30 TAC §115.127
The Texas Natural Resource Conservation Commission (commission)
proposes an amendment to §115.127, concerning Exemptions, and to the
State Implementation Plan (SIP), in order to ensure the reasonable and cost-effective
reduction of volatile organic compound (VOC) emissions in ozone nonattainment
areas.
EXPLANATION OF PROPOSED RULE
The proposed amendment would revise the vent gas rule by extending the
30,000 parts per million (ppm) concentration limit exemption for three pulp
and paper mills until April 15, 2001. The current exemption includes an expiration
date of November 15, 1999, for facilities assigned the Standard Industrial
Classification number 26 (pulp and paper mills). There are six pulp and paper
mills in Texas, but only three are located in ozone nonattainment area counties,
and are therefore subject to Chapter 115 rules.
The vent gas rule was initially adopted in 1972, to control VOC emissions
from various industrial process vents which, at the time, were generally uncontrolled.
The rule originally contained an exemption limit of 30,000 ppm, or 3.0% by
volume, for all sources, because most vent gas streams containing this concentration
level of VOCs will burn without the use of supplemental fuel. Consequently,
the installation of a flare or direct-flame incinerator was a highly cost-effective
first step in controlling vent gas stream emissions.
In 1992, the Texas Air Control Board (predecessor to the commission) lowered
the exemption limit to 612 ppm for all vent gas sources with a compliance
date of July 1994. The 612 ppm limit was based on an United States Environmental
Protection Agency (EPA) Control Techniques Guideline limit for the control
of VOCs in Synthetic Organic Chemical Manufacturing Industry vent gas sources.
In November 1993, the commission extended the compliance date to May 1995,
for all sources, in response to an industry request. In May 1994, the commission
extended the compliance date until November 1998, for pulp and paper mills,
in response to a petition for rulemaking from the Texas Paper Industry Environmental
Council. At the time the extension was approved, the EPA was in the process
of developing a multi-media pulp and paper Maximum Achievable Control Technology
(MACT) standard with targeted 1995, promulgation and 1998, compliance dates.
Industry representatives were concerned that the installation of controls
technology for compliance with the vent gas rule might soon be incompatible
with control requirements specified by the forthcoming MACT standard. The
commission agreed that controls installed for compliance with the vent gas
rule might not be cost- effective if they had to be reworked in the near term.
In April 1997, the commission again extended the exemption until November
15, 1999, because of the EPA delay in issuing the MACT. The MACT has been
promulgated and some conflicts still exist; both the vent gas rule and the
MACT target some of the same processes for control, but with differing compliance
deadlines. The industry has asked that the commission once again extend the
vent gas rule's November 15, 1999, compliance date to avoid the need to control
processes that will be shut down or otherwise controlled by the extension
date.
The Chapter 115 vent gas rule applies to three ozone nonattainment area
mills: Pasadena Paper and Donahue located in Houston/Galveston (HGA), and
Inland located in Beaumont/Port Arthur (BPA). Pasadena Paper has no vents
that would have to be controlled under the 612 ppm limit, but it will be subject
to recordkeeping requirements. Donahue has a 53-ton per year (TPY) vent that
is subject to the vent gas rule's 612 ppm limit, which is also required to
be controlled by April 2006, under the MACT. Donahue representatives, however,
have recently committed to plans to permanently shutdown the kraft mill, the
only unit affected by the exemption, by August 2000. Therefore, the current
issue for Donahue is the cost of installing new controls to address a total
of approximately 40 tons of VOCs over a nine-month period. Inland has a 25-TPY
vent that is subject to the vent gas rule's 612 ppm limit, and is not subject
to the MACT. This vent will be controlled by April 15, 2001, however, as part
of a larger project to reduce emissions from other sources which are subject
to MACT.
Meeting the November 1999 deadline would require the purchase and installation
of controls that would either not be needed beyond August 2000, (in the case
of Donahue), or might need to be reworked or removed when the mill renovates
for compliance with the MACT by April 2001 (in the case of Inland).
Lowering the Chapter 115 vent gas rule exemption to 612 ppm for the pulp
and paper industry before April 15, 2001, is unnecessary because: 1) the amount
of uncontrolled emissions between the current expiration date of November
1999 and the proposed expiration date of April 2001, is 75 tons over the 17-month
period; 2) these emission points are either going to be shut down and demolished
by August 2000, or controlled by April 15, 2001, as part of a larger MACT
compliance project; 3) the mills have already accomplished 800 TPY in reductions,
and; 4) the vent gas rule implements Reasonably Available Control Technology
(RACT) and it is not economically reasonable to require this level of control
on an interim basis.
This rule change to extend the exemption until April 15, 2001, will be
submitted as a SIP revision; however, the uncontrolled 75 tons that will occur
over the 17-month period will not affect any SIP emission reduction obligations
relating to attainment demonstrations. Reductions totaling to 800 TPY, relating
to attainment demonstrations, have already occurred, or will occur, as a result
of permit conditions, existing Chapter 115 vent gas rule requirements, or
controls already installed to comply with MACT. These reductions are the approximately
600 TPY from Donahue's incineration of thermomechanical pulping and tall oil
plant emissions, and Pasadena Paper's approximately 200 TPY from control of
brown stock washer emissions.
It should be noted that while the commission believes it is reasonable
to extend the exemption from November 15, 1999 until April 15, 2001, the commission
cannot foresee a circumstance where an additional extension will be necessary
or granted. The commission expects the affected mills to be in compliance
with the rule by April 15, 2001, to forestall any enforcement action.
In addition, the proposed changes to §115.127, concerning Exemptions,
revise the term "undesignated head" to "division" in response to revised Texas Register
rules (23 TexReg 1289, February 13,
1998).
FISCAL NOTE
Bob Orozco, Strategic Planning and Appropriations, has determined that
for the first five-year period the revisions as proposed are in effect, there
will be no significant fiscal implications for state or local governments
as a result of administration or enforcement of the section. Enforcement of
the rule will not result in an increase in workload for commission staff.
PUBLIC BENEFIT
Mr. Orozco has also determined that for each year of the first five years
the proposed revisions are in effect, the public benefit anticipated from
enforcement of and compliance with the rule will be a more cost-effective
rule. The extension of the vent gas rule exemption until April 15, 2001, will
relieve two pulp and paper mills from installing controls which would either
not be needed beyond August 2000 (in the case of Donahue), or might need to
be reworked or removed when the mill renovates for compliance with the MACT
by April 2001 (in the case of Inland). This revision is not applicable to
any small businesses.
SMALL BUSINESS ANALYSIS
As identified in the public benefit/cost note, the rule is not anticipated
to impose any costs on persons or small businesses.
DRAFT REGULATORY IMPACT ANALYSIS
The commission has reviewed the proposed rulemaking in light of the regulatory
analysis requirements of Texas Government Code (the Code), §2001.0225,
and has determined that the rulemaking is not subject to §2001.0225 because
it does not meet the definition of a "major environmental rule" as defined
in the Code. The revision proposed in this rulemaking will extend the 30,000
ppm concentration limit exemption for the pulp and paper industry until April
15, 2001. This revision does not meet the definition of a major environmental
rule, as it will not adversely affect in a material way the economy, a sector
of the economy, productivity, competition, or jobs. This rule will result
in a cost savings to the industry. Furthermore, this rulemaking will not adversely
affect in a material way the environment, or the public health and safety
of the state or a sector of the state. Adoption of this proposed amendment
will not adversely affect any SIP emission reduction obligations relating
to attainment demonstrations, because of the limited duration and amount of
uncontrolled emissions. The extension of the 30,000 ppm concentration limit
exemption for the pulp and paper industry until April 15, 2001, will mean
that 40 tons from HGA mill remains uncontrolled from November 15, 1999 until
August 2000, and another 35 tons in BPA remains uncontrolled from November
15, 1999 until April 15, 2001.
TAKINGS IMPACT ASSESSMENT
The commission has prepared a takings impact assessment for this rule pursuant
to the Code, 2007.043.The following is a summary of that assessment. The extension
of the vent gas rule exemption until April 15, 2001, will relieve two pulp
and paper mills from installing controls which would either not be needed
beyond August 2000, (in the case of Donahue), or might need to be reworked
or removed when the mill renovates for compliance with the MACT by April 15,
2001 (in the case of Inland). This rule will result in a cost savings to the
industry. Therefore, this revision will not constitute a takings under Chapter
2007 of the Code.
TEXAS COASTAL MANAGEMENT PLAN
The commission has determined that the proposed 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's rules in 30 TAC Chapter 281, Subchapter B, concerning
Consistency with the CMP. As required by 31 TAC §505.11(b)(2) and 30
TAC §281.45(a)(3) relating to actions and rules subject to the CMP, commission
rules governing air pollutant emissions must be consistent with the applicable
goals and policies of the CMP. The commission has reviewed this proposed action
for consistency with the CMP goals and policies in accordance with the rules
of the Coastal Coordination Council, and has determined that the proposed
action is consistent with the applicable CMP goals and policies. The CMP policy
applicable to this rulemaking action is the policy that commission rules comply
with regulations at Title 40, Code of Federal Regulations, to protect and
enhance air quality in the coastal area (31 TAC §501.14(q)). Adoption
of this proposed amendment will not have a significant adverse affect on any
SIP emission reduction obligations relating to attainment demonstrations,
because of the limited duration and amount of uncontrolled emissions. The
extension of the 30,000 ppm concentration limit exemption for the pulp and
paper industry until April 15, 2001 will mean that 40 tons from HGA mill remains
uncontrolled from November 15, 1999 until August 2000, and another 35 tons
in BPA remains uncontrolled from November 15, 1999 until April 15, 2001. Interested
persons may submit comments on the consistency of the proposed rules with
the CMP during the public comment period.
PUBLIC HEARING
A public hearing on this proposal will be held on July 8, 1999 at 10:00
a.m. in Building F, Room 5108 of the commission's central office, located
at 12100 North IH-35, Park 35 Circle, Austin. The hearing is structured for
the receipt of oral or written comments by interested persons. Individuals
may present oral statements when called upon in order of registration. Open
discussion will not occur during the hearing; however, an agency staff member
will be available to discuss the proposal 30 minutes prior to the hearing
and will answer questions before and after the hearing.
SUBMITTAL OF COMMENTS
Comments may be submitted to Lisa Martin, Office of Environmental Policy,
Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087
or faxed to (512) 239-4808. All comments should reference Rule Log Number
98057-115-AI. Comments must be received by 5:00 p.m., July 12, 1999. For further
information or questions concerning this proposal, contact Ann Hammer, Office
of Environmental Policy, Analysis, and Assessment, (512) 239-6255.
Persons with disabilities who have special communication or other accommodation
needs who are planning to attend the hearing should contact the agency at
(512) 239-4900. Requests should be made as far in advance as possible.
STATUTORY AUTHORITY
The amendment is proposed under the Texas Health and Safety Code, the Texas
Clean Air Act (TCAA), §382.012, which provides for the commission to
prepare and develop a general, comprehensive plan for the proper control of
the state's air; and §382.017, which provides the commission with the
authority to adopt rules consistent with the policy and purposes of the TCAA.
The proposed amendment implements Health and Safety Code, §382.017.
§115.127. Exemptions.
(a)
For all persons in the Beaumont/Port Arthur, Dallas/Fort
Worth, El Paso, and Houston/Galveston areas, the following exemptions apply.
(1)
(No change.)
(2)
The following vent gas streams are exempt from the
requirements of §115.121(a)(1) of this title:
(A)-(B)
(No change.)
(C)
until
April 15, 2001
[
November 15,1999
], for facilities which have been assigned the code number 26 as described
in the document Standard Industrial Classification (SIC) Manual, 1972, as
amended by the 1977 Supplement, a vent gas stream specified in §115.121(a)(1)
of this title with a concentration of VOC less than 0.44 psia true partial
pressure (30,000 ppm);
(D)-(E)
(No change.)
(3)-(5)
(No change.)
(6)
A vent gas stream is exempt from this
division
[
undesignated head
] (relating to Vent Gas Control) if all
of the VOCs in the vent gas stream originate from a source(s) for which another
division
[
undesignated head
] within Chapter 115 (for example,
Storage of VOC) has established a control requirement(s), emission specification(s),
or exemption(s) which applies to that VOC source category in that county.
(7)
A combustion unit exhaust stream is exempt from this
division
[
undesignated head
] (relating to Vent Gas Control)
provided that the unit is not being used as a control device for any vent
gas stream which is subject to this
division
[
undesignated
head
] and which originates from a non-combustion source.
(b)
For all persons in Nueces and Victoria Counties, the following
exemptions apply.
(1)-(2)
(No change.)
(3)
A vent gas stream is exempt from this
division
[
undesignated head
] (relating to Vent Gas Control) if all
of the VOCs in the vent gas stream originate from a source(s) for which another
division
[
undesignated head
] within Chapter 115 (for example,
Storage of VOC) has established a control requirement(s), emission specification(s),
or exemption(s) which applies to that VOC source category in that county.
(4)
A combustion unit exhaust stream is exempt from this
division
[
undesignated head
] (relating to Vent Gas Control)
provided that the unit is not being used as a control device for any vent
gas stream which is subject to this
division
[
undesignated
head
] and which originates from a non-combustion source.
(c)
For all persons in Aransas, Bexar, Calhoun, Matagorda,
San Patricio, and Travis Counties, the following exemptions apply.
(1)-(2)
(No change.)
(3)
A vent gas stream is exempt from this
division
[
undesignated head
] (relating to Vent Gas Control) if all
of the VOCs in the vent gas stream originate from a source(s) for which another
division
[
undesignated head
] within Chapter 115 (for example,
Storage of VOC) has established a control requirement(s), emission specification(s),
or exemption(s) which applies to that VOC source category in that county.
(4)
(No change.)
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of the Secretary of State, on
May 28, 1999.
TRD-9903196
Margaret Hoffman
Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: September 8, 1999
For further information, please call: (512) 239-1966