The Texas Education Agency (TEA) proposes the review of 19 TAC Chapter 92, Interagency Coordination, pursuant to the Texas Government Code, §2001.039.

As required by the Texas Government Code, §2001.039, the TEA will accept comments as to whether the reason for adopting 19 TAC Chapter 92 continues to exist. The comment period begins with the publication of this notice and must last a minimum of 30 days. One of the rules in this chapter, §92.1003, is a memorandum of understanding between the TEA and the Texas Department of Protective and Regulatory Services (PRS) concerning the Communities in Schools program. The PRS has proposed modification to their rules related to the Communities in Schools program. Section 92.1003 is being included in the review of rules in 19 TAC Chapter 92 at this time; however, the TEA may propose an amendment to this rule in a future issue of the Texas Register , contingent upon PRS action.

Comments or questions regarding the rule review of 19 TAC Chapter 92 may be submitted to Cristina De La Fuente-Valadez, Accountability Reporting and Research, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701-1494, (512) 463-9701. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 475-3499.

TRD-200301643

Cristina De La Fuente-Valadez

Manager, Policy Planning

Texas Education Agency

Filed: March 10, 2003

Title 30, Part 1

The Texas Commission on Environmental Quality (commission) files this notice of intention to review and proposes the readoption of Chapter 308, Criteria and Standards for the National Pollutant Discharge Elimination System.

This review of Chapter 308 is proposed in accordance with the requirements of Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist.

CHAPTER SUMMARY

Chapter 308 incorporates by reference criteria and standards for the National Pollutant Discharge Elimination System. Chapter 308 provides criteria and standards for imposing technology-based treatment requirements; criteria for issuance of permits to aquaculture projects; criteria for extending compliance dates for facilities installing innovative technology under the Clean Water Act (CWA); criteria and standards for determining fundamentally different factors under the CWA; criteria and standards for granting economic variances from best available technology economically achievable under the CWA; criteria for modifying water quality related variances under the CWA; criteria for modifying the secondary treatment requirements under the CWA; criteria for determining alternative effluent limitations under the CWA; criteria applicable to cooling water intake structures under the CWA; criteria for extending compliance dates under the CWA; criteria and standards for imposing conditions for the disposal of sewage sludge under the CWA; and ocean discharge criteria.

PRELIMINARY ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission conducted a preliminary review and determined that the reasons for the rules in Chapter 308 continue to exist. The rules are needed to maintain the Texas Pollutant Discharge Elimination System program authorization. The rules are needed under Texas Water Code (TWC), §5.103, which provides the commission's authority to adopt any rules necessary to carry out its powers and duties under the laws of Texas; TWC, §5.105, which provides the commission's authority to, by rule, establish and approve general policy of the commission; TWC, §5.120, which provides the commission's authority to administer the law to promote conservation and protection of the quality of the environment; TWC, §26.011, which provides the commission's authority to establish rules to maintain and control the quality of the water in the state; TWC, §26.041, which provides the commission's authority to set standards to prevent the discharge of waste that is injurious to the public health; and TWC, §26.0345, which provides the commission's authority to establish permit conditions relating to suspended solids in a discharge permit for an aquaculture facility located within the coastal zone and engaged in shrimp production. This rule review proposes to readopt the rules without any changes.

PUBLIC COMMENT

This proposal is limited to the review in accordance with the requirements of Texas Government Code, §2001.039. The commission invites public comment on whether the reasons for the rules in Chapter 308 continue to exist. Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 2003-006-308-WT. Comments must be received in writing by 5:00 p.m., April 21, 2003. For further information or questions concerning this proposal, please contact Deborah Dyer, Policy and Regulations Division, at (512) 239-3972.

TRD-200301608

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 7, 2003

The Texas Commission on Environmental Quality (commission) files this notice of intention to review and proposes the readoption of Chapter 312, Sludge Use, Disposal, and Transportation, without changes. Any updates, consistency issues, or other changes, if needed, will be addressed in a separate rulemaking.

This review of Chapter 312 is proposed in accordance with the requirements of Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist.

CHAPTER SUMMARY

Chapter 312 provides for regulation of the processing, use, and disposal of sewage sludge, domestic septage, and water treatment sludge, as well as regulation of the transportation of these and other liquid wastes. Registrations or permits are usually required to engage in any of these activities. Chapter 312 is divided into Subchapters A - G, which set forth general administrative provisions and fees; provisions for the use of sewage sludge and/or domestic septage as a soil amendment; provisions for land disposal of sewage sludge and domestic septage; criteria for pathogen reduction and odor control for use or disposal of sewage sludge and domestic septage; guidelines for incineration of sewage sludge and domestic septage; provisions for disposal of water treatment sludge or its use as a soil amendment; and provisions for the transportation of sewage sludge, water treatment sludge, domestic septage, grease trap waste, grit trap waste, and chemical toilet waste (collective termed "liquid wastes"). This rules review proposes to readopt the rules without any changes.

PRELIMINARY ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission conducted a preliminary review and determined that the reasons for the rules in Chapter 312 continue to exist. The rules are needed to implement the provisions of Texas Health and Safety Code, Chapter 361 that govern the use and disposal of sewage sludge, water treatment sludge, and domestic septage and that govern the transportation of liquid wastes. The rules are also needed to protect the quality of the water in the state under Texas Water Code, Chapter 26.

PUBLIC COMMENT

This proposal is limited to the review in accordance with the requirements of Texas Government Code, §2001.039. The commission invites public comment on this preliminary review of the rules in Chapter 312. Comments may be submitted to Lola Brown, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 2003-011-312-WT. Comments must be received in writing by 5:00 p.m., April 21, 2003. For further information or questions concerning this proposal, please contact Joseph Thomas, Policy and Regulations Division, at (512) 239-4580.

TRD-200301644

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 10, 2003

The Texas Commission on Environmental Quality (commission) files this notice of intention to review and proposes the readoption of Chapter 324, Used Oil Standards, without changes.

This review of Chapter 324 is proposed in accordance with the requirements of Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist.

CHAPTER SUMMARY

Chapter 324 adopts by reference federal law regarding used oil recycling under 40 Code of Federal Regulations (CFR) Part 279, Standards for the Management of Used Oil, which includes definitions, applicability, and prohibitions. Additionally, Chapter 324 provides registration and reporting standards for used oil generators, collection centers, transporters, transfer facilities, processors and re-refiners, burners of off-specification used oil for energy recovery, and marketers of used oil fuel. Procedures for used oil spills, procedures for commission suspension or revocation of a used oil registration, and soil remediation requirements for used oil handlers are also defined in this chapter.

PRELIMINARY ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission reviewed the rules in Chapter 324 and determined that the reasons for adopting the rules continue to exist. The rules are necessary to encourage the recycling of used oil; to protect the environment from used oil contamination; to implement Texas Health and Safety Code, Chapter 371, Used Oil Collection, Management, and Recycling; and to implement 40 CFR Part 279.

PUBLIC COMMENT

This proposal is limited to the review in accordance with the requirements of Texas Government Code, §2001.039. The commission invites public comment on this preliminary review of the rules in Chapter 324. Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 2003-005-324-WS. Comments must be received in writing by 5:00 p.m., April 21, 2003. For further information or questions concerning this proposal, please contact Jill Burditt, Policy and Regulations Division, at (512) 239-0560.

TRD-200301609

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 7, 2003

The Texas Education Agency (TEA) adopts the review of 19 TAC Chapter 76, Extracurricular Activities, pursuant to the Texas Government Code, §2001.039. The TEA proposed the review of 19 TAC Chapter 76 in the January 24, 2003, issue of the Texas Register (28 TexReg 761).

The TEA finds that the reason for adopting continues to exist. The TEA received no comments related to the rule review requirement as to whether the reason for adopting the rules continues to exist. No changes are being proposed as a result of the review. This concludes the review of 19 TAC Chapter 76.

TRD-200301662

Cristina De La Fuente-Valadez

Manager, Policy Planning

Texas Education Agency

Filed: March 10, 2003

Title 30, Part 1

The Texas Commission on Environmental Quality (commission) adopts the rules review and readopts Chapter 1, Purpose of Rules, General Provisions, in accordance with Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist. The notice of intention to review was published in the November 29, 2002, issue of the Texas Register (27 TexReg 11183).

CHAPTER SUMMARY

Chapter 1 states that the purpose of the commission's rules is to implement statutory authorizations and to establish the general policies of the commission. The chapter also sets forth procedures to be followed in agency proceedings, addresses open records request matters, and contains basic information concerning the Texas Commission on Environmental Quality, including the business office and mailing address of the agency.

ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission conducted a preliminary review and determined that the reasons for the rules in Chapter 1 continue to exist. The rules are needed to provide basic information about the agency and to set forth procedures concerning agency proceedings and open record requests.

PUBLIC COMMENT

The public comment period closed on December 30, 2002. No comments were received.

TRD-200301627

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 7, 2003

The Texas Commission on Environmental Quality (commission) adopts the rules review and readopts Chapter 3, Definitions, in accordance with Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist. The notice of intention to review was published in the January 10, 2003 issue of the Texas Register (28 TexReg 487).

CHAPTER SUMMARY

Chapter 3 provides definitions of certain words and terms used in commission rules. The meanings for each word and term defined provide a basis for consistent usage throughout the commission rules unless the context clearly indicates otherwise. This rules review readopts the rules without any changes.

ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission conducted a review and determined that the reasons for the rules in Chapter 3 continue to exist. The rules are needed to define key terms used in commission rules and to provide citations to state and federal statutes referenced in commission rules.

During the review of Chapter 3, the commission identified a number of changes to citations needed in §3.2. The commission intends to consider correction of these items in a separate rulemaking in the future.

PUBLIC COMMENT

The public comment period closed on February 10, 2003. No comments were received.

TRD-200301628

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 7, 2003

The Texas Commission on Environmental Quality (commission) adopts the rules review and readopts Chapter 101, General Air Quality Rules, in accordance with Texas Government Code, §2001.039, which requires state agencies to review and consider for readoption each of their rules every four years. The review must include an assessment of whether the reasons for the rules continue to exist. The notice of intention to review was published in the December 20, 2002 issue of the Texas Register (27 TexReg 12021).

CHAPTER SUMMARY

Chapter 101 contains definitions and sections that can apply to all sources of air contaminants. Chapter 101, Subchapter A contains sections that address issues basic to the operation of an air pollution control program including prohibition of nuisance, circumvention of rules, air contaminants from multiple properties, emission inventory procedures, sampling, and fee assessment. Also in Subchapter A are sections concerning the application of federal standards in Texas and conformity of federal entities to state implementation plans. The sections of Subchapter F apply to the reporting and recording of exceedences of established commission air contaminant standards during source maintenance, startup, shutdown, or the malfunction of a source. Subchapter H addresses the generation, banking, and use of emission credits, as well as the mass emissions cap and trade program in the Houston-Galveston ozone nonattainment area. This rules review readopts the rules without any changes.

ASSESSMENT OF WHETHER THE REASONS FOR THE RULES CONTINUE TO EXIST

The commission conducted a review and determined that the reasons for the rules in Chapter 101 continue to exist. The rules are needed to retain a general regulatory structure for the operation of all air contaminant sources in Texas and for application of federal standards, as well as to provide flexibility in complying with the rules of the commission.

PUBLIC COMMENT

The public comment period closed on January 21, 2003. No comments were received.

TRD-200301645

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Filed: March 10, 2003

Title 16, Part 2

The Public Utility Commission of Texas (commission) readopts Texas Administrative Code (TAC), Chapter 26, Substantive Rules Applicable to Electric Service Providers, pursuant to the Texas Government Code, Administrative Procedure Act (APA), §2001.039, Agency Review of Existing Rules. The notice of intention to review Chapters 24 and 26 was published in the Texas Register on September 13, 2002 (27 TexReg 8784). As a result of this review, the commission shall initiate a proceeding to repeal TAC Chapter 24, Policy Statements. Project Number 22067 is assigned to this review proceeding. This concludes the review of Chapters 24 and 26 pursuant to APA §2001.039.

APA §2001.039 requires that each state agency review its rules every four years and readopt, readopt with amendments, or repeal the rules adopted by that agency pursuant to the Texas Government Code, Chapter 2001. Such reviews shall include, at a minimum, an assessment by the agency as to whether the reason for adopting or readopting the rules continues to exist. The commission requested specific comments on whether the reason for adopting the substantive rules in Chapters 24 and 26 continues to exist.

The commission finds that Chapter 24 should be repealed. Chapter 24 was adopted in March of 1995 to establish the commission's broad policy goals regarding telecommunications that would be considered, where applicable, in each contested case or rulemaking presented for decision.

The policy goals stated in §24.10 and §24.31 are found in the commission's enabling statute, the Public Utility Regulatory Act (PURA), §11.002 and §51.001. These policy goals are now also established in the commission's substantive rules in Chapter 26.

Section 24.32, Universal Service, was adopted prior to the commission adopting its substantive rules regarding universal service. The statutory requirements for universal service can be found in PURA, Chapter 56, Subchapter B, Universal Service Fund (USF). The commission's rules implementing the requirements for universal service were first adopted in February of 1998 in Chapter 23 and later reorganized under Chapter 26, Subchapter P, Texas Universal Service Fund.

Section 24.33 discusses the commission's policy regarding advanced telecommunications infrastructure. The statutory requirements for advanced telecommunications infrastructure are located in PURA, Chapter 58, Subchapter F, General Infrastructure Commitment, and PURA, Chapter 59, Subchapter B, Infrastructure Incentives. In addition, the commission has adopted the following substantive rules implementing its policy on advanced telecommunications infrastructure: §26.142, Integrated Services Digital Network (ISDN); §26.143, Provision of Advanced Services in Rural Areas; §26.276, Unbundling; and §26.283, Infrastructure Sharing.

Now that the commission's policy regarding universal service and advanced telecommunications infrastructure is established in PURA and its substantive rules, the need for the policy statements in Chapter 24 no longer exists. A rulemaking project will be initiated to publish the proposed repeal of Chapter 24 and providing interested persons the opportunity for comment.

The commission finds that the reasons for adopting Chapter 26 continue to exist. However, the commission also finds that certain sections need amendments and other sections are obsolete due to changes in the telecommunications industry or the passage of time. Separate rulemaking proceedings will be initiated to amend or repeal these sections as discussed further in this preamble.

Comments on the noticed review were due on October 14, 2002. The commission received written comments from Office of the Attorney General of Texas, Consumer Protection Division, Public Agency Representation Section (OAG). Reply comments were due on October 28, 2002. Southwestern Bell Telephone Company (SWBT) filed reply comments on October 29, 2002.

In its reply comments, SWBT raised significant new issues that were not in response to OAG's comments in this proceeding. Therefore, on November 15, 2002, the commission published notice in the Texas Register (27 TexReg 10816) extending the reply comment period until November 22, 2002. Comments filed during this extension period were limited to replies to issues raised in the initial comments of OAG and the reply comments of SWBT. On November 22, 2002, the commission received additional reply comments from AT&T Communications of Texas, LP (AT&T), MCImetro Access Transmission Services, LLC (MCI), and OAG.

General comments related to Chapters 24 and 26

OAG was generally supportive of the rules and discovered no rules for which the reason for adoption are no longer present; however, OAG stated that at least two of the rules need clarification, as discussed later in this preamble.

OAG and MCI asserted that SWBT's comments should be rejected on procedural grounds. OAG and MCI stated that: (1) SWBT did not file "reply" comments or even recognize the initial comments of OAG, but instead raised significant new issues to which interested persons have not had adequate notice to respond, notwithstanding the extension of time for reply comments noticed by the commission; and (2) SWBT's comments were late filed and did not claim any good cause for its late filing in violation of the commission's procedural rules.

The commission recognizes that SWBT's "reply" comments raised significant new issues, which is why the commission noticed an extended reply comment period for interested persons to file responses. The commission also recognizes that SWBT's comments did not comply in all aspects with the commission's procedural rules. If actual amendments or repeals of commission rules were subject to adoption in this proceeding, the commission would consider rejecting SWBT's late-filed comments. However, the purpose of this review is to determine if the reason for adopting the rules continues to exist and identify areas that may need additional review or modification; therefore, the commission will summarize and respond to the comments of SWBT. Since any actual changes to be made to the rules as a result of this review will be properly noticed pursuant to the requirements of APA, Chapter 2001, Subchapter B, Rulemaking, giving all interested persons adequate notice and the opportunity for comment, no person is harmed by the commission's consideration of SWBT's comments.

SWBT expressed concern that many of the existing rules do not apply equally to all providers of local exchange telecommunications services and some rules that are the product of the era of rate-of-return regulation are outmoded and continue to be applied only to incumbent local exchange companies (ILECs), including companies that rejected rate-of-return regulation and elected incentive regulation under the Public Utility Regulatory Act (PURA), Chapter 58. SWBT stated that competitive local exchange companies (CLECs) continue to receive preferential treatment under commission rules and that this non-parity treatment is not supportable under the law on the basis that only ILECs are subject to "carrier/provider of last resort obligations." SWBT urged that the same service quality rules, reporting requirements, and customer protection rules should apply to all certificated telecommunications utilities (CTUs) to the greatest extent permitted under law. SWBT asserted that not being bound by these rules gives CLECs a distinct and unwarranted advantage and preference.

AT&T stated that SWBT's comments have been carefully considered and rejected by the commission in other proceedings and that SWBT's statements provide no compelling reason for the commission to pay greater credence to SWBT's arguments now than in the past. OAG replied that SWBT raised no new issues as to why the rules should be repealed or amended due to a change in the reason for their adoption and that SWBT is simply rearguing issues that were addressed in the adoption of rules under Project Number 21423, Rulemaking to Amend Substantive Rules in Chapter 26, Subchapter B, Except for §§26.25, 26.29, and 26.32, Regarding Telephone Customer Service and Protection . AT&T commented that there are sound reasons why there is differing regulatory treatment for dominant certificated telecommunications utilities (DCTUs) than for non-dominant certificated telecommunications utilities (NCTUs). MCI stated that Texas's local telecommunications market is still in its infancy and that revision to the rules as suggested by SWBT would place CLECs at parity with ILECs when clearly from a market perspective such is not the case. AT&T stated that a disparity in regulations applicable to DCTUs as opposed to NCTUs is not anti-competitive or preferential, but is a proper recognition that DCTUs are, by definition, incumbent, dominant providers with years of monopoly market power and captive ratepayer funding at their disposal to pay for the development and implementation of systems necessary to comply with evolving regulatory requirements.

AT&T commented that the differential treatment of DCTUs and NCTUs is embodied in PURA, where the commission's regulatory authority over DCTUs is wide and deep and its authority over NCTUs is relatively narrow and only as specifically provided by PURA. MCI stated that PURA §51.001(e) expressly recognizes the tenuous status of the marketplace and that the commission is, therefore, required to take those actions "necessary to enhance competition by adjusting regulation to match the degree of competition in the marketplace to: (1) reduce the cost and burden of regulation; and (2) protect markets that are not competitive." AT&T commented that there are significant statutory differences in the regulatory treatment of DCTUs and NCTUs, i.e., in the areas of certification requirements, rate setting, commission authority to revoke certification, and obligations to serve, to name a few. AT&T submitted that these differences are in recognition of the different levels of market power exercised by DCTUs and NCTUs; that declaring SWBT's local exchange market "open" is not the same as declaring that SWBT no longer possesses monopoly market power that requires a different level of regulation or that competition is so irreversibly robust that SWBT can be relieved of its carrier of last resort obligations. AT&T stated that the regulatory conditions which gave rise to the rules still exist. MCI submitted that the rules SWBT alleges to be discriminatory are necessary to achieve the state's telecommunications policy as stated in PURA §51.001(b).

The commission believes the current market conditions justify the continued application of the rules. The rules provide strong customer protections while allowing the flexibility necessary to encourage increased competition. The commission's rules serve to enhance competition by adjusting regulation to match the degree of competition in the marketplace. The rules thereby reduce the cost and burden of regulation to the extent warranted by market conditions and protect markets that are not sufficiently competitive. In this way, the commission's rules implement the state's telecommunications policy as stated in PURA §51.001(b) to: "(1) promote diversity of telecommunications providers and interconnectivity; (2) encourage a fully competitive telecommunications marketplace; and (3) maintain a wide availability of high quality, interoperable, standards-based telecommunications services at affordable rates." The commission continues to monitor the market and will make appropriate changes to these rules when necessitated by future market conditions.

Comments on specific rule sections

Subchapter B, Customer Service and Protection

SWBT, in connection with its general comments, stated that the following rules in Subchapter B should be individually reconsidered at this time but provided no specific information: §26.22, Request for Service; §26.23, Refusal of Service; §26.24, Credit Requirements and Deposits; §26.27, Bill Payment and Adjustments; §26.28, Suspension or Disconnection of Service; §26.29, Prepaid Local Telephone Service (PLTS); and §26.31, Disclosures to Applicants and Customers.

See commission's response to SWBT's general comments.

Subchapter C, Quality of Service

SWBT, in connection with its general comments, stated that the following rules in Subchapter C should be individually reconsidered at this time but provided no specific information: §26.52, Emergency Operations; §26.53, Inspections and Tests; and §26.54, Service Objective and Performance Benchmarks.

See commission's response to SWBT's general comments.

Subchapter D, Records, Reports, and Other Required Information

SWBT, in connection with its general comments, stated that the following rules in Subchapter D should be individually reconsidered at this time but provided no specific information: §26.71, General Procedures, Requirements and Penalties; §26.72, Uniform System of Accounts; and §26.73, Financial and Operating Reports.

See commission's response to SWBT's general comments.

§26.78, State Agency Utility Account Information

OAG stated that this section provides for the submission of state agency account information to the General Services Commission (GSC) (now the Texas Building and Procurement Commission) or its designee. However, the information is now actually collected by the Office of the Attorney General, Consumer Protection Division, Public Agency Representation Section. OAG stated that the rule should be amended to indicate that OAG is the actual repository for submission of the information. MCI stated that it does not oppose OAG's request.

The commission agrees with the comments of OAG.

Subchapter F, Regulation of Telecommunications Service

§26.128, Telephone Directories

OAG commented that references to GSC should be changed to reflect that the Department of Information Resources (DIR) has now assumed responsibility with respect to preparation of the State of Texas Telephone Directory. MCI stated that it does not oppose OAG's request.

The commission agrees with the comments of OAG.

Additional results of the commission's rule review

In reviewing the rules, the commission determined that there are rule sections that need non-substantive amendments, e.g., to update references from rules in Chapter 23, now repealed, to the current rules in Chapter 26; to correct cross-references that have changed as a result of rule amendments; remove language which has become obsolete due to the passage of time; correction of typographical errors, etc. In addition, some rules may require more substantive amendments to clarify policy and procedures. Projects will be initiated to implement additional changes as needed. Interested persons may find a "Table of Rules in Chapter 26 in Need of Amendment or Repeal" in the commission's Central Records Division or through the commission's Interchange at www.puc.state.tx.us under Project Number 22067 or on the commission's website at http://www.puc.state.tx.us/rules/rulemake/22067/22067.cfm. This table provides a summary of amendments being considered for future rulemaking projects.

On September 17, 2002, Project Number 26647, Review of Texas Universal Service Fund (TUSF) Pursuant to Substantive Rule §26.403(d)(2)(A)(i) and §26.403(e)(2)(A)(i) was established for a more extensive review of the rules in Subchapter P, Texas Universal Service Fund. While the commission finds that the reason for adopting the rules in Subchapter P continues to exist and readopts these rules pursuant to APA §2001.039, Project Number 26647 will determine if any changes are needed for the rules in Subchapter P.

Rules in Chapter 26 in need of repeal

Section 26.161, Electronic Publishing, subsection (d), has a sunset provision that provides that this section does not apply to conduct occurring after February 8, 2000; therefore, this section is obsolete and may be repealed. In addition, §26.275, IntraLATA Equal Access, subsection (i), has a sunset provision that provides that this section expires on December 31, 2002. To ensure that all issues regarding §26.275 have been resolved, this section will be considered for repeal after the end of the fiscal year.

The commission readopts Chapter 26 pursuant to the Public Utility Regulatory Act (PURA), Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2003) which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and Texas Government Code §2001.039 which requires each state agency to review and readopt its rules every four years. In addition, pursuant to the same statutory authority, the commission finds that Chapter 24 should be repealed.

Cross Reference to Statutes: Texas Utilities Code Annotated, Title II, Public Utility Regulatory Act, Subtitles A and C; and Title IV, Chapter 162, Chapter 181, Subchapter E, Chapter 182 and Chapter 183.

CHAPTER 24

SUBCHAPTER A. GENERAL

§24.10. Purpose and Scope of Policy Statements.

SUBCHAPTER B. TELECOMMUNICATIONS UTILITIES

§24.31. General Policy Regarding Telecommunications Utilities.

§24.32. Universal Service.

§24.33. Advanced Telecommunications Infrastructure.

CHAPTER 26

SUBCHAPTER A. GENERAL PROVISIONS.

§26.1. Purpose and Scope of Rules.

§26.2. Cross-Reference Transition Provision.

§26.3. Severability Clause.

§26.4. Statement of Nondiscrimination.

§26.5. Definitions.

§26.6. Cost of Copies of Public Information.

§26.7. Local Exchange Company Assessment.

SUBCHAPTER B. CUSTOMER SERVICE AND PROTECTION.

§26.21. General Provisions of Customer Service and Protection Rules.

§26.22. Request for Service.

§26.23. Refusal of Service.

§26.24. Credit Requirements and Deposits.

§26.25. Issuance and Format of Bills.

§26.26. Foreign Language Requirements.

§26.27. Bill Payment and Adjustments.

§26.28. Suspension or Disconnection of Service.

§26.29. Prepaid Local Telephone Service (PLTS).

§26.30. Complaints.

§26.31. Disclosures to Applicants and Customers.

§26.32. Protection Against Unauthorized Billing Charges ("Cramming").

§26.34. Telephone Prepaid Calling Services.

§26.37. Texas No-Call List.

SUBCHAPTER C. QUALITY OF SERVICE.

§26.51. Continuity of Service.

§26.52. Emergency Operations.

§26.53. Inspections and Tests.

§26.54. Service Objectives and Performance Benchmarks.

§26.55. Monitoring of Service.

SUBCHAPTER D. RECORDS, REPORTS, AND OTHER REQUIRED INFORMATION.

§26.71. General Procedures, Requirements and Penalties.

§26.72. Uniform System of Accounts.

§26.73. Financial and Operating Reports.

§26.74. Reports on Sale of Property and Mergers.

§26.75. Reports on Sale of 50% or More of Stock.

§26.76. Gross Receipts Assessment Report.

§26.77. Payments, Compensation, and Other Expenditures.

§26.78. State Agency Utility Account Information.

§26.79. Equal Opportunity Reports.

§26.80. Annual Report on Historically Underutilized Businesses.

§26.81. Service Quality Reports.

§26.82. Construction Reports.

§26.84. Annual Reporting of Affiliate Transactions of DCTUs.

§26.85. Report of Workforce Diversity and Other Business Practices.

§26.87. Infrastructure Reports.

§26.88. Traffic Usage Studies.

§26.89. Information Regarding Rates and Services of Nondominant Carriers.

§26.98. Cost Allocation Manual.

SUBCHAPTER E. CERTIFICATION, LICENSING AND REGISTRATION.

§26.101. Certification Criteria.

§26.102. Registration of Pay Telephone Service Providers.

§26.103. Affiliate Guidelines for Certificates of Convenience and Necessity Holders.

§26.107. Registration of Interexchange Carriers, Prepaid Calling Services Companies, and Other Nondominant Telecommunications Carriers.

§26.109. Standards for Granting of Certificates of Operating Authority (COAs)

§26.111. Standards for Granting Service Provider Certificates of Operating Authority (SPCOAs).

§26.113. Amendment of Certificate of Operating Authority (COA) or Service Provider Certificate of Operating Authority (SPCOA).

§26.114. Suspension or Revocation of Certificates of Operating Authority (COAs) and Service Provider Certificates of Operating Authority (SPCOAs).

SUBCHAPTER F. REGULATION OF TELECOMMUNICATIONS SERVICE.

§26.121. Privacy Issues.

§26.122. Customer Proprietary Network Information.

§26.123. Caller Identification Services.

§26.124. Pay-Per-Call Information Services Call Blocking.

§26.125. Automatic Dial Announcing Devices (ADAD).

§26.126. Telephone Solicitation.

§26.127. Abbreviated Dialing Codes.

§26.128. Telephone Directories.

§26.129. Standards for Access to Provide Telecommunications Services at Tenant Request.

§26.130. Selection of Telecommunications Utilities.

SUBCHAPTER G. ADVANCED SERVICES.

§26.141. Distance Learning, Information Sharing Programs, and Interactive Multimedia Communications.

§26.142. Integrated Services Digital Network (ISDN).

§26.143. Provision of Advanced Services in Rural Areas.

SUBCHAPTER H. ELECTRONIC PUBLISHING.

§26.161. Electronic Publishing.

SUBCHAPTER I. ALTERNATIVE REGULATION.

§26.171. Small Incumbent Local Exchange Company Regulatory Flexibility.

§26.172. Voting Procedures for Partial Deregulation or Reversal of Partial Deregulation of Telephone Cooperatives.

§26.175. Reclassification of Telecommunications Services for Electing Incumbent Local Exchange Companies (ILECs).

SUBCHAPTER J. COSTS, RATES AND TARIFFS.

§26.201. Cost of Service.

§26.202. Adjustment for House Bill 11, Acts of 72nd Legislature, First Called Special Session 1991.

§26.203. Rate Policies for Small Local Exchange Companies (SLECs).

§26.205. Rates for Intrastate Access Services.

§26.206. Depreciation Rates.

§26.207. Form and Filing of Tariffs.

§26.208. General Tariff Procedures.

§26.209. New and Experimental Services.

§26.210. Promotional Rates for Local Exchange Company Services.

§26.211. Rate-Setting Flexibility for Services Subject to Significant Competitive Challenges.

§26.214. Long Run Incremental Cost (LRIC) Methodology for Services provided by Certain Incumbent Local Exchange Companies (ILECs).

§26.215. Long Run Incremental Cost Methodology for Dominant Certificated Telecommunications Utility (DCTU) Services.

§26.216. Educational Percentage Discount Rates (E-Rates).

§26.217. Administration of Extended Area Service (EAS) Requests.

§26.219. Administration of Expanded Local Calling Service Requests.

§26.221. Applications to Establish or Increase Expanded Local Calling Service Surcharges.

§26.223. Prohibition of Excessive COA/SPCOA Usage Sensitive Intrastate Switched Access Rates.

§26.224. Requirements Applicable to Basic Network Services for Chapter 58 Electing Companies.

§26.225. Requirements Applicable to Nonbasic Services For Chapter 58 Electing Companies.

§26.226. Requirements Applicable to Pricing Flexibility for Chapter 58 Electing Companies.

§26.227. Procedures Applicable to Nonbasic Services and Pricing Flexibility for Basic and Nonbasic Services for Chapter 58 Electing Companies.

§26.228. Requirements Applicable to Chapter 52 Companies.

§26.229. Requirements Applicable to Chapter 59 Electing Companies.

SUBCHAPTER L. WHOLESALE MARKET PROVISIONS.

§26.271. Expanded Interconnection.

§26.272. Interconnection.

§26.274. Imputation.

§26.275. IntraLATA Equal Access.

§26.276. Unbundling.

§26.283. Infrastructure Sharing.

SUBCHAPTER M. OPERATOR SERVICES.

§26.311. Information Relating to Operator Services.

§26.313. General Requirements Relating to Operator Services.

§26.315. Requirements for Dominant Certificated Telecommunications Utilities (DCTUs).

§26.317. Information to be Provided at the Telephone Set.

§26.319. Access to the Operator of a Local Exchange Company (LEC).

§26.321. 9-1-1 calls, "0-" calls, and End User Choice.

SUBCHAPTER N. PAY TELEPHONE SERVICE.

§26.341. General Information Relating to Pay Telephone Service (PTS).

§26.342. Pay Telephone Service Tariff Provisions.

§26.343. Responsibilities for Pay Telephone Service (PTS) of Certificated Telecommunications Utilities (CTUs) Holding Certificates of Convenience and Necessity (CCNs).

§26.344. Pay Telephone Service Requirements.

§26.345. Posting Requirements for Pay Telephone Service Providers.

§26.346. Rates and Charges for Pay Telephone Service.

§26.347. Fraud Protection for Pay Telephone Service.

SUBCHAPTER P. TEXAS UNIVERSAL SERVICE FUND.

§26.401. Texas Universal Service Fund (TUSF).

§26.403. Texas High Cost Universal Service Plan (THCUSP).

§26.404. Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan.

§26.406. Implementation of the Public Utility Regulatory Act §56.025.

§26.408. Additional Financial Assistance (AFA).

§26.410. Universal Service Fund Reimbursement for Certain IntraLATA Service.

§26.412. Lifeline Service and Link Up Service Programs.

§26.414. Telecommunications Relay Service (TRS).

§26.415. Specialized Telecommunications Assistance Program (STAP).

§26.417. Designation as Eligible Telecommunications Providers to Receive Texas Universal Service Funds (TUSF).

§26.418. Designation of Common Carriers as Eligible Telecommunications Carriers to Receive Federal Universal Service Funds.

§26.420. Administration of Texas Universal Service Fund (TUSF).

§26.421. Designation of Eligible Telecommunications Providers to Provide Service to Uncertificated Areas.

§26.422. Subsequent Petitions for Service in Uncertificated Areas.

§26.423. High Cost Universal Service Plan for Uncertificated Areas where an Eligible Telecommunications Provider (ETP) Volunteers to Provide Basic Local Telecommunications Service.

SUBCHAPTER Q. 9-1-1 ISSUES.

§26.431. Monitoring of Certain 911 Fees.

§26.433. Roles and Responsibilities of 9-1-1 Service Providers.

SUBCHAPTER R. PROVISIONS RELATING TO MUNICIPAL REGULATION AND RIGHTS-OF-WAY MANAGEMENT.

§26.461. Access Line Categories.

§26.463. Calculation and Reporting of a Municipality's Base Amount.

§26.465. Methodology for Counting Access Lines and Reporting Requirements for Certificated Telecommunications Providers.

§26.467. Rates, Allocation, Compensation, Adjustments and Reporting.

TRD-200301605

Rhonda G. Dempsey

Rules Coordinator

Public Utility Commission of Texas

Filed: March 7, 2003