Bill Text: TX HB1818 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to the continuation and functions of the Railroad Commission of Texas; providing for the imposition of fees.
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Passed) 2017-05-22 - Effective on 9/1/17 [HB1818 Detail]
Download: Texas-2017-HB1818-Enrolled.html
H.B. No. 1818 |
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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 [ |
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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) [ |
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Utilities Code; [ |
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(25) [ |
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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, [ |
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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) [ |
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prevention of damage to interstate and intrastate hazardous liquid | ||
or carbon dioxide pipeline facilities [ |
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from the movement of earth by a person in the vicinity of such a | ||
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a depth of 16 inches. | ||
(a-1) Rules adopted under Subsection (a) [ |
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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 [ |
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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 |