H.B. No. 866

	AN ACT
	relating to the installation, removal, and replacement of certain
	gas pipelines; clarifying changes to related administrative
	penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 121.206(a) and (d), Utilities Code, are
	amended to read as follows:
	(a)  The railroad commission may assess an administrative
	penalty against a person who violates Section 121.201 or a safety
	standard or other rule prescribed or adopted under this subchapter
	[that section].
	(d)  The railroad commission by rule shall adopt guidelines
	to be used in determining the amount of a penalty under this
	subchapter.  The guidelines shall include a penalty calculation
	worksheet that specifies the typical penalty for certain
	violations, circumstances justifying enhancement of a penalty and
	the amount of the enhancement, and circumstances justifying a
	reduction in a penalty and the amount of the reduction.  The
	guidelines shall take into account:
	(1)  the person's history of previous violations of
	Section 121.201 or a safety standard or other rule prescribed or
	adopted under this subchapter [that section], including the number
	of previous violations;
	(2)  the seriousness of the violation and of any
	pollution resulting from the violation;
	(3)  any hazard to the health or safety of the public;
	(4)  the degree of culpability;
	(5)  the demonstrated good faith of the person charged;
	and
	(6)  any other factor the commission considers
	relevant.
	SECTION 2.  Subchapter E, Chapter 121, Utilities Code, is
	amended by adding Section 121.213 to read as follows:
	Sec. 121.213.  INSTALLATION, REMOVAL, AND REPLACEMENT OF
	CERTAIN PIPELINES. (a)  In this section, "distribution gas
	pipeline facility" means a pipeline facility that distributes
	natural gas directly to end-use customers.
	(b)  A distribution gas pipeline facility operator may not
	install as part of the operator's underground system a cast iron,
	wrought iron, or bare steel pipeline.
	(c)  The railroad commission by rule shall require the
	operator of a distribution gas pipeline facility system to:
	(1)  develop and implement a risk-based program for the
	removal or replacement of underground distribution gas pipeline
	facilities; and
	(2)  annually remove or replace at least eight percent
	of underground distribution gas pipeline facilities posing the
	greatest risk in the system and identified for replacement under
	the program.
	(d)  A distribution gas pipeline facility operator shall
	replace any known cast iron pipelines installed as part of the
	operator's underground system not later than December 31, 2021.
	(e)  Subsection (d) and this subsection expire September 1,
	2023.
	SECTION 3.  The Railroad Commission of Texas shall adopt any
	rules necessary to implement the changes in law made by this Act not
	later than December 31, 2019.
	SECTION 4.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 866 was passed by the House on May 3,
	2019, by the following vote:  Yeas 123, Nays 17, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 866 was passed by the Senate on May
	19, 2019, by the following vote:  Yeas 28, Nays 3.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor