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