semitrailer, or other motor vehicle equipped with an LP-gas cargo container and each trailer, semitrailer, or other motor vehicle used principally for transporting LP-gas in portable containers that:

(A) (No change.)

(B) is currently registered with the Gas Services Division, License and Permit [ LP-Gas ] Section of the commission.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 22, 2005.

TRD-200502985

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 4, 2005

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


Subchapter D. HIGHWAY SIGNAGE REBATE PROGRAM

16 TAC §15.305

The Commission proposes the amendments under the Texas Natural Resources Code, §113.241, which authorizes the Commission to adopt all necessary rules relating to the purposes of Texas Natural Resources Code, Chapter 113, Subchapter I, and activities regarding the use of LP-gas and other environmentally beneficial alternative fuels that are or have the potential to be effective in improving the quality of air in this state; §113.243, which authorizes the Commission to research, develop, and implement marketing, advertising, and informational programs relating to alternative fuels to make alternative fuels more understandable and readily available to consumers; §113.2435, which authorizes the Commission to establish consumer rebate programs for purchasers of appliances and equipment fueled by LP-gas or other environmentally beneficial alternative fuels for the purpose of achieving energy conservation and efficiency and improving the quality of air in this state; and §113.246, which requires the Commission to adopt rules necessary for the administration, collection, reporting, and payment of the fees payable or collected under this subchapter.

Statutory authority: Texas Natural Resources Code, §§113.241, 113.243, 113.2435, and 113.246.

Cross-reference to statute: Texas Natural Resources Code, Chapter 113.

Issued in Austin, Texas on July 22, 2005.

§15.305.Definitions.

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

(1) - (9) (No change.)

(10) Eligible propane and/or natural gas outlet--A retail motor fuel outlet that is:

(A) (No change.)

(B) licensed by the commission's Gas Services Division, License and Permit [ LP-Gas ] Section; and

(C) (No change.)

(11) - (14) (No change.)

(15) Owner or operator of a propane and/or natural gas motor fuel outlet open to the motoring public--A person who:

(A) has been issued a current Category E, G, I or J LPG license or a current Category 3 or 5 CNG license from the Gas Services Division, License and Permit [ LP-Gas ] Section, of the commission, or is an active company representative or operations supervisor on file with the [ Gas Services Division, LP-Gas ] Section; and

(B) - (C) (No change.)

(16) - (17) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 22, 2005.

TRD-200502986

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 4, 2005

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


Subchapter E. MANUFACTURED HOUSING INCENTIVE PROGRAM

16 TAC §15.405

The Commission proposes the amendments under the Texas Natural Resources Code, §113.241, which authorizes the Commission to adopt all necessary rules relating to the purposes of Texas Natural Resources Code, Chapter 113, Subchapter I, and activities regarding the use of LP-gas and other environmentally beneficial alternative fuels that are or have the potential to be effective in improving the quality of air in this state; §113.243, which authorizes the Commission to research, develop, and implement marketing, advertising, and informational programs relating to alternative fuels to make alternative fuels more understandable and readily available to consumers; §113.2435, which authorizes the Commission to establish consumer rebate programs for purchasers of appliances and equipment fueled by LP-gas or other environmentally beneficial alternative fuels for the purpose of achieving energy conservation and efficiency and improving the quality of air in this state; and §113.246, which requires the Commission to adopt rules necessary for the administration, collection, reporting, and payment of the fees payable or collected under this subchapter.

Statutory authority: Texas Natural Resources Code, §§113.241, 113.243, 113.2435, and 113.246.

Cross-reference to statute: Texas Natural Resources Code, Chapter 113.

Issued in Austin, Texas on July 22, 2005.

§15.405.Definitions.

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

(1) - (14) (No change.)

(15) Propane dealer--A person who:

(A) has been issued a current Category E license from the Gas Services Division, License and Permit [ LP-Gas ] Section, of the commission, or is an active company representative or operations supervisor on file with the [ Gas Services Division, LP-Gas ] Section; and

(B) operates or manages a retail business, including any branch outlet or outlets, delivering odorized propane to consumers.

(16) - (17) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 22, 2005.

TRD-200502987

Mary Ross McDonald

Deputy General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 4, 2005

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