(a) General requirements. No LNG container shall be placed into LNG service or an installation operated or used in LNG service until the requirements of this section, as applicable, are met and the facility is in compliance with all applicable rules in this chapter and statutes. LNG systems under the jurisdiction of DOT Safety regulations in 49 CFR Part 193 shall comply with Chapter 8 of this title (relating to Pipeline Safety Regulations) prior to implementation of service.
(b) Commercial installations with an aggregate water capacity of less than 15,540 gallons.
  (1) Within 30 calendar days following the completion of a commercial container installation, the licensee shall submit LNG Form 2501 to AFS stating:
    (A) the installation fully complies with the statutes and the rules in this chapter;
    (B) all necessary Commission licenses, certificates, and permits have been issued; and
    (C) the date the installation has been placed into LNG service.
  (2) The licensee shall pay a nonrefundable fee of $10 for each LNG container listed on the form.
    (A) AFS shall review the submitted information and shall notify the applicant in writing of any deficiencies.
    (B) A nonrefundable $20 fee shall be required for any resubmission.
  (3) LNG activities may commence prior to the submission of LNG Form 2501 if the facility is in compliance with the rules in this chapter.
(c) Aggregate water capacity of 15,540 gallons or more.
  (1) For stationary installations with an aggregate water capacity of 15,540 gallons or more, the licensee shall submit the following information to AFS at least 30 days prior to construction:
    (A) LNG Form 2500;
    (B) LNG Form 2500A with all applicable documents;
    (C) a plat drawing from the appropriate appraisal district identifying:
      (i) the facility's property boundaries;
      (ii) the names of all real property owners within 500 feet; and
      (iii) a 500-foot radius measured from the proposed container location on the site;
    (D) a site plan of sufficient scale that identifies:
      (i) fire protection which complies with §14.2131 of this title (relating to Fire Protection);
      (ii) the location, types, and size of all LNG containers already on site or proposed to be on site,
      (iii) the distances from the container(s) to property lines and buildings;
      (iv) the location of LNG dispensers and their distance from the proposed container (the nearest container if more than one), property lines, buildings on the same property, roadways, driveways, and railroad track centerlines;
      (v) any known potential hazards;
      (vi) the location of any sources of ignition;
      (vii) the location of other types of aboveground fuel containers, the type of fuel stored, and the distance to LNG containers and dispensing equipment;
      (viii) the location of other types of fuel dispensers, the type of fuel dispensed, and the distance to LNG containers and dispensing equipment;
    (E) a non-refundable fee of $50 for the initial application or a nonrefundable fee of $30 for any resubmission; and
    (F) if the facility is accessed by cargo tanks from a public highway under the jurisdiction of the Texas Department of Transportation, a statement or permit from the Texas Department of Transportation showing that the driveway is of proper design and construction to allow safe entry and egress of the LNG cargo tanks.
  (2) Site plans shall include a scale or legend indicating the distances or measurements described and printed copies of plans with a legend must be printed to the correct size for the legend or distance provided.
  (3) Plans and specifications submitted under paragraph (1)(D) of this subsection shall be sealed by a registered professional engineer licensed and in good standing to practice in the State of Texas and who is qualified in the area of the design and construction of LNG facilities.
  (4) If the applicant modifies the plans and specifications before tentative or interim approval is granted by AFS or the Commission, respectively, the plans and specifications shall be resealed by a registered professional engineer licensed to practice in the State of Texas and resubmitted to AFS.
  (5) Prior to the installation of any individual LNG container, AFS shall determine whether the proposed installation constitutes a danger to the public health, safety, and welfare. The applicant shall provide additional information if requested by AFS.
    (A) AFS may impose restrictions or conditions on the proposed LNG installation based on one or more of the following factors:
      (i) nature and density of the population or occupancy of structures within 500 feet of the proposed or existing container locations;
      (ii) nature of use of property located within 500 feet of the LNG installation;
      (iii) type of activities on the installation's premises;
      (iv) potential sources of ignition that might affect an LNG leak;
      (v) existence of dangerous or combustible materials in the area that might be affected by an emergency situation;
      (vi) any known potential hazards or other factors material to the public health, safety, and welfare.
    (B) The Commission does not consider public health, safety, and welfare to include such factors as the value of property adjacent to the installation, the esthetics of the proposed installation, or similar considerations.
  (6) AFS shall notify the applicant as follows:
    (A) If AFS administratively approves the installation, AFS shall notify the applicant in writing within 21 business days.
    (B) If the application is administratively denied:
      (i) AFS shall notify the applicant in writing, specifying the deficiencies, within 21 business days.
      (ii) To proceed with the application, the applicant shall modify the submission and resubmit it for approval or request a hearing on the matter in accordance with Chapter 1 of this title (relating to Practice and Procedure). The subject of the submission shall not be operated or used in LNG service in this state until approved by the Commission following a hearing.
      (iii) When AFS notifies an applicant of an incomplete LNG Form 2500 or LNG Form 2500A, the applicant has 120 calendar days from the date of the notification letter to resubmit the corrected application or the application will expire. After 120 days, the applicant shall file a new application to reactivate AFS review of the proposed installation.
      (iv) The applicant may request in writing an extension of the 120-day time period. The request shall be postmarked or physically delivered to AFS before the expiration date. AFS may extend the application period for up to an additional 90 days.
  (7) The licensee shall not commence construction until notice of approval is received from AFS.
    (A) If the subject installation is not completed within one year from the date AFS has granted construction approval, the application will expire.
    (B) Prior to the date of expiration, the applicant may request in writing an extension of time of up to 90 days to complete the installation.
    (C) If the applicant fails to request an extension of time within the time period prescribed in this paragraph, the applicant will be required to submit a new application before the installation can be completed.
  (8) The applicant shall submit to AFS written notice of completed construction and the Commission shall complete the field inspection as specified in §14.2042 of this title (relating to Physical Inspection of Stationary Installations).
  (9) The container may be placed into service after AFS has completed the inspection and determines the installation meets all safety requirements.
  (10) The proposed installation shall not be operated or used in LNG service until approved by AFS.
  (11) A licensee shall not be required to submit LNG Form 2500, LNG Form 2500A, or a site plan prior to the installation of pull-away devices, or emergency shutoff valves (ESV's), or when maintenance and improvements are being made to the piping system at an existing LNG installation.
  (12) If a licensee is replacing a container with a container of the same or less overall diameter and length or height, and is installing the replacement container in the identical location of the existing container, the licensee shall file LNG Form 2500.
(d) AFS may request LNG Form 2008, a Manufacturer's Data Report, or any other documentation or information pertinent to the installation in order to determine compliance with the rules in this chapter.
(e) For an installation that is a licensee outlet, the operating licensee shall comply with §14.2014 of this title (relating to Applications for License or Manufacturer Registration (New and Renewal)) within 30 days of installation.

Source Note: The provisions of this §14.2040 adopted to be effective May 26, 2003, 28 TexReg 4100; amended to be effective December 24, 2012, 37 TexReg 9921; amended to be effective February 15, 2021, 46 TexReg 1044; amended to be effective February 7, 2023, 48 TexReg 512