Texas 2017 - 85th Regular

Texas House Bill HB1818 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Gonzales of Williamson, et al. H.B. No. 1818
2		-	(Senate Sponsor - Taylor of Collin)
3		-	(In the Senate - Received from the House March 30, 2017;
4		-	April 6, 2017, read first time and referred to Committee on Natural
5		-	Resources & Economic Development; May 4, 2017, reported favorably
6		-	by the following vote: Yeas 9, Nays 2; May 4, 2017, sent to
7		-	printer.)
8		-	Click here to see the committee vote
	1	+	H.B. No. 1818
9	2
10	3
11		-	A BILL TO BE ENTITLED
12	4		AN ACT
13	5		relating to the continuation and functions of the Railroad
14	6		Commission of Texas; providing for the imposition of fees.
15	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	8		SECTION 1. Section 81.01001(a), Natural Resources Code, is
17	9		amended to read as follows:
18	10		(a) The Railroad Commission of Texas is subject to Chapter
19	11		325, Government Code (Texas Sunset Act). Unless continued in
20	12		existence as provided by that chapter, the commission is abolished
21	13		September 1, 2029 [2017].
22	14		SECTION 2. Subchapter C, Chapter 81, Natural Resources
23	15		Code, is amended by adding Sections 81.065 and 81.066 to read as
24	16		follows:
25	17		Sec. 81.065. ALTERNATIVE DISPUTE RESOLUTION POLICY. (a)
26	18		The commission shall develop and implement a policy to encourage
27	19		the use of appropriate alternative dispute resolution procedures
28	20		under Chapter 2009, Government Code, to assist in the resolution of
29	21		internal and external disputes under the commission's
30	22		jurisdiction.
31	23		(b) The commission's procedures relating to alternative
32	24		dispute resolution must conform, to the extent possible, to any
33	25		model guidelines issued by the State Office of Administrative
34	26		Hearings for the use of alternative dispute resolution by state
35	27		agencies.
36	28		(c) The commission shall:
37	29		(1) coordinate the implementation of the policy
38	30		adopted under Subsection (a);
39	31		(2) provide training as needed to implement the
40	32		procedures for alternative dispute resolution; and
41	33		(3) collect information concerning the effectiveness
42	34		of those procedures.
43	35		Sec. 81.066. OIL AND GAS DIVISION MONITORING AND
44	36		ENFORCEMENT STRATEGIC PLAN. (a) The oil and gas division of the
45	37		commission shall develop and publish an annual plan for each state
46	38		fiscal year to use the oil and gas monitoring and enforcement
47	39		resources of the commission strategically to ensure public safety
48	40		and protect the environment.
49	41		(b) The commission shall seek input from stakeholders when
50	42		developing each annual plan.
51	43		(c) The commission shall collect and maintain information
52	44		that accurately shows the commission's oil and gas monitoring and
53	45		enforcement activities. Each annual plan must include a report of
54	46		the information collected by the commission that shows the
55	47		commission's oil and gas monitoring and enforcement activities over
56	48		time.
57	49		(d) The information described by Subsection (c) must
58	50		include data regarding violations of statutes or commission rules
59	51		that relate to oil and gas, including:
60	52		(1) the number, type, and severity of:
61	53		(A) violations the commission found to have
62	54		occurred;
63	55		(B) violations the commission referred for
64	56		enforcement to the section of the commission responsible for
65	57		enforcement; and
66	58		(C) violations for which the commission imposed a
67	59		penalty or took other enforcement action;
68	60		(2) the number of major violations for which the
69	61		commission imposed a penalty or took other enforcement action; and
70	62		(3) the number of repeat major violations, categorized
71	63		by individual oil or gas lease, if applicable.
72	64		(e) The commission shall publish each annual plan on the
73	65		commission's Internet website not later than July 1 of the year
74	66		preceding the state fiscal year in which the commission implements
75	67		the plan.
76	68		SECTION 3. Section 81.067(c), Natural Resources Code, is
77	69		amended to conform to the repeal of Section 81.112, Natural
78	70		Resources Code, by Chapter 470 (S.B. 757), Acts of the 84th
79	71		Legislature, Regular Session, 2015, and is further amended to read
80	72		as follows:
81	73		(c) The fund consists of:
82	74		(1) proceeds from bonds and other financial security
83	75		required by this chapter and benefits under well-specific plugging
84	76		insurance policies described by Section 91.104(c) that are paid to
85	77		the state as contingent beneficiary of the policies, subject to the
86	78		refund provisions of Section 91.1091, if applicable;
87	79		(2) private contributions, including contributions
88	80		made under Section 89.084;
89	81		(3) expenses collected under Section 89.083;
90	82		(4) fees imposed under Section 85.2021;
91	83		(5) costs recovered under Section 91.457 or 91.459;
92	84		(6) proceeds collected under Sections 89.085 and
93	85		91.115;
94	86		(7) interest earned on the funds deposited in the
95	87		fund;
96	88		(8) oil and gas waste hauler permit application fees
97	89		collected under Section 29.015, Water Code;
98	90		(9) costs recovered under Section 91.113(f);
99	91		(10) hazardous oil and gas waste generation fees
100	92		collected under Section 91.605;
101	93		(11) oil-field cleanup regulatory fees on oil
102	94		collected under Section 81.116;
103	95		(12) oil-field cleanup regulatory fees on gas
104	96		collected under Section 81.117;
105	97		(13) fees for a reissued certificate collected under
106	98		Section 91.707;
107	99		(14) fees collected under Section 91.1013;
108	100		(15) fees collected under Section 89.088;
109	101		(16) fees collected under Section 91.142;
110	102		(17) fees collected under Section 91.654;
111	103		(18) costs recovered under Sections 91.656 and 91.657;
112	104		(19) fees collected under Section 81.0521;
113	105		(20) fees collected under Sections 89.024 and 89.026;
114	106		(21) legislative appropriations;
115	107		(22) any surcharges collected under Section 81.070;
116	108		(23) fees collected under Section 91.0115;
117	109		(24) [money deposited to the credit of the fund under
118	110		Section 81.112;
119	111		[(25)] fees collected under Subchapter E, Chapter 121,
120	112		Utilities Code; [and]
121	113		(25) [(26)] fees collected under Section 27.0321,
122	114		Water Code; and
123	115		(26) fees collected under Section 81.071.
124	116		SECTION 4. Section 81.068, Natural Resources Code, is
125	117		amended to read as follows:
126	118		Sec. 81.068. PURPOSES OF OIL AND GAS REGULATION AND CLEANUP
127	119		FUND. Money in the oil and gas regulation and cleanup fund may be
128	120		used by the commission or its employees or agents for any purpose
129	121		related to the regulation of oil and gas development, including oil
130	122		and gas monitoring and inspections, oil and gas remediation, and
131	123		oil and gas well plugging, the study and evaluation of electronic
132	124		access to geologic data and surface casing depths necessary to
133	125		protect usable groundwater in this state, [alternative fuels
134	126		programs under Section 81.0681,] the administration of pipeline
135	127		safety and regulatory programs, public information and services
136	128		related to those activities, and administrative costs and state
137	129		benefits for personnel involved in those activities.
138	130		SECTION 5. Subchapter C, Chapter 81, Natural Resources
139	131		Code, is amended by adding Section 81.071 to read as follows:
140	132		Sec. 81.071. PIPELINE SAFETY AND REGULATORY FEES. (a) The
141	133		commission by rule may establish pipeline safety and regulatory
142	134		fees to be assessed for permits or registrations for pipelines
143	135		under the jurisdiction of the commission's pipeline safety and
144	136		regulatory program.
145	137		(b) The commission may establish fees to be assessed
146	138		annually against permit or registration holders, as well as
147	139		individual fees for new permits or registrations, permit or
148	140		registration renewals, and permit or registration amendments.
149	141		(c) The fees must be in amounts that in the aggregate are
150	142		sufficient to support all pipeline safety and regulatory program
151	143		costs, including:
152	144		(1) permitting or registration costs;
153	145		(2) administrative costs; and
154	146		(3) costs of employee salaries and benefits.
155	147		(d) The commission by rule must establish the method or
156	148		methods by which the fees will be calculated and assessed so that
157	149		fee amounts will reflect the time spent and costs incurred to
158	150		perform the regulatory work associated with permitting or
159	151		registering pipelines, the effects of required fees on operators of
160	152		all sizes, and other factors the commission determines are
161	153		important to the fair imposition of the fees. The commission may
162	154		base the fees on any factor the commission considers necessary to
163	155		efficiently and fairly recover the pipeline safety and regulatory
164	156		program's costs, including:
165	157		(1) the length of the pipeline;
166	158		(2) the number of new permits or registrations, permit
167	159		or registration renewals, or permit or registration amendments; or
168	160		(3) the number of pipeline systems.
169	161		(e) The commission by rule may establish a reasonable late
170	162		payment penalty for a fee charged under this section.
171	163		(f) The authority provided by this section is in addition to
172	164		the authority provided by Section 121.211, Utilities Code, and the
173	165		commission shall consider any fees assessed under that section in
174	166		establishing the fees to be assessed under this section.
175	167		(g) A fee collected under this section shall be deposited to
176	168		the credit of the oil and gas regulation and cleanup fund as
177	169		provided by Section 81.067.
178	170		SECTION 6. Subchapter C, Chapter 81, Natural Resources
179	171		Code, is amended by adding Section 81.072 to read as follows:
180	172		Sec. 81.072. VERIFICATION BY CONTRACTORS. (a) In this
181	173		section, "E-verify program" has the meaning assigned by Section
182	174		673.001, Government Code.
183	175		(b) The commission may not award a contract for goods or
184	176		services in this state to a contractor unless the contractor and any
185	177		subcontractor register with and participate in the E-verify program
186	178		to verify employee information. The contractor and any
187	179		subcontractor shall continue to participate in the program during
188	180		the term of the contract.
189	181		(c) The commission shall develop procedures for the
190	182		administration of the E-verify program under this section.
191	183		SECTION 7. Section 117.012, Natural Resources Code, is
192	184		amended by amending Subsection (a) and adding Subsection (a-1) to
193	185		read as follows:
194	186		(a) The commission shall adopt rules that include:
195	187		(1) safety standards applicable to the intrastate
196	188		transportation of hazardous liquids or carbon dioxide by pipeline
197	189		and intrastate hazardous liquid or carbon dioxide pipeline
198	190		facilities; and
199	191		(2) [, including] safety standards related to the
200	192		prevention of damage to interstate and intrastate hazardous liquid
201	193		or carbon dioxide pipeline facilities [such a facility] resulting
202	194		from the movement of earth by a person in the vicinity of such a
203	195		[the] facility, other than movement by tillage that does not exceed
204	196		a depth of 16 inches.
205	197		(a-1) Rules adopted under Subsection (a) [this subsection]
206	198		that apply to the intrastate transportation of hazardous liquids
207	199		and carbon dioxide by gathering pipelines in rural locations and
208	200		intrastate hazardous liquid and carbon dioxide gathering pipeline
209	201		facilities in rural locations must be based only on the risks the
210	202		transportation and the facilities present to the public safety,
211	203		except that the commission shall revise the rules as necessary to
212	204		comply with Subsection (c) and to maintain the maximum degree of
213	205		federal delegation permissible under 49 U.S.C. Section 60101 et
214	206		seq., or a succeeding law, if the federal government adopts rules
215	207		that include safety standards applicable to the transportation and
216	208		facilities.
217	209		SECTION 8. Section 756.126, Health and Safety Code, is
218	210		amended to read as follows:
219	211		Sec. 756.126. SAFETY STANDARDS AND BEST PRACTICES. The
220	212		Railroad Commission of Texas shall adopt and enforce rules
221	213		prescribing safety standards and best practices, including those
222	214		described by 49 U.S.C. Section 6105 et seq., relating to the
223	215		prevention of damage by a person to a facility, including an
224	216		interstate or intrastate pipeline facility, under the jurisdiction
225	217		of the commission.
226	218		SECTION 9. Section 121.201(a), Utilities Code, is amended
227	219		to read as follows:
228	220		(a) The railroad commission may:
229	221		(1) by rule prescribe or adopt safety standards for
230	222		the transportation of gas and for gas pipeline facilities,
231	223		including safety standards related to the prevention of damage to
232	224		an interstate or intrastate gas pipeline [such a] facility
233	225		resulting from the movement of earth by a person in the vicinity of
234	226		the facility, other than movement by tillage that does not exceed a
235	227		depth of 16 inches;
236	228		(2) by rule require an operator that does not file
237	229		operator organization information under Section 91.142, Natural
238	230		Resources Code, to provide the information to the commission in the
239	231		form of an application;
240	232		(3) by rule require record maintenance and reports;
241	233		(4) inspect records and facilities to determine
242	234		compliance with safety standards prescribed or adopted under
243	235		Subdivision (1);
244	236		(5) make certifications and reports from time to time;
245	237		(6) seek designation by the United States secretary of
246	238		transportation as an agent to conduct safety inspections of
247	239		interstate gas pipeline facilities located in this state;
248	240		(7) by rule take any other requisite action in
249	241		accordance with 49 U.S.C. Section 60101 et seq. and its subsequent
250	242		amendments or a succeeding law; and
251	243		(8) by rule establish safety standards and practices
252	244		for gathering facilities and transportation activities in Class 1
253	245		locations, as defined by 49 C.F.R. Section 192.5:
254	246		(A) based only on the risks the facilities and
255	247		activities present to the public safety, to the extent consistent
256	248		with federal law; or
257	249		(B) as necessary to maintain the maximum degree
258	250		of federal delegation permissible under 49 U.S.C. Section 60101 et
259	251		seq., or a succeeding law, if the federal government adopts safety
260	252		standards and practices for gathering facilities and
261	253		transportation activities in Class 1 locations, as defined by 49
262	254		C.F.R. Section 192.5.
263	255		SECTION 10. Sections 81.0681 and 91.1135, Natural Resources
264	256		Code, are repealed.
265	257		SECTION 11. The first state fiscal year for which the
266	258		Railroad Commission of Texas is required by Section 81.066, Natural
267	259		Resources Code, as added by this Act, to develop and publish the
268	260		annual plan required by that section is the state fiscal year
269	261		beginning September 1, 2018. The commission shall publish the plan
270	262		not later than July 1, 2018.
271	263		SECTION 12. To the extent of any conflict, this Act prevails
272	264		over another Act of the 85th Legislature, Regular Session, 2017,
273	265		relating to nonsubstantive additions to and corrections in enacted
274	266		codes.
275	267		SECTION 13. This Act takes effect September 1, 2017.
276		-	* * * * *
	268	+	______________________________ ______________________________
	269	+	President of the Senate Speaker of the House
	270	+	I certify that H.B. No. 1818 was passed by the House on March
	271	+	29, 2017, by the following vote: Yeas 123, Nays 19, 3 present, not
	272	+	voting.
	273	+	______________________________
	274	+	Chief Clerk of the House
	275	+	I certify that H.B. No. 1818 was passed by the Senate on May
	276	+	9, 2017, by the following vote: Yeas 29, Nays 2.
	277	+	______________________________
	278	+	Secretary of the Senate
	279	+	APPROVED: _____________________
	280	+	Date
	281	+	_____________________
	282	+	Governor