By: Gonzales of Williamson, Raymond, Darby, H.B. No. 1818       Thompson of Harris, Flynn     A BILL TO BE ENTITLED   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.