TITLE 16.ECONOMIC REGULATION

Part 1. RAILROAD COMMISSION OF TEXAS

Chapter 1. PRACTICE AND PROCEDURE

Subchapter I. PERMIT PROCESSING

16 TAC §1.201

The Railroad Commission of Texas proposes amendments to §1.201, relating to Time Periods for Processing Applications and Issuing Permits Administratively. The amendments to §1.201 are limited to conforming Table 1 in §1.201 with the substantive changes in §3.78 which the Commission is proposing in a separate rulemaking, Docket No. 20-0228899, as a result of changes made to the Texas Natural Resources Code by Senate Bill (SB) 310, 77th Legislature (2001). The proposed amendments to §3.78 were submitted for publication in the August 10, 2001, issue of the Texas Register for a 30-day comment period.

Section 3 of SB 310 amended Texas Natural Resources Code, §81.0521, to authorize the Commission to collect a fee of $150 with each exception to any Commission rule. Section 17 of SB 310 amended Texas Natural Resources Code, §91.1013, to authorize the Commission to collect a fee of $200 with each application for a fluid injection well permit and a fee of $300 for each application to discharge to surface water. The Commission is proposing to amend Table 1 in §1.201 only to identify the new amount of the filing fee required for the specific applications subject to the provisions of §1.201. The Commission is not proposing any other changes to §1.201.

In Table 1 of §1.201, application fees for permits under Commission rule §3.8 to discharge hydrostatic test water; produced water to inland waters; produced water to the Gulf of Mexico from a non-land based facility; and gas plant effluent will increase from the current $200 to $300. The application fee for an exception under §3.9 for a disposal well permit (Form W- 14) will increase from the current $50 to $150. The application fee for a density exception under §3.38 will increase from the current $50 to $150, unless the need for an exception is identified through a Commission review of an application for a drilling permit, in which event the fee for the exception will be $200. Application fees for injection permits under §3.46 (Forms H-1, H-1A, H-7, and H-1S) will change from the current $100 to $200; fees for exceptions will increase from the current $50 to $150.

Mary Ross McDonald, Deputy General Counsel, Office of General Counsel, has determined that for each year of the first five years that the conforming amendments to §1.201 will be in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amended rule. The proposed changes to §1.201 are being made for administrative convenience and to ensure consistency between Commission rules concerning application fees which are imposed under §3.78.

Ms. McDonald has also estimated that there will be no increased cost of compliance with the proposed amendments for the individual, small business or micro-business producer because of the proposed amendments. The imposition of the increase in Commission filing fees is being made in §3.78 as a result of the statutory changes made by SB 310.

Ms. McDonald has determined that for each year of the first five years that the amended section will be in effect, the primary public benefit will be the consistency of Commission rules with respect to application fees.

Comments on the proposed amendments may be submitted to Mary Ross McDonald, Deputy General Counsel, Office of General Counsel, Railroad Commission of Texas, P. O. Box 12967, Austin, Texas 78711-2967 or via electronic mail to polly.mcdonald@rrc.state.tx.us. Comments will be accepted for 30 days after publication in the Texas Register . For further information, call Ms. McDonald at 512-463-7008.

The Commission proposes the amendments to §1.201 pursuant to Subsection (b) of Texas Government Code, §2001.006 ( as added by Acts 1999, 76th leg., ch. 558, §1 ); Texas Government Code, §§2005.001-2005.007, which requires the Commission to adopt procedural rules for processing permit applications and issuing permits and to establish by rule a complaint procedure allowing permit applicants to complaint directly to the chief administrator of the agency; Texas Government Code, §2001.004, which requires agencies to adopt rules of practice stating the nature and requirements of all available formal and informal procedures; Texas Natural Resources Code, §§81.051 and 81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission; and Texas Natural Resources Code, §§81.0521 and 91.1013, as amended by the provisions of Senate Bill 310, 77th Legislature (2001).

Texas Government Code, §§2001.004 and 2005.001-2005.007, and Texas Natural Resources Code, §§81.051, 81.052, 81.0521, 91.1013, as amended by provisions of Senate Bill 310, 77th Legislature (2001), are affected by the proposed amendments.

Issued in Austin, Texas on August 7, 2001.

§1.201.Time Periods for Processing Applications and Issuing Permits Administratively.

(a) Applicability. This rule applies to the permits listed in Column A of Table 1 of this section. For purposes of this rule, the term "permit" includes any authorization issued administratively by the Commission, through the Oil and Gas Division, the Gas Services Division, the Surface Mining and Reclamation Division, or the Rail Division, and required by the Commission either to engage in or conduct a specific activity or to deviate from requirements, standards, or conditions in statutes or Commission rules and for which the median processing time exceeds seven days.

Figure: 16 TAC §1.201(a)

(b) - (e) (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 August 7, 2001.

TRD-200104500

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 23, 2001

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


Chapter 13. REGULATIONS FOR COMPRESSED NATURAL GAS (CNG) AND LIQUEFIED NATURAL GAS (LNG)

The Railroad Commission of Texas proposes amendments to §§13.1-13.4, 13.22, 13.24, 13.25, 13.35, 13.36, 13.61, 13.69, 13.70, 13.71, 13.73, and 13.141 relating to Scope; Retroactivity; Definitions; CNG Forms; Odorization; Filings Required for School Bus, Mass Transit, and Special Transit Installations; Filings Required for Stationary CNG Installations; Application for an Exception to a Safety Rule; Report of CNG Incident/Accident; Licenses, Related Fees, and Licensing Requirements; Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority; Examination Requirements and Renewals; Denial, Suspension, or Revocation of Licenses or Certifications and Hearings; Other Fees for Employee Transfer and Decal Replacement; and System Testing.

The main purpose of the rulemaking is to update the rules based on changes to the Commission's authorizing statutes made by Senate Bill (SB) 310, 77th Legislature (2001). The statutory changes require corresponding amendments to §13.61, relating to license and license renewal requirements. Proposed amendments in §13.61(i)(1)-(3) reflect changes to the statute and require the Commission to notify a licensee of the impending license expiration at least 30 days before the date the person's license is scheduled to expire; require a renewal fee of 1 1/2 or two times the renewal fee required in §13.61(b)(1)-(6) if a person's license has been expired for 90 calendar days or fewer, or more than 90 days, respectively; and change the time limit for license expiration, suspension, or revocation from two years to one year. The amendment in §13.61(b)(3) requires a person whose license has been expired for more than one year, changed from two years, to comply with all requirements for issuance of a new license. New §13.61(i)(4) exempts from reexamination for licensing a person who was previously licensed in this state but who currently lives in another state and is currently licensed and has been in practice in the other state for the two years preceding the date of application, and requires the person to pay a fee to the Commission that is equal to two times the renewal fee required in §13.61(b).

The Commission proposes substantive amendments to some sections for reasons other than legislative action. In particular, amendments to §13.3, relating to definitions, include a new definition for "container," which is based on industry standards; the deletion of definitions for "final approval" and "tentative approval" and a new definition for "interim approval order" to clarify that the Commission does not engage in professional engineering, discussed in more detail in the next paragraph.

In §§13.3, 13.24, and 13.25, proposed amendments change language that might be understood as referring to professional engineering activities. These changes will also make the CNG rules as consistent as possible with the Commission's LP-gas rules (16 TAC Chapter 9), particularly with regard to Commission procedures, deadlines, and fees. The definitions for "final approval" and "tentative approval" in §13.3 and the Commission review of plans and specifications for stationary installations and CNG vehicles in §§13.24 and 13.25 are proposed to be deleted. A new definition for "interim approval order" is proposed to be added to §13.3 to address a new procedure specified in §13.25(d). Also, new §13.24(d) allows the Commission to assess an inspection fee in certain instances to cover its costs for additional inspections.

Also, the Commission does not adopt any language referring to the practice of engineering (such as "sound engineering practices" or "good engineering practices," for example) and has clarified existing language that prohibits the practice of engineering. In order to achieve this goal, wording such as "plans and specifications" has been deleted to avoid any possible confusion. Likewise, in §13.24, regarding school buses and other similar vehicles, the Commission has deleted the submission of plans and specifications, but has added a requirement for these types of vehicles to be inspected by Commission personnel prior to being placed into CNG service in order to ensure compliance with the Regulations for Compressed Natural Gas.

In §13.25, most amendments are proposed to make this rule consistent with the similar LP-gas rule. Section 13.25(b) includes new language regarding the submission of forms and other information (such as a plat drawing and site plan) at least 30 days prior to construction of installations with aggregate storage capacity in excess of 240 standard cubic feet water volume. In subsection (h)(3), a one-year expiration date is added, as found in the corresponding LP-gas rule; this will enable the Commission to keep its records current and to close files for which no activity is occurring. New subsection (k) adds the inspection fee for certain instances, as proposed in §13.24 for school bus and other vehicle-type installations. All other amendments to §13.25 are nonsubstantive and are made for clarification and for consistency with the corresponding LP- gas rules.

In addition to the proposed amendments previously discussed for §13.61, existing language in subsections (b) and (j) is proposed to be deleted because staggered licensing has been in place for several years and the explanation for it is no longer needed.

Section 13.69 relates to registration of CNG transports and requires CNG transports to be registered with the Commission and specifies the fees required to be paid and forms to be filed with the Commission for these activities. Proposed new subsection (c) clarifies that either a decal or a letter of authority issued by the Commission shall serve to verify that a particular CNG transport has been properly registered. Proposed new subsection (c)(3) allows small amounts of CNG to be introduced into a container in certain instances.

Proposed amendments to §§13.1, 13.2, 13.4, 13.22, 13.35, 13.36, 13.70, 13.71, 13.73, and 13.141 are mostly nonsubstantive and will conform the rules to current Texas Register formatting requirements, update citations or references or other terms, specify in the rules certain procedures in place at the Commission, or include other changes in wording, punctuation, or organization to clarify the rules. Examples of nonsubstantive amendments include changing "LP-Gas Division" to "LP-Gas Section" or "Gas Services Division," as appropriate, and correcting statutory references. While there are many amendments to §13.35, most do not change current Commission procedure and are proposed to make this rule, which deals with an administrative procedure, as clear as possible and consistent with the corresponding LP-gas rule.

The proposed amendments to §13.70 are mostly nonsubstantive and are made for clarification. New subsection (a)(4) allows applicants to take CNG examinations at the Commission's district offices in certain cases, a practice allowed in the LP-gas rules. One important change in subsection (b)(5) changes the maximum time period for an expired general installers and repairman exemption from two years to one year; the Commission proposes this amendment to be consistent with the changes in §13.61 necessitated by SB 310.

The proposed amendment to §13.73 deletes subsection (b), which is covered in new language added to §13.69(c)(5), and amends the title of §13.73 accordingly.

In a separate rulemaking, the Commission may consider moving the existing liquefied natural gas (LNG) rules from Subchapters G through N in Chapter 13 to a new Chapter 14, to be titled Regulations for Liquefied Natural Gas (LNG). The title of existing Chapter 13 would then be changed to refer only to CNG.

Also in a concurrent proposal, the Commission proposes the rule review for Chapter 13, Subchapters A through F, required under Tex. Gov't Code, Chapter 2001, §2001.039 ( as added by Acts 1999, 76th Leg., ch. 1499, §1.11(a) ). The separate rule review documents will be filed with the Texas Register concurrently with this rulemaking.

Byron Caffey, Assistant Director, LP-Gas Section, Gas Services Division, has determined that for each year of the first five years the proposed amendments will be in effect, there will be fiscal implications for state government as a result of enforcing or administering the sections. For state government, these will involve the Commission publishing and distributing new rulebooks, revising rules examinations, reprogramming various computer- generated reports and data bases, and retraining staff, including field inspectors. These costs cannot be calculated, but will be handled through the regular budget and duties of the LP-Gas Section with nominal charges to licensees and the general public for purchase of new Commission rulebooks (which currently cost $10).

There may be similar fiscal implications for local governments which rely on Commission safety standards; these costs are neither predictable nor calculable, but at a minimum will include purchase of new rulebooks and possibly retraining inspection staff.

Mr. Caffey has also determined that for each year of the first five years the amendments are proposed to be in effect, the public benefit will be improvement in safety and clarification of the Commission's requirements for CNG activities.

There is no anticipated economic cost to small businesses, micro-businesses, and individuals required to comply with the amendments, unless those entities wish to purchase a new CNG rulebook from the Commission; such costs will be nominal.

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 or via email to kellie.martinec@rrc.state.tx.us. Comments will be accepted for 30 days after publication in the Texas Register and should refer to LP-Gas Docket No. 1451. For more information, call Mr. Caffey at (512) 463-6931.

Subchapter A. SCOPE AND DEFINITIONS

16 TAC §§13.1 - 13.4

The amendments are proposed under Texas Government Code, §2001.006 ( as added by Acts 1999, 76th Leg., Ch. 558, §1 ); under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; and under Sections 54- 60, Senate Bill 310, 77th Legislature (2001).

Texas Natural Resources Code, Chapter 116, as amended by Sections 54-60, Senate Bill 310, 77th Legislature (2001) is affected by the proposed amendments.

Issued in Austin, Texas on August 7, 2001.

§13.1.Scope.

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

[ (b) This chapter also applies to all CNG mobile fuel systems.]

[ (c) This chapter does not extend to the design and installation of any CNG system in ships, barges, sailboats, or other types of watercraft. Such installation is subject to the American Board and Yacht Council (ABYC) and any other applicable standards.]

(b) [ (d) ] This chapter does not apply to:

(1) the production, transportation, storage, sale, or distribution of natural gas that is subject to the jurisdiction of the Railroad Commission of Texas under the Gas Utility Regulatory Act (Texas Civil Statutes, Article 1446e) or the Cox law (Title 102, Revised Statutes); [ or ]

(2) pipelines, fixtures, equipment, or facilities to the extent that they are subject to the safety regulations promulgated and enforced by the Railroad Commission of Texas pursuant to Natural Resources Code, Chapter 117, or Texas Civil Statutes, Article 6053-1 ; or [ . ]

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

§13.2.Retroactivity.

Unless otherwise stated, the regulations for the compressed natural gas of the LP-Gas Section, Gas Services Division are not retroactive. Any installation of a CNG system shall [ must ] meet the requirements of the rules and regulations of this chapter [ the division ] at the time of installation.

§13.3.Definitions.

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

(1) ANSI--American National Standards Institute.

(2) Approved--Authorized by the Division or the Commission [ commission or the Railroad Commission of Texas ].

(3) ASME--American Society of Mechanical Engineers.

(4) ASME Code--ASME Boiler and Pressure Vessel Code.

(5) ASTM--American Standard Testing Material.

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

(7) Auxiliary engine--An engine which is mounted on a vehicle but used for purposes other than propelling the vehicle.

(8) Building--A structure with walls and a roof resulting in the structure being totally enclosed.

(9) Cascade storage system--Storage in multiple cylinders.

(10) CNG--See "Compressed natural gas" in this section.

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

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

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

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

(15) [ (14) ] Commission-- The Railroad Commission of Texas or an operating division of the Commission or a division's employees [ An operating division of the Railroad Commission of Texas or any of the division's employees ].

(16) [ (15) ] Compressed natural gas--Natural gas which is a mixture of hydrocarbon gases and vapors consisting principally of methane (CH 4 ) in gaseous form that is compressed and used, stored, sold, transported, or distributed for use by or through a CNG system.

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

(17) Container--A pressure vessel cylinder or cylinders permanently manifolded together used to store CNG.

(18) [ (17) ] Cylinder service valve--A hand-wheel operated valve connected directly to a CNG cylinder.

(19) [ (18) ] Dispensing station--A CNG installation that dispenses CNG from any source by any means into fuel supply cylinders installed on vehicles or into portable cylinders.

(20) [ (19) ] Division--The Director of the Gas Services [ Liquefied Petroleum Gas ] Division of the Railroad Commission of Texas or the director's delegate .

(21) [ (20) ] DOT--United States Department of Transportation.

(22) [ (21) ] Filled by pressure--A method of transferring CNG into cylinders by using pressure differential.

[ (22) Final approval--The authority issued by the commission or the Railroad Commission allowing the installation to be placed into CNG service.]

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

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

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

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

(27) [ (26) ] Manifold--The assembly of piping and fittings used to connect cylinders.

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

(29) [ (28) ] Metallic hose--Hose in which the strength of the hose depends primarily on the strength of metallic parts, including liners or covers.

(30) [ (29) ] Mobile fuel container--A CNG container mounted on a vehicle to store CNG as the fuel supply for uses other than motor fuel.

(31) [ (30) ] Mobile fuel system--A CNG system which supplies natural gas fuel to an auxiliary engine other than the engine used to propel the vehicle or for other uses on the vehicle.

(32) [ (31) ] Motor fuel container--A CNG container mounted on a vehicle to store CNG as the fuel supply to an engine used to propel the vehicle.

(33) [ (32) ] Motor fuel system--A CNG system excluding the container which supplies CNG to an engine used to propel the vehicle.

(34) [ (33) ] Motor vehicle--A self-propelled vehicle licensed for highway use or used on a public highway.

(35) [ (34) ] Outlet--A site operated by a CNG licensee at which the business conducted materially duplicates the operations for which the licensee is initially granted a license.

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

(37) [ (36) ] Point of transfer--The point where the fueling connection is made.

(38) [ (37) ] Pressure relief valve--A device designed to prevent rupture of a normally charged cylinder.

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

(40) [ (39) ] Pullaway--The accidental separation of a hose from a cylinder, container, transfer equipment, or dispensing equipment, which could occur on a cylinder, container, transfer equipment, or dispensing equipment whether or not they are protected by a pullaway device.

(41) [ (40) ] Railroad Commission of Texas--The members of the Railroad Commission of Texas.

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

(43) [ (42) ] Residential fueling facility--An assembly and its associated equipment and piping at a residence used for the compression and delivery of natural gas into vehicles.

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

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

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

(47) [ (46) ] 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.

[ (47) Tentative approval--The authority issued by the commission without a hearing allowing construction of a CNG installation.]

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

(49) Ultimate consumer--The person controlling CNG immediately prior to its ignition.

§13.4.CNG Forms.

Under the provisions of the Texas Natural Resources Code, Chapter 116, the Railroad Commission of Texas has adopted [ by reference ] the following forms for use by the LP-Gas Section, Gas Services Division [ Liquefied Petroleum Gas Division (LP-Gas). These forms are available upon request directed to the LP-Gas Division in Austin ]:

(1) - (30) (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 August 7, 2001.

TRD-200104503

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 23, 2001

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


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

16 TAC §§13.22, 13.24, 13.25, 13.35, 13.36

The amendments are proposed under Texas Government Code, §2001.006 ( as added by Acts 1999, 76th Leg., Ch. 558, §1 ); under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; and under Sections 54- 60, Senate Bill 310, 77th Legislature (2001).

Texas Natural Resources Code, Chapter 116, as amended by Sections 54-60, Senate Bill 310, 77th Legislature (2001) is affected by the proposed amendments.

Issued in Austin, Texas on August 7, 2001.

§13.22.Odorization.

(a) (No change.)

(b) Compressed natural gas shall be odorized according to the provisions of Texas Utilities Code, §§121.251 and 121.252, [ Texas Civil Statutes, Article 6053, §2, ] in effect at the time the gas is odorized.

§13.24.Filings Required for School Bus, Mass Transit, and Special Transit Installations.

(a) After the manufacture of or [ Prior to ] the conversion to a CNG system on [ of ] any vehicle to be used as a school bus, mass transit, public transportation, or special transit vehicle, the manufacturer, licensee, or ultimate consumer [ an applicant (the ultimate consumer or licensee, as the case may be) ] making the installation or conversion shall notify the Commission in writing on [ submit a ] CNG Form 1503 that the applicable CNG-powered vehicles are ready for a complete inspection to determine compliance with the Regulations for Compressed Natural Gas [ to the commission ].

[ (1) An original school bus, mass transit, or special transit vehicle manufacturer shall submit a CNG Form 1503 covering the model(s) of vehicle(s) to be equipped with a CNG system prior to the vehicle(s) being used in CNG service in this state.]

[ (2) The commission shall examine all drawings, plans, reports, and specifications for mobile installations required by statute or commission regulation to be submitted for tentative approval to determine whether the design, manufacture, construction, or use of the depicted item, system, operations, procedure, or installation complies with the regulations for compressed natural gas. A determination will also be made whether the subject of the submission poses a threat to the health, safety, and welfare of the general public. If the commission declines administratively to approve the submission, the applicant shall be notified in writing within the required time period of the deficiencies. The applicant may modify the submission and resubmit it for tentative approval within the required time period, or may request a hearing on the matter in accordance with the general rules of practice and procedure of the Railroad Commission of Texas. The subject of the submission shall not be operated or used in CNG service in this state until approved by the Railroad Commission of Texas following a hearing.]

(b) If the Commission's initial complete inspection finds the vehicle in compliance with the Regulations for Compressed Natural Gas and the statutes, the vehicle may be placed into CNG service. For fleet installations of identical design, an initial inspection shall be conducted prior to the operation of the first vehicle, and subsequent vehicles of the same design may be placed into service without prior inspections. Inspections shall be conducted within a reasonable time frame to ensure the vehicles are operating in compliance with the Regulations for Compressed Natural Gas . If violations exist at the time of the initial complete inspection, the vehicle shall not be placed into CNG service and the manufacturer, licensee, or ultimate consumer making the installation or conversion shall correct the violations. The manufacturer, licensee, or ultimate consumer shall file with the Commission documentation demonstrating compliance with the Regulations for Compressed Natural Gas , or the Commission shall conduct another complete inspection before the vehicle may be placed into CNG service. [ The application process. After completion of the review within the time described in paragraph (7) of this subsection, the commission will return the application to the applicant, indicating either the submission complies with the CNG rules or specifying what corrections are required. ]

[ (1) Rejected applications. An applicant may make the corrections required by a rejected application and may resubmit the application for review by the division in accordance with the process described in this section. When an applicant is notified of a rejected CNG Form 1503, Application to Install a CNG System on School Bus/Mass Transit Vehicles, the applicant has 120 calendar days from the date of the notification letter to resubmit the application with the discrepancies corrected or the original application will expire.]

[ (2) Accepted applications. Subject to the provisions of paragraph (3) of this subsection, the application will be returned to the applicant and the applicant will be notified whether the application complies with the CNG rules and whether the CNG converted vehicle(s) may be placed immediately into CNG service upon completion of the CNG system.]

[ (3) Inspections. At any time, the commission or division director may require an inspection of any CNG converted vehicle system, including any time prior to the CNG system being placed into service. No CNG system shall be placed into CNG service that does not comply with the rules promulgated by the Railroad Commission of Texas in effect at the time of installation.]

[ (4) Notice of completion. The applicant shall notify the division in writing that a school bus or mass transit installation is completed and ready for inspection.]

[ (5) Material variances. If the commission determines the completed installation or conversion varies materially from the application originally accepted as in compliance, correction of the variance and notification to the commission or resubmission of the application is required. The commission's review of such resubmitted application will follow the described procedure(s) in this section.]

[ (6) Subsequent applications. Any subsequent conversion to a CNG system by the same applicant will not require resubmission of a CNG Form 1503, provided the conversions are made in accordance with the application originally accepted as in compliance. However, a CNG Form 1504 must be filed with and approved by the commission prior to the completion of any subsequent school bus, mass transit, or special transit vehicle conversion. The applicant shall notify the commission in writing when any such subsequent conversion is completed and ready for inspection. Subsequent conversions that differ and vary materially from the initial application as originally accepted as in compliance will require another submission of CNG Form 1503. Original school bus, mass transit, or special transit vehicle manufacturers shall submit a CNG Form 1504 prior to the vehicles being used in this state.]

[ (7) Time for review of applications. The commission will review all applications within 21 calendar days of receipt of the application. Written notification of whether the application is complete or incomplete shall be mailed to the applicant within the 21 calendar day period. An application is not complete (i.e., in compliance) until the applicant has received written notification.]

(c) The manufacturer, licensee, or ultimate consumer making the installation or conversion shall be responsible for compliance with the Regulations for Compressed Natural Gas , statutes, and any other local, state, or federal requirements.

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

§13.25.Filings Required for Stationary CNG Installations.

(a) No CNG container shall be placed into CNG service or an installation operated or used in CNG service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable Regulations for Compressed Natural Gas and statutes, in addition to any applicable requirements of the municipality or the county where an installation is or will be located.

(b) [ (a) ] Aggregate storage capacity in excess of 240 standard cubic feet water volume. For installations with an aggregate storage capacity in excess of 240 cubic feet water volume, the licensee shall submit the following to the Commission at least 30 days prior to construction:

(1) CNG Form 1500;

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

(3) a plat drawing from the appropriate appraisal district identifying the facility's property boundaries;

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

(A) the location, types, and sizes of all containers already on site or proposed to be on site;

(B) the distances from the containers and material handling equipment to the property lines, buildings, and railroad, pipeline, or roadway rights-of-way; and

(C) any known potential hazards.

(5)

a nonrefundable fee of $50 for the initial application. A nonrefundable fee of $30 shall be required for any resubmission.

[ (1) Prior to the installation of any CNG container which would result in an aggregate storage capacity in excess of 240 cubic feet water volume, plans and specifications for the installation must be submitted to the commission with CNG Form 1500. See subsection (f) of this section relating to additional requirements for installations with an aggregate storage capacity in excess of 240 standard cubic feet water volume.]

[ (2) Plans and specifications required by paragraph (1) of this subsection submitted with an application for a Category 3 or 5 license or for a multiple category license that includes a Category 3 or 5 license will not be granted tentative approval by the commission until all other licensing requirements are met.]

[ (3) A CNG Form 1500 is not required when a previously approved system is repaired, renovated, extended, or modified, provided the subsequent change does not increase the CNG aggregate storage capacity at the site.]

[ (4) A nonrefundable fee of $50 shall be submitted with each CNG Form 1500. A nonrefundable fee of $30 shall be submitted for each resubmitted CNG Form 1500.]

(c) [ (b) ] The Commission [ commission ] shall notify the applicant in writing outlining its findings. [ examine all drawings, plans, reports, and specifications for stationary installations required by statute or commission regulation to be submitted for tentative approval to determine whether the design, manufacture, construction, or use of the depicted item, systems, operations, procedure, or installation complies with the regulations for compressed natural gas. A determination will also be made whether the subject submission poses a threat to the health, safety, and welfare of the general public. ] If the application is administratively denied, [ commission declines administratively to approve the submission, ] the applicant [ shall be notified in writing within the required time period of the deficiencies. The applicant ] may modify the submission and resubmit it [ for approval within the required time period, ] or may request a hearing [ on the matter ] in accordance with the general rules of practice and procedure of the Railroad Commission of Texas in 16 TAC Chapter 1 . [ The subject of the submission may not be operated or used in CNG service in this state until approved by the Railroad Commission of Texas following a hearing. ]

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

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

(2) a physical inspection of the installation indicates that it is not installed in compliance with the submitted plat drawing for the installation, the Regulations for Compressed Natural Gas , or the statutes of the State of Texas; or

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

(e) [ (c) ] If a CNG stationary installation , equipment, or appurtenances [ which is ] not specifically covered by the Regulations for Compressed Natural Gas [ regulations for compressed natural gas ] has been or will [ is to ] be installed, the Commission [ commission ] shall apply and require any reasonable [ sound engineering and ] safety provisions [ which may be considered necessary ] to ensure the CNG installation is safe for CNG service. If the affected entity [ party ] disagrees with the Commission's [ commission's ] determination, the entity [ he or she ] may request a hearing. The [ However, the ] installation shall not be placed in CNG operation until the Commission [ commission ] has determined the installation is safe for CNG service.

(f) [ (d) ] Aggregate storage capacity of less than 240 standard cubic feet water volume.

(1) Within 10 calendar days following the [ A CNG Form 1501 must be postmarked or physically delivered to the commission within 10 calendar days after ] completion of container [ the ] installation , the licensee shall submit CNG Form 1501 to the Commission stating: [ of any CNG container(s) having an aggregate storage capacity of less than 240 standard cubic feet at a commercial installation. No CNG shall be introduced in any CNG container that is not installed in accordance with the statutes of the State of Texas, or with the regulations for compressed natural gas in effect at the time of installation. The submission of the CNG Form 1501 will indicate that: ]

(A) the installation fully complies [ is in total compliance ] with the statutes and the Regulations for Compressed Natural Gas [ regulations for compressed natural gas ];

(B) all [ that any ] necessary CNG licenses and certificates have been issued; and

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

[ (2) If a CNG licensee violates the provisions of this subsection, the commission may require the CNG licensee to submit a CNG Form 1500, and plans and specifications for future CNG installations. The affected CNG licensee shall be notified in writing of this finding. If the CNG licensee disagrees with the determination of the commission, then that licensee may request a public hearing on the matter. Until a decision is issued by the Railroad Commission of Texas subsequent to a hearing on the matter the CNG licensee shall be required to submit plans and specifications as noted in this paragraph.]

(2) [ (3) ] Pay a [ A ] nonrefundable fee of $10 [ $10.00 ] for each ASME container or DOT cylinder cascade listed on the form [ shall be submitted with each originally filed CNG Form 1501 ]. A nonrefundable fee of $20 shall be required for any resubmission [ submitted with each resubmitted CNG Form 1501 ].

(g) [ (e) ] Notice of complete or incomplete form. The Commission shall [ commission will ] review all applications within 21 business [ calendar ] days of [ their ] receipt of all required information and shall notify the applicant in writing of any deficiencies . [ Written notification of whether the application is complete or incomplete shall be mailed to the applicant within the 21 calendar day period. ]

[ (f) Tentative approval for stationary CNG installations.]

[ (1) Granting of tentative approval for CNG installations of aggregate storage capacity in excess of 240 standard cubic feet water volume. Tentative approval may be granted by the commission if it is determined that the application meets all applicable CNG safety regulations and statutes of the State of Texas, and that the installation does not appear to constitute a danger to the public health, safety, and welfare. The construction of the installation and the setting of the container(s) may not proceed until the applicant has received written notification of the tentative approval.]

[ (2) Alterations or additions. The commission must be notified prior to implementation of any field alterations or additions during construction (except maintenance and repairs) related to the CNG installation in order for the commission to determine if resubmission of plans and specifications for reconsideration is required.]

(h) [ (g) ] Expiration of application; extension.

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

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

(3) If the subject installation is not completed within one year from the date of the Commission's completed review, the applicant shall resubmit the application for the Commission's review.

[ (3) If the tentatively approved installation is not completed within one year from the date tentative approval was granted the application will expire. Prior to the date of expiration, the applicant may request of the commission in writing an extension of time up to 90 days to complete the installation. If the applicant fails to request an extension of time within the time period prescribed by this subsection, the applicant will be required to submit a new application if the original installation is to be installed.]

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

(1) Aggregate storage capacity in excess of 240 standard cubic feet water volume. The applicant shall notify the Commission [ commission ] when the installation is ready for inspection. If the Commission [ commission ] does not physically inspect the facility within 30 calendar days of receipt of [ written ] notice that the facility is ready for inspection, the applicant [ facility ] may operate the facility conditionally until the initial complete [ first ] inspection is made. If any safety rule violations exist [ regulation violation(s) exists ] at the time of the initial [ first ] inspection, the applicant may be required to [ installation shall ] cease CNG operation until the applicant corrects the violations [ violation(s) are corrected ].

(2) Aggregate storage capacity of less than 240 standard cubic feet water volume. After receipt of [ a ] CNG Form 1501, the Commission shall conduct an inspection [ will be conducted ] as soon as possible to verify the installation described complies [ is in compliance ] with the Regulations for Compressed Natural Gas [ regulations for compressed natural gas ]. The applicant may operate the facility prior to inspection if the facility fully complies with the Regulations for Compressed Natural Gas . If any CNG statute or safety rule violations exist [ regulation violation exists ] at the time of the initial inspection at a commercial installation, the Commission may immediately remove the subject container, including any piping, appliances, appurtenances, or equipment connected to it [ may be immediately removed ] from CNG service until the applicant corrects the violations [ violation(s) are corrected ].

(j) [ (i) ] Material variances. If the Commission [ commission ] determines the completed installation varies materially from the application originally accepted [ as in compliance ], the applicant shall correct the variance and notify the Commission of the correction of the variance [ and notification to the commission, ] or resubmit [ resubmission of ] the application [ is required ]. The Commission's [ commission's ] review of such resubmitted application shall comply with [ will follow ] the procedure described in this section [ subsection ].

(k) In the event an applicant has requested an inspection and the Commission inspection identifies violations requiring modifications by the applicant, the Commission may assess an inspection fee to cover the costs associated with any additional inspection, including mileage and per diem rates set by the legislature.

[ (j) Final approval of stationary CNG installations. No CNG container may be placed into CNG service until after final approval has been granted. Final approval will follow a physical inspection of the completed installation. If, following the physical inspection of the installation by the commission, it is found that the installation:]

[ (1) complies with:]

[ (A) the plans and specifications given tentative approval by the commission; or]

[ (B) the regulations for compressed natural gas; and]

[ (C) the statutes of the State of Texas; and]

[ (2) does not constitute a danger to the public health, safety, and welfare, then the commission shall issue an order granting final approval.]

(l) [ (k) ] Appurtenances and equipment.

(1) All appurtenances and equipment placed into CNG service shall be listed by a nationally recognized testing laboratory such as [ , i.e., ] Underwriters Laboratory (UL), Factory Mutual (FM), American Gas Association (AGA), or Canadian Gas Association (CGA), or such other laboratories approved by the Commission [ commission ] unless:

(A) it is specifically prohibited for use by another section of the Regulations for Compressed Natural Gas [ regulations for compressed natural gas ]; or

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

(2) Appurtenances and equipment that cannot be listed but are not prohibited for use by the Regulations for Compressed Natural Gas [ regulations for compressed natural gas ] shall be acceptable [ and safe ] for CNG service provided the appurtenances and equipment are installed in compliance with the applicable Regulations for Compressed Natural Gas [ over the full range of pressures and temperatures to which they will be subjected under normal operating conditions ].

(3) The licensee or operator of the appurtenances or equipment shall maintain documentation [ Documentation ] sufficient to substantiate any claims made regarding the safety of any valves, fittings, and equipment and shall , upon request, furnish copies to the Commission [ be required by the commission ].

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

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

(a) A person [ Filing. Any person, firm, or corporation ] may apply for an exception to the provisions of this chapter by filing CNG Form 1025 along with supporting documentation and [ an application for exception along with ] a $50 filing fee with the Commission [ commission ].

[ (b) Form. The application must be typewritten on paper not to exceed 8-1/2 inches by 11 inches and have an inside margin of at least one inch. Annexed exhibits must be folded to the same size as the application. The content must be double-spaced and appear on one side of the paper only. In lieu of the typewritten application, a CNG Form 1025 may be submitted.]

(b) [ (c) Content. ] The application shall contain the following:

(1) the section number of any applicable rules [ a reference, by section number, to the applicable CNG rule ];

(2) [ a statement of ] the type of relief desired , including the exception requested and any information which may assist the Commission [ ; i.e., the exception applied for and those details which may be helpful ] in comprehending the requested [ exact nature of the ] exception;

(3) a concise statement of facts which supports the applicant's request [ case ] for the exception , such as the reason for the exception, [ ; i.e., the need for the exception and the reason for it, ] the safety aspects of the exception, and the social and/or economic impact of the exception;

(4) for all stationary installations, regardless of size, a description of the acreage and/or address upon which the subject of the exception[ , if granted, ] will be located [ should its location be stationary ]. The description shall be in writing and [ , ] shall include : [ a plat drawing, and shall sufficiently identify the site to permit determination of property boundaries. Furthermore, the description shall state the ownership of the land, and state under what legal authority the applicant, if not the owner, is permitted occupancy; ]

(A) a site drawing;

(B) sufficient identification of the site so that determination of property boundaries may be made;

(C) a plat from the applicable appraisal district indicating the ownership of the land; and

(D) the legal authority under which the applicant, if not the owner, is permitted occupancy.

(5) the name, business address, and telephone number of the applicant and of the [ his ] authorized agent, if any;

(6) an original signature, in ink, by the party filing the application or by the [ his ] authorized representative;

(7) a list of the names and addresses of all interested entities [ affected parties, ] as defined in subsection (c) [ (d) ] of this section.

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

(1) The applicant shall send a copy of CNG Form 1025 [ the application ] by certified mail, return receipt requested, to all affected entities as specified in paragraphs (2), (3), and (4) of this subsection [ parties ] on the same date on which the form [ application ] is filed with or sent to the Commission [ commission ]. The applicant [ In addition to the other requirements, the application ] shall include a notice to the affected entities that any objection shall [ complaint must ] be filed with the Commission within 18 calendar days of the date of postmark [ the application is mailed ]. The applicant shall file all [ All ] return receipts with the Commission as proof of notice [ shall be forwarded to the commission ].

(2) If [ In the case of ] an exception is requested on a stationary site, the affected entities to whom the applicant shall [ must ] give notice shall include but not be limited to: [ to persons and businesses owning real property having a common boundary with the site and to the local fire marshal, city manager, city secretary, city council, or mayor. If the site "is not" within any municipal limits the county commission or appropriate commissioner must be given notice. ]

(A) persons and businesses owning or occupying property adjacent to the site;

(B) the city council or fire marshal, if the site is within municipal limits; and

(C) the county Commission, if the site is not within any municipal limits.

(3) If [ In the case of ] an exception is requested on a nonstationary site, affected entities [ parties ] to whom the applicant shall [ must ] give notice include but are not [ shall include, but not be ] limited to:

(A) the Texas Department of Public Safety; and

(B) all CNG loading and unloading facilities utilized by the applicant.

(4) The Commission [ In the interest of justice, the division director ] 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 [ party ].

(d) Objections to the requested exception shall be in writing, filed at the Commission within 18 calendar days of the postmark of the application, and shall be based on facts that tend to demonstrate that, as proposed, the exception would have an adverse effect on public health, safety, or welfare. The Commission may decline to consider objections based solely on claims of diminished property or esthetic values in the area.

(e) [ Commission review. ] The Commission [ commission ] shall review the application within 21 business [ calendar ] days of receipt of the application. [ exception request. The commission must mail written notification to the applicant within the 21 calendar days of whether the request is complete or incomplete. ] If the Commission does not receive any [ commission has received no ] 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 [ parties, it ] 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 [ , unless it determines the exception would be hazardous to the health, safety, or welfare of the general public ]. The 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 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 [ commission declines administratively to grant ] the exception, the Commission [ it ] shall notify the applicant in writing, outlining [ by certified mail, return receipt requested, of ] the reasons and [ of ] 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)

[Hearings.]

[ (1) [ [ When held. ] A hearing shall [ will ] be held when the Commission [ commission ] receives an [ a valid ] objection as set out in subsection (d) from any affected entity, [ with any evidence or data to support the objection from any affected party, ] or when the applicant requests one following an administrative denial. The 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 Regulations for Compressed Natural Gas. [ To be granted a hearing, the applicant must file a request for a hearing within two weeks of receiving notice of the administrative denial. Failure to request a hearing within this time period will constitute waiver of the right of hearing. ]

[ (2) Notice. The commission shall prepare a notice of hearing which shall be mailed to the applicant and all affected parties by certified mail, return receipt requested, not less than 21 calendar days prior to the date of the hearing.]

(g) Applicants intentionally submitting incorrect or misleading information are subject to penalties [ Penalties. Intentional misinformation submitted by an applicant or the authorized agent of such applicant shall be punishable as set out ] in the Texas Natural Resources Code, §116.142, and the filing of incorrect or misleading information shall be grounds for dismissing the application with prejudice.

(h) [ Finding requirement. ] After [ the ] hearing, exceptions to this chapter may be granted by the [ Railroad ] Commission if the Commission finds that granting the exception for the installation, as proposed, will not adversely affect the safety of the public [ of Texas when based upon a determination that the grant of the exception will neither imperil nor tend to imperil the health, safety, and welfare of the general public ].

(i) Temporary exception. For good cause shown, the division [ commission ] may grant a temporary exception, which shall not exceed 30 days, to the examination requirements for representatives and operations supervisors. Good cause shall include[ , but not be limited to, ] the death of a sole proprietor or partner, [ partners, or severe economic hardship ]. An applicant for a temporary exception shall [ must agree to ] comply with all applicable safety requirements and the division shall obtain information showing that [ commission must find ] the exception will not be hazardous to the public.

(j) A request for an exception shall expire if it is inactive for three months after the date of the letter in which the applicant was notified by the Commission of an incomplete request. The [ Application completion deadline. If an application for an exception is inactive for six months after the applicant has been notified by the commission of an incomplete request, the application shall expire. Thereafter, the ] applicant may resubmit an exception request.

§13.36.Report of CNG Incident/Accident.

(a) In case of an incident involving single release of compressed natural gas (CNG) during or following CNG transfer or during container transportation, or an accident at any location where CNG is the cause or is suspected to be the cause, the licensee owning, operating, or servicing the equipment or the installation shall notify the LP-Gas Section [ Division ]. This notification shall be by telephone as soon as possible after the licensee has knowledge of the incident or accident. Any loss of CNG which is less than 1.0% of the gross amount delivered, stored, or withdrawn need not be reported. However, any loss occurring as a result of a pullaway shall [ (i.e., the accidental separation of a hose from a cylinder, container, or dispensing equipment) must ] be reported.

(b) Information which shall [ must ] be reported to the LP-Gas Section includes [ division must include ]: date and time of the incident or accident; type of structure or equipment involved; resident's or operator's name; physical location; number of injuries and/or fatalities; whether fire, explosion, or gas leak has occurred; whether gas is leaking; and whether immediate assistance from the division is requested. Any individual [ person ] reporting shall [ must ] leave his or her [ his/her ] name, and telephone number where he or she [ he/she ] can be reached for further information.

(c) Any transport unit required to be registered with the Commission [ commission ] in accordance with §13.69 of this title (relating to Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority [ Transport Units ]) which is involved in an accident where there is damage to the tank, piping appurtenances, or any release of CNG resulting from an accident shall [ must ] be reported to the Commission [ commission ] in accordance with this section regardless of the accident location. Any CNG powered motor vehicle used for school transportation or mass transit including any state owned vehicle which is involved in an accident resulting in a substantial release of CNG or damage to the CNG conversion equipment shall [ must ] be reported to the Commission [ commission ] in accordance with this section regardless of accident location.

(d) Following the initial telephone report, a CNG Form 1020, Report of CNG Incident/Accident, shall [ must ] be submitted to the LP-Gas Section [ Division ]. The report shall [ must ] be postmarked within 14 calendar days of the date of initial notification to the division.

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 August 7, 2001.

TRD-200104504

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 23, 2001

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


Subchapter C. CLASSIFICATION, REGISTRATION, AND EXAMINATION

16 TAC §§13.61, 13.69, 13.70, 13.71, 13.73

The amendments are proposed under Texas Government Code, §2001.006 ( as added by Acts 1999, 76th Leg., Ch. 558, §1 ); under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; and under Sections 54- 60, Senate Bill 310, 77th Legislature (2001).

Texas Natural Resources Code, Chapter 116, as amended by Sections 54-60, Senate Bill 310, 77th Legislature (2001) is affected by the proposed amendments.

Issued in Austin, Texas on August 7, 2001.

§13.61.Licenses, Related Fees, and Licensing Requirements.

(a) A prospective licensee may apply to the Commission [ commission ] for one or more licenses specified in subsection (b)(1)-(6) [ (c)(1)-(6) ] of this section. Fees required to be paid shall be those established by the Commission [ commission ] and in effect at the time of licensing or renewal. A person shall [ may ] not engage in CNG activities unless that person has obtained a license as specified in this section. If a license expires or lapses, the person shall immediately cease CNG operations.

[ (b) License and renewal fees shall be prorated as specified in subsection (j) of this section.]

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

(1) A Category 1 license for manufacturers of CNG cylinders authorizes the manufacture, assembly, repair, testing, sale, installation, or subframing of CNG cylinders. The original license fee is $1,000; the renewal fee is $600.

(2) A Category 2 license for general installers and repairmen authorizes the sale, installation, service, or repair of CNG systems, including cylinders. The original license fee is $300; the renewal fee is $150.

(3) A Category 3 license for retail and wholesale dealers authorizes the sale, storage, transportation for delivery, or dispensing of CNG for use other than by an ultimate consumer, and the sale, installation, service, or repair of CNG systems as set out in Categories 2, 5, and 6. The original license fee is $750; the renewal fee is $300.

(4) A Category 4 license for testing laboratories authorizes the testing of CNG cylinders. The original license fee is $400; the renewal fee is $200.

(5) A Category 5 license for service stations or cylinder exchangers authorizes the operation of a CNG service station, including filling CNG cylinders, or the operation of a cylinder exchange dealership, including filling CNG cylinders, the sale of CNG in cylinders, the sale of CNG cylinders, and the replacement of cylinder valves. The original license fee is $150; the renewal fee is $70.

(6) A Category 6 license for equipment dealers authorizes the sale of CNG cylinders or systems. The original license fee is $100; the renewal fee is $50.

(c) [ (d) ] An ultimate consumer is not subject to the licensing requirements of this title in order to perform those CNG activities dealing only with the ultimate consumer.

(d) [ (e) ] An original manufacturer of a new motor vehicle powered by CNG[ , ] or a subcontractor of a manufacturer who produces a new CNG powered motor vehicle for the manufacturer[ , ] is not subject to the licensing requirements of this chapter [ title ], but shall [ must ] comply with all other regulations for compressed natural gas in this chapter .

(e) [ (f) ] A license obtained by an individual, partnership, corporation, or other legal entity shall extend [ extends ] to the entity's employees who are performing CNG work, provided that each employee is properly certified [ examined ] as required by this chapter.

(f) [ (g) ] Licensees shall maintain a copy of the current Regulations for Compressed Natural Gas published by the Commission [ commission ] and shall provide at least one copy to each company representative and operations supervisor. The copies shall be available to employees during business hours. Failure to maintain the required copies may result in enforcement action such as penalties or suspension of licenses.

(g) [ (h) ] Licensees shall have copies of all current licenses and examination identification cards for employees at each location available for inspection during regular business hours.

(h) [ (i) ] Licenses issued under this chapter expire one year after issuance at midnight on the last day of the month previous to the month in which they are issued.

[ (j) During the first year when a license changes from an August 31 renewal date to a staggered renewal date, the commission will randomly assign new license renewal dates to be staggered throughout the year. License renewal fees shall be prorated by:]

[ (1) dividing the applicable renewal fee by 12; and]

[ (2) multiplying that amount by the number of months assigned to the new staggered license. Fractions shall be rounded off to the nearest tenth of a dollar.]

[ (k) Only licenses that are in effect during the time of the conversion to staggered renewal dates shall have prorated fees. New applicants for license shall pay all fees in full before the commission issues a license.]

(i) [ (l) ] For license renewals, the Commission shall notify the licensee in writing at the address on file with the Commission of the impending license expiration at least 30 calendar days before the date the license is scheduled to expire. Renewals shall be submitted to the Commission [ commission ] along with the license renewal fee specified in subsection (b) [ (c) ] of this section on or before the last day of the month in which the license expires in order for the licensee to continue CNG activities. Failure to meet the renewal deadline set forth in this section shall result in expiration of the license. If a person's license expires, that person shall immediately cease performance of any CNG activities.

(1) If a person's license has been expired for 90 calendar days or fewer [ fewer than 90 days ], the person shall submit a renewal fee that is equal to 1 1/2 times the renewal fee required in subsection (b) of this section [ late-filing penalty of one-half the amount of the annual renewal fee in addition to the required annual renewal fee ]. Upon receipt of the [ annual ] renewal fee [ and late-filing penalty ], the Commission [ commission ] shall verify that the person's license has not been suspended, revoked, or expired for more than one year [ two years ]. After verification, if the licensee has met all other requirements for licensing, the Commission [ commission ] shall renew the license, and the person may resume CNG activities.

(2) If a person's license has been expired for more than 90 calendar days but less than one year [ two years ], the person shall submit a renewal fee that is equal to two times the renewal fee required in subsection (b) of this section [ late-filing penalty equal to the amount of the annual renewal fee in addition to the required annual renewal fee ]. Upon receipt of the [ annual ] renewal fee [ and late-filing penalty ], the Commission [ commission ] shall verify that the person's license has not been suspended, revoked, or expired for more than one year [ two years ]. After verification, if the licensee has met all other requirements for licensing, the Commission [ commission ] shall renew the license, and the person may resume CNG activities.

(3) If a person's license has been expired for one year or longer [ more than two years ], that person may not renew, but shall comply with the requirements for issuance of an original [ a new ] license.

(4) A person who was licensed in this state, moved to another state, and is currently licensed and has been in practice in the other state for the two years preceding the date of application, may obtain a new license without reexamination. The person shall pay to the Commission a fee that is equal to two times the renewal fee required by subsection (b) of this section.

(A) As a prerequisite to licensing pursuant to this provision, the person shall submit, in addition to an application for licensing, proof of having been in practice and licensed in good standing in another state continuously for the two years immediately preceding the filing of the application;

(B) A person licensed under this provision shall be required to comply with all requirements of licensing other than the examination requirement, including but not limited to the insurance requirements as specified in §13.62 of this title (relating to Insurance Requirements).

(j) [ (m) ] Applicants for license or license renewal shall file with the Commission [ commission ] CNG Form 1001 designating a company representative who shall be an owner or employee of the licensee, and shall be directly responsible for actively supervising CNG operations of the licensee. A licensee may have more than one company representative.

(1) An applicant for license shall not engage in CNG activities governed by the Texas Natural Resources Code, Chapter 116, and the Regulations for Compressed Natural Gas, until its company representative has successfully completed the management examination administered by the Commission [ commission ].

(2) The licensee shall notify the Commission [ commission ] in writing upon termination of its company representative of record and shall at the same time designate a replacement by submitting a new CNG Form 1001.

(3) The licensee shall cease operations if, at the termination of its company representative, there is no other certified company representative of the licensee acknowledged and recorded by the Commission [ commission ] at its Austin office. The licensee shall not resume operation until such time as it has a qualified company representative.

(k) [ (n) ] In addition to complying with other licensing requirements set out in the Texas Natural Resources Code and the Regulations for Compressed Natural Gas, applicants for license or license renewal in the following categories shall comply with the specified additional requirements.

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

(A) its current DOT authorization. A licensee shall not continue to operate after the expiration date of the DOT authorization; and/or

(B) its current ASME Code, Section VIII certificate of authorization or "R" certificate. If ASME is unable to issue a renewed certificate of authorization prior to the expiration date, the licensee may request in writing an extension of time not to exceed 60 calendar days past the expiration date. The licensee's request for extension shall be received by the Commission [ commission ] prior to the expiration date of the ASME certificate of authorization referred to in this section, and shall include a letter or statement from ASME that the agency is unable to issue the renewal certificate of authorization prior to expiration and that a temporary extension will be granted for its purposes. A licensee shall not continue to operate after the expiration date of an ASME certificate of authorization until the licensee files a current ASME certificate of authorization with the Commission [ commission ], or the Commission [ commission ] grants a temporary exception.

(2) An applicant for a Category 4 license or renewal shall file a properly completed CNG Form 1505 with the Commission [ commission ], certifying that the applicant will follow the testing procedures indicated. CNG Form 1505 shall be signed by the appropriate CNG company representative designated on CNG Form 1001.

§13.69.Registration and Transfer of CNG Transports and CNG Form 1004 Decal or Letter of Authority .

(a) A person who operates a transport equipped with CNG cargo tanks or any cylinder delivery unit, regardless of who owns the transport or unit, shall register such transport or unit with the Commission in the name or names under which the operator conducts business in Texas prior to the transport or unit being used in CNG service.

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

(A) pay to the Commission the $270 registration fee for each bobtail truck, semitrailer, cylinder delivery unit, or other motor vehicle equipped with CNG cargo tanks; and

(B) file a properly completed CNG Form 1007.

(2) To register a specification unit which was previously registered in Texas but for which the registration has expired, the operator of the unit shall:

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

(B) file a properly completed CNG Form 1007; and

(C) file a copy of the latest test results if an expired unit has not been used in the transportation of CNG for over one year.

(3) To transfer a unit, the new owner of the transport shall:

(A) pay the $100 transfer fee for each unit; and

(B) file a properly completed CNG Form 1007.

(b) The Commission may also request that an operator registering or transferring any unit to file a copy of the Manufacturer's Data Report.

(c) When all registration or transfer requirements have been met, the Commission shall issue CNG Form 1004 or letter of authority which shall be properly affixed as instructed on the decal or letter or maintained on the bobtail or transport trailer. CNG Form 1004 or letter of authority shall authorize the licensee or ultimate consumer to whom it has been issued and no other person to operate such unit in the transportation of CNG and to fill the transport containers.

(1) A person shall not operate a CNG transport unit or cylinder delivery unit or introduce CNG into a transport container in Texas unless the CNG Form 1004 or letter of authority has been properly affixed as instructed on the decal or the letter or maintained on the bobtail or transport trailer or unless its operation has been specifically approved by the Commission.

(2) CNG Form 1004 or letter of authority shall not be transferable by the person to whom it has been issued, but shall be registered by any subsequent licensee or ultimate consumer prior to the unit being placed into CNG service.

(3) This subsection shall not apply to:

(A) a container manufacturer/fabricator from introducing a reasonable amount of CNG into a newly constructed container in order to properly test the vessel, piping system, and appurtenances prior to the initial sale of the container. The CNG shall be removed from the transport container prior to the transport leaving the manufacturer's or fabricator's premises; or

(B) a person who introduces a maximum of 500 cubic feet of CNG into a newly constructed transport container when such container will provide the motor fuel to the chassis engine for the purpose of allowing the unit to reach its destination.

(4) The Commission shall not issue a CNG Form 1004 or letter of authority if the Commission or a Category 1 or 4 licensee determines that the transport is unsafe for CNG service.

(5) If a CNG Form 1004 decal or letter of authority on a unit currently registered with the Commission is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement by filing CNG Form 1018B and a $50 replacement fee with the Commission. [ A licensee or ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined as a CNG transport by this subchapter shall register each such unit with the commission in the name of the licensee or ultimate consumer prior to the use of such unit for the transport or delivery of CNG in Texas. ]

[ Figure: 16 TAC §13.69 ]

§13.70.Examination Requirements and Renewals.

(a) Examination general provisions.

(1) No individual [ person ] may work or be employed in any capacity which requires contact with CNG or CNG systems until that individual [ person ] has submitted to and successfully completed a Commission [ commission ] examination which measures the competency of that individual [ person ] to perform the CNG related activities anticipated, and tests working knowledge of the Texas Natural Resources Code and the regulations for compressed natural gas related to the type of CNG work anticipated. Table 1 of this section sets forth specific requirements for examination for each category of license. This section applies to all licensees and their employees who perform CNG related activities, and also applies to any ultimate consumer who has purchased, leased, or obtained other rights in any vessel defined as a CNG transport by this chapter and any employee of such ultimate consumer if that employee drives or in any way operates such a CNG transport. Driving a motor vehicle powered by CNG or fueling of motor vehicles for an ultimate consumer by the ultimate consumer or its employees do not in themselves constitute CNG related activities. Only paragraph (2) of this subsection applies to an employee of a state agency or institution, county, municipality, school district, or other governmental subdivision.

Figure: 16 TAC §13.70(a)(1) (No change.)

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

(C) The examination fees are nonrefundable and, if an applicant fails an examination, the applicant shall pay the full examination fee for each subsequent examination.

(2) Any employee of an ultimate consumer or a state agency or institution, county, municipality, school district, or other governmental subdivision not required to submit to examination under this section shall [ must ] be properly supervised and trained in the installation, maintenance, and storage of CNG and CNG systems, and in the operation of equipment during the filling of and dispensing from storage containers. Such training shall also include the protection of containers and equipment against mechanical injury or tampering by unauthorized persons.

(3) (No change.)

(4) An individual who has filed CNG Form 1015 and the applicable nonrefundable examination fee may take the rules examination at the Commission's Austin office between the hours of 8:00 a.m. and 2:00 p.m., Monday through Friday, except for state holidays, and at other designated times and locations around the state. Applicants who wish to take the rules examination at sites other than the Austin office shall submit CNG Form 1015 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. [ All examinations will be administered in Austin and at other selected sites, when appropriate, unless an applicant demonstrates good cause for administering the examination elsewhere. Good cause includes, but is not limited to, severe economic hardship. ]

(5) Successful completion of any required examination shall be credited to and accrue to the individual.

(6) Failure of any examination shall immediately disqualify the individual [ person ] from performing any CNG related activities covered by the examination which is failed. Any person who fails an examination administered by the Commission [ commission ] may not re-take that examination for a period of at least 24 hours.

(7) Dates and locations of examinations shall be listed in a schedule made annually by the Commission [ commission ]. The schedule shall be prepared no later than November 15th of each year. The Commission [ commission ] shall post the schedule in its Austin office and make a copy of it available to anyone [ any person ] who requests it.

(b) General installers and repairmen exemption.

(1) Any individual [ person ] 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 Department of Licensing and Regulation may apply for and be granted an exemption to the Category 2 and 3 service and installation employee examination requirements by submitting to the Commission [ commission ] the following information:

(A) CNG Form 1016B;

(B) a $30 original filing fee; and

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

(2) This exemption does not become effective until the examination exemption card is issued by the Commission [ commission ].

(3) The examination exemption accrues to the individual [ applicant ] and is nontransferable.

(4) Any individual [ person ] granted such exemption shall [ must ] maintain certified status at all times. Upon failure to maintain certified status, all affected CNG operations shall [ must ] cease immediately until proper status has been regained.

(5) In order to maintain an exemption [ certified status ], each individual [ person ] issued an examination exemption card shall pay [ submit ] a $20 annual renewal fee [ annually ] to the Commission [ commission ] on or before May 31 [ the 31st day of May ] 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 [ both of these items are not received by the deadline ], that individual [ person ] shall cease performing all CNG related activities granted by this exemption [ and may not resume such activities ] until that individual renews the exemption [ person is in receipt of his or her examination exemption card ]. To renew a lapsed exemption, the individual shall pay the $20 annual renewal fee plus a $20 late-filing fee. Failure to do so shall result in the expiration of the examination exemption. [ Late renewals are permitted for a period not to exceed two years by paying a late filing penalty plus the yearly renewal fee(s) as follows: ]

[ (A) the applicant's exemption has been expired for not longer than 92 days, the applicant's penalty fee is $20 plus a $20 annual fee;]

[ (B) the applicant's exemption has been expired for greater than 92 days, but not longer than two years, the applicant's penalty fee is $50 plus a $20 annual fee. ] If the individual's examination [ an applicant's ] exemption has been expired for one year or longer [ longer than two years ], the individual shall complete all requirements necessary to apply for a new exemption [ applicant cannot renew his exemption and must apply for a new original exemption ].

(6) Any individual [ person ] who is issued this exemption agrees to comply with the current edition of the regulations for compressed natural gas. In the event the exempt individual surrenders, fails to renew, or has the license revoked either by the Texas State Board of Plumbing Examiners or Department of Licensing and Regulation, that individual shall [ person will ] immediately cease performing any CNG activity granted by this section. The examination exemption card shall [ must ] be returned immediately to the Commission [ commission ] and all rights and privileges surrendered.

(c) Trainees.

(1) A [ Notwithstanding the examination requirements set forth in this section, a ] licensee or ultimate consumer may employ an individual as a trainee for a period not to exceed 45 calendar days[ , ] without that individual [ person ] having successfully completed the rules [ necessary ] examination[ , ] subject to the following conditions.

(A) The trainee shall [ must ] be directly and individually supervised at all times by an individual [ a person ] who has successfully completed the rules [ commission ] examination for the areas of work being performed by the trainee. [ Refer to subsection (f) (Table 1) of this section for those CNG related activities for which a person must be certified or a trainee can perform under direct supervision. ]

(B) The licensee or ultimate consumer shall ensure that [ a ] CNG Form 1016 is on file with the Commission [ commission ] for each trainee at the time that trainee begins supervised CNG activities [ employee in training prior to that employee taking the examination ]. The trainee shall then have 45 calendar days to pass the applicable rules examination.

[ (C) No trainee may perform any work for which he or she is not currently certified while unsupervised, if such work involves CNG activities.]

(2) A trainee who [ takes a commission examination, and who ] fails the rules examination[ , ] shall immediately cease to perform any CNG related activities covered by the examination failed.

(3) A trainee who has been in training for a total [ period ] of 45 calendar days, in any combination and [ or ] with any number of employers, shall cease to perform any CNG activities for which he or she is not certified.

[ (3) A trainee who continues to work in violation of this subsection may be held responsible for the violation. An employer who employs a person in violation of this subsection may be held responsible for the violation. Possible penalties for violation are set forth in the Texas Natural Resources Code, Chapter 116. The commission may call an administrative hearing to show cause why a license should not be subject to revocation, suspension, or probation, or any combination of these penalties.]

[ (d) Examination fees. Each applicant shall pay to the commission the examination fee specified in subsection (a)(1)(A) and (B) of this section in advance for each required examination. The fee is nonrefundable, and if an applicant fails an examination, the applicant shall pay the full examination fee for each subsequent examination.]

(d) [ (e) ] Renewal of certified status.

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

(2) [ (1) ] In order to maintain active [ certified ] status, a certificate holder [ each person who has been certified by examination ] shall pay the $25 annual certificate renewal fee [ specified in subsection (a)(1)(A) and (B) of this section ] to the Commission [ commission ] on or before May 31 [ the 31st day of May ] of each year. Individuals who hold more than one certificate shall pay only one annual renewal fee.

(3) [ (2) ] Failure to pay the annual renewal fee by the [ meet the May 31st renewal ] deadline [ set forth in this section ] shall result in a lapse of certification unless the late filing fee [ . Failure to meet the August 31st of each year deadline discussed ] in paragraph (4) [ (3) ] of this subsection is paid [ shall result in the expiration of certification ]. If an individual's [ a person's ] certification has been expired for one year or longer [ more than two years ], that individual shall [ person must ] comply with the requirements of subsection (a) of this section. If an individual's [ a person's ] certification lapses or expires, that individual [ person ] shall immediately cease performance of any CNG activities that require certification. Certified status shall [ may ] be regained only by successfully completing the examination requirement for certification and meeting the requirements of paragraph (4) [ (3) ] of this subsection.

(4) [ (3) ] Any lapsed renewals submitted after May 31st of each year shall include a $20 late filing fee [ penalty ] in addition to the renewal fee, proof of successful completion of the examination required for certification, and be received in the Commission's [ commission's ] Austin office no later than close of business on August 31 or, if August 31 falls on a weekend or state holiday, close of business on the last business day before August 31 [ midnight of the 31st day of August ] of each year. Upon receipt of the renewal fee and late filing penalty, the Commission [ commission ] shall verify that the individual's [ person's ] certification has not been suspended, revoked, or expired for one year or longer [ more than two years ]. After verification, the Commission [ commission ] shall renew the certification and the individual [ person ] may resume CNG activities.

(e) [ (f) ] Expired certification(s). Any renewal submitted after the August 31 deadline shall be considered expired. If an individual [ a person ] wishes to renew a certification that has been expired for less than one year [ two years ], that individual [ person ] shall submit the annual renewal fee and late filing fee [ penalty ], and proof of successful completion of the examination required for certification. Upon verification that the individual's [ person's ] certification has not been suspended, revoked, or expired for one year or longer [ more than two years ], the Commission [ commission ] shall renew the individual's [ person's ] certification and the individual [ person ] may resume CNG activities.

§13.71.Denial, Suspension, or Revocation of Licenses or Certifications and Hearings [ ; Hearing ].

(a) The Commission may deny, suspend, or revoke a license or certificate for any individual who fails to comply with this chapter. [ Denial of license or license renewal. ]

[ (1) Any applicant for license or license renewal failing to meet the requirements of §13.61 of this title (relating to Licensing), §13.70 of this title (relating to Examination and Notification Generally), or §13.62 of this title (relating to Insurance Requirements) may be denied the license or license renewal.]

(1) [ (2) ] If the Commission [ commission ] determines that an applicant for license , certificate, or license renewal has not met the requirements of this chapter [ §13.61 of this title (relating to Licensing), §13.62 of this title (relating to Insurance Requirements), or §13.70 of this title (relating to Examination and Notification Generally) ], the Commission [ commission ] shall notify the applicant in writing of the reasons for the proposed denial. In the case of an applicant for license or certificate, the [ The ] notice shall [ must ] advise the applicant [ person ] that the application may be resubmitted within 30 calendar days of receipt of the denial with all cited deficiencies corrected, or, if the applicant [ person ] disagrees with the Commission's [ commission's ] determination, the applicant [ that person ] may request a hearing in writing on the matter within 30 calendar days of receipt of the notice of denial.

(2) [ (3) ] If the applicant [ a person ] resubmits the application for license or license renewal within 30 days of receipt of the denial with all deficiencies corrected, the Commission [ commission ] shall issue the license or license renewal.

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

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

(1) If a licensee or certified individual [ person ] disagrees with the determination of the Commission [ commission ] under this section, that licensee or certified individual [ person ] may request a public hearing on the matter to be conducted in compliance with the Texas Government Code, Chapter 2001, [ Administrative Procedure and Texas Register Act, ] the general rules of practice and procedure of the Railroad Commission of Texas in Chapter 1 of this title, relating to Practice and Procedure , and any other applicable rules. The request shall [ must ] be in writing, shall [ must ] refer to the specific rules or statutes the licensee or certified individual [ person ] claims were met [ to have complied with ], and shall [ must ] be received by the Commission [ commission ] within 30 calendar days of the licensee's or certified individual's [ person's ] receipt of the notice of violation or noncompliance.

(2) If , after hearing, the Commission finds [ Railroad Commission of Texas determines ] that the licensee or certified individual [ person ] may not comply within the specified time, the Railroad Commission of Texas may enter an order calling a public hearing to be conducted in compliance with the Texas Government Code, Chapter 2001, [ Administrative Procedure and Texas Register Act, ] the general rules of practice and procedure of the Railroad Commission of Texas in Chapter 1 of this title, relating to Practice and Procedure , and any other applicable rules.

§13.73.Other Fees for Employee Transfer [ and Decal Replacement ].

[ (a) ] A licensee shall notify the Commission [ commission ] when a previously certified person is hired, by immediately filing CNG Form 1016A along with a $10 filing fee with the Commission [ commission ]. Notification shall [ must ] include the employee's name as recorded on a current driver's license or Texas Department of Public Safety identification card, employee social security number, name of previous licensee-employer, and CNG related work to be performed.

[ (b) If a CNG Form 1004 decal on a unit currently registered with the commission is destroyed, lost, or damaged, the operator of that vehicle shall obtain a replacement decal by filing CNG Form 1018B and a $50 replacement fee with the commission.]

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

Filed with the Office of the Secretary of State, on August 7, 2001.

TRD-200104505

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 23, 2001

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


Subchapter E. ENGINE FUEL SYSTEMS

16 TAC §13.141

The amendments are proposed under Texas Government Code, §2001.006 ( as added by Acts 1999, 76th Leg., Ch. 558, §1 ); under Texas Natural Resources Code, §116.012, which authorizes the Commission to adopt rules and standards relating to compressed natural gas activities to protect the health, welfare, and safety of the general public; and under Sections 54- 60, Senate Bill 310, 77th Legislature (2001).

Texas Natural Resources Code, Chapter 116, as amended by Sections 54-60, Senate Bill 310, 77th Legislature (2001) is affected by the proposed amendments.

Issued in Austin, Texas on August 7, 2001.

§13.141.System Testing.

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

(d) When a compressed natural gas (CNG) cylinder is involved in an accident or fire causing damage to the cylinder, the cylinder shall be replaced or removed and returned to a currently licensed Category 1 licensee (manufacturer) or Category 4 licensee (tester) to be inspected and retested in accordance with the originally manufactured specifications. Before being returned to service, a CNG Form 1008, Manufacturers Report of Retest or Repair, shall be sent to the LP-Gas Section [ Division ].

(e) (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 August 7, 2001.

TRD-200104506

Mary Ross McDonald

Deputy General Counsel, Office of General Counsel

Railroad Commission of Texas

Earliest possible date of adoption: September 23, 2001

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