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HB 2891

AN ACT relating to the imposition of administrative, civil, and criminal

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Increases penalties for violations related to the Texas Railroad Commission's rules and regulations, specifically raising maximum daily fines from $5,000-$10,000 to $25,000 for various infractions involving pipeline safety, environmental compliance, and permit violations. The legislation provides a more structured approach to penalty assessment by requiring the commission to develop detailed guidelines that consider factors like previous violation history, seriousness of the violation, potential public health hazards, economic benefits gained through the violation, and the need for future deterrence. These changes will apply to violations committed on or after September 1, 2025, potentially creating stronger financial consequences for businesses and individuals who fail to comply with state regulations.

Subject Areas

Bill Text

relating to the imposition of administrative, civil, and criminal
penalties for violating certain statutes under the jurisdiction of,
rules or orders adopted by, or licenses, permits, or certificates
issued by the Railroad Commission of Texas; increasing criminal
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 81.0531(b), (c), and (d), Natural
Resources Code, are amended to read as follows:
(b)  The penalty may not exceed:
(1)  $25,000 [$10,000] a day for each violation that is
not related to pipeline safety; or
(2)  $200,000 a day for each violation that is related
(c)  In determining the amount of the penalty, the commission
shall consider the [permittee's history of previous violations, the
seriousness of the violation, any hazard to the health or safety of
the public, and the demonstrated good faith of the person charged.
In determining the amount of the penalty for a violation of a
provision of this title or a rule, order, license, permit, or
certificate that relates to pipeline safety, the commission shall
consider the] guidelines adopted under Subsection (d).
(d)  The commission [by rule] shall adopt guidelines to be
used in determining the amount of the penalty.  The commission shall
provide an opportunity for public input on the guidelines [for a
violation of a provision of this title or a rule, order, license,
permit, or certificate that relates to pipeline safety].  The
guidelines must [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 must
provide for different penalties for different violations based on
the seriousness of the violation and any hazard to the health or
safety of the public resulting from the violation.  The guidelines
must [shall] take into account:
(1)  the permittee's history of previous violations,
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;
(6)  the number of times the permittee's certificate of
compliance issued under Subchapter P, Chapter 91, has been
(7)  any economic benefit gained through the violation;
(8)  the penalty necessary to deter future violations;
(9)  any other factor the commission considers
SECTION 2.  Section 81.058(d), Natural Resources Code, is
(d)  An administrative penalty imposed under this section
may not exceed $25,000 [$5,000] a day for each violation.  Each day
a violation continues or occurs is a separate violation for
purposes of imposing a penalty under this section.
SECTION 3.  Section 91.002(b), Natural Resources Code, is
(b)  An offense under Subsection (a) [of this section] is
punishable by a fine of not more than $25,000 [$10,000] a day for
each day a violation is committed.
SECTION 4.  Section 27.101(a), Water Code, is amended to
(a)  A person who violates any provision of this chapter
under the jurisdiction of the railroad commission, any rule of the
railroad commission made under this chapter, or any term,
condition, or provision of a permit issued by the railroad
commission under this chapter shall be subject to a civil penalty in
any sum not exceeding $25,000 [$5,000] for each day of
noncompliance and for each act of noncompliance.  A violation under
the jurisdiction of the commission is enforceable as provided by
SECTION 5.  Section 27.1011(b), Water Code, is amended to
(b)  The penalty may not exceed $25,000 [$10,000] a day for
each violation.  Each day a violation continues may be considered a
separate violation for purposes of penalty assessments.
SECTION 6.  Section 27.105(a), Water Code, is amended to
(a)  A person who knowingly or intentionally violates a
provision of this chapter under the jurisdiction of the railroad
commission, a rule of the railroad commission, or a term,
condition, or provision of a permit issued by the railroad
commission under this chapter is subject to a fine of not more than
$25,000 [$5,000] for each violation and for each day of violation.
A violation under the jurisdiction of the commission is enforceable
SECTION 7.  The changes in law made by this Act apply only to
a violation committed on or after the effective date of this Act.  A
violation committed before the effective date of this Act is
governed by the law in effect when the violation was committed, and
the former law is continued in effect for that purpose.  For
purposes of this section, a violation was committed before the
effective date of this Act if any element of the violation was
SECTION 8.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the imposition of administrative, civil, and criminal