The Railroad Commission of Texas proposes the repeal of §§9.231 - 9.247, relating to identification of approved appliances; installation of appliances; automatic shut-off devices; room heaters in public building; provision for combustion air; open flame appliances; testing appliances; appliances made for venting; appliance connectors; water heaters; appliance repairs and conversions; venting of appliances definitions; minimum safe performance; appliances to be vented and approved venting systems; maximum unvented BTU input; installation; and power venting. The sections proposed to be deleted are in existing subchapter D, titled LP-gas appliances and appurtenant equipment, which is being renamed to "Adoption by Reference of NFPA 54 ( National Fuel Gas Code ) and NFPA 501C ( Standard on Recreational Vehicles ) and Adopted Exceptions to NFPA 54."

In addition, the Commission proposes the repeal of §§9.951 - 9.965, relating to low pressure-high pressure piping; piping installation identification; specifications for approved low pressure piping or tubing materials; underground corrosion protection; piping layout; joining methods; drainage and drips; piping support; exterior piping; joint compound; bending pipe; cap outlets; pressure test of piping; specifications for approved high pressure piping materials; and joining of high pressure piping. The proposed repeal of these sections will remove all rules from existing subchapter L, relating to LP-gas piping and piping systems; therefore, the Commission proposes to redesignate subchapter L as being reserved for future use.

The Commission also proposes the repeal of §§9.1651, 9.1653 - 9.1666, and 9.1668 - 9.1695, relating to applicability of subchapter S; quality of design and installations of gas systems and equipment; LP-gas container working pressure; maximum container capacities; location and mounting of LP-gas containers; securing of LP-gas containers; shielding of LP-gas containers from heat of internal combustion engine exhaust system components; ventilation and labeling of compartments containing LP-gas cylinders; securing LP-gas container housings; LP-gas container appurtenances; valves for multiple LP-gas container assembly systems; automatic stop fill devices; protection of LP- gas container valves; LP-gas regulators; LP-gas excess flow valves; maximum vapor pressure; gas piping system materials; gas piping design; gas pipe sizing; joint materials; routing and protection of tubing and piping; location of supply connections; LP-gas supply connectors; high-pressure LP-gas connections; low- pressure LP-gas connections; appliance connections; gas shutoff valves; gas inlet cap; prohibiting use of gas piping as electrical ground; gas pipe hangers and supports; testing for gas leakage; gas appliances; venting requirements; installation of internal combustion engine generators; marking of appliances; location of appliances; clearances of heat-producing appliances; sizing and materials of supply ducts; sizing, materials, and openings of return air ducts; air duct joints and seams; air conditioning (other than automotive-type); required information; and required labels and identification plates. The proposed repeal of these sections in existing subchapter S, entitled installation or repair of LP-gas containers, piping or appliances in recreational vehicles, will remove all rules from that subchapter; therefore, the Commission proposes to redesignate subchapter S as being reserved for future use.

The Commission also proposes the repeal of §§9.456, 9.469, 9.470, and 9.927, relating to regulator relief valves; venting regulators; draining condensate; and Appendix G: flow of LP-gas through fixed orifices. These sections are proposed for repeal because the requirements are included in NFPA 54. Section 9.456 relates to design criteria, which is an activity of manufacturers, not of licensees. Section 9.469 corresponds to NFPA 54, §2.8.4(2) and (3), while §9.470 corresponds to NFPA 54, §1.6.2. The chart in §9.927 is found in NFPA 54, Appendix F.

The Commission simultaneously proposes, in newly designated subchapter D, new §9.251, relating to adoption by reference of NFPA 54 and NFPA 501C, and certain other NFPA publications; new §9.254 relating to clarification of certain terms used in NFPA 54 and 501C; new §9.257, relating to exclusion of NFPA 54, §6.31; new §9.260, relating to room heaters used in buildings; new §9.263, relating to identification of converted appliances; new §9.266, relating to identification of piping installation; new §9.269, relating to special exceptions for agricultural and industrial structures relating to appliance connectors and piping support; §9.272, relating to certification requirements for joining methods; and new §9.275, relating to high pressure gas piping or tubing.

In addition, the Commission proposes amendments to existing §§9.1, 9.2, and 9.174, relating to application of rules, severability, and retroactivity; definitions; and hose specifications. The amendments in §9.1 are proposed to correct and clarify the existing and new subchapter titles; in §9.2, the Commission proposes to delete the definition of corrugated stainless steel tubing (CSST) because it is included in the NFPA 54 definitions. The definitions of high pressure gas piping or tubing, and low pressure gas piping or tubing are proposed to be amended to conform to the requirements for these in NFPA 54. The proposed amendment to §9.174 deletes subsection (f) because the requirements are covered in NFPA 54.

The Commission proposes these actions to repeal outdated or incomplete rules and to replace them with the National Fire Protection Association's National Fuel Gas Code (commonly referred to as "NFPA 54"), a nationally-recognized standard adopted in whole or in part by most other states in the United States, and NFPA 501C, Standard for Recreational Vehicles , also a nationally-recognized standard. The Commission proposes to adopt NFPA 54 and 501C in new §9.251, with certain exceptions and clarifications described in proposed new rules §§9.254, 9.257, 9.260, 9.263, 9.266, 9.269, 9.272, and 9.275. The proposed simultaneous repeal of the existing sections in subchapters D, L, and S, and adoption of NFPA 54 and 501C will establish consistent requirements for Texas licensees with most other states in the United States. The adoption by reference will incorporate the 1996 editions of NFPA 54 and 501C.

The Commission also proposes to adopt by reference all other NFPA publications or portions of those publications referenced in NFPA 54 which apply to LP-gas activities only. In other words, if other LP-gas activities are to be performed by a licensee and those activities are included in an NFPA publication referenced in NFPA 54 or 501C, then the licensee shall perform those activities in compliance with the referenced document. For example, §6.2.6 of NFPA 54 refers to another NFPA publication, NFPA 37, Standard for the Installation and Use of Stationary Combustion Engines and Gas Turbines . Licensees who will be performing that type of work shall also be required to purchase that NFPA publication and perform the work to those standards.

The Commission proposes an effective date of June 1, 1997, for the implementation of the adoption by reference. This will allow sufficient time for submission and review of comments, preparation of the rules for final adoption, printing and distribution of new rulebooks, and training of Commission staff. As of the effective date, Commission examinations and review materials will include information from NFPA 54 and 501C.

The adoption by reference of NFPA 54 will affect only licensees with Category D, E, K, and N licenses, which is approximately 1,739 of the 2,328 total number of licensees (there are 1,009 Category D, general installers and repairmen, licensees; 724 Category E, wholesale/retail dealers, licensees; one Category K, distribution system, licensee; and five Category N, manufactured housing installer and repairmen, licensees). The activities authorized by these licenses include activities relating to LP-gas piping and piping systems, and appliances and appurtenant equipment, activities which are addressed in NFPA 54. The adoption by reference of NFPA 501C will affect approximately 90 Category M, recreational vehicle installers and repairmen, licensees. Other categories of licenses authorize other LP-gas activities not addressed in NFPA 54 or 501C; these licensees should not be affected by this proposal.

NFPA 54 was reviewed by the Commission's appointed NFPA 54 task force, which consists of members of the LP-gas industry from all areas of the state, and which met twice to review NFPA 54 and discuss whether any exceptions would be necessary for Texas. The specific sections of NFPA 54 which are proposed to be amended by Commission rule were identified and approved by the task force. The proposal has also been reviewed by the Commission's LP-gas advisory committee.

Current Commission rules proposed to be repealed specify requirements for appliances and low and high pressure piping, including identification, installation, maintenance and testing, and also requirements regarding recreational vehicles. While the current rules are adequate to ensure safety for the general public, NFPA 54 and 501C address these activities with greater specificity and detail. The proposed adoption by reference of NFPA 54 and 501C would provide more specific requirements for the LP-gas industry in Texas, and ultimately improve safety for the general public. Because NFPA 54 and 501C have been adopted in whole or in part by most other states in the United States, the Texas LP-gas industry would benefit from its adoption because Texas companies would be held to the same standards when doing business in other states; therefore, LP-gas companies wishing to expand their businesses between other states would have a better opportunity to do so.

There are some sections in NFPA 54 and 501C for which the Commission proposes to adopt alternative or additional language, or which the Commission chooses not to adopt. In particular, proposed new rule §9.254 defines the "authority having jurisdiction," a phrase used throughout NFPA publications, including both NFPA 54 and 501C, to be the Railroad Commission of Texas. This language is proposed to identify the Commission as the "authority having jurisdiction" because the Commission has statutory authority over LP-gas safety matters in Texas. The proposed section also further defines the NFPA 54 term "qualified agency" to include a licensee or a homeowner in certain situations, as provided for in §9.177 (relating to connecting container to unapproved piping) of the Commission's LP-gas safety rules.

Proposed new §9.257 indicates a section of NFPA 54 which the Commission declines to adopt. NFPA 54, §6.31 is not proposed for adoption because the Commission has its own adopted rules relating to CNG activities, at 16 TAC §13.1, et seq .

Proposed new §9.260 describes current Commission requirements (in §9.234, relating to room heaters in public buildings) which are not specifically addressed in NFPA 54 with regard to room heaters in public buildings. Proposed new §§9.263 and 9.266 clarify NFPA, §5.1.3, to make it consistent with other referenced Commission rules regarding identification tags or decals; this language will help prevent duplication of identification tags or decals used for several different purposes.

Proposed new §9.269 allows exceptions not found in NFPA 54 but previously adopted by the Commission (in §§9.239 and 9.958, relating to appliance connectors and piping support, respectively) for very specific uses of LP-gas in agricultural or industrial structures. Proposed new §9.272 describes certification requirements for individuals working with heat- fusion methods. These requirements are in the Commission's current rule §9.956 relating to joining methods, which is being renumbered to conform to the new numbering.

Proposed new §9.275 includes text currently in Commission rules §§9.951(b), 9.964 and 9.965, relating to low pressure- high pressure piping, specifications for approved high pressure piping materials, and joining of high pressure piping. These sections are proposed to be repealed in order to be renumbered; the text is being moved to new §9.275. These requirements are being retained because they address high pressure piping, which is not included in NFPA 54.

The adoption by reference of NFPA 54 will necessitate some Commission rulemaking in the future. Secretary of State rules, 1 TAC §§91.41 and 91.42, state that an adoption by reference must incorporate the document being adopted as it exists on the date of adoption. NFPA amends 54 approximately every four years, with the next republication to be in the year 2000, although NFPA occasionally adopts interim amendments. If NFPA changes 54 or adopts an interim amendment and the Commission wants to incorporate those changes into the requirements for Texas, then the Commission will have to re-adopt the new language or edition in order for the changes to be effective. Likewise, if NFPA changes any of the 14 other NFPA documents referenced in NFPA 54 between now and the year 2000, for instance, then the Commission will have to adopt the changes in those particular editions for them to become effective. If the Commission waits until the year 2000 to re-adopt NFPA 54, then the referenced documents that are changed between now and then will not become effective until the year 2000. For this reason, proposed new §9.251(b)(1)-(14) separately lists the 14 pamphlets referenced in NFPA 54 and the date of the edition being adopted. If the Commission wishes to adopt different editions of any of these referenced pamphlets, then only a minor rulemaking will be necessary, and the rule will always include a list of the NFPA standards currently effective in Texas.

The adoption by reference of NFPA 54 and 501C means that the Commission must provide for public viewing a complete set of NFPA 54, 501C, and all the referenced NFPA documents at both the Secretary of State's office and the Commission's Austin office. Providing copies for public viewing complies with the public information law in Texas; however, because the NFPA documents are copyrighted, copies may not be made. The Commission does not assume any responsibility or liability for the use of the NFPA documents, other than as specified in the proposed rules.

Proposed requirements in NFPA 501C are generally the same as existing Commission rules and should pose little burden to the Category M licensees who will be required to comply. However, some requirements in NFPA 54 may be considered controversial or be misunderstood by the LP-gas industry because they have not been required previously in Texas. For example, NFPA 54, §§1.5.2, 4.2.1, and 4.2.2, requires a leakage test or an inspection each time gas is introduced into a new piping system or into an existing system that has been shut off or turned off to ensure that no gas is escaping. NFPA 54 does not specify what test or inspection procedures should be used, nor does it further define "shut off" or "turned off," so the rule could be read to indicate that such a test is not necessary for a system which has run out of gas. NFPA's National Fuel Gas Code Handbook offers some commentary and interpretation of some NFPA 54 requirements. With regard to the test for leakage in NFPA 54, §4.2.2, the handbook says:

Over the years the pressure test required for new piping systems, including additions to existing systems, has been confused with the test for leakage. As specified, the pressure test is required only for new piping systems or new additions, not including equipment shutoff valves, equipment connections, or equipment.

The test for leakage is applicable whenever a gas piping system is placed in service either initially or after being shut off. The medium used for the test is the gas supplied at its supply pressure. The gas is applied to the piping, equipment, and equipment connections and valves.

National Fuel Gas Code Handbook , 1992 edition, p. 104 Some LP-gas licensees already perform a leakage test or an inspection voluntarily.

Thomas D. Petru, assistant director, LP-Gas Section, Gas Services Division, has determined that for each of the first five years the sections as proposed will be in effect there will be fiscal implications for state government. For the Commission, these will involve publication and distribution of new rulebooks, and retraining staff, including field inspectors. For this initial adoption only, NFPA will give about 2,000 copies of NFPA 54 to the Commission at no cost, as well as 30 sets of the 14 other NFPA documents referenced in NFPA 54. The 30 sets will be used to comply with the Secretary of State's rules regarding adoptions by reference, as well as to supply Commission staff with adequate copies to carry out regulatory and enforcement duties. A complete set of NFPA 54 and all 14 other referenced pamphlets currently costs approximately $300; as NFPA adopts new editions of 54 and the other pamphlets, the Commission will have to replace the old editions for its staff. There will also be an added cost of Commission staff time in order to review any upcoming changes to NFPA 54 and 501C, and the approximately 19 other referenced NFPA documents to determine if any changes adopted by NFPA need to be immediately adopted by reference to be effective in Texas. These costs cannot be calculated, but will be handled through the regular budget and duties assigned to the LP-Gas Section of the Commission with nominal charges to licensees and the general public for purchase of new Commission rulebooks. There may be similar fiscal implications for local governments which rely on Commission safety standards. These costs are not calculable but at a minimum will include purchase of new rulebooks and possibly retraining of inspection staff.

Mr. Petru also has determined that for each year of the first five years the sections as proposed will be in effect the public benefit anticipated as a result of enforcing the sections as proposed will be improvement in safety due to more specific requirements for the LP-gas industry with regard to piping, appliances, and recreational vehicles. The Texas LP-gas industry should also see some benefits when dealing with other states which have adopted NFPA 54 and 501C.

There will be some anticipated economic costs from the NFPA 54 adoption to small businesses and individuals who hold Category D, E, K, and N licenses, and who are required to comply with proposed new §§9.251 and 9.254. These will include cost for the Commission's rulebook and copies of NFPA 54 and other referenced pamphlets which will have to be purchased directly from NFPA or other entities, such as the Texas Propane Gas Association. Licensees required to comply with referenced NFPA publications, as required in §9.251(b), shall also be required to purchase the referenced NFPA publications. Other than the first 2,000 copies of NFPA 54 which NFPA will provide to the Commission, no NFPA publications will be provided or sold by the Commission. The cost for the NFPA documents will depend on whether the purchaser is a member or nonmember of NFPA; a membership costs $95 per year and the cost, for example, for NFPA 54 would be $24.75 for a member as compared to $27.50 for a non- member. However, LP-gas licensees probably will not join NFPA because reduced publication costs will not offset the annual membership fee. In addition, only current licensees will receive a copy of NFPA 54 at no charge; current licensees will be required to spend at least $8 for a new Commission rulebook up to about $540 for a complete set of NFPA 54 and the 14 referenced pamphlets. Applicants who complete licensing requirements after the effective date of this rulemaking will not receive a free copy of NFPA 54, and will have to spend the same $8 to $540 for the required publications. A more realistic cost to an individual or small business required to comply with the proposed rules is estimated to be about $85; this figure, as shown on the chart, includes the cost for a new Commission rulebook ($8), one copy of NFPA 54 ($27.50), one copy of NFPA 58 ($27.50), and one other NFPA pamphlet (averaging around $22). Given the 1,739 current Category D, E, K, and N licensees, the probable realistic economic impact would be around $147,815 to the industry. The following chart illustrates some of the anticipated costs of compliance relating to publications that must be purchased in order to comply with the adoption by reference of NFPA 54:

Figure 1: 16 TAC Chapter 9 Preamble

Other possible costs associated with NFPA 54 include the leak test required in §9.254(b), which may add some costs to licensees; the exact cost cannot be calculated but will include training the delivery drivers or other personnel to perform the required leak test. However, there will be no additional economic costs with regard to the requirements in new §§9.257, 9.260, 9.263, 9.266, 9.269, 9.272, and 9.275 because these requirements are already in existence in the current LP-gas rules and have been renumbered in order to correspond more clearly with the NFPA 54 adoption by reference.

With regard to the adoption by reference of NFPA 501C, there will be some anticipated economic costs to small business or individuals who hold Category M licenses and who are required to comply with proposed new §9.251. These will include a nominal charge for the Commission's new rulebook and the charge by NFPA for a copy of 501C, as shown in the following chart:

Figure 2: 16 TAC Chapter 9 Preamble

Compliance with 501C should not cause any added costs, other than purchase of publications, because the Commission's current rules contain very similar requirements to those found in 501C.

Based on a combination of the two charts, the annual economic cost of compliance to industry with the adoption by reference of NFPA 54 and 501C could range anywhere from $14,632 at a minimum to $2,743,500 at a maximum, but should realistically be around $152,855 total for the 1,829 potentially affected licensees. The cost of compliance per individual could range from $35.50 to $1,500, but should be about $84 per individual (based on the costs for a Commission rulebook, one copy each of 54 and 58, and one other NFPA pamphlet).

Comments on the proposal may be submitted to Kellie Martinec, Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments will be accepted for 60 days after publication in the Texas Register and should refer to LP-Gas Docket Number 1495. For additional information, contact Thomas D. Petru at (512) 463- 6949.

Subchapter A. General Applicability and Requirements