H.B. No. 1818
AN ACT
relating to the continuation and functions of the Railroad
Commission of Texas; providing for the imposition of fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 81.01001(a), Natural Resources Code, is
amended to read as follows:
(a) The Railroad Commission of Texas is subject to Chapter
325, Government Code (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the commission is abolished
September 1, 2029 [2017].
SECTION 2. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Sections 81.065 and 81.066 to read as
follows:
Sec. 81.065. ALTERNATIVE DISPUTE RESOLUTION POLICY. (a)
The commission shall develop and implement a policy to encourage
the use of appropriate alternative dispute resolution procedures
under Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for alternative dispute resolution; and
(3) collect information concerning the effectiveness
of those procedures.
Sec. 81.066. OIL AND GAS DIVISION MONITORING AND
ENFORCEMENT STRATEGIC PLAN. (a) The oil and gas division of the
commission shall develop and publish an annual plan for each state
fiscal year to use the oil and gas monitoring and enforcement
resources of the commission strategically to ensure public safety
and protect the environment.
(b) The commission shall seek input from stakeholders when
developing each annual plan.
(c) The commission shall collect and maintain information
that accurately shows the commission's oil and gas monitoring and
enforcement activities. Each annual plan must include a report of
the information collected by the commission that shows the
commission's oil and gas monitoring and enforcement activities over
time.
(d) The information described by Subsection (c) must
include data regarding violations of statutes or commission rules
that relate to oil and gas, including:
(1) the number, type, and severity of:
(A) violations the commission found to have
occurred;
(B) violations the commission referred for
enforcement to the section of the commission responsible for
enforcement; and
(C) violations for which the commission imposed a
penalty or took other enforcement action;
(2) the number of major violations for which the
commission imposed a penalty or took other enforcement action; and
(3) the number of repeat major violations, categorized
by individual oil or gas lease, if applicable.
(e) The commission shall publish each annual plan on the
commission's Internet website not later than July 1 of the year
preceding the state fiscal year in which the commission implements
the plan.
SECTION 3. Section 81.067(c), Natural Resources Code, is
amended to conform to the repeal of Section 81.112, Natural
Resources Code, by Chapter 470 (S.B. 757), Acts of the 84th
Legislature, Regular Session, 2015, and is further amended to read
as follows:
(c) The fund consists of:
(1) proceeds from bonds and other financial security
required by this chapter and benefits under well-specific plugging
insurance policies described by Section 91.104(c) that are paid to
the state as contingent beneficiary of the policies, subject to the
refund provisions of Section 91.1091, if applicable;
(2) private contributions, including contributions
made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) fees imposed under Section 85.2021;
(5) costs recovered under Section 91.457 or 91.459;
(6) proceeds collected under Sections 89.085 and
91.115;
(7) interest earned on the funds deposited in the
fund;
(8) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(9) costs recovered under Section 91.113(f);
(10) hazardous oil and gas waste generation fees
collected under Section 91.605;
(11) oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(12) oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(13) fees for a reissued certificate collected under
Section 91.707;
(14) fees collected under Section 91.1013;
(15) fees collected under Section 89.088;
(16) fees collected under Section 91.142;
(17) fees collected under Section 91.654;
(18) costs recovered under Sections 91.656 and 91.657;
(19) fees collected under Section 81.0521;
(20) fees collected under Sections 89.024 and 89.026;
(21) legislative appropriations;
(22) any surcharges collected under Section 81.070;
(23) fees collected under Section 91.0115;
(24) [money deposited to the credit of the fund under
Section 81.112;
[(25)] fees collected under Subchapter E, Chapter 121,
Utilities Code; [and]
(25) [(26)] fees collected under Section 27.0321,
Water Code; and
(26) fees collected under Section 81.071.
SECTION 4. Section 81.068, Natural Resources Code, is
amended to read as follows:
Sec. 81.068. PURPOSES OF OIL AND GAS REGULATION AND CLEANUP
FUND. Money in the oil and gas regulation and cleanup fund may be
used by the commission or its employees or agents for any purpose
related to the regulation of oil and gas development, including oil
and gas monitoring and inspections, oil and gas remediation, and
oil and gas well plugging, the study and evaluation of electronic
access to geologic data and surface casing depths necessary to
protect usable groundwater in this state, [alternative fuels
programs under Section 81.0681,] the administration of pipeline
safety and regulatory programs, public information and services
related to those activities, and administrative costs and state
benefits for personnel involved in those activities.
SECTION 5. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Section 81.071 to read as follows:
Sec. 81.071. PIPELINE SAFETY AND REGULATORY FEES. (a) The
commission by rule may establish pipeline safety and regulatory
fees to be assessed for permits or registrations for pipelines
under the jurisdiction of the commission's pipeline safety and
regulatory program.
(b) The commission may establish fees to be assessed
annually against permit or registration holders, as well as
individual fees for new permits or registrations, permit or
registration renewals, and permit or registration amendments.
(c) The fees must be in amounts that in the aggregate are
sufficient to support all pipeline safety and regulatory program
costs, including:
(1) permitting or registration costs;
(2) administrative costs; and
(3) costs of employee salaries and benefits.
(d) The commission by rule must establish the method or
methods by which the fees will be calculated and assessed so that
fee amounts will reflect the time spent and costs incurred to
perform the regulatory work associated with permitting or
registering pipelines, the effects of required fees on operators of
all sizes, and other factors the commission determines are
important to the fair imposition of the fees. The commission may
base the fees on any factor the commission considers necessary to
efficiently and fairly recover the pipeline safety and regulatory
program's costs, including:
(1) the length of the pipeline;
(2) the number of new permits or registrations, permit
or registration renewals, or permit or registration amendments; or
(3) the number of pipeline systems.
(e) The commission by rule may establish a reasonable late
payment penalty for a fee charged under this section.
(f) The authority provided by this section is in addition to
the authority provided by Section 121.211, Utilities Code, and the
commission shall consider any fees assessed under that section in
establishing the fees to be assessed under this section.
(g) A fee collected under this section shall be deposited to
the credit of the oil and gas regulation and cleanup fund as
provided by Section 81.067.
SECTION 6. Subchapter C, Chapter 81, Natural Resources
Code, is amended by adding Section 81.072 to read as follows:
Sec. 81.072. VERIFICATION BY CONTRACTORS. (a) In this
section, "E-verify program" has the meaning assigned by Section
673.001, Government Code.
(b) The commission may not award a contract for goods or
services in this state to a contractor unless the contractor and any
subcontractor register with and participate in the E-verify program
to verify employee information. The contractor and any
subcontractor shall continue to participate in the program during
the term of the contract.
(c) The commission shall develop procedures for the
administration of the E-verify program under this section.
SECTION 7. Section 117.012, Natural Resources Code, is
amended by amending Subsection (a) and adding Subsection (a-1) to
read as follows:
(a) The commission shall adopt rules that include:
(1) safety standards applicable to the intrastate
transportation of hazardous liquids or carbon dioxide by pipeline
and intrastate hazardous liquid or carbon dioxide pipeline
facilities; and
(2) [, including] safety standards related to the
prevention of damage to interstate and intrastate hazardous liquid
or carbon dioxide pipeline facilities [such a facility] resulting
from the movement of earth by a person in the vicinity of such a
[the] facility, other than movement by tillage that does not exceed
a depth of 16 inches.
(a-1) Rules adopted under Subsection (a) [this subsection]
that apply to the intrastate transportation of hazardous liquids
and carbon dioxide by gathering pipelines in rural locations and
intrastate hazardous liquid and carbon dioxide gathering pipeline
facilities in rural locations must be based only on the risks the
transportation and the facilities present to the public safety,
except that the commission shall revise the rules as necessary to
comply with Subsection (c) and to maintain the maximum degree of
federal delegation permissible under 49 U.S.C. Section 60101 et
seq., or a succeeding law, if the federal government adopts rules
that include safety standards applicable to the transportation and
facilities.
SECTION 8. Section 756.126, Health and Safety Code, is
amended to read as follows:
Sec. 756.126. SAFETY STANDARDS AND BEST PRACTICES. The
Railroad Commission of Texas shall adopt and enforce rules
prescribing safety standards and best practices, including those
described by 49 U.S.C. Section 6105 et seq., relating to the
prevention of damage by a person to a facility, including an
interstate or intrastate pipeline facility, under the jurisdiction
of the commission.
SECTION 9. Section 121.201(a), Utilities Code, is amended
to read as follows:
(a) The railroad commission may:
(1) by rule prescribe or adopt safety standards for
the transportation of gas and for gas pipeline facilities,
including safety standards related to the prevention of damage to
an interstate or intrastate gas pipeline [such a] facility
resulting from the movement of earth by a person in the vicinity of
the facility, other than movement by tillage that does not exceed a
depth of 16 inches;
(2) by rule require an operator that does not file
operator organization information under Section 91.142, Natural
Resources Code, to provide the information to the commission in the
form of an application;
(3) by rule require record maintenance and reports;
(4) inspect records and facilities to determine
compliance with safety standards prescribed or adopted under
Subdivision (1);
(5) make certifications and reports from time to time;
(6) seek designation by the United States secretary of
transportation as an agent to conduct safety inspections of
interstate gas pipeline facilities located in this state;
(7) by rule take any other requisite action in
accordance with 49 U.S.C. Section 60101 et seq. and its subsequent
amendments or a succeeding law; and
(8) by rule establish safety standards and practices
for gathering facilities and transportation activities in Class 1
locations, as defined by 49 C.F.R. Section 192.5:
(A) based only on the risks the facilities and
activities present to the public safety, to the extent consistent
with federal law; or
(B) as necessary to maintain the maximum degree
of federal delegation permissible under 49 U.S.C. Section 60101 et
seq., or a succeeding law, if the federal government adopts safety
standards and practices for gathering facilities and
transportation activities in Class 1 locations, as defined by 49
C.F.R. Section 192.5.
SECTION 10. Sections 81.0681 and 91.1135, Natural Resources
Code, are repealed.
SECTION 11. The first state fiscal year for which the
Railroad Commission of Texas is required by Section 81.066, Natural
Resources Code, as added by this Act, to develop and publish the
annual plan required by that section is the state fiscal year
beginning September 1, 2018. The commission shall publish the plan
not later than July 1, 2018.
SECTION 12. To the extent of any conflict, this Act prevails
over another Act of the 85th Legislature, Regular Session, 2017,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 13. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1818 was passed by the House on March
29, 2017, by the following vote: Yeas 123, Nays 19, 3 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1818 was passed by the Senate on May
9, 2017, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor