TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

Chapter 113. STANDARDS OF PERFORMANCE FOR HAZARDOUS AIR POLLUTANTS AND FOR DESIGNATED FACILITIES AND POLLUTANTS

Subchapter C. NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS FOR SOURCE CATEGORIES (FCCA §112, 40 CFR 63)

30 TAC §§113.110, 113.120, 113.130, 113.150, 113.170, 113.200, 113.240, 113.250, 113.260, 113.280, 113.320, 113.330, 113.340, 113.350, 113.380, 113.390, 113.400, 113.440, 113.470, 113.490, 113.500, 113.510, 113.520, 113.530, 113.540, 113.550, 113.560, 113.620, 113.640, 113.650, 113.670, 113.690, 113.700, 113.720, 113.730, 113.740, 113.750, 113.780, 113.790, 113.810, 113.840, 113.860, 113.900, 113.910, 113.930, 113.970, 113.1020, 113.1030, 113.1040, 113.1050, 113.1070, 113.1260

The Texas Commission on Environmental Quality (commission) proposes amendments to Subchapter C, concerning National Emission Standards for Hazardous Air Pollutants for Source Categories, §§113.110, 113.120, 113.130, 113.170, 113.200, 113.240, 113.250, 113.260, 113.280, 113.320, 113.330, 113.340, 113.350, 113.380, 113.390, 113.400, 113.470, 113.490, 113.500, 113.510, 113.520, 113.530, 113.540, 113.560, 113.620, 113.640, 113.650, 113.670, 113.690, 113.700, 113.720, 113.730, 113.790, and 113.810. The commission also proposes new §§113.150, 113.440, 113.550, 113.740, 113.750, 113.780, 113.840, 113.860, 113.900, 113.910, 113.930, 113.970, 113.1020, 113.1030, 113.1040, 113.1050, 113.1070, and 113.1260.

The proposed amendments to Chapter 113 incorporate amendments to National Emission Standards for Hazardous Air Pollutants (NESHAP) for Source Categories that the United States Environmental Protection Agency (EPA) has made to Title 40 Code of Federal Regulations Part 63 (40 CFR 63). These are technology-based standards commonly referred to as the maximum achievable control technology (MACT) standards. In addition, the proposed new sections will incorporate by reference 18 MACT standards which have not been previously incorporated into Chapter 113. The EPA is developing these national standards to regulate emissions of hazardous air pollutants under the Federal Clean Air Act (FCAA) Amendments of 1990, §112, as codified in 42 United States Code (USC), §7412.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Under federal law, affected industries are required to implement the MACT standards regardless of whether the commission or EPA is the agency responsible for implementation. As MACT standards are promulgated or amended by EPA, they are reviewed for compatibility with current commission regulations and policies. The commission then incorporates them into Chapter 113 through formal rulemaking procedures. After each MACT standard or amendment is adopted, the commission will seek formal delegation from EPA under 40 CFR 63, Subpart E, which implements 42 USC, §7412(1). Upon delegation, the commission will be responsible to administer and enforce the MACT requirements.

The commission proposes to incorporate amendments that EPA has made to 34 of the federal MACT standards previously incorporated into the commission rules by updating the federal promulgation dates and Federal Register (FR) citations stated in the commission rules. The 34 standards along with their corresponding Chapter 113 sections and original incorporation date are listed in the following table.

Figure: 30 TAC Preamble-1

The commission also proposes to incorporate by reference, without change, 18 federal MACT standards as listed in the following table.

Figure: 30 TAC Preamble-2

SECTION BY SECTION DISCUSSION

Subchapter C: National Emission Standards for Hazardous Air Pollutants for Source Categories (FCAA, §112, 40 CFR 63)

Throughout the proposed amendments, the commission is adding the word "Part" after the phrase "Code of Federal Regulations." Similarly, where the acronym "CFR" is used in existing sections, it is expanded to the Code of Federal Regulations. These amendments are proposed so that the rule language will conform to commission and Texas Register formatting and style standards. In addition, the commission is proposing to amend the titles of §§113.200, 113.240, 113.350, 113.500, 113.510, 113.520, 113.540, 113.560, and 113.690 to be the same as the titles for the corresponding subparts in 40 CFR 63.

Section 113.110 - Synthetic Organic Chemical Manufacturing Industry (40 CFR 63, Subpart F)

The commission proposes to amend §113.110 by incorporating by reference, without change, all amendments to Subpart F made by the EPA since April 26, 1999. During this time frame, EPA amended Subpart F on May 8, 2000 (65 FR 26491) and January 22, 2001 (66 FR 6922). The May 8, 2000 amendment revised the definition of the term "equipment leak" to add "connectors" to the list of equipment that is subject to the equipment leak provisions. The January 22, 2001 amendment revised the definition of the term "process vent" and added procedures for identifying "process vents" in order to ensure consistent interpretation of the term. EPA also revised several provisions to reflect the terminology used in the revised definition of process vent, and added provisions to allow off-site control of process vent emissions and to establish a new compliance date under certain circumstances.

Section 113.120 - Synthetic Organic Chemical Manufacturing Industry for Process Vents, Storage Vessels, Transfer Operations, and Wastewater (40 CFR 63, Subpart G)

The commission proposes to amend §113.120 by incorporating by reference, without change, all amendments to Subpart G made by the EPA since April 26, 1999. During this time frame, EPA amended Subpart G on October 17, 2000 (65 FR 61744); December 14, 2000 (65 FR 78268); and January 22, 2001 (66 FR 6922). The October 17, 2000 amendments included test method version D2879-96 in the definition of the term "maximum true vapor pressure." The December 14, 2000 amendments consolidated portions of the subpart which are applicable to storage vessels, process vents, transfer operations, and equipment leaks within the synthetic organic chemical manufacturing industry (SOCMI). The amendments allow a source the option of complying with a single consolidated rule at 40 CFR Part 65, concerning Consolidated Federal Air Rule (CAR). The CAR is an optional compliance alternative for SOCMI sources. The commission adopted the federal CAR into Chapter 113, Subchapter E, on September 25, 2002 with an effective date of October 20, 2002. As discussed in the previous paragraph, Subpart G was also amended along with Subpart F on January 22, 2001.

Section 113.130 - Organic Hazardous Air Pollutants for Equipment Leaks (40 CFR 63, Subpart H)

The commission proposes to amend §113.130 by incorporating by reference, without change, all amendments to H made by the EPA since April 26, 1999. During this time frame, EPA amended Subpart H on December 14, 2000 (65 FR 78268) and January 22, 2001 (66 FR 6922). The December 14, 2000 amendment allows sources affected by this subpart the alternative compliance option of complying with the CAR. As discussed previously, Subpart H was also amended along with Subparts F and G on January 22, 2001.

Section 113.150 - Polyvinyl Chloride and Copolymers Production (40 CFR 63, Subpart J)

The commission proposes new §113.150, which will incorporate by reference, without change, the Subpart J rules adopted by the EPA on July 10, 2002 (67 FR 45886). This new MACT standard requires that existing polyvinyl chloride (PVC) and copolymer production facilities, which already must comply with the existing vinyl chloride NESHAP found in 40 CFR Part 61, Subpart F, to continue to comply with that existing NESHAP. This rule reflects EPA's determination that, except for equipment leaks at new sources, the hazardous air pollutant (HAP) control level for the PVC and copolymers production source category resulting from compliance with the existing vinyl chloride NESHAP already reflects the application of MACT and thus meets the requirements of 42 USC, §7412(d). For equipment leaks, new sources must comply with the most current technology standards in the generic MACT rules found in 40 CFR 63, Subpart YY. Compliance with the existing vinyl chloride NESHAP promotes regulatory consistency and eliminates the costs that would be incurred by enforcing a new set of standards that likely would result in no additional HAP emissions reductions.

Section 113.170 - Coke Oven Batteries (40 CFR 63, Subpart L)

The commission proposes to amend §113.170 by incorporating by reference, without change, all amendments to Subpart L made by the EPA since October 27, 1993. During this time frame, EPA amended Subpart L on January 13, 1994 (59 FR 1992) and October 17, 2000 (65 FR 61744). The January 13, 1994 amendment included minor corrections to Appendix A of Subpart L. On October 17, 2000, EPA amended 40 CFR §63.301 and §63.304 by adding English units in addition to the metric units.

Section 113.200 - Ethylene Oxide Emissions Standards for Sterilization Facilities (40 CFR 63, Subpart O)

The commission proposes to amend §113.200 by incorporating by reference, without change, all amendments to Subpart O made by the EPA since December 14, 1999. During this time frame, Subpart O was amended on November 2, 2001 (66 FR 55577) to eliminate MACT requirements for chamber exhaust vents. This action reduced safety problems associated with the previous requirements, and also revised testing and monitoring requirements for sterilization chamber, aeration, and chamber exhaust vents to correct technical problems associated with the previous requirements.

Section 113.240 - Pulp and Paper Industry (40 CFR 63, Subpart S)

The commission proposes to amend §113.240 by incorporating by reference, without change, all amendments to Subpart S made by the EPA since April 12, 1999. During this time frame, EPA amended Subpart S on December 22, 2000 (65 FR 80755) and May 14, 2001 (66 FR 24268). The December 22, 2000 amendments revised the pulping process vent standards, the biological treatment system standards, monitoring requirements, and test methods and procedures to address technical issues identified after promulgation of the subpart in 1998. The amendment also specified that downtime, due to routine maintenance of pulping process vent control devices, is included in the excess emissions allowances. The May 14, 2001 amendments corrected two incorrectly referenced subparagraphs and made additional technical corrections.

Section 113.250 - Halogenated Solvent Cleaning (40 CFR 63, Subpart T)

The commission proposes to amend §113.250 by incorporating by reference, without change, all amendments to Subpart T made by the EPA since December 14, 1999. During this time frame, EPA amended Subpart T on September 8, 2000 (65 FR 54419) to provide corrections and clarifications to EPA amendments made on December 3, 1999, and finalized compliance options for continuous web cleaning. The intent of these amendments was to ensure that all owners or operators of solvent cleaning machines have appropriate and understandable requirements for their cleaning machines.

Section 113.260 - Group I Polymers and Resins (40 CFR 63, Subpart U)

The commission proposes to amend §113.260 by incorporating by reference, without change, all amendments to Subpart U made by the EPA since June 30, 1999. During this time frame, EPA amended Subpart U on June 19, 2000 (65 FR 38030) and July 16, 2001 (66 FR 36924). The June 19, 2000 amendments addressed numerous technical issues and concerns with the rules raised by petitioners to the United States Court of Appeals (U.S. Court of Appeals) for the District of Columbia Circuit, Union Carbide Corp. v. EPA, 96-413 and Consolidated Cases (D.C. Cir.) . Also the amendments were needed to update the rules as necessitated by the January 17, 1997 amendments to 40 CFR 63, Subparts F - I. The July 16, 2001 amendments corrected minor cross referencing and typographical errors.

Section 113.280 - Epoxy Resins Production and Non-Nylon Polyamides Production (40 CFR 63, Subpart W)

The commission proposes to amend §113.280 by incorporating by reference, without change, all amendments to Subpart W made by the EPA since March 8, 1995. During this time frame, Subpart W was amended on May 8, 2000 (65 FR 26491) to revise the definition of the term "equipment leak" by adding "connectors" to the list of equipment that is subject to the equipment leak provisions.

Section 113.320 - Phosphoric Acid Manufacturing Plants (40 CFR 63, Subpart AA); and

Section 113.330 - Phosphate Fertilizers Production Plants (40 CFR 63, Subpart BB)

The commission proposes to amend §113.320 and §113.330 by incorporating by reference, without change, all amendments to Subparts AA and BB made by the EPA since June 10, 1999. During this time frame, Subparts AA and BB were amended on December 17, 2001 (66 FR 65072); June 12, 2002 (67 FR 40578); and June 13, 2002 (67 FR 40814). The December 17, 2000 amendment revised the applicability and monitoring requirements for both subparts; and corrected typographical errors in Subpart AA; changed the emissions limit for phosphate rock calciners; clarified certain monitoring requirements; and specified applicability of certain parts of the general provisions. However, due to adverse comments received during the public comment period, on June 12, 2002, EPA withdrew direct final rule amendment to Subpart AA concerning emissions limit for phosphate rock calciners. The June 13, 2002 amendment revised the operating requirements for both subparts, and changed the emissions limit for phosphate rock calciners in Subpart AA.

Section 113.340 - Petroleum Refineries (40 CFR 63, Subpart CC)

The commission proposes to amend §113.340 by incorporating by reference, without change, all amendments to Subpart CC made by the EPA since August 18, 1998. During this time frame, EPA amended Subpart CC on May 25, 2001 (66 FR 28840). The May 25, 2001 amendment corrected an error in the amendatory instructions in an earlier correcting amendment, in which 40 CFR §63.640(b)(1) and (2) were inadvertently removed from Subpart CC.

Section 113.350 - Off-Site Waste and Recovery Operations (40 CFR 63, Subpart DD)

The commission proposes to amend §113.350 by incorporating by reference, without change, all amendments to Subpart DD made by the EPA since July 20, 1999. During this time frame, Subpart DD was amended on January 8, 2001 (66 FR 1263). This amendment corrected numerous typographical and cross-reference errors; removed a plus or minus 1% accuracy requirement and replaced it with a reference to 40 CFR Part 60, Appendix B, Performance Specification 8 or 9; and added an additional option to the carbon canister monitoring and replacement requirements so that the requirements would be consistent with other NESHAP and Resource Conservation and Recovery Act (RCRA) air rules.

Section 113.380 - Aerospace Manufacturing and Rework Facilities (40 CFR 63, Subpart GG)

The commission proposes to amend §113.380 by incorporating by reference, without change, all amendments to Subpart GG made by the EPA from September 1, 1998 through December 8, 2000. During this time frame, EPA amended Subpart GG on October 17, 2000 (65 FR 61744) and December 8, 2000 (65 FR 76941). The October 17, 2000 amendment added the American Society for Testing and Materials (ASTM) test method "E 260-96" to 40 CFR §63.750(b)(2). The December 8, 2000 amendment revised the standards to include a separate emission limit for exterior primers used for large commercial aircraft at existing facilities that produce fully assembled, large commercial aircraft.

Section 113.390 - Oil and Natural Gas Production Facilities (40 CFR 63, Subpart HH)

The commission proposes to amend §113.390 by incorporating by reference, without change, all amendments to Subpart HH made by the EPA since June 17, 1999. During this time frame, Subpart HH was amended on June 29, 2001 (66 FR 34548) to correct errors and to clarify the intent of the standard.

Section 113.400 - Shipbuilding and Ship Repair (Surface Coating) (40 CFR 63, Subpart II)

The commission proposes to amend §113.400 by incorporating by reference, without change, all amendments to Subpart II made by the EPA since December 17, 1996. During this time frame, Subpart II was amended on October 17, 2000 (65 FR 61744) to add references to later versions of ASTM test methods.

Section 113.440 - Chemical Recovery Combustion Sources at Kraft, Soda, Sulfite, and Stand-Alone Semichemical Pulp Mills (40 CFR 63, Subpart MM)

The commission proposes new §113.440, which will incorporate by reference, without change, the final rules and all amendments to Subpart MM made by the EPA since January 12, 2001. The standard applies to process components at new and existing sources used in chemical recovery processes at kraft, soda, sulfite, and stand-alone semichemical pulp mills. EPA issued the final rules for Subpart MM on January 12, 2001 (66 FR 3180). Since Subpart MM was initially issued, EPA amended the rules on July 19, 2001 (66 FR 37591) to make technical corrections and on August 6, 2001 (66 FR 41086) to correct a typographical error. HAPs that are regulated by this MACT standard include gaseous organic HAPs and HAP metals.

Section 113.470 - Containers (40 CFR 63, Subpart PP)

The commission proposes to amend §113.470 by incorporating by reference, without change, all amendments to Subpart PP made by the EPA since July 20, 1999. During this time frame, Subpart PP was amended on January 8, 2001 (66 FR 1263) to correct a cross-reference error.

Section 113.490 - Individual Drain Systems (40 CFR 63, Subpart RR)

The commission proposes to amend §113.490 by incorporating by reference, without change, all amendments to Subpart RR made by the EPA since July 20, 1999. During this time frame, Subpart RR was amended on January 8, 2001 (66 FR 1263) to correct typographical errors.

Section 113.500 - Closed Vent Systems, Control Devices, Recovery Devices, and Routing to a Fuel Gas System or a Process (40 CFR 63, Subpart SS);

Section 113.510 - Equipment Leaks - Control Level 1 (40 CFR Part 63, Subpart TT);

Section 113.520 - Equipment Leaks - Control Level 2 (40 CFR 63, Subpart UU); and

Section 113.540 - Storage Vessels (Tanks) - Control Level 2 (40 CFR 63, Subpart WW)

The commission proposes to amend §§113.500, 113.510, 113.520, and 113.540 by incorporating by reference, without change, all amendments to Subparts SS - UU and WW made by the EPA since November 22, 1999. During this time frame, Subparts SS - UU and WW were amended on July 12, 2002 (67 FR 46258) as part of an amendment to 40 CFR 63, Subpart YY. The Subpart YY amendment added four processes (cyanide chemicals manufacturing, carbon black production, ethylene production, and spandex production) to the generic MACT standard and incorporated generic requirements established for similar emissions sources that are also applicable to the four processes. The amendments specified the appropriate methods for demonstrating compliance with percent reduction requirements and emission concentration limits for the four processes in Subparts SS - UU and WW and specified who has the authority to implement and enforce the subparts. The amendments also specified that the authorities may be delegated to a state, local, or tribal agency.

Section 113.530 - Oil-Water Separators and Organic-Water Separators (40 CFR 63, Subpart VV)

The commission proposes to amend §113.530 by incorporating by reference, without change, all amendments to Subpart VV made by the EPA since July 20, 1999. During this time frame, Subpart VV was amended on January 8, 2001 (66 FR 1263) to correct a typographical error.

Section 113.550 - Ethylene Manufacturing Process Units: Heat Exchange Systems and Waste Operations (40 CFR 63, Subpart XX)

The commission proposes new §113.550, which will incorporate by reference, without change, the final rules to Subpart XX adopted by the EPA on July 12, 2002 (67 FR 46258). This MACT standard applies to heat exchange systems and wastewater operations at ethylene manufacturing facilities. The primary HAPs that will be controlled include benzene; 1,3-butadiene; cumene; ethyl benzene; hexane; naphthalene; styrene; toluene; o-xylene, m-xylene, and p-xylene.

Section 113.560 - Generic Maximum Achievable Control Technology Standards (40 CFR 63, Subpart YY)

The commission proposes to amend §113.560 by incorporating by reference, without change, all amendments to Subpart YY made by the EPA since November 22, 1999. During this time frame, Subpart YY was amended on December 22, 1999 (64 FR 71852); November 2, 2001 (66 FR 55844); June 7, 2002 (67 FR 39301); twice on July 12, 2002 (67 FR 46258 and 46289); and February 10, 2003 (68 FR 6635). The December 22, 1999 amendment was a correction to 40 CFR §63.1103(d), Table 5, to insert a number that was missing. The November 2, 2001 amendment concerned the regulation of surge control vessels and bottoms receiver vessels. The June 7, 2002 amendment addressed a petitioner's questions regarding a recordkeeping provision in the promulgated rules; the definition for "process vent"; and editorial, cross-reference, and wording errors. The July 12, 2002 amendment established standards for cyanide chemicals manufacturing, carbon black production, ethylene production, and spandex production source categories. These four source categories were added to the generic MACT standards to reduce the regulatory burden associated with the development of separate rulemakings, to simplify the rulemaking process, to minimize the potential for duplicative or conflicting requirements, to conserve limited resources, and to ensure consistency of the air emissions requirements applied to similar emission points. EPA also issued an amendment on July 12, 2002, which clarified the EPA intent concerning dry spinning spandex production processes by concluding that the MACT floor for spandex dry spinning facilities is "no control" and that adoption of additional emission controls is not warranted. Therefore, EPA determined that it was not necessary or appropriate to promulgate any MACT requirements for spandex dry spinning facilities, but controls on spandex reaction spinning facilities were still necessary. The February 10, 2003 amendment added a definition for "process wastewater" to Subpart YY.

Section 113.620 - Hazardous Waste Combustors (40 CFR 63, Subpart EEE)

The commission proposes to amend §113.620 by incorporating by reference, without change, all amendments to Subpart EEE made by the EPA since November 19, 1999. During this time frame, EPA amended Subpart EEE on July 10, 2000 (65 FR 422920); November 9, 2000 (65 FR 67268); May 14, 2001 (66 FR 24270); July 3, 2001 (66 FR 35087); October 15, 2001 (66 FR 523610); December 6, 2001 (66 FR 63313); February 13, 2002 (67 FR 6792); February 14, 2002 (67 FR 6968); and December 19, 2002 (67 FR 77687).

The July 10, 2000 amendment corrected numerous typographical errors and clarified several issues from the September 30, 1999 promulgated rules; clarified one issue from a closely related June 19, 1998 amendment; and made one revision to the November 19, 1999 technical correction.

The November 9, 2000 amendment was an interpretative clarification and a technical correction. Part one of the amendment addressed several questions from sources concerning the applicability of new source standards versus existing source standards for hazardous waste incinerators by specifying the original intent of the rules on these issues. The second part of the amendment made three technical corrections which addressed performance testing, the continuous monitoring system evaluation plans, and continuous monitoring system data averaging.

The May 14, 2001 amendment was based on a court decision, Chemical Manufacturers Association v. EPA , 217 F. 3d 861 (D.C. Cir. 2000), in which the court vacated the Notice of Intent to Comply provisions of EPA's rules relating to the standards for hazardous waste combustors. EPA also filed a motion with the Washington D.C. Circuit to vacate certain parameter limits of baghouses and electrostatic precipitators in order to allow additional opportunity for notice and comment on the issue ( CKRC v. EPA , no 99-1457, EPA Motion to November 14, 2000).

The July 3, 2001 amendment improved the implementation of the emission standards associated with the final rule promulgated on September 30, 1999 (64 FR 52,828), primarily in the areas of compliance, testing, and monitoring requirements. However, due to adverse comments received during the public comment period, on October 15, 2001, EPA withdrew portions of three sections, including the proposed new definition of the phrase "preheater tower combustion gas monitoring location" from the direct final rules published on July 3, 2001.

The December 6, 2001 amendment extended the compliance date for Subpart EEE for one year. This amendment was in response to the Washington D.C. Circuit 2001 opinion on Cement Kiln Recycling Coalition v. EPA , 255 F.3d 855, 872 issued July 24, 2001. The February 13, 2002 amendment revised the September 1999 emission standards with the issuance of an Interim Standards Rule which, while less stringent than the original rules, achieves most of the emission gains of the original rules. The interim standards replaced the vacated standards temporarily, until final standards could be promulgated. The February 14, 2002 amendments focused on improving the implementation of the emissions standards, primarily in the areas of compliance, testing, and monitoring.

Finally, the December 19, 2002 amendments made the following technical corrections: 1) sources that comply early are not required to submit the notice of compliance within 90 days of completing the comprehensive performance test; 2) the hydrochloric acid and chlorine gas emission standard for new lightweight aggregate kilns was changed to 600 parts per million by volume; 3) the minimum power requirement for ionizing wet scrubbers was deleted; 4) the requirement to include a carbon bed testing schedule in the performance test plan was deleted; 5) combustion system leak requirements were added; 6) the compliance date extension requirements were changed; 7) the RCRA permitting requirements were changed; 8) the limit on waste feed-rate for compliance with the dioxin/furan emissions standard was changed; 9) the limit on the maximum ash feed-rate for incinerators was changed; and 10) and the sampling and analysis requirements were changed.

Section 113.640 - Pharmaceuticals Production (40 CFR 63, Subpart GGG)

The commission proposes to amend §113.640 by incorporating by reference, without change, all amendments to Subpart GGG made by the EPA since September 21, 1998. During this time frame, EPA amended Subpart GGG on August 29, 2000 (65 FR 52588); August 2, 2001 (66 FR 401210); and April 2, 2002 (67 FR 15486). The August 29, 2000 amendment addressed 12 technical issues and concerns raised by petitioners in the U.S. Court of Appeals for the District of Columbia Circuit, PhRMA v. EPA, 98-1551 (D.C. Cir.) . The August 2, 2001 amendment provided additional compliance options for process vent and storage tank emissions, specified additional methods that may be used to analyze wastewater, shifted one compound from the list of partially soluble HAPs to the list of soluble HAPs, eliminated an unintended restriction on the use of enhanced biological treatment, allowed a sewer line between drains and the first downstream junction box to be vented, clarified how to assign storage tanks that are shared among pharmaceutical manufacturing process units and other types of process units, clarified monitoring frequency requirements for connectors, clarified and simplified recordkeeping and reporting requirements, eliminated inconsistencies, and corrected several referencing and typesetting errors. The April 2, 2002 amendment corrected a reference to 40 CFR §63.1257(d)(3)(iii) and removed an incorrect definition of the term " " in the calculation of the mass flow rate in wastewater stream entering combustion treatment processes.

Section 113.650 - Natural Gas Transmission and Storage Facilities (40 CFR 63, Subpart HHH)

The commission proposes to amend §113.650 by incorporating by reference, without change, all amendments to Subpart HHH made by the EPA since June 17, 1999. During this time frame, EPA amended Subpart HHH on June 29, 2001 (66 FR 34548); September 27, 2001 (66 FR 49299); and February 22, 2002 (67 FR 8202). The June 29, 2001 amendment corrected errors and restated the intent of the standard. The September 27, 2001 and February 22, 2002 amendments made technical corrections to the June 29, 2001 amendment.

Section 113.670 - Group IV Polymers and Resins (40 CFR 63, Subpart JJJ)

The commission proposes to amend §113.670 by incorporating by reference, without change, all amendments to Subpart JJJ made by the EPA since June 30, 1999. During this time frame, EPA amended Subpart JJJ on June 19, 2000 (65 FR 38030); August 29, 2000 (65 FR 52319); October 26, 2000 (65 FR 64161); February 23, 2001 (66 FR 11233); February 26, 2001 (66 FR 11543); July 16, 2001 (66 FR 36924); and August 6, 2001 (66 FR 40903).

The June 19, 2000 amendment addressed numerous technical issues and concerns with the rules raised by petitioners to the U.S. Court of Appeals for the District of Columbia Circuit, Union Carbide Corp. v. EPA, 96-413 and Consolidated Cases (D.C. Cir.) . In addition, the amendments updated Subpart JJJ as necessitated by amendments to the hazardous organic NESHAP in Subparts F - I.

The August 29, 2000 amendment was a direct final rule that indefinitely stayed the compliance date for the process contact cooling tower provisions for existing affected sources producing polyethylene terephthalate (PET) using the continuous terephthalic acid high viscosity multiple end finisher process. However, due to adverse comments, on October 26, 2000, EPA withdrew the August 29, 2000 direct final rule. The February 23, 2001 was another direct final rule that indefinitely stayed the February 27, 2001 compliance date for the process contact cooling tower provisions for existing affected sources producing poly using the continuous terephthalic acid high viscosity multiple end finisher process.

The February 26, 2001 amendment extended certain compliance dates contained in the subpart concerning the equipment leaks provisions as applied to PET affected sources and corrected a reference error. The July 16, 2001 amendment corrected minor cross-referencing and typographical errors, and made minor clarifications.

The EPA was petitioned to reconsider the equipment leak detection and repair standards contained in this subpart as they pertained to PET facilities. The August 6, 2001 amendment denied the petition and retained the equipment leak provisions of the promulgated rules, except for a modification of the definition of a leak for certain ethylene glycol pumps. In addition, the amendment extended the equipment leak provisions compliance date for PET affected sources to August 6, 2002, in order to provide PET facilities time to develop a leak detection and repair program.

Section 113.690 - Portland Cement Manufacturing Industry (40 CFR 63, Subpart LLL)

The commission proposes to amend §113.690 by incorporating by reference, without change, all amendments to Subpart LLL made by the EPA since June 14, 1999. During this time frame, EPA amended Subpart LLL on April 5, 2002 (67 FR 16614); July 2, 2002 (67 FR 44371); July 5, 2002 (67 FR 44766); and December 6, 2002 (67 FR 72580).

The April 5, 2002 direct final rule amendments improved the implementation of the emission standards, primarily in the areas of applicability, testing, and monitoring, to resolve issues and questions raised since promulgation of the rule. However, due to adverse comments received during the public comment period concerning the April 5, 2002 amendments, EPA withdrew portions of the amendments to three sections on July 2, 2002.

The July 5, 2002 amendments corrected errors to Table 1 concerning monitoring requirements. The amendments also addressed two issues which arose from the explanatory language in the preamble to the April 5, 2002 direct final rule amendments. First, the amendments specified that the production rate is not a parameter for which operating limits are established and that the production rate measured during dioxin/furan or particulate matter performance testing is not an operation limit for the source. Furthermore, the amendments specified that a source would need to reconduct a performance test if the current operation is not representative of the operation during the previous performance test, such that the change in operation may adversely affect compliance. Finally, the amendments specified that only the transfer points used to convey coal from mill to the kiln are potential affected sources under Subpart LLL.

The December 6, 2002 amendments improved the implementation of the emission standards, primarily in the areas of applicability, testing, and monitoring, to resolve issues and questions raised since promulgation of the rule. Specifically, the amendments addressed the issues raised as a result from adverse comment to the April 5, 2002 amendments that were withdrawn on July 2, 2002.

Section 113.700 - Pesticide Active Ingredient Production (40 CFR 63, Subpart MMM)

The commission proposes to amend §113.700 by incorporating by reference, without change, all amendments to Subpart MMM made by the EPA since June 23, 1999. During this time frame, EPA amended Subpart MMM twice on November 21, 2001 (66 FR 58393 and 58396); twice on March 22, 2002 (67 FR 13508 and 13514); June 3, 2002 (67 FR 38200); and September 20, 2002 (67 FR 59336). The November 21, 2001 amendments changed the requirements for pre-compliance plans to three months in advance of the compliance date instead of six months. Due to issues raised by petitioners in the U.S. Court of Appeals for the District of Columbia Circuit, the amendments also revised the definition of the term "process tank," American Coke and Coal Chemicals Institute v. EPA, No. 99-1339 (D.C. Cir.) .

The second of two March 22, 2002 amendments, in a Good Cause Final Rule, provided an interim compliance date extension for existing sources from June 23, 2002 to August 22, 2002 pending resolution of a settlement agreement. The interim compliance date extension was necessary because EPA simultaneously published a March 22, 2002 direct final amendment to extend the compliance deadline until December 23, 2003, but the comment period extended past the existing March 23, 2002 pre-compliance plan deadline. The June 3, 2002 amendments officially extended the compliance date until December 23, 2003.

The September 20, 2002 amendments addressed the issues raised by petitioners (American Crop Protection Association and American Cyanamid Company (now BASF Corporation) U.S. Court of Appeals for the District of Columbia Circuit, ACPA v. EPA, No. 9901334 (Consolidated with ACPA v. EPA, No 99-1332)), to ensure that the rule was implemented as intended, to correct errors, and to maintain consistency with other rules.

Section 113.720 - Manufacture of Amino/Phenolic Resins (40 CFR 63, Subpart OOO)

The commission proposes to amend §113.720 by incorporating by reference, without change, all amendments to Subpart OOO made by the EPA since January 20, 2000. During this time frame, Subpart OOO was amended on February 22, 2000 (65 FR 8768) to correct typographical errors and an equation.

Section 113.730 - Polyether Polyols Production (40 CFR 63, Subpart PPP)

The commission proposes to amend §113.730 by incorporating by reference, without change, all amendments to Subpart PPP made by the EPA since June 1, 1999. During this time frame, Subpart PPP was amended on June 14, 1999 (64 FR 31895) and May 8, 2000 (65 FR 26491). The June 14, 1999 amendment was a correction to an equation. The May 8, 2000 amendment revised the definition of the term "equipment leak" by adding "connectors" to the list of equipment that is subject to the equipment leak provisions; corrected errors in several equations; corrected numerous cross- referencing errors; incorporated definitions by reference; removed references to 40 CFR 63, Subpart I; and made revisions concerning the applicability, performance testing, reports, and initial notifications.

Section 113.740 - Primary Copper Smelting (40 CFR 63, Subpart QQQ)

The commission proposes new §113.740, which will incorporate by reference, without change, the final rules to Subpart QQQ adopted by the EPA on June 12, 2002 (67 FR 40478). This new MACT standard establishes emissions limitations and work practice standards for primary copper smelters that are, or are part of, a major source of HAP emissions and that use batch copper converters. The primary toxic metal HAPs that will be controlled include antimony, arsenic, beryllium, cadmium, cobalt, lead, manganese, nickel, and selenium.

Section 113.750. Secondary Aluminum Production (40 CFR 63, Subpart RRR) .

The commission proposes new §113.750, which will incorporate by reference, without change, the final rules for Subpart RRR adopted by the EPA on March 23, 2000 (65 FR 15690) and amended on June 14, 2002 (67 FR 41118); August 13, 2002 (67 FR 52616); September 24, 2002 (67 FR 59787); November 8, 2002 (67 FR 68038); and December 30, 2002 (67 FR 79808). On March 23, 2000, EPA promulgated standards for new and existing sources at secondary aluminum production facilities. HAPs emitted by the affected facilities include organic HAPs (including dioxins and furans), inorganic gaseous HAPs (hydrogen chloride, hydrogen fluoride, and chlorine), and particulate metal HAPs. Emissions of other pollutants include particulate matter and volatile organic compounds. Secondary aluminum production facilities that are area sources are only subject to limitations on emissions of dioxins and furans only.

As part of a settlement agreement with industry trade associations, the June 14, 2002 amendments were published as direct final rules and clarified compliance dates and deferred certain early compliance obligations. The compliance date for a newly affected source (which is constructed or reconstructed at an existing aluminum die casting facility, aluminum foundry, or aluminum extrusion facility and that is subject to the rule) was deferred until March 24, 2003 or upon startup, whichever is later. The amendment also specified that the operation, maintenance, and monitoring plan must be submitted no later than the compliance date for existing sources, and 90 days after the initial performance test for new sources. The amendments also required the owner or operator to prepare a site-specific plan that meets the requirements of 40 CFR 63, Subpart A, to obtain approval of the plan, and conduct any performance test no later that the compliance date for existing sources and within 90 days after the compliance date stated in rule for new sources. The requirement for notification of compliance status was revised to correspond to the new dates specified in the amendments. The August 13, 2002 amendments withdrew the entire June 14, 2002 direct final rule due to adverse comments on several of the provisions in the direct final rule. Along with the direct final rules, EPA proposed a parallel rule amendments on June 14, 2002, and adopted all of the amendments as proposed on September 24, 2002.

The November 8, 2002 amendments corrected an error in the effective date listed in the September 24, 2002 notice, changing the effective date from November 25, 2002 to September 24, 2002.

The December 30, 2002 amendments revised the applicability provisions for aluminum die casters, foundries, and extruders. The amendments also added new provisions governing control of commonly ducted units; revised the procedures for adoption of operation, maintenance, and monitoring plans; revised the criteria concerning testing of representative emissions units; revised the standard for unvented in-line flux boxes; and clarified the control requirements for sidewall furnaces.

Section 113.780 - Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units (40 CFR 63, Subpart UUU)

The commission proposes new §113.780, which will incorporate by reference, without change, the final promulgated rules in Subpart UUU adopted by the EPA on April 11, 2002 (67 FR 17762). This MACT standard affects sources at petroleum refineries which include catalytic cracking units, catalytic reforming units, and sulfur recovery units, as well as associated by-pass lines. HAPs that are to be reduced by this final rule include organics (acetaldehyde, benzene, formaldehyde, hexane, phenol, toluene, and xylene); reduced sulfur compounds (carbonyl sulfide and carbon disulfide); inorganics (hydrogen chloride and chlorine); and particulate metals (antimony, arsenic, beryllium, cadmium, chromium, cobalt, lead, manganese, and nickel).

Section 113.790 - Publicly Owned Treatment Works (40 CFR 63, Subpart VVV)

The commission proposes to amend §113.790 by incorporating by reference, without change, all amendments to Subpart VVV made by the EPA since October 26, 1999. During this time frame, Subpart VVV was amended on March 23, 2001 (66 FR 16140) and October 21, 2002 (67 FR 64742). The March amendments corrected grammatical, typographic, formatting, and cross-reference errors. Following this notice, the Pharmaceutical Research and Manufacturers of America filed a petition for judicial review. As part of the settlement agreement, the October 21, 2002 amendments rescinded the applicability provision specified in 40 CFR §63.1580(c); applied the same NESHAP requirements that apply to industrial publicly owned treatment works (POTW) treatment plants that are major HAP sources to all industrial POTW treatment plants that are area HAP sources; and exempted industrial POTW treatment plants that are area HAP sources from the permit requirements in 42 USC, §7661a(a).

Section 113.810 - Ferroalloys Production: Ferromanganese and Silicomanganese (40 CFR 63, Subpart XXX)

The commission proposes to amend §113.810 by incorporating by reference, without change, all amendments to Subpart XXX made by the EPA since May 20, 1999. During this time frame, Subpart XXX was amended on March 22, 2001 (66 FR 16007) and established new emission limitations for ferromanganese and silicomanganese production in open submerged arc furnaces. The amendments established four subcategories within the category of furnaces and specified numerical emission limitations for particulate matter for each, to account for differences in emission potential and control, furnace size, operating conditions, and alloy type.

Section 113.840 - Municipal Solid Waste Landfills (40 CFR 63, Subpart AAAA)

The commission proposes new §113.840, which will incorporate by reference, without change, the final promulgated rules in Supbart AAAA adopted by the EPA on January 16, 2003 (68 FR 2227). This new MACT standard applies to new and existing municipal solid waste landfills that are major or area sources of emissions. The HAP emissions from these landfills include, but are not limited to, benzene, ethyl benzene, toluene, and vinyl chloride.

Section 113.860 - Manufacturing of Nutritional Yeast (40 CFR 63, Subpart CCCC)

The commission proposes new §113.860, which will incorporate by reference, without change, the final promulgated rules in Subpart CCCC adopted by the EPA on May 21, 2001 (66 FR 27876). This new MACT standard applies to process components at new and existing major sources which are in the nutritional yeast manufacturing source category. The EPA identified this source category as a major source of HAP emissions of acetaldehyde.

Section 113.900 - Solvent Extraction for Vegetable Oil Production (40 CFR 63, Subpart GGGG)

The commission proposes new §113.900, which will incorporate by reference, without change, the final promulgated rules and all amendments to Subpart GGGG adopted by the EPA since April 12, 2001. The final rule for Subpart GGGG was issued on April 12, 2001 (66 FR 19006) and amended on April 5, 2002 (67 FR 16317). This new MACT standard applies to process components at new and existing major sources at vegetable oil production facilities which use solvent extraction, which includes facilities that produce crude vegetable oil and meal products by removing oil from listed oil seeds through direct contact with an organic solvent. The EPA identified this source category as a major source of HAP emissions of n-hexane.

The April 5, 2002 amendments specified that the startup, shutdown, and maintenance provisions were applicable to vegetable oil production plants and specified the applicability of the NESHAP general provisions in 40 CFR 63, Subpart A.

Section 113.910 - Wet-Formed Fiberglass Mat Production (40 CFR 63, Subpart HHHH)

The commission proposes new §113.910, which will incorporate by reference, without change, the final promulgated rules for Subpart HHHH adopted by the EPA on April 11, 2002 (67 FR 17824). This new MACT standard applies to process components at new and existing major sources which are in the wet-formed fiberglass mat production source category. The primary HAP emissions from these sources are formaldehyde, methanol, and vinyl acetate.

Section 113.930 - Paper and Other Web Coating (40 CFR 63, Subpart JJJJ)

The commission proposes new §113.930, which will incorporate by reference, without change, the final promulgated rules for Subpart JJJJ adopted by the EPA on December 4, 2002 (67 FR 72330). This new MACT standard applies to facilities that coat paper and other web substrates. The final standards are designed to eliminate approximately 80% of nationwide HAP emissions from facilities that coat paper and other web substrates. The EPA identified this source category as a major source of HAP emissions of toluene, methanol, methyl ethyl keytone, xylenes, phenol, methylene chloride, ethylene glycol, glycol ethers, hexane, methyl isobutyl ketone, cresols and cresylic acid, dimethylformamide, vinyl acetate, formaldehyde, and ethyl benzene.

Section 113.970 - Surface Coating of Large Appliances (40 CFR 63, Subpart NNNN)

The commission proposes new §113.970, which will incorporate by reference, without change, the final rules to Subpart NNNN adopted by the EPA on July 23, 2002 (67 FR 48254). This new MACT standard applies to new and existing sources that apply surface coatings to large appliances. The EPA identified this source category as a major source of HAP emissions of glycol ethers, methylene diphenyl diisocyanate, methyl ethyl ketone, toluene, and xylene. These compounds account for over 80% of the nationwide HAP emissions from this source category.

Section 113.1020 - Surface Coating of Metal Coil (40 CFR 63, Subpart SSSS)

The commission proposes new §113.1020, which will incorporate by reference, without change, the final rules and all amendments to Subpart SSSS adopted by the EPA since June 10, 2002. EPA issued the final rule for Subpart SSSS on June 10, 2002 (67 FR 39794) and technical corrections on March 17, 2003 (68 FR 12590). This new MACT standard applies to process components at new and existing sources that coat metal coil products. The primary HAPs that will be controlled include methyl ethyl ketone, glycol ethers, xylenes (isomers and mixtures), toluene, and isophorone. The March 17, 2003 amendments corrected the time line for beginning the first semiannual reporting period and submitting the first semiannual report.

Section 113.1030 - Leather Finishing Operations (40 CFR 63, Subpart TTTT)

The commission proposes new §113.1030, which will incorporate by reference, without change, the final promulgated rules in Subpart TTTT adopted by the EPA on February 27, 2002 (67 FR 9156). This new MACT standard applies to process components at new and existing major sources at leather finishing operations. The EPA has identified these facilities as major sources of emissions of HAPs, such as glycol ethers, toluene, and xylene.

Section 113.1040 - Cellulose Products Manufacturing (40 CFR 63, Subpart UUUU)

The commission proposes new §113.1040, which will incorporate by reference, without change, the final rules in Subpart UUUU adopted by the EPA on June 11, 2002 (67 FR 40044). This new MACT standard applies to process components at cellulose products manufacturing. Cellulose products manufacturing includes both the miscellaneous viscose processes (MVP) source category and the cellulose ethers production (CEP) source category. The MVP source category comprises the cellulose food casing, rayon, cellulosic sponge, and cellophane manufacturing industries. The CEP source category comprises the methyl cellulose, hydroxypropyl methyl cellulose, hydroxypropyl cellulose, hydroxyethyl cellulose, and carboxymethyl cellulose manufacturing industries. The EPA identified the MVP source category and the CEP source category as including major sources of emissions of HAPs, such as carbon disulfide, carbonyl sulfide, ethylene oxide, methanol, methyl chloride, propylene oxide, and toluene.

Section 113.1050 - Boat Manufacturing (40 CFR 63, Subpart VVVV)

The commission proposes new §113.1050, which will incorporate by reference, without change, the final rules and all amendments to Subpart VVVV adopted by the EPA since August 22, 2001. EPA issued the final rule for Subpart VVVV on August 22, 2001 (66 FR 44218) and amendments on October 3, 2001 (66 FR 50504). This new MACT standard applies to process components at new and existing boat manufacturing facilities, which include fiberglass resin and gel coat operations, carpet and fabric adhesive operations, and aluminum recreational boat painting operations. The EPA has identified boat manufacturing as a major source of HAPs, such as styrene, methyl methacrylate, methylene chloride, toluene, xylene, n-hexane, methyl ethyl ketone, methyl isobutyl ketone, and methyl chloroform. The October 3, 2001 amendments corrected typographical errors.

Section 113.1070 - Rubber Tire Manufacturing (40 CFR 63, Subpart XXXX)

The commission proposes new §113.1070, which will incorporate by reference, without change, the final rules and all amendments to Subpart XXXX adopted by the EPA since July 9, 2002. EPA issued the final rule for Subpart XXXX on July 9, 2002 (67 FR 45588) and technical corrections on March 12, 2003 (68 FR 11745). This new MACT standard applies to process components at new and existing rubber tire manufacturing facilities. The primary HAPs that will be controlled include toluene and hexane. The March 12, 2003 amendments corrected typographical errors and made corrections to wording.

Section 113.1260 - Friction Materials Manufacturing Facilities (40 CFR 63, Subpart QQQQQ)

The commission proposes new §113.1260, which will incorporate by reference, without change, the final rules in Subpart QQQQQ adopted by the EPA on October 18, 2002 (67 FR 64498). This new MACT standard applies to process components at new and existing friction materials manufacturing facilities. The primary HAPs that will be controlled include n-hexane, toluene, and trichloroethylene.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMIT PROGRAM

Because Chapter 113 contains applicable requirements under 30 TAC Chapter 122, Federal Operating Permits, owners or operators subject to the Federal Operating Permit Program must, consistent with the amendment process in Chapter 122, revise their operating permit to include the amended Chapter 113 requirements for each emission unit affected by the amendments to Chapter 113 at their site.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

John Davis, Technical Specialist with Strategic Planning and Appropriations, determined that for the first five-year period the proposed rules are in effect, no significant fiscal implications are anticipated for the agency or other units of state and local government due to administration and enforcement of the proposed rules. The purpose of the proposed rules is to incorporate by reference, MACT standards mandated by the FCAA and the amendments to that act. EPA is developing these national MACT standards to regulate emissions under 42 USC, §7412. The commission will implement and enforce the requirements of each MACT standard upon delegation by the EPA. HAP sources affected by the MACT standards are required to comply with the federal standards whether or not the commission adopts or takes delegation of the standards from EPA. The proposed rules are not anticipated to add additional costs to the regulated community beyond what is already required to comply with the federal standards.

PUBLIC BENEFITS AND COSTS

Mr. Davis also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from enforcement of and compliance with the proposed rules will be increased consistency between federal and state air quality regulations and conformance with the requirements of 42 USC, §7412.

There are no additional fiscal implications anticipated to affected owners and operators beyond what is already required to comply with federal MACT standards. The proposed rules affect certain sources of HAPs which will be required to comply with federal MACT standards whether or not the commission adopts or takes delegation of the standards from EPA.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There are no adverse fiscal implications anticipated for small and micro-businesses as a result of implementation and enforcement of the proposed rules beyond what is already required to comply with federal MACT standards. The purpose of the proposed rules is to adopt MACT standards mandated by 42 USC, §7412. Small or micro-businesses that are sources of HAPs are required to comply with federal standards whether or not the commission adopts or takes delegation of the standards from EPA.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking does not meet the definition of a "major environmental rule" as defined in that statute. A "major environmental rule" is one of which the specific intent is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The specific intent of the proposed rules is to adopt MACT standards mandated by the FCAA and the amendments to that act. EPA is developing these national MACT standards to regulate emissions of HAPs under 42 USC, §7412. HAP sources affected by the MACT standards are required to comply with the federal standards whether or not the commission adopts or takes delegation of the standards from EPA. The proposed rules are not anticipated to add any significant additional costs to affected individuals or businesses beyond the existing requirements to comply with the federal standards. The proposed rules are intended to protect the environment, but are not anticipated to have material adverse effects beyond what is already required to comply with federal MACT standards on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, §2001.0225 only applies to a "major environmental rule," the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of a "major environmental rule." Specifically, the MACT standards within this proposal are federal technology- based standards which will be adopted by reference, and therefore, will not exceed any standard set by federal law. This proposal is not an express requirement of state law, but was developed by EPA as MACT standards mandated by the FCAA and the amendments to that act. The proposed rules do not exceed a requirement of a delegation agreement or a contract between state and federal government. The proposed rules were not developed solely under the general powers of the agency, but are proposed under the Texas Clean Air Act (TCAA), as codified in Texas Health and Safety Code (THSC), §382.011, which authorizes the commission to establish the level of quality to be maintained in the state's air; §382.012, which authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air; §382.016, which authorizes the commission to prescribe reasonable requirements for measuring and monitoring the emissions of air contaminants; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; and §382.051, which authorizes the commission to adopt rules as necessary to comply with changes in federal law or regulations applicable to air permits.

TAKINGS IMPACT ASSESSMENT

The commission prepared a preliminary takings impact assessment for this proposal under Texas Government Code, §2007.043. The specific purpose of this rulemaking is to facilitate implementation and enforcement of the MACT standards by the state. This rulemaking will not create any additional burden on private real property. Under federal law, the affected industries will be required to implement these MACT standards regardless of whether the commission or EPA is the agency responsible for implementation of the standards.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission determined that the proposed rulemaking is subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as revised (Texas Natural Resources Code, §§33.201 et seq .), and the commission's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the Coastal Management Program. As required by 31 TAC §505.11(b)(2), relating to rules subject to the CMP, commission rules governing air pollutant emissions must be consistent with the applicable goals and policies of the CMP. The commission reviewed this proposed action for consistency with the CMP goals and policies in accordance with the rules of the Coastal Coordination Council, and determined that the proposed action is consistent with the applicable CMP goals and policies. This proposed rulemaking is consistent with the goal expressed in 31 TAC §501.12(1) of protecting and preserving the quality and value of coastal natural resource areas. The CMP policy applicable to this rulemaking action is the policy that commission rules comply with regulations in 40 CFR to protect and enhance air quality in the coastal area (31 TAC §501.14(q)). This proposal will incorporate by reference, 18 new and 34 amended federal MACT subparts contained in 40 CFR 63 and is, therefore, consistent with this policy. Interested persons may submit comments on the consistency of the proposed rules with the CMP during the public comment period.

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on April 28, 2003 at 10:00 a.m. in Building F, Room 2210 of the commission's central office, located at 12100 Park 35 Circle, Austin, Texas. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not occur during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs who are planning to attend the hearings should contact the agency at (512) 239-4900. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 2002-036a-113-AI. Comments must be received by 5:00 p.m., May 5, 2003. For further information or questions concerning this proposal, contact Keith Sheedy, Office of Compliance and Enforcement at (512) 239-1556 or Alan Henderson, Office of Environmental Policy, Analysis, and Assessment at (512) 239-1510.

STATUTORY AUTHORITY

The new and amended sections are proposed under Texas Water Code (TWC), §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under THSC, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The new and amended sections are also proposed under THSC, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the proper control of the state's air; §382.016, concerning Monitoring Requirements: Examination of Records, which authorizes the commission to prescribe reasonable requirements for measuring and monitoring the emissions of air contaminants; and §382.051, concerning Permitting Authority of the Commission: Rules, which authorizes the commission to adopt rules as necessary to comply with changes in federal law or regulations applicable to permits issued under the TCAA.

These proposed new and amended sections implement THSC, §§382.002, 382.011, 382.012, 382.016, 382.017, and 382.051.

§113.110.Synthetic Organic Chemical Manufacturing Industry (40 CFR 63, Subpart F).

The Synthetic Organic Chemical Manufacturing Industry Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart F, is incorporated by reference as amended through January 22, 2001 (66 FR 6922) [ April 26, 1999, at 64 FedReg 20189 ].

§113.120.Synthetic Organic Chemical Manufacturing Industry for Process Vents, Storage Vessels, Transfer Operations, and Wastewater (40 CFR 63, Subpart G).

The Synthetic Organic Chemical Manufacturing Industry for Process Vents, Storage Vessels, Transfer Operations, and Wastewater Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart G, is incorporated by reference as amended through January 22, 2001 (66 FR 6922) [ April 26, 1999, at 64 FedReg 20189 ].

§113.130.Organic Hazardous Air Pollutants for Equipment Leaks (40 CFR 63, Subpart H).

The Organic Hazardous Air Pollutants for Equipment Leaks Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart H, is incorporated by reference as amended through January 22, 2001 (66 FR 6922) [ April 26, 1999, at 64 FedReg 20189 ].

§113.150.Polyvinyl Chloride and Copolymers Production (40 CFR 63, Subpart J).

The Polyvinyl Chloride and Copolymers Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart J, is incorporated by reference as adopted July 10, 2002 (67 FR 45886).

§113.170.Coke Oven Batteries (40 CFR 63, Subpart L).

The Coke Oven Batteries Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart L, [ October 27, 1993, ] is incorporated by reference as amended through October 17, 2000 (65 FR 61744) .

§113.200.Ethylene Oxide Emissions Standards for Sterilization Facilities (40 CFR 63, Subpart O).

The Ethylene Oxide Emissions Standards for Sterilization Facilities Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart O, is incorporated by reference as amended through November 2, 2001 (66 FR 55577) [ December 14, 1999, at 64 FedReg 69637 ].

§113.240.Pulp and Paper Industry [ Production ] (40 CFR 63, Subpart S).

The Pulp and Paper Industry [ Production ] Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart S, is incorporated by reference as amended through May 14, 2001 (66 FR 24268) [ April 12, 1999, at 64 FedReg 17555 ].

§113.250.Halogenated Solvent Cleaning (40 CFR 63, Subpart T).

The Halogenated Solvent Cleaning Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart T, is incorporated by reference as amended through September 8, 2000 (65 FR 54419) [ December 14, 1999, 64 FedReg 69637 ].

§113.260.Group I Polymers and Resins (40 CFR 63, Subpart U).

The Group I Polymers and Resins Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart U, is incorporated by reference as amended through July 16, 2001 (66 FR 36924) [ June 30, 1999, 64 FedReg 35023 ].

§113.280.Epoxy Resins Production and Non-Nylon Polyamides Production (40 CFR 63, Subpart W).

The Epoxy Resins Production and Non-Nylon Polyamides Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart W, is incorporated by reference as amended through May 8, 2000 (65 FR 26491) [ March 8, 1995, is incorporated by reference ].

§113.320.Phosphoric Acid Manufacturing Plants (40 CFR 63, Subpart AA).

The Phosphoric Acid Manufacturing Plants Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart AA, is incorporated by reference as amended through June 13, 2002 (67 FR 40814) [ adopted June 10, 1999, at 64 FedReg 31358 ].

§113.330.Phosphate Fertilizers Production Plants (40 CFR 63, Subpart BB).

The Phosphate Fertilizers Production Plants Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart BB, is incorporated by reference as amended through June 13, 2002 (67 FR 40814) [ adopted June 10, 1999, at 64 FedReg 31358 ].

§113.340.Petroleum Refineries (40 CFR 63, Subpart CC).

The Petroleum Refineries Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart CC, is incorporated by reference as amended through May 25, 2001 (66 FR 28840) [ August 18, 1998, is incorporated by reference ].

§113.350. Off-Site [ Off-site ] Waste and Recovery Operations (40 CFR 63, Subpart DD).

The Off-Site [ Off-site ] Waste and Recovery Operations Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart DD, is incorporated by reference as amended through January 8, 2001 (66 FR 1263) [ July 20, 1999, at 64 FedReg 38950 ].

§113.380.Aerospace Manufacturing and Rework Facilities (40 CFR 63, Subpart GG).

The Aerospace Manufacturing and Rework Facilities Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart GG, is incorporated by reference as amended through December 8, 2000 (65 FR 76941 ) [ September 1, 1998, is incorporated by reference ].

§113.390.Oil and Natural Gas Production Facilities (40 CFR 63, Subpart HH).

The Oil and [ & ] Natural Gas Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart HH, is incorporated by reference as amended through June 29, 2001 (66 FR 34548) [ adopted June 17, 1999, at 64 FedReg 32610 ].

§113.400.Shipbuilding and Ship Repair (Surface Coating) (40 CFR 63, Subpart II).

The Shipbuilding and Ship Repair (Surface Coating) Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart II, is incorporated by reference as amended through October 17, 2000 (65 FR 61744) [ December 17, 1996, is incorporated by reference ].

§113.440.Chemical Recovery Combustion Sources at Kraft, Soda, Sulfite, and Stand-Alone Semichemical Pulp Mills (40 CFR 63, Subpart MM).

The Chemical Recovery Combustion Sources at Kraft, Soda, Sulfite, and Stand-Alone Semichemical Pulp Mills Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart MM, is incorporated by reference as amended through August 6, 2001 (66 FR 41086).

§113.470.Containers (40 CFR 63, Subpart PP).

The Containers Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart PP, is incorporated by reference as amended through January 8, 2001 (66 FR 1263) [ July 20, 1999, at 64 FedReg 38950 ].

§113.490.Individual Drain Systems (40 CFR 63, Subpart RR).

The Individual Drain System Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart RR, is incorporated by reference as amended through January 8, 2001 (66 FR 1263) [ July 20, 1999, at 64 FedReg 38950 ].

§113.500.Closed Vent Systems, Control Devices, Recovery Devices, and Routing to a Fuel Gas System or a Process (40 CFR 63, Subpart SS).

The Closed Vent Systems, Control Devices, Recovery Devices, and Routing to a Fuel Gas System or a Process Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart SS, is incorporated by reference [ as adopted June 29, 1999 at 64 FedReg 34854 and ] as amended through July 12, 2002 (67 FR 46258) [ November 22, 1999, at 64 FedReg 63702 ].

§113.510.Equipment Leaks - Control Level 1 (40 CFR 63, Subpart TT).

The Equipment Leaks - Control Level 1 Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart TT, is incorporated by reference [ as adopted June 29, 1999, at 64 FedReg 34854 and ] as amended through July 12, 2002 (67 FR 46258) [ December 22, 1999 at 64 FedReg 63702 ].

§113.520.Equipment Leaks - Control Level 2 (40 CFR 63, Subpart UU).

The Equipment Leaks - Control Level 2 Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart UU, is incorporated by reference as [ adopted June 29, 1999, at 64 FedReg 34854 and as ] amended through July 12, 2002 (67 FR 46258) [ November 22, 1999, at 64 FedReg 63702 ].

§113.530.Oil-Water Separators and Organic-Water Separators (40 CFR 63, Subpart VV).

The Oil-Water Separators and Organic-Water Separators Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart VV, is incorporated by reference as amended through January 8, 2001 (66 FR 1263) [ July 20, 1999, at 64 FedReg 38950 ].

§113.540.Storage Vessels (Tanks) - Control Level 2 (40 CFR 63, Subpart WW).

The Storage Vessels (Tanks) - Control Level 2 Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart WW, is incorporated by reference as amended through July 12, 2002 (67 FR 46258) [ adopted June 29, 1999, at 64 FedReg 34854 ].

§113.550.Ethylene Manufacturing Process Units: Heat Exchange Systems and Waste Operations (40 CFR 63, Subpart XX).

The Ethylene Manufacturing Process Units: Heat Exchange Systems and Waste Operations Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart XX, is incorporated by reference as adopted July 12, 2002 (67 FR 46258).

§113.560.Generic Maximum Achievable Control Technology Standards [ MACT ] (40 CFR 63, Subpart YY).

The Generic Maximum Achievable Control Technology Standards [ standard ] as specified in 40 Code of Federal Regulations Part 63, Subpart YY, is incorporated by reference as [ adopted June 29, 1999, at 64 FedReg 34854 and as ] amended through February 10, 2003 (68 FR 6635) [ November 22, 1999, at 64 FedReg 63695 and 63702 ].

§113.620.Hazardous Waste Combustors (40 CFR 63, Subpart EEE).

The Hazardous Waste Combustor Maximum achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart EEE, in incorporated by reference as amended through December 19, 2002 (67 FR 77687) [ November 19, 1999 at 64 FedReg 63209 ].

§113.640.Pharmaceuticals Production (40 CFR 63, Subpart GGG).

The Pharmaceuticals Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part [ CFR ] 63, Subpart GGG, is incorporated by reference as amended through April 2, 2002 (67 FR 15486) [ September 21, 1998, is incorporated by reference ].

§113.650.Natural Gas Transmission and Storage Facilities (40 CFR 63, Subpart HHH).

The Natural Gas Transmission and Storage Facilities Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart HHH, is incorporated by reference as amended through February 22, 2002 (67 FR 8202) [ adopted June 17, 1999, at 64 FedReg 32610 ].

§113.670.Group IV Polymers and Resins (40 CFR 63, Subpart JJJ).

The Group IV Polymers and Resins Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart JJJ, is incorporated by reference as amended through August 6, 2001 (66 FR 40903) [ June 30, 1999, at 64 FedReg 35023 ].

§113.690.Portland Cement Manufacturing Industry (40 CFR 63, Subpart LLL).

The Portland Cement Manufacturing Industry Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart LLL, is incorporated by reference as amended through December 6, 2002 (67 FR 72580) [ adopted June 14, 1999, at 64 FedReg 31898 ].

§113.700.Pesticide Active Ingredient Production (40 CFR 63, Subpart MMM).

The Pesticide Active Ingredient Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart MMM, is incorporated by reference as amended through September 20, 2002 (67 FR 59336) [ adopted June 23, 1999, at 64 FedReg 33550 ].

§113.720.Manufacture of Amino/Phenolic Resins (40 CFR 63, Subpart OOO).

The Manufacture of Amino/Phenolic Resins Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart OOO, is incorporated by reference as amended through February 22, 2000 (65 FR 8768) [ adopted January 20, 2000, at 64 FedReg 29420 ].

§113.730.Polyether Polyols Production (40 CFR 63, Subpart PPP).

The Polyether Polyols Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart PPP, is incorporated by reference as amended through May 8, 2000 (65 FR 26491) [ adopted June 1, 1999, at 64 FedReg 29420 ].

§113.740.Primary Copper Smelting (40 CFR 63, Subpart QQQ).

The Primary Copper Smelting Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart QQQ, is incorporated by reference as adopted June 12, 2002 (67 FR 40478).

§113.750.Secondary Aluminum Production (40 CFR 63, Subpart RRR).

The Secondary Aluminum Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart RRR, is incorporated by reference as amended through December 30, 2002 (67 FR 79808).

§113.780.Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units (40 CFR 63, Subpart UUU).

The Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart UUU, is incorporated by reference as adopted April 11, 2002 (67 FR 17762).

§113.790. Publicly [ Publically ] Owned Treatment Works (40 CFR 63, Subpart VVV).

The Publicly [ Publically ] Owned Treatment Works Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart VVV, is incorporated by reference as amended through October 21, 2002 (67 FR 64742) [ adopted October 26, 1999, at 64 FedReg 57572 ].

§113.810.Ferroalloys Production: Ferromanganese and Silicomanganese (40 CFR 63, Subpart XXX).

The Ferroalloys Production: Ferromanganese and Silicomanganese Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart XXX, is incorporated by reference as amended through March 22, 2001 (66 FR 16007) [ adopted May 20, 1999, at 64 FedReg 27450 ].

§113.840.Municipal Solid Waste Landfills (40 CFR 63, Subpart AAAA).

The Municipal Solid Waste Landfills Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart AAAA, is incorporated by reference as adopted January 16, 2003 (68 FR 2227).

§113.860.Manufacturing of Nutritional Yeast (40 CFR 63, Subpart CCCC).

The Manufacturing of Nutritional Yeast Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart CCCC, is incorporated by reference as adopted May 21, 2001 (66 FR 27876).

§113.900.Solvent Extraction for Vegetable Oil Production (40 CFR 63, Subpart GGGG).

The Solvent Extraction for Vegetable Oil Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart GGGG, is incorporated by reference as amended through April 5, 2002 (67 FR 16317).

§113.910.Wet-Formed Fiberglass Mat Production (40 CFR 63, Subpart HHHH).

The Wet-Formed Fiberglass Mat Production Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart HHHH, is incorporated by reference as adopted April 11, 2002 (67 FR 17824).

§113.930.Paper and Other Web Coating (40 CFR 63, Subpart JJJJ).

The Paper and Other Web Coating Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart JJJJ, is incorporated by reference as adopted December 4, 2002 (67 FR 72330).

§113.970.Surface Coating of Large Appliances (40 CFR 63, Subpart NNNN).

The Surface Coating of Large Appliances Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart NNNN, is incorporated by reference as adopted July 23, 2002 (67 FR 48254).

§113.1020.Surface Coating of Metal Coil (40 CFR 63, Subpart SSSS).

The Surface Coating of Metal Coil Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart SSSS, is incorporated by reference as amended through March 17, 2003 (68 FR 12590).

§113.1030.Leather Finishing Operations (40 CFR 63, Subpart TTTT).

The Leather Finishing Operations Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart TTTT, is incorporated by reference as adopted February 27, 2002 (67 FR 9156).

§113.1040.Cellulose Products Manufacturing (40 CFR 63, Subpart UUUU).

The Cellulose Products Manufacturing Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart UUUU, is incorporated by reference as adopted June 11, 2002 (67 FR 40044).

§113.1050.Boat Manufacturing (40 CFR 63, Subpart VVVV).

The Boat Manufacturing Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart VVVV, is incorporated by reference as amended through October 3, 2001 (66 FR 50504).

§113.1070.Rubber Tire Manufacturing (40 CFR 63, Subpart XXXX).

The Rubber Tire Manufacturing Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart XXXX, is incorporated by reference as amended through March 12, 2003 (68 FR 11745).

§113.1260.Friction Materials Manufacturing Facilities (40 CFR 63, Subpart QQQQQ).

The Friction Materials Manufacturing Facilities Maximum Achievable Control Technology standard as specified in 40 Code of Federal Regulations Part 63, Subpart QQQQQ, is incorporated by reference as adopted October 18, 2002 (67 FR 64498).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301876

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-4712


Chapter 116. CONTROL OF AIR POLLUTION BY PERMITS FOR NEW CONSTRUCTION OR MODIFICATION

The Texas Commission on Environmental Quality (TCEQ or commission) proposes the repeal of §116.170; new §§116.120, 116.170, 116.172; and amendments to §§116.12, 116.114, 116.115, 116.143, 116.150, 116.313, 116.315, and 116.715. If adopted, the new and amended sections would be submitted to the United States Environmental Protection Agency as revisions to the state implementation plan (SIP).

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The commission is proposing rule amendments to ensure the timely submission of updated and additional information used to process NSR applications. The commission is proposing that applicants that do not supply requested and necessary information for the processing of a permit application will have their application voided. Applications resubmitted within six months would not be subject to any further permit fees, but the applicant would be required to go back through the public notice process in order to make possible a public review of updated and current information about the proposed facility.

The commission currently requires that persons issued an NSR permit under Chapter 116 begin construction of the facility within 18 months of permit issuance or the permit will be voided. The executive director may grant an additional one time 18-month extension to this period. In the case of flexible permits, the time period to begin construction is specified in the permit with one 12-month extension available. In the large majority of cases, these cumulative time periods are sufficient to resolve issues associated with starting construction. In some cases, particularly when third party litigation is involved, a permit holder may not be able to start construction within the extended time periods. The commission is therefore proposing that an additional extension be available. The commission is specifically proposing that the first 18-month extension may be granted at the permit holder's request. Another extension of up to 18 months may be granted by the executive director to resolve litigation that is not of the permit holder's origin. The commission also believes that economic or other circumstances can arise which would affect the decision to start construction and proposes that the executive director retain discretion to grant a further extension for reasons, not specified in the rule, if the permit holder has demonstrated an intent to build the project by spending at least 15% of the estimated capital cost of the project. Any permit holder receiving a second extension would be required to demonstrate that the project continues to meet all the rules and regulations of the commission and the intent of the Texas Clean Air Act (TCAA), including protection of the public's health and physical property. Any extension of the time to begin construction of a project will subject the permit holder to additional best available control technology and offset review. Because the same conditions that would motivate a new NSR permit holder to seek extensions can also apply to holders of flexible permits, the commission proposes to apply the extension periods and conditions in proposed §116.120 to flexible permits as well. Flexible permits are used to authorize changes and modification to existing facilities.

Emission reductions in the form of offsets are obtained prior to the issuance of an NSR permit to counter the effect of new emissions on air quality. In recent years, the commission has established programs that create emission caps in Houston and Dallas and use emission credits and allowances to maintain the caps. Emission offsets are also considered in these programs and must meet the same certification standards as emission credits in order to achieve consistent protection of air quality. The commission is therefore proposing that emission offsets be certified in the same way as emission credits in 30 TAC Chapter 101, Subchapter H, Emissions Banking and Trading. The commission proposes to retain in Chapter 116 certification of future offsets internal to a facility. In many cases, these future internal offsets are credited for the replacement of existing equipment that must be kept in operation until the new, lower emitting equipment is operational. This is in contrast to offsets used externally to a facility which must occur before it can be credited. Those portions of §116.170 that concern the offset of emissions from rocket engine firing and cleaning would be transferred to a new §116.172.

Emission offsets are reductions that are used to compensate for an emission increase, usually from new construction, in the same geographic area. Consequently, offsets are not permanent reductions but will reappear in the future. In order to make meaningful emission control plans for nonattainment and prevention of significant deterioration areas, the commission needs timely and accurate information on emission reductions that will be used as offsets. The commission is proposing that emission reductions not yet certified and banked as emission credits by the effective date of these rules must be certified and banked by September 1, 2004, in order to be considered for offsets.

The commission requires adequate time to process permit renewals and, for workload management, needs to ensure that those permits closest to expiration are received first. For these reasons, the commission is also proposing that permit renewal applications be submitted at least six months, but no earlier than 18 months, before the permit will expire. By establishing a date for the earliest submission of a renewal application, the commission will also increase the possibility that renewal applications are received under the most current fee tables.

SECTION BY SECTION DISCUSSION

Subchapter A: Definitions

The definition of "offset" in §116.12 would be amended to state that an offset would have to be certified as an emission credit under Chapter 101, Subchapter H, in order to qualify as a reduction. The commission is also proposing minor changes to abbreviations, rule citations, and acronyms to conform with Texas Register formatting in the definitions.

Subchapter B: New Source Review Permits

The proposed amendments to §116.114, Application Review Schedule, would provide for the voiding of an application for a permit or permit amendment in the event of deficient information supplied with the application. After two written notifications of the deficiency, if an applicant fails to make a good faith effort to provide the required information, the executive director will void the application and notify the applicant. To pursue the project, the applicant shall submit an entirely new application with a new Form PI-1. The new application will be subject to the state and federal rules and regulations in place at the time of submittal. If a new application is submitted within six months of the voidance of the original application, the application will be exempt from the fee requirements under §116.140, Applicability. However, the applicant must go through a new technical review and republish public notice.

The commission proposes to amend §116.115, General and Special Conditions, to remove language relating to the voiding of permits and extensions of time to begin construction and transfer this language to a new §116.120.

The new §116.120, Voiding of Permits, addresses the voiding of permits and contains language relocated from §116.115. The relocated language would be amended to allow an additional extension of up to 18 months to begin construction of a project authorized with an NSR permit. This extension would be available in the case of a construction delay caused by litigation, not of the permit holder's origin, associated with the issuance of the permit. The executive director may also issue an extension if the permit holder has spent at least 15% of the estimated cost of construction on preparatory work and has demonstrated that emissions from the facility are in compliance with commission rules and the intent of the TCAA.

The proposed amendments to §116.143, Payment of Fees, would state that the permit application fee must be received before an application will be processed or before the start of any time constraints required of the commission in application processing. This amendment is intended to ensure the commission receives fees needed to cover the expense in permit review and processing. The commission retains the conditions under which fees will or will not be returned to the applicant. If no permit or amendment is issued or if the applicant withdraws the application prior to permit issuance, then one-half of the fee will be refunded. If it is determined that a permit application will meet the requirements of a permit by rule, the applicant is entitled to a refund of the fee difference. The commission proposes to add a qualification for a standard permit or de minimis classification under §116.119, De Minimis Facilities or Sources, to those conditions under which the applicant may withdraw the permit application and receive a refund of the fee difference.

The proposed amendment of §116.150, New Major Source or Major Modification in Ozone Nonattainment Areas, would delete subsection (c) because the time period specified for the application of certain exemptions to nitrogen oxides reductions for sources in the Houston-Galveston and Beaumont-Port Arthur ozone nonattainment areas has expired.

The proposed new §116.170, Applicability of Emission Reductions as Offsets, would establish the requirements for the use of emission reductions as offsets. Most existing reductions must be certified as an emission credit under Chapter 101, Subchapter H, Division 1 or 4. Some reductions that will be used internally may still be certified under Chapter 116. The proposed section would establish the conditions by which future reductions may be used as offsets. The permit for the facility must contain special conditions that specify the date the permit holder must submit to the executive director appropriate and sufficient data that the reduction has occurred. The reduction must be achieved prior to the commencement of the permitted emissions for which the offset is required. The reduction must meet the requirements of Chapter 101, and the permit holder agrees to obtain additional offsets if the executive director determines the reductions do not satisfy the original offset requirements.

The proposed new §116.172, Emissions Offsets from Rocket Engine Firing and Cleaning, would contain the conditions under which emissions from rocket engine firing or cleaning may be offset by alternative or innovative means. These requirements would be transferred to the new section from existing §116.170. The language would be modified to state that information regarding rocket engine offsets would be submitted to the executive director instead of the commission.

Subchapter D: Permit Renewals

The proposed amendment to §116.313, Renewal Application Fees, would correct the commission's address with the correct zip code.

The proposed amendments to §116.315, Permit Renewal Submittal, would state that an application for permit renewal must be submitted at least six months but no earlier than 18 months prior to the permit expiration date. The commission intends to allow sufficient time for preparation and submission of renewals for permit holders whose permit expires within six months of the potential effective date of these proposed rules. Therefore, this provision would not become effective until February 1, 2004. With executive director approval, applications may be submitted before or after these specified time periods.

Subchapter G: Flexible Permits

The proposed amendments to §116.715, General and Special Conditions, would remove language concerning voiding of the permit. The commission proposes to apply the same extension of construction conditions, as stated in the proposed new §116.120, to flexible permits as would be applied to other NSR permits.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

John Davis, Technical Specialist with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed rules are in effect, there may be fiscal implications, which are not anticipated to be significant, for certain units of state and local government that own and operate equipment under NSR permit authorizations. Units of state and local government that do not own or operate equipment affected by NSR permits would not be affected by the proposed rules. The commission anticipates the costs for those affected units of government that have NSR permit applications voided by the commission will face additional public notice costs between $700 and $4,000 due to implementation of the proposed rules.

Units of government most likely to be affected by the proposed rulemaking are municipally-owned electric generating units (power plants) and landfills along with a small number of university research facilities. The total number of sites with existing NSR permits is approximately 8,000, some of which are owned and operated by units of state and local government. The commission currently processes approximately 1,200 new NSR standard permits, 350 NSR permit amendments, and 100 NSR permit renewals annually, a small number of which are submitted by units of state and local government. Of the total number of applications processed, approximately 115 are voided each year by the commission and sent back to the applicant for further processing. These proposed rules would not require additional emission controls or new capital expenses, and would not change existing permit application fee rates.

The proposed rules would require emission reductions to be used as emission offsets, which is an emission reduction that is used to compensate for emission increases from new construction, be certified in the same manner that exists for emission credits. Additionally, the proposed rules would require existing emission credits to be certified and banked as offsets by September 1, 2004, specify conditions under which permit fees may be refunded, specify a time period for the submission of permit renewal applications, and specify which fee schedule will apply to permit renewals.

The proposed rules would also implement updated requirements for applicants that have NSR permit applications voided by the commission. The proposed rules would require the commission to notify an applicant of the voidance and provide specific details concerning the application deficiencies. An applicant with a voided NSR permit application would be required to submit a new application and repeat the public notification process. The costs for public notice vary significantly depending on the location of the facility and its proximity to large metropolitan areas. Small town/city newspapers generally charge much less for publication of a public notice. The commission estimates a large city newspaper would charge approximately $3,000 for the display notice and approximately $450 for the legal notice. A smaller city newspaper would charge approximately $210 for the display notice and $20 for the legal notice. The cost for alternative language publication, if needed, is estimated to be $150. The cost for signs at affected facilities would cost approximately $300. The total costs for public notice associated with an NSR permit application, renewal, or amendment would range from $700 to $4,000, assuming alternative language notice is also required.

This proposal would waive application fees for applicants who have had applications voided and who reapply within six months. If they do not reapply during that period, the commission would require the submission of the full application fee. The fee is .3% of the estimated capital cost of the project starting with the minimum fee of $900 and a statutory maximum of $75,000.

Persons who have been issued an NSR permit currently have 18 months to begin construction of the project. A one time 18-month extension is available to the holder on request. The commission is proposing that another extension of up to 18 months be made available for permit holders whose project has been delayed through litigation. The commission would also consider other circumstances for an extension if the permit holder meets certain conditions. Additionally, the permit holder would have to spend 15% of the cost of the project in preparation for construction. The median range of cost for NSR projects is $8 to $9 million. Fifteen percent of these figures is $1.2 million and $1.35 million, respectively.

PUBLIC BENEFITS AND COSTS

Mr. Davis has also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from enforcement of and compliance with the proposed rules will be more consistent application of emission credits and offsets, and more timely NSR application submissions and receipt of application fees.

The total number of sites with existing NSR permits is approximately 8,000, the majority of which are large industrial businesses. The commission currently processes approximately 1,200 new NSR permits, 350 NSR permit amendments, and 100 NSR permit renewals annually, the majority of which are submitted by industry. Of the total number of applications processed, approximately 115 are voided by the commission and sent back to the applicant for further processing. These proposed rules would not require additional emission controls or new capital expenses, and would not change existing permit application fee rates.

The proposed rules would require that emission reductions used as emission offsets be certified in the same manner that exists for emission credits. Additionally, the proposed rules would require existing emission reductions to be certified and banked as offsets by September 1, 2004, specify conditions under which permit fees may be refunded, specify a time period for the submission of permit renewal applications, and specify which fee schedule will apply to permit renewals.

The proposed rules would also implement updated requirements for applicants that have NSR permit applications voided by the commission. The proposed rules would require the commission to notify an applicant of the voidance and provide specific details concerning the application deficiencies. An applicant with a voided NSR permit application would be required to submit a new application and repeat the public notification process. The costs for public notice vary significantly depending on the location of the facility and its proximity to large metropolitan areas. The commission estimates the total cost for public notice will range from $700 to $4,000 per NSR application.

This proposal would waive application fees for applicants who have had applications voided and who reapply within six months. If they do not reapply during that period, the commission would require the submission of the full application fee. The fee is .3% of the estimated capital cost of the project starting with the minimum fee of $900 up to the statutory maximum of $75,000.

Persons who have been issued an NSR permit currently have 18 months to begin construction of the project. A one time 18-month extension is available to the holder on request. The commission is proposing that another extension of up to 18 months be made available for permit holders whose project has been delayed through litigation. The commission would also consider other circumstances for an extension if the permit holder has spent 15% of the cost of the project. The median range of cost for NSR projects is $8 to $9 million. Fifteen percent of these figures is $1.2 million and $1.35 million, respectively.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There may be adverse fiscal implications, which are not anticipated to be significant, for small and micro-businesses due to implementation of the proposed rules, which are intended to make procedural changes to NSR permit application requirements. The commission anticipates there will be additional fiscal implications for only those small and micro-businesses with a voided NSR permit application that would be required to submit a new application and repeat the public notification process.

The total number of sites with existing NSR permits is approximately 8,000, a small number of which may be small or micro-businesses. The commission currently processes approximately 1,200 new NSR permits, 350 NSR permit amendments, and 100 NSR permit renewals annually, a small number of which may be submitted by small or micro-businesses that would be affected by the proposed rules. Of the total number of applications processed, approximately 115 are voided by the commission and sent back to the applicant for further processing.

This rulemaking would require the commission to notify an applicant of the voidance and provide specific details concerning the application deficiencies. An applicant with a voided NSR permit application would be required to submit a new application and repeat the public notification process. The costs for public notice vary significantly depending on the location of the facility and its proximity to large metropolitan areas. The commission estimates the total cost for public notice will range from $700 to $4,000 per NSR application.

This proposal would waive application fees for applicants who have had applications voided and who reapply within six months. If they do not reapply during that period, the commission would require the submission of the full application fee. The fee is .3% of the estimated capital cost of the project starting with the minimum fee of $900 and the statutory maximum of $75,000.

The following is an analysis of the potential additional costs per employee for small or micro-businesses affected by the proposed rules. Small and micro-businesses are defined as having fewer than 100 or 20 employees, respectively. A small business which has to go through the public notification process due to a voided NSR permit application would pay an average of between approximately $700 to $4,000 per notice or $7.00 to $40 per employee, while a micro-business would have to pay an average of between $35 to $200 per employee to comply with the proposed rules. Small businesses that do not reapply for a voided permit within six months would be required to pay application fees. This cost would vary according to the size of the project, and would cause an increase in the cost per employee.

Small businesses would also be eligible to apply for the additional extension of time to begin construction and would be subject to the same requirement to spend 15% of the cost of the project in preparation. Small businesses are typically under the median cost of an NSR project and would be required to spend proportionately less to qualify for the second extension.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission has reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rules do not meet the definition of a "major environmental rule." Major environmental rule means a rule, the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure, and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rules would require that emission reductions used as emission offsets be certified in a manner consistent with other TCEQ regulations, establish a deadline for the certification of existing reductions as emission offsets, establish procedures for voiding permit applications, establish conditions under which permit fees may be refunded, specify a time period for the submission of permit renewal applications, and specify which fee schedule will apply to permit renewals. These proposed rules would not require additional emission controls or new capital expenses. Applicants who have their applications voided would be required to submit a new application and repeat the public notification process. Depending on location, this notification can cost from $700 to $4,000. This expense would only be incurred following a lack of action from the applicant after being notified of deficiencies in its application.

In addition, Texas Government Code, §2001.0225, only applies to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law. The proposed rules in Chapter 116 are not subject to the regulatory analysis provisions of §2001.0225(b), because the proposed rules do not meet any of the statute's four applicability requirements. The commission invites public comment regarding the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission completed a takings impact assessment for the proposed rules. Promulgation and enforcement of the rules will not burden private real property. The proposed rules will not affect private property in a manner which restricts or limits an owner's right to the property that would otherwise exist in the absence of a governmental action. Therefore, the proposed rules do not constitute a taking under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the proposal is a rulemaking identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11, and therefore, will require that applicable goals and policies of the Texas Coastal Management Program (CMP) be considered during the rulemaking process.

The commission's preliminary consistency determination for the proposed rules in accordance with 31 TAC §505.22 found that the proposed rulemaking is consistent with the applicable CMP goal to protect and preserve the quality and values of coastal natural resource areas (31 TAC §501.12(1)), and the policy which requires that the commission protect air quality in coastal areas (31 TAC §501.14(q)). The proposed rules would require emission reductions used as emission offsets be certified in a manner consistent with other TCEQ regulations, establish a deadline for the certification of existing reductions as emission offsets, establish procedures for voiding permit applications, establish conditions under which permit fees may be refunded, specify a time period for the submission of permit renewal applications, and specify which fee schedule will apply to permit renewals. No new emissions would be authorized if these proposals are adopted. Therefore, the rulemaking is consistent with the CMP. The commission invites public comment regarding the consistency of the proposed rules with the CMP.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMITS PROGRAM

New source review is an applicable requirement under 30 TAC Chapter 122, Federal Operating Permits. These amendments affect the issuance, renewal, or extension of a new source review permit. Because they do not address permit content, the amendments do not require changes to Federal Operating Permits.

ANNOUNCEMENT OF HEARING

The commission will hold a public hearing on this proposal in Austin on April 24, 2003 at 10:00 a.m. in Building F, Room 3202, at the commission's central office located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not be permitted during the hearing; however, commission staff members will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs who are planning to attend the hearing should contact the Office of Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Joyce Spencer, Office of Environmental Policy, Analysis, and Assessment, Texas Commission on Environmental Quality, MC 205, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 2003-003-116-AI. Comments must be received by 5:00 p.m., May 5, 2003. Copies of the proposed rules can be obtained from the commission's website at http://www.tceq.state.tx.us/oprd . For further information, please contact Clifton Wise, Policy and Regulations Division, at (512) 239-2263.

Subchapter A. DEFINITIONS

30 TAC §116.12

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The amendments are also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; and §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants. The amendment is also proposed under 42 United States Code (USC), §7410(a)(2)(A), which requires SIPs to include enforceable emission limitations and other control measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights.

The proposed amendment implements TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, and 382.016.

§116.12.Nonattainment Review Definitions.

Unless specifically defined in the TCAA [ Texas Clean Air Act (TCAA) ] or in the rules of the commission, the terms used by the commission have the meanings commonly ascribed to them in the field of air pollution control. The terms in this section are applicable to permit review for major source construction and major source modification in nonattainment areas. In addition to the terms which are defined by the TCAA, and in §101.1 of this title (relating to Definitions), the following words and terms, when used in §116.150 and §116.151 of this title (relating to Nonattainment Review), shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (6) (No change.)

(7) Contemporaneous period--As follows.

(A) For major sources with the potential to emit 250 tons per year (tpy) [ tpy ] or more of a nonattainment pollutant, the period between:

(i) - (ii) (No change.)

(B) - (C) (No change.)

(8) De minimis threshold test (netting)--A method of determining if a proposed emission increase will trigger nonattainment review. The summation of the proposed increase with all other creditable source emission increases and decreases during the contemporaneous period is compared to the MAJOR MODIFICATION column of Table I (in tons per year [ tpy ]) for that specific nonattainment area. If the major modification level is exceeded, then nonattainment review is required.

(9) Lowest achievable emission rate--For any emitting facility, that rate of emissions of a contaminant which does not exceed the amount allowable under applicable New Source Performance Standards promulgated by the EPA [ United States Environmental Protection Agency ] under the FCAA [ Federal Clean Air Act ], §111, and which reflects the following:

(A) - (B) (No change.)

(10) Major facility/stationary source--Any facility/stationary source which emits, or has the potential to emit, the amount specified in the MAJOR SOURCE column of Table I of this section or more of any air contaminant (including volatile organic compounds (VOCs) ) for which a National Ambient Air Quality Standard (NAAQS) has been issued. Any physical change that would occur at a stationary source not qualifying as a major stationary source in Table I of this section, if the change would constitute a major stationary source by itself. A major stationary source that is major for VOCs [ volatile organic compounds ] or nitrogen oxides shall be considered major for ozone. The fugitive emissions of a stationary source shall not be included in determining for any of the purposes of this definition whether it is a major stationary source, unless the source belongs to one of the categories of stationary sources listed in [ Title ] 40 Code of Federal Regulations[ , Part ] §51.165(a)(1)(iv)(C).

(11) Major modification--As follows.

(A) Any physical change in, or change in the method of operation of a facility/stationary source that causes a significant net emissions increase for any air contaminant for which a National Ambient Air Quality Standard (NAAQS) [ an NAAQS ] has been issued. At a facility/stationary source that is not major prior to the increase, the increase by itself must equal or exceed that specified in the MAJOR SOURCE column of Table I of this section. At an existing major facility/stationary source, the increase must equal or exceed that specified in the MAJOR MODIFICATION column of Table I.

Figure: 30 TAC §116.12(11)(A)

(B) (No change.)

(12) (No change.)

(13) Net emissions increase--The amount by which the sum of the following exceeds zero: the total increase in actual emissions from a particular physical change or change in the method of operation at a stationary source, plus any sourcewide creditable contemporaneous emission increases, minus any sourcewide creditable contemporaneous emission decreases.

(A) - (D) (No change.)

(E) At major sources with the potential to emit 250 tons per year [ tpy ] or more of a nonattainment pollutant:

(i) - (ii) (No change.)

(F) For all major sources of nitrogen oxides (NOx ) [ NO x ] in ozone nonattainment areas, increases and decreases of NO x are creditable only if they resulted from authorizations or applications received on or after November 15, 1992.

(14) Offset ratio--For the purpose of satisfying the emissions offset reduction requirements of the FCAA, §173(a)(1)(A), the emissions offset ratio is the ratio of total actual reductions of emissions to total allowable emissions increases of such pollutants. The minimum offset ratios are included in Table I of this section under the definition of major modification. In order for a reduction to qualify as an offset, it must be certified as an emission credit under Chapter 101, Subchapter H, Division 1 or 4 of this title (relating to Emission Credit Banking or Trading; or Discrete Emission Credit Banking and Trading), except as provided for in §116.170(b) of this title (relating to Applicability of Emission Reductions as Offsets). The reduction must not have been relied on in the issuance of a previous nonattainment or prevention of significant deterioration permit [ to be considered creditable, offsets must be enforceable, permanent, quantifiable through a replicable methodology, real, and surplus. The reduction must be surplus at the time it was created as well as when it is used. The reduction must have occurred after January 1, 1990, and have been reported or represented in the 1990 or a subsequent emissions inventory. The reduction must not have been relied on in the issuance of a previous nonattainment or prevention of significant deterioration permit ].

(15) Potential to emit--The maximum capacity of a facility/stationary source to emit a pollutant under its physical and operational design. Any physical or enforceable operational limitation on the capacity of the facility/stationary source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. Secondary emissions, as defined in 40 Code of Federal Regulations §51.165(a)(1)(viii), do not count in determining the potential to emit for [ of ] a stationary source.

(16) - (17) (No change.)

(18) Stationary source--Any building, structure, facility, or installation which emits or may emit any air pollutant subject to regulation under the FCAA [ Federal Clean Air Act ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301868

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


Subchapter B. NEW SOURCE REVIEW PERMITS

1. PERMIT APPLICATION

30 TAC §§116.114, 116.115, 116.120

STATUTORY AUTHORITY

The new and amended sections are proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The new and amended sections are also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; and §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission.

The proposed new and amended sections implement TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, and 382.0518.

§116.114.Application Review Schedule.

(a) (No change.)

(b) Voiding of deficient application.

(1) (No change.)

(2) If an applicant fails to make such good faith effort, the executive director shall void the application and notify the applicant of the voidance and the remaining deficiencies in the voided application . If a new [ the ] application is submitted [ resubmitted ] within six months of the voidance, it shall meet the requirements of §116.111 of this title (relating to General Application) but will be exempt from the requirements of §116.140 of this title (relating to Applicability).

(c) (No change.)

§116.115.General and Special Conditions.

(a) (No change.)

(b) General conditions. Holders of permits, special permits, standard permits, and special exemptions shall comply with the following:

(1) (No change.)

(2) the following general conditions if the permit or amendment is issued or amended on or after August 16, 1994, regardless of whether they are specifically stated within the permit document.

[(A) Voiding of permit. A permit or permit amendment under this chapter is automatically void if the permit holder does one of the following:]

[(i) fails to begin construction within 18 months of date of issuance. The executive director may grant a one-time 18-month extension to the date to begin construction;]

[(ii) discontinues construction for more than 18 consecutive months prior to completion; or]

[(iii) fails to complete construction within a reasonable time.]

(A) [ (B) ] Report of construction progress. The permit holder shall report start of construction, construction interruptions exceeding 45 days, and completion of construction. The report shall be given to the appropriate regional office of the commission not later than 15 working days after occurrence of the event.

(B) [ (C) ] Start-up notification.

(i) The permit holder shall notify the appropriate air program regional office of the commission prior to the commencement of operations of the facilities authorized by the permit. The notification must be made in such a manner as to allow a representative of the commission to be present at the commencement of operations.

(ii) The permit holder shall provide a separate notification for the commencement of operations for each unit of phased construction, which may involve a series of units commencing operations at different times.

(iii) Prior to operation of the facilities authorized by the permit, the permit holder shall identify to the Office of Permitting, Remediation, and Registration the source or sources of allowances to be utilized for compliance with Chapter 101, Subchapter H, Division 3 of this title (relating to Mass Emissions Cap and Trade Program).

(C) [ (D) ] Sampling requirements.

(i) If sampling is required, the permit holder shall contact the commission's Office of Compliance and Enforcement prior to sampling to obtain the proper data forms and procedures.

(ii) All sampling and testing procedures must be approved by the executive director and coordinated with the regional representatives of the commission.

(iii) The permit holder is also responsible for providing sampling facilities and conducting the sampling operations or contracting with an independent sampling consultant.

(D) [ (E) ] Equivalency of methods. The permit holder must demonstrate or otherwise justify the equivalency of emission control methods, sampling or other emission testing methods, and monitoring methods proposed as alternatives to methods indicated in the conditions of the permit. Alternative methods shall be applied for in writing and must be reviewed and approved by the executive director prior to their use in fulfilling any requirements of the permit.

(E) [ (F) ] Recordkeeping. The permit holder shall:

(i) maintain a copy of the permit along with records containing the information and data sufficient to demonstrate compliance with the permit, including production records and operating hours;

(ii) keep all required records in a file at the facility site. If, however, the facility site normally operates unattended, records must be maintained at an office within Texas having day-to-day operational control of the facility site;

(iii) make the records available at the request of personnel from the commission or any local air pollution control agency having jurisdiction over the site. Upon request, the commission shall make any such records of compliance available to the public in a timely manner;

(iv) comply with any additional recordkeeping requirements specified in special conditions attached to the permit;

(v) retain information in the file for at least two years following the date that the information or data is obtained; and

(vi) for persons certifying and registering a federally-enforceable emission limitation in accordance with §116.611 of this title (relating to Registration To Use a Standard Permit), retain all records demonstrating compliance for at least five years.

(F) [ (G) ] Maximum allowable emission rates. The total emissions of air contaminants from any of the sources of emissions must not exceed the values stated on the table attached to the permit entitled "Emission Sources--Maximum Allowable Emission Rates."

(G) [ (H) ] Maintenance of emission control. The permitted facilities shall not be operated unless all air pollution emission capture and abatement equipment is maintained in good working order and operating properly during normal facility operations. The permit holder shall provide notification for emissions events and maintenance in accordance with §§101.201, 101.211, and 101.221 of this title (relating to Emissions Event Reporting and Recordkeeping Requirements; Scheduled Maintenance, Startup [ Start-up ], and Shutdown Reporting and Recordkeeping Requirements; and Operational Requirements).

(H) [ (I) ] Compliance with rules.

(i) Acceptance of a permit by an applicant constitutes an acknowledgment and agreement that the permit holder will comply with all rules, regulations, and orders of the commission issued in conformity with the TCAA and the conditions precedent to the granting of the permit.

(ii) If more than one state or federal rule or regulation or permit condition are applicable, the most stringent limit or condition shall govern and be the standard by which compliance shall be demonstrated.

(iii) Acceptance includes consent to the entrance of commission employees and agents into the permitted premises at reasonable times to investigate conditions relating to the emission or concentration of air contaminants, including compliance with the permit.

(c) (No change.)

§116.120.Voiding of Permits.

A permit or permit amendment under this chapter is void if the permit holder does one of the following:

(1) fails to begin construction within 18 months, or a time period specified in the permit, of date of issuance. At the request of the permit holder, the executive director may grant an 18-month extension to begin construction. Permits issued to holders who have received extensions will be subject to further best available control technology review and reevaluation of netting or offsets as applicable. An additional extension of up to 18 months may be granted by the executive director if;

(A) the permit holder becomes involved in litigation not of the permit holder's initiation regarding the issuance of the permit, and demonstrates that emissions from the facility will comply with all rules and regulations of the commission and the intent of the TCAA, including protection of the public's health and physical property; or

(B) the permit holder has spent 15% of the estimated capital cost of the project on preparation for construction, and demonstrates that emissions from the facility will comply with all rules and regulations of the commission and the intent of the TCAA, including protection of the public's health and physical property.

(2) discontinues construction for more than 18 consecutive months prior to completion; or

(3) fails to complete construction within a reasonable time.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301869

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


4. PERMIT FEES

30 TAC §116.143

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission; and §382.061, concerning Application, Permit, and Inspection Fees, which requires the commission to adopt, charge, and collect fees for each application for a permit or renewal of a permit.

The proposed amendment implements TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, 382.0518, and 382.061.

§116.143.Payment of Fees.

All permit fees will be remitted in the form of a check, certified check, electronic funds transfer, or money order made payable to the Texas Commission on Environmental Quality (TCEQ) or TCEQ and delivered with the application for permit or amendment to the TCEQ, P.O. Box 13088, MC 214, Austin, Texas 78711-3088 [ 78711-3087 ]. Fees must be paid at the time an application for a permit or amendment is submitted. Applications will not be considered for review nor will any time constraints required of TCEQ for application processing begin until a fee is received [ Required fees must be received before the agency will begin examination of the application ].

(1) (No change.)

(2) Return of fees. [ Fees must be paid at the time an application for a permit or amendment is submitted. If no permit or amendment is issued by the agency or if the applicant withdraws the application prior to issuance of the permit or amendment, one-half of the fee will be refunded except that the entire fee will be refunded for any such application for which an exemption under Chapter 106 of this title (relating to Exemptions from Permitting) is allowed. ] No fees will be refunded after a deficient application has been voided or after a permit or amendment has been issued by the agency. Fees will be returned under the following conditions.

(A) If no permit or amendment is issued by the agency or if the applicant withdraws the application prior to issuance of the permit or amendment, one-half of the fee will be refunded.

(B) The fee difference will be refunded if a permit application is withdrawn because the proposed construction or modification is determined to meet the requirements of:

(i) a standard permit issued under Subchapter F of this chapter (relating to Standard Permits);

(ii) a permit by rule under Chapter 106 of this title (relating to Permits by Rule); or

(iii) the conditions of §116.119 of this title (relating to De Minimis Facilities or Sources).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301870

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


5. NONATTAINMENT REVIEW

30 TAC §116.150

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; and §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission.

The proposed amendment implements TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, 382.0518, and 382.061.

§116.150.New Major Source or Major Modification in Ozone Nonattainment Areas.

(a) - (b) (No change.)

[(c) For sources located in the Houston/Galveston (HGA) ozone nonattainment area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties) or the Beaumont/Port Arthur (BPA) ozone nonattainment area (Hardin, Jefferson, and Orange counties), the following shall apply to NO x emissions.]

[(1) For permit applications in review after April 12, 1995, and declared administratively complete on or before December 31, 1997:]

[(A) Subsection (a)(1), (2), and (4) of this section do not apply.]

[(B) The requirements of subsection (a)(3) of this section apply and shall be made a part of the source's permit. However, the requirements shall be held in abeyance for a period ending no sooner than January 1, 1998. The Commission may on or after January 1, 1998, and after making the determinations described in paragraph (2) of this subsection, require the source to implement the permit requirements imposed pursuant to the requirements of subsection (a)(3) of this section. If the Commission requires implementation, the source shall obtain the NO x offsets as specified in subsection (a)(3) of this section no later than January 1, 2000.]

[(C) Documentation of proposed increases of NO x equal to or greater than 40 tons per year, as well as documentation of netting calculations for these increases, shall be submitted.]

[(D) A source otherwise subject to the requirements of subsection (a)(1) - (4) of this section may, at its option, comply with any of those requirements.]

[(2) The commission has reviewed the results of the Urban Airshed Model for the HGA and BPA ozone nonattainment areas, using data from the Coastal Oxidant Assessment for Southeast Texas study, in accordance with the United States Environmental Protection Agency document "Guideline for Determining the Applicability of Nitrogen Oxides Requirements under Section 182(f)" (December 1993). The commission has determined that additional NO x reductions in the HGA and BPA nonattainment areas will contribute to attainment of the National Ambient Air Quality Standards for ozone. The commission will notify sources which have permit requirements in abeyance pursuant to paragraph (1)(B) of this subsection, that the period of abeyance has ended. The source shall obtain the NO x offsets as specified in subsection (a)(3) of this section no later than January 1, 2000.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301871

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


7. EMISSION REDUCTIONS: OFFSETS

30 TAC §116.170

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Commission on Environmental Quality or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeal is proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The repeal is also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; and §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air.

The proposed repeal implements TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, and 382.012.

§116.170.Applicability for Reduction Credits.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301872

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


30 TAC §116.170, §116.172

STATUTORY AUTHORITY

The new sections are proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The new sections are also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; and §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission. The new sections are also proposed under 42 USC, §7410(a)(2)(A), which requires SIPs to include enforceable emission limitations and other control measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission rights.

The proposed new sections implement TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, and 382.0518.

§116.170.Applicability of Emission Reductions as Offsets.

(a) No reduction may be used as an offset unless it has been certified as an emission credit under Chapter 101, Subchapter H, Division 1 or 4 of this title (relating to Emission Credit Banking and Trading; or Discrete Emission Credit Banking and Trading), except as provided for in subsection (c) of this section.

(b) Reductions not yet certified and banked as an emission credit must be certified and banked with the executive director by September 1, 2004 in order to be considered for use as an offset.

(c) A future reduction may be used as an offset for a permit provided that:

(1) the permit contains special conditions that specify the date by which the permit holder must submit to the executive director appropriate and sufficient data to verify that the reduction has occurred and the reduction is provided by start of operation;

(2) the reduction must be achieved prior to commencement of the permitted emissions for which the offset is required;

(3) the reduction meets all of the requirements of Chapter 101, Subchapter H, Division 1 or 4 of this title when submitted to the executive director for review per the requirements of the issued permit; and

(4) the permit holder agrees to obtain additional offsets if the review by the executive director indicates the reductions do not satisfy the original offset requirements.

§116.172.Emissions Offsets from Rocket Engine Firing and Cleaning.

Emissions increases from rocket engine and motor firing, and cleaning related to such firing, at an existing or modified major source, shall be allowed to be offset by alternative or innovative means, provided the following conditions are met.

(1) Any modification proposed is solely for the purpose of expanding the testing of rocket engines or motors at an existing source permitted to test such engines as of November 15, 1990.

(2) The source demonstrates to the satisfaction of the executive director that it has used all reasonable means to obtain and utilize offsets, as determined on an annual basis, for the emissions increases beyond allowable levels, that all available offsets are being used, and that sufficient offsets are not available to the source.

(3) The source has obtained a written finding from the Department of Defense, Department of Transportation, National Aeronautics and Space Administration, or other appropriate federal agency, that the testing of rocket motors or engines at the facility is required for a program essential to the national security.

(4) The source will comply with an alternative measure, imposed by the executive director, designed to offset any emissions increases beyond permitted levels not directly offset by the source. In lieu of imposing any alternative offset measures, the executive director may impose an emissions fee to be paid, which shall be an amount no greater than 1.5 times the average cost of stationary source control measures adopted in that area during the previous three years.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301873

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


Subchapter D. PERMIT RENEWALS

30 TAC §116.313, §116.315

STATUTORY AUTHORITY

The amendments are proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The amendments are also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission; and §382.061, concerning Application, Permit, and Inspection Fees, which requires the commission to adopt, charge, and collect fees for each application for a permit or renewal of a permit.

The proposed amendments implement TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, 382.0518, and 382.061.

§116.313.Renewal Application Fees.

(a) (No change.)

(b) Fees are due and payable at the time the renewal application is filed. No fee will be accepted before the permit holder has been notified by the commission that the permit is scheduled for review. All permit review fees shall be remitted by check, certified check, electronic funds transfer, or money order payable to the Texas Commission on Environmental Quality (TCEQ) and mailed to the TCEQ, P.O. Box 13088, MC 214, Austin, Texas 78711-3088 [ 78711-3087 ]. Required fees must be received before the agency will consider an application to be complete.

§116.315.Permit Renewal Submittal.

(a) An application for renewal must be submitted at least six months, but no earlier than 18 months, [ 90 days ] prior to expiration of the permit or the permit will expire. This subsection will be effective on February 1, 2004 [ The executive director may extend the time period for submitting an application ].

(b) With executive director approval, the application may be submitted before or after the time period specified in subsection (a) of this section.

(c) [ (b) ] Any permit issued:

(1) before December 1, 1991, is subject for review 15 years after the date of issuance;

(2) on or after December 1, 1991, is subject for review every ten years after the date of issuance.

(3) at non-federal sources on or after December 1, 1991, may, for cause, contain a provision requiring renewal between five and ten years.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301874

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017


Subchapter G. FLEXIBLE PERMITS

30 TAC §116.715

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103, concerning Rules, and §5.105, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under TCAA, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; §382.012, concerning State Air Control Plan, which authorizes the commission to develop a general, comprehensive plan for control of the state's air; §382.016, concerning Monitoring Requirements, Examination of Records, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.051, concerning Permitting Authority of Commission Rules, which authorizes the commission to issue permits for the construction of a new facility or modification of an existing facility; §382.0513, concerning Permit Conditions, which authorizes the commission to establish and enforce permit conditions; §382.0515, concerning Application for Permit, which authorizes the commission to require a permit application with plans and specifications necessary for the commission to determine if the facility will comply with applicable state and federal regulations and the intent of the TCAA; §382.0517, concerning Determination of Administrative Completion of Application, which authorizes the commission to determine when an application is administratively complete; §382.0518, concerning Preconstruction Permit, which requires persons planning the construction or modification of a facility to obtain a permit from the commission; and §382.061, concerning Application, Permit, and Inspection Fees, which requires the commission to adopt, charge, and collect fees for each application for a permit or renewal of a permit.

The proposed amendment implements TWC, §5.103 and §5.105; and TCAA, §§382.002, 382.011, 382.012, 382.016, 382.051, 382.0513, 382.0515, 382.0517, 382.0518, and 382.061.

§116.715.General and Special Conditions.

(a) - (b) (No change.)

(c) The following general conditions shall be applicable to every flexible permit.

(1) [ Voiding of permit. A flexible permit or flexible permit amendment under this subchapter is automatically void if the holder fails to complete construction as specified in the flexible permit. Upon request, the executive director may grant a one time 12-month extension of the date to complete construction. ] This section does not apply to physical or operational changes allowed without an amendment under §116.721 of this title (relating to Amendments and Alterations).

(2) - (8) (No change.)

(9) Maintenance of emission control. The facilities covered by the flexible permit shall not be operated unless all air pollution emission capture and abatement equipment is maintained in good working order and operating properly during normal facility operations. Notification for emissions events and scheduled maintenance shall be made in accordance with §101.201 and §101.211 of this title (relating to Emissions Event Reporting and Recordkeeping Requirements; and Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements ).

(10) (No change.)

(d) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301875

Stephanie Bergeron

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 239-5017