New Propane Community System Rule Proposal

The Railroad Commission of Texas has published a proposed rule in the November 14, 2025 Texas Register to implement HB 4042, which removes the word “natural” from statute so that propane community systems are now subject to the same pipeline safety and regulatory fees as natural gas systems. The proposed amendments to 16 TAC §8.201 extend existing fee requirements to propane distribution and master-meter systems.

Proposed Fees for Propane Systems:

• $1.00 per service line for propane distribution systems

• $100 per master-meter system annually

• 10% late-payment penalty if fees are not remitted within 30 days of the due date

• Allows one-time customer surcharge to recover the fee (capped at $1.00 per service line)

• Required post-billing report to RRC detailing surcharge amounts, dates billed, and total recovered



The RRC estimates that, based on 2024 PHMSA filings, (8) propane distribution operators with 18,838 service lines would collectively pay about $18,838 annually under the new fee structure. Operators would also follow the same billing timelines and reporting requirements already in place for natural gas systems.

TPGA is preparing industry comments and encourages members to submit feedback to TPGA so we can identify any issues, needed clarifications, or operational impacts before the RRC’s comment deadline of December 15, 2025.