TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 9. LP-GAS SAFETY RULES

The Railroad Commission of Texas proposes amendments, repeals, and new sections in 16 TAC Chapter 9, relating to LP-Gas Safety Rules. Specifically, the Commission proposes in Subchapter A, relating to General Requirements, amendments to §§9.1 - 9.3, 9.6 - 9.13, 9.16 - 9.18, 9.21, 9.22, 9.26 - 9.28, relating to Application of Rules, Severability, and Retroactivity; Definitions; LP-Gas Report Forms; Licenses and Fees; Application for License and License Renewal Requirements; Application for a New Certificate; Requirements for Certificate Renewal; Rules Examination; Previously Certified Individuals; Trainees; General Installers and Repairman Exemption; Hearings for Denial, Suspension, or Revocation of Licenses or Certificates; Designation and Responsibilities of Company Representatives and Operations Supervisors; Reciprocal Examination Agreements with Other States; Franchise Tax Certification and Assumed Name Certificates; Changes in Ownership, Form of Dealership, or Name of Dealership; Insurance and Self-Insurance Requirements; Application for an Exception to a Safety Rule; Reasonable Safety Provisions; the repeal of §9.33, relating to LP-Gas Welding Advisory Committee; new §9.35, relating to Written Procedure for LP-Gas Leaks; amendments to §§9.36 - 9.38, 9.41, 9.51, 9.52, relating to Report of LP-Gas Incident/Accident; Termination of LP-Gas Service; Reporting Unsafe LP-Gas Activities; Testing of LP-Gas Systems in School Facilities; General Requirements for Training and Continuing Education; and Training and Continuing Education Courses; the repeal of §9.53, relating to Continuing Education Credit for Previous Courses; and amendments to §9.54, relating to Commission-Approved Outside Instructors.

In Subchapter B, relating to Stationary Installations and Container Requirements, the Commission proposes amendments to §§9.101 - 9.103, 9.107, 9.109, 9.110, 9.113, relating to Filings Required for Stationary LP-Gas Installations; Notice of Stationary LP-Gas Installations; Objections to Proposed Stationary LP-Gas Installations; Hearings on Stationary LP-Gas Installations; Physical Inspection of Stationary LP-Gas Installations; Emergency Use of Proposed Stationary LP-Gas Installations; Maintenance; the repeal of §9.114, relating to Odorizing and Reports; amendments to §§9.115, 9.126, 9.129, 9.130, 9.132, 9.134, 9.140, 9.143, relating to Examination and Testing of Containers; Appurtenances and Equipment; Manufacturer's Nameplate and Markings on ASME Containers; Commission Identification Nameplates; Sales to Unlicensed Individuals; Connecting Container to Piping; Uniform Protection Standards; Uniform Safety Standards; LP-Gas Container Storage and Installation Requirements; and Bulkhead, Internal Valve, and ESV Protection for Stationary LP-Gas Installations with Individuals or Aggregate Water Capacities of 4,001 Gallons or More.

In Subchapter C, relating to Vehicles and Vehicle Dispensers, the Commission proposes amendments to §§9.201 - 9.203, relating to Applicability; Registration and Transfer of LP-Gas Transports or Container Delivery Units; School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections; new §9.204, relating to Maintenance of Vehicles; the repeal of §9.207, relating to Requirements for Movable Fuel Storage Tenders Such as Farm Carts; and amendments to §9.208, and §9.211, relating to Testing Requirements; and Markings.

In Subchapter D, relating to Adoption by Reference of NFPA 54 (National Fuel Gas Code), the Commission proposes amendments to §§9.303, 9.308, and 9.312, relating to Exclusion of NFPA 54, §6.31; Identification of Piping Installation; and Certification Requirements for Joining Methods.

In Subchapter E, relating to Adoption by Reference of NFPA 58 (LP-Gas Code), the Commission proposes amendments to §9.403, relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections.

The Commission also proposes the repeal of Subchapter F, relating to Adoption by Reference of NFPA 51 (Standard for the Design and Installation of Oxygen Fuel-Gas Systems for Welding, Cutting, and Allied Processes), including §§9.501 - 9.503, and 9.506 - 9.508, relating to Adoption by Reference of NFPA 51; Clarification and/or Exclusion of Definitions in NFPA 51; Exclusion of Certain Sections and Chapters 6, 7, and 8 in NFPA 51; Sections in NFPA 51 Adopted with Additional or Alternative Language; Container Installation Requirements; and LP-Gas Pressure Going into a Building.

The Commission proposes these amendments, repeals, and new rules to update some training and continuing education requirements, to clarify changes in Commission offices or procedures as a result of a reorganization of LP-gas activities among the AFRED, Gas Services, and Safety Divisions, to repeal some unnecessary rules, and to make other substantive and non-substantive amendments. The Commission proposes an effective date of September 1, 2005, for these amendments, new rules, and repeals.

Proposed Nonsubstantive Amendments

Proposed amendments to certain sections are nonsubstantive and are proposed for clarification. Section 9.1(a)(6) is proposed to be deleted because it refers to Subchapter F regarding NFPA 51; the rules in Subchapter F are proposed for repeal (as discussed later in the preamble). Section 9.1(g) corrects references to NFPA 58.

The proposed amendments in §9.3(13) delete a form that is no longer used and the remaining paragraphs are renumbered.

In §9.9, specific references to AFRED are added; fees are stated to be nonrefundable; and subsection (c)(1) includes new wording stating that if a person's certification expires, that person shall immediately cease performance of any LP-gas activities authorized by the certification. This wording is currently found in §9.7(f) regarding expiration of licenses, and is added in §9.9 to apply to certifications.

Proposed amendments in §9.12(a)(2) add a reference to AFRED and delete the reference to the rules examination fee being on file; that wording is unnecessary because of the options available for exam locations and payments.

In §9.16, several references to the License and Permit Section of the Gas Services Division are added, and two internal procedures are clarified.

Proposed amendments in §§9.18, 9.21, 9.22, 9.26, 9.27, 9.28, 9.37, 9.38, and 9.102 add references to the Gas Services Division, the License and Permit Section of the Gas Services Division, or the Safety Division, as appropriate. The proposed amendments to §9.103 add a reference to the Safety Division and corrects one internal reference to another rule. Proposed amendments in §§9.107, 9.109, 9.110, 9.115, 9.129, 9.141, 9.203, 9.211, add references to the Safety Division. The amendment in §9.303 corrects the title in a reference to 16 TAC Chapter 13, and §9.312 adds a reference to the Safety Division.

Clarifying and Substantive Amendments

Some sections include more substantive proposed amendments, but the Commission does not consider them to be controversial.

The proposed amendments in §9.6, in conjunction with amendments to §9.13, add references to the License and Permit Section, and in subsection (c)(4) add wording regarding a new registration program with the Texas State Board of Plumbing Examiners and the Texas Department of Licensing and Regulation. The new wording states that master or journeyman plumbers, or Class A or B Air Conditioning and Refrigeration Contractors, as licensed respectively by these two agencies, may register with the Section as stated more fully in §9.13. The registration fee is $50 and the renewal fee is $20 as proposed.

Proposed changes in §9.7 add references to the License and Permit Section, and new wording requiring a 24-hour emergency response telephone number to be included on LPG Form 1; other proposed amendments clarify that certain fees are nonrefundable.

Proposed amendments in §9.8 specify AFRED as the Commission office to receive the LPG Form 16 and clarify that fees are nonrefundable.

In §9.11, references to AFRED are proposed to be added, as is a 10-calendar day period for a licensee to notify AFRED when a previously certified individual is hired; the current rule states this notification shall take place "immediately," which is not defined.

Section 9.13 includes proposed wording for the new registration program with the Texas State Board of Plumbing Examiners and the Texas Department of Licensing and Regulation. The proposed new wording states that master or journeyman plumbers, or Class A or B Air Conditioning and Refrigeration Contractors, as licensed respectively by these two agencies, may register with the Commission. This program was jointly agreed upon by the Commission and these two agencies as a way to recognize the skills and training of the individuals who perform LP-gas activities, as authorized by the three agencies. Registration with the Commission is an easier and cheaper way for these skilled workers to be recognized by the Commission as performing authorized LP-gas activities without the expense and time required to obtain a Category D license or renewal.

Proposed changes to §9.36 add references to the Safety Division, amend subsection (a)(4) to ensure that damage has not occurred in an incident or accident involving an LP-gas vehicle, and add new subsection (a)(7) requiring the reporting to the Safety Division of any event involving LP-gas which is required to be reported to any other state or federal agency.

In §9.101(a), proposed changes include a new sentence stating that LP-gas systems under the jurisdiction of DOT safety regulations in 49 CFR Parts 192 and 199, and Part 40 shall comply with Chapter 8 of this title (relating to Pipeline Safety Regulations) prior to implementation of service. In proposed changes to subsection (b)(1), the 10-day period is changed to 30 days for submission of LPG Form 501 and a reference is added to the Gas Services Division. In subsection (b)(2), the resubmission charge is proposed to be changed from $20 to $35; because additional time is being given, a higher resubmission fee is warranted. Wording in subsection (g) is proposed to be deleted and moved to new subsection (c)(6) in order to properly place this requirement under the installations with aggregate water capacities of 10,000 gallons or more.

Section 9.114 is proposed for repeal because the odorization reports described in this rule are no longer necessary.

Section 9.126(a)(3) is proposed to be amended to require all appurtenances and equipment placed into LP-gas service to be used and in compliance with any NFPA standard adopted by the Commission. In subsection (c), references to the Safety Division are proposed to be added. Subsection (d) is proposed to be deleted as unnecessary.

In §9.130, the proposed changes include references to the Safety Division added throughout. In subsection (a)(2)(B), the Commission proposes to specify a $60 fee plus mileage and rate from Austin as set by the official state travel mileage chart for a replacement nameplate; and in subsection (a)(2)(C), to delete a reference to hourly research fees.

Proposed amendments in §9.140 add references to the Safety Division, and in subsection (d)(4) change the word "required" to "permitted" to make this situation permissive. The proposed changes in the table in subsection (g) include one change in row 7, where the words "or storage" are added to the situation where lettering is required for cylinder exchange or storage racks. Proposed new subsection (g)(5) addresses signs for underground containers. In subsection (h)(3)(C), the six-inch-high cement parking wheelstop is proposed to be changed to a four-inch height requirement, and proposed new wording adds that it must be at least 12 inches from the curb; in subsection (h)(3)(E), the 48-inch requirement is proposed to be increased to 60 inches.

Proposed amendments in §9.142 correct references to some sections in NFPA 58.

Section 9.207 is proposed to be repealed because the situation is covered in NFPA 58.

Proposed amendments in §9.208 add references to the License and Permit Section, clarify a specific references to 49 CFR 180.407, and add a reference to 9 CFR Parts 100-185.

Sections 9.501 - 9.503, and §§9.506-9.508 (all of Subchapter F) are proposed to be repealed; these rules concern the adoption by reference of NFPA 51 relating to welding applications. Since the adoption by reference of NFPA 51, the Commission has adopted NFPA 58, which encompasses NFPA 51; therefore, the rules in this subchapter are no longer necessary.

Proposed Substantive and Possibly Controversial Changes

Section 9.2 includes two proposed new definitions in paragraphs (6) and (50) for "bobtail driver" and "transport driver." The proposed definitions will help differentiate between these types of vehicles, and will assist applicants and certificate holders to know which type of training or continuing education courses they need to complete. The definition of "assistant director" in current paragraph (6) is proposed to be deleted; following the Commission's recent reorganization, this definition is no longer needed. Paragraph (3) contains proposed nonsubstantive corrections to the definition of "AFT materials"; amendments to paragraphs (9) and (21) are proposed for clarification; paragraph (27) proposes a definition for "MPS gas"; the definition is substantively the same as the definition for "MPS gas" currently in §9.502, which is proposed for repeal. The definition for "operations supervisor" (renumbered to be paragraph (30)) as proposed adds the wording "and is authorized by the licensee to implement operational changes." The Commission proposes to add this wording to make clear that an operations supervisor must have the authority over the day-to-day LP-gas activities being supervised without having to obtain the licensee's approval. In the definition of "outlet" (renumbered to be paragraph (31)) the proposed changes attempt to address a situation which has caused confusion in the past over whether an outlet "materially duplicates" the originally-licensed location. The proposed changes will result in more locations being considered outlets; however, the Commission has proposed amendments to §9.17(a)(3) to allow an operations supervisor to supervise multiple outlets in certain situations; the amendments to §9.17 will be discussed in more detail in subsequent paragraphs of the preamble. Other proposed amendments in §9.2 correct references to Commission offices or renumber existing definitions.

Several amendments are proposed in §9.10, Rules Examination. In subsection (a), the Commission proposes that examinations will no longer be offered at the Commission's headquarters building, but rather at the AFRED Training Center, 6506 Bolm Road, Austin, Texas. This location has available free parking, which will assist applicants in arriving on time for exams. The hours that exams will be offered are proposed to be changed slightly to end at 12:00 noon; a Commission employee must be present during examinations, so the noon deadline will allow sufficient time for exam takers to complete the exams and allow Commission staff to perform other required job duties. AFRED recommends that individuals take exams on Tuesdays and Thursdays, which are more efficient for Commission staff. New subsection (a)(1) clarifies when and where exams will be given. Current subsection (a)(1) is proposed to be deleted because it refers to admittance letters, which will no longer be needed. Proposed amendments in subsection (a)(2) add Categories F, G, and J to Categories E and I as those which are required to complete management-level examinations; new wording clarifies that the E, F, G, I, and J exams are given only in conjunction with those courses, and other exams are given at the AFRED Training Center and other locations statewide. Proposed new subsection (a)(3) requires applicants in categories that require a course of instruction to complete both the course and the required exam before a certification card will be issued. Proposed new subsection (a)(4) allows applicants two years to complete a required course of instruction after passing the management-level rules exam; after two years, the applicant shall reapply as a new applicant. In subsection (a)(5) (renumbered from (a)(3)), proposed amendments clarify that the fees are nonrefundable, add Categories F, G, and J, and correct an internal rule reference.

The Commission proposes several changes in the table in subsection (b). In the first row, the "delivery truck exam" is proposed to be changed to "bobtail" exam to correspond with the new definition in §9.2 for "bobtail driver." The proposed wording also includes the specific activities covered by this course. Current row 6 refers to manufactured housing technician exam and is proposed to be deleted because there is only one individual currently certified in this category, and other examinations are available to cover this little-used category. In the row for "service and installation exam," the Commission proposes to delete the word "entire," which is misleading, and add references to "plus containers and appliances," which is more accurate. In the row for "appliance service and installation exam," Category N is proposed to be added to the list of categories for which this course applies.

In subsection (c), it is proposed that AFRED will notify individuals of scores within 15 days, instead of 30 days. In subsection (d), the Commission proposes that individuals who fail an exam no longer have to request an analysis in writing. Proposed new subsection (c)(3) is added to require individuals to carry their certification cards with them as proof of certification if a Commission employee requests it. Subsection (d)(2) is proposed to be deleted because it refers to admittance letters, which will no longer be used.

In §9.17(a)(1), the Commission proposes to add a reference to the License and Permit Section. In subsection (a)(3), proposed new wording is added in conjunction with the changes to the definition of "outlet" in §9.2 to allow an individual to be operations supervisor "at more than one outlet provided each outlet has a designated LP-gas certified employee who is responsible for the activities at that outlet." This change is proposed for safety reasons: if a Commission inspector finds a safety violation at an outlet, the inspector must be able to immediately locate that certified employee to take the outlet out of service, make repairs, or whatever other action may be necessary to address the safety situation. In subsection (g), Categories F, G, and J are proposed to be added to Categories E and I as those which may receive work experience substitution in certain instances.

Section 9.33, also proposed for repeal, concerns the welding advisory committee, which was formed before the Commission adopted NFPA 51 by reference, currently in Subchapter F. This committee has since disbanded, as its purpose was completed.

New §9.35 is proposed to require licensees to have written safety procedures in place and for their employees to know what these procedures are. The proposed new rule states that each licensee shall maintain a written procedure to be followed when any employee receives notification of a possible leak. The licensee shall ensure that all employees are familiar with the procedure and shall authorize employees to implement the procedure without management oversight. The written procedure shall be available to emergency response agencies as specified in NFPA 58, 3.10.2.1, and as stated in Table 1 of §9.403 of this title.

Proposed amendments in §9.41 clarify the use of pressure tests versus leakage tests or other inspections. The terms "pressure test" and "leakage test" are often used interchangeably; in fact, they are not the same. The Commission requires a pressure test for schools, so clarifying wording is proposed in subsection (b), in (b)(4), (e)(1), and (e)(2). References to the Safety Division are proposed to be added in several places.

Proposed amendments in §9.51 add references to fees being nonrefundable, add references to the License and Permit Section, add Category M to the list of categories requiring training for management-level and certain employee-level certificates, delete a reference to completing any AFT, add references to AFRED, and add Category J as requiring the 16-hour training course.

Proposed amendments in §9.52 also add Category J and Category M as requiring certain training, change the name of "delivery truck employee-level" to "bobtail employee-level," and add recreational vehicle technician employee-level. In subsection (a), proposed new wording addresses the only situation in which a training deadline is extended; an individual cannot retake and pass an examination in order to extend this deadline, but must complete the applicable training class. In subsection (b)(1)(B), proposed new wording states that beginning September 1, 2005, Category M and recreational vehicle technician certificate holders have until May 31, 2006, to complete their initial continuing education requirements. The Commission proposes to add to the list of current certificate holders Category M and the recreational vehicle technician to those certificates who, if the individual holds more than one certification as of February 1, 2001, (the original date of adoption of the continuing education requirements) must complete their continuing education requirement by the deadline assigned for the initial certificate.

The most extensive proposed changes for the training and continuing education requirements are found in the four tables in subsection (g). The changes are addressed narratively as follows.

In Table 1, a date of September 2005 is proposed to be added in the title to show when this table will become effective. Current course 2.2/2.4 is proposed to be changed to 2.2, and the course title corrected; other course titles for 2.1, 2.3, 3.1, 3.2, 3.5, 3.11, 6.1, the 80-hour and 16-hour courses are also proposed to be corrected. For courses 3.1, 3.2, 3.5, 3.7, 3.11, and the 16-hour course, an "x" is proposed to be added in the AFT column to indicate those courses will include AFT. New rows are proposed to be added for new courses 3.3 and 3.8, with an "x" added in the appropriate columns for the categories to which these two new courses apply. A new column is proposed to be added for Category M and an "x" added on the appropriate rows for the courses which apply to this new category. Finally, in the row for course 6.1, the current table shows an "x" only in the column for Category E; in the proposed new table, this course may fulfill the requirements for all the categories.

In Table 2, the September 2005 date is proposed to be added to the title of the table. The title of the "Delivery Truck/Service & Installation" category is proposed to be changed to "Bobtail Service & Installation." Current course 2.2/2.4 is proposed to be changed to 2.2, and the course title corrected; other course titles for 2.1, 2.3, 3.1, 3.2, 3.5, 3.11, and the 80-hour and 16-hour courses are also proposed to be corrected. For courses 3.1, 3.2, 3.5, 3.7, 3.11, and the 16-hour course, an "x" is proposed to be added in the AFT column to indicate these courses will include AFT. New rows are proposed to be added for new courses 3.3 and 3.8, with an "x" added in the appropriate columns for the categories to which these two new courses apply. A new column is proposed to be added for RV technician, and an "x" added on the appropriate rows for the courses which apply to this new category. With the addition of some new courses, the current courses have proposed slight revisions in who can take those courses to comply with the requirements for their category; in particular, the "x" in the current table is proposed to be deleted for courses 2.1 and 2.2 for "Bobtail" and "Bobtail Service & Installation"; for course 2.3, for "Portable Cylinder Filling;" and for course 3.1, "Bobtail" and "Appliance Service & Installation." In the footnotes on Table 2, the references to "delivery truck" are proposed to be changed to "bobtail," and the specific activities covered by the "Bobtail Driver" certification are proposed to be added.

On Table 3, the September 2005 date is proposed to be added to the title of the table. The Category M column is proposed to be added. The AFT column is proposed to be deleted because none of the CETP courses include AFT. Current CETP courses 2, 3, and 4 are proposed to be split into several smaller courses, shown on the Table as CETP 2.1, 2.2, 2.3, 2.4, 2.5, 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 4.1, and 4.2. The titles for courses 5 and 8 are proposed to be corrected. Finally, on the row for CETP 8, the "x" in the column for Category K is proposed to be deleted.

On Table 4, the September 2005 date is proposed to be added to the title of the table. The RV Technician column is proposed to be added. The AFT column is proposed to be deleted because none of the CETP courses include AFT. Current CETP courses 2, 3, and 4 are proposed to be split into several smaller courses, shown on the Table as CETP 2.1, 2.2, 2.3, 2.4, 2.5, 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 4.1, and 4.2. The titles for courses 5 and 8 are proposed to be corrected. In the row for CETP 5, this course is proposed to no longer apply to "Portable Cylinder Filling" or "Motor & Mobile Fuel," but to now apply to "Bobtail," "Bobtail Service & Installation," and "Service & Installation." The PERC GAS Check course is proposed to apply to "Bobtail." In the Note for this table, it is proposed that CETP courses 2.4, 3, 3.6, and 3.7 are not accepted by the Commission for continuing education credit. Finally, in footnotes 2 and 3, the references to "delivery truck" are proposed to be changed to "bobtail," and the specific activities covered by the "Bobtail" certification are proposed to be added.

The Commission notes that it has been informed that CETP is in the process of also changing its courses 5, 6, 7, and 8, so other changes to this Table may be necessary in a future rulemaking.

Section 9.53 is proposed to be repealed because it addresses situations where individuals could have received continuing education credit for attendance at previous courses that were held before the Commission's training and continuing education program was adopted. The rule included a four-year window, which has now passed; therefore, the rule is no longer necessary.

Section 9.54 includes mostly nonsubstantive proposed amendments including adding references to AFRED and adding new subsection (a)(1)(C) to address outside instructors for Category M courses.

Amendments in §9.113 proposed to add "gas utilization equipment, and appliances" to the list of other items that must be maintained in "safe" working order. If any of these items is not in safe wording order, the Safety Division may require that the installation be removed from service until repairs are made. This proposed amendment addresses situations where an appliance, for example, may be working, but it is not working safely.

Amendments proposed in §9.132 prohibit a licensee from selling an LP-gas container to an unlicensed individual for resale or installation without determining that such container will be installed by a licensee authorized to perform such installation. The Commission proposes to add that LP-gas shall not be sold for resale to an unlicensed individual as well. The Commission views the sale of LP-gas to an unlicensed individual for resale as more of a safety risk than selling a perhaps empty LP-gas container. If an individual is going to sell or resell LP-gas, that individual must be properly licensed by the Commission.

New wording proposed in §9.134 states that a licensee may connect to piping installed by an unlicensed person provided the licensee has performed a pressure test, verified that the piping has been installed according to the LP-Gas Safety Rules, properly tagged the installation, and filed a properly-completed LPG Form 22 with the Safety Division. This is because the Commission must be informed of LP-gas installations that may have been incorrectly or unsafely installed, especially if the Commission would not otherwise be aware of such installations; for example, members of a church may add on to the church building and pipe it to use LP-gas.

In §9.143(a), some NFPA 58 references are proposed to be corrected. An option to allow a back check valve where the flow is into the container only or a back check valve in lieu of the ESV is proposed to be added. The last sentence in subsection (a) before the wording for new paragraph (1) begins is proposed to be deleted, along with the same sentence at the end of subsection (b) before the deleted wording in subsection (b)(1) begins, and this wording is proposed to be added with some clarifications as new subsection (i). In subsection (a), new paragraphs (1) through (5) are proposed to be added; however, for the most part, this wording is not new. It is currently found in subsection (b), but the more accurate placement is under subsection (a). The only proposed changes from the existing paragraphs (1) through (5) are in paragraph (2), where the wording "and will activate the ESV at the bulkhead and the primary discharge valves at the container or containers" is proposed to be added for clarification, and in paragraph (5), where the phrase "interconnected and" is proposed to be added referring to pneumatically-operated internal valves and ESVs being interconnected and incorporated into at least one remote operating system. Also in subsection (a)(1), the 24-inch requirement is changed to 36 inches to comply with NFPA 58. In subsection (b), the existing paragraphs (1) through (5) are proposed to be deleted. In subsection (d)(4), some wording is proposed to be added to address underground or mounded containers, which are beginning to be used in Texas. In (d)(7)(C), proposed wording changes would mean that the top crossmember of a vertical bulkhead is not required to be 28 inches or less above ground level, but rather the height of it shall not result in torsional stress on the vertical supports of the bulkhead in the event of a pullaway. In subsection (e), the distance for the remote emergency shutoff device that is currently between 20 and 100 feet from the ESV is proposed to be changed, effective September 1, 2005, to a minimum of 25 feet to match the requirement in NFPA 58; existing installations may remain at 20 feet.

Some proposed new wording in §9.201 addresses some potentially unsafe situations involving transports. Proposed new subsection (a)(1) states that the transfer of LP-gas from one transport to another shall be permitted only through a hose with a nominal inside diameter of 1 1/4 inch or less and protected by an off-truck remote control shutdown as required in 49 CFR. Proposed new subsection (a)(2) states that an LP-gas transport shall not be joined to manifold piping or to a stationary container for use as an auxiliary storage container at any stationary installation except with prior approval from the Safety Division. In subsection (c), a proposed amendment corrects the wording of 49 CFR §177.834(j).

In §9.202, references to the License and Permit Section are proposed to be added. In subsection (c)(5), proposed new subparagraphs (B) and (C) are added to state that the Section shall not issue an LPG Form 4 if the Section does not have an inspection record of the transport or cylinder delivery unit by a Commission representative within four years of its initial registration on or after January 1, 2006, or the Section has not inspected the transport or cylinder delivery unit at least once within a four-year cycle thereafter. This proposed new wording addresses a situation where the Commission may need to inspect the vehicles of a single company with a large number of vehicles; the wording will ensure that all of a company's vehicles are routinely inspected, without adding a harsher requirement that all vehicles must be present at a particular day and time.

Proposed new §9.204 mirrors proposed new §9.113, but is specific to maintenance of vehicles. The wording of the two rules is generally the same and requires that the LP-gas vehicles and vehicle containers, valves, dispensers, accessories, piping, transfer equipment, gas container, gas utilization equipment, and appliances be maintained in safe working order. If any of these items is not in safe working order, the Safety Division may require that the vehicle be immediately removed from LP-gas service until necessary repairs are made.

Amendments proposed in §9.308(a), (b), and (b)(3) clarify that pressure testing and leakage testing shall be performed only by persons properly licensed or certified by the Commission.

Most changes proposed in §9.403 are in the Table, except for new subsection (c), which adds an explanation concerning the errata from NFPA. The proposed changes in the Table are as follows: The current rows for 1.3 and 1.7.40 are proposed to be deleted; 1.3 refers to §9.114, which is proposed to be repealed, and 1.7.40 is unnecessary because it refers to low emission transfer, which is covered in 3.11, which is not adopted. Several changes are proposed in the row for 2.3.3.2(b)(2). In the wording for "2a," the phrase "or a positive shutoff valve in combination with a back flow check valve" is proposed to be added. Also, wording in "b" is proposed to be added back to the Table; it was erroneously deleted during the last amendments to the Table. In the wording for "c," the word "Containers" is proposed to be changed to "Each container" for clarification. Also in "c," the phrase "and retrofitted" is proposed to be changed to "shall be retrofitted" to make the requirement clear. In "c1," the phrase "installed directly into the container" is proposed to be added for clarity and to ensure that the valve is installed in the best place for optimum safety. In "c2," the phrase "as close as practical" is proposed to be deleted and the specific distance of "within four feet" added for clarity; the distance of four feet is reasonable because an ESV for a bulkhead is already required to be installed within four feet of the bulkhead. A new row for 3.2.2.2 is proposed to be added to state that "Exception No. 1 and Exception No. 3" are not adopted. In the row for 3.2.5, for the firm foundation of concrete, masonry, or metal, the word "and" is proposed to be added so that it must also be otherwise firmly secured "against displacement." In the row for 3.2.12.1, the words "on or" are proposed to be added before the February 1, 2001, date in order to encompass the actual date of February 1. In the rows for 3.2.18.1, 3.2.18.2, and 3.2.18.3, the phrase "liquid or vapor service" is proposed to be changed to "liquid and/or vapor service". In the rows for 3.4.2.1, 3.4.2.7, 3.4.4.1(b), and 3.4.9.2, some references to water capacity are proposed to be corrected to "LP-gas capacity." A new row is proposed to be added for 3.10.2.1 which refers to proposed new §9.35, relating to Written Procedures for LP-Gas Leaks. A new row is proposed to be added to not adopt 3.10.2.2, which refers to the fire safety analysis, which the Commission determines is not needed because Commission rules already require redundant safety features. A new row is proposed to be added to indicate that 3.11 is not adopted, and current rows for 3.11.3, 3.11.3.1, 3.11.3.3, 3.11.4.3(c), and 3.11.5 are proposed to be deleted. In the row for 8.2.3(l), the section number is proposed to be corrected to 8.2.3.1(l).

Finally, the six rules in Subchapter F are proposed for repeal. This subchapter adopted by reference NFPA 51 concerning welding activities. Subsequently, the Commission adopted by reference NFPA 58, which encompasses NFPA 51. Therefore, the separate subchapter for NFPA 51 is no longer needed.

Mary McDaniel, Director, Safety Division; Dan Kelly, Director, Alternative Fuels Research and Education Division; and Steve Pitner, Director, Gas Services Division, have determined that for each year of the first five years the proposed amendments to §§9.6, 9.13, 9.52, and 9.130 are in effect there will be fiscal implications for state government as a result of enforcing or administering the amendments. Regarding §§9.6 and 9.13, the Commission will receive fees from the master/journeyman plumbers and the Class A or B air conditioning and refrigeration contractors for the Category D registration/examination exemption certificate at $50 for the initial registration and $20 for renewals. The Commission currently has about 1,100 Category D license exemptions (about 825 master/journeyman plumbers and 275 Class A or B air conditioning and refrigeration contractors), covering about 1,850 individual employees. Current license renewals for Category D are $70 per year, resulting in the Commission receiving $77,000 for the license exemption renewals. Those 1,850 individuals currently pay $20 for their annual renewal. Under the new registration program, the Commission anticipates that many of the 1,100 exemption holders will not renew the Category D licenses at the $70 renewal, but will take advantage of the less expensive registration of $50 per individual. The Commission also expects that some of the remaining 26,900 potential registrants will take advantage of this program. This is a voluntary program, so the Commission cannot state exactly how many individuals will participate. This is a less expensive and less time-consuming option than obtaining a Category D license, so presumably, there will be some participation. In the second year the proposed amendments will be in effect, the Commission will need to register about 1,368 additional individuals out of the remaining 26,470 potential registrants to address the negative fiscal impact of $77,000 due to the difference between the $50 initial registration and the $20 renewal fee. In the third through fifth years, the Commission anticipates no negative fiscal impact.

With the proposed amendments in §9.52, new Category M and recreational vehicle technician applicants will be required to attend training and continuing education courses. As of October 2004, Commission records showed there were about 155 Category M licensees and about 182 recreational vehicle technicians.

In §9.130, the specific $60 nameplate fee will ensure the Commission recovers its costs for these replacements, especially regarding the mileage.

There will be no fiscal implications to the Commission with regard to the remaining amendments, repeals, or new rules; any changes will be handled within current staffing and budget. There are no fiscal implications for local governments.

Ms. McDaniel, Mr. Kelly, and Mr. Pitner have also determined that the public benefit anticipated as a result of the amendments will be increased public health, safety and welfare, and perhaps some decreased regulatory costs associated with some of the changes allowing certain options for LP-gas installations. The Commission finds that allowing the LP-gas industry to conduct business pursuant to national uniform safety standards such as NFPA 58 achieves a reasonable balance between the public interest in having LP-gas, an environmentally-beneficial fuel, widely and continuously available and at lower costs, and the public interest in having LP-gas industry participants comply with comprehensive safety standards. With regard to the proposed amendments in §9.13, the Commission anticipates some communities may have more access to certified LP-gas employees; in addition, the registration program eliminates some duplicative requirements between agencies authorizing LP-gas activities.

There will be some financial impact on LP-gas licensees or other individuals required to comply with some of the proposed amendments. In §9.6 and §9.13, the new $50 registration and $20 renewal fees for master/journeyman plumbers and Class A or B air conditioning and refrigeration contractors will affect those individuals wishing to register with the Commission; this is a voluntary registration, but it is less expensive and less time-consuming than obtaining a Category D license. The new registration program with the Texas State Board of Plumbing Examiners and the Texas Department of Licensing and Regulation for the master or journeyman plumbers, or Class A or B Air Conditioning and Refrigeration Contractors, as licensed respectively by these two agencies, was jointly agreed to in principle by the Commission and these two agencies as a way to recognize the skills and training of the individuals who perform LP-gas activities, as authorized by the three agencies. Individuals could see a decrease with the new program because the Category D license renewal of $70 will no longer be required; only the existing $20 renewal will remain. Licensees with many employees may see a one-time increase to register those employees at $50 each, but the $20 renewal will remain thereafter; their costs will vary based on the number of employees. The primary benefit to these licensees will be that they no longer have to comply with the workers' compensation insurance requirements under a Category D license.

In §§9.7, 9.8, and 9.9, the proposed amendments clarify that certain fees are nonrefundable; however, the fee amounts are not proposed to be changed.

In §9.10, Categories F, G, and J are added to the list of license categories for which applicants are required to attend management-level courses and examinations. Applicants for these categories will be required to pay the fees for these and, depending on where and when a particular course is offered, pay travel expenses. In addition, the Commission is proposing to change the location where examinations are offered from the Commission's headquarters office at 1701 North Congress in Austin, Texas, to the AFRED training center at 6506 Bolm Road in Austin. The AFRED training center has free parking, so examinees will not be required to find and pay for metered parking as they now do at the 1701 North Congress location.

In §9.17(a)(3), proposed amendments will require an LP-gas certified employee at each outlet of any licensee; this amendment is in conjunction with the proposed change to allow operations supervisors to supervise more than one outlet. The amendments in subsection (a)(3) do not specify what kind of LP-gas certification the employee must have, but presumably it will be a less expensive certification than a management-level certification required for an operations supervisor. The amendment clarifies that there does not have to be an operations supervisor (i.e., a management-level employee) at each outlet, so there is a potential savings for a management-level certification, examination, training, and continuing education. Many licensees may need to have some employees become certified in order to comply with this rule. The Commission does not have records on exactly how many outlets a licensee has, nor how many employees or whether those employees are LP-gas certified or not.

Proposed new §9.35 requiring a written plan to handle LP-gas leaks may require some costs for producing the written plan, if a licensee does not already have one, and making it available to all employees; however, this cost should be negligible.

The proposed amendments in §9.41 specify that a pressure test must be performed on schools. This was always the Commission's intent; however, the rule wording used the term "leakage test" or "other inspection," which were not accurate. A pressure test is a more expensive test that provides more specific results than a leakage test; school districts that have been using a leakage test must now use a pressure test. The Commission does not have any information on how many or which school districts would be affected by this proposed change.

In §9.51(b)(1) and (f)(2), Category M is proposed to be added to the list of categories requiring training for new applicants, and Category J is proposed to be required to attend the 16-hour management-level course. Depending on which course these applicants choose to attend, there may be travel costs involved.

In §9.52, the Commission proposes to add Category M to the management-level and recreational vehicle technicians to the employee-level training and continuing education requirements. Beginning September 1, 2005, these groups have until May 31, 2006, to complete this requirement.

In §9.54, Category M certificate holders are proposed to be allowed to become outside instructors; this is voluntary but the nonrefundable application fee is $300 per course and renewal is $150.

In §9.101, the resubmission fee is proposed to be changed from $20 to $35, but the time period is also proposed to be changed from 10 days to 30 days; individuals can avoid this fee by filing timely and correctly.

In §9.113 and §9.204, the proposals with respect to required repairs may result in costs to licensees or consumers, but the Commission cannot state if these will be needed or what the exact costs would be.

In §9.130, the nameplate cost is $60 plus mileage and per diem; the hourly research charge is proposed to be deleted. The charge will ensure the Commission recoups its costs (especially with regard to mileage) for nameplate replacements, but the specific amounts will also allow Commission staff to give accurate costs to individuals requesting replacements.

In §9.134, proposed new wording requires a licensee to perform a pressure test, verify that piping is installed in accordance with the LP-Gas Safety Rules, tag the installation, and file LPG Form 22. The pressure test will result in some costs to licensees or consumers, but the Commission cannot determine exactly how much that would be.

In §9.140, in row 7 of the Table, storage racks are proposed to be added to cylinder exchange racks as being required to post a certain sign. Persons with storage racks will incur a small cost for producing a sign for each storage rack. Also, in subsection (g)(5), persons with underground LP-gas installations will be required to install signs, which should be a negligible one-time cost.

In §9.143(a), a back check valve is proposed to be added as an option, and in subsection (d)(4), underground or mounded containers are proposed to be required to have bulkheads.

In §9.201, it is proposed that licensees who have routinely or even occasionally used LP-gas transports for storage will have to obtain prior approval from the Commission to operate in this manner. The Commission sees the use of LP-gas transports in this manner as potentially unsafe because they do not usually include all the redundant safety features required of stationary LP-gas installations. This proposed prohibition could mean that licensees that have been operating in this manner would experience a loss of income or a cost to obtain stationary storage facilities, or both, but the Commission does not have information about how many licensees would be affected.

As proposed in §9.202(c)(5)(B) and (C), each and every transport will have to be inspected by a Commission employee at least once every four years or the Form 4 will not be issued. This may cause some licensee to be unable to operate a transport that does not meet the deadline, but licensees can avoid the potential loss by timely inspection of transports.

Pursuant to Texas Government Code, §2006.002(c), the Commission cannot determine the cost of compliance for individual, small business, or micro-business LP-gas businesses, because under the proposed amendments, operating an LP-gas business is voluntary, not mandatory. In addition, some aspects of safety compliance are mandatory, but the costs will vary for each licensee and certificate holder based on individual circumstances and choices. The Commission assumes that there are LP-gas businesses that meet the definitions of "micro-business" and "small business" set forth in Texas Government Code, §2006.001(1) and (2), respectively; however, the Commission does not have data showing the expense for each employee, the expense for each hour of labor, or the total sales revenue for any LP-gas business. In addition, the costs for any particular LP-gas business will vary based on that business' situation. Therefore, the Commission is not able to determine the exact cost of compliance based on the cost for each employee, the cost for each hour of labor, or the cost for each $100 of sales pursuant to Texas Government Code, §2006.002(c). Further, pursuant to Texas Government Code, §2006.002, the Commission finds that, considering that the purpose of Texas Natural Resources Code, Chapter 113, is to ensure the safe use of LP-gas, it is not feasible to reduce any adverse effect the proposed amendments could have on individuals, small businesses, or micro-businesses based on the size of the business.

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 60 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 Richard Gilbert at (512) 463-6935. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.

Subchapter A. GENERAL REQUIREMENTS

16 TAC §§9.1 - 9.3, 9.6 - 9.13, 9.16 - 9.18, 9.21, 9.22, 9.26 - 9.28, 9.35 - 9.38, 9.41, 9.51, 9.52, 9.54

The amendments and new rule are proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.1.Application of Rules, Severability, and Retroactivity.

(a) The LP-Gas Safety Rules apply to the location and operation of liquefied petroleum gas systems, equipment, and appliances. These standards also apply to truck and railcar loading racks, but do not apply to marine terminals, natural gasoline plants, refineries, tank farms, gas manufacturing plants, plants engaged in processing liquefied petroleum gases, or to railcar loading racks used in connection with these excluded establishments.

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

[(6) Subchapter F, Adoption by Reference of NFPA 51 (Standard for the Design and Installation of Oxygen-Fuel Gas Systems for Welding, Cutting, and Allied Processes), applies to the use of LP-gas as a welding fuel.]

(b) - (f) (No change.)

(g) Vehicles and fuel supply containers excluded from the requirements of this chapter pursuant to subsection (f) of this section shall comply with the requirements of §9.203 of this title, relating to School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections, and the Commission's exception to NFPA 58 §8.2.3(l) [ §8.2.3.1(k) ] in Table 1 in §9.403(a), relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections.

§9.2.Definitions.

In addition to the definitions in any adopted NFPA pamphlets, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

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

(3) AFT materials--The portion of a Commission training module [ manual ] consisting of the four sections of the Railroad Commission's LP-Gas [ Employee ] Qualifying Field Activities, including General Instructions, the Task Information, the Operator Qualification Checklist, and the Railroad Commission/Employer [ Commission Record and Employer ] Record.

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

(6) Bobtail driver--An individual who operates an LP-gas cargo tank motor vehicle of 5,000 gallons water capacity or less in metered delivery service.

[(6) Assistant director--The assistant director of the LP-Gas Safety Section who is the Commission's delegate responsible for the enforcement of the LP-Gas Safety Rules and the Texas Natural Resources Code.]

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

(9) Certificate holder--An individual:

(A) who has passed the required management-level qualification examination, satisfactorily completed any applicable training or continuing education requirements as specified in §9.52 of this title (relating to Training and Continuing Education Courses) , and paid the applicable fee; or

(B) (No change.)

(C) who has passed the required [ management-level qualification examination or ] employee-level qualification examination, has paid the applicable fee, and is required to comply with a training [ or continuing education ] requirement as specified in §9.52 of this title (relating to Training and Continuing Education Courses) .

(10) - (20) (No change.)

(21) Licensee--A person which has applied for and been granted an LP-gas license by the Commission , or who holds a master or journeyman plumber license from the Texas State Board of Plumbing Examiners or a Class A or B Air Conditioning and Refrigeration Contractors License from the Texas Department of Licensing and Regulation and has properly registered with the Commission .

(22) - (26) (No change.)

(27) MPS gas (Methylacetylene-propadiene, stabilized) --A mixture of gases in the liquid phase and as defined in Texas Natural Resources Code, Chapter 113, §113.002(4).

(28) [ (27) ] Noncorrosive--Corrosiveness of gas which does not exceed the limitation for Classification 1 of the American Society of Testing Material (ASTM) Copper Strip Classifications when tested in accordance with ASTM D 1834-64, "Copper Strip Corrosion of Liquefied Petroleum (LP) Gases."

(29) [ (28) ] Nonspecification unit--An LP-gas transport not constructed to DOT MC-330 or MC-331 specifications but which complies with the exemption in 49 Code of Federal Regulations §173.315(k). (See also "Specification unit" in this section.)

(30) [ (29) ] Operations supervisor--The individual who is certified by the Commission to actively supervise a licensee's LP-gas operations and is authorized by the licensee to implement operational changes .

(31) [ (30) ] Outlet--A site operated by an LP-gas licensee from which any regulated LP-gas activity is performed [ at which the business conducted materially duplicates the operations for which the licensee is initially granted a license ].

(32) [ (31) ] Outside instructor--An individual , other than a Commission employee , approved by AFRED [ the Commission ] to teach certain LP-gas training or continuing education courses.

(33) [ (32) ] Person--An individual, partnership, firm, corporation, joint ventureship, association, or any other business entity, a state agency or institution, county, municipality, school district, or other governmental subdivision, or licensee, including the definition of "person" as defined in the applicable sections of 49 CFR relating to cargo tank hazardous material regulations.

(34) [ (33) ] Portable cylinder--A receptacle constructed to DOT specifications, designed to be moved readily, and used for the storage of LP-gas for connection to an appliance or an LP-gas system. The term does not include a cylinder designed for use on a forklift or similar equipment.

(35) [ (34) ] Property line--The boundary which designates the point at which one real property interest ends and another begins.

(36) [ (35) ] Public transportation vehicle--A vehicle for hire to transport persons, including but not limited to taxis, buses (excluding school buses and mass transit or special transit vehicles), or airport courtesy vehicles.

(37) [ (36) ] Register (or registration)--The procedure to inform the Commission of the use of an LP-gas transport or container delivery unit in Texas.

(38) [ (37) ] Repair to container--The correction of damage or deterioration to an LP-gas container, the alteration of the structure of such a container, or the welding on such container in a manner which causes the temperature of the container to rise above 400 degrees Fahrenheit.

(39) [ (38) ] Rules examination--The Commission's written examination that measures an examinee's working knowledge of Chapter 113 of the Texas Natural Resources Code and/or the current LP-Gas Safety Rules.

(40) [ (39) ] School--A public or private institution which has been accredited through the Texas Education Agency or the Texas Private School Accreditation Commission.

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

(42) [ (41) ] 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.

(43) [ (42) ] Specification unit--An LP-gas transport constructed to DOT MC-330 or MC-331 specifications. (See also "Nonspecification unit" in this section.)

(44) [ (43) ] Subframing--The attachment of supporting structural members to the pads of a container, excluding welding directly to or on the container.

(45) [ (44) ] Trainee--An individual who has not yet taken and passed an employee-level rules examination.

(46) [ (45) ] Training--Courses required to be successfully completed as part of an individual's requirements to obtain or maintain certain certificates.

(47) [ (46) ] Transfer--The procedure to inform the Commission of a change in operator of an LP-gas transport or container delivery unit already registered with the Commission.

(48) [ (47) ] Transfer system--All piping, fittings, valves, and equipment utilized in dispensing LP-gas between containers.

(49) [ (48) ] Transport--Any bobtail or semitrailer equipped with one or more containers.

(50) Transport driver--An individual who operates an LP-gas trailer or semi-trailer equipped with a container of more than 5,000 gallons water capacity.

(51) [ (49) ] Transport system--Any and all piping, fittings, valves, and equipment on a transport, excluding the container.

(52) [ (50) ] Ultimate consumer--The individual controlling LP-gas immediately prior to its ignition.

§9.3.LP-Gas Report Forms.

Under the provision of the Texas Natural Resources Code, Chapter 113, the Railroad Commission of Texas has adopted the following forms [ for use by the LP-Gas Safety Section of the Gas Services Division ].

(1) - (12) (No change.)

[(13) LPG Form 17. Report of Odorization of Liquefied Petroleum Gases.]

(13) [ (14) ] LPG Form 18. Statement of Lost or Destroyed License.

(14) [ (15) ] LPG Form 18B. Statement of Lost or Destroyed LPG Form 4.

(15) [ (16) ] LPG Form 19. Inventory of LP-Gas Storage Facility.

(16) [ (17) ] LPG Form 20. Report of LP-Gas Incident/Accident.

(17) [ (18) ] LPG Form 21. Notice of Intent to Appear.

(18) [ (19) ] LPG Form 22. Report of LP-Gas Safety Rule Violations.

(19) [ (20) ] LPG Form 23. Statement in Lieu of Container Testing.

(20) [ (21) ] LPG Form 25. Application and Notice of Exception to the LP-Gas Safety Rules.

(21) [ (22) ] LPG Form 26. Franchise Tax Certification.

(22) [ (23) ] LPG Form 28. Notice of Election to Self-Insure Per Rule 9.26.

(23) [ (24) ] LPG Form 28A. Bank Declarations Regarding Irrevocable Letter of Credit.

(24) [ (25) ] LPG Form 500. Application for Installation.

(25) [ (26) ] LPG Form 500A. Notice of Proposed LP-Gas Installation.

(26) [ (27) ] LPG Form 501. Completion Report for Commercial Installations of Less than 10,000 Gallons Aggregate Water Capacity.

(27) [ (28) ] LPG Form 502. Request for Commission Identification Nameplate.

(28) [ (29) ] LPG Form 503. Request for Inspection of an LP-Gas System on School Bus, Public Transportation, Mass Transit, or Special Transit Vehicles.

(29) [ (30) ] LPG Form 505. Testing Procedures Certification for Category B and O Licenses.

(30) [ (31) ] LPG Form 506. Polyethylene Pipe/Tubing Heat-Fusion Certification.

(31) [ (32) ] LPG Form 995. Certification of Political Subdivision of Self-Insurance for General Liability, Workers' Compensation, and/or Motor Vehicle Liability Insurance.

(32) [ (33) ] LPG Form 996A. Certificate of Insurance, Workers' Compensation and Employer's Liability or Alternative Accident/Health Insurance.

(33) [ (34) ] LPG Form 996B. Statement in Lieu of Insurance Filing Certifying Workers' Compensation Coverage, including Employer's Liability Insurance or Alternative Accident/Health Insurance.

(34) [ (35) ] LPG Form 997A. Certificate of Insurance, Motor Vehicle Bodily Injury, and Property Damage Liability.

(35) [ (36) ] LPG Form 997B. Statement in Lieu of Motor Vehicle Bodily Injury, and Property Damage Liability Insurance.

(36) [ (37) ] LPG 998A. Certificate of Insurance, General Liability.

(37) [ (38) ] LPG 998B. Statement in Lieu of General Liability Insurance and/or Completed Operations or Products Liability Insurance.

(38) [ (39) ] LPG Form 999. Notice of Insurance Cancellation.

§9.6.Licenses and Fees.

(a) A prospective licensee may apply to the License and Permit Section of the Gas Services Division (the Section), [ Commission ] for one or more licenses specified in subsection (c)(1) - (16) of this section. Fees required to be paid shall be those established by the Commission and in effect at the time of licensing or renewal.

(b) (No change.)

(c) The license categories and fees are as follows.

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

(4) A Category D license for general installers and repairmen authorizes the sale, service, and installation of containers, excluding motor fuel containers, and the service, installation, and repair of piping, certain appliances as defined by rule, excluding recreational vehicle appliances and LP-gas systems, and motor fuel and recreational vehicle systems. The service and repair of an LP-gas appliance not required by the manufacturer to be vented to the atmosphere is exempt from Category D licensing. The installation of these unvented appliances to LP-gas systems by means of LP-gas appliance connectors is also exempt from Category D licensing. The original license fee is $100; the renewal fee is $70. Additionally, master or journeyman plumbers who are licensed by the Texas State Board of Plumbing Examiners or persons who are licensed with a Class A or B Air Conditioning and Refrigeration Contractors License issued by the Texas Department of Licensing and Regulation may register with the Section as described in §9.13 of this title (relating to General Installers and Repairman Exemption). The initial registration fee is $50; the registration renewal fee is $20.

(5) - (16) (No change.)

§9.7.Application for License and License Renewal Requirements.

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

(d) An applicant for a new license shall file with the License and Permit Section of the Gas Services Division (the Section) [ Commission ]:

(1) a properly completed LPG Form 1 listing all names under which LP-gas related activities requiring licensing are to be conducted and including a 24-hour emergency response telephone number . Any company performing LP-gas activities under an assumed name ("DBA" or "doing business as" name) shall file 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 with the Section [ Commission ]; and

(2) (No change.)

(3) pay the following fees:

(A) - (B) (No change.)

(C) the nonrefundable management-level rules examination fee specified in §9.10 of this title (relating to Rules Examination); and

(D) the nonrefundable fee for any required training course as specified in §9.51 of this title (relating to General Requirements for Training and Continuing Education).

(e) (No change.)

(f) For license renewals, the Section [ Commission ] shall notify the licensee in writing at the address on file with the Section [ Commission ] of the impending license expiration at least 30 calendar days before the date a person's license is scheduled to expire. The renewal notice shall include copies of LPG Forms 1, 1A, 7, and 26, whichever are applicable, showing the information currently on file. Renewals shall be submitted to the Section [ Commission ] with any necessary changes clearly marked on the forms, including on LPG Form 1 a 24-hour emergency response telephone number, if not previously submitted, along with the license renewal fee specified in §9.6 of this title (relating to Licenses and Fees) and any applicable transport registration fee specified in §9.202 of this title (relating to Registration and Transfer of LP-Gas Transports or Container Delivery Units) on or before the last day of the month in which the license expires in order for the licensee to continue LP-gas 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 LP-gas activities authorized by the license. After verification, if the licensee has met all other requirements for licensing, the Section [ Commission ] shall renew the license, and the person may resume LP-gas 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 by §9.6 of this title (relating to Licenses and Fees). Upon receipt of the renewal fee, the Section [ Commission ] 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, the Section [ Commission ] shall renew the license, and the person may resume LP-gas 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 by §9.6 of this title. Upon receipt of the renewal fee, the Section [ Commission ] 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, the Section [ Commission ] shall renew the license, and the person may resume LP-gas related activities.

(3) (No change.)

(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 the Section [ Commission ] a fee that is equal to two times the renewal fee required by §9.6 of this title.

(A) - (B) (No change.)

(g) Applicants for license or license renewal in the following categories shall comply with these additional requirements:

(1) An applicant for a Category A license or renewal shall file with the Section [ Commission ] for each of its outlets legible copies of:

(A) - (B) (No change.)

(2) An applicant for a Category B or O license or renewal shall file with the Section [ Commission ] a properly completed LPG Form 505 certifying that the applicant will follow the testing procedures indicated. The company representative designated on the licensee's LPG Form 1 shall sign the LPG Form 505.

(3) An applicant for Category A, B, or O license or renewal who tests tanks, subframes LP-gas cargo tanks, or performs other activities requiring DOT registration shall file with the Section [ Commission ] 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).

§9.8.Application for a New Certificate.

(a) An applicant for a new certificate shall:

(1) file with AFRED [ the Commission ] a properly completed LPG Form 16 and the applicable nonrefundable rules examination fee specified in §9.10 of this title (relating to Rules Examination);

(2) - (3) (No change.)

(b) (No change.)

§9.9.Requirements for Certificate Renewal.

(a) (No change.)

(b) Certificate renewal date. AFRED [ The Commission ] shall notify licensees of any of their employees' pending renewals and [ , or ] shall notify the individual if not employed by a licensee, in writing, at the address on file with AFRED [ the Commission ] no later than March 15 of a year for the May 31 renewal date of that year.

(c) Certificate holders shall remit [ pay ] the nonrefundable $35 annual certificate renewal fee to AFRED [ the Commission ] on or before May 31 of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee. An employee of a state agency, county, municipality, school district, or other governmental subdivision is not required to pay the annual certificate renewal fee.

(1) Failure to pay the nonrefundable annual renewal fee by the deadline shall result in a lapsed certification. To renew a lapsed certification, the individual shall pay the nonrefundable $35 annual renewal fee plus a nonrefundable $20 late-filing fee. Failure to do so shall result in the expiration of the certificate. If a person's certification expires, that person shall immediately cease performance of any LP-gas activities authorized by the certification. If an individual's certificate has been expired for more than two years from May 31 of the year in which certification lapsed, that individual shall comply with the requirements for a new certificate.

(2) Upon receipt of the annual renewal fee and any late-filing penalty, AFRED [ the Commission ] shall verify that the individual's certification has not been suspended, revoked, or expired for more than two years. After verification, AFRED [ the Commission ] shall renew the certification and the individual may continue or resume LP-gas activities authorized by that certification.

(d) Continuing education. Certificate holders shall successfully complete the continuing education requirements as specified in §9.51 and §9.52 [ §§9.51 - 9.53 ] of this title (relating to General Requirements for Training and Continuing Education , and [ ; ] Training and Continuing Education Courses[ ; and Continuing Education Credit for Previous Courses ]).

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

§9.10.Rules Examination.

(a) An individual who files [ has filed ] LPG Form 16 and pays the applicable nonrefundable examination fee may take the rules examination at the Commission's AFRED Training Center, 6506 Bolm Road, Austin, Texas, [ Austin office ] between the hours of 8:00 a.m. and 12:00 noon [ 2:00 p.m. ], 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.

(1) Dates and locations of available Commission LP-gas examinations may be obtained in the Austin offices of AFRED and on the Commission's web site at www.rrc.state.tx.us, 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.

[(1) Applicants who wish to take the rules examination at sites other than the Austin office shall submit LPG Form 16 and the applicable fee to the Commission's Austin office at least three business days prior to the examination date in order to receive an admittance letter from the Commission. The admittance letter shall be required at all exam sites other than the Austin office.]

(2) The Category E, F, G, I, and J [ E and I ] management-level rules examination shall [ also ] be administered only [ offered ] in conjunction with the Category E, F, G, I, and J management-level courses of instruction [ E and I training courses ]. Management-level rules examinations other than Category E, F, G, I, and J may be administered on any scheduled examination day.

(3) The Commission may not issue a certification card to an applicant for a management-level certificate that requires completion of a course of instruction until the applicant completes both the required course of instruction and passes the required management-level rules examination.

(4) An applicant for a management-level certificate shall pass the management-level rules examination within two years after completing a required course of instruction. An applicant who fails to pass such an examination within two years of completing such a course shall reapply as a new applicant.

(5) [ (3) ] Exam fees.

(A) The nonrefundable management-level rules examination fee (for company representatives and operations supervisors) is $50.

(B) The nonrefundable employee-level rules examination fee (for employees other than company representatives or operations supervisors) is $20.

(C) The nonrefundable examination fee shall be paid each time an individual wishes to take the examination.

(D) Individuals who register and pay for a Category E, F, G, I, or J [ E or I ] training course as specified in §9.51(f)(2)(A) [ §9.51(e)(2)(A) ] of this title (relating to General Requirements for Training and Continuing Education) shall pay the charge specified for the applicable examination.

(b) Table 1 of this subsection specifies the examinations offered by the Commission.

Figure: 16 TAC §9.10(b)

(c) Within 15 calendar [ 30 ] days of the date an individual takes an examination, AFRED [ the Commission ] shall notify the individual of the results of the examination.

(1) If the examination is graded or reviewed by a testing service, AFRED [ the Commission ] shall notify the individual of the examination results within 14 days of the date AFRED [ the Commission ] 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 [ the Commission ] shall notify the individual of the reason for the delay before the 90th day. AFRED [ The Commission ] may require a testing service to notify an individual of the individual's examination results.

(2) (No change.)

(3) 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.

(d) Failure of any examination shall immediately disqualify the individual from performing any LP-gas related activities covered by the examination which is failed, except for activities covered by a separate examination which the individual has passed. If requested [ in writing ] by an individual who failed the examination, AFRED [ the Commission ] shall furnish the individual with an analysis of the individual's performance on the examination.

(1) Any individual who fails an examination administered by the Commission only at the Austin location may retake the same examination only one additional time during a business day.

(2) Any subsequent examination shall be taken on another business day, unless approved by the assistant director for the AFRED Research and Technical Services Section or the assistant director's designee .

[(2) Any individual who fails an examination administered at a location other than the Austin location shall reapply to the Austin office for a new admittance letter.]

§9.11.Previously Certified Individuals.

(a) A licensee shall notify AFRED [ the Commission ] when a previously certified individual is hired by [ immediately ] filing LPG Form 16A and a nonrefundable $10 fee with AFRED within 10 calendar days [ the Commission ], or in lieu of that form, the $10 fee and a written notice including the employee's name as recorded on a current driver's license or Texas Department of Public Safety identification card, employee social security number, names of the newly-hired certified employee's previous and new employers, and types of LP-gas work to be performed by the newly-hired certified employee.

(b) (No change.)

§9.12.Trainees.

(a) 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 §9.10 of this title (relating to Rules Examination) subject to the following conditions.

(1) (No change.)

(2) The licensee or ultimate consumer shall ensure that LPG Form 16 [ and the applicable rules examination fee ] is on file with AFRED [ the Commission ] for each trainee at the time that the trainee begins supervised LP-gas activities. The trainee shall then have 45 calendar days to pass the applicable rules examination.

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

§9.13.General Installers and Repairman Exemption.

(a) 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 issued by the Texas Department of Licensing and Regulation may register with the License and Permit Section of the Gas Services Division (the Section) and be granted an exemption to the Category D licensing and examination requirements (including insurance, and training and continuing education) provided the applicant:

(1) 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;

(2) submits a legible photocopy of a current Air Conditioning and Refrigeration Contractor or Master or Journeyman Plumbers certificate;

(3) submits a legible photocopy of a picture state-issued identification card or driver's license;

(4) submits a properly completed LPG Form 16B; and

(5) pays the $50 registration fee.

[(a) Any individual who is currently licensed as a mater 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 issued by the Department of Licensing and Regulation may apply for and be granted an exemption to the Category D management-level rules examination and any service and installation employee-level rules examination for Categories D, E, K, or N only by submitting to the Commission the following:]

[(1) LPG Form 16B;]

[(2) a $30 original filing fee; and]

[(3) any information the Commission may reasonably require.]

(b) This exemption does not become effective until the registration/examination exemption certificate [ examination exemption card ] is issued by the Section [ Commission ].

[(c) An individual who holds a general installers and repairmen exemption shall not perform LP-gas related activities unless:]

[(1) that individual works for a properly licensed Category D, E, K, or N licensee;]

[(2) the individual successfully completes the applicable employee-level rules examination and training or continuing education required to work for a licensee in a category other than D, E, K, or N; or]

[(3) the individual successfully completes the rules examination and any training or continuing education requirements for a category of license other than Category D, E, K, or N.]

(c) [ (d) ] The registration/examination [ examination ] exemption accrues to the individual and is nontransferable.

(d) [ (e) ] 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 LP-gas activities until proper status has been regained.

(e) [ (f) ] In order to maintain an exemption, each individual issued a registration/examination exemption certificate [ an examination exemption card ] shall pay a $20 annual renewal fee to the Section [ Commission ] 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 all LP-gas activities until the exemption has been renewed. To renew a lapsed exemption, the applicant shall pay the $20 annual renewal fee plus a $20 late-filing fee. Failure to do so shall result in the expiration of the registration/examination [ examination ] exemption. If an individual's registration/examination [ examination ] exemption has been expired for more than two years, that individual shall complete all requirements necessary to apply for a new exemption.

[(g) Each applicant for exemption who plans to substitute an individual as noted in §9.17 of this title (relating to Designation and Responsibilities of Company Representatives and Operations Supervisors) for its company representative or operations supervisor may do so provided that individual complies with all of the other requirements.]

(f) [ (h) ] Any individual who is issued this exemption agrees to comply with the current edition of the LP-Gas Safety Rules. In the event the exempt individual surrenders, fails to renew, or has the licensed revoked either by the Texas State Board of Plumbing Examiners or the Department of Licensing and Regulation, that individual shall immediately cease performing any LP-gas activities granted by this section. The [ examination ] exemption certificate [ card ] shall be returned immediately to the Section [ Commission ] and all rights and privileges surrendered.

§9.16.Hearings for Denial, Suspension, or Revocation of Licenses or Certificates.

(a) The Commission may deny, suspend, or revoke a license or certificate for any individual who fails to comply with the LP-Gas Safety Rules.

(1) (No change.)

(2) If a person resubmits the application for license or license renewal within 30 calendar days of receipt of the denial with all deficiencies corrected, the License and Permit Section of the Gas Services Division (the Section) [ Commission ] shall issue the license or license renewal.

(b) Hearing regarding denial of license or 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 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 the Section [ Commission ] within 30 calendar days of the applicant's receipt of the notification of denial.

(2) Upon receipt of a request complying with paragraph (1) of this subsection, the Section [ Commission ] shall forward the request for a hearing to the Office of General Counsel for the purpose of scheduling [ schedule ] a hearing within 30 calendar days following the receipt of the request for hearing to determine the applicant's compliance or noncompliance with the licensing requirements for the category or categories of license sought.

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

(c) Suspension or revocation of licenses or certifications.

(1) If the Section or the Safety Division (the Division) [ Commission ] 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 113, or the LP-Gas Safety Rules, the Section or the Division [ Commission ] shall notify the licensee or 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 or certified person receives the notice by which the violation or noncompliance shall be corrected or discontinued. If the Section or the Division [ Commission ] determines the violation or noncompliance may pose imminent peril to the health, safety, or welfare of the general public, the Section or the Division [ Commission ] may notify the licensee or certified person orally with instruction to immediately cease the violation or noncompliance. When oral notice is given, the Section or the Division [ Commission ] shall follow it with written notification no later than five business days after the oral notification.

(3) The licensee 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 the Section or the Division [ Commission ] within the same time frame specified in the notice for correction or discontinuance.

(d) Hearing regarding suspension or revocation of licenses and certifications.

(1) If a licensee or certified person disagrees with the determination of the Section or the Division [ Commission ] under this section, that person may request a public hearing on the matter to be conducted in compliance with the Texas Government Code, Chapter 2001, et seq., the general rules of practice and procedure of the Railroad Commission of Texas, and the LP-Gas Safety Rules. The request shall be in writing, shall refer to the specific rules or statutes the licensee or certified person claims to have complied with, and shall be received by the Section or the Division [ Commission ] within 30 calendar days of the licensee's or certified person's receipt of the notice of violation or noncompliance. The Section or Division shall forward the request for hearing to the Office of General Counsel.

(2) If the Section or the Division [ Commission ] determines that the licensee or certified person may not comply within the specified time, the Section or the Division [ Commission ] may call a public hearing to be conducted in compliance with the Texas Government Code, Chapter 2001, et seq., the general rules of practice and procedure of the Railroad Commission of Texas, and any other applicable rules.

§9.17.Designation and Responsibilities of Company Representatives and Operations Supervisors.

(a) Each licensee shall have at least one company representative for the license and, in the case of a licensee other than a Category P licensee, at least one operations supervisor for each outlet.

(1) A licensee maintaining one or more outlets shall file LPG Form 1 with the License and Permit Section of the Gas Services Division (the Section) [ Commission ] designating the company representative for the license and/or LPG Form 1A designating the operations supervisor for each outlet.

(2) A licensee may have more than one company representative.

(3) An individual may [ shall ] be operations supervisor at more than one outlet provided each outlet has a designated LP-gas certified employee who is responsible for the activities at that outlet [ only one outlet ].

(4) (No change.)

(5) A licensee shall immediately notify the Section [ Commission ] in writing upon termination, for whatever reason, of its company representative or any operations supervisor and shall at the same time designate a replacement by submitting a new LPG Form 1 for a new company representative or a new LPG Form 1A for a new operations supervisor.

(A) A licensee shall cease all LP-gas activities 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. A licensee shall not resume LP-gas activities until such time as it has a properly qualified company representative or it has been granted an extension of time in which to comply as specified in subsection (g) [ (f) ] of this section.

(B) A licensee shall cease LP-gas activities at an outlet if, at the termination of its operations supervisor for that outlet, there is no other qualified operations supervisor at that outlet who has complied with the Commission's requirements. A licensee shall not resume LP-gas activities at that outlet until such time as it has a properly qualified operations supervisor or it has been granted an extension of time in which to comply as specified in subsection (g) [ (f) ] of this section.

(b) Company representative. A company representative shall comply with the following requirements:

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

(5) comply with the work experience or training requirements in subsection (g) [ (e) ] of this section, if applicable;

(6) (No change.)

(7) submit any additional information as deemed necessary by the Section [ Commission ].

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

(g) Work experience substitution for Category E, F, G, I, and J [ E and I ]. The assistant director for the Section may, upon written request, allow a conditional qualification for a Category E, F, G, I, or J [ E or I ] company representative or operations supervisor who passes the applicable management-level rules examination provided that the individual attends and successfully completes the next available Category E, F, G, I, or J [ E or I ] training course, or one agreed on by the assistant director and the applicant. The written request shall include a description of the individual's LP-gas experience and other related information in order that the assistant director may properly evaluate the request. If the individual fails to complete the training requirements within the time granted by the assistant director, the conditional qualification shall immediately be voided and the conditionally qualified company representative or operations supervisor shall immediately cease all LP-gas activities. Applicants for company representative or operations supervisor who have less than three years' experience or experience which is not applicable to the category for which the individual is applying shall not be granted a conditional qualification and shall comply with the training requirements in §9.52 of this title (relating to Training and Continuing Education Courses) prior to the Section [ Commission ] issuing a certificate.

§9.18.Reciprocal Examination Agreements with Other States.

(a) The Alternative Fuels Research and Education Division (AFRED) [ Commission ] may accept the examination requirements for LP-gas transport drivers from other states provided that the qualifying state has entered into a reciprocal agreement with Texas as specified in this section.

(b) A state that is interested in a reciprocal agreement with Texas shall provide a copy of its examination used to qualify transport drivers to AFRED [ the Commission ]. AFRED [ The Commission ] shall provide a copy of the Texas examination to the other state's LP-gas authority. The states shall review the materials to ensure that they contain substantially equivalent requirements. If each state accepts the requirements of the other state, both states shall sign the reciprocal agreement.

(1) The reciprocal agreement shall be in the form of a letter on the official letterhead of the state requesting the reciprocal agreement. The letter shall be signed and dated by an official representative of the LP-gas authority in both states. For Texas, the official representative shall be the AFRED [ assistant ] director or the [ assistant ] director's delegate.

(2) - (3) (No change.)

(4) AFRED [ The Commission ] shall maintain a current list of all states participating in reciprocal agreements, a list of participating states' applicable fees, and a list of all individuals who have received a reciprocal examination exemption.

(5) (No change.)

(c) Individuals who apply for a reciprocal examination exemption shall pay the applicable fees required by each state in exchange for exemption from examination requirements.

(1) Individuals from other participating states shall remit [ pay ] to AFRED [ the Commission ] the nonrefundable employee-level rules examination fee and the annual certificate renewal fee specified in §9.10 and §9.9 of this title (relating to Rules Examination, and Requirements for Certificate Renewal, respectively).

(2) (No change.)

(d) Applicants for a reciprocal examination exemption shall provide the following information to AFRED [ the Commission ] to verify that they are properly and currently certified in their state:

(1) (No change.)

(2) LPG Form 16R. Applicants from other states shall provide their Social Security numbers to AFRED [ the Commission ] for purposes of record-keeping and to comply with the requirements in Texas Family Code Annotated §231.302(c) (Vernon 1996), which mandates disclosure of Social Security numbers by applicants to assist in the administration of laws relating to child support. Social Security numbers are subject to or excepted from disclosure to the public in accordance with Texas Government Code, Chapter 552.

(3) Texas applicants shall provide copies of their AFRED-issued [ Commission-issued ] wallet certification cards showing their annual certification as their written proof when applying to other states for reciprocal examination exemptions.

(e) - (f) (No change.)

(g) Upon the effective date of this section, AFRED [ the Commission ] may issue reciprocal examination exemptions only for LP-gas transport driver examinations. For purposes of reciprocal agreements, a "transport" is defined as a cargo tank motor vehicle of more than 5,000 gallons water capacity [ semitrailer ].

§9.21.Franchise Tax Certification and Assumed Name Certificates.

(a) An applicant for an original or renewal license that is a corporation or limited liability company shall file LPG Form 26 with the License and Permit Section of the Gas Services Division (the Section), [ Commission ] prior to the issuance of such license, certifying that its Texas franchise taxes are current or such taxes are not applicable to the company. An applicant may file a Certificate of Account Status issued by the Office of the Comptroller of Public Accounts with the Section [ Commission ] as an alternative to filing the LPG Form 26.

(b) All applicants for license shall list on LPG Form 1 all names under which LP-gas related activities requiring licensing are to be conducted. Any company performing LP-gas activities under an assumed name ("DBA" or "doing business as" name) shall file 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 with the Section [ Commission ].

§9.22.Changes in Ownership, Form of Dealership, or Name of Dealership.

(a) Changes in ownership which require a new license.

(1) Transfer of dealership or outlet by sale, lease, or gift. The purchaser, lessee, or donee of any dealership or outlet shall have a current and valid license authorizing the LP-gas activities to be performed at the dealership or outlet or shall apply for and be issued an LP-gas license prior to engaging in any LP-gas activities which require a license. The purchaser, lessee, or donee shall notify the License and Permit Section of the Gas Services Division (the Section) [ Commission ] by filing a properly completed LPG Form 1 prior to engaging in any LP-gas activities at that dealership or outlet which require an LP-gas license.

(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, or the dissolution of a corporation or partnership, or any change in members of a partnership, or other change 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 the Section [ Commission ] in writing and shall immediately cease all LP-gas activities of the previously existing dealership which require an LP-gas license and shall not resume until the Section [ Commission ] issues an LP-gas license to the successor in interest.

(b) Change 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 current and valid license authorizing the LP-gas activities to be performed or shall apply for and be issued a license before engaging in any LP-gas activities which require an LP-gas license and shall immediately notify the Section [ Commission ] in writing of the change in business entity.

(c) Dealership name change. A licensee which changes its name shall not be required to obtain a new license but shall immediately notify the Section [ Commission ] as follows prior to engaging in any LP-gas activities under the new name. The licensee shall file:

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

(4) an amended LPG Form 7 to transfer any LP-gas transport or container delivery unit, including any fees specified in §9.202 of this title (relating to Registration and [ or ] Transfer of LP-Gas Transports or Container Delivery Units); and

(5) an amended LPG Form 19, if applicable, to specify storage container inventory.

(d) (No change.)

(e) In the event of a death of a sole proprietor or partner, the assistant director for the Section [ Commission ] 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 agree to comply with all applicable safety requirements.

§9.26.Insurance and Self-Insurance Requirements.

(a) LP-gas licensees or applicants for license shall comply with the minimum amounts of insurance specified in Table 1 of this section or with the self-insurance requirements in subsection (j) of this section. Before the License and Permit Section of the Gas Services Division (the Section) [ Commission ] grants or renews a license, an applicant shall submit either:

Figure: 16 TAC §9.26(a) (No change.)

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

(b) Certificates of insurance filed with the Section [ Commission ] shall have one of the endorsements specified in Table 1 of this section attached to the policy, and the endorsements shall not be canceled without cancellation of the policy to which they are attached.

(c) Each endorsement issued and attached to a certificate of insurance requires the insurance carrier, noted as "company" on the certificate of insurance, to give the Section [ Commission ] written notice 30 calendar days before the insurance cancellation. The 30-day notice commences to run from the date the notice is actually received by the Section [ Commission ].

(d) A licensee or applicant for a license that does not employ or contemplate employing any employee in LP-gas activities may file LPG Form 996B in lieu of a certificate of workers' compensation, including employer's liability insurance, or alternative accident and health insurance coverage. The licensee or applicant for license shall file the required insurance certificate with the Section [ Commission ] before hiring any person as a dealership employee.

(e) A licensee, applicant for a license, or an ultimate consumer that does not operate or contemplate operating a motor vehicle equipped with an LP-gas cargo container or does not transport or contemplate transporting LP-gas by vehicle in any manner may file LPG Form 997B in lieu of a certificate of motor vehicle bodily injury and property damage insurance, if this certificate is not otherwise required. The licensee or applicant for a license shall file the required insurance certificate with the Section [ Commission ] before operating a motor vehicle equipped with an LP-gas cargo container or transporting LP-gas by vehicle in any manner.

(f) A licensee or applicant for a license that does not engage in or contemplate engaging in any LP-gas operations that would be covered by completed operations or products liability insurance, or both, may file LPG Form 998B in lieu of a certificate of completed operations and/or products liability insurance. The licensee or applicant for a license shall file the required insurance certificate with the Section [ Commission ] before engaging in any operations that require completed operations and/or products liability insurance.

(g) A licensee or applicant for a license that does not engage in or contemplate engaging in any operations that would be covered by general liability insurance may file LPG Form 998B in lieu of a certificate of general liability insurance. The licensee or applicant for a license shall file the required insurance certificate with the Section [ Commission ] before engaging in any operations that require general liability insurance.

(h) (No change.)

(i) A state agency or institution, county, municipality, school district, or other governmental subdivision shall meet the requirements of this section for workers' compensation, general liability, and/or motor vehicle liability insurance by filing LPG Form 995 with the Section [ Commission ] as evidence of self-insurance, if permitted by the Texas Labor Code, Title 5, Subtitle C, and Texas Natural Resources Code, §113.097.

(j) Self-insurance requirements.

(1) (No change.)

(2) A licensee or license applicant desiring to self-insure shall file with the Section [ Commission ] a properly completed LPG Form 28, Notice of Election to Self-Insure Per Rule 9.26 (created 11/02) and a properly completed LPG Form 28-A, Bank Declarations Regarding Irrevocable Letter of Credit (created 11/02). The licensee or license applicant shall attach to the LPG Form 28-A any documentation necessary to show that the bank issuing the irrevocable letter of credit meets the requirements in paragraph (5)(E) of this subsection.

(3) - (5) (No change.)

(6) Within 30 days of the occurrence of any incident or accident involving the business activities of a self-insured LP-gas licensee that results in property damage or loss and/or personal injuries, the licensee shall notify the Railroad Commission, Safety Division, [ Gas Services Division, LP-Gas Section, ] in writing of the incident. The licensee shall include in the notification a list of the names and addresses of any individuals known to the licensee who may have suffered losses in the incident. The licensee shall also provide written notice to all such individuals of the licensee's status as being self-insured and of the expiration date of the licensee's letter of credit.

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

(a) A person may apply for an exception to the provisions of this chapter by filing LPG Form 25 along with supporting documentation, and a $50 filing fee with the Safety Division (the Division) [ Commission ].

(b) The application shall contain the following:

(1) (No change.)

(2) the type of relief desired, including the exception requested and any information which may assist the Division [ Commission ] in comprehending the requested exception;

(3) - (7) (No change.)

(c) Notice of the application for an exception to a safety rule.

(1) The applicant shall send a copy of LPG Form 25 by certified mail, return receipt requested, or otherwise delivered to all affected entities as specified in paragraphs (2), (3), and (4) of this subsection on the same date on which the form or application is filed with or sent to the Division [ Commission ]. The applicant shall include a notice to the affected entities that any objection shall be filed with the Division [ Commission ] within 18 calendar days of postmark or other delivery of the application. The applicant shall file all return receipts with the Division [ Commission ] as proof of notice.

(2) - (3) (No change.)

(4) The Division [ Commission ] 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 at the Division [ Commission ] 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 of 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.

(e) The Division [ Commission ] shall review the application within 21 business days of receipt of the application. If the Division [ Commission ] does not receive any objections from any affected entities as defined in subsection (c) of this section, the director of the [ Gas Services ] Division or the director's delegate may administratively grant the exception if the director determines that the installation, as proposed, does not adversely affect the health or safety of the public. The Division [ Commission ] 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. The Division [ Commission ] 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. If the director of the [ Gas Services ] Division or the director's delegate denies the exception, the Division [ Commission ] shall notify the applicant in writing, outlining the reasons and any specific deficiencies. 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. 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.

(f) A hearing shall be held when the Division [ Commission ] receives an objection as set out in subsection (d) from any affected entity, or when the applicant requests one following an administrative denial. The Division [ Commission ] shall 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., the general rules of practice and procedure of the Railroad Commission of Texas, and the LP-Gas Safety Rules.

(g) - (h) (No change.)

(i) 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 the Division [ Commission ] of an incomplete request. The applicant may resubmit an application request.

§9.28.Reasonable Safety Provisions.

If an LP-gas stationary installation, equipment, or appurtenances not specifically covered by the LP-Gas Safety Rules has been or will be installed, the Safety Division [ Commission ] shall apply and require any reasonable safety provisions to ensure the LP-gas installation is safe for LP-gas service. If the affected entity disagrees with the Division's [ Commission's ] determination, the entity may request a hearing. The installation shall not be placed into LP-gas operation until the Commission has determined that the installation is safe for LP-gas service.

§9.35.Written Procedure for LP-Gas Leaks.

Each licensee shall maintain a written procedure to be followed when any employee receives notification of a possible leak. The licensee shall ensure that all employees are familiar with the procedure and shall authorize employees to implement the procedure without management oversight. The written procedure shall be available to emergency response agencies as specified in NFPA 58, §3.10.2.1, and as stated in Table 1 of §9.403 of this title, (relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections).

§9.36.Report of LP-Gas Incident/Accident.

(a) At the earliest practical moment or within two hours following discovery, a licensee owning, operating, or servicing the equipment of an installation shall notify the Safety Division [ Commission ] by telephone of any event involving LP-gas which:

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

(4) involved [ damage to ] the LP-gas installation on any vehicle propelled by or transporting LP-gas; or

(5) (No change.)

(6) 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) - (5) of this subsection ; or [ . ]

(7) 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) (No change.)

(c) Following the initial telephone report, the LP-gas licensee who made the telephone report shall submit a properly completed LPG Form 20 to the Division [ Commission ]. The report shall be postmarked within 14 calendar days of the date of initial notification to the Division [ Commission ], or within five business days of receipt of the fire department's report, whichever occurs first, unless the Division [ Commission ] grants authorization for a longer period of time when additional investigation or information is necessary.

(d) Within five business days of receipt, the Division [ Commission ] shall review LPG Form 20 and notify in writing the person submitting the LPG Form 20 if the report is incomplete and specify in detail what information is lacking or needed. Incomplete reports may delay the resumption of LP-gas activities at the involved location.

(e) In the case of an accident or incident at a Category P licensee's location, the Category P licensee shall immediately notify the Category E, J, or other licensee who supplies cylinders to the Category P licensee and the Category E, J, or other licensee shall be responsible for making the accident or incident report to the Division [ Commission ] as specified in this section.

§9.37.Termination of LP-Gas Service.

(a) If the Safety Division (the Division) [ Commission ] determines that any LP-gas container or installation constitutes an immediate danger to the public health, safety, and welfare, the Division [ Commission ] shall require the immediate removal of liquid and vapor LP-gas and/or the immediate disconnection by a properly licensed company to the extent necessary to eliminate the danger. This may include appliances, equipment, or any part of the system including the servicing container. A warning tag shall be installed by the Division [ Commission ] until the unsafe condition is remedied. Once corrected, the tag shall be removed by the Division [ Commission ].

(b) If the Division [ Commission ] determines that any LP-gas container or installation does not comply with the Texas Natural Resources Code, Chapter 113, or the LP-Gas Safety Rules, but does not constitute an immediate danger to the public health, safety, and welfare, the Division [ Commission ] shall take action to ensure that the container or installation comes into compliance as soon as practicable. Division [ Commission ] action may include the placement of a warning tag. Once the container or installation complies with Texas Natural Resources Code, Chapter 113, and the LP-Gas Safety Rules, the Division [ Commission ] may remove or delegate the removal of the warning tag.

(c) If the affected entity disagrees with the removal from service and/or placement of a warning tag, the entity may request a review of the Division's [ Commission's ] decision within 10 calendar days. The Division [ Commission ] shall notify such entity of its finding, in writing, stating the deficiencies, within 10 business days. If the entity disagrees, the entity may request or the Division [ Commission ] on its own motion may 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.

§9.38.Reporting Unsafe LP-Gas Activities.

(a) A person may report any unsafe or noncompliant LP-gas activities to the Safety Division (the Division) [ Commission ] by mail, telephone, electronic mail, or facsimile transmission (fax). When possible, the person shall make the report using LPG Form 22. If a person makes a report of unsafe or noncompliant LP-gas activities to the Division [ Commission ] without using LPG Form 22, the Division [ Commission ] shall complete the LPG Form 22. Within five business days of receipt of such report, the Division [ Commission ] shall notify the licensee and any other applicable persons in writing regarding the report and specify the reported violations, if any.

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

§9.41.Testing of LP-Gas Systems in School Facilities.

(a) (No change.)

(b) School district requirements. Each school district shall ensure that a pressure test [ for leakage ] is performed on the LP-gas piping system in each school district facility as specified in this section.

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

(4) A school district shall provide written notice to the Safety Division (the Division) [ Commission ] specifying the date and the result of each pressure test [ or other inspection ] of the LP-gas piping system within one week of the date each test is performed.

(5) (No change.)

(c) (No change.)

(d) Commission requirements.

(1) The Division [ Commission ] shall maintain a copy of each school district's written notice under subsection (b)(4) of this section for at least one year from the date the Division [ Commission ] receives the notice.

(2) At the request of a school district, the Division [ Commission ] shall assist the district in providing for the certification of an employee of the school district or school, as applicable, to conduct the test and in developing a procedure for conducting the test.

(3) The Division [ Commission ] shall enforce the provisions of this rule pursuant to Texas Natural Resources Code, Chapter 113.

(e) Compliance deadlines.

(1) Each school district shall perform pressure [ leakage ] tests as required by this section at least once every two years beginning with the 2002-2003 school year.

(2) School districts shall complete the initial pressure [ leakage ] tests before the beginning of the 2002-2003 school year. In the case of a year-round school, a school district shall ensure that the pressure test in each of those facilities is conducted and reported not later than July 1 of the year in which the test is performed, with the first test due by July 1, 2002.

(3) (No change.)

§9.51.General Requirements for Training and Continuing Education.

(a) (No change.)

(b) Applicants for new licenses or new certificates, as set forth in §9.7 and §9.8 of this title (relating to Application for License and License Renewal Requirements, and Application for a New Certificate, respectively) and persons holding existing licenses or certificates shall comply with the training or continuing education requirements in this chapter. Any individual who fails to comply with the training or continuing education requirements by the assigned deadline may regain certification by paying the nonrefundable course fee and satisfactorily completing an authorized training or continuing education course within two years of the deadline. In addition to paying the course fee, the person shall pay any fee or late penalties to the Alternative Fuels Research and Education Division (AFRED) [ LP-Gas Safety Section ].

(1) The training requirements apply only to applicants for Category D, E, F, G, I, J, [ or ] K , or M management-level certificates and certain employee-level certificates.

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

(c) (No change.)

(d) No partial credit. Individuals attending classes shall receive credit only if they attend the entire class[ , properly complete any AFT, ] and pay any training or continuing education course fees in full. The Commission shall not award partial credit for partial attendance.

(e) Schedules. Dates and locations of available AFRED [ Commission ] LP-gas training and continuing education classes can be obtained in the Austin offices of [ the Gas Services Division and ] AFRED, and on the Commission's web site at www.rrc.state.tx.us and shall be updated at least monthly. AFRED [ Commission ] classes shall be conducted in Austin and in other locations around the state. Individuals or companies may request in writing that AFRED [ Commission ] classes be taught in their area. AFRED [ The Commission ] shall schedule its classes and locations at its discretion.

(f) Registering for a class.

(1) (No change.)

(2) Costs for classes.

(A) Each registration for a training class shall require the payment of the applicable nonrefundable class fee as follows:

(i) (No change.)

(ii) $150 for the initial 16-hour Category F, G, [ and ] I , and J class; and

(iii) (No change.)

(B) The Category E, F, G, [ and ] I , and J class fees do not include the management-level rules examination or license fee described in §9.6 and §9.10 of this title (relating to Licenses and Fees, and Rules Examination, respectively).

(C) Current certificate holders who have paid the annual renewal fee and who want to add a new certification other than Category E, F, G, [ or ] I or J shall not be required to pay the $75 class fee.

(D) (No change.)

(E) Requests for classes where no training or continuing education class credit is given shall be submitted in writing to the AFRED training section. The AFRED training section may conduct the requested classes at its discretion. The nonrefundable fee for a non-credit class is $250 if no overnight expenses are incurred by the AFRED training section, or $500 if overnight expenses are incurred. A political subdivision is not required to pay the non-credit class fee.

(F) AFRED [ The Commission ] may charge reasonable fees for materials for classes using third-party materials.

(3) AFRED [ The Commission ] shall schedule individuals to attend classes on a first-come, first-served basis, except as follows:

(A) Priority for attending the 16-hour Category F, G, [ and ] I , and J class, and the 80-hour Category E class is based on when the class fee is paid.

(B) Priority for attending classes other than the 16-hour Category F, G, [ and ] I , and J class, and the 80-hour Category E class shall be given to applicants or certificate holders who must comply with training or continuing education requirements by the next May 31 deadline.

(C) If any class has fewer than eight individuals registered within seven calendar days prior to the class, AFRED [ the Commission ] may cancel the class and may [ shall either refund any class registration fees or shall ] reschedule the registered individuals in another class agreed upon by the individuals and the AFRED training section. The AFRED training section reserves the right to determine class sizes for all classes.

(4) (No change.)

(5) Applicants who take classes offered by an entity other than AFRED [ the Commission ] shall comply with the registration, fee, and other requirements specified by that entity.

(g) Retention of records. Individual applicants or certificate holders shall be responsible for promptly notifying the AFRED training section in writing of any discrepancies or errors in the training or continuing education records, and shall notify AFRED [ the LP-Gas Safety Section ] of any discrepancies or errors in examination records or certification cards. In the event of a discrepancy, AFRED's [ the Commission's ] records, including due dates, shall be deemed correct unless the individual has copies of applicable documents which clarify the discrepancy.

§9.52.Training and Continuing Education Courses.

(a) Training. Applicants for a new certification listed in this subsection, other than Category E, F, G, [ or ] I , or J management-level individuals and except as stated in paragraph (4) of this subsection, shall attend at least eight hours of training prior to their first certificate renewal deadline of May 31 of the appropriate year. Applicants for Category D, E, F, G, I, J, [ or ] K , or M management-level certification shall attend the course or courses specified for the category. Category E applicants shall attend the 80-hour class; Category F, G, [ and ] I , and J applicants shall attend the 16-hour class; and all other applicants shall attend an eight-hour class. A certificate holder's training deadline shall not be extended if that individual retakes and passes an examination for the current category and level of certification. A training deadline shall be extended only after a certificate holder successfully completes an applicable training class.

(1) The following management- or employee-level applicants shall complete the training requirements:

(A) - (G) (No change.)

(H) Category M management-level;

(I) [ (H) ] Bobtail [ Delivery truck ] employee-level;

(J) [ (I) ] DOT portable cylinder filler employee-level;

(K) [ (J) ] Service and Installation employee-level;

(L) [ (K) ] Appliance service and installation employee-level; [ and ]

(M) [ (L) ] Motor/mobile fuel dispensing employee-level ; and [ . ]

(N) Recreational vehicle (RV) technician employee-level.

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

(b) Continuing education. A certificate holder shall complete at least eight hours of continuing education every four years. Upon fulfillment of this requirement, the certificate holder's next continuing education deadline shall be four years after the May 31 following the date of the most recent class the certificate holder has completed, unless the class was completed on May 31, in which case the deadline shall be four years from that date. A certificate holder's continuing education deadline shall not be extended if an examination for a current category and level of certification is retaken and passed; a continuing education deadline shall be extended only after a certificate holder successfully completes an applicable continuing education class. An individual who completes a continuing education class after the assigned deadline shall have four years from the original deadline to complete the next class.

(1) Individuals completing their continuing education requirements shall then have four years to complete the next eight-hour continuing education requirement (unless a new certification is added that requires training as specified in subparagraph (B) of this paragraph).

(A) Certificate holders with one of the following certificates shall complete the continuing education classroom instruction and any required AFT for that class:

(i) - (vii) (No change.)

(viii) Category M management-level;

(ix) [ (viii) ] Bobtail [ Delivery truck ] employee-level;

(x) [ (ix) ] DOT portable cylinder filler employee-level;

(xi) [ (x) ] Service and Installation employee-level;

(xii) [ (xi) ] Appliance service and installation employee-level; [ and ]

(xiii) [ (xii) ] Motor/mobile fuel dispensing employee-level ; and [ . ]

(xiv) Recreational vehicle (RV) technician employee-level.

(B) Certificate holders who hold only a Category D, F, G, J, or K certificate as of the effective date of this section shall complete their initial continuing education requirement by May 31, 2005. Beginning September 1, 2005, Category M and recreational vehicle technician certificate holders shall have until May 31, 2006, to complete their initial continuing education requirement. Certificate holders who hold a Category D, F, G, J, [ or ] K , or M certificate or a recreational vehicle technician certificate and who have more than one certification as of February 1, 2001, [ the effective date of this section ] shall complete their continuing education requirement by the continuing education deadline assigned for the initial certificate.

(C) (No change.)

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

(c) (No change.)

(d) Class materials. Individuals who attend AFRED-taught [ Commission-taught ] classes shall receive a copy of the class materials at no charge. Additional copies may be purchased from AFRED [ the Commission ] at the established price.

(e) Certificates of completion. The AFRED training section shall issue a certificate of completion to each individual who completes an AFRED-taught [ a Commission-taught ] class. Individuals shall retain the certificates as proof of completion of the class.

(f) Advanced field training (AFT). Some classes may include AFT in addition to the classroom hours, during which class attendees shall perform LP-gas activities. AFT shall be properly completed within 30 calendar days of attending the class. All qualification tasks included in the AFT shall be completed. The AFT materials, including the qualification checklist and the certification page, shall be readily available at the licensee's Texas business location for review by an authorized Commission representative during normal business hours.

(1) (No change.)

(2) Other AFT situations shall be handled as follows:

(A) - (E) (No change.)

(F) For an individual who is employed by a licensee when a class requiring AFT is attended, but who prior to the AFT's being certified ceases employment with the licensee and wishes to continue performing LP-gas activities, the individual shall contact a company representative or operations supervisor of another applicable licensee or an AFRED-approved [ approved Commission ] outside instructor to complete the AFT and maintain the LP-gas certification.

(3) Individuals who attend the 80-hour Category E management-level class or the 16-hour Category F, G, [ or ] I , or J management-level class shall perform any required AFT activities during the class.

(4) (No change.)

(g) Available courses. Training and continuing education courses and other information are shown in Tables 1 through 4 of this subsection. Items on the tables marked with an "x" indicate courses that meet training or continuing education requirements for management-level or employee-level certificate holders in that category.

Figure: 16 TAC §9.52(g)

§9.54.Commission-Approved Outside Instructors.

(a) General.

(1) AFRED [ The Commission ] may approve and award training or continuing education credit for the management-level and employee-level applicants and certificate holders specified in this section offered by an outside instructor provided the outside instructor complies with the requirements of this section.

(A) (No change.)

(B) Authorized Category E outside instructors may offer only the applicable training and continuing education classes to Category D or K management-level applicants and to portable cylinder filling, motor/mobile fuel dispenser, bobtail [ delivery truck ], service and installation, and appliance service and installation applicants and employee-level certificate holders.

(C) Authorized Category M outside instructors may offer only the applicable training and continuing education classes to Category M management-level applicants and recreational vehicle technician employee-level applicants or certificate holders.

(2) (No change.)

(3) All curriculum and course materials submitted for AFRED [ Commission ] review by an outside instructor applicant shall be printed or typewritten, organized, and easily readable, and shall remain confidential within the limits of Tex. Gov't Code, Chapter 552 (Public Information Act).

(4) Copies of the AFRED [ Commission's ] curricula and materials are available from AFRED [ the Commission ] at a reasonable cost.

(b) Application process. Outside instructor applicants shall submit the following to AFRED [ the Commission ]:

(1) (No change.)

(2) a copy of the applicant's Category D , E, or M [ or E ] current certification card or, in the case of Category D only, a copy of the master or journeyman plumber/class A or B registration/examination exemption certificate [ exemption card ] issued by the License and Permit Section of the Gas Services Division [ LP-Gas Safety Section ];

(3) for each course the outside instructor applicant intends to teach:

(A) (No change.)

(B) the course materials and related supporting information or a statement that the instructor will use the AFRED [ Commission's ] course materials;

(C) (No change.)

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

(c) Curriculum standards. The curriculum for each course that an outside instructor applicant intends to teach shall include, where applicable, information that is at least the equivalent of AFRED's [ the Commission's ] course or courses on the same topic or topics, and shall include all applicable current LP-gas regulations for Texas. Courses not offered by AFRED [ the Commission ] may be approved if the courses are equal or greater in overall quality to other approved courses.

(d) AFRED [ Commission ] review. AFRED [ the Commission ] shall review the application for approval as an outside instructor and, within 14 business days of the filing of the application, shall notify the applicant in writing that the application is approved, denied, or incomplete. If an application is incomplete, AFRED's [ The Commission's ] notice of deficiency shall identify the necessary additional information, including any deficiencies in course materials. The outside instructor applicant shall file the necessary additional information within 30 calendar days of the date of AFRED's [ the Commission's ] notice of deficiency. The outside instructor applicant's failure to file the necessary additional information within the prescribed time period may result in the dismissal of the outside instructor's application and the necessity of the outside instructor applicant again paying the non-refundable $300 registration fee for each subsequent filing of an application.

(e) Additional requirements for approval. Outside instructor applicants whose applications are approved in writing by AFRED [ the Commission ] shall attend AFRED's [ the Commission's ] Train-the-Trainer Course, the fee for which is included in the $300 registration fee. The Train-the-Trainer Course shall include classroom instruction and the subject-matter examinations for each course for which the applicant seeks approval to conduct. An outside instructor applicant shall pass the subject-matter examination for each course with a score of at least 85 percent and shall attend the subject-matter courses for which the applicant seeks approval to conduct.

(f) Notification of approval. Within 10 business days of the outside instructor applicant's completion of the requirements of this section, AFRED [ the Commission ] shall notify the applicant in writing that the applicant is approved as an outside instructor and the outside instructor may then begin offering the courses for which AFRED [ the Commission ] approved the outside instructor.

(g) Term of approval. AFRED [ Commission ] approval of an outside instructor remains valid for three years unless the Commission revokes the approval pursuant to subsection (l) of this section.

(h) Renewal of approval. To continue offering AFRED-approved [ Commission-approved ] LP-gas classes, an outside instructor shall renew his or her AFRED [ Commission ] approval every three years by paying a nonrefundable $150 renewal fee to AFRED [ the Commission ] and attending a Train-the-Trainer refresher class prior to the outside instructor's next renewal deadline.

(i) Revision of course materials. An outside instructor who revises any course materials previously approved by AFRED [ the Commission ] shall submit the revisions in writing, along with a nonrefundable $100 review fee to AFRED [ the Commission ], and shall not use the materials in a course until the outside instructor has received written AFRED [ Commission ] approval. AFRED [ The Commission ] shall review the revised course materials and, within 14 business days, shall notify the outside instructor in writing that the revised course materials are approved or not approved. If the revised course materials are not approved, AFRED's [ the Commission's ] notice shall identify the portion or portions that are not approved and/or shall describe any deficiencies in the revised course materials. The outside instructor shall file any necessary additional information within 30 calendar days of the date of AFRED's [ the Commission's ] notice of disapproval. The outside instructor's failure to file the necessary additional information within the prescribed time period may result in the dismissal of the outside instructor's request for approval of revised course materials and the necessity of again paying the $100 review fee for each subsequent filing of revised course materials.

(j) Continuing requirements. Outside instructors shall:

(1) maintain their Category D , E, or M [ or E ] certificate or Category D registration/examination exemption certificate [ exemption card ] in continuous good standing. The Train-the-Trainer class shall not count as credit towards any training or continuing education requirements. Any interruption of the required Category D , E, or M [ or E ] certification or Category D registration/examination exemption certificate [ exemption card ] may result in the Commission revoking the outside instructor's approval;

(2) (No change.)

(3) report to AFRED [ the Commission ] within three business days of the conclusion of a class the names, social security numbers, and any other information required by AFRED [ the Commission ], of the persons completing the class. The report shall be made by electronic mail (e-mail) in an electronic format provided by AFRED [ the Commission ]. The outside instructor shall ensure that AFRED [ the Commission ] receives the report by securing written acknowledgment of its receipt by AFRED [ the Commission ]. This acknowledgment may be by return electronic mail (e-mail) or by facsimile transmission (fax).

(k) Disclaimer. Outside instructors are responsible for every aspect of the classes they teach, including the location, schedule, date, time, duration, price, content, material, demeanor and conduct of the outside instructor, and reporting of attendance information. AFRED [ The Commission ] shall not monitor or supervise the actual class presentations by outside instructors. AFRED [ The Commission ] is not obligated to gather, maintain, or distribute information about outside instructors' course offerings, other than the names, telephone numbers, and addresses of approved outside instructors and the date on which an outside instructor's approval would expire, absent renewal. AFRED [ The Commission ] may refuse to issue or renew a certificate for an individual who presents for [ Commission ] credit an unapproved class; a class taught by an unapproved outside instructor; or a class taught using unapproved, incomplete, or incorrect materials.

(l) Complaints.

(1) Complaints regarding outside instructors shall be made to AFRED [ the Commission ] in writing by electronic mail (e-mail), facsimile transmission (fax), or U. S. Postal Service; shall include the printed name, address, telephone number, and, if filed by fax or U.S. Postal Service, the signature of the person complaining; shall state the outside instructor's name, the date, location, and title of the course; and shall set forth the facts that the complainant alleges demonstrate that the outside instructor:

(A) failed to meet or maintain AFRED [ Commission ] requirements for outside instructor approval;

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

(2) Upon receipt of a complaint and at its discretion, AFRED [ the Commission ] may gather any additional information necessary or appropriate to making a full and complete analysis of the complaint. AFRED [ The Commission ] shall deliver a written copy of the analysis and any findings by certified mail to the outside instructor who is the subject of the complaint. The outside instructor may file a written response within 20 calendar days from the date the findings are postmarked.

(3) If AFRED [ the Commission ] determines that an outside instructor has engaged in conduct prohibited by this section, AFRED [ the Commission ] may prepare a report that states the facts on which the determination is based and the recommendation as to the action AFRED [ the Commission ] intends to take. AFRED [ The Commission ] may issue a written warning to the outside instructor; decline to approve or renew the outside instructor's approval; or revoke the outside instructor's approval.

(4) AFRED [ The Commission ] shall mail a copy of the report and recommendation to the outside instructor by certified mail and shall include a statement that the outside instructor has a right to a hearing on the determination contained in the report.

(5) (No change.)

(6) If the outside instructor accepts the determination, he or she shall notify AFRED [ the Commission ] in writing of the acceptance, and AFRED [ the Commission ] shall take the action indicated in the report.

(7) If an outside instructor requests a hearing or fails to respond timely to the notice given under paragraph (5) of this subsection, the AFRED director shall refer the matter to the Office of General Counsel for the setting of a hearing. The Office of General Counsel shall assign an examiner to conduct a hearing, which shall be conducted under the Commission's General Rules of Practice and Procedure, Chapter 1 of this title (relating to Practice and Procedure).

(8) - (9) (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 March 9, 2005.

TRD-200501070

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


16 TAC §9.33, §9.53

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.33.LP-Gas Welding Advisory Committee.

§9.53.Continuing Education Credit for Previous Courses.

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 March 9, 2005.

TRD-200501071

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Subchapter B. STATIONARY INSTALLATIONS AND CONTAINER REQUIREMENTS

16 TAC §§9.101 - 9.103, 9.107, 9.109, 9.110, 9.113, 9.115, 9.126, 9.129, 9.130, 9.132, 9.134, 9.140 - 9.143

The amendments are proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.101.Filings Required for Stationary LP-Gas Installations.

(a) No LP-gas container shall be placed into LP-gas service or an installation operated or used in LP-gas service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable LP-Gas Safety Rules and statutes, in addition to any applicable requirements of the municipality or the county where an installation is or will be located. LP-gas systems under the jurisdiction of DOT Safety regulations in 49 CFR Parts 192 and 199, and Part 40 shall comply with Chapter 8 of this title (relating to Pipeline Safety Regulations) prior to implementation of service.

(b) Commercial installations with an aggregate water capacity of less than 10,000 gallons.

(1) Within 30 [ 10 ] calendar days following the completion of a container installation, the licensee shall submit LPG Form 501 to the Gas Services Division (the Division) [ Commission ] stating:

(A) - (C) (No change.)

(2) Pay a nonrefundable fee of $10 for each LP-gas container, including cylinders, each retail LP-gas cylinder exchange storage rack, and each forklift cylinder exchange rack or a forklift cylinder exchange installation where a storage rack is not installed that is listed on the form. A nonrefundable $35 [ $20 ] fee shall be required for any resubmission.

(3) The Division [ Commission ] shall review the submitted information within 21 business days of receipt of all required information and shall notify the applicant in writing of any deficiencies. LP-gas operations may commence prior to the submission of LPG Form 501 if the facility is in compliance with the LP-Gas Safety Rules.

(c) Aggregate water capacity of 10,000 gallons or more.

(1) For installations with an aggregate water capacity of 10,000 gallons or more, the licensee shall submit the following information to the Division [ Commission ] at least 30 days prior to construction if the applicant is required to give notice as described in §9.102 of this title (relating to Notice of Stationary LP-Gas Installations):

(A) - (E) (No change.)

(2) In addition to NFPA 58, §3.2.3.3, prior to the installation of any individual LP-gas container, the Division [ Commission ] shall determine whether the proposed installation constitutes a danger to the public health, safety, and welfare.

(A) The Division [ Commission ] may impose restrictions or conditions on the proposed LP-gas installation based on one or more of the following factors:

(i) - (viii) (No change.)

(B) (No change.)

(3) If an LP-gas stationary installation, equipment, or appurtenances not specifically covered by the LP-Gas Safety Rules has been or will be installed, the Division [ Commission ] shall apply and require any reasonable safety provisions to ensure the LP-gas installation is safe for LP-gas service. If the affected entity disagrees with the Division's [ Commission's ] determination, the entity may request a hearing. The installation shall not be placed into LP-gas operation until the Division [ Commission ] has determined that the installation is safe for LP-gas service.

(4) The Division [ Commission ] shall notify the applicant in writing outlining its findings. If the application is administratively denied, the applicant may modify the submission and resubmit it or request a hearing on the matter in accordance with the General Rules of Practice and Procedure of the Railroad Commission of Texas.

(5) The licensee shall not commence construction until notice is received from the Division [ Commission ]. Upon completion of a field inspection as specified in §9.109 of this title (relating to Physical Inspection of Stationary LP-Gas Installations), the operator, pending the inspection findings, may commence LP-gas operations of the facility.

(6) If the subject installation is not completed within one year from the date of the Division's completed review, the requirements of this subsection shall be resubmitted for the Division's review.

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

(f) In addition, the Division [ Commission ] may request LPG Form 5, LPG Form 8, or any other documentation or information pertinent to the installation in order to determine compliance with the LP-Gas Safety Rules.

[(g) If the subject installation is not completed within one year from the date of the Commission's completed review, the requirements of subsection (c) shall be resubmitted for the Commission's review.]

§9.102.Notice of Stationary LP-Gas Installations.

(a) For a proposed installation with an aggregate water capacity of 10,000 gallons or more, an applicant shall send a copy of the filings required under §9.101(c) of this title (relating to Filings Required for Stationary LP-Gas 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 the Safety Division (the Division) [ Commission ]. The Division [ Commission ] 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. The applicant may obtain names and addresses of owners from current county tax rolls.

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

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

(3) the Division [ Commission ] considers notice to be in the public interest.

(c) (No change.)

§9.103.Objections to Proposed Stationary LP-Gas Installations.

(a) Each owner of real property situated within 500 feet of the proposed location of any LP-gas containers of 10,000 gallon aggregate water capacity or more receiving notice of a proposed installation shall have 18 calendar days from the date the notice is postmarked to file a written objection using the LPG Form 500A sent to them by the applicant as described in §9.107(a)(1) [ §9.107(a)(2) ] of this title (relating to Hearings on Stationary LP-Gas Installations) with the Safety Division (the Division) [ Commission ]. An objection is considered timely filed when it is actually received by the Commission.

(b) The Division [ Commission ] 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:

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

(c) Upon review of the objection, the Division [ Commission ] shall either:

(1) (No change.)

(2) 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 the Division's [ Commission's ] letter to file its corrected objection. Clarification of incomplete or nonsubstantive 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.

§9.107.Hearings on Stationary LP-Gas Installations.

(a) Reason for hearing. The Safety Division (the Division) [ Commission ] shall call a public hearing if:

(1) (No change.)

(2) the Division [ Commission ] receives an objection that complies with §9.103 of this title (relating to Objections to Proposed Stationary LP-Gas Installations); or

(3) the Division [ Commission ] determines that a hearing is necessary to investigate the impact of the installation.

(b) Notice of public hearing. The Division [ Commission ] 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 §9.102 of this title (relating to Notice of Stationary LP-Gas Installations).

(c) (No change.)

§9.109.Physical Inspection of Stationary LP-Gas Installations.

(a) Aggregate water capacity of 10,000 gallons or more. The applicant shall notify the Safety Division (the Division) [ Commission ] in writing when the installation is ready for inspection. If the Division [ Commission ] 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 complete inspection is made. If any safety rule violations exist at the time of the Division's [ Commission's ] initial inspection, the installation may be required to cease LP-gas operations until the violations are corrected.

(b) Aggregate water capacity of less than 10,000 gallons. After receipt of LPG Form 501, the Division [ Commission ] shall conduct an inspection as soon as possible to verify that the installation described is in compliance with the LP-Gas Safety Rules. The facility may be operated prior to inspection if it is in compliance with the LP-Gas Safety Rules. If any LP-gas statute or safety rule violation exists at the time of the first inspection at a commercial installation, the subject container, including any piping, appliances, appurtenances, or equipment connected to it may be immediately removed from LP-gas service until the violations are corrected.

(c) Material variances. If the Division [ Commission ] determines the completed installation varies materially from the application originally accepted, correction of the variance and notification to the Division [ Commission ] or resubmission of the application is required. The review of such resubmitted application shall comply with §9.101 of this title (relating to Filings Required for Stationary LP-Gas Installations).

(d) In the event an applicant has requested an inspection and the Division [ Commission ] inspection identifies violations requiring modifications by the applicant, the Division [ Commission ] 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.

§9.110.Emergency Use of Proposed Stationary LP-Gas Installations.

When there is an immediate need for LP-gas supply under emergency circumstances, the Safety Division (the Division) [ Commission ] may waive the requirement for the initial complete inspection for a limited time period in order to meet the emergency need. LP-gas shall not be introduced into the container and it shall not be placed into LP-gas service until the Division [ Commission ] grants permission to do so.

§9.113.Maintenance.

All LP-gas storage containers, valves, dispensers, accessories, piping, [ and ] transfer equipment , gas utilization equipment, and appliances shall be maintained in safe working order and in accordance with the manufacturer's instructions and the LP-Gas Safety Rules. If any one of the LP-gas storage containers, valves, dispensers, accessories, piping, [ and ] transfer equipment , gas utilization equipment, and appliances is not in safe working order, the Safety Division may require that the installation [ shall ] be immediately removed from LP-gas service and [ shall ] not be operated until the necessary repairs have been made.

§9.115.Examination and Testing of Containers.

(a) In order to determine the safety of a container, the Safety Division (the Division) [ Commission ] may require that the licensee or operator of the container send a copy of the manufacturer's data report on that container to the Division [ Commission ]. The Division [ Commission ] may also require that the container and equipment be examined by a Category A, B, or O licensee, with a comprehensive report on the findings submitted to the Division [ Commission ] for its consideration. This subsection may be applied even though an acceptable LPG Form 23 has been received.

(b) Any stationary ASME LP-gas container previously in LP-gas service which has not been subject to continuous LP-gas vapor pressure shall be retested by an authorized Category A, B, or O licensed entity utilizing recognized ASME test methods to determine if the container is safe for LP-gas use in Texas, and the test results shall be submitted to the Division [ Commission ] on LPG Form 8.

(c) Any stationary ASME LP-gas container which has been subject to continuous LP-gas vapor pressure is not required to be tested prior to installation, provided the licensee or operator of the container files a properly completed LPG Form 23 with the Division [ Commission ] at the time LPG Form 500 is submitted for any facility requiring submission of a site plan in accordance with §9.101 of this title (relating to Filings Required for Stationary LP-Gas Installations).

(d) Any stationary ASME LP-gas container brought into Texas from out-of-state and intended for stationary LP-gas installation in Texas at any facility requiring submission of a site plan shall be tested in accordance with subsection (b) of this section prior to review approval being granted by the Division [ Commission ], unless that container is owned by a valid licensee. In this case, the Division [ Commission ] may determine that such tests are not necessary upon the receipt of an acceptable LPG Form 23 from the licensee.

§9.126.Appurtenances and Equipment.

(a) All appurtenances and equipment placed into LP-gas service shall be listed by a nationally recognized testing laboratory such as Underwriters Laboratory (UL), Factory Mutual (FM), or American Gas Association (AGA) unless:

(1) (No change.)

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

(3) it is used and in compliance with any NFPA standard adopted by the Commission.

(b) (No change.)

(c) The licensee or operator of the appurtenances or the equipment shall maintain documentation sufficient to substantiate any claims regarding the safety of any valves, fittings, and equipment and shall, upon request, furnish [ furnished ] copies to the Safety Division [ Commission ].

[(d) Compliance under this section does not ensure conformity with other state and federal regulations, such as those of the Texas Natural Resource Conservation Commission.]

§9.129.Manufacturer's Nameplate and Markings on ASME Containers.

(a) - (e) (No change.)

(f) Any replacement nameplate issued by an original container manufacturer for containers constructed prior to September 1, 1984, shall be stainless steel and shall be affixed in accordance with ASME Code. The owner or operator of the container shall ensure that a copy of LPG Form 8 is filed with the Safety Division (the Division) [ Commission ] when a replacement nameplate is affixed.

(g) - (h) (No change.)

(i) The Division [ Commission ] may remove a container from LP-gas service or require ASME acceptance of a container at any time if the Division [ Commission ] determines that the nameplate, in any form defined in subsection (a)(1) - (4) of this section, 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 defined in subsection (d) of this section.

§9.130.Commission Identification Nameplates.

(a) Prior to an original ASME nameplate or any manufacturer-issued nameplate becoming unreadable or detached from a stationary container with a water capacity of 4,001 gallons or more, the owner or operator of the container may request an identification nameplate from the Commission. Commission identification nameplates shall be issued only for containers which can be documented as being in continuous LP-gas service in Texas from a date prior to September 1, 1984. The container's serial number and manufacturer on the original or manufacturer-issued nameplate shall be clearly readable at the time the Commission identification nameplate is attached.

(1) (No change.)

(2) The Safety Division (the Division) [ Commission ] shall review LPG Form 502 and the supporting documentation. The Division [ Commission ] shall have the manufacturer's data report on file for the container or the licensee shall provide a copy to the Division [ Commission ]. The Commission identification nameplate shall not be issued unless the manufacturer's data report is reviewed. Upon review of submitted documents and confirmation of the manufacturer's data report, the Division [ Commission ] shall mail a letter to the owner or operator of the container stating the estimated costs, which will be based on the following:

(A) actual cost of the nameplate itself, including adhesive and other materials necessary to attach the nameplate; and

(B) projected travel costs for the Commission employee performing the inspection and/or attachment of the nameplate, at a cost of $60 plus the mileage and rate from Austin as set by the official state travel mileage chart. [ including mileage and per diem rates set by the legislature; and ]

[(C) hourly research fees calculated according to §20.105 of this title (relating to Charges for Providing Copies of Public Information), as applicable.]

(3) The owner or operator of the container shall pay the total estimated costs to the Division [ Commission ] before the Division [ Commission ] will proceed. Within 15 business days of receipt of all required documents and fees, the Division [ Commission ] shall:

(A) (No change.)

(B) inspect the container to ensure that the container is not dented, pitted, or otherwise damaged, and complies with other applicable LP-Gas Safety Rules, unless additional time is necessary as determined by the director of the Safety Division [ assistant director ]; and

(C) advise the owner or operator that the container shall be tested if it appears to be pitted or otherwise damaged.

(i) (No change.)

(ii) If the container passes the test, the Division [ Commission ] shall proceed with the attachment of the nameplate.

(D) Within the 15-day period, the Division [ Commission ] shall notify the applicant in writing, in clear and specific language, of the outcome of the Division's [ Commission's ] review.

(4) Following the Division's [ Commission's ] review of any required tests and payment of all other amounts due in addition to the previously-paid estimated costs, and when all requirements have been met, the Division [ Commission ] shall issue an identification nameplate for the container.

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

(b) (No change.)

(c) Commission identification nameplates shall not be valid until the Division [ Commission ] has received the final paperwork for the Commission employee who attached the nameplate. The Division [ Commission ] shall mail a letter to the owner or operator of the container stating the date on which the nameplate is valid.

(d) If at any time during the Commission identification nameplate request or approval process, the original ASME nameplate becomes completely unreadable or detached, the owner or operator of the container shall immediately remove the container from service and no Commission identification nameplate shall be issued or attached. In addition, the Division [ Commission ] may remove such a container from service as specified in §9.129(i) of this title (relating to Manufacturer's Nameplate and Markings on ASME Containers).

(e) (No change.)

(f) Fees charged for the Commission identification nameplate are nonrefundable except as described in this section. The cost of the nameplate is refundable only if the Commission employee finds upon actual inspection of the container that the original nameplate has become totally detached or unreadable, or that the container is pitted, dented, or otherwise damaged, therefore prohibiting attachment of the nameplate. The fees charged relating to the Division's [ Commission's ] travel and research costs will be refunded only if the Division's [ Commission's ] research shows that the nameplate cannot be issued. Otherwise, these fees will be nonrefundable if these activities have taken place before the Commission employee inspects a container and finds that a nameplate cannot be issued.

§9.132.Sales to Unlicensed Individuals.

A licensee shall not sell LP-gas or an LP-gas container to an unlicensed individual for resale . A licensee shall not sell an LP-gas container to an unlicensed individual [ or ] for installation without determining that such container will be installed by a licensee authorized to perform such installation.

§9.134.Connecting Container to Piping.

LP-gas piping shall be installed only by a licensee authorized to perform such installation. A licensee shall not connect an LP-gas container or cylinder to a piping installation made by a person who is not licensed to make such installation, except that connection may be made to piping installed by an individual on that individual's single family residential home . A licensee may connect to piping installed by an unlicensed person provided the licensee has performed a pressure test, verified that the piping has been installed according to the LP-Gas Safety Rules, properly tagged the installation, and filed a properly- completed LPG Form 22 with the Safety Division [ , provided the piping system complies with the LP-Gas Safety Rules ].

§9.140.Uniform Protection Standards.

(a) LP-gas transfer systems and storage containers shall be protected from tampering and/or vehicular traffic as specified in this section. New LP-gas containers which have never been installed or had LP-gas introduced into them, or other installations listed in paragraphs (1) - (4) of this subsection, are not required to comply with the fencing and guardrailing requirements in subsections (b) and (d) [ (c) ] of this section. The fencing and guardrailing requirements also do not apply to the following:

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

(b) (No change.)

(c) Containers which are exempt from the fencing requirements include:

(1) ASME containers or manual dispensers originally manufactured to or modified to be considered by the Safety Division (the Division) [ Commission ] as self-contained units. Self-contained units shall be protected as specified in subsection (d) of this section;

(2) - (3) (No change.)

(d) In addition to NFPA 58, §§3.2.4.2, 3.2.9.1(a) - (d), 3.2.9.2(d), 3.3.6.1, 3.9.3.8, 5.4.2.1, guardrails at LP-gas installations, except as noted in subsection (a) of this section, shall comply with the following:

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

(4) Openings in horizontal guardrailing, except the opening that is permitted [ required ] directly in front of a bulkhead, shall not exceed three feet. Only one opening is allowed on each side of the guardrailing. 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 through the 45-degree opening in front of the bulkhead or over the horizontal guardrailing.

(5) Clearance of at least three feet shall be maintained between the railing and any part of an LP-gas transfer system or container or clearance of two feet for retail cylinder filling or service station installations. The two posts at the ends of any railing which protects a bulkhead shall be located at 45-degree angles to the nearest corner of the bulkhead.

(6) (No change.)

(e) (No change.)

(f) If exceptional circumstances exist or will exist at an installation which would require additional protection such as larger-diameter guardrailing, then the licensee or operator shall install such additional protection. In addition, the Division [ Commission ] at its own discretion may require an installation to be protected with added safeguards to adequately protect the health, safety, and welfare of the general public. The Division [ Commission ] shall notify the person in writing of the additional protection needed and shall establish a reasonable time period during which the additional protection shall be installed. The licensee shall ensure that any necessary extra protection is installed. If a person owning or operating such an installation disagrees with the Division's [ Commission's ] determination made under this subsection, that person may request a public hearing on the matter. The installation shall either be protected in the manner prescribed by the Division [ Commission ] or removed from service with all product withdrawn from it until the Division's [ Commission's ] final decision.

(g) LP-gas installations shall comply with the sign and lettering requirements specified in Table 1 of this section. An asterisk indicates that the requirement applies to the equipment or location listed in that column.

Figure: 16 TAC §9.140(g)

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

(5) Any information in Table 1 of this subsection required for an underground container shall be mounted on a sign posted within 15 feet horizontally of the manway or the container shroud.

(h) In addition to NFPA 58, §5.4.2.2, storage racks used to store nominal 20-pound DOT portable or any size forklift containers shall be protected against vehicular damage by:

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

(3) Guardrail or guardposts are not required to be installed if:

(A) - (B) (No change.)

(C) a minimum four-inch-high [ six-inch-high ] cement parking wheelstop is installed on the driveway or parking space at least 12 inches from the curb ;

(D) (No change.)

(E) the distance from the cement parking wheelstop to any portable cylinder exchange rack is 60 [ 48 ] inches or more.

(4) (No change.)

(5) If exceptional circumstances exist or will exist at the location of a storage rack which would require additional protection such as larger-diameter guardrailing or guardposts, then the licensee or operator of the installation shall install such additional protection. In addition, the Division [ Commission ] at its own discretion may require an installation to be protected with added safeguards to adequately protect the health, safety, and welfare of the general public. The Division [ Commission ] shall notify the person in writing of the specific additional protection needed and shall establish a reasonable time period during which the additional protection shall be installed. The licensee shall ensure that any necessary extra protection is installed. If a person owning or operating such an installation disagrees with the Division's [ Commission's ] determination made under this subsection, that person may request a public hearing on the matter. The installation shall either be protected in the manner prescribed by the Division [ Commission ] or removed from service with all product withdrawn from it until the Division's [ Commission's ] final decision.

§9.141.Uniform Safety Requirements.

(a) In addition to NFPA 58, §3.2.4.1(f), containers shall be painted as follows:

(1) (No change.)

(2) If the Safety Division (the Division) [ Commission ] disapproves of a certain color, the licensee or ultimate consumer shall provide to the Division [ Commission ] information from the container or paint manufacturer stating specific reasons why the color is heat-reflective and should be approved. The director of the Division [ assistant director ] shall make the final determination and shall notify the licensee or ultimate consumer.

(b) - (f) (No change.)

(g) Any container that may have contained product other than LP-gas shall be thoroughly cleaned and purged prior to introducing LP-gas into such container. Only grades of LP-gas determined to be noncorrosive may be introduced into any container. LP-gas may not contain anhydrous ammonia, hydrogen sulfide, or any other contaminant.

(1) If it is known or suspected that the LP-gas has been or may be contaminated, the person responsible for the contamination shall have one or more of the tests contained in "Liquefied Petroleum Gas Specifications for Test Methods, Gas Processors Association (GPA) 2140" performed by a testing laboratory or individual qualified to perform the tests. The Division [ Commission ] may request information necessary to determine the qualification of any testing laboratory or individual.

(2) (No change.)

(3) Based on the results of the tests, the Division [ Commission ] may require that the LP-gas be removed immediately from the container or that the container be removed immediately from LP-gas service.

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

§9.142.LP-Gas Container Storage and Installation Requirements.

Except as noted in this section, LP-gas containers shall be stored or installed in accordance with the distance requirements in NFPA 58, §§3.2.2, 3.2.2.6, and 5.4.1 [ §3.2.2 and the entries for §3.2.2.7 and §5.4.1 as indicated in the table in §9.403 of this title (relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections) ] and any other applicable requirements in NFPA 58 or the LP-Gas Safety Rules.

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

§9.143.Bulkhead, Internal Valve, and ESV Protection for Stationary LP-Gas Installations with Individual or Aggregate Water Capacities of 4,001 Gallons or More.

(a) Instead of NFPA 58, §§3.2.19.1, 3.2.19.2, 3.2.19.3, and 3.2.19.6 [ §3.2.10.11 ], effective February 1, 2001, new stationary LP-gas installations with individual or aggregate water capacities of 4,001 gallons or more, including licensee and nonlicensee locations, shall install a vertical bulkhead and pneumatically-operated internal valves and pneumatically-operated emergency shutoff valves (ESVs), as required in this section and in the table in §9.403 of this title (relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted With Changes, Additional Requirements, or Corrections) for NFPA 58, §§3.2.18.1 and [ , ] 3.3.3.6[ , and 3.11.3 ]. In lieu of a pneumatically-operated internal valve or a pneumatically-operated ESV, a back check valve where the flow is into the container only may be installed. [ The filling of a container solely through a 1 3/4 inch double back check filler valve, directly installed in the container, and withdrawal of LP-gas through a commercially manufactured liquid evacuation valve, is exempt from the requirements of this section. ]

(1) The pneumatic ESVs shall be installed in the fixed piping of the transfer system upstream of the bulkhead and within four feet of the bulkhead with a stainless steel flexible wire-braided hose not more than 36 inches long installed between the ESV and the bulkhead.

(2) The ESVs shall be installed in the piping so that any break resulting from a pullaway will occur on the hose or swivel-type piping side of the connection while retaining intact the valves and piping on the storage side of the connection and will activate the ESV at the bulkhead and the primary discharge valves at the container or containers. Provisions for anchorage and breakaway shall be provided on the cargo tank side for transfer from a railroad tank car directly into a cargo tank. Such anchorage shall not be required from the tank car side.

(3) Temperature sensitive elements of ESVs shall not be painted nor shall they have any ornamental finishes applied after manufacture.

(4) Internal valves, ESVs, and backflow check valves shall be tested annually for working order. The results of the tests shall be documented in writing and kept in a readily accessible location for one year following the performed tests.

(5) Pneumatically-operated internal valves and ESVs shall be interconnected and incorporated into at least one remote operating system.

(b) Within two years of February 1, 2001, or by February 1, 2003, at the latest, stationary LP-gas installations in existence as of February 1, 2001, with individual or aggregate water capacities of 4,001 gallons or more, including licensee and nonlicensee locations, or railroad tank car transfer systems to fill trucks with no stationary storage involved, which do not have a bulkhead and/or backflow check valves where the flow is in one direction into the container and ESVs installed shall install vertical bulkheads and pneumatic ESVs. [ The filling of a container solely through a 1 3/4 inch double back check filler valve, directly installed in the container, and withdrawal of LP-gas through a commercially manufactured liquid evacuation valve, is exempt from the requirements of this section. ]

[(1) The pneumatic ESVs shall be installed in the fixed piping of the transfer system upstream of the bulkhead and within four feet of the bulkhead with a stainless steel flexible wire-braided hose not more than 24 inches long installed between the ESV and the bulkhead.]

[(2) The ESVs shall be installed in the piping so that any break resulting from a pullaway will occur on the hose or swivel-type piping side of the connection while retaining intact the valves and piping on the storage side of the connection. Provisions for anchorage and breakaway shall be provided on the cargo tank side for transfer from a railroad tank car directly into a cargo tank. Such anchorage shall not be required from the tank car side.]

[(3) Temperature sensitive elements of ESVs shall not be painted nor shall they have any ornamental finishes applied after manufacture.]

[(4) Internal valves, ESVs, and backflow check valves shall be tested annually for working order. The results of the tests shall be documented in writing and kept in a readily accessible location for one year following the performed tests.]

[(5) Pneumatically-operated internal valves and ESVs shall be incorporated into at least one remote operating system.]

(c) (No change.)

(d) Bulkheads, whether horizontal or vertical, shall comply with the following requirements:

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

(4) Bulkheads shall be located at least 10 feet from any aboveground [ the ] container or containers and a minimum of 10 feet horizontally from any portion of a container or valve exposed aboveground on any underground or mounded container . If the 10-foot distance cannot be obtained, the licensee or nonlicensee shall inform the Safety Division (the Division) [ Commission ] in writing and include all necessary information. The Division [ Commission ] may grant administrative distance variances to a minimum distance of five feet. If the licensee or nonlicensee requests that the bulkhead be closer than five feet to the container or containers, the licensee or nonlicensee shall apply for an exception to a safety rule as specified in §9.27 of this title (relating to Application for an Exception to a Safety Rule);

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

(7) Bulkheads shall be constructed by welding using the following materials or materials with equal or greater strength, as shown in the diagram.

Figure: 16 TAC §9.143(d)(7) (No change.)

(A) - (B) (No change.)

(C) The top crossmember of a vertical bulkhead shall be [ 28 inches or less above ground level and shall be ] six-inch standard weight steel channel iron. The channel iron shall be installed so the channel portion is pointing downward to prevent accumulation of water or other debris . The height of the top crossmember above ground shall not result in torsional stress on the vertical supports of the bulkhead in the event of a pullaway ;

(D) The kick plate shall be at least 1/4 inch steel plate installed at least 10 inches from the top of the bulkhead crossmember. A kick plate is not required if the crossmember is constructed to prevent torsional stress from being placed on the piping to the pipe risers;

(E) (No change.)

(8) (No change.)

(9) The Division [ Commission ] may require additional bulkhead protection if the installation is subject to exceptional circumstances or located in an unusual area where additional protection is necessary to protect the health, safety, and welfare of the general public.

(e) In addition to NFPA 58, §2.3.3.2 as amended in the table in §9.403 of this title (relating to Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections), ESVs and internal valves shall have emergency remote controls conspicuously marked according to the requirements of Table 1 of §9.140 of this title (relating to Uniform Protection Standards). Effective February 1, 2001, for all new facilities, where a bulkhead, internal valves, and ESVs are installed, at least one clearly identified and easily accessible manually operated remote emergency shutoff device shall be located between 20 and 100 feet from the ESV in the path of egress from the ESV ; beginning September 1, 2005, this distance shall be a minimum of 25 feet . Existing installations shall comply by August 1, 2001. The use of swivel-type piping as specified in subsection (d)(8) of this section shall not eliminate the requirement for an ESV. Swivel-type piping may be installed between the bulkhead and the minimum 12-inch nipple, but shall not eliminate the requirement for an ESV. The swivel-type piping shall be installed and maintained according to the manufacturer's instructions.

(f) - (g) (No change.)

(h) If necessary to increase LP-gas safety, the Division [ Commission ] may require a pneumatically-operated internal valve equipped for remote closure and automatic shutoff through thermal (fire) actuation to be installed for certain liquid and/or vapor connections with an opening of 3/4 inch or one inch in size.

(i) Stationary LP-gas installations with individual or aggregate water capacities of 4,001 gallons or more are exempt from subsections (a) and (b) of this section provided:

(1) each container is filled solely through a 1 3/4 inch double back check filler valve installed directly into the container; and

(2) the LP-gas installation is not used to fill an LP-gas transport.

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 March 9, 2005.

TRD-200501068

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


16 TAC §9.114

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.114.Odorizing and Reports.

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 March 9, 2005.

TRD-200501069

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Subchapter C. VEHICLES AND VEHICLE DISPENSERS

16 TAC §§9.201 - 9.204, 9.208, 9.211

The amendments and new rule are proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.201.Applicability.

(a) This subchapter applies to transport containers and moveable fuel storage tenders such as farm carts constructed to MC-330 or MC-331 Department of Transportation (DOT) specifications, nonspecification units, container delivery units, school buses, mass transit vehicles, special transit vehicles, and public transportation vehicles.

(1) Transfer of LP-gas from one transport to another shall be permitted only through a hose with a nominal inside diameter of 1 1/4 inch or less and protected by an off-truck remote control shutdown as required in 49 CFR.

(2) An LP-gas transport shall not be joined to manifold piping or to a stationary container for use as an auxiliary storage container at any stationary installation except with prior approval from the Safety Division.

(b) (No change.)

(c) Licensees and ultimate consumers shall comply with other DOT or motor vehicle requirements, if applicable. In addition, transports and container delivery units shall also comply with the applicable sections of Title 49 CFR, the Federal Motor Vehicle Safety Standards, and any other applicable regulations. Examples of such additional requirements are as follows:

(1) 49 CFR §177.834(j) states: "Except for a cargo tank conforming to §173.29(b)(2) of this subchapter, a person may not drive a cargo tank motor vehicle containing a hazardous material regardless of quantity unless: (1) All manhole closures are closed and secured; and (2) All valves and other closures in liquid discharge systems are closed and free of leaks." [ "Manholes and valves closed. A person may not drive a cargo tank and a motor carrier may not permit a person to drive a cargo tank motor vehicle containing a hazardous material regardless of quality unless all manhole closures are closed and secured, and all valves and other closures in liquid discharge systems are closed and free of leaks." ]

(2) - (3) (No change.)

§9.202.Registration and Transfer of LP-Gas Transports or Container Delivery Units.

(a) A person who operates a transport equipped with LP-gas cargo tanks or any container delivery unit, regardless of who owns the transport or unit, shall register such transport or unit with the License and Permit Section of the Gas Services Division (the Section) [ Commission ] in the name or names under which the operator conducts business in Texas prior to the unit being used in LP-gas service.

(1) To register a unit previously unregistered in Texas, the operator of the unit shall:

(A) pay to the Section [ Commission ] the $270 registration fee for each bobtail truck, semitrailer, container delivery unit, or other motor vehicle equipped with LP-gas cargo tanks; and

(B) (No change.)

(2) To register an MC-330/MC-331 specification unit which was previously registered in Texas but for which the registration has expired, the operator of the unit shall:

(A) pay to the Section [ Commission ] the $270 registration fee;

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

(3) (No change.)

(b) The Section [ Commission ] may also request that an operator registering or transferring any unit:

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

(c) When all registration or transfer requirements have been met, the Section [ Commission ] shall issue LPG Form 4 which shall be properly affixed in accordance with the placement instructions on the form. LPG Form 4 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 LP-gas and to fill the transport containers.

(1) A person shall not operate an LP-gas transport unit or container delivery unit in Texas unless the LPG Form 4 has been properly affixed or unless its operation has been specifically approved by the Section [ Commission ].

(2) A person shall not introduce LP-gas into a transport container unless that unit bears an LPG Form 4 or unless specifically approved by the Section [ Commission ].

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

(5) The Section [ Commission ] shall not issue an LPG Form 4 if :

(A) the Section [ Commission ] or a Category A, B, or O licensee determines that the transport is unsafe for LP-gas service ; [ . ]

(B) the Section does not have an inspection record of the transport or cylinder delivery unit by a Commission representative within four years of its initial registration on or after January 1, 2006; or

(C) the Section has not inspected the transport or cylinder delivery unit at least once within a four-year cycle thereafter.

(6) If an LPG Form 4 decal on a unit currently registered with the Section [ Commission ] is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement decal by filing LPG Form 18B and a $50 replacement fee with the Section [ Commission ].

§9.203.School Bus, Public Transportation, Mass Transit, and Special Transit Vehicle Installations and Inspections.

(a) After the manufacture of or the conversion to an LP-gas system on any vehicle to be used 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 the Safety Division (the Division), [ Commission ] in writing on LPG Form 503 that the applicable LP-gas powered vehicles are ready for a complete inspection to determine compliance with the LP-Gas Safety Rules.

(b) If the Division [ Commission's ] initial complete inspection finds the vehicle in compliance with the LP-Gas Safety Rules and the statutes, the vehicle may be placed into LP-gas 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. Inspections shall be conducted within a reasonable time frame to ensure the vehicles are operating in compliance with the LP-Gas Safety Rules . If violations exist at the time of the initial complete inspection, the vehicle shall not be placed into LP-gas service and the manufacturer, licensee, or ultimate consumer making the installation or conversion shall correct the violations. For public transportation vehicles only, either manufactured to use or converted to LP-gas, if the Division [ Commission ] does not conduct the initial inspection of such vehicle within 30 business days of receipt of LPG Form 503, the vehicle may be operated in LP-gas service if it complies with the LP-Gas Safety Rules. The manufacturer, licensee, or ultimate consumer shall file with the Division [ Commission ] documentation demonstrating compliance with the LP-Gas Safety Rules, or the Division [ Commission ] shall conduct another complete inspection before the vehicle may be placed into LP-gas service.

(c) (No change.)

(d) If the requested Division [ Commission ] inspection identifies violations requiring modifications by the manufacturer, licensee, or ultimate consumer, the Division [ Commission ] 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.

§9.204.Maintenance of Vehicles.

All LP-gas vehicles and vehicle containers, valves, dispensers, accessories, piping, transfer equipment, gas container, gas utilization equipment, and appliances shall be maintained in safe working order and in accordance with the manufacturer's instructions and the LP-Gas Safety Rules. If any of the LP-gas vehicles and vehicle containers, valves, dispensers, accessories, piping, transfer equipment, gas containers, gas utilization equipment, or appliances is not in safe working order, the Safety Division may require that the vehicle be immediately removed from LP-gas service and not be operated until the necessary repairs have been made.

§9.208.Testing Requirements.

Each transport container unit required to be registered with the License and Permit Section of the Gas Services Division (the Section) [ Commission ] shall be tested in accordance with 49 CFR 180.407, relating to requirements for test and inspection of specification cargo tanks . The tests shall be conducted by a Category A, B, or O licensee. This section shall not apply to the initial transfer of unregistered units that are tested and transferred from another state. If the test results show any unsafe condition, or if the transport unit does not comply with 49 CFR Parts 100-185, the transport container unit shall be immediately removed from LP-gas service and [ . The unit ] shall not be returned to LP-gas service until all necessary repairs have been made and the Section [ Commission ] authorizes in writing its return to service.

§9.211.Markings.

Each LP-gas transport and container delivery unit in LP-gas 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 shall be legible and at least two inches in height and in sharp color contrast to the background. The Safety Division [ Commission ] shall determine whether the name marked on the unit is sufficient to properly identify the licensee or ultimate consumer.

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 March 9, 2005.

TRD-200501066

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


16 TAC §9.207

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.207.Requirements for Movable Fuel Storage Tenders Such as Farm Carts.

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 March 9, 2005.

TRD-200501067

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Subchapter D. ADOPTION BY REFERENCE OF NFPA 54 (NATIONAL FUEL GAS CODE)

16 TAC §§9.303, 9.308, 9.312

The amendments are proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.303.Exclusion of NFPA 54, §6.31.

The Commission does not adopt NFPA 54, §6.31, which refers to NFPA 52, Compressed Natural Gas (CNG) Vehicular Fuel Systems. Persons engaging in CNG activities shall comply with the Commission's adopted rules at Chapter 13 of this title (relating to Regulations for Compressed Natural Gas (CNG) [ and Liquefied Natural Gas (LNG) ]).

§9.308.Identification of Piping Installation.

(a) In addition to the requirements of NFPA 54, Part 3, Gas Piping Installation, LP-gas piping shall be installed, altered, repaired, pressure tested, and leakage [ and ] tested only by persons properly licensed or certified by the Commission.

(b) Upon completion of the installation, alteration, repair, pressure testing, or leakage [ or ] testing of an LP-gas piping system, the licensee shall attach to the end of the piping nearest the container a decal or tag of metal or other permanent material indicating the following information:

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

(3) the year the piping was installed, altered, repaired, pressure tested, or leakage tested.

(c) (No change.)

§9.312.Certification Requirements for Joining Methods.

(a) In addition to the requirements in NFPA 54, §2.6.9, and NFPA 58, §2.4.4.3, and in addition to other LP-gas certification requirements, prior to performing heat-fusion on polyethylene pipe or tubing, an individual shall be certified by either the Safety Division (the Division) [ Commission ] or a person or certification school authorized by the Division [ Commission ]. The certification shall confirm that the individual has a working knowledge of heat-fusion methods and the ability to properly perform the heat-fusion activity.

(b) - (c) (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 March 9, 2005.

TRD-200501065

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Subchapter E. ADOPTION BY REFERENCE OF NFPA 58 (LP-GAS CODE)

16 TAC §9.403

The amendments are proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.403.Sections in NFPA 58 Not Adopted by Reference, and Adopted with Changes, Additional Requirements, or Corrections.

(a) Table 1 of this section lists certain NFPA 58 sections which the Commission does not adopt because the Commission's corresponding rules are more pertinent to LP-gas activities in Texas, or which the Commission adopts with changed language or additional requirements in order to address the Commission's existing rules, or with corrections listed in the Errata dated November 19, 2001, issued by NFPA to correct typographical or other errors in the published NFPA 58 pamphlet. According to NFPA, these errors may be corrected in future printings.

Figure: 16 TAC §9.403(a)

(b) (No change.)

(c) For rows in Table 1 of this section that refer to "errata," some versions of the 2001 edition of NFPA 58 included errors that were corrected by NFPA in later printings. The Table shows the correct wording.

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 March 9, 2005.

TRD-200501064

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Subchapter F. ADOPTION BY REFERENCE OF NFPA 51 (STANDARD FOR THE DESIGN AND INSTALLATION OF OXYGEN-FUEL GAS SYSTEMS FOR WELDING, CUTTING, AND ALLIED PROCESSES)

16 TAC §§9.501 - 9.503, 9.506 - 9.508

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Railroad Commission of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Natural Resources Code, §113.051, which authorizes the Commission to adopt rules relating to any and all aspects or phases of the LP-gas industry that will protect or tend to protect the health, welfare, and safety of the general public, and §113.052, which authorizes the Commission to adopt by reference, in whole or in part the published codes of the National Fire Protection Association as standards to be met in the design, construction, fabrication, assembly, installation, use, and maintenance of containers, tanks, appliances, systems, and equipment for the transportation, storage, delivery, use, and consumption of LP-gas or any one or more of these purposes.

Statutory authority: Texas Natural Resources Code, §113.051 and §113.052.

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

Issued in Austin, Texas on March 8, 2005.

§9.501.Adoption by Reference of NFPA 51.

§9.502.Clarification and/or Exclusion of Definitions in NFPA 51.

§9.503.Exclusion of Certain Sections and Chapters 6, 7, and 8 in NFPA 51.

§9.506.Sections in NFPA 51 Adopted with Additional or Alternative Language.

§9.507.Container Installation Requirements.

§9.508.LP-Gas Pressure Going into a Building.

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 March 9, 2005.

TRD-200501063

Mary Ross McDonald

Managing Director

Railroad Commission of Texas

Proposed date of adoption: September 1, 2005

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


Part 9. TEXAS LOTTERY COMMISSION

Chapter 401. ADMINISTRATION OF STATE LOTTERY ACT

Subchapter D. LOTTERY GAME RULES

16 TAC §401.315

The Texas Lottery Commission proposes amendments to 16 TAC §401.315, relating to the "Mega Millions" on-line game. The proposed amendments change the game matrix from 5 of 52 and 1 of 52 to 5 of 56 and 1 of 46. The proposed amendments change the minimum grand/jackpot amount from $10 million to $12 million. The proposed amendments also change the second prize level from $175,000 to $250,000 and the third prize level from $5,000 to $10,000. Additionally, the odds of winning for each prize category as well as the overall odds of winning change. For the grand/jackpot prize category, the odds of winning and the percent of prize fund change from 1:135,145,920 and 63.38% to 1:175,711,536 and 63.6%, respectively. For the second prize category, the odds of winning and the percent of prize fund change from 1:2,649,920 and 13.21% to 1:3,904,701 and 12.8%, respectively. For the third prize category, the odds of winning and the percent of prize fund change from 1:575,089 and 1.74% to 1:689,065 and 2.90%, respectively. For the fourth prize category, the odds of winning and the percent of prize fund change from 1:11,276 and 2.66% to 1:15,313 and 1.96%, respectively. For the fifth prize category, the odds of winning and the percent of prize fund change from 1:12,502 and 2.40% to 1:13,781 and 2.18%, respectively. For the sixth prize category, the odds of winning and the percent of prize fund change from 1:833 and 2.40% to 1:844 and 2.38%, respectively. For the seventh prize category, the odds of winning and the percent of prize fund change from 1:245 and 5.71% to 1:306 and 4.58%, respectively. For the eighth prize category, the odds of winning and percent of prize fund change from 1:152 and 3.96% to 1:141 and 4.26%, respectively. For the ninth prize category, the odds of winning and the percent of prize fund change from 1:88 and 4.54% to 1:75 and 5.34%, respectively. The proposed amendments also change provisions throughout the rule that refer to the number of numbers in either field of numbers. Also, language is added that provides that if the sales support a jackpot that is at least $12 million lower than the advertised jackpot, the resulting jackpot to be paid will be the highest fully funded million plus $12 million or the advertised jackpot, whichever is lower. In no event, however, shall the jackpot paid be less than the advertised jackpot of the immediately prior drawing.

Lee Deviney, Financial Administration Director, has determined for each year of the first five years the amendments are in effect there will be the following foreseeable additional fiscal implications for state or local government as a result of enforcing or administering the amended section: FY05, $4,292,166; FY06, $18,350,214; FY07, $16,537,394; FY08, $14,848,429; and FY09, $13,288,694. There will be no anticipated economic cost to individuals. There is a small anticipated positive impact on small or micro businesses who sell lottery products; but, no anticipated impact on local or state employment as a result of implementing the amended section.

Robert Tirloni, Products Manager, Lottery Operations Division, has determined that each of the first five years the amendments as proposed is in effect, the public benefit anticipated as a result of the proposed amendments is additional sales and revenue. Retailers will benefit because they will be receiving additional monies from the additional Mega Millions sales. The State of Texas will receive additional revenue from the additional Mega Million sales. The amendments are proposed in conjunction with the addition of another state to the game, California. The addition of the population of California to the existing population base of the game may lead to lower jackpot levels unless the game matrix is changed and the odds of winning the grand/jackpot prize are changed. Mega Millions is attractive to players because of the high jackpot levels the game can generate. Texas' actual sales history illustrates that Mega Millions is viewed as a triple-digit jackpot game in the state. In Texas, Mega Millions average per capita sales increase as the Mega Millions jackpot increases. The proposed changes will cause the game to continue to offer high jackpot prize levels to players.

Written comments on the proposed amendments may be submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. Comments must be received within 30 days after publication in the Texas Register to be considered. The Texas Lottery Commission will also conduct a hearing to receive comment on the proposed amendments on April 7, 2005, at 9:00 a.m. at the Commission auditorium, 611 East Sixth Street, Austin, Texas.

The amendments are proposed under Government Code, §466.015 which authorizes the Commission to adopt all rules necessary to administer the State Lottery Act and to adopt rules governing the establishment and operation of the lottery, under Government Code, §466.451 which authorizes the Commission to adopt rules relating to multijurisdiction lottery game or games, and under Government Code, §467.102 which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.

The amendments implement Government Code, Chapter 466 and specifically, Government Code, §466.451.

§401.315."Mega Millions" On-Line Game Rule.

(a) (No change.)

(b) Definitions. In addition to the definitions provided in §401.301 of this title (relating to General Definitions), and unless the context in this section otherwise requires, the following definitions apply.

(1) - (7) (No change.)

(8) Number--Any play integer from one through 56 [ 52 ].

(9) (No change.)

(10) Play--The six numbers selected on each play board and printed on the ticket. Five numbers are selected from the first field of 56 [ 52 ] numbers and one number is selected from the second field of 46 [ 52 ] numbers.

(11) Play board--Two fields , the first field of 56 [ 52 ] numbers and the second field of 46 numbers, each found on the playslip.

(12) (No change.)

(c) (No change.)

(d) Play for Mega Millions.

(1) Type of play. A Mega Millions player must select five numbers from the first field of numbers from 1 through 56 [ 52 ] and an additional one number from the second field of numbers from 1 through 46 [ 52 ] in each play or allow number selection by a random number generator operated by the computer, referred to as Quick Pick.

(2) - (3) (No change.)

(e) (No change.)

(f) Prizes for Mega Millions.

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

(3) Prize categories.

(A) Matrix of 5/56 [ 5/52 ] and 1/46 [ 1/52 ] with 50 percent estimated prize fund.

Figure: 16 TAC §401.315(f)(3)(A)

(B) Jackpot prize payments.

(i) The portion of the prize money allocated from the current Mega Millions prize pool for the grand/jackpot prize, plus any previous portions of prize money allocated to the grand/jackpot prize category in which no matching tickets were sold and money from any other available source pursuant to a guaranteed first prize amount announcement will be divided equally among all jackpot prize winners in all participating lotteries. Prior to each drawing, the Mega Millions grand/jackpot prize amount that would be paid in 26 annual installments will be advertised. The advertised jackpot prize amount shall be the basis for determining the amount to be awarded for each Mega Millions play matching all five of the five Mega Millions winning numbers drawn for field 1 and the one Mega Millions winning number drawn for field 2. However, if the sales support a jackpot that is at least $12 million lower than the advertised jackpot, the resulting jackpot to be paid will be the highest fully funded million plus $12 million or the advertised jackpot, whichever is lower. In no event, however, shall the jackpot paid be less than the advertised jackpot of the immediately prior drawing. When there is only one winning Mega Millions ticket for the jackpot prize, no grand/jackpot prize paid in 26 annual installments shall be less than $12 [ $10 ] million.

(ii) - (vi) (No change.)

(C) Second through ninth level prizes.

(i) Second Prize: Mega Millions plays matching five of the five Mega Millions winning numbers drawn for field 1 (in any order), but not matching the Mega Millions winning number drawn for field 2 shall be entitled to receive a second prize of $250,000 [ $175,000 ].

(ii) Third Prize: Mega Millions plays matching four of the five Mega Millions winning numbers drawn for field 1 (in any order) and the Mega Millions winning number drawn for field 2 shall be entitled to receive a third prize of $10,000 [ $5,000 ].

(iii) - (ix) (No change.)

(D) - (H) (No change.)

(g) - (l) (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 March 11, 2005.

TRD-200501106

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: April 24, 2005

For further information, please call: (512) 344-5113