Texas 2013 - 83rd Regular

Texas Senate Bill SB212 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Nichols, Huffman S.B. No. 212
2	2	(In the Senate - Filed March 4, 2013; March 12, 2013, read
3	3	first time and referred to Committee on Natural Resources;
4	4	April 24, 2013, reported favorably by the following vote: Yeas 9,
5	5	Nays 0; April 24, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the continuation, functions, and name of the Railroad
11	11	Commission of Texas; providing for the imposition of fees, the
12	12	repeal of provisions for the suspension of the collection of fees,
13	13	and the elimination of a fee.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. The heading to Chapter 81, Natural Resources
16	16	Code, is amended to read as follows:
17	17	CHAPTER 81. TEXAS ENERGY RESOURCES [RAILROAD] COMMISSION [OF
18	18	TEXAS]
19	19	SECTION 2. Section 81.001, Natural Resources Code, is
20	20	amended to read as follows:
21	21	Sec. 81.001. DEFINITIONS. In this chapter:
22	22	(1) "Commission" means the Texas Energy Resources
23	23	[Railroad] Commission [of Texas].
24	24	(2) "Commissioner" means any member of the Texas
25	25	Energy Resources [Railroad] Commission [of Texas].
26	26	SECTION 3. Subchapter A, Chapter 81, Natural Resources
27	27	Code, is amended by adding Section 81.003 to read as follows:
28	28	Sec. 81.003. TEXAS ENERGY RESOURCES COMMISSION. (a) The
29	29	Railroad Commission of Texas is renamed the Texas Energy Resources
30	30	Commission.
31	31	(b) A reference in law to:
32	32	(1) the Railroad Commission of Texas means the Texas
33	33	Energy Resources Commission; and
34	34	(2) a railroad commissioner or a member of the
35	35	Railroad Commission of Texas means a member of the Texas Energy
36	36	Resources Commission.
37	37	SECTION 4. Section 81.01001, Natural Resources Code, is
38	38	amended to read as follows:
39	39	Sec. 81.01001. SUNSET PROVISION. The Texas Energy
40	40	Resources [Railroad] Commission [of Texas] is subject to Chapter
41	41	325, Government Code (Texas Sunset Act). Unless continued in
42	42	existence as provided by that chapter, the commission is abolished
43	43	September 1, 2023 [2013].
44	44	SECTION 5. Subchapter B, Chapter 81, Natural Resources
45	45	Code, is amended by adding Sections 81.010015, 81.010045, and
46	46	81.010046 to read as follows:
47	47	Sec. 81.010015. ELECTION AND TERMS OF COMMISSIONERS;
48	48	VACANCIES. (a) The commission is composed of three commissioners
49	49	elected at the general election for state and county officers.
50	50	(b) Commissioners serve staggered terms of six years, with
51	51	the term of one commissioner expiring December 31 of each
52	52	even-numbered year.
53	53	(c) The governor shall appoint a person to fill a vacancy on
54	54	the commission until the next general election.
55	55	Sec. 81.010045. CERTAIN POLITICAL CONTRIBUTIONS
56	56	RESTRICTED. (a) In this section, "political committee" and
57	57	"political contribution" have the meanings assigned by Section
58	58	251.001, Election Code.
59	59	(b) A commissioner may not knowingly accept a political
60	60	contribution given or offered with the intention that it be used in
61	61	connection with a campaign for or the holding of any elective
62	62	office, including the office of commissioner, except during the
63	63	period:
64	64	(1) beginning 17 months before the date of the next
65	65	general election at which the commissioner's office is filled; and
66	66	(2) ending on the 30th day after the date of that
67	67	election.
68	68	(c) A person other than a commissioner may not knowingly
69	69	accept a political contribution given or offered with the intention
70	70	that it be used in connection with a campaign for the office of
71	71	commissioner, except:
72	72	(1) during the period:
73	73	(A) beginning 17 months before the date of the
74	74	next general election at which any commissioner's office is filled;
75	75	and
76	76	(B) ending on the 30th day after the date of that
77	77	election; or
78	78	(2) during the period beginning on the date a vacancy
79	79	in the office of commissioner occurs and ending on the date that
80	80	vacancy is filled.
81	81	(d) A commissioner may not knowingly accept a political
82	82	contribution, and shall refuse a political contribution that is
83	83	received, from a party in a contested case before the commission or
84	84	a political committee affiliated with such a party during the
85	85	period:
86	86	(1) beginning on the date notice of the hearing in the
87	87	contested case is given; and
88	88	(2) ending on:
89	89	(A) the 30th day after the date the decision in
90	90	the contested case is rendered; or
91	91	(B) if a request for rehearing is filed:
92	92	(i) the date the request is denied; or
93	93	(ii) the 30th day after the date the
94	94	decision after rehearing is rendered.
95	95	(e) A commissioner shall return a political contribution
96	96	that is received and refused under Subsection (d) not later than the
97	97	30th day after the date the commissioner received the contribution.
98	98	(f) The commission shall adopt all rules necessary to
99	99	implement Subsections (d) and (e), including rules that:
100	100	(1) direct the commission to maintain a list of the
101	101	contested cases before the commission and the parties to each case
102	102	in order to aid the commissioners in complying with those
103	103	subsections; and
104	104	(2) ensure that each notice of a hearing in a contested
105	105	case that is issued by the commission or a commissioner contains
106	106	information about the political contributions prohibited under
107	107	Subsection (d).
108	108	Sec. 81.010046. AUTOMATIC RESIGNATION. If a person who is a
109	109	member of the commission announces the person's candidacy, or in
110	110	fact becomes a candidate, in any general, special, or primary
111	111	election for any elective office other than the office of
112	112	commissioner at any time when the unexpired term of the office then
113	113	held by the person exceeds 18 months, that announcement or that
114	114	candidacy constitutes an automatic resignation of the office of
115	115	commissioner.
116	116	SECTION 6. Section 81.01005, Natural Resources Code, is
117	117	amended to read as follows:
118	118	Sec. 81.01005. NAME AND SEAL. (a) The commissioners are
119	119	known collectively as the "Texas Energy Resources [Railroad]
120	120	Commission [of Texas]."
121	121	(b) The seal of the commission contains a star of five
122	122	points with the words "Texas Energy Resources [Railroad] Commission
123	123	[of Texas]" engraved on it.
124	124	SECTION 7. The heading to Section 81.0521, Natural
125	125	Resources Code, is amended to read as follows:
126	126	Sec. 81.0521. FEE FOR APPLICATION FOR EXCEPTION TO
127	127	[RAILROAD] COMMISSION RULE.
128	128	SECTION 8. Subsections (c) and (d), Section 81.0531,
129	129	Natural Resources Code, are amended to read as follows:
130	130	(c) In determining the amount of the penalty, the commission
131	131	shall consider the [permittee's history of previous violations, the
132	132	seriousness of the violation, any hazard to the health or safety of
133	133	the public, and the demonstrated good faith of the person charged.
134	134	In determining the amount of the penalty for a violation of a
135	135	provision of this title or a rule, order, license, permit, or
136	136	certificate that relates to pipeline safety, the commission shall
137	137	consider the] guidelines adopted under Subsection (d).
138	138	(d) The commission [by rule] shall adopt guidelines to be
139	139	used in determining the amount of the penalty. The commission shall
140	140	provide an opportunity for public input on the guidelines [for a
141	141	violation of a provision of this title or a rule, order, license,
142	142	permit, or certificate that relates to pipeline safety]. The
143	143	guidelines must [shall] include a penalty calculation worksheet
144	144	that specifies the typical penalty for certain violations,
145	145	circumstances justifying enhancement of a penalty and the amount of
146	146	the enhancement, and circumstances justifying a reduction in a
147	147	penalty and the amount of the reduction. The guidelines must
148	148	provide for different penalties for different violations based on
149	149	the seriousness of the violation and any hazard to the health or
150	150	safety of the public resulting from the violation. The guidelines
151	151	must [shall] take into account:
152	152	(1) the permittee's history of previous violations,
153	153	including the number of previous violations;
154	154	(2) the seriousness of the violation and of any
155	155	pollution resulting from the violation;
156	156	(3) any hazard to the health or safety of the public;
157	157	(4) the degree of culpability;
158	158	(5) the demonstrated good faith of the person charged;
159	159	[and]
160	160	(6) the number of times the permittee's certificate of
161	161	compliance issued under Subchapter P, Chapter 91, has been
162	162	canceled; and
163	163	(7) any other factor the commission considers
164	164	relevant.
165	165	SECTION 9. Subchapter C, Chapter 81, Natural Resources
166	166	Code, is amended by adding Sections 81.0645, 81.065, and 81.066 to
167	167	read as follows:
168	168	Sec. 81.0645. EX PARTE COMMUNICATIONS. The commission by
169	169	rule shall develop a policy to prohibit an ex parte communication
170	170	between a hearings examiner and a commissioner or between a
171	171	hearings examiner and a member of the technical staff of the
172	172	commission who has participated in a hearing. The policy must
173	173	prohibit a commissioner from communicating with a hearings examiner
174	174	other than in a formal public hearing.
175	175	Sec. 81.065. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE
176	176	RESOLUTION POLICY. (a) The commission shall develop and implement
177	177	a policy to encourage the use of:
178	178	(1) negotiated rulemaking procedures under Chapter
179	179	2008, Government Code, for the adoption of commission rules; and
180	180	(2) appropriate alternative dispute resolution
181	181	procedures under Chapter 2009, Government Code, to assist in the
182	182	resolution of internal and external disputes under the commission's
183	183	jurisdiction.
184	184	(b) The commission's procedures relating to alternative
185	185	dispute resolution must conform, to the extent possible, to any
186	186	model guidelines issued by the State Office of Administrative
187	187	Hearings for the use of alternative dispute resolution by state
188	188	agencies.
189	189	(c) The commission shall:
190	190	(1) coordinate the implementation of the policy
191	191	adopted under Subsection (a);
192	192	(2) provide training as needed to implement the
193	193	procedures for negotiated rulemaking or alternative dispute
194	194	resolution; and
195	195	(3) collect information concerning the effectiveness
196	196	of those procedures.
197	197	Sec. 81.066. ENFORCEMENT POLICY. (a) The commission shall
198	198	adopt an enforcement policy to guide the employees of the
199	199	commission in evaluating violations of the provisions of this title
200	200	that pertain to safety or the prevention or control of pollution or
201	201	the provisions of a rule, order, license, permit, or certificate
202	202	that pertains to safety or the prevention or control of pollution
203	203	and is issued under this title.
204	204	(b) The enforcement policy adopted under this section must
205	205	include:
206	206	(1) a specific process for classifying violations
207	207	based on:
208	208	(A) the seriousness of any pollution resulting
209	209	from the violation; and
210	210	(B) any hazard to the health or safety of the
211	211	public; and
212	212	(2) standards to provide guidance to commission
213	213	employees on which violations may be dismissed once the permittee
214	214	comes into compliance and which violations must be forwarded for
215	215	enforcement.
216	216	(c) The standards adopted under Subsection (b)(2) must
217	217	require a commission employee to take into account the permittee's
218	218	history of previous violations in determining whether to dismiss a
219	219	violation once the permittee comes into compliance or forward the
220	220	violation for enforcement.
221	221	SECTION 10. Subsections (b) and (c), Section 81.069,
222	222	Natural Resources Code, are amended to read as follows:
223	223	(b) The commission shall provide to the Legislative Budget
224	224	Board and post on the commission's Internet website quarterly
225	225	reports [to the Legislative Budget Board] that include:
226	226	(1) the following information with respect to the
227	227	period since the last report was provided as well as cumulatively:
228	228	(A) the amount of money deposited in the oil and
229	229	gas regulation and cleanup fund;
230	230	(B) the amount of money spent from the fund for
231	231	the purposes described by Subsection (a);
232	232	(C) the balance of the fund; and
233	233	(D) the commission's progress in meeting the
234	234	quarterly performance goals established under Subsection (a) and,
235	235	if the number of orphaned wells plugged with state-managed funds,
236	236	abandoned sites investigated, assessed, or cleaned up with state
237	237	funds, or surface locations remediated is at least five percent
238	238	less than the number projected in the applicable goal established
239	239	under Subsection (a), an explanation of the reason for the
240	240	variance; and
241	241	(2) any additional information or data requested in
242	242	writing by the Legislative Budget Board.
243	243	(c) The commission shall submit to the legislature and make
244	244	available to the public, including by posting on the commission's
245	245	Internet website, annually, a report that reviews the extent to
246	246	which money provided under Section 81.067 has enabled the
247	247	commission to better protect the environment through oil-field
248	248	cleanup activities. The report must include:
249	249	(1) the performance goals established under
250	250	Subsection (a) for that state fiscal year, the commission's
251	251	progress in meeting those performance goals, and, if the number of
252	252	orphaned wells plugged with state-managed funds, abandoned sites
253	253	investigated, assessed, or cleaned up with state funds, or surface
254	254	locations remediated is at least five percent less than the number
255	255	projected in the applicable goal established under Subsection (a),
256	256	an explanation of the reason for the variance;
257	257	(2) the number of orphaned wells plugged with
258	258	state-managed funds, by region;
259	259	(3) the number of wells orphaned, by region;
260	260	(4) the number of inactive wells not currently in
261	261	compliance with commission rules, by region;
262	262	(5) the status of enforcement proceedings for all
263	263	wells in violation of commission rules and the period during which
264	264	the wells have been in violation, by region in which the wells are
265	265	located;
266	266	(6) the number of surface locations remediated, by
267	267	region;
268	268	(7) a detailed accounting of expenditures of money in
269	269	the fund for oil-field cleanup activities, including expenditures
270	270	for plugging of orphaned wells, investigation, assessment, and
271	271	cleaning up of abandoned sites, and remediation of surface
272	272	locations;
273	273	(8) the method by which the commission sets priorities
274	274	by which it determines the order in which orphaned wells are
275	275	plugged;
276	276	(9) a projection of the amount of money needed for the
277	277	next biennium for plugging orphaned wells, investigating,
278	278	assessing, and cleaning up abandoned sites, and remediating surface
279	279	locations; and
280	280	(10) the number of sites successfully remediated under
281	281	the voluntary cleanup program under Subchapter O, Chapter 91, by
282	282	region.
283	283	SECTION 11. Subchapter C, Chapter 81, Natural Resources
284	284	Code, is amended by adding Section 81.071 to read as follows:
285	285	Sec. 81.071. PIPELINE SAFETY AND REGULATORY FEES. (a) The
286	286	commission by rule may establish pipeline safety and regulatory
287	287	fees to be assessed for permits or registrations for pipelines
288	288	under the jurisdiction of the commission's pipeline safety and
289	289	regulatory program. The fees must be in amounts that in the
290	290	aggregate are sufficient to support all pipeline safety and
291	291	regulatory program costs, including:
292	292	(1) permitting or registration costs;
293	293	(2) administrative costs; and
294	294	(3) costs of employee salaries and benefits.
295	295	(b) The commission by rule must establish the method or
296	296	methods by which the fees will be calculated and assessed so that
297	297	fee amounts will reflect the time spent and costs incurred to
298	298	perform the regulatory work associated with permitting or
299	299	registering pipelines, the effects of required fees on operators of
300	300	all sizes, and other factors the commission determines are
301	301	important to the fair imposition of the fees. The commission may
302	302	base the fees on any factor the commission considers necessary to
303	303	efficiently and fairly recover the pipeline safety and regulatory
304	304	program's costs, including:
305	305	(1) the length of the pipeline;
306	306	(2) the number of new permits, permit renewals, or
307	307	permit amendments; or
308	308	(3) the number of pipeline systems.
309	309	(c) The commission by rule may establish a reasonable late
310	310	payment penalty for a fee charged under this section.
311	311	(d) The authority provided by this section is in addition to
312	312	the authority provided by Section 121.211, Utilities Code, and the
313	313	commission shall consider any fees assessed under that section in
314	314	establishing the fees to be assessed under this section.
315	315	SECTION 12. Subsection (d), Section 81.116, Natural
316	316	Resources Code, is amended to read as follows:
317	317	(d) [The comptroller shall suspend collection of the fee in
318	318	the manner provided by Section 81.067.] The exemptions and
319	319	reductions set out in Sections 202.052, 202.054, 202.056, 202.057,
320	320	202.059, and 202.060, Tax Code, do not affect the fee imposed by
321	321	this section.
322	322	SECTION 13. Subsection (d), Section 81.117, Natural
323	323	Resources Code, is amended to read as follows:
324	324	(d) [The comptroller shall suspend collection of the fee in
325	325	the manner provided by Section 81.067.] The exemptions and
326	326	reductions set out in Sections 201.053, 201.057, 201.058, and
327	327	202.060, Tax Code, do not affect the fee imposed by this section.
328	328	SECTION 14. Subsection (e), Section 91.1135, Natural
329	329	Resources Code, is transferred to Section 81.069, Natural Resources
330	330	Code, redesignated as Subsection (d), Section 81.069, Natural
331	331	Resources Code, and amended to read as follows:
332	332	(d) [(e)] The commission shall provide to the Legislative
333	333	Budget Board and post on the commission's Internet website
334	334	quarterly reports [to the committee and the Legislative Budget
335	335	Board] that include[:
336	336	[(1)] the following information with respect to the
337	337	period since the last report was provided as well as cumulatively:
338	338	(1) [(A)] the amount of money deposited in the oil and
339	339	gas regulation and [oil-field] cleanup fund;
340	340	(2) [(B)] the amount of money spent from the fund;
341	341	(3) [(C)] the balance of the fund;
342	342	(4) [(D)] the number of wells plugged with money from
343	343	the fund;
344	344	(5) [(E)] the number of sites remediated with money
345	345	from the fund; and
346	346	(6) [(F)] the number of wells abandoned[; and
347	347	[(2) any additional information or data requested in
348	348	writing by the committee].
349	349	SECTION 15. Subchapter B, Chapter 102, Natural Resources
350	350	Code, is amended by adding Section 102.0165 to read as follows:
351	351	Sec. 102.0165. LOCATION OF HEARING. (a) At the request of
352	352	an interested party and with the consent of each interested party,
353	353	the commission may hold the hearing on the application in person or
354	354	by telephone at a location in the vicinity of the proposed unit.
355	355	(b) The commission may contract with another state agency to
356	356	hold hearings on applications for pooling of interests into a unit
357	357	under the provisions of this chapter in person or by telephone at
358	358	field offices of that agency.
359	359	SECTION 16. Subsection (a), Section 117.012, Natural
360	360	Resources Code, is amended to read as follows:
361	361	(a) The commission shall adopt rules that include:
362	362	(1) safety standards for and practices applicable to
363	363	the intrastate transportation of hazardous liquids or carbon
364	364	dioxide by pipeline and intrastate hazardous liquid or carbon
365	365	dioxide pipeline facilities; and
366	366	(2) [, including] safety standards related to the
367	367	prevention of damage to interstate and intrastate hazardous liquid
368	368	or carbon dioxide pipeline facilities [such a facility] resulting
369	369	from the movement of earth by a person in the vicinity of such a
370	370	[the] facility, other than movement by tillage that does not exceed
371	371	a depth of 16 inches.
372	372	SECTION 17. Subsection (c), Section 52.092, Election Code,
373	373	is amended to read as follows:
374	374	(c) Statewide offices of the state government shall be
375	375	listed in the following order:
376	376	(1) governor;
377	377	(2) lieutenant governor;
378	378	(3) attorney general;
379	379	(4) comptroller of public accounts;
380	380	(5) commissioner of the General Land Office;
381	381	(6) commissioner of agriculture;
382	382	(7) energy resources [railroad] commissioner;
383	383	(8) chief justice, supreme court;
384	384	(9) justice, supreme court;
385	385	(10) presiding judge, court of criminal appeals;
386	386	(11) judge, court of criminal appeals.
387	387	SECTION 18. Section 756.126, Health and Safety Code, is
388	388	amended to read as follows:
389	389	Sec. 756.126. SAFETY STANDARDS AND BEST PRACTICES. The
390	390	Texas Energy Resources [Railroad] Commission [of Texas] shall adopt
391	391	and enforce safety standards and best practices, including those
392	392	described by 49 U.S.C. Section 6105 et seq., relating to the
393	393	prevention of damage by a person to a facility, including an
394	394	interstate or intrastate pipeline facility, under the jurisdiction
395	395	of the commission.
396	396	SECTION 19. Subsection (a), Section 121.201, Utilities
397	397	Code, is amended to read as follows:
398	398	(a) The railroad commission may:
399	399	(1) by rule prescribe or adopt safety standards for
400	400	the transportation of gas and for gas pipeline facilities,
401	401	including safety standards related to the prevention of damage to
402	402	an interstate or intrastate gas pipeline [such a] facility
403	403	resulting from the movement of earth by a person in the vicinity of
404	404	the facility, other than movement by tillage that does not exceed a
405	405	depth of 16 inches;
406	406	(2) by rule require an operator that does not file
407	407	operator organization information under Section 91.142, Natural
408	408	Resources Code, to provide the information to the commission in the
409	409	form of an application;
410	410	(3) by rule require record maintenance and reports;
411	411	(4) inspect records and facilities to determine
412	412	compliance with safety standards prescribed or adopted under
413	413	Subdivision (1);
414	414	(5) make certifications and reports from time to time;
415	415	(6) seek designation by the United States secretary of
416	416	transportation as an agent to conduct safety inspections of
417	417	interstate gas pipeline facilities located in this state; and
418	418	(7) by rule take any other requisite action in
419	419	accordance with 49 U.S.C. Section 60101 et seq., or a succeeding
420	420	law.
421	421	SECTION 20. The following provisions of the Natural
422	422	Resources Code are repealed:
423	423	(1) Subsection (b), Section 81.067;
424	424	(2) the heading to Section 91.1135;
425	425	(3) Subsections (a), (b), (c), (d), (f), and (g),
426	426	Section 91.1135; and
427	427	(4) Subchapter I, Chapter 113.
428	428	SECTION 21. (a) On the effective date of this Act:
429	429	(1) the alternative fuels research and education fund
430	430	is abolished;
431	431	(2) any money remaining in the alternative fuels
432	432	research and education fund is transferred to the undedicated
433	433	portion of the general revenue fund;
434	434	(3) any claim against the alternative fuels research
435	435	and education fund is transferred to the undedicated portion of the
436	436	general revenue fund; and
437	437	(4) any amount required to be deposited to the credit
438	438	of the alternative fuels research and education fund shall be
439	439	deposited to the credit of the undedicated portion of the general
440	440	revenue fund.
441	441	(b) Any money transferred from the alternative fuels
442	442	research and education fund to the undedicated portion of the
443	443	general revenue fund that was deposited in the alternative fuels
444	444	research and education fund as a gift, grant, or other form of
445	445	assistance under former Subchapter I, Chapter 113, Natural
446	446	Resources Code, and is encumbered by the specific terms of the gift,
447	447	grant, or other form of assistance may be spent only in accordance
448	448	with the terms of the gift, grant, or other form of assistance.
449	449	Subchapter I, Chapter 113, Natural Resources Code, is continued in
450	450	effect for the limited purpose of administering this subsection.
451	451	SECTION 22. On the effective date of this Act, the name of
452	452	the Railroad Commission of Texas is changed to the Texas Energy
453	453	Resources Commission. The change of the agency's name does not
454	454	affect:
455	455	(1) the agency's powers, duties, rights, or
456	456	obligations;
457	457	(2) the agency's personnel, equipment, data,
458	458	documents, facilities, contracts, items, other property,
459	459	appropriations, rules, or decisions;
460	460	(3) a proceeding of or involving the agency under the
461	461	name of the Railroad Commission of Texas; or
462	462	(4) the terms of the chairman or other members of the
463	463	governing body of the agency.
464	464	SECTION 23. This Act takes effect September 1, 2013.
465	465	* * * * *