TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

Chapter 101. GENERAL AIR QUALITY RULES

Subchapter A. GENERAL RULES

30 TAC §101.1

The Texas Commission on Environmental Quality (commission) adopts an amendment to §101.1 without change to the proposed text as published in the February 25, 2005, issue of the Texas Register (30 TexReg 1009), and will not be republished.

The amendment will be submitted to the United States Environmental Protection Agency (EPA) as a revision to the state implementation plan (SIP).

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULE

After adoption of the Federal Clean Air Act (FCAA) Amendments of 1990, the EPA classified the designated four areas of Texas that failed to meet the one-hour national ambient air quality standard (NAAQS) for the air contaminant ozone. Each area was classified by the EPA based on the amount by which it exceeded the ozone NAAQS of 0.12 parts per million (ppm) based on a peak one-hour concentration of ozone. Eight counties in the Houston-Galveston-Brazoria (HGB) area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller) were classified as Severe and El Paso County was classified as Serious. Four counties in the Dallas-Fort Worth (DFW) area (Collin, Dallas, Denton, and Tarrant) were originally classified as Moderate and then reclassified to Serious. Three counties in the Beaumont-Port Arthur (BPA) area (Hardin, Jefferson, and Orange) were originally classified as Serious, then reclassified to Moderate, and reclassified again, in 2004, to Serious.

Effective June 15, 2004, EPA designated and classified four areas in Texas as nonattainment for the eight-hour ozone standard (69 FR 23858). The HGB area was classified as Moderate and contains the same eight counties that were classified as Severe under the one- hour standard: Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller. The DFW area was also classified as Moderate and consists of the counties classified as Serious under the one-hour standard: Dallas, Tarrant, Denton, and Collin Counties, plus five additional counties: Ellis, Johnson, Kaufman, Parker, and Rockwall. The BPA area was classified as Marginal and consists of the three counties classified as Serious under the one- hour standard: Hardin, Jefferson, and Orange. The El Paso area consisting of El Paso County is now designated as attainment. In addition, the San Antonio area, consisting of Bexar, Comal, and Guadalupe Counties, was also designated as nonattainment under the FCAA, Title I, Part D, Subpart 1 (42 United States Code (USC), §7402), but with a deferred effective date of September 30, 2005, due to its status as an early action compact (EAC) area. EPA noted in the eight-hour ozone designation and classification rulemaking that EAC areas will continue to remain eligible for deferred effective dates as long as they remain in compliance with their compact agreements. The classification of nonattainment areas was codified in 40 Code of Federal Regulations (CFR), and this amendment will update the commission rules to match the new federal classifications.

On November 29, 2004, EPA added five volatile organic compounds (VOC) to the list of compounds in 40 CFR §51.100(s) that, for lack of reactivity, are excluded from the definition of VOC. The definition of VOC is based on compound reactivity and the compound's tendency to produce ozone. The compounds include 1,1,1,2,2,3,3-heptafluoro-3-methoxy-propane (known as HFE-7000); 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-dodecafluoro-2-(trifluoromethyl) hexane (known as HFE-7500, HFE-s702, T-7145, and L-15381); 1,1,1,2,3,3,3-heptafluoropropane (known as HFC 227ea); methyl formate; and t-butyl acetate (also known as tertiary butyl acetate, TBAC, or TBAc). EPA revised the definition of VOC to say that TBAC will not be a VOC for purposes of VOC emissions limitations or VOC content requirement, but will continue to be a VOC for purposes of all recordkeeping, emissions reporting, and inventory requirements that apply to a VOC. The commission is deleting the list of compounds from the commission definition and referring to the federal definition in 40 CFR §51.100, as amended on November 29, 2004 (69 FR 69290 - 69304).

Adopted changes to the 30 TAC Chapter 116 corresponding rulemaking are also published in this issue of the Texas Register .

SECTION DISCUSSION

§101.1, Definitions

The commission amends the definition of nonattainment area in paragraph (67) to reflect the classifications under the existing one-hour standard and to add the classifications under the new eight-hour ozone standard. The classifications under the new standard are the Moderate classification for the HGB and DFW areas, including five additional counties, and the Marginal classification for the BPA area. The San Antonio area is designated as nonattainment under the FCAA, Title I, Part D, Subpart 1 (42 USC, §7402), but with a deferred effective date of September 30, 2005, due to its status as an EAC area. The El Paso area is in attainment for the eight-hour ozone standard and therefore is not listed under new subparagraph (F). Previously existing subparagraph (F) is relettered as subparagraph (G).

The commission also amends the definition of VOC in paragraph (111) by deleting the existing list of compounds and by referring to the federal definition in 40 CFR §51.100(s), except paragraphs (2) - (4), as amended on November 29, 2004 (69 FR 69290 - 69304). The federal definition includes a special case for the compound t-butyl acetate, which will not be considered a VOC for emission limitation or content purposes but will be considered a VOC for emissions reporting and inventories and photochemical modeling.

The commission also made administrative changes for readability, conformity with the drafting standards in the Texas Legislative Council Drafting Manual , November 2004, and consistency with other commission rules.

FINAL REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the adopted rulemaking in light of the regulatory impact analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking does not meet the definition of a "major environmental rule." Furthermore, it does not meet any of the four applicability requirements listed in Texas Government Code, §2001.0225(a). A "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 amendment revises the definition of nonattainment area to reflect the new classifications under the eight-hour standard for the BPA, DFW, and HGB areas; adds the five newly designated counties in the DFW area; and adds the San Antonio area. The amendment also incorporates a change to the federal definition for VOC, which became effective November 29, 2004. The amendment will not 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.

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 amendment does not exceed a standard set by federal law or exceed an express requirement of state law. There is no contract or delegation agreement that covers the topic that is the subject of this rulemaking. Finally, this rulemaking was not developed solely under the general powers of the agency, but is authorized by specific sections of the Texas Health and Safety Code and Texas Water Code, which are cited in the STATUTORY AUTHORITY section of this preamble. Therefore, this rulemaking is not subject to the regulatory analysis provisions of Texas Government Code, §2001.0225(b), because the amendment does not meet any of the four applicability requirements.

TAKINGS IMPACT ASSESSMENT

The commission completed a takings impact analysis for the adopted amendment. The specific purpose of this rulemaking is to amend the definition of nonattainment area to reflect the new classifications for the BPA, DFW, and HGB areas; add the five newly designated counties in the DFW area; and add the San Antonio area. The EPA has indicated that the one- hour standard will be revoked on June 15, 2005. The amendment also incorporates a change to the federal definition for VOC, which became effective November 29, 2004. Promulgation and enforcement of the amendment would be neither a statutory nor a constitutional taking because it does not affect private real property. Specifically, the amendment does not affect private property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of a governmental action. Therefore, the amendment does not constitute a takings under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission determined that this rulemaking relates to an action or actions subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources Code, §§33.201 et seq .), and the commission rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the CMP. As required by §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Coastal Management Program, commission rules governing air pollutant emissions must be consistent with the applicable goals and policies of the CMP. The commission reviewed this action for consistency with the CMP goals and policies in accordance with the rules of the Coastal Coordination Council, and determined that the action is consistent with the applicable CMP goals and policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas (31 TAC §501.12(l)). No new sources of air contaminants are authorized and the adopted revisions maintain the same level of emissions control as the previously existing rules. The CMP policy applicable to this rulemaking action is the policy that commission rules comply with federal regulations in 40 CFR, to protect and enhance air quality in the coastal areas (31 TAC §501.14(q)). This rulemaking action complies with 40 CFR Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirms that this rulemaking action is consistent with CMP goals and policies.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMITS PROGRAM

Section 101.1 is an applicable requirement under 30 TAC Chapter 122, Federal Operating Permits. Upon the effective date of this rulemaking, owners or operators subject to the Federal Operating Permit Program will be required to certify compliance with amended §101.1.

PUBLIC COMMENT

The commission conducted a public hearing on this proposal in Austin on March 17, 2005. Two comments were received during the public comment period, which closed on March 28, 2005. PVI Industries, LLC supported the removal of tertiary butyl acetate from the list of reactive VOCs.

Texas Chemical Council (TCC) also supported the removal of the compounds from the list of regulated VOCs. TCC also commented that the reportable quantity (RQ) for hydrochloroflourocarbons (HCFC) should be set to 5,000 pounds, which is the federal RQ under FCAA, §602, for dichlorodiflouromethane and trichloromonoflouromethane.

The suggested change to the RQ was not proposed or noticed for public comment and the commission has not made an evaluation of the request. No change has been made in response to TCC's comment requesting a change in the RQ for HCFC.

STATUTORY AUTHORITY

The amendment is adopted under Texas Water Code, §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 Texas Water Code; and under Texas Health and Safety Code, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amendment is also adopted under Texas Health and Safety Code, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state 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 air; §382.012, concerning State Air Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state air; and §382.051, concerning Permitting Authority of Commission; Rules, which authorizes the commission to issue permits and adopt rules necessary for permits issued under Texas Health and Safety Code, Chapter 382.

The adopted amendment implements Texas Health and Safety Code, §§382.002, 382.011, 382.012, and 382.051.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 26, 2005.

TRD-200502133

Stephanie Bergeron Perdue

Director, Environmental Law Division

Texas Commission on Environmental Quality

Effective date: June 15, 2005

Proposal publication date: February 25, 2005

For further information, please call: (512) 239-0348


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 (FCAA, §112, 40 CFR PART 63)

30 TAC §§113.100, 113.105, 113.106, 113.110, 113.120, 113.130, 113.140, 113.170, 113.180, 113.190, 113.200, 113.220, 113.230, 113.240, 113.250, 113.260, 113.280, 113.290, 113.300, 113.320, 113.330, 113.340, 113.350, 113.360, 113.380, 113.390, 113.400, 113.410, 113.420, 113.430, 113.440, 113.460, 113.470, 113.480, 113.490, 113.530, 113.600, 113.610, 113.620, 113.640, 113.650, 113.660, 113.670, 113.690, 113.700, 113.710, 113.720, 113.730, 113.750, 113.770, 113.790, 113.810, 113.880, 113.890, 113.920, 113.940, 113.960, 113.980, 113.990, 113.1000, 113.1010, 113.1060, 113.1080, 113.1090, 113.1100, 113.1110, 113.1120, 113.1140, 113.1150, 113.1160, 113.1170, 113.1180, 113.1190, 113.1200, 113.1210, 113.1220, 113.1230, 113.1250, 113.1270, 113.1280, 113.1290

The Texas Commission on Environmental Quality (commission) adopts the amendments to §§113.100, 113.110, 113.120, 113.130, 113.140, 113.170, 113.180, 113.190, 113.200, 113.220, 113.230, 113.240, 113.250, 113.260, 113.280, 113.290, 113.300, 113.320, 113.330, 113.340, 113.350, 113.360, 113.380, 113.390, 113.400, 113.410, 113.420, 113.430, 113.440, 113.460, 113.470, 113.480, 113.490, 113.530, 113.600, 113.610, 113.620, 113.640, 113.650, 113.660, 113.670, 113.690, 113.700, 113.710, 113.720, 113.730, 113.750, 113.770, 113.790, and 113.810, and adopts new §§113.105, 113.106, 113.880, 113.890, 113.920, 113.940, 113.960, 113.980, 113.990, 113.1000, 113.1010, 113.1060, 113.1080, 113.1090, 113.1100, 113.1110, 113.1120, 113.1140, 113.1150, 113.1160, 113.1170, 113.1180, 113.1190, 113.1200, 113.1210, 113.1220, 113.1230, 113.1250, 113.1270, 113.1280, and 113.1290 without changes to the proposed text as published in the December 31, 2004, issue of the Texas Register (29 TexReg 12080), and will not be republished.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES

The amendments to Chapter 113 incorporate amendments that the United States Environmental Protection Agency (EPA) has made to the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Source Categories, under 40 Code of Federal Regulations (CFR) Part 63. These are technology-based standards commonly referred to as the maximum achievable control technology (MACT) standards. In addition, the new sections incorporate by reference 29 MACT standards and two general MACT requirements that 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), §112, as codified in 42 United States Code (USC), §7412.

Under federal law, affected industries are required to implement the MACT standards regardless of whether the commission or the EPA is the agency responsible for implementation. As MACT standards are promulgated or amended by the 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 the EPA under 40 CFR Part 63, Subpart E, which implements 42 USC, §7412(1). Upon delegation, the commission will be responsible for administering and enforcing the MACT requirements.

The commission incorporates amendments that the EPA has made to the 40 CFR Part 63 General Provisions and 49 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 standards, along with their corresponding Chapter 113 sections and original incorporation date, are listed in the following table.

Figure 1: 30 TAC Chapter 113 - Preamble

The commission also incorporates by reference, without change, 29 recent federal MACT standards not currently included in Chapter 113. In addition, the commission incorporates by reference, without change, general provisions related to FCAA, §112(j), as implemented by the EPA under 40 CFR §§63.50 - 63.56 (concerning Applicability, Definitions, Approval Process for New and Existing Emission Units, Application Content for Case-by-Case MACT Determinations, Preconstruction Review Procedures for New Emission Units, MACT Determinations for Emission Units Subject to Case-by-Case Determination of Equivalent Emission Limitations, and Requirements for Case-by-Case Determination of Equivalent Emission Limitations after Promulgation of a Subsequent MACT Standard). The commission also incorporates by reference, without change, 40 CFR Part 63 Subpart C, concerning the List of Hazardous Air Pollutants, Petitions Process, Lesser Quantity Designations, Source Category List. These additions are summarized in the following table.

Figure 2: 30 TAC Chapter 113 - Preamble

SECTION BY SECTION DISCUSSION

Subchapter C: National Emission Standards for Hazardous Air Pollutants for Source Categories (FCAA, §112, 40 Code of Federal Regulations Part 63)

Throughout the new and amended sections, where needed, the commission adds "Part" to the titles of each section to conform to Texas Register guidelines. Additionally, throughout the 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 made so that the rule language will conform to commission and Texas Register formatting and style standards.

Section 113.100 - General Provisions (40 Code of Federal Regulations Part 63, Subpart A)

The commission amends §113.100 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart A made by the EPA since April 12, 1999. During this time frame, EPA amended 40 CFR Part 63 Subpart A on June 10, 1999 (64 FR 31375), October 17, 2000 (65 FR 62215), March 12, 2001 (66 FR 14324), June 8, 2001 (66 FR 30822), July 3, 2001 (66 FR 35087), October 2, 2001 (66 FR 50124), January 29, 2002 (67 FR 4184), February 14, 2002 (67 FR 6986), February 27, 2002 (67 FR 9162), April 5, 2002 (67 FR 16595), June 10, 2002 (67 FR 39812), July 23, 2002 (67 FR 48262), December 4, 2002 (67 FR 72341), February 18, 2003 (68 FR 7713), April 21, 2003 (68 FR 19402), May 6, 2003 (68 FR 23898), May 20, 2003 (68 FR 27663), May 23, 2003 (68 FR 28619), May 27, 2003 (68 FR 28784), May 28, 2003 (68 FR 31615 and 31760), May 29, 2003 (68 FR 32189), May 30, 2003 (68 FR 32600), June 17, 2003 (68 FR 35792), November 13, 2003 (68 FR 64446), December 19, 2003 (68 FR 70965), January 2, 2004 (69 FR 157), February 3, 2004 (69 FR 5063), April 19, 2004 (69 FR 20990), April 22, 2004 (69 FR 21752), April 26, 2004 (69 FR 22623), and June 15, 2004 (69 FR 33506).

The June 10, 1999, amendments revised 40 CFR §63.14 by incorporating by reference several test methods associated with 40 CFR Part 63, Subparts AA and BB (MACTs for Phosphoric Acid Manufacturing and Phosphate Fertilizers Production, respectively).

The October 17, 2000, amendments included numerous editorial and technical changes to testing and monitoring provisions, as well as changes in the format of test methods and performance specifications. These amendments corrected typographical errors, corrected technical errors, updated test methods to more current versions, and removed or revised obsolete narrative material. The affected sections included 40 CFR §63.7, Performance Testing Requirements, §63.11, Control Device Requirements, and §63.14, Incorporations by Reference, as well as various individual test methods in 40 CFR Part 63, Appendix A.

The March 12, 2001, amendments granted Puget Sound Clean Air authority to implement and enforce its perchloroethylene dry cleaning regulation in place of the federal dry cleaning MACT, for area sources in Puget Sound Clean Air's jurisdiction. This action revised 40 CFR §63.14 by incorporating the Puget Sound regulations under 40 CFR §63.14(d)(2).

The June 8, 2001, amendments granted the Delaware Department of Natural Resources and Environmental Control authority to implement and enforce its accidental release prevention regulation in place of similar federal requirements. This action revised 40 CFR §63.14 by incorporating the Delaware regulations under 40 CFR §63.14(d)(3).

The July 3, 2001, amendments granted the New Jersey Department of Environmental Protection the authority to implement and enforce portions of the State of New Jersey's Toxic Catastrophe Prevention Act Program in place of the Federal Chemical Accident Prevention regulations, promulgated by the EPA under FCAA, §112(r), for all stationary sources with covered processes (''subject sources'') under New Jersey's jurisdiction. This action revised 40 CFR §63.14 by incorporating the New Jersey Toxic Catastrophe Prevention Act Program under 40 CFR §63.14(d)(2).

The October 2, 2001, amendments approved certain Delaware Department of Natural Resources and Environmental Control regulations as equivalent to FCAA, §112(d) requirements as set forth in 40 CFR Part 63, Subparts A, M, N, and Q, respectively, for affected sources in the State of Delaware. This action revised 40 CFR §63.14 and §63.99, Delegated Federal Authorities, to reflect the incorporation and federal enforceability of Delaware Department of Natural Resources and Environmental Control's regulations under 40 CFR §63.14(d)(3).

The January 29, 2002, amendments revised 40 CFR §63.13, Addresses of State Air Pollution Control Agencies and EPA Regional Offices, by correcting the address listed for EPA Region III.

The February 14, 2002, amendments revised 40 CFR §63.14 by incorporating by reference American Society of Mechanical Engineers (ASME) standard numbers QHO 1 1994 and QHO 1a 1996 Addenda. This ASME standard is titled ''Standard for the Qualification and Certification of Hazardous Waste Incinerator Operators,'' and was added as 40 CFR §63.14(i) in conjunction with revisions to 40 CFR Part 63, Subpart EEE (MACT for Hazardous Waste Combustors).

The February 27, 2002, amendments revised 40 CFR §63.14 by adding and reserving §63.14(b)(19) and (20), and incorporating by reference American Society for Testing and Materials (ASTM) method D2099-00 under 40 CFR §63.14(b)(21). This test method was incorporated in conjunction with the addition of 40 CFR Part 63, Subpart TTTT (MACT for Leather Finishing Operations).

The April 5, 2002, amendments to 40 CFR Part 63, Subpart A contained numerous clarifications and changes as a result of settlement negotiations with six petitioners, and various public comments. Amendments to 40 CFR §63.5, Construction and Reconstruction, streamlined preconstruction review requirements, including a provision to allow state or local agencies to use preconstruction review procedures used for other purposes to satisfy the federal preconstruction review requirements in 40 CFR Part 63, Subpart A. The amendments to 40 CFR §63.6, Compliance with Standards and Maintenance Requirements, added a notification requirement applicable to revisions of startup, shutdown, and malfunction plans, and added more comprehensive reporting requirements associated with malfunction events. The amendments also added language to clarify that startup, shutdown, and malfunction plans are not by themselves part of a facility's operating permit, such that startup, shutdown, and malfunction plans can be revised without revising the operating permit. The amendments to 40 CFR §63.6 also revised compliance extension provisions, allowing affected sources greater flexibility to request compliance extensions. The amendments to 40 CFR §63.8, Monitoring Requirements, clarified the owner or operator's obligations with respect to the accessibility of readouts from monitoring systems required for compliance, to ensure that this information is readily accessible to inspectors. The amendments also revised and created numerous definitions under 40 CFR §63.2, Definitions, including revisions to the definition of "affected source" and a definition of "new affected source."

The June 10, 2002, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart SSSS (MACT for Surface Coating of Metal Coil).

The July 23, 2002, amendments revised 40 CFR §63.14 by revising and adding test methods to support 40 CFR Part 63, Subpart NNNN (MACT for Surface Coating of Large Appliances).

The December 4, 2002, amendments revised 40 CFR §63.14 by incorporating a test method to support 40 CFR Part 63, Subpart JJJJ (MACT for Paper and Other Web Coating).

The February 18, 2003, amendments revised 40 CFR §63.14 by revising and updating test methods related to 40 CFR Part 63, Subpart MM (MACT for Chemical Recovery Combustion Sources at Kraft, Soda, Sulfite, and Stand-Alone Semichemical Pulp Mills).

The April 21, 2003, amendments revised 40 CFR §63.14 by incorporating a test method (ASTM D6420-99) to support 40 CFR Part 63, Subpart WWWW (MACT for Reinforced Plastic Composites Production).

The May 6, 2003, amendments revised 40 CFR §63.8 by making an administrative correction to §63.8(f).

The May 20, 2003, amendments revised 40 CFR §63.14 by incorporating a test method associated with 40 CFR Part 63, Subpart FFFFF (MACT for Integrated Iron and Steel Manufacturing).

The May 23, 2003, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart RRRR (MACT for Surface Coating of Metal Furniture).

The May 27, 2003, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart PPPPP (MACT for Engine Test Cells/Stands).

The May 28, 2003, amendments (68 FR 31615) granted the New Hampshire Department of Environmental Services the authority to implement New Hampshire Department of Environmental Services' ''Management and Control of Asbestos Disposal Sites Not Operated After July 9, 1981'' rule in lieu of some sections of the federal asbestos MACT rule. This action revised 40 CFR §63.14 by incorporating the New Hampshire rules under §63.14(d)(5).

The May 28, 2003, amendments (68 FR 31760) revised 40 CFR §63.14 by incorporating test methods associated with 40 CFR Part 63, Subpart QQQQ (MACT for Surface Coating of Wood Building Products).

The May 29, 2003, amendments revised 40 CFR §63.14 by incorporating a test method to support 40 CFR Part 63, Subpart OOOO (MACT for Printing, Coating, and Dyeing of Fabrics and Other Textiles).

The May 30, 2003, amendments revised 40 CFR §63.6 requirements associated with minimization of emissions and startup, shutdown, and malfunction plans, and clarified that startup, shutdown, and malfunction plans must be submitted to the EPA or the permitting authority upon request. The May 30, 2003, amendments also provided for public access to startup, shutdown, and malfunction plans, to be implemented through the permitting authority or by direct on-site inspection of the plan. The amendments also streamlined reporting requirements associated with startup, shutdown, and malfunction events, and added rule language to ensure that deficient startup, shutdown, and malfunction plans are revised to address the specified deficiencies. The amendments also revised the 40 CFR §63.2 definition of "malfunction" to only include events that may cause emission limitations to be exceeded, and expanded the definition of "monitoring" to include data or information collected for purposes of verifying compliance with work practice standards.

The June 17, 2003, amendments revised 40 CFR §63.13 by correcting the address listed for EPA Region VII.

The November 13, 2003, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart KKKK (MACT for Surface Coating of Metal Cans).

The December 19, 2003, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart R (MACT for Gasoline Distribution Facilities).

The January 2, 2004, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart MMMM (MACT for Surface Coating of Miscellaneous Metal Parts and Products).

The February 3, 2004, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart EEEE (MACT for Organic Liquids Distribution (Non- Gasoline)).

The April 19, 2004, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart PPPP (MACT for Surface Coating of Plastic Parts and Products).

The April 22, 2004, amendments implemented a federal Performance Track program, which allows eligible sources to qualify for a reduction in the frequency of reporting.

The April 26, 2004, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart IIII (MACT for Surface Coating of Automobiles and Light-Duty Trucks).

The June 15, 2004, amendments revised 40 CFR §63.14 by incorporating test methods to support 40 CFR Part 63, Subpart ZZZZ (MACT for Stationary Reciprocating Internal Combustion Engines).

Section 113.105 - Requirements for Control Technology Determinations for Major Sources in Accordance with Clean Air Act, §112(j) (40 Code of Federal Regulations Part 63, Subpart B, §§63.50 - 63.56)

The commission adopts new §113.105, which will incorporate by reference, without change, the final promulgated rules and all amendments to 40 CFR §§63.50 - 63.56 adopted by the EPA since May 20, 1994. Adopted §113.105 implements the requirements of FCAA, §112(j), by ensuring control of hazardous air pollutant emissions if the EPA should miss a scheduled MACT promulgation date. FCAA, §112(j) is commonly referred to as the "MACT hammer." If the EPA fails to promulgate an emission standard by the applicable FCAA, §112(j) deadline, major sources in that source category must submit to their respective state (or local) agencies a permit application to obtain source-specific case-by-case MACT. Conditions of the case- by-case MACT determination must be incorporated into the Title V operating permit.

Section 113.106 - List of Hazardous Air Pollutants, Petitions Process, Lesser Quantity Designations, Source Category List (40 Code of Federal Regulations Part 63, Subpart C)

The commission adopts new §113.106, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart C adopted by the EPA on June 18, 1996 (61 FR 30823), as amended on August 2, 2000 (65 FR 47348) and November 29, 2004 (69 FR 69325). Incorporation of 40 CFR Part 63, Subpart C into Chapter 113 is necessary because Subpart C is the mechanism by which the list of hazardous air pollutants is updated. The June 18, 1996, amendments deleted caprolactam from the list of hazardous air pollutants and reserved 40 CFR §§63.61 - 63.69 for future use. The August 2, 2000, amendments altered the definition of glycol ether compounds referenced in the list of hazardous air pollutants. The November 29, 2004, amendments deleted ethylene glycol monobutyl ether from the list of hazardous air pollutants.

Section 113.110 - Synthetic Organic Chemical Manufacturing Industry (40 Code of Federal Regulations Part 63, Subpart F)

The commission amends §113.110 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart F made by the EPA since January 22, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart F on June 23, 2003 (68 FR 37344). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

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

The commission amends §113.120 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart G made by the EPA since January 22, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart G on June 23, 2003 (68 FR 37344). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.130 - Organic Hazardous Air Pollutants for Equipment Leaks (40 Code of Federal Regulations Part 63, Subpart H)

The commission amends §113.130 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart H made by the EPA since January 22, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart H on June 23, 2003 (68 FR 37345). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also slightly rephrased some sections to more clearly separate delegable requirements from non-delegable requirements.

Section 113.140 - Certain Processes Subject to the Negotiated Regulation for Equipment Leaks (40 Code of Federal Regulations Part 63, Subpart I)

The commission amends §113.140 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart I made by the EPA since January 17, 1997. During this time frame, the EPA amended 40 CFR Part 63, Subpart I on June 23, 2003 (68 FR 37345). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.170 - Coke Oven Batteries (40 Code of Federal Regulations Part 63, Subpart L)

The commission amends §113.170 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart L made by the EPA since October 17, 2000. During this time frame, the EPA amended 40 CFR Part 63, Subpart L on June 23, 2003 (68 FR 37345). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.180 - Perchloroethylene Dry Cleaning Facilities (40 CFR Part 63, Subpart M)

The commission amends §113.180 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart M made by the EPA since December 14, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart M on June 23, 2003 (68 FR 37347). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.190 - Chromium Emissions from Hard and Decorative Chromium Electroplating and Chromium Anodizing Tanks (40 Code of Federal Regulations Part 63, Subpart N)

The commission amends §113.190 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart N made by the EPA since December 14, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart N on June 23, 2003 (68 FR 37347) and on July 19, 2004 (69 FR 42894). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions. The July 19, 2004, amendments addressed five technical areas: 1) the use of fume suppressants for controlling chromium emissions from hard chromium electroplating tanks; 2) a revised surface tension limit for decorative chromium electroplating tanks when measuring surface tension with a tensiometer; 3) an alternate emission limit for hard chromium electroplating tanks equipped with enclosing hoods; 4) revised definitions for chromium electroplating and chromium anodizing tanks; and 5) the pressure drop monitoring requirement for composite mesh pad control systems. The July 19, 2004, amendments affected the emission limits, definitions, compliance provisions, and performance testing requirements of this MACT standard.

Section 113.200 - Ethylene Oxide Emissions Standards for Sterilization Facilities (40 Code of Federal Regulations Part 63, Subpart O)

The commission amends §113.200 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart O made by the EPA since November 2, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart O on June 23, 2003 (68 FR 37348). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.220 - Industrial Process Cooling Towers (40 Code of Federal Regulations Part 63, Subpart Q)

The commission amends §113.220 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart Q made by the EPA since July 23, 1998. During this time frame, the EPA amended 40 CFR Part 63, Subpart Q on June 23, 2003 (68 FR 37348). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.230 - Gasoline Distribution Facilities (40 Code of Federal Regulations Part 63, Subpart R)

The commission amends §113.230 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart R made by the EPA since January 16, 1998. During this time frame, the EPA amended 40 CFR Part 63, Subpart R on June 23, 2003 (68 FR 37348) and December 19, 2003 (68 FR 70965). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The December 19, 2003, amendments clarified testing, monitoring, and recordkeeping requirements, and added additional flexibility to testing and recordkeeping requirements.

Section 113.240 - Pulp and Paper Industry (40 Code of Federal Regulations Part 63, Subpart S)

The commission amends §113.240 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart S made by the EPA since May 14, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart S on June 27, 2001 (66 FR 34124), October 16, 2001 (66 FR 52538), and June 23, 2003 (68 FR 37348). The June 27, 2001, amendments implemented site-specific emission control requirements for a pulp mill facility in Georgia. The October 16, 2001, amendments contained technical corrections to the June 27, 2001, amendments. The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.250 - Halogenated Solvent Cleaning (40 Code of Federal Regulations Part 63, Subpart T)

The commission amends §113.250 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart T made by the EPA since September 8, 2000. During this time frame, the EPA amended 40 CFR Part 63, Subpart T on June 23, 2003 (68 FR 37349). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.260 - Group I Polymers and Resins (40 Code of Federal Regulations Part 63, Subpart U)

The commission amends §113.260 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart U made by the EPA since July 16, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart U on June 23, 2003 (68 FR 37349). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.280 - Epoxy Resins Production and Non-Nylon Polyamides Production (40 Code of Federal Regulations Part 63, Subpart W)

The commission amends §113.280 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart W made by the EPA since May 8, 2000. During this time frame, 40 CFR Part 63, Subpart W was amended on June 23, 2003 (68 FR 37350). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.290 - Secondary Lead Smelting (40 Code of Federal Regulations Part 63, Subpart X)

The commission amends §113.290 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart X made by the EPA since December 14, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart X on June 23, 2003 (68 FR 37350). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to provide language more consistent with the revised delegation of authority provisions.

Section 113.300 - Marine Vessel Loading (40 Code of Federal Regulations Part 63, Subpart Y)

The commission amends §113.300 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart Y made by the EPA since September 19, 1995. During this time frame, the EPA amended 40 CFR Part 63, Subpart Y on June 23, 2003 (68 FR 37350). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.320 - Phosphoric Acid Manufacturing Plants (40 Code of Federal Regulations Part 63, Subpart AA)

The commission amends §113.320 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart AA made by the EPA since June 13, 2002. During this time frame, 40 CFR Part 63, Subpart AA was amended on June 23, 2003 (68 FR 37351). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.330 - Phosphate Fertilizers Production Plants (40 Code of Federal Regulations Part 63, Subpart BB)

The commission amends §113.330 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart BB made by the EPA since June 13, 2002. During this time frame, 40 CFR Part 63, Subpart BB was amended on June 23, 2003 (68 FR 37351). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.340 - Petroleum Refineries (40 Code of Federal Regulations Part 63, Subpart CC)

The commission amends §113.340 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart CC made by the EPA since May 25, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart CC on June 23, 2003 (68 FR 37351). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.350 - Off-Site Waste and Recovery Operations (40 Code of Federal Regulations Part 63, Subpart DD)

The commission amends §113.350 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart DD made by the EPA since January 8, 2001. During this time frame, 40 CFR Part 63, Subpart DD was amended on June 23, 2003 (68 FR 37351). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.360 - Magnetic Tape Manufacturing Operations (40 Code of Federal Regulations Part 63, Subpart EE)

The commission amends §113.360 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart EE made by the EPA since April 9, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart EE on June 23, 2003 (68 FR 37352). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.380 - Aerospace Manufacturing and Rework Facilities (40 Code of Federal Regulations Part 63, Subpart GG)

The commission amends §113.380 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart GG made by the EPA since December 8, 2000. During this time frame, the EPA amended 40 CFR Part 63, Subpart GG on June 23, 2003 (68 FR 37352). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.390 - Oil and Natural Gas Production Facilities (40 Code of Federal Regulations Part 63, Subpart HH)

The commission amends §113.390 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart HH made by the EPA since June 29, 2001. During this time frame, 40 CFR Part 63, Subpart HH was amended on June 23, 2003 (68 FR 37353). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.400 - Shipbuilding and Ship Repair (Surface Coating) (40 Code of Federal Regulations Part 63, Subpart II)

The commission amends §113.400 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart II made by the EPA since October 17, 2000. During this time frame, 40 CFR Part 63, Subpart II was amended on June 23, 2003 (68 FR 37353). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.410 - Wood Furniture Manufacturing Operations (40 Code of Federal Regulations Part 63, Subpart JJ)

The commission amends §113.410 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart JJ made by the EPA since December 28, 1998. During this time frame, 40 CFR Part 63, Subpart JJ was amended on June 23, 2003 (68 FR 37353). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also rephrased some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.420 - Printing and Publishing (40 Code of Federal Regulations Part 63, Subpart KK)

The commission amends §113.420 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart KK made by the EPA since May 30, 1996. During this time frame, 40 CFR Part 63, Subpart KK was amended on June 23, 2003 (68 FR 37354). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.430 - Primary Aluminum Reduction Plants (40 Code of Federal Regulations Part 63, Subpart LL)

The commission amends §113.430 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart LL made by the EPA since October 7, 1997. During this time frame, 40 CFR Part 63, Subpart LL was amended on June 23, 2003 (68 FR 37354). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

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

The commission amends §113.440 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart MM made by the EPA since August 6, 2001. During this time frame, 40 CFR Part 63, Subpart MM was amended on February 18, 2003 (68 FR 7713), July 18, 2003 (68 FR 42605), August 5, 2003 (68 FR 46108), December 5, 2003 (68 FR 67954), and May 6, 2004 (69 FR 25323). The February 18, 2003, amendments clarified and consolidated monitoring and testing requirements and added a site-specific alternative standard for a facility in the State of Washington. The July 18, 2003, amendments deleted certain provisions previously adopted on February 18, 2003, which were the subject of adverse comments, and corrected a typographical error and a cross-referencing error. The August 5, 2003, amendments extended the compliance date for a site-specific emission control project in Virginia. The December 5, 2003, amendments implemented technical corrections to restore monitoring and recordkeeping provisions inadvertently deleted by the July 18, 2003, amendments, and added clarifying language which was inadvertently omitted from an emission standard in the January 12, 2001, final rule. The May 6, 2004, amendments corrected cross-references in order to be consistent with changes made in the February 18, 2003, amendments.

Section 113.460 - Tanks-Level 1 (40 Code of Federal Regulations Part 63, Subpart OO)

The commission amends §113.460 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart OO made by the EPA since July 20, 1999. During this time frame, 40 CFR Part 63, Subpart OO was amended on June 23, 2003 (68 FR 37354). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.470 - Containers (40 Code of Federal Regulations Part 63, Subpart PP)

The commission amends §113.470 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart PP made by the EPA since January 8, 2001. During this time frame, 40 CFR Part 63, Subpart PP was amended on June 23, 2003 (68 FR 37355). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.480 - Surface Impoundments (40 Code of Federal Regulations Part 63, Subpart QQ)

The commission amends §113.480 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart QQ made by the EPA since July 20, 1999. During this time frame, 40 CFR Part 63, Subpart QQ was amended on June 23, 2003 (68 FR 37355). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.490 - Individual Drain Systems (40 Code of Federal Regulations Part 63, Subpart RR)

The commission amends §113.490 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart RR made by the EPA since January 8, 2001. During this time frame, 40 CFR Part 63, Subpart RR was amended on June 23, 2003 (68 FR 37355). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.530 - Oil-Water Separators and Organic-Water Separators (40 Code of Federal Regulations Part 63, Subpart VV)

The commission amends §113.530 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart VV made by the EPA since January 8, 2001. During this time frame, 40 CFR Part 63, Subpart VV was amended on June 23, 2003 (68 FR 37355). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.600 - Steel Pickling-HCl Process Facilities and Hydrochloric Acid Regeneration Plants (40 Code of Federal Regulations Part 63, Subpart CCC)

The commission amends §113.600 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart CCC made by the EPA since June 22, 1999. During this time frame, 40 CFR Part 63, Subpart CCC was amended on June 23, 2003 (68 FR 37356). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.610 - Mineral Wool Production (40 Code of Federal Regulations Part 63, Subpart DDD)

The commission amends §113.610 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart DDD made by the EPA since June 1, 1999. During this time frame, 40 CFR Part 63, Subpart DDD was amended on June 23, 2003 (68 FR 37356). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.620 - Hazardous Waste Combustors (40 Code of Federal Regulations Part 63, Subpart EEE)

The commission amends §113.620 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart EEE made by the EPA since December 19, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart EEE on June 23, 2003 (68 FR 37356). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The adopted rule also corrects two typographical errors in §113.620.

Section 113.640 - Pharmaceuticals Production (40 Code of Federal Regulations Part 63, Subpart GGG)

The commission amends §113.640 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart GGG made by the EPA since April 2, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart GGG on June 23, 2003 (68 FR 37356). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.650 - Natural Gas Transmission and Storage Facilities (40 Code of Federal Regulations Part 63, Subpart HHH)

The commission amends §113.650 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart HHH made by the EPA since February 22, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart HHH on June 23, 2003 (68 FR 37357). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also restructured some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.660 - Flexible Polyurethane Foam Production (40 Code of Federal Regulations Part 63, Subpart III)

The commission amends §113.660 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart III made by the EPA since October 7, 1998. During this time frame, the EPA amended 40 CFR Part 63, Subpart III on June 23, 2003 (68 FR 37357). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.670 - Group IV Polymers and Resins (40 Code of Federal Regulations Part 63, Subpart JJJ)

The commission amends §113.670 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart JJJ made by the EPA since August 6, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart JJJ on June 23, 2003 (68 FR 37357), with corrections published on June 2, 2004 (69 FR 31008). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 2, 2004, correction modified 40 CFR §63.1331, Equipment Leak Provisions.

Section 113.690 - Portland Cement Manufacturing Industry (40 Code of Federal Regulations Part 63, Subpart LLL)

The commission amends §113.690 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart LLL made by the EPA since December 6, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart LLL on June 23, 2003 (68 FR 37359). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.700 - Pesticide Active Ingredient Production (40 Code of Federal Regulations Part 63, Subpart MMM)

The commission amends §113.700 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart MMM made by the EPA since September 20, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart MMM on June 23, 2003 (68 FR 37358). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The June 23, 2003, amendments also restructured some sections to more clearly separate delegable requirements from non-delegable requirements, and to provide language more consistent with the revised delegation of authority provisions.

Section 113.710 - Wool Fiberglass Manufacturing (40 Code of Federal Regulations Part 63, Subpart NNN)

The commission amends §113.710 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart NNN made by the EPA since June 14, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart NNN on June 23, 2003 (68 FR 37358). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.720 - Manufacture of Amino/Phenolic Resins (40 Code of Federal Regulations Part 63, Subpart OOO)

The commission amends §113.720 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart OOO made by the EPA since February 22, 2000. During this time frame, the EPA amended 40 CFR Part 63, Subpart OOO on June 23, 2003 (68 FR 37359). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.730 - Polyether Polyols Production (40 Code of Federal Regulations Part 63, Subpart PPP)

The commission amends §113.730 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart PPP made by the EPA since May 8, 2000. During this time frame, the EPA amended 40 CFR Part 63, Subpart PPP on June 23, 2003 (68 FR 37359), with corrections published on July 1, 2004 (69 FR 39862). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority. The July 1, 2004, corrections modified several table headings and corrected Equation 11 in 40 CFR §63.1427.

Section 113.750 - Secondary Aluminum Production (40 Code of Federal Regulations Part 63, Subpart RRR)

The commission amends §113.750 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart RRR adopted by the EPA since December 30, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart RRR on June 23, 2003 (68 FR 37359). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.770 - Primary Lead Smelting (40 Code of Federal Regulations Part 63, Subpart TTT)

The commission amends §113.770 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart TTT adopted by the EPA since June 4, 1999. During this time frame, the EPA amended 40 CFR Part 63, Subpart TTT on June 23, 2003 (68 FR 37360). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.790 - Publicly Owned Treatment Works (40 Code of Federal Regulations Part 63, Subpart VVV)

The commission amends §113.790 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart VVV made by the EPA since October 21, 2002. During this time frame, the EPA amended 40 CFR Part 63, Subpart VVV on June 23, 2003 (68 FR 37360). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.810 - Ferroalloys Production: Ferromanganese and Silicomanganese (40 Code of Federal Regulations Part 63, Subpart XXX)

The commission amends §113.810 by incorporating by reference, without change, all amendments to 40 CFR Part 63, Subpart XXX made by the EPA since March 22, 2001. During this time frame, the EPA amended 40 CFR Part 63, Subpart XXX on June 23, 2003 (68 FR 37360). The June 23, 2003, amendments clarified which provisions of this MACT can be delegated to state, local, and tribal authorities, and identified provisions for which the EPA retains exclusive authority.

Section 113.880 - Organic Liquids Distribution (Non-Gasoline) (40 Code of Federal Regulations Part 63, Subpart EEEE)

The commission adopts new §113.880, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart EEEE adopted by the EPA on February 3, 2004 (69 FR 5063). This MACT standard applies to new and existing non-gasoline organic liquid distribution operations that are located at, or are part of, a major source of hazardous air pollutant emissions. Hazardous air pollutants emitted from these operations include: benzene, ethylbenzene, toluene, vinyl chloride, and a large number of other organic hazardous air pollutants.

Section 113.890 - Miscellaneous Organic Chemical Manufacturing (40 Code of Federal Regulations Part 63, Subpart FFFF)

The commission adopts new §113.890, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart FFFF adopted by the EPA on November 10, 2003 (68 FR 63888). This MACT standard applies to new and existing miscellaneous organic chemical manufacturing process units, wastewater treatment and conveyance systems, transfer operations, and associated ancillary equipment. This standard applies to process units that are located at, or are part of, a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include: toluene, methanol, xylenes, hydrogen chloride, and methylene chloride.

Section 113.920 - Surface Coating of Automobiles and Light-Duty Trucks (40 Code of Federal Regulations Part 63, Subpart IIII)

The commission adopts new §113.920, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart IIII adopted by the EPA on April 26, 2004 (69 FR 22623). This MACT standard applies to new and existing auto and light-duty truck surface coating operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutant emissions. The primary hazardous air pollutants emitted by these facilities include: toluene, xylenes, glycol ethers, methyl ethyl ketone, methyl isobutyl ketone, ethylbenzene, and methanol.

Section 113.940 - Surface Coating of Metal Cans (40 Code of Federal Regulations Part 63, Subpart KKKK)

The commission adopts new §113.940, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart KKKK adopted by the EPA on November 13, 2003 (68 FR 64446). This MACT standard applies to new and existing metal can surface coating operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutants. The hazardous air pollutants emitted by these facilities include: certain glycol ethers, xylenes, hexane, methyl isobutyl ketone (MIBK), and methyl ethyl ketone (MEK).

Section 113.960 - Surface Coating of Miscellaneous Metal Parts and Products (40 Code of Federal Regulations Part 63, Subpart MMMM)

The commission adopts new §113.960, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart MMMM adopted by the EPA on January 2, 2004 (69 FR 157), as amended through April 26, 2004 (69 FR 22660). This MACT standard applies to new and existing miscellaneous metal parts and products surface coating operations located at major sources of hazardous air pollutants. Hazardous air pollutants emitted from these facilities include: xylenes, toluene, methyl ethyl ketone, phenol, cresols/cresylic acid, glycol ethers, styrene, methyl isobutyl ketone, and ethyl benzene. The April 26, 2004, amendments clarified the interaction of 40 CFR Part 63, Subpart MMMM with Subpart IIII, concerning Surface Coating of Automobiles and Light-Duty Trucks.

Section 113.980 - Printing, Coating, and Dyeing of Fabrics and Other Textiles (40 Code of Federal Regulations Part 63, Subpart OOOO)

The commission adopts new §113.980, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart OOOO adopted by the EPA on May 29, 2003 (68 FR 32189). This MACT standard applies to new and existing operations involving printing, coating, slashing, dyeing, or finishing of fabric and other textiles. This standard applies to operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include, but are not limited to: toluene, methyl ethyl ketone, methanol, xylenes, methyl isobutyl ketone, methylene chloride, trichloroethylene, n-hexane, glycol ethers, and formaldehyde.

Section 113.990 - Surface Coating of Plastic Parts and Products (40 Code of Federal Regulations Part 63, Subpart PPPP)

The commission adopts new §113.990, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart PPPP adopted by the EPA on April 19, 2004 (69 FR 20990), as amended through April 26, 2004 (69 FR 22660). This MACT standard applies to new and existing plastic parts and products surface coating operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include: methyl ethyl ketone, methyl isobutyl ketone, toluene, certain glycol ethers, and xylenes. The April 26, 2004, amendments clarified the interaction of 40 CFR Part 63, Subpart PPPP with Subpart IIII, concerning Surface Coating of Automobiles and Light-Duty Trucks.

Section 113.1000 - Surface Coating of Wood Building Products (40 Code of Federal Regulations Part 63, Subpart QQQQ)

The commission adopts new §113.1000, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart QQQQ adopted by the EPA on May 28, 2003 (68 FR 31760). This MACT standard applies to new and existing operations involving surface coating of wood building products. This standard applies to operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include, but are not limited to: xylenes, toluene, ethyl benzene, methyl ethyl ketone, methyl isobutyl ketone, methanol, styrene, and formaldehyde.

Section 113.1010 - Surface Coating of Metal Furniture (40 Code of Federal Regulations Part 63, Subpart RRRR)

The commission adopts new §113.1010, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart RRRR adopted by the EPA on May 23, 2003 (68 FR 28619). This MACT standard applies to new and existing operations involving surface coating of metal furniture. This standard applies to operations that are a major source, are located at a major source, or are part of a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include, but are not limited to: xylenes, toluene, certain glycol ethers, ethylbenzene, and methyl ethyl ketone.

Section 113.1060 - Reinforced Plastic Composites Production (40 Code of Federal Regulations Part 63, Subpart WWWW)

The commission adopts new §113.1060, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart WWWW adopted by the EPA on April 21, 2003 (68 FR 19402). This MACT standard applies to new and existing reinforced plastic composites production facilities that are located at a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: styrene, methyl methacrylate, and methylene chloride.

Section 113.1080 - Stationary Combustion Turbines (40 Code of Federal Regulations Part 63, Subpart YYYY)

The commission adopts new §113.1080, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart YYYY adopted by the EPA on March 5, 2004 (69 FR 10537), as amended through August 18, 2004 (69 FR 51188). This MACT standard applies to new and existing stationary combustion turbines located at a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from stationary combustion turbines include: formaldehyde, toluene, benzene, and acetaldehyde. The August 18, 2004, amendments stayed the effectiveness of emission limitations and operating limitations for lean premix gas-fired turbines and diffusion flame gas-fired turbines.

Section 113.1090 - Stationary Reciprocating Internal Combustion Engines (40 Code of Federal Regulations Part 63, Subpart ZZZZ)

The commission adopts new §113.1090, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart ZZZZ adopted by the EPA on June 15, 2004 (69 FR 33506). This MACT standard applies to new and existing stationary reciprocating internal combustion engines located at a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from stationary reciprocating internal combustion engines include: formaldehyde, acrolein, toluene, methanol, and acetaldehyde.

Section 113.1100 - Lime Manufacturing Plants (40 Code of Federal Regulations Part 63, Subpart AAAAA)

The commission adopts new §113.1100, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart AAAAA adopted by the EPA on January 5, 2004 (69 FR 416). This MACT standard applies to new and existing lime manufacturing units, including lime kilns, lime coolers, and various types of processed stone handling operations. The standard applies to lime manufacturing plants that are major sources, co-located at major sources, or are part of a major source. However, this MACT standard does not apply to lime manufacturing plants that are located at pulp and paper mills or beet sugar factories. Hazardous air pollutant emissions from lime manufacturing plants include, but are not limited to: hydrogen chloride, antimony, arsenic, beryllium, cadmium, chromium, lead, manganese, mercury, nickel, and selenium.

Section 113.1110 - Semiconductor Manufacturing (40 Code of Federal Regulations Part 63, Subpart BBBBB)

The commission adopts new §113.1110, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart BBBBB adopted by the EPA on May 22, 2003 (68 FR 27925). This MACT standard applies to new and existing semiconductor manufacturing operations that are a major source of hazardous air pollutants, are located at a major source of hazardous air pollutants, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: hydrochloric acid, hydrogen fluoride, methanol, glycol ethers, and xylenes.

Section 113.1120 - Coke Ovens: Pushing, Quenching, and Battery Stacks (40 Code of Federal Regulations Part 63, Subpart CCCCC)

The commission adopts new §113.1120, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart CCCCC adopted by the EPA on April 14, 2003 (68 FR 18025), with corrections published on April 22, 2003 (68 FR 19885). This MACT standard applies to each new or existing coke oven battery at a plant that is a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: polycyclic organic matter, benzene, and toluene. The corrections published on April 22, 2003, altered an incorrect compliance date in 40 CFR §63.7283(b) (When Do I Have to Comply with this Subpart?).

Section 113.1140 - Iron and Steel Foundries (40 Code of Federal Regulations Part 63, Subpart EEEEE)

The commission adopts new §113.1140, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart EEEEE adopted by the EPA on April 22, 2004 (69 FR 21923). This MACT standard applies to new and existing iron and steel foundries, which are (or are located at) a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include: metallic compounds such as lead, manganese, cadmium, chromium, and nickel; and numerous organic compounds such as acetophenone, benzene, cumene, dibenzofurans, dioxins, formaldehyde, methanol, naphthalene, phenol, pyrene, toluene, triethylamine, and xylenes.

Section 113.1150 - Integrated Iron and Steel Manufacturing Facilities (40 Code of Federal Regulations Part 63, Subpart FFFFF)

The commission adopts new §113.1150, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart FFFFF adopted by the EPA on May 20, 2003 (68 FR 27663). This MACT standard applies to each new or existing sinter plant, blast furnace, and basic oxygen process furnace shop that are (or are located at) a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: manganese, lead, polycyclic organic matter, benzene, and carbon disulfide.

Section 113.1160 - Site Remediation (40 Code of Federal Regulations Part 63, Subpart GGGGG)

The commission adopts new §113.1160, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart GGGGG adopted by the EPA on October 8, 2003 (68 FR 58190). This MACT standard applies to site remediation projects (such as cleanup of contaminated soil, groundwater, or surface water) that meet all of the following criteria: 1) clean-up remediation materials defined in 40 CFR §63.7957, What Definitions Apply to this Subpart; 2) are co-located at a facility with one or more other stationary sources that emit hazardous air pollutants and meet an affected source definition for a source category that is regulated by another subpart under 40 CFR Part 63; and 3) the facility is a major source of hazardous air pollutant emissions. 40 CFR Part 63, Subpart GGGGG contains exemptions for remediation projects located at gasoline service stations, farms, residential sites, and certain remediation projects conducted under the authority of other environmental regulations, such as the Resource Conservation and Recovery Act (RCRA) or the Comprehensive Environmental Response and Compensation Liability Act (CERCLA). Hazardous air pollutant emissions regulated under this MACT standard include a wide variety of compounds listed in Table 1 of 40 CFR Part 63, Subpart GGGGG.

Section 113.1170 - Miscellaneous Coating Manufacturing (40 Code of Federal Regulations Part 63, Subpart HHHHH)

The commission adopts new §113.1170, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart HHHHH adopted by the EPA on December 11, 2003 (68 FR 69185), as amended through December 29, 2003 (68 FR 75033). This MACT standard applies to new and existing miscellaneous coating manufacturing operations that are located at or are part of a major source of hazardous air pollutants. Hazardous air pollutant emissions from these operations include: toluene, xylenes, glycol ethers, methyl ethyl ketone, and methyl isobutyl ketone. The December 29, 2003, amendments corrected a compliance date stated in 40 CFR §63.7995 (When do I have to comply with this subpart?), which should have read "December 11, 2006."

Section 113.1180 - Mercury Emissions from Mercury Cell Chlor-Alkali Plants (40 Code of Federal Regulations Part 63, Subpart IIIII)

The commission adopts new §113.1180, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart IIIII adopted by the EPA on December 19, 2003 (68 FR 70928). This MACT standard applies to new and existing mercury cell chlor-alkali plants. The hazardous air pollutant regulated by this standard is mercury.

Section 113.1190 - Brick and Structural Clay Products Manufacturing (40 Code of Federal Regulations Part 63, Subpart JJJJJ)

The commission adopts new §113.1190, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart JJJJJ adopted by the EPA on May 16, 2003 (68 FR 26722), with corrections published on May 28, 2003 (68 FR 31744). This MACT standard applies to new and existing sources at brick and structural clay products manufacturing plants. This MACT standard applies to brick and structural clay manufacturing facilities that are a major source of hazardous air pollutant emissions, are located at a major source of hazardous air pollutant emissions, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: hydrogen fluoride; hydrogen chloride; and metallic compounds such as antimony, arsenic, beryllium, cadmium, chromium, cobalt, mercury, manganese, nickel, lead, and selenium. The May 28, 2003, corrections altered an erroneous compliance date.

Section 113.1200 - Clay Ceramics Manufacturing (40 Code of Federal Regulations Part 63, Subpart KKKKK)

The commission adopts new §113.1200, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart KKKKK adopted by the EPA on May 16, 2003 (68 FR 26738), with corrections published on May 28, 2003 (68 FR 31744). This MACT standard applies to new and existing sources at clay ceramics manufacturing facilities. This MACT standard applies to clay ceramics manufacturing facilities that are a major source of hazardous air pollutant emissions, are located at a major source of hazardous air pollutant emissions, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: hydrogen fluoride; hydrogen chloride; and metallic compounds such as antimony, arsenic, beryllium, cadmium, chromium, cobalt, mercury, manganese, nickel, lead, and selenium. The May 28, 2003, corrections altered an erroneous compliance date.

Section 113.1210 - Asphalt Processing and Asphalt Roofing Manufacturing (40 Code of Federal Regulations Part 63, Subpart LLLLL)

The commission adopts new §113.1210, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart LLLLL initially adopted by the EPA on April 29, 2003 (68 FR 22991), and republished with corrections on May 7, 2003 (68 FR 24577). This MACT standard applies to new and existing asphalt processing and asphalt roofing manufacturing facilities that are a major source of hazardous air pollutant emissions, are located at a major source of hazardous air pollutants emissions, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: formaldehyde, hexane, hydrogen chloride, phenol, polycyclic organic matter, and toluene.

Section 113.1220 - Flexible Polyurethane Foam Fabrication Operations (40 Code of Federal Regulations Part 63, Subpart MMMMM)

The commission adopts new §113.1220, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart MMMMM adopted by the EPA on April 14, 2003 (68 FR 18070). This MACT standard applies to new and existing flexible polyurethane foam fabrication facilities that are located at or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: hydrochloric acid, 2,4-toluene diisocyanate, hydrogen cyanide, and methylene chloride.

Section 113.1230 - Hydrochloric Acid Production (40 Code of Federal Regulations Part 63, Subpart NNNNN)

The commission adopts new §113.1230, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart NNNNN adopted by the EPA on April 17, 2003 (68 FR 19090). This MACT standard applies to new and existing hydrochloric acid production units that normally produce liquid hydrochloric acid at a concentration of 30 weight percent or greater, and are located at a major source of hazardous air pollutant emissions, or are part of a major source of hazardous air pollutant emissions. The primary hazardous air pollutant that will be controlled with this MACT standard is hydrochloric acid.

Section 113.1250 - Engine Test Cells/Stands (40 Code of Federal Regulations Part 63, Subpart PPPPP)

The commission adopts new §113.1250, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart PPPPP adopted by the EPA on May 27, 2003 (68 FR 28785), with corrections published on August 28, 2003 (68 FR 51830). This MACT standard applies to new and existing engine test cells/stands that are located at a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: toluene, benzene, mixed xylenes, and 1,3-butadiene. The August 28, 2003, corrections altered the title of the subpart.

Section 113.1270 - Taconite Iron Ore Processing (40 Code of Federal Regulations Part 63, Subpart RRRRR)

The commission adopts new §113.1270, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart RRRRR adopted by the EPA on October 30, 2003 (68 FR 61888). This MACT standard applies to new and existing taconite ore processing facilities, including ore crushing and handling operations, ore dryers, indurating furnaces, and finished pellet handling operations. The standard applies to ore processing facilities that are major sources of hazardous air pollutant emissions (or are part of a major source of hazardous air pollutant emissions). Hazardous air pollutants emitted from taconite ore processing operations include: metal compounds such as manganese, arsenic, lead, nickel, chromium, and mercury; products of incomplete combustion, including formaldehyde; and the acid gases hydrogen chloride and hydrogen fluoride.

Section 113.1280 - Refractory Products Manufacturing (40 Code of Federal Regulations Part 63, Subpart SSSSS)

The commission adopts new §113.1280, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart SSSSS adopted by the EPA on April 16, 2003 (68 FR 18747). This MACT standard applies to new and existing refractory products manufacturing facilities that are a major source of hazardous air pollutant emissions, are located at a major source of hazardous air pollutant emissions, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: ethylene glycol, formaldehyde, hydrogen fluoride, hydrochloric acid, methanol, phenol, and polycyclic organic matter.

Section 113.1290 - Primary Magnesium Refining (40 Code of Federal Regulations Part 63, Subpart TTTTT)

The commission adopts new §113.1290, which will incorporate by reference, without change, the final promulgated rules in 40 CFR Part 63, Subpart TTTTT adopted by the EPA on October 10, 2003 (68 FR 58620). This MACT standard applies to new and existing primary magnesium refining facilities that are major sources of hazardous air pollutant emissions, or are part of a major source of hazardous air pollutant emissions. Hazardous air pollutant emissions from these operations include, but are not limited to: chlorine, hydrochloric acid, dioxins and furans, and trace amounts of several hazardous air pollutant metals.

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.

FINAL REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the adopted rulemaking action in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking action does not meet the definition of a "major environmental rule" as defined in that statute. A "major environmental rule" is 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, 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 adopted rules is to adopt MACT standards mandated by the FCAA and the amendments to that statute. The EPA is developing these national MACT standards to regulate emissions of hazardous air pollutants under 42 USC, §7412. Hazardous air pollutant 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 adopted rules are not anticipated to add any significant additional costs to affected individuals or businesses beyond existing requirements to comply with the federal standards. The adopted 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, the adopted rules do not meet any of the four applicability criteria of a "major environmental rule" as defined in the Texas Government Code. Texas Government Code, §2001.0225 applies only 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 the requirements because the MACT standards in this adoption are federal technology-based standards which will be incorporated by reference, and therefore, will not exceed any standard set by federal law. This adoption 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 statute. The adopted rules do not exceed a requirement of a delegation agreement or a contract between state and federal government. The adopted rules were not developed solely under the general powers of the agency, but are adopted under the Texas Clean Air Act (TCAA), as codified in Texas Health and Safety Code, §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 and regulations applicable to air permits.

TAKINGS IMPACT ASSESSMENT

The commission completed a takings impact analysis for the adopted rulemaking action under Texas Government Code, §2007.043. The specific purpose of this rulemaking is to facilitate implementation and enforcement of 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 reviewed the rulemaking and found that the adoption is subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act, Texas Natural Resources Code, §§33.201 et seq ., and therefore must be consistent with all applicable CMP goals and policies. The commission prepared a consistency determination for the rules in accordance with Coastal Coordination Act Implementation Rules, 31 TAC §505.22 and found the rulemaking is consistent with the applicable CMP goals and policies. The CMP goal applicable to the rules is to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas. The CMP policy applicable to the rules is Emission of Air Pollutants. These rules are consistent because they only incorporate by reference the federal MACT standards that pertain to certain industries and processes. The MACT standards provide the highest level of control of air emissions that is achievable.

PUBLIC COMMENT

A public hearing on this proposal was held in Austin on January 31, 2005, but no oral comments were received. The public comment period ended at 5:00 p.m. on January 31, 2005. No written comments were submitted.

STATUTORY AUTHORITY

The new and amended sections are adopted under Texas Water Code (TWC), §5.102, which provides the commission with the general powers to carry out its duties under the TWC; §5.103, which authorizes the commission to adopt any rules necessary to carry out the powers and the duties under the provisions of the TWC and other laws of this state; and §5.105, which authorizes the commission by rule to establish and approve all general policy of the commission. The amended and new sections are also adopted under Texas Health and Safety Code, TCAA, §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.002, 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, which authorizes the commission to establish the level of quality to be maintained in the state's air and to control the quality of the state's air; §382.012, which authorizes the commission to prepare and develop a general, comprehensive plan for the 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; and §382.051, 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.

The adopted new and amended sections implement Texas Health and Safety Code, §§382.002, 382.011, 382.012, 382.016, 382.017, and 382.051.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 26, 2005.

TRD-200502140

Stephanie Bergeron Perdue

Director, Environmental Law Division

Texas Commission on Environmental Quality

Effective date: June 15, 2005

Proposal publication date: December 31, 2004

For further information, please call: (512) 239-6087


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

The Texas Commission on Environmental Quality (commission) adopts the amendments to §116.12 and §116.150 with changes to the proposed text as published in the February 25, 2005, issue of the Texas Register (30 TexReg 1016).

These amendments will be submitted to the United States Environmental Protection Agency (EPA) as revisions to the state implementation plan (SIP).

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES

After adoption of the Federal Clean Air Act (FCAA) Amendments of 1990, the EPA classified the designated four areas of Texas that failed to meet the one-hour national ambient air quality standard (NAAQS) for the air contaminant ozone. Each area was classified by the EPA based on the amount by which it exceeded the ozone NAAQS of 0.12 parts per million (ppm) based on a peak one-hour concentration of ozone. Eight counties in the Houston-Galveston-Brazoria (HGB) area (Brazoria, Chambers, Fort Bend, Galveston, Harris, Montgomery, and Waller) were classified as Severe and El Paso County was classified as Serious. Four counties in the Dallas- Fort Worth (DFW) area (Collin, Dallas, Denton, and Tarrant) were originally classified as Moderate and then reclassified to Serious. Three counties in the Beaumont-Port Arthur (BPA) area (Hardin, Jefferson, and Orange) were originally classified as Serious, then reclassified to Moderate, and reclassified again, in 2004, to Serious. The classification of an area has specific effects on sources of air contaminants within the area including what will be considered a major source of contaminants. In the case of ozone, the contaminants of concern are volatile organic compounds (VOC) and nitrogen oxides (NO x ), referred to as ozone precursers.

If a proposed project (modification of existing facilities or new construction) is determined to be a major modification, the project is subject to federal nonattainment new source review (NNSR) and specific levels of pollution control, which generally mean that the source will be required to meet the lowest achievable emission rate (LAER) and offset the emissions increase.

To determine if a modification at a major source results in an emission increase that would make the project a major modification, the source owner performs a netting exercise if the project emission increase is greater than the netting trigger (five tons per year (tpy) under current commission rules). Netting is an accounting procedure used to determine the amount of increase in emissions by a source over a specified period of time. All emission increases and decreases at a source over the specified time (netting period) are added or subtracted and, if the resulting figure is at or above the major modification threshold, the source becomes subject to NNSR. This major modification threshold is determined by an area's classification (Severe, Serious, Moderate). The netting trigger and netting period are the principal subjects of this adoption.

On April 30, 2004, the EPA adopted the Phase 1 Implementation Rule (69 FR 23951), implementing a new eight-hour ozone NAAQS, effective June 15, 2004. On the same date, the EPA designated and classified areas that were not in attainment of the eight-hour standard (69 FR 23858). In the Phase 1 Implementation Rule, the EPA stated that it plans to issue a second final rule, Phase 2, which will address many of the planning and control obligations under FCAA, §172 and §182 that will apply for purposes of implementing the eight-hour ozone NAAQS. These rules will include, among other things, new source review (NSR). The EPA designated four areas of Texas as nonattainment for the eight-hour ozone standard, and classifications under the new standard are different from the classifications under the one-hour ozone standard. Specifically, HGB and DFW are classified as Moderate, BPA is classified as Marginal, and El Paso is in attainment of the eight-hour standard. In addition to the four counties in the DFW area classified under the one-hour standard, five additional counties (Ellis, Johnson, Kaufman, Parker, and Rockwall) were designated as Moderate nonattainment. The San Antonio area, consisting of Bexar, Comal, and Guadalupe Counties, was designated nonattainment under FCAA, Title I, Part D, Subpart 1 (42 United States Code (USC), §7502) with a deferred effective date, due to its participation in the Early Action Compact Program. In the Phase 1 Implementation Rule, the EPA also adopted a rule that provides that the EPA will revoke the one-hour standard in full, including designations and classifications, one year following the effective date of the designations for the eight-hour NAAQS. One year after the effective date of the designations for the eight-hour ozone standard is June 15, 2005.

The new EPA Phase 1 Implementation Rules make no changes to the netting procedure or thresholds. The commission is adopting the federal model concerning netting triggers and periods with the exception of the netting trigger in a Serious or Severe nonattainment area where the commission is retaining its existing five tpy trigger. The commission eliminated the netting period for larger major sources that required netting going back to 1992. This period is now too long to be useful and could not be justified for the sources in the five new nonattainment counties in the DFW area. Under the new eight-hour ozone standard, there are no areas currently classified as Serious or Severe. The proposed netting triggers for all eight- hour ozone nonattainment areas is now 40 tpy and all netting periods are five years.

Application of the eight-hour ozone standard for NNSR became effective June 15, 2004, and the commission is updating its rules to implement the necessary changes. On September 24, 2004, in response to a petition by EarthJustice and other environmental groups, the EPA granted a partial reconsideration of the Phase 1 Implementation Rule adopted April 30, 2004, allowing states to apply federal NNSR based on an eight-hour classification. The result of this reconsideration could be a return to the one-hour ozone standard for application of federal NNSR. Therefore, the commission is including contingency language in §116.150, New Major Source or Major Modification in Ozone Nonattainment Areas, and in the table footnotes in the figure located in the definition of major modification in §116.12. This contingency language will go into effect if the EPA decides to require states to return to a one-hour standard for federal NNSR determination.

Adopted changes to the 30 TAC Chapter 101 corresponding rulemaking are also published in this issue of the Texas Register.

NO x Netting and Mass Emission Cap and Trade

The new five-year contemporaneous period for all sources will allow sources to ignore whether the HGB NO x mass emission cap and trade program (MECT) in Chapter 101, Subchapter H, is driving the reduction when determining whether an emission reduction made at a plant site at a facility subject to the MECT is creditable for netting purposes. This will apply only to NO x sources subject to the MECT in HGB for netting exercises only and will not apply to NO x credits or offsets. This determination for sites subject to HGB MECT and NO x netting will not affect the MECT or the SIP because the MECT cap is ultimately the governing factor in the amount of NO x emitted. Furthermore, the moving five-year netting period will ensure that emission reduction strategies driven by MECT compliance at a plant site that are used to "net out" emission increases from increases at the site will have to occur within the same time frame (five years) as the increases. The MECT allows for trading of a fixed number of emission allowances so the emission reductions are not binding on any specific unit or site but it ensures that area-wide emission reductions are made, regardless of changes at any particular site.

SECTION BY SECTION DISCUSSION

The commission made administrative changes for better readability, conformity with the drafting standards in the Texas Legislative Council Drafting Manual , November 2004, and consistency with other commission rules. The commission also made corrections to citations of federal and state law and added USC references to citations of sections of the FCAA.

§116.12, Nonattainment Review Definitions

The commission amended the definition of contemporaneous period in paragraph (7) to require that netting be performed from the date of a modification going back a period of 60 months for all netting exercises. This period is more representative of recent activity as compared to a period that goes back to 1992 and is consistent with the EPA period.

The commission added new footnotes 6 and 7 to the table in the figure located in the definition of major modification in paragraph (11)(A) that require sources in areas that were classified nonattainment for ozone under a one-hour ozone standard to return to the major source thresholds, major modification thresholds, and offset ratios for the one-hour standard for federal NNSR applicability if the EPA requires states to use the one-hour standard after reconsideration of its rule implementing the new eight-hour standard.

Footnote 7 also requires applications submitted for facilities that would be located in areas designated under FCAA, Title I, Part D, Subpart 1 (42 USC, §7502), be evaluated as if the area was classified as Marginal under FCAA, Title I, Part D, Subpart 2 (42 USC, §7502). The evaluation includes both the threshold for determining if there is a major modification as well as the ratio of offsets required along with any other applicable requirement that depends upon an area's nonattainment classification. Currently, only San Antonio is designated under Subpart 1. This is necessary due to the Phase 1 Implementation Rule that apply to areas designated under Subparts 1 or 2.

The commission deleted subparagraphs (E) and (F) from the definition of net emissions increase in paragraph (13). The subparagraphs contained references to a contemporaneous period going back to November 15, 1992.

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

For ease of understanding, the commission reformatted the previously existing subsection (a) into additional subsections and added new language to address the eight-hour netting procedures.

The commission adopts the reformatted subsection (a) to apply major modification procedures to all NSR authorizations issued or claimed. In addition to aligning the date with the effective date of the new designations, the commission is adopting this addition because netting procedures apply to sources authorized under standard permit or permit by rule to demonstrate that modifications under those authorizations are not major.

New subsection (b) contains language addressing the control requirements applicable to major sources or major modifications. The rule citation where the control requirements are found now reads "subsection (e)(1) - (4) of this section." The commission changed the citation concerning the exception for NO x sources in El Paso County from subsection (b) to subsection (f). The commission also changed a reference to subsection (c) because it was obsolete. The phrase "located in the definition of major modification" was added from proposal for better clarification.

The commission adopts new subsection (c), which contains a new netting trigger of 40 tpy for areas classified as Marginal or Moderate ozone nonattainment. The commission retains the five tpy netting trigger for areas classified as Serious or Severe.

The commission adopts new subsection (d), which contains contingency language that will go into effect if the EPA, after reconsideration of the eight-hour standard, requires states to use the area's one-hour standard classification for determining applicability of NNSR. The contingency language will require sources in areas that were classified nonattainment for ozone under a one-hour ozone standard to return to a netting trigger of five tpy, which is based on a one-hour ozone standard for the applicability of federal NNSR. The commission added this language because EPA agreed to reconsider the eight-hour designations in reaction to lawsuits filed by EarthJustice and other environmental organizations.

New subsection (e) contains language from previously existing subsection (a) concerning emission standards and offsets for sources and modifications classified as major sources and modifications. The phrase "located in the definition of major modification" was added from proposal for better clarification.

New subsection (f) exempts sources located in El Paso County from the requirements of this section concerning NO x emissions and contains identical language from previously designated subsection (b).

The commission also made administrative changes for readability, conformity with drafting standards in the Texas Legislative Council Drafting Manual , November 2004, and consistency with other commission rules.

FINAL REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the adopted rulemaking in light of the regulatory impact analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking does not meet the definition of a "major environmental rule." Furthermore, it does not meet any of the four applicability requirements listed in Texas Government Code, §2001.0225(a). A "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 adopted amendments revise the netting trigger and netting period for projects that are a major modification and are therefore subject to federal NNSR for air quality permitting and specific levels of pollution control. The amendments also make NNSR requirements applicable to the San Antonio area and the five additional counties in the DFW area. Because San Antonio is an early action compact area, it has a deferred effective date of September 30, 2005, and will continue to be deferred as it remains in compliance with the compact agreements. The amendments also make changes to the definition of contemporaneous period and net emissions increase as well as changes to the figure in the definition of major modification, and nonsubstantive organizational changes. The adopted amendments will not 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.

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 adopted amendments do not exceed a standard set by federal law or exceed an express requirement of state law. There is no contract or delegation agreement that covers the topic that is the subject of this rulemaking. Finally, this rulemaking was not developed solely under the general powers of the agency, but is authorized by specific sections of the Texas Health and Safety Code (THSC) and Texas Water Code (TWC), which are cited in the STATUTORY AUTHORITY section of this preamble. Therefore, this rulemaking is not subject to the regulatory analysis provisions of Texas Government Code, §2001.0225(b), because the amendments do not meet any of the four applicability requirements.

TAKINGS IMPACT ASSESSMENT

The commission completed a takings impact analysis for the adopted amendments. The specific purpose of this rulemaking is to revise the netting trigger and netting period for projects that are a major modification and are therefore subject to federal NNSR for air quality permitting and specific levels of pollution control. The amendments implement NNSR requirements for the newly designated San Antonio area and the five additional counties in the DFW area. The amendments also make nonsubstantive organizational changes. Promulgation and enforcement of the adopted amendments would be neither a statutory nor a constitutional taking because they do not affect private real property. Specifically, the adopted amendments do not affect private property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of a governmental action. Therefore, the amendments do not constitute a takings under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission determined that this rulemaking action relates to an action or actions subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources Code, §§33.201 et seq. ), and the commission rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the CMP. As required by §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Coastal Management Program, commission rules governing air pollutant emissions must be consistent with the applicable goals and policies of the CMP. The commission reviewed this action for consistency with the CMP goals and policies in accordance with the rules of the Coastal Coordination Council, and determined that the action is consistent with the applicable CMP goals and policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas (31 TAC §501.12(l)). No new sources of air contaminants are authorized and the adopted revisions maintain the same level of emissions control as the previously existing rules. The CMP policy applicable to this rulemaking action is the policy that commission rules comply with federal regulations in 40 Code of Federal Regulations (CFR), to protect and enhance air quality in the coastal areas (31 TAC §501.14(q)). This rulemaking action complies with 40 CFR Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirms that this rulemaking action is consistent with CMP goals and policies.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMITS PROGRAM

Sections 116.12 and 116.150 are applicable requirements under 30 TAC Chapter 122, Federal Operating Permits Program. Upon the effective date of this rulemaking, owners or operators subject to the Federal Operating Permit Program that modify any NSR authorized sources at their sites are subject to the amended requirements of §116.12 and §116.150.

PUBLIC COMMENT

The commission conducted a public hearing in Austin on March 17, 2005. Four comments were received during the public comment period, which closed on March 28, 2005. Comments were received from: Sierra Club, Houston Regional Group (HSC); Baker Botts L.L.P. on behalf of Texas Industry Project (TIP); EPA; and Clark, Thomas, and Winters on behalf of Enbridge Gathering LP, Acacia Natural Gas Corporation, a subsidiary of Devon Energy Corporation, and Energy Transfer Company (CTW). HSC opposed the proposal, while TIP, CTW, and EPA generally supported the proposal with comments.

TIP commented that the commission proposed two unnecessary word changes in §116.112(10) and (11)(B) where the term "shall not" was changed to "may not." TIP stated that Texas Government Code, §311.016(5) makes clear that the terms are synonymous and commented that the term should not be changed to eliminate potential confusion.

The commission reviewed the use of the terms "shall not" and "may not" and their use according to the Texas Legislative Council Drafting Manual and will leave the term "shall not" unchanged.

HSC stated that the 40 tpy netting trigger will allow greater health, mortality, safety, and environmental effects in the nonattainment area and suggested that the commission reject the standard.

The commission acknowledges that a 40 tpy netting trigger will allow more projects to be authorized without a netting analysis, but the commission disagrees that this will result in adverse health effects. Like the one-hour ozone standard, the eight-hour standard is health based, and the 40 tpy trigger is based on the eight- hour standard. The 40 tpy trigger has been the netting trigger for Moderate areas since the FCAA amendments of 1990. The commission has not changed the rule in response to this comment.

TIP commented on a paragraph in the preamble concerning the ability to credit reductions under the HGB NO x MECT, which states that "the commission will allow the reductions required by the HGB NO x mass emission cap and trade program (MECT) in 30 TAC Chapter 101, Subchapter H, to be creditable for netting purposes." TIP expressed the belief that this statement incorrectly suggests that the proposals in Chapter 116 affect the ability to credit reductions under the MECT.

The rule does not affect the ability of a site to generate excess allowances under the MECT by reducing emissions. The statement identified by the commenter clarifies that reductions made under the MECT to comply with a site's allocation will be considered surplus for netting purposes.

CTW commented that the commission should make an independent determination of a return to a one-hour ozone standard should EPA make that decision. CTW stated that the commission should apply the one-hour standard only to the four counties originally in the DFW nonattainment area.

Texas would be unable to make an independent determination since the designation and classification of areas is based on a national air standard and is determined at the federal level. The commission has not changed the rule in response to this comment.

EPA requested that the commission provide rationale for how a five-year contemporaneous period will affect the strategy to attain and maintain an eight-hour ozone standard and whether a five tpy netting trigger combined with that period will provide sufficient reductions.

A five-year contemporaneous period is the same as required for Moderate and Marginal areas under federal rules and is more consistent with the baseline used in SIP modeling demonstrations. The tagged netting window for sources with emissions greater than 250 tpy required that emissions increases and decreases made well before the SIP baseline year be considered in whether a project would be subject to nonattainment review. Given that fewer than 20 nonattainment permits were issued in Texas prior to 2001, it is likely that including emission increases and decreases prior to that date in netting exercises would result in a lower net emissions increase at most sites.

The five tpy netting trigger will only come into play if a nonattainment area should become subject to the requirements associated with a Serious or Severe nonattainment designation. It was accepted by EPA as equivalent to the federal standard provided that sources with a potential to emit greater than 250 tpy maintained a contemporaneous period back to 1992 to ensure that any small emission increases were included in the contemporaneous period. The federal applicability analysis (netting) associated with the issued nonattainment permits in Texas was reviewed prior to these rules being proposed to determine if including this additional period would have resulted in any of those projects being subject to nonattainment review. The commission was unable to identify any cases where nonattainment review would not have been required with a five-year contemporaneous period. Based on this experience, a five-year contemporaneous period with a five tpy netting trigger would be equivalent to the commission's current rules for Serious and Severe nonattainment areas.

The commission established cap and trade programs in the HGB nonattainment area for NO x and highly reactive volatile organic compounds, as defined in 30 TAC §115.10. These programs will ensure that emissions in that area will be consistent with what is necessary for the SIP, regardless of what construction or modifications take place under NSR. Finally, the commission will ensure that the SIP demonstration has the appropriate growth factor.

EPA requested that the commission clarify whether it interprets its SIP to make nonattainment NSR requirements applicable to areas that may be designated nonattainment in the future. EPA requested clarification of the timing of applicability of prevention of significant deterioration and NNSR requirements for previously designated and newly designated nonattainment areas prior to the effective dates of both the eight-hour ozone designations and withdrawal of the one-hour ozone standard. Specifically, EPA requested clarification that NNSR requirements apply to final permits issued after June 15, 2004, in areas designated as nonattainment of the eight-hour as well as the one-hour ozone standard and that the date of permit issuance, not administrative completeness, determines applicability of NSR requirements. EPA asked whether the commission will interpret its SIP to require areas that may be designated as nonattainment in the future be subject to federal regulations at 40 CFR Part 51, Appendix S until the SIP is revised to include the area or will the NSR requirements become automatically applicable upon the effective date of the designation.

The commission has historically interpreted its SIP approved rules to use the administratively complete date to determine which rules apply to a particular permit. Permit applications that were administratively complete before this rulemaking adoption are processed under those rules, which are part of Texas' approved SIP. Adopted §116.150(a) continues the commission's policy to apply the rules based on when permit applications are administratively complete, and specifically provides that the rule applies to all NSR authorizations that are administratively complete after June 15, 2004. EPA rules do not provide a clear answer on when a new designation applies to pending permit applications. EPA has addressed areas in transition through 40 CFR Part 51, Appendix S, and policy memos, but EPA acknowledges that areas that have a SIP approved program in place for newly designated areas are not subject to Appendix S. Therefore, the commission will continue to follow the rules in its SIP.

EPA also requested that the commission clarify that requirements for the one-hour standard remain applicable until June 15, 2005, and that NSR applications are reviewed for one-hour applicability.

The commission will apply the requirements for compliance with the one-hour standard for permits that were administratively complete on or before June 15, 2004, and will not require a separate review under the eight-hour ozone standard for those permits. The commission agrees that the requirements for the one-hour standard remain applicable until June 15, 2005.

EPA commented that the commission's definition of nonattainment area in §101.1(67) and §116.12(11) are generic, but that §101.1(67) also lists specific counties in each nonattainment area under both ozone NAAQS.

The federal citations are included in the definition of nonattainment area in §101.1(67), and as referenced in the definition of major modification in §116.12(11), Table I, Footnote 1. In a concurrent rulemaking, the commission is updating the definition of nonattainment area in §101.1(67).

EPA also noted that the preamble refers to an effective date of the eight-hour standard of June 15, 2005, and requested a correction to June 15, 2004.

The commission has corrected the effective date of the eight-hour standard.

EPA requested that the commission clarify that any reduction under the MECT will only occur at the source at which the proposed increase will occur. EPA also requested clarification of an apparent conflict of the preamble statement, which states that reductions under the MECT can be used for netting purposes with §101.352(d), which states that allowances cannot be used for netting requirements under Chapter 116.

Reductions occurring under the MECT that may simultaneously be used for netting must occur at the same site where the proposed emissions increase will occur. The preamble statement prohibiting allowances from being used for netting requirements addresses the ability for a site with a proposed emissions increase to purchase excess allowances from another site to use in netting. The preamble has been revised to clarify that emission reductions shown in netting must occur at the same NNSR source. Emission reductions used in netting must occur at that source and cannot be transferred to a different source for use in netting. Emission reductions used to generate and sold as emission reduction credits are not creditable for netting.

Subchapter A. DEFINITIONS

30 TAC §116.12

STATUTORY AUTHORITY

The amendment is adopted 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 THSC, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amendment is also adopted under THSC, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state 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 air; §382.012, concerning State Air Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state air; §382.051, concerning Permitting Authority of Commission; Rules, which authorizes the commission to issue permits and adopt rules necessary for permits issued under THSC, Chapter 382; and §382.0518, concerning Preconstruction Permit, which requires that a permit be obtained from the commission prior to new construction or modification of an existing facility.

The adopted amendment implements THSC, §§382.002, 382.011, 382.012, 382.051, and 382.0518.

§116.12.Nonattainment Review Definitions.

Unless specifically defined in the 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 that 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), have the following meanings, unless the context clearly indicates otherwise.

(1) Actual emissions--Actual emissions as of a particular date are equal to the average rate, in tons per year, at which the unit actually emitted the pollutant during a two-year period that precedes the particular date and that is representative of normal source operation. The executive director shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. The executive director may presume that the source-specific allowable emissions for the unit are equivalent to the actual emissions, e.g., when the allowable limit is reflective of actual emissions. For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date.

(2) Allowable emissions--The emissions rate of a stationary source, calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits that restrict the operating rate, or hours of operation, or both), and the most stringent of the following:

(A) the applicable standards specified in 40 Code of Federal Regulations, Part 60 or 61;

(B) the applicable state implementation plan emissions limitation including those with a future compliance date; or

(C) the emissions rate specified as a federally enforceable permit condition including those with a future compliance date.

(3) Begin actual construction--In general, initiation of physical on-site construction activities on an emissions unit that are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operation, this term refers to those on-site activities other than preparatory activities that mark the initiation of the change.

(4) Building, structure, facility, or installation--All of the pollutant-emitting activities that belong to the same industrial grouping, are located in one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities are considered to be part of the same industrial grouping if they belong to the same "major group" (i.e., that have the same two-digit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 supplement.

(5) Commence--As applied to construction of a major stationary source or major modification, means that the owner or operator has all necessary preconstruction approvals or permits and either has:

(A) begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or

(B) entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

(6) Construction--Any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in actual emissions.

(7) Contemporaneous period--For major sources the period between:

(A) the date that the increase from the particular change occurs; and

(B) 60 months prior to the date that construction on the particular change commences.

(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 in tons per year with all other creditable source emission increases and decreases during the contemporaneous period is compared to the MAJOR MODIFICATION column of Table I located in the definition of major modification in this section 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 that does not exceed the amount allowable under applicable new source performance standards promulgated by the United States Environmental Protection Agency under 42 United States Code, §7411, and that reflects the following:

(A) the most stringent emission limitation that is contained in the rules and regulations of any approved state implementation plan for a specific class or category of facility, unless the owner or operator of the proposed facility demonstrates that such limitations are not achievable; or

(B) the most stringent emission limitation that is achieved in practice by a specific class or category of facilities, whichever is more stringent.

(10) Major facility/stationary source--Any facility/stationary source that emits, or has the potential to emit, the amount specified in the MAJOR SOURCE column of Table I located in the definition of major modification in this section or more of any air contaminant (including volatile organic compounds (VOCs)) for which a national ambient air quality standard 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 or nitrogen oxides is considered to be 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 40 Code of Federal Regulations §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) 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) A physical change or change in the method of operation shall not include:

(i) routine maintenance, repair, and replacement;

(ii) use of an alternative fuel or raw material by reason of an order under the Energy Supply and Environmental Coordination Act of 1974, §2(a) and (b) (or any superseding legislation) or by reason of a natural gas curtailment plan under the Federal Power Act;

(iii) use of an alternative fuel by reason of an order or rule of 42 United States Code, §7425;

(iv) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste;

(v) use of an alternative fuel or raw material by a stationary source that the source was capable of accommodating before December 21, 1976 (unless such change would be prohibited under any federally enforceable permit condition established after December 21, 1976) or the source is approved to use under any permit issued under regulations approved under this chapter;

(vi) an increase in the hours of operation or in the production rate (unless the change is prohibited under any federally enforceable permit condition that was established after December 21, 1976); or

(vii) any change in ownership at a stationary source.

(12) Necessary preconstruction approvals or permits--Those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations that are part of the applicable state implementation plan.

(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) An increase or decrease in actual emissions is creditable only if both of the following conditions are met:

(i) it occurs during the contemporaneous period; and

(ii) the executive director has not relied on it in issuing a nonattainment permit for the source (under regulations approved during which the permit is in effect) when the increase in actual emissions from the particular change occurs.

(B) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level.

(C) A decrease in actual emissions is creditable only to the extent that all of the following conditions are met:

(i) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions;

(ii) it is federally enforceable at and after the time that actual construction on the particular change begins;

(iii) the reviewing authority has not relied on it in issuing a prevention of significant deterioration or a nonattainment permit, or the state has not relied on the decrease to demonstrate attainment or reasonable further progress; and

(iv) the decrease has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change.

(D) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days.

(14) Offset ratio--For the purpose of satisfying the emissions offset reduction requirements of 42 United States Code, §7503(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 under the definition of major modification of this section. 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.

(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, may 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 a stationary source.

(16) Project net--The sum of the following: the total proposed increase in emissions resulting from a physical change or change in the method of operation at a stationary source, minus any sourcewide creditable actual emission decreases proposed at the source between the date of application for the modification and the date the resultant modification begins emitting. Increases and decreases must meet the creditability criteria listed under the definition of net emissions increase in this section.

(17) Secondary emissions--Emissions that would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the source or modification itself. Secondary emissions must be specific, well-defined, quantifiable, and impact the same general area as the stationary source or modification that causes the secondary emissions. Secondary emissions include emissions from any off-site support facility that would not be constructed or increase its emissions, except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions that come directly from a mobile source such as emissions from the tail pipe of a motor vehicle, from a train, or from a vessel.

(18) Stationary source--Any building, structure, facility, or installation that emits or may emit any air pollutant subject to regulation under 42 United States Code, §§7401 et seq.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 26, 2005.

TRD-200502134

Stephanie Bergeron Perdue

Director, Environmental Law Division

Texas Commission on Environmental Quality

Effective date: June 15, 2005

Proposal publication date: February 25, 2005

For further information, please call: (512) 239-0348


Subchapter B. NEW SOURCE REVIEW PERMITS

5. NONATTAINMENT REVIEW

30 TAC §116.150

STATUTORY AUTHORITY

The amendment is adopted 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 THSC, §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amendment is also adopted under THSC, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state 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 air; §382.012, concerning State Air Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state air; §382.051, concerning Permitting Authority of Commission; Rules, which authorizes the commission to issue permits and adopt rules necessary for permits issued under THSC, Chapter 382; and §382.0518, concerning Preconstruction Permit, which requires that a permit be obtained from the commission prior to new construction or modification of an existing facility.

The adopted amendment implements THSC, §§382.002, 382.011, 382.012, 382.051, 382.0518.

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

(a) This section applies to all new source review authorizations that are administratively complete after June 15, 2004, for new construction or modification of facilities located in any area designated as nonattainment for ozone in accordance with 42 United States Code (USC), §7407.

(b) The owner or operator of a proposed new or modified facility that will be a new major stationary source of volatile organic compound (VOC) emissions or nitrogen oxides (NO x ) emissions, or the owner or operator of an existing major stationary source of VOC or NO x emissions that will undergo a major modification with respect to VOC or NO x , shall meet the requirements of subsection (e)(1) - (4) of this section, except as provided in subsection (f) of this section. Table I located in the definition of major modifications in §116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source or major modification for those classifications.

(c) Except as noted in subsection (f) of this section regarding NO x , the de minimis threshold test (netting) is required for all modifications to existing major sources of VOC or NO x , unless at least one of the following conditions are met:

(1) the proposed emissions increases associated with a project, without regard to decreases, is less than five tons per year (tpy) of the individual nonattainment pollutant in areas classified under Federal Clean Air Act (FCAA), Title I, Part D, Subpart 2 (42 USC, §7511) classified as Serious or Severe;

(2) the proposed emissions increases associated with a project, without regard to decreases, is less than 40 tpy of the individual nonattainment pollutant in areas classified under FCAA, Title I, Part D, Subpart 1 (42 USC, §7502) and for those under FCAA, Title I, Part D, Subpart 2 (42 USC, §7511) classified as Marginal or Moderate; or

(3) the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tpy.

(d) For the Houston-Galveston-Brazoria, Dallas-Fort Worth, and Beaumont-Port Arthur eight- hour ozone nonattainment areas, if the United States Environmental Protection Agency promulgates rules requiring new source review permit applications in these areas to be evaluated for nonattainment new source review according to that area's one-hour standard classification, except as noted in subsection (b) of this section regarding NO x , the de minimis threshold test (netting) is required for all modifications to existing major sources of VOC or NOx in that area, unless at least one of the following conditions is met:

(1) the proposed emissions increases associated with a project, without regard to decreases, is less than five tpy of the individual nonattainment pollutant; or

(2) the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tpy.

(e) In applying the de minimis threshold test, if the net emissions increases, aggregated over the contemporaneous period, are greater than the major modification levels stated in Table I located in the definition of major modification in §116.12 of this title, then the following requirements apply.

(1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification except as provided in paragraph (3)(B) of this subsection and except for existing major stationary sources that have a potential to emit (PTE) of less than 100 tpy of the applicable nonattainment pollutant. For these sources, best available control technology (BACT) can be substituted for LAER. LAER shall otherwise be applied to each new emission unit and to each existing emission unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit.

(2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state must be in compliance or on a schedule for compliance with all applicable state and federal emission limitations and standards.

(3) At the time the new or modified facility or facilities commence operation, the emissions increases from the new or modified facility or facilities must be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. Internal offsets that are generated at the source and that otherwise meet all creditability criteria can be applied as follows.

(A) Major stationary sources with a PTE of less than 100 tpy of an applicable nonattainment pollutant are not required to undergo nonattainment new source review under this section, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1.

(B) Major stationary sources with a PTE of greater than or equal to 100 tpy of an applicable nonattainment pollutant can substitute BACT for LAER, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Internal offsets used in this manner can also be applied to satisfy the offset requirement.

(4) In accordance with the FCAA, the permit application must contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis must demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location.

(f) For sources located in the El Paso ozone nonattainment area as defined in §101.1 of this title (relating to Definitions), the requirements of this section do not apply to NO x emissions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 26, 2005.

TRD-200502135

Stephanie Bergeron Perdue

Director, Environmental Law Division

Texas Commission on Environmental Quality

Effective date: June 15, 2005

Proposal publication date: February 25, 2005

For further information, please call: (512) 239-0348