TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 101. GENERAL AIR QUALITY RULES

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §101.27, Emissions Fees, and §101.333, Allocation of Allowances. These sections are also proposed as a revision to the State Implementation Plan (SIP).

BACKGROUND AND SUMMARY OF THE FACTUAL BASE FOR THE PROPOSED RULES

The 76th Legislature passed Senate Bill (SB) 766 in 1999. In general, SB 766 recategorized the new source review authorizations under the Texas Clean Air Act (TCAA) and created the new program for the voluntary permitting of grandfathered facilities. Prior to the revisions by SB 766, the TCAA authorized the commission to issue permits for the construction or modification of facilities that will emit air contaminants; standard permits adopted by rule; and exemptions from permitting, also adopted by rule. SB 766 modified this structure by authorizing the commission to issue standard permits using a process that does not require each standard permit to be in a rule. SB 766 provided a new name, permits by rule, for authorizations of certain types of facilities which would not make a significant contribution of air contaminants to the atmosphere. Exemptions from permitting now authorize only changes at insignificant facilities. Finally, the commission is now authorized to develop criteria for facilities that emit a de minimis amount of air contaminants that do not need preconstruction authorization. Within the category of permits, SB 766 created two new permitting options: the Voluntary Emission Reduction Permit (VERP) program for permitting of grandfathered facilities, and the multiple plant permit (MPP). SB 766 also amended TCAA, §382.0621(d) to require increasing emissions fees for the largest grandfathered facilities which do not have a permit application pending on or after September 1, 2001.

The commission is implementing this legislation in two phases. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999. Included in the first phase were the VERP program and the new standard permit issuance procedures.

This proposal implements elements of SB 766 relating to emissions fees, adds the ability for the commission to accept fee payments via electronic funds transfer, and makes administrative revisions. Other elements of SB 766, including MPPs, de minimis criteria, exemptions from permitting, and permits by rule are addressed in concurrent proposals for new and amended sections in 30 TAC Chapter 106 and Chapter 116. The authority for emissions fees is in TCAA, §382.0621, concerning Operating Permit Fee.

SECTION BY SECTION DISCUSSION

The proposed amendments to §101.27 would insert a new §101.27(c)(2) to implement the emissions fees required by TCAA, §382.0621(d). For grandfathered facilities with emissions in excess of 4,000 tons per year (tpy) which do not have a permit application pending on or after September 1, 2001, all emissions from the facility, including those emissions in excess of 4,000 tpy would be used to calculate the emissions fees required by §101.27. Currently, §101.27 only requires emissions fees to be calculated using a maximum of 4,000 tpy of each regulated air pollutant. Under the proposed amendment, for the first 4,000 tons, per pollutant, the emissions fee would be $26 per ton. Emissions fees for emissions in excess of 4,000 tpy would be $78 per ton for fiscal year 2002, and would triple each fiscal year thereafter. Thus, for fiscal year 2003, the fee for emissions in excess of 4,000 tpy per regulated air pollutant would be $234 per ton. The amended section also allows for fee payments to be made by electronic funds transfer, updates the emissions fee rate table to include Fiscal Years 1998-2000, would reflect the recent reorganization of the commission's permitting offices, corrects a reference to 40 Code of Federal Regulations Part 70, and would revise citations to reflect insertion of a new §101.27(c)(2).

Section 101.333 would be amended to correct an inadvertent omission of the term "NO x ."

FISCAL NOTE

Bob Orozco, Strategic Planning and Appropriations Section, has determined that for the first five-year period the proposed amendment is in effect there will be no significant fiscal implications for the commission and other units of state and local government as a result of administration or enforcement of the proposed amendment. The proposed amendment to Chapter 101, General Air Quality Rules, would implement certain provisions of SB 766, 76th Legislature, 1999, relating to the issuance of certain permits for the emission of air contaminants. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999. Included in the first phase were the VERP program, except for the requirement for increasing emissions fees, and the new standard permit issuance procedures. The proposed amendment is the second phase of the commission's implementation of SB 766. Other elements of SB 766 are addressed in concurrent proposals for new and amended sections in Chapters 106 and 116.

The proposed amendment would implement elements of SB 766 relating to emissions fees, add the ability for the commission to accept fee payments via electronic funds transfer, and make administrative revisions to this chapter. The proposed amendment would affect major source grandfathered facilities with over 4,000 tons of emissions per year. A survey of grandfathered facilities in Texas indicated that 14 facilities at seven sites have emissions over 4,000 tons per year. Currently, emissions fees for each regulated pollutant are capped at 4,000 tons per year at $26 per ton or $104,000 per year per pollutant. SB 766 specifies that the commission shall impose a fee on grandfathered facilities that do not have a permit application pending on or after September 1, 2001 for all emissions, including emissions in excess of 4,000 tons; and triple the amount of the fee imposed for emissions in excess of 4,000 tons each fiscal year. In the proposed amendment, grandfathered facilities with emissions in excess of 4,000 tons per year that do not have a permit application pending on or after September 1, 2001 would be assessed emissions fees of $26 per ton for the first 4,000 tons of emissions of a pollutant, $78 per ton for each ton over 4,000 tons in fiscal year 2002, $234 per ton in 2003, and $702 per ton in 2004. The fee for emissions in excess of 4,000 tons of a pollutant would continue to triple each fiscal year thereafter. For example, with the proposed amendment, the fiscal impact on a facility with emissions of one pollutant totaling 6,450 tons per year would be $295,100 in 2002, $677,200 in 2003, and $1.8 million in 2004. It is anticipated that most or all of the facilities that emit over 4,000 tons per year will apply for a VERP or another permit because of the increasing emissions fees.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed amendment is in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendment will be a potential reduction of air contaminants by providing an increased incentive for owners or operators of grandfathered facilities to apply for a permit by September 1, 2001.

The proposed amendment would affect major source grandfathered facilities with over 4,000 tons of emissions per year. A survey of grandfathered facilities in Texas indicated that 14 facilities at seven sites have emissions over 4,000 tons per year. Currently, emissions fees for each regulated pollutant are capped at 4,000 tons per year at $26 per ton or $104,000 per year per pollutant. SB 766 specifies that the commission shall impose a fee on grandfathered facilities that do not have a permit application pending on or after September 1, 2001 for all emissions, including emissions in excess of 4,000 tons; and triple the amount of the fee imposed for emissions in excess of 4,000 tons each fiscal year. In the proposed amendment, grandfathered facilities with emissions in excess of 4,000 tons per year that do not have a permit application pending on or after September 1, 2001 would be assessed emissions fees of $26 per ton for the first 4,000 tons of emissions of a pollutant, $78 per ton for each ton over 4,000 tons in fiscal year 2002, $234 per ton in 2003, and $702 per ton in 2004. The fee for emissions in excess of 4,000 tons of a pollutant would continue to triple each fiscal year thereafter. For example, with the proposed amendment, the fiscal impact on a facility with emissions of one pollutant totaling 6,450 tons per year would be $295,100 in 2002, $677,200 in 2003, and $1.8 million in 2004. It is anticipated that most or all of the facilities that emit over 4,000 tons per year will apply for a VERP or another permit because of the increasing emissions fees.

SMALL AND MICRO-BUSINESS ANALYSES

No significant adverse effects are anticipated to small or micro-businesses as a result of implementing the proposed amendment to Chapter 101 because there are no known small or micro-businesses in Texas that are considered major sources or that emit in excess of 4,000 tons of a pollutant per year.

Therefore, there are no known small or micro-businesses in Texas that will be affected by the proposed amendment to this chapter.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed amendment is intended to protect the environment and reduce risks to human health from environmental exposure. The amendment requires emissions fees for grandfathered facilities that do not have a permit application pending on or after September 1, 2001, on all emissions, including emissions in excess of 4,000 tons; and triple the amount of the fee imposed for emissions in excess of 4,000 tons each fiscal year. These increasing fees could adversely affect 14 facilities at seven sites in Texas which emit over 4,000 tons of emissions if those facilities do not have a permit application pending on or after September 1, 2001. However, implementation of the statutorily mandated fees 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. Section 2001.0225(a) only applies to a major environmental rule, the result of which is to: 1. exceed a standard set by federal law, unless the rule is specifically required by state law; 2. exceed an express requirement of state law, unless the rule is specifically required by federal law; 3. exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4. adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of §2001.0225(a). Specifically, the proposed amendment does not exceed a standard set by state or federal law, but complies with provisions in SB 766 and the Texas Health and Safety Code, concerning Operating Permit Fees. The proposed amendment does not exceed a requirement of a delegation agreement and was not developed solely under the general powers of the agency, but was specifically developed to implement the provisions of the Texas Health and Safety Code as amended by SB 766. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ANALYSIS

The commission has prepared a takings impact assessment for the proposed rule under Texas Government Code, §2007.043. The following is a summary of that assessment. The proposed rule would increase emissions fees on emissions in excess of 4,000 tpy for grandfathered facilities that do not have a permit application pending on or after September 1, 2001. This proposed action does not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action and therefore does not constitute a takings. This action meets an exception to §2007.043, because it is implementing the specific requirement of TCAA, §382.0621(d).

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has 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's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with Texas Coastal Management Program. 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 action for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council. The proposed rule is intended to provide incentive for the reduction of emissions at grandfathered facilities, and the commission has determined that the rule is consistent with the applicable CMP goal expressed in 31 TAC §501.12(1) of protecting and preserving the quality and values of coastal natural resource areas, and the policy in 31 TAC §501.14(q), which requires that the commission protect air quality in coastal areas. This action does not authorize any new emissions. This action is consistent with Title 40 Code of Federal Regulations because it does not authorize an emission rate in excess of that specified by federal requirements. Interested persons may submit comments during the public comment period on the consistency of the proposed rule with the CMP goals and policies.

PUBLIC HEARING

The commission will hold a public hearing on this proposal in Austin at 10:00 a.m. on May 4, 2000 in Room 201A of Texas Natural Resource Conservation Commission Building B, located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not be permitted during the hearing; however, 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, MC 205, Office of Environmental Policy, Analysis, and Assessment, Texas Natural Resource Conservation Commission, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-029B-116-AI. Comments must be received by 5:00 p.m., May 8, 2000. For further information, please contact Beecher Cameron, Policy and Regulations Division, (512) 239-1495.

Subchapter A. GENERAL RULES

30 TAC §101.27

STATUTORY AUTHORITY

The amendment is proposed under TCAA, §382.0621, which authorizes the commission to triple emissions fees for grandfathered facilities over 4,000 tpy which do not have a permit application pending on or after September 1, 2001. The amendment is also proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; and §382.0622, which defines Clean Air Act fees and their use.

The proposed amendment implements TCAA, §382.0621, concerning Emission Fees; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; and §382.017, concerning Rules.

§101.27.Emissions Fees.

(a)

Applicability. The owner or operator of each account to which this rule applies shall remit to the commission an emissions fee each fiscal year. A fiscal year is defined as the period from September 1 through August 31. A fiscal year, having the same number as the next calendar year, begins on the September 1 prior to that calendar year. An account subject to both an emissions fee and an inspection fee, under §101.24 of this title (relating to Inspection Fees), is required to pay only the greater of the two fees. Each account will be assessed a separate emissions fee. Provisions of this section apply to all accounts, including accounts which have not been assigned specific commission account numbers. The owner or operator of an account subject to an emissions fee requirement is responsible for contacting the appropriate commission regional office to obtain an account number. The commission will not initiate the combination or separation of accounts solely for fee assessment purposes. If an account is operated at any time during the fiscal year for which the fee is assessed, a full emissions fee is due. If the commission is notified in writing that the plant is not and will not be in operation during that fiscal year, a fee will not be due. All regulated air pollutants, as defined in subsection (c) (4) [ (3) ] of this section, including, but not limited to, those emissions from point and fugitive sources during normal operations with the exception of (for applicability purposes only) hydrogen, oxygen, carbon dioxide, water, nitrogen, methane, and ethane, are used to determine applicability of this section. In accordance with rules promulgated [ proposed ] by EPA [ the United States Environmental Protection Agency (EPA) ] at 40 Code of Federal Regulations (CFR) 70, concerning the use of fugitive emissions in major source determinations, fugitive emissions shall be considered toward applicability of this section only for those source categories listed at 40 CFR 51.166(b)(1)(iii). For purposes of this section, an affected account shall have met one or more of the following conditions:

(1)-(9)

(No change.)

(b)

Payment. Fees shall be remitted by check , electronic funds transfer, or money order made payable to the Texas Natural Resource Conservation Commission (TNRCC) [ TNRCC ] and sent to the TNRCC address printed on the fee return form. A completed fee return form shall accompany fees remitted. The fee return form shall include, at least, the company name, mailing address, site name, air emissions inventory [ OAQ ] account number, Standard Industrial Classification (SIC) category, the allowable levels and/or actual emissions of all regulated air pollutants at the account for the reporting period, and the name and telephone number of the person to contact in case questions arise regarding the fee payment.

(c)

Basis for fees.

(1)

The emissions fee shall be based on allowable levels and/or actual emissions at the account during the last full calendar year preceding the beginning of the fiscal year for which the fee is assessed. For purposes of this section, the term "allowable levels" are those limits as specified in an enforceable document such as a permit or Commission Order which are in effect on the date the fee is due. The fee applies to the tonnage of regulated pollutants at the account, including those emissions from point and fugitive sources during normal operations. Although certain fugitive emissions are excluded for applicability determination purposes under subsection (a) of this section, all fugitive emissions must be considered for fee calculations after applicability of the fee has been established. A maximum of 4,000 tons of each regulated pollutant will be used for fee calculations except as provided in paragraph (2) of this subsection . The fee for each fiscal year is set at the following rates.

Figure: 30 TAC §101.27(c)(1)

(2)

On and after September 1, 2001, a grandfathered facility, as defined in §116.10(6) of this title (relating to General Definitions) that does not have a permit application pending under Chapter 116 of this title (relating to Control of Air Pollution by Permits For New Construction or Modification) shall use all emissions, including emissions in excess of 4,000 tons per pollutant, for fee calculations. For the first 4,000 tons per pollutant, the rate in paragraph (1) of this subsection shall apply. For emissions in excess of 4,000 tons, the rate will be $78 per ton for fiscal year 2002 and will triple, each fiscal year, thereafter.

(3)

[ (2) ] The emissions tonnage for the account for fee calculation purposes will be the sum of those allowable levels and/or actual emissions for individual emission points or process units at the account rounded up to the nearest whole number, as follows.

(A)

Where there is an enforceable document, such as a permit or Commission Order, establishing allowable levels, actual emissions may be used only if a completed Emissions Inventory Questionnaire for the account is submitted with the fee payment. For stacks or vents, the inventory must include verifiable data based on continuous emission monitor measurements, other continuously monitored values, such as fuel usage and fuel analysis, or stack testing performed during normal operations using EPA approved methods and quality-assured by the executive director [ OAQ ]. All measurements, monitored values, or testing must have been performed during the basis year as defined in subsection (c)(1) of this section or if not performed during the basis year, must be representative of the basis year as defined in subsection (c)(1) of this section. Actual emission rates may be based upon calculations for fugitive sources, flares, and storage tanks. Actual production, throughput, and measurement records must be submitted, along with complete documentation of calculation methods. Thorough justification is required for all assumptions made and factors used in such calculations. If the actual emissions rate submitted for fee purposes is less than 60% of the allowable emission rate, an explanation of the discrepancy must be submitted. Where inadequate or incomplete documentation is submitted, the executive director may direct that the fee be based on allowable levels. Where a complete and verifiable inventory is not submitted, allowable levels shall be used.

(B)

Where there is not an enforceable document, such as a permit or a Commission Order, establishing allowable levels actual emissions shall be used. Actual production, throughput, or measurement records must be submitted along with complete documentation of calculation methods. Thorough justification is required for all assumptions made and factors used in such calculations.

(4)

[ (3) ] For purposes of this section, the term "regulated pollutant" shall include any VOC [ volatile organic compound ], any pollutant subject to the FCAA, §111, any pollutant listed as a hazardous air pollutant under the FCAA, §112, each pollutant for which a national primary ambient air quality standard has been promulgated (including carbon monoxide), and any other air pollutant subject to requirements under commission rules, regulations, permits, orders of the commission, or court orders. The term "normal operations" shall mean all operations other than those documented under §101.6 of this title (relating to Upset Reporting and Recordkeeping Requirements) or §101.7 of this title (relating to Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements).

(d)-(f)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002118

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter H. EMISSIONS BANKING AND TRADING

2. EMISSIONS BANKING AND TRADING OF ALLOWANCES

30 TAC §101.333

STATUTORY AUTHORITY

The amendment is proposed under Texas Utilities Code (TUC), §39.264, which authorizes the commission to require the permitting of grandfather electric generating facilities and issue allowances to meet those permit emission restrictions; TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; and §382.0622, which defines Clean Air Act fees and their use.

The proposed amendment implements TUC, §39.264, concerning emission reductions of "Grandfathered Facilities"; TCAA, §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; and §382.017, concerning Rules.

§101.333.Allocation of Allowances.

Allowances will be allocated according to the requirements of this section.

(1)

Except as provided in paragraphs (2) and (3) of this section, allowances will be calculated for grandfathered electric generating facilities (EGF) using the following equation:

Figure: 30 TAC §101.333(1)

(A)

In the East Texas Region:

(i)

0.14 pound nitrogen oxides (NO x ) per MMBtu; and

(ii)

1.38 pounds sulfur dioxide (SO 2 ) per MMBtu only for coal-fired grandfathered EGFs.

(B)

In the West Texas and El Paso Regions, 0.195 pounds NO x [ pound ] per MMBtu.

(2)-(7)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002119

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Chapter 106. PERMITS BY RULE

The Texas Natural Resource Conservation Commission (commission) proposes amendments to Chapter 106, Subchapter A, §§106.1, 106.2, 106.4, 106.6, and 106.13, General Requirements; Subchapter C, §§106.101 - 106.103, Domestic and Comfort Heating and Cooling; Subchapter D, §§106.121 - 106.124, Analysis and Testing; Subchapter E, §§106.141 - 106.150, Aggregate and Pavement; Subchapter F, §§106.161 - 106.163, Animal Confinement; Subchapter G, §§106.181 - 106.183, Combustion; Subchapter H, §§106.201 - 106.203, Concrete Batch Plants; Subchapter I, §§106.221, §106.223-106.229, and 106.231, Manufacturing; Subchapter J, §§106.241 - 106.245, Food Preparation and Processing; Subchapter K, §§106.261 - 106.266, General; Subchapter L, §§106.281 - 106.283, 106.291, 106.301, and 106.302, Feed, Fiber, and Fertilizer; Subchapter M, §§106.311 - 106.322, Metallurgy; Subchapter N, §§106.331- 106.333, Mixers, Blenders, and Packaging; Subchapter O, §§106.351 - 106.355, Oil and Gas; Subchapter P, §§106.371 - 106.376, Plant Operations; Subchapter Q, §§106.391 - 106.396, Plastics and Rubber; Subchapter R, §§106.411 - 106.419, Service Industries; Subchapter S, §§106.431 - 106.436, Surface Coating; Subchapter T, §§106.451 - 106.454, Surface Preparation; Subchapter U, §§106.471 - 106.478, Tanks, Storage, and Loading; Subchapter V, §§106.491 - 106.496, Thermal Control Devices; Subchapter W, §106.511, and §106.512, Turbines and Engines; and Subchapter X, §§106.531 - 106.534, Waste Processes and Remediation.

BACKGROUND AND SUMMARY OF THE FACTUAL BASE FOR THE PROPOSED RULES

The 76th Legislature passed Senate Bill (SB) 766 in 1999. In general, SB 766 recategorized the new source review authorizations under the Texas Clean Air Act (TCAA) and created the new program for the voluntary permitting of grandfathered facilities. Prior to the revisions by SB 766, the TCAA authorized the commission to issue permits for the construction or modification of facilities that will emit air contaminants; standard permits adopted by rule; and exemptions from permitting, also adopted by rule. SB 766 modified this structure by authorizing the commission to issue standard permits using a process that does not require each standard permit to be in a rule. SB 766 provided a new name, permits by rule, for authorization of certain types of facilities which would not make a significant contribution of air contaminants to the atmosphere. Exemptions from permitting now authorize only changes at insignificant facilities. Finally, the commission is now authorized to develop criteria for facilities that emit a de minimis amount of air contaminants that do not need preconstruction authorization. Within the category of permits, SB 766 created two new permitting options: the Voluntary Emission Reduction Permit (VERP) program for permitting of grandfathered facilities, and the multiple plant permit. SB 766 also amended TCAA, §382.0621(d) to require increasing emission fees for the largest grandfathered facilities which do not have a permit application pending on or after September 1, 2001.

The commission is implementing this legislation in two phases. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999. Included in the first phase were the VERP program and the new standard permit issuance procedures. This proposal implements the elements of SB 766 relating to exemptions from permitting and permits by rule. Other elements of SB 766, including emissions fees, multiple plant permits, and de minimis criteria, as well as additional elements relating to exemptions from permitting and permits by rule, are being addressed in concurrent proposals for new and amended sections in 30 TAC Chapter 101 and Chapter 116.

Prior to passage of SB 766, under TCAA, §382.057, the commission had the authority to exempt, from permitting requirements, changes within any facility and certain types of facilities that would not make a significant contribution of air contaminants to the atmosphere. These exemptions from permitting are currently contained in Chapter 106, and are also considered to be permits by rule, with many containing emission control requirements or operational restrictions to ensure insignificance. In order to remove the appearance that these insignificant facilities were exempt from environmental regulation in addition to being exempt from permitting, the new TCAA, §382.05196 gives the commission authority to adopt permits by rule for certain types of facilities that will not make a significant contribution of air contaminants to the atmosphere if all of the conditions of an applicable permit by rule are observed. Permits by rule may be used to authorize new construction and/or modifications or changes at the types of facilities listed in Subchapters C-X of this chapter.

The authority for exemptions from permitting is in TCAA, §382.057, concerning Exemption. The authority for permits by rule is in TCAA, §382.051, concerning Permitting Authority of the Commission; Rules; and in TCAA, §382.05196, concerning Permits by Rule.

SECTION BY SECTION DISCUSSION

The proposed new title for Chapter 106 is "Permits by Rule."

The proposed amendments to Subchapter A, concerning General Requirements, clarify that the general requirements apply to permits by rule. Section 106.13 would be amended to clarify that the authorizations formerly known as standard exemptions and exemptions from permitting would be referred to as permits by rule in commission rules, though the conditions of their use would not change.

The proposed amendments to Subchapters C-X revise these sections to delete the word "exempt" and insert the term "permit by rule." The proposal also contains administrative changes, such as changing references to the Office of Air Quality to references to the Office of Permitting, Remediation, and Registration. In addition, the name of §106.332 is proposed to be changed from "Coating" to "Chlorine Repackaging." This name change corrects a mistake made during a previous adoption.

Sections 106.201, 106.202, and 106,203 of Subchapter H, concerning Concrete Batch Plants, would be amended to state that registrations for concrete batch plants under those sections would no longer be accepted by the commission upon issuance of a concrete batch plant standard permit. The commission is currently developing a standard permit for concrete batch plants, with issuance anticipated in August 2000. Until the standard permit is issued, registrations for these exemptions will continue to be accepted. Since standard permits will be issued by the commission during a commission agenda, the affected public will have notice of the action prior to issuance.

This proposal would delete the cross-reference to old exemption from permitting numbers currently listed after the title of each exemption.

FISCAL NOTE

Bob Orozco, Strategic Planning and Appropriations Section, has determined that for the first five-year period the proposed new sections and amendments are in effect there will be no significant fiscal implications for the commission and other units of state and local government as a result of administration or enforcement of the proposed new sections and amendments. The proposed amendments to Chapter 106, Exemptions from Permitting and Permits by Rule, would implement certain provisions of SB 766, 76th Legislature, 1999, relating to the issuance of certain permits for the emission of air contaminants. The commission is implementing this legislation in two phases. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999.

Included in the first phase were the VERP program and the new standard permit issuance procedures. These proposed amendments are the second phase of the commission's implementation of SB 766. Other elements of SB 766 are addressed in concurrent proposals for new and amended sections in Chapters 101 and 116.

The proposed changes to Chapter 106 are primarily administrative in nature, do not add any additional regulatory requirements, and clarify that certain facilities, while being exempt from case-by- case permitting, are not exempt from environmental regulation. In addition, other changes to §§106.201 - 106.203 would only have an impact upon issuance of a standard permit for concrete batch plants. The fiscal implications, if any, would be addressed during the development process for the standard permit, which includes opportunity for public comment. Prior to the passage of SB 766, the commission had the authority to exempt from permitting requirements, changes within any facility and certain types of facilities that would not make a significant contribution of air contaminants to the atmosphere. Exemptions from permitting are currently contained in Chapter 106 and are also considered to be permits by rule, with many containing emission control requirements or operational restrictions to ensure that these facilities' emissions remain insignificant contributors of contaminants to the atmosphere. The proposal would clarify that the authorizations formerly known as standard exemptions and exemptions from permitting would be referred to as permits by rule in commission rules, though the conditions of their use would not change.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed new sections and amendments are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be clarification that certain facilities, while being exempt from case-by-case permitting, are not exempt from environmental regulation.

The proposed amendments to Chapter 106 are not anticipated to have adverse fiscal implications to any person or business as a result of implementing the proposed amendments. The proposed amendments are administrative in nature, do not add any additional regulatory requirements, and clarify that certain facilities, while being exempt from case-by-case permitting, are not exempt from environmental regulation. In addition, other changes to §§106.201 - 106.203 would only have an impact upon issuance of a standard permit for concrete batch plants. The fiscal implications, if any, would be addressed during the development process for the standard permit, which includes opportunity for public comment. Prior to the passage of SB 766, the commission had the authority to exempt from permitting requirements, changes within any facility and certain types of facilities that would not make a significant contribution of air contaminants to the atmosphere. Exemptions from permitting are currently contained in Chapter 106 and are also considered to be permits by rule, with many containing emission control requirements or operational restrictions to ensure that these facilities' emissions remain insignificant contributors of air contaminants to the atmosphere. The proposal would clarify that the authorizations formerly known as standard exemptions and exemptions from permitting would be referred to as permits by rule in commission rules, though the conditions of their use would not change.

SMALL AND MICRO-BUSINESS ANALYSES

No significant adverse effects are anticipated to small or micro-businesses as a result of implementing the proposed amendments. The proposed amendments are administrative in nature, do not add any additional regulatory requirements, and clarify that certain facilities, while being exempt from case-by-case permitting, are not exempt from environmental regulation. In addition, other changes to §§106.201 - 106.203 would only have an impact upon issuance of a standard permit for concrete batch plants. The fiscal implications, if any, would be addressed during the development process for the standard permit, which includes opportunity for public comment. Exemptions from permitting are currently contained in Chapter 106 and are also considered to be permits by rule, with many containing emission control requirements or operational restrictions to ensure that these facilities' emissions remain insignificant contributors of air contaminants to the atmosphere. The proposal would clarify that the authorizations formerly known as standard exemptions and exemptions from permitting would be referred to as permits by rule in commission rules, though the conditions of their use would not change. Existing facilities at small or micro-businesses currently authorized under Chapter 106 would be able to retain that authorization and make future changes or new construction using permits by rule, as appropriate.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed amendments to Chapter 106 are administrative in nature, do not add regulatory requirements, and are intended to clarify that certain facilities, while being exempt from case-by case permitting, are not exempt from environmental regulation. The proposed amendments do not impose any additional regulatory requirements beyond those that currently exist. The proposed amendments do not meet the definition of "major environmental rule" because there is no adverse material effect on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, §2001.0225(a) only applies to a major environmental rule, the result of which is to: 1. exceed a standard set by federal law, unless the rule is specifically required by state law; 2. exceed an express requirement of state law, unless the rule is specifically required by federal law; 3. exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or, 4. adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of §2001.0225(a). Specifically, these new sections amendments do not exceed a standard set by state or federal law, but are proposed to clarify the exemption from permitting process under the Texas Health and Safety Code. The proposed amendments do not exceed a requirement of a delegation agreement and were not developed solely under the general powers of the agency, but were specifically developed to implement the provisions of SB 766. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ANALYSIS

The commission has prepared a takings impact assessment for these proposed rules under Texas Government Code, §2007.043. The following is a summary of that assessment. The commission has determined that this action does not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action and therefore does not constitute a takings. The majority of the proposed amendments are administrative and do not impose any new regulatory requirements. The bulk of the proposal merely changes the name of exemptions from permitting to permits by rule. The changes to §§106.201 - 106.203 are intended to provide notice that upon issuance of the standard permit for concrete batch plants, registrations under those exemptions will no longer be accepted by the commission. This change does not impact existing authorization under these exemptions. The proposed rules are reasonably taken to fulfill requirements of state law.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has 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's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with Texas Coastal Management Program. 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 action for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council. The proposed rules are administrative changes, and the commission has determined that the rules are consistent with the applicable CMP goal expressed in 31 TAC §501.12(1) of protecting and preserving the quality and values of coastal natural resource areas, and the policy in 31 TAC §501.14(q), which requires that the commission protect air quality in coastal areas. This action does not authorize any new emissions. This action is consistent with Title 40 Code of Federal Regulations because it does not authorize an emission rate in excess of that specified by federal requirements. Interested persons may submit comments during the public comment period on the consistency of the proposed rule with the CMP goals and policies.

PUBLIC HEARING

The commission will hold a public hearing on this proposal in Austin on May 4, 2000 in Room 201A of Texas Natural Resource Conservation Commission Building B, located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not be permitted during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearings and will answer questions before and after the hearing.

SUBMITTAL OF COMMENTS

Comments may be submitted to Lisa Martin, MC 205, Office of Environmental Policy, Analysis, and Assessment, Texas Natural Resource Conservation Commission, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999- 029B-116-AI. Comments must be received by May 8, 2000. For further information, please contact Beecher Cameron, Policy and Regulations Division, (512) 239-1495.

Subchapter A. GENERAL REQUIREMENTS

30 TAC §§106.1, 106.2, 106.4, 106.6, 106.13

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.1.Purpose.

This chapter identifies changes within facilities or certain types of facilities which the commission has determined will not make a significant contribution of air contaminants to the atmosphere [ and ] pursuant to the Texas Health and Safety Code, the Texas Clean Air Act (TCAA), §382.057 and §382.05196 [ are exempt from the permit requirements of the TCAA, §382.0518 ].

§106.2.Applicability.

This chapter applies to changes within facilities or types of facilities listed in this chapter where construction is commenced on or after the effective date of the relevant permit by rule [ exemption ].

§106.4.Requirements for Permitting by Rule [ Exemptions from Permitting ].

(a)

To qualify for a permit by rule [ an exemption ], the following general requirements must be met.

(1)

Total actual emissions authorized under permit by rule [ exemption ] from the [ proposed ] facility shall not exceed 250 tons per year (tpy) of carbon monoxide (CO) or nitrogen oxides (NO x ); or 25 tpy of volatile organic compounds (VOC) or sulfur dioxide (SO 2 ) or inhalable particulate matter (PM 10 ); or 25 tpy of any other air contaminant except carbon dioxide, water, nitrogen, methane, ethane, hydrogen, and oxygen.

(2)

Any facility or group of facilities, which constitutes a new major stationary source, as defined in §116.12 of this title (relating to Nonattainment Review Definitions), or any modification which constitutes a major modification, as defined in §116.12 of this title, under the new source review requirements of the Federal Clean Air Act (FCAA), Part D (Nonattainment) as amended by the FCAA Amendments of 1990, and regulations promulgated thereunder, must meet the permitting requirements of Chapter 116, Subchapter B of this title (relating to New Source Review Permits) and cannot qualify for a permit by rule [ an exemption ] under this chapter. Persons claiming a permit by rule [ an exemption ] under this chapter should see the requirements of §116.150 of this title (relating to New Major Source or Major Modification in Ozone Nonattainment Areas) to ensure that any applicable netting requirements have been satisfied.

(3)

Any facility or group of facilities, which constitutes a new major stationary source, as defined in 40 Code of Federal Regulations (CFR) §52.21, or any change which constitutes a major modification, as defined in 40 CFR §52.21, under the new source review requirements of the FCAA, Part C (Prevention of Significant Deterioration) as amended by the FCAA Amendments of 1990, and regulations promulgated thereunder, must meet the permitting requirements of Chapter 116, Subchapter B of this title and cannot qualify for a permit by rule [ an exemption ] under this chapter.

(4)

Unless at least one facility at an account has been subject to public notification and comment as required in Chapter 116, Subchapter B or Subchapter D of this title (relating to New Source Review Permits or Permit Renewals), total actual emissions from all facilities permitted by rule [ exempted facilities ] at an account shall not exceed 250 tpy of CO or NO x ; or 25 tpy of VOC or SO2 or PM 10 ; or 25 tpy of any other air contaminant except carbon dioxide, water, nitrogen, methane, ethane, hydrogen, and oxygen.

(5)

Construction or modification of a facility commenced on or after the effective date of a revision of this section or the effective date of a revision to a specific permit by rule [ exemption ] in this chapter must meet the revised requirements to qualify for a permit by rule [ an exemption ].

(6)

A [ proposed ] facility shall comply with all applicable provisions of the FCAA, §111 (Federal New Source Performance Standards) and §112 (Hazardous Air Pollutants), and the new source review requirements of the FCAA, Part C and Part D and regulations promulgated thereunder.

(7)

There are no permits under the same commission [ Texas Natural Resource Conservation Commission ] account number that contain a condition or conditions precluding the use of permit by rule [ standard exemption or an exemption ] under this chapter.

(b)-(c)

(No change.)

(d)

Facilities permitted by rule under [ exempted by ] this chapter are not exempted from any permits or registrations required by local air pollution control agencies. Any such requirements must be in accordance with TCAA, §382.113 and any other applicable law.

§106.6.Registration of Emissions.

(a)

An owner or operator may certify and register the maximum emission rates from facilities permitted by rule [ exempted ] under this chapter in order to establish enforceable allowable emission rates which are below the emission limitations in §106.4 of this title (relating to Requirements for Permitting by Rule [ Exemption from Permitting ]).

(b)

All representations with regard to construction plans, operating procedures, and maximum emission rates in any certified registration under this section become conditions upon which the facility permitted by rule [ exempt facility ] shall be constructed and operated.

(c)-(d)

(No change.)

(e)

The certified registration shall be maintained on-site and be provided immediately upon request by representatives of the commission [ Texas Natural Resource Conservation Commission ] or any air pollution control agency having jurisdiction. If the plant site is unmanned, the regional manager may authorize an alternative site to maintain this documentation. Copies of the certified registration shall be included in applications for permits subject to review under the divisions [ undesignated heads ] in Chapter 116, Subchapter B of this title (relating to New Source Review Permits).

References to Standard Exemptions and Exemptions from Permitting [ Permits by Rule ].

The authorizations formerly known as standard exemptions and exemptions from permitting are referred to as permits by rule in this title. Types of facilities and changes within facilities authorized by those standard exemptions and exemptions from permitting continue to be authorized unless modifications or changes to those facilities has caused them to no longer meet the conditions of the former standard exemption or exemption from permitting and the general requirements of this subchapter [ Exemptions from permitting in this chapter are also permits by rule ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002120

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter C. DOMESTIC AND COMFORT HEATING AND COOLING

30 TAC §§106.101 - 106.103

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.101.Domestic Use Facilities [ (Previously SE 1) ].

Any facility constructed and operated at a domestic residence for domestic use is permitted by rule [ exempt ].

§106.102.Comfort Heating [ (Previously SE 3) ].

This section permits by rule [ exempts ] combustion units designed and used exclusively for comfort heating purposes employing liquid petroleum gas, natural gas, solid wood, or distillate fuel oil. Distillate fuel oil includes diesel fuel, kerosene, and heating oil Grades 4 and lighter. Distillate fuel oil does not include heavier residual oils such as Grades 5 and 6 fuel oil. Combustion of bark chips, sawdust, wood chips, treated wood, or wood contaminated with chemicals is not included. Used oil that has not been mixed with hazardous waste may be used as fuel in space heaters provided that:

(1)-(3)

(No change.)

§106.103.Air Conditioning and Ventilation Systems [ (Previously SE 4) ].

Comfort air conditioning systems or comfort ventilating systems which are not used to remove air contaminants generated by or released from specific units of equipment are permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002121

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter D. ANALYSIS AND TESTING

30 TAC §§106.121 - 106.124

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.121.Hydraulic and Hydrostatic Testing Equipment [ (Previously SE 12) ].

Equipment used for hydraulic or hydrostatic testing is permitted by rule [ exempt ].

§106.122.Bench Scale Laboratory Equipment [ (Previously SE 34) ].

Bench scale laboratory equipment and laboratory equipment used exclusively for chemical and physical analyses are permitted by rule [ exempt ].

§106.123.Vacuum-producing Devices for Laboratory Use [ (Previously SE 49) ].

Vacuum-producing devices used in laboratory operations are permitted by rule [ exempt ].

§106.124.Pilot Plants [ (Previously SE 76) ].

Any new or modified pilot plant is permitted by rule [ exempt ], provided the following conditions of this section are met.

(1)-(5)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002122

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter E. AGGREGATE AND PAVEMENT

30 TAC §§106.141 - 106.150

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.141. Batch Mixers [ (Previously SE 25) ].

Batch mixers with rated capacity of five cubic feet or less for mixing cement, sand, aggregate, additives, and/or water or similar materials are permitted by rule [ exempt ].

§106.142.Rock Crushers [ (Previously SE 73) ].

Any rock crusher with a maximum rated capacity of 200 tons per hour or less that operates according to the following conditions of this section is permitted by rule [ exempt ]:

(1)-(6)

(No change.)

§106.143.Wet Sand and Gravel Production [ (Previously SE 77) ].

Any wet sand and gravel production facility that obtains its material from subterranean and subaqueous beds where the deposits of sand and gravel are consolidated granular materials resulting from natural disintegration of rock and stone and whose production rate is 500 tons per hour or less is permitted by rule [ exempt ]. All permanent in-plant roads shall be paved and cleaned as necessary or watered as necessary to achieve maximum control of dust emissions.

§106.144. Bulk Mineral Handling [ (Previously SE 91) ].

All bulk mineral product (except asbestos) handling facilities that operate in compliance with the following conditions of this section are permitted by rule [ exempt ].

(1)-(3)

(No change.)

(4)

Before construction begins, written site approval must be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

§106.145.Bulk Sand Handling [ (Previously SE 92) ].

All oil well servicing bulk sand handling facilities that operate according to the following conditions of this section are permitted by rule [ exempt ].

(1)-(4)

(No change.)

(5)

Before construction begins, the owner or operator shall file with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin a completed Form PI-7 and supporting documentation demonstrating that all of the requirements of the permit by rule [ exemption ] will be met.

§106.146.Soil Stabilization Plants [ (Previously SE 94) ].

Any soil stabilization facility that operates according to the following conditions of this section is permitted by rule [ exempt ].

(1)-(7)

(No change.)

(8)

Before construction of the facility begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediating, and Registration [ Air Quality ] in Austin using Form PI-7.

(9)

(No change.)

§106.147.Asphalt Concrete Plants [ (Previously SE 99) ].

Any asphalt concrete facility that complies with 40 Code of Federal Regulations Part 60, Subparts A and I and operates according to the following conditions of this section is permitted by rule [ exempt ].

(1)

(No change.)

(2)

Fuel for dryers shall be sweet natural gases as defined in Chapter 101 of this title (relating to General Air Quality Rules) or liquid petroleum gas, diesel, or fuel oil with a maximum sulfur content of 1.5%.

(3)-(5)

(No change.)

(6)

Before construction of the facility begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7, including a current Table 22.

(7)

(No change.)

§106.148.Material Unloading [ (Previously SE 112) ].

Railcar or truck unloading of wet sand, gravel, aggregate, coal, lignite, and scrap iron or scrap steel (but not including metal ores, metal oxides, battery parts, or fine dry materials) into trucks or other railcars for transportation to other locations is permitted by rule [ exempt ], provided the following conditions of this section are met.

(1)-(3)

(No change.)

§106.149.Sand and Gravel Processing [ (Previously SE 114) ].

Any sand and gravel production facility that obtains its material from deposits of sand and gravel consisting of natural disintegration of rock and stone is permitted by rule [ exempt ], provided that the following conditions of this section are satisfied:

(1)-(7)

(No change.)

§106.150.Asphalt Silos [ (Previously SE 122) ].

Any silo used to store hot mix asphalt or asphalt emulsion concrete mixtures which meets the following conditions of this section is permitted by rule [ exempt ]:

(1)-(2)

(No change.)

(3)

fuel used for heating the silo is sweet natural gas as defined in Chapter 101 of this title (relating to General Air Quality Rules) or liquid petroleum gas or first run refinery grade diesel or Number 2 fuel oil that is not a blend containing waste oils or solvents and that contains less that 0.5% by weight sulfur;

(4)

(No change.)

(5)

before construction begins, written site approval is received from the executive director and the facility is registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002123

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter F. ANIMAL CONFINEMENT

30 TAC §§106.161 - 106.163

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.161. Animal Feeding Operations [ (Previously SE 62) ].

Animal feeding operations which confine animals in numbers specified in paragraph (1) of this section and any associated on-site feed handling and/or feed milling operations which satisfy the following conditions of this section are permitted by rule [ exempt ].

(1)-(7)

(No change.)

(8)

All caged poultry operations designed to feed more than 30,000 birds when a dry manure storage and handling system is used and when located at least 1/4 mile from any recreational area or residence or other structure not occupied or used solely by the owner of the egg laying or caged pullet operation. Before construction of the caged laying and caged pullet operations begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] using Form PI-7.

(9)

(No change.)

§106.162.Livestock Auction Facilities [ (Previously SE 63) ].

Livestock auction sales facilities are permitted by rule [ exempt ], provided the following conditions of this section are satisfied.

(1)-(5)

(No change.)

(6)

Before construction of the facility begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

§106.163.Race Tracks, Zoos, and Animal Shelters [ (Previously SE 72) ].

All animal racing facilities, domestic animal shelters, zoos, and their associated confinement areas, stables, feeding areas, and waste collection and treatment facilities are permitted by rule [ exempt ]. Incineration units are not authorized under this section.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002124

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter G. COMBUSTION

30 TAC §§106.181 - 106.183

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.181. Small Boilers, Heaters, and Other Combustion Devices.

(a)

Small boilers, heaters, drying or curing ovens, furnaces, or other combustion units, but not including stationary internal combustion engines or turbines, are permitted by rule [ exempt ] provided that all the conditions of this section are met.

(b)

(No change.)

§106.182.Ceramic Kilns [ (Previously SE 33) ].

Kilns used for firing ceramic ware, heated exclusively by natural gas, liquid petroleum gas, electricity, or any combination thereof are permitted by rule [ exempt ] where the conditions of this section are met:

(1)-(2)

(No change.)

§106.183. Boilers, Heaters, and Other Combustion Devices [ (Previously SE 7) ].

Boilers, heaters, drying or curing ovens, furnaces, or other combustion units, but not including stationary internal combustion engines or turbines are permitted by rule [ exempt ], provided that the following conditions are met.

(1)-(5)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002125

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter H. CONCRETE BATCH PLANTS

30 TAC §§106.201 - 106.203

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.201. Permanent and Temporary Concrete Batch Plants [ (Previously SE 71) ].

Any permanently or temporarily located concrete plant that accomplishes wet batching, dry batching, or central mixing, and operates in compliance with the following conditions of this section is permitted by rule [ exempt ]. For purposes of this section, a temporarily located concrete facility is one that occupies a designated site for not more than 180 consecutive days or supplies concrete for a single public works project or for the same contractor for related project segments, but not other unrelated projects.

(1)-(9)

(No change.)

(10)

Before construction of the facility begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7, including a current Table 20.

(11)

Upon issuance of a standard permit for concrete batch plants, registrations under this section will no longer be accepted.

§106.202. Temporary Concrete Batch Plants [ (Previously SE 93) ].

Any temporarily located concrete facility that accomplishes wet batching, dry batching, or central mixing and operates according to the following conditions of this section is permitted by rule [ exempt ]. For purposes of this section, a temporarily located concrete facility is one that occupies a designated site for not more than 180 consecutive days or supplies concrete for a single public works project or for the same contractor for related project segments, but not other unrelated projects.

(1)-(11)

(No change.)

(12)

Before construction of the facility begins, written site approval shall be received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7, including a current Table 20. The current Table 20 shall be on file at each plant site.

(13)

(No change.)

(14)

Upon issuance of a standard permit for concrete batch plants, registrations under this section will no longer be accepted.

§106.203. Specialty Batch Plants [ (Previously SE 117) ].

Any specialty wet batch, concrete, mortar, grout mixing, or pre-cast concrete products plant that operates according to the following conditions of this section is permitted by rule [ exempt ].

(1)-(9)

(No change.)

(10)

Before construction of the facility begins, written site approval is received from the executive director and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7, including a current Table 20.

(11)

(No change.)

(12)

Upon issuance of a concrete batch plant standard permit, registrations under this section will no longer be accepted.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002126

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter I. MANUFACTURING

30 TAC §§106.221, 106.223 - 106.229, 106.231

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.221. Extrusion Presses [ (Previously SE 10) ].

Presses used exclusively for extruding metals, minerals, plastics, rubber, or wood are permitted by rule [ exempt ] except where halogenated carbon compounds or hydrocarbon solvents are used as foaming agents. Presses used for extruding scrap materials or reclaiming scrap materials are not permitted by rule [ exempt ].

§106.223.Saw Mills [ (Previously SE 120) ].

Sawmills processing no more than 25 million board feet, green lumber tally of wood per year, in which no mechanical drying of lumber is performed and which meet all of the following provisions of this section are permitted by rule [ exempt ].

(1)-(7)

(No change.)

(8)

Before construction of the facility begins, written site approval must be received from the director of the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin and the facility shall be registered with that office using Form PI-7.

§106.224. Aerospace Equipment and Parts Manufacturing [ (Previously SE 123) ].

Any new aerospace equipment and parts manufacturing plant, or physical and operational change to an existing aerospace equipment and parts manufacturing plant are permitted by rule [ exempt ], provided that the following conditions of this section are satisfied.

(1)

For purposes of this section, aerospace equipment and parts manufacturing plant means the entire operation on the property which engages in the fabrication or assembly of parts, tools, or completed components of any aircraft, helicopter, dirigible, balloon, missile, drone, rocket, or space vehicle. This permit by rule [ exemption ] will not include composite aerospace equipment and parts manufacturing plants. Composite plants are defined to be plants whose products are less than 50% metal, by weight, based on annual production figures. This definition excludes those operations specifically authorized by other permits by rule [ exemptions ]. For example, a boiler would not be considered a part of the aerospace manufacturing plant, but could be authorized under §106.181 of this title (relating to Boilers, Heaters, and Other Combustion Devices), if all pertinent requirements were met.

(2)-(4)

(No change.)

(5)

Before construction or change in operation begins, registration shall be submitted to the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using a completed Form PI-7. The emission data provided in the PI-7 shall include all process emission sources at the plant, both existing and proposed, and shall be the maximum allowed emissions for permitted units, the actual emissions for existing grandfathered [ or exempted ] units or units permitted by rule , and the projected maximum allowable emissions for proposed units. Emissions shall be speciated by chemical compound and the stack parameters, as appropriate, for each emission source shall be provided. Registration shall include a description of the project, calculations, and data identifying specific chemical names, "L" values, "D" values, and a description of pollution control equipment, if any.

(6)-(8)

(No change.)

§106.225.Semiconductor Manufacturing [ (Previously SE 115) ].

Modifications, additions, or relocations of equipment (excluding add-on controls) used for semiconductor manufacturing operations that result in the addition, increase, or substitution of an air contaminant are permitted by rule [ exempt ] provided the following conditions of this section are satisfied.

(1)-(12)

(No change.)

§106.226. Paints, Varnishes, Ink, and Other Coating Manufacturing [ (Previously SE 125) ].

Coating manufacturing operations including raw material storage, weighing, mixing, milling, grinding, thinning, and packaging are permitted by rule [ exempt ], provided the conditions of this section are met. Coating manufacturing is defined as combining ingredients that are manufactured off- site to make paints, varnishes, sealants, stains, adhesives, inks, pigments, maskants, and paint strippers, etc. Resin manufacturing is not permitted by rule [ exempt ] under this section.

(1)-(5)

(No change.)

§106.227.Soldering, Brazing, Welding [ (Previously SE 39) ].

Brazing, soldering, or welding equipment, except those which emit 0.6 ton per year or more of lead, are permitted by rule [ exempt ].

§106.228.Platen Presses for Laminating [ (Previously SE 30) ].

Platen presses used for laminating are permitted by rule [ exempt ].

§106.229. Textile Dyeing and Stripping Equipment [ (Previously SE 15) ].

Equipment used exclusively for the dyeing or stripping of textiles is permitted by rule [ exempt ].

§106.231.Manufacturing, Refinishing, and Restoring Wood Products.

Facilities, including drying or curing ovens, and hand-held or manually operated equipment, used for manufacturing, refinishing, and/or restoring wood products that meet the following requirements are permitted by rule [ exempt from obtaining an air quality permit ].

(1)-(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 March 24, 2000.

TRD-200002127

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter J. FOOD PREPARATION AND PROCESSING

30 TAC §§106.241 - 106.245

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.241. Slaughterhouses [ (Previously SE 109) ].

Any facility where animals or poultry are slaughtered and prepared for human consumption provided that waste products such as blood, offal, and feathers are stored in such a manner as to prevent the creation of a nuisance condition and these waste products are removed from the premises daily or stored under refrigeration until removed are permitted by rule [ exempt ]. In addition, areas used to hold animals or poultry for slaughter shall be kept dry and clean to control odors.

§106.242.Food Preparation [ (Previously SE 20) ].

Equipment used in eating establishments for the purpose of preparing food for human consumption is permitted by rule [ exempt ].

§106.243.Smokehouses [ (Previously SE 29) ].

Smokehouses in which the maximum horizontal inside cross-sectional area does not exceed 100 square feet are permitted by rule [ exempt ].

§106.244.Ovens, Barbecue Pits, and Cookers [ (Previously SE 32) ].

Ovens, mixers, blenders, barbecue pits, and cookers if the products are edible and intended for human consumption are permitted by rule [ exempt ].

§106.245.Ethyl Alcohol Facilities [ (Previously SE 98) ].

Ethyl alcohol (ethanol) production facilities having a capacity of less than 200 gallons of ethanol per day when natural gas, liquid petroleum gas, or Number 2 fuel oil is used to supply heat for cooking and distillation are permitted by rule [ exempt ]. Drying of spent (distillers) grain and water stillage is not authorized under this section.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002128

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter K. GENERAL

30 TAC §§106.261 - 106.266

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.261. Facilities (Emission Limitations) [ (Previously SE 106) ].

Facilities, or physical or operational changes to a facility, are permitted by rule [ exempt ] provided that all of the following conditions of this section are satisfied.

(1)-(7)

(No change.)

(8)

For emission increases of less than five tons per year, notification must be provided using either:

(A)

(No change.)

(B)

Form PI-7-261(a) by March 31 of the following year summarizing all uses of this permit by rule [ exemption ] in the previous calendar year. This annual notification shall include a description of the project, calculations, data identifying specific chemical names, limit values, and a description of pollution control equipment, if any.

[ (9)

This exemption is effective January 1, 1999. The registration requirements in paragraphs (7) and (8) of this section begin January 1, 1999. Registration under paragraph (8)(B) of this section is due beginning March 31, 2000, for exemptions claimed in calendar year 1999. ]

§106.262. Facilities (Emission and Distance Limitations) [ (Previously SE 118) ].

Facilities, or physical or operational changes to a facility, are permitted by rule [ exempt ] provided that all of the following conditions of this section are satisfied.

(1)-(7)

(No change.)

§106.263.Repairs and Maintenance [ (Previously SE 70) ].

Repairs or maintenance not involving structural changes where no new or permanent facilities are installed are permitted by rule [ exempt ].

§106.264.Replacements of Facilities [ (Previously SE 111) ].

A facility which replaces an existing facility is permitted by rule [ exempt ] provided that the following conditions of this section are satisfied:

(1)-(7)

(No change.)

§106.265. Hand-held and Manually Operated Machines [ (Previously SE 40) ].

Hand-held or manually operated equipment used for buffing, polishing, carving, cutting, drilling, machining, routing, sanding, sawing, surface grinding, or turning of ceramic art work, ceramic precision parts, leather, metals, plastics, fiber board, masonry, carbon, glass, graphite, or wood is permitted by rule [ exempt ].

§106.266.Vacuum Cleaning Systems [ (Previously SE 59) ].

Vacuum cleaning systems used exclusively for industrial, commercial, or residential housekeeping purposes are permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002129

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter L. FEED, FIBER, AND FERTILIZER

1. FEED

30 TAC §§106.281 - 106.283

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.281. Feed Milling [ (Previously SE 64) ].

Modifications to feed milling operations which satisfy the following conditions of this section are permitted by rule [ exempt ].

(1)-(2)

(No change.)

§106.282.Feed Grinding Facilities [ (Previously SE 119) ].

Any feed grinding operation which is used only for noncommercial purposes is permitted by rule [ exempt ].

§106.283.Grain Handling, Storage, and Drying [ (Previously SE 74) ].

Any grain handling, storage, and drying facility which meets paragraphs (1)-(3) of this section is permitted by rule [ exempt ].

(1)-(3)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002130

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


2. FIBER

30 TAC §106.291

STATUTORY AUTHORITY

The amendment is proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendment implements §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.291. Cotton Gin Stands [ (Previously SE 69) ].

Replacement or addition of cotton gin stands where no other equipment change or additions are involved are permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002131

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


3. FERTILIZER

30 TAC §106.301, §106.302

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.301. Aqueous Fertilizer Storage [ (Previously SE 85) ].

All aqueous fertilizer storage tanks are permitted by rule [ exempt ].

§106.302.Portable Pipe Reactor [ (Previously SE 108) ].

Portable pipe reactor facilities used to process liquid fertilizer that operate according to the following conditions of this section are permitted by rule [ exempt ].

(1)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

(2)-(5)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002132

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter M. METALLURGY

30 TAC §§106.311 - 106.322

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.311. Crucible or Pot Furnace [ (Previously SE 17) ].

Crucible or pot furnaces with a brim full capacity of less than 450 cubic inches of any molten metal are permitted by rule [ exempt ].

§106.312.Wax Melting and Application [ (Previously SE 18) ].

Equipment used exclusively for the melting or application of wax is permitted by rule [ exempt ].

§106.313.Tumblers for Cleaning or Deburring Metal [ (Previously SE 22) ].

All closed tumblers used for the cleaning or deburring of metal products without abrasive blasting, and all open tumblers with a batch capacity of 1,000 pounds or less are permitted by rule [ exempt ].

§106.314.Shell Core and Mold Machines [ (Previously SE 23) ].

Shell core and shell mold manufacturing machines are permitted by rule [ exempt ].

§106.315. Sand or Investment Molds [ (Previously SE 24) ].

Sand or investment molds with a capacity of 100 pounds or less used for the casting of metals are permitted by rule [ exempt ].

§106.316.Metal Inspection [ (Previously SE 35) ].

Equipment used for inspection of metal products is permitted by rule [ exempt ].

§106.317.Miscellaneous Metal Equipment [ (Previously SE 36) ].

Equipment used exclusively for rolling, forging, pressing, drawing, spinning, or extruding either hot or cold metals by some mechanical means is permitted by rule [ exempt ].

§106.318.Die Casting Machines [ (Previously SE 37) ].

Die casting machines are permitted by rule [ exempt ].

§106.319.Foundry Sand Mold Forming Equipment [ (Previously SE 44) ].

Foundry sand mold forming equipment to which no heat is applied is permitted by rule [ exempt ].

§106.320.Miscellaneous Metallic Treatment [ (Previously SE 57) ].

Electrically heated or sweet natural gas or liquid petroleum gas fueled equipment used exclusively for heat treating, soaking, case hardening, or surface conditioning of metal objects, such as carbonizing, cyaniding, nitriding, carbon nitriding, siliconizing, or diffusion treating is permitted by rule [ exempt ].

§106.321.Metal Melting and Holding Furnaces [ (Previously SE 58) ].

Metal melting and holding furnaces as specified in this section are permitted by rule [ exempt ].

(1)-(2)

(No change.)

§106.322.Furnaces to Reclaim Aluminum or Copper [ (Previously SE 96) ].

Dry hearth reverberatory type holding chamber aluminum or copper metal reclamation/sweat furnaces in which no fluxing, degassing, or refining is conducted, which operate according to the following conditions and limitations of this section are permitted by rule [ exempt ].

(1)-(6)

(No change.)

(7)

Fuel for the furnace shall be sweet natural gas as defined in Chapter 101 of this title (relating to General Air Quality Rules) or liquid petroleum gas, diesel, or Number 2 fuel oil.

(8)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002133

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter N. MIXERS, BLENDERS, AND PACKAGING

30 TAC §§106.331 - 106.333

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.331.Cosmetics Packaging and Pharmaceutical Packaging and Coating [ (Previously SE 47) ].

Equipment used exclusively to package pharmaceuticals and cosmetics or to coat pharmaceutical tablets is permitted by rule [ exempt ].

Chlorine Repackaging [ Coating (Previously SE 81) ].

Facilities that repackage chlorine are permitted by rule [ exempt ], provided all the following conditions of this section are satisfied:

(1)-(6)

(No change.)

§106.333.Water-based Adhesive Mixers [ (Previously SE 28) ].

Equipment used exclusively for the mixing and blending of materials at ambient temperature to make water-based adhesives is permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002134

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter O. OIL AND GAS

30 TAC §§106.351 - 106.355

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

These proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.351. Salt Water Disposal (Petroleum) [ (Previously SE 65) ].

Salt water disposal facilities used to handle aqueous liquid wastes from petroleum production operations and water injection facilities are permitted by rule [ exempt ], provided that the following conditions of this section are met.

(1)-(3)

(No change.)

(4)

Before construction of the facility begins under this section, registration of the permit by rule [ exemption ] shall be submitted to the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7, unless one of the following exceptions applies:

(A)-(B)

(No change.)

§106.352.Oil and Gas Production Facilities [ (Previously SE 66) ].

Any oil or gas production facility, carbon dioxide separation facility, or oil or gas pipeline facility consisting of one or more tanks, separators, dehydration units, free water knockouts, gunbarrels, heater treaters, natural gas liquids recovery units, or gas sweetening and other gas conditioning facilities, including sulfur recovery units at facilities conditioning produced gas containing less than two long tons per day of sulfur compounds as sulfur are permitted by rule [ exempt ], provided that the following conditions of this section are met. This section applies only to those facilities named which handle gases and liquids associated with the production, conditioning, processing, and pipeline transfer of fluids found in geologic formations beneath the earth's surface.

(1)-(4)

(No change.)

(5)

Before operation begins, facilities handling sour gas shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7 along with supporting documentation that all requirements of this section will be met. For facilities constructed under §106.353 of this title (relating to Temporary Oil and Gas Facilities (Previously SE 67)), the registration is required before operation under this section can begin. If the facilities cannot meet this section, a permit under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification) is required prior to continuing operation of the facilities.

§106.353.Temporary Oil and Gas Facilities [ (Previously SE 67) ].

Temporary separators, tanks, meters, and fluid-handling equipment used for a period not to exceed 90 operating days are permitted by rule [ exempt ], provided that all the following conditions of this section are satisfied.

(1)-(4)

(No change.)

§106.354.Iron Sponge Gas Treating Unit [ (Previously SE 79) ].

Iron sponge gas treating units processing streams containing less than 60 pounds per hour of hydrogen sulfide are permitted by rule [ exempt ] provided that the following conditions of this section are satisfied:

(1)-(3)

(No change.)

§106.355.Metering, Purging, and Maintenance of Pipelines [ (Previously SE 100) ].

Metering, purging, and maintenance operations for gaseous and liquid petroleum pipelines (including ethylene, propylene, butylene, and butadiene pipelines) are permitted by rule [ exempt ] provided that operations are conducted according to the following conditions of this section:

(1)-(3)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002135

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter P. PLANT OPERATIONS

30 TAC §§106.371 - 106.376

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.371. Cooling Water Units [ (Previously SE 8) ].

Water cooling towers, water treating systems for process cooling water or boiler feedwater, and water tanks, reservoirs, or other water containers designed to cool, store, or otherwise handle water (including rainwater) that have not been used in direct contact with gaseous or liquid process streams containing carbon compounds, sulfur compounds, halogens or halogen compounds, cyanide compounds, inorganic acids, or acid gases are permitted by rule [ exempt ].

§106.372.Industrial Gases [ (Previously SE 101) ].

Any air separation, or other industrial gas production, storage, or packaging facility is permitted by rule [ exempt ]. Industrial gases, for purposes of this section, include only oxygen, nitrogen, helium, neon, argon, krypton, and xenon.

§106.373.Refrigeration Systems [ (Previously SE 103) ].

Refrigeration systems, including storage tanks used in refrigeration systems, that use one of the following categories of refrigerant are permitted by rule [ exempt ]:

(1)-(2)

(No change.)

(3)

anhydrous ammonia (ammonia) provided:

(A)

the facility is registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7; and

(B)

(No change.)

§106.374.Lime Slaking Facilities [ (Previously SE 121) ].

Any lime slaking facility used to mix quicklime with water is permitted by rule [ exempt ], provided the following conditions of this section are met:

(1)-(4)

(No change.)

§106.375.Aqueous Solutions for Electrolytic and Electroless Processes [ (Previously SE 41) ].

Equipment using aqueous solutions is permitted by rule [ exempt ], providing the conditions of this section are met.

(1)-(3)

(No change.)

§106.376.Decorative Chrome Plating.

Decorative chromium electroplating operations that have a maximum combined rated capacity for all decorative chrome plating rectifiers of not more than 5,000 amperes and which use a fume suppressant or other equivalent control as sufficient to meet §113.190 of this title (relating to Chromium Emissions from Hard and Decorative Chromium Electroplating and Chromium Anodizing Tanks (40 CFR 63, Subpart N)) are permitted by rule [ exempt ]. This permit by rule [ exemption ] may not be used at any site where other chrome plating or chromic acid anodizing operations are conducted.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002136

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter Q. PLASTICS AND RUBBER

30 TAC §§106.391 - 106.396

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.391.Rubber and Plastic Curing Presses [ (Previously SE 11) ].

Presses used for the curing of rubber products and plastic products are permitted by rule [ exempt ].

§106.392.Thermoset Resin Facilities [ (Previously SE 113) ].

Facilities using thermoset resins (excluding resins that do not emit air contaminants) to manufacture or repair products are permitted by rule [ exempt ], provided that the following conditions of this section are satisfied for paragraph (1) and either paragraph (2) or (3) of this section.

(1)-(3)

(No change.)

§106.393.Conveyance and Storage of Plastic and Rubber Material [ (Previously SE 27) ].

Equipment used exclusively for conveying and storing plastic and/or rubber solid materials is permitted by rule [ exempt ], provided that no visible emissions occur and all the conditions of this section are met:

(1)-(2)

(No change.)

§106.394. Plastic Compression and Injection Molding [ (Previously SE 45) ].

Equipment used for compression molding and injection molding of plastics is permitted by rule [ exempt ].

§106.395.Equipment for Mixing Plastic and Rubber (No Solvent) [ (Previously SE 46) ].

Mixers, blenders, roll mills, or calenders for rubber or plastics are permitted by rule [ exempt ], provided the following conditions of this section are satisfied. Mixers, blenders, roll mills, or calenders handling or adding asbestos shall not be eligible to be permitted by rule [ for exemption ] under this section.

(1)-(3)

(No change.)

§106.396.Equipment for Mixing Plastic and Rubber (With Solvent) [ (Previously SE 48) ].

Roll mills or calenders for rubber or plastics in which organic solvents, diluents, or thinners are used are permitted by rule [ exempt ], provided that before construction begins, the facility is registered with Form PI-7 and information regarding process rate and type of material emitted is submitted.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002137

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter R. SERVICE INDUSTRIES

30 TAC §§106.411 - 106.419

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.411. Steam or Dry Cleaning Equipment [ (Previously SE 9) ].

Equipment used exclusively for steam or dry cleaning of fabrics, plastics, rubber, wood, or vehicle engines or drive trains is permitted by rule [ exempt ].

§106.412.Fuel Dispensing [ (Previously SE 14) ].

Equipment used exclusively to store and dispense motor fuels into heavy and light-duty motor vehicles and marine vessels or other watercraft, aircraft, and railroad locomotive engines is permitted by rule [ exempt ].

§106.413.Bond Lining to Brake Shoes [ (Previously SE 19) ].

Equipment used exclusively for bonding lining to brake shoes is permitted by rule [ exempt ].

§106.414.Packaging Lubes and Greases [ (Previously SE 26) ].

Equipment used exclusively for the packaging of lubricants or greases is permitted by rule [ exempt ].

§106.415.Laundry Dryers [ (Previously SE 43) ].

Laundry dryers, extractors, or tumblers used for fabrics cleaned with water solutions of bleach or detergents are permitted by rule [ exempt ].

§106.416.Uranium Recovery Facilities [ (Previously SE 95) ].

A uranium in-situ solution recovery facility producing yellowcake is permitted by rule [ exempt ], provided that the facility operates according to the following conditions of this section.

(1)-(3)

(No change.)

(4)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

§106.417.Ethylene Oxide Sterilizers [ (Previously SE 89) ].

Ethylene oxide (EO) sterilizing chambers/operations located on the same or contiguous property and under common ownership that use 1,000 pounds or less of EO per year are permitted by rule [ exempt ] provided that the following conditions of this section are satisfied.

(1)-(4)

(No change.)

§106.418.Printing Presses [ (Previously SE 13) ].

Printing operations (including, but not limited to, screen printers, ink-jet printers, presses using electron beam or ultraviolet light curing, and labeling operations) and supporting equipment (including, but not limited to, corona treaters, curing lamps, preparation, and cleaning equipment) which directly supports the printing operation are permitted by rule [ exempt ], provided that all the following conditions of this section are satisfied.

(1)

The uncontrolled emission of volatile organic compounds (VOC) and solvents (including, but not limited to, those used for printing, cleanup, or makeup) shall not exceed the following rates:

(A)

(No change.)

(B)

25 tpy for all printing operations on the property covered by permits by rule [ exemptions from permitting ].

(2)

Facilities which release ten tpy or more of VOC emissions from all [ exempted ] printing operations permitted by rule at the site must register with the commission using Form PI-7.

(3)-(7)

(No change.)

§106.419.Photographic Process Equipment [ (Previously SE 38) ].

Photographic process equipment by which an image is reproduced upon material sensitized to radiant energy is permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002138

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter S. SURFACE COATING

30 TAC §§106.431 - 106.436

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

These proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.431. Milling and Grinding of Coatings and Molding Compounds [ (Previously SE 16) ].

Equipment used exclusively to mill or grind coatings and molding compounds where all materials charged are in a paste form is permitted by rule [ exempt ].

§106.432.Dipping Tanks and Containers [ (Previously SE 50) ].

Containers, reservoirs, or tanks used exclusively for dipping operations for coating objects with oils, waxes, or greases where no organic solvents, diluents, or thinners are used; or dipping operations for applying coatings of natural or synthetic resins which contain no organic solvents are permitted by rule [ exempt ].

§106.433.Surface Coat Facility [ (Previously SE 75) ].

Surface coating or stripping facilities, excluding vehicle repair and refinishing shops, shall meet the following conditions of this section to be permitted by rule [ exempt ].

(1)-(9)

(No change.)

§106.434. Powder Coating Facility [ (Previously SE 104) ].

Surface coating operations utilizing powder coating materials with the powder applied by an electrostatic powder spray gun or an electrostatic fluidized bed are permitted by rule [ exempt ].

§106.435.Classic or Antique Automobile Restoration Facility [ (Previously SE 116) ].

"Classic" or "Antique" vehicle restoration facilities (the terms "classic" and "antique" vehicle as determined by the Texas Department of Public Safety Vehicle Inspection and Registration Section under Texas Transportation Code, Chapter 502, §502.274 (concerning Classic Motor Vehicles) or §502.275 (concerning Certain Antique Vehicles; Offense)) qualify for this permit by rule [ exemption from permitting ] if all of the following conditions of this section are met.

(1)-(6)

(No change.)

§106.436.Auto Body Refinishing Facility [ (Previously SE 124) ].

Body repair and refinishing of motorcycle, passenger car, van, light truck and heavy truck and other vehicle body parts, bodies, and cabs is permitted by rule [ exempt ], provided that all the following conditions of this section are met.

(1)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7-124.

(2)-(15)

(No change.)

(16)

The following records and reports shall be maintained at the shop site for a consecutive 24-month period and be made immediately available upon request of personnel from the commission or any other air pollution control agency with jurisdiction:

(A)-(D)

(No change.)

(E)

records of the United States Environmental Protection Agency and the commission's Office of Permitting, Remediation, and Registration [ Waste Management ] registration or identification numbers for each waste generator.

(17)

(No change.)

(18)

After December 31, 1994, the conditions of this permit by rule [ exemption ] are effective as to facilities in existence prior to the adoption of this section.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002139

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter T. SURFACE PREPARATION

30 TAC §§106.451 - 106.454

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.451.Wet Blast Cleaning [ (Previously SE 31) ].

Blast cleaning equipment using a suspension of abrasives in water is permitted by rule [ exempt ].

§106.452.Dry Abrasive Cleaning [ (Previously SE 102) ].

Any abrasive cleaning operation that will satisfy paragraph (1) or (2) of this section is permitted by rule [ exempt ]:

(1)

(No change.)

(2)

outside blast cleaning:

(A)-(C)

(No change.)

(D)

before construction begins, the facility is registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7; and

(E)

(No change.)

§106.453.Washing and Drying of Glass and Metal [ (Previously SE 42) ].

Equipment used for washing or drying products fabricated from metal or glass is permitted by rule [ exempt ], provided no volatile organic materials are used in the process and no oil or solid fuel is burned.

§106.454.Degreasing Units [ (Previously SE 107) ].

Any degreasing unit that satisfies the following conditions of this section is permitted by rule [ exempt ].

(1)

The following general requirements are applicable to all degreasers unless specifically noted [ exempted ] by the conditions of this section.

(A)

Units subject to paragraphs (3)-(5) of this section shall meet the following:

(i)

register with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7 and a Degreasing Unit Checklist;

(ii)

(No change.)

(B)-(F)

(No change.)

(2)-(5)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002140

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter U. TANKS, STORAGE, AND LOADING

30 TAC §§106.471 - 106.478

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.471.Storage or Holding of Dry Natural Gas [ (Previously SE 21) ].

Equipment used exclusively to store or hold dry natural gas is permitted by rule [ exempt ].

§106.472.Organic and Inorganic Liquid Loading and Unloading [ (Previously SE 51) ].

Liquid loading or unloading equipment for railcars, tank trucks, or drums; storage containers, reservoirs, tanks; and change of service of material loaded, unloaded, or stored is permitted by rule [ exempt ], provided that no visible emissions result and the chemicals loaded, unloaded, or stored are limited to:

(1)-(9)

(No change.)

§106.473.Organic Liquid Loading and Unloading [ (Previously SE 53) ].

Organic liquids loading or unloading equipment for railcars, tank trucks, or drums; and storage containers, tanks, or change of service of the material loaded, unloaded, or stored is permitted by rule [ exempt ], provided that all of the following conditions of this section are met.

(1)-(5)

(No change.)

(6)

Facilities used for the loading, unloading, or storage of any compound listed in 40 Code of Federal Regulations 261, Appendix VIII are not permitted by rule [ exempt ] under this section.

§106.474.Hydrochloric Acid Storage [ (Previously SE 78) ].

Hydrochloric acid storage tanks used exclusively for the storage of hydrochloric acid with an acid strength of 38% by weight or less are permitted by rule [ exempt ]. If an acid more concentrated than 20% by weight is stored, the tank vent must be controlled to reduce emissions by at least 99%.

§106.475.Pressurized Tanks or Tanks Vented to a Firebox [ (Previously SE 82) ].

Any vessel storing carbon compounds composed only of carbon, hydrogen, or oxygen is permitted by rule [ exempt ], provided that the vessel vent is directed to an incinerator, boiler, or other firebox having a stationary flue or a waste gas flare system that will operate with no visible emissions except as provided by Chapter 101 of this title (relating to General Air Quality Rules) for periods of maintenance or operational upset. However, vessels not exceeding 100 barrels capacity and storing only liquid petroleum gas may have the safety relief valve vent directly to the atmosphere. Also, any tank having a capacity not to exceed 1,000 gallons and storing only commercial odorants used to odorize petroleum gases may have the safety relief valve vent directly to the atmosphere.

§106.476.Pressurized Tanks or Tanks Vented to Control [ (Previously SE 83) ].

Any tank or other container storing carbon compounds is permitted by rule [ exempt ], provided that the tank or container pressure is sufficient at all times to prevent vapor or gas loss to the atmosphere or the tank or container is equipped with a relief valve which directs all vapors or gases to an incinerator, boiler, or other firebox having a stationary flue or a waste gas smokeless flare system. The vapors or gases and any necessary fuel gas shall be mixed thoroughly upstream of the heater burner(s) or the flare tip such that the mixed gases have a minimum net or lower heating value of 200 British thermal units per cubic foot. The flare also shall meet the other requirements of §106.492 of this title (relating to Flares (Previously SE 80)).

§106.477.Anhydrous Ammonia Storage [ (Previously SE 84) ].

Anhydrous ammonia storage tanks and distribution facilities that meet the following conditions are permitted by rule [ exempt ].

(1)-(5)

(No change.)

(6)

Before construction begins, written site approval must be received from the regional director and the owner or operator shall file with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin a completed Form PI-7 and supporting documentation demonstrating that all of the requirements of this section will be met.

(7)

(No change.)

§106.478.Storage Tank and Change of Service [ (Previously SE 86) ].

Any fixed or floating roof storage tank, or change of service in any tank, used to store chemicals or mixtures of chemicals shown in Table 478 in paragraph (8) of this section is permitted by rule [ exempt ], provided that all of the following conditions of this section are met:

(1)-(6)

(No change.)

(7)

Before construction begins, storage tanks of 25,000 gallons or greater capacity and located in a designated nonattainment area for ozone shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7. The registration shall include a list of all tanks, calculated emissions for each carbon compound in tons per year for each tank, and a Table 7 of Form PI-2 for each different tank design.

(8)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002141

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter V. THERMAL CONTROL DEVICES

30 TAC §§106.491 - 106.496

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.491.Dual Chamber Incinerators [ (Previously SE 2) ].

Dual-chambered incinerators which burn only waste generated on-site and which meet the conditions of this section are permitted by rule [ exempt ]. Incinerators used in the processing or recovery of materials or to dispose of pathological waste as defined in §106.494 of this title (relating to Pathological Waste Incinerators (Previously SE 90)), hospital waste, and/or infectious waste are not authorized by this section.

(1)

(No change.)

(2)

The incinerator shall meet the following operational conditions.

(A)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

(B)-(E)

(No change.)

§106.492.Flares [ (Previously SE 80) ].

Smokeless gas flares which meet the following conditions of this section are permitted by rule [ exempt ]:

(1)

(No change.)

(2)

operational conditions.

(A)

(No change.)

(B)

A flare which burns gases containing more than 24 ppmv of sulfur, chlorine, or compounds containing either element shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7 prior to construction of a new flare or prior to the use of an existing flare for the new service.

(C)

(No change.)

§106.493.Direct Flame Incinerators [ (Previously SE 88) ].

Direct flame incinerators installed for the purpose of reducing or eliminating non-halogenated volatile organic compound vapors and/or aerosols (but not liquids or solids) are permitted by rule [ exempt ], provided the following conditions of this section are satisfied.

(1)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

(2)-(9)

(No change.)

§106.494.Pathological Waste Incinerators [ (Previously SE 90) ].

(a)

(No change.)

(b)

Conditions of permit by rule [ exemption ]. Crematories and non-commercial incinerators used to dispose of pathological waste and carcasses which meet the following conditions of this section are permitted by rule [ exempt ]. Incinerators used in the recovery of materials are not covered by this section.

(1)-(2)

(No change.)

§106.495.Heat Cleaning Devices [ (Previously SE 87) ].

Heat cleaning devices (such as ovens, furnaces, and/or direct flame incinerators) used to thermally remove residual combustible or semi-combustible materials from noncombustible electrical or mechanical parts are permitted by rule [ exempt ], provided the following conditions of this section are satisfied.

(1)

Before construction begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

(2)-(8)

(No change.)

§106.496.Trench Burners [ (Previously SE 97) ].

Any trench burner that operates according to the following conditions of this section is permitted by rule [ exempt ].

(1)-(17)

(No change.)

(18)

Before operation of the facility begins at any site, written site approval shall be received from the executive director and any local air pollution control program having jurisdiction in the area and the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002142

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter W. TURBINES AND ENGINES

30 TAC §106.511, §106.512

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.511.Portable and Emergency Engines and Turbines [ (Previously SE 5) ].

Internal combustion engine and gas turbine driven compressors, electric generator sets, and water pumps, used only for portable, emergency, and/or standby services are permitted by rule [ exempt ], provided that the maximum annual operating hours shall not exceed 10% of the normal annual operating schedule of the primary equipment; and all electric motors. For purposes of this section, "standby" means to be used as a "substitute for" and not "in addition to" other equipment.

§106.512.Stationary Engines and Turbines [ (Previously SE 6) ].

Gas or liquid fuel-fired stationary internal combustion reciprocating engines or gas turbines that operate in compliance with the following conditions of this section are permitted by rule [ exempt ].

(1)

The facility shall be registered by submitting the commission's Form PI-7, Table 29 for each proposed reciprocating engine, and Table 31 for each proposed gas turbine to the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin within ten days after construction begins. Engines and turbines rated less than 240 horsepower (hp) need not be registered, but must meet paragraphs (5) and (6) of this section, relating to fuel and protection of air quality. Engine hp rating shall be based on the engine manufacturer's maximum continuous load rating at the lesser of the engine or driven equipment's maximum published continuous speed. A rich-burn engine is a gas-fired spark-ignited engine that is operated with an exhaust oxygen content less than 4.0% by volume. A lean-burn engine is a gas-fired spark-ignited engine that is operated with an exhaust oxygen content of 4.0% by volume, or greater.

(2)-(6)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002143

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Subchapter X. WASTE PROCESSES AND REMEDIATION

30 TAC §§106.531 - 106.534

STATUTORY AUTHORITY

The amendments are proposed under TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.051, which authorizes the commission to issue permits for construction of facilities which emit air contaminants; and §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.057, concerning Exemption; §382.051, concerning Permitting Authority of the Commission; and §382.05196, concerning Permits by Rule.

§106.531.Sewage Treatment Facility [ (Previously SE 60) ].

Sewage treatment facilities, excluding combustion or incineration equipment, land farms, or grease trap waste handling or treatment facilities are permitted by rule [ exempt ].

§106.532.Water and Wastewater Treatment [ (Previously SE 61) ].

Water and wastewater treatment units are permitted by rule [ exempt ], provided the following conditions of this section are met.

(1)-(2)

(No change.)

(3)

The following shall not be permitted by rule under [ exempted by ] this section:

(A)-(D)

(No change.)

§106.533.Water and Soil Remediation [ (Previously SE 68) ].

Equipment used to reclaim or destroy chemicals removed from contaminated ground water, contaminated water condensate in tank and pipeline systems, or contaminated soil for the purpose of remedial action is permitted by rule [ exempt ], provided all the following conditions of this section are satisfied.

(1)-(5)

(No change.)

(6)

Before construction of the facility begins, the facility shall be registered with the commission's Office of Permitting, Remediation, and Registration [ Air Quality ] in Austin using Form PI-7. The registration shall contain specific information concerning the basis (measured or calculated) for the expected emissions from the facility. The registration shall also explain details as to why the emission control system can be expected to perform as represented.

(7)

(No change.)

§106.534.Municipal Solid Waste Landfills and Transfer Stations [ (Previously SE 110) ].

Municipal solid waste landfills and waste transfer stations operating in compliance with the Texas Solid Waste Disposal Act are permitted by rule [ exempt ].

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002144

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239 -1966


Chapter 115. CONTROL OF AIR POLLUTION FROM VOLATILE ORGANIC COMPOUNDS

Subchapter E. SOLVENT-USING PROCESSES

2. SURFACE COATING PROCESSES

30 TAC §§115.420-115.427, 115.429

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §115.420, Surface Coating Definitions; §115.421, Emission Specifications; §115.422, Control Requirements; §115.423, Alternate Control Requirements; §115.424, Inspection Requirements; §115.425, Testing Requirements; §115.426, Monitoring and Recordkeeping Requirements; §115.427, Exemptions; and §115.429, Counties and Compliance Schedules. The commission proposes these revisions to Chapter 115, Control of Air Pollution from Volatile Organic Compounds, and to the state implementation plan (SIP) to incorporate the requirement of Aerospace Manufacturing and Rework Operations Control Techniques Guideline (CTG) guidance document into the chapter. This incorporation will provide consistent control requirements to aerospace companies and prevent the necessity to review individual control plans every two years. In an effort to improve implementation of the existing Chapter 115 surface coating rules which apply in the Beaumont/Port Arthur (BPA), Dallas/Fort Worth (DFW), El Paso (EP), and Houston/Galveston (HGA) ozone nonattainment areas and in Gregg, Nueces, and Victoria Counties, the commission proposes amendments to §§115.420-115.427 and 115.429 which delete unnecessary requirements and clarify a variety of requirements and rule references; and associated revisions to the SIP. At the request of these affected companies, the commission also proposes that the alternate reasonably available control technology (ARACT) determinations issued under the existing §115.423(a)(4) to Lockheed-Martin, Raytheon Company and Bell Helicopter Textron be withdrawn from the SIP. The companies will then be required to comply directly with the new Chapter 115 aerospace requirements.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

AEROSPACE COATINGS

Under the 1990 Amendments to the Federal Clean Air Act (FCAA), §183, the United States Environmental Protection Agency (EPA) is required to issue various CTG guidance documents for the purpose of assisting states in developing reasonably achievable control technology (RACT) controls for sources of volatile organic compound (VOC) emissions. The EPA was required under FCAA, §183(b)(3), to issue an aerospace CTG by November 15, 1993. The EPA published the final aerospace CTG in the March 27, 1998 issue of the Federal Register (63 FR 15005). The aerospace CTG was developed concurrently with the maximum achievable control technology (MACT) air toxics standards which the EPA promulgated on September 1, 1995 for Aerospace Manufacturing and Rework Facilities (60 FR 45948).

Each state is required to submit a revision to its SIP which implements RACT regulations for VOC sources in moderate or above ozone nonattainment areas. Specifically, FCAA, §182(b)(2)(A), requires states to submit RACT regulations for VOC sources that are covered by a CTG issued after November 15, 1990 (the enactment date of the 1990 FCAA), but prior to the time of attainment. Limits in state rules must be at least as stringent as the CTG limits or otherwise must be determined to meet RACT.

Each CTG contains a "presumptive norm" for RACT for a specific source category, based on the EPA's evaluation of the capabilities and problems general to that category. Where applicable, the EPA recommends that states adopt requirements consistent with the presumptive norm. However, the presumptive norm is only a recommendation. States may choose to develop their own RACT requirements on a case-by-case basis, considering the emission reductions needed to obtain achievement of the national ambient air quality standards and the economic and technical circumstances of the individual source.

ARCHITECTURAL COATINGS

Chapter 115 currently include rules which regulate nine categories of architectural coatings in the BPA, DFW, EP, and HGA ozone nonattainment areas. These rules were initially adopted on December 18, 1987 for Dallas and Tarrant Counties. The rules were amended on May 8, 1992 to include the remaining 14 counties in the four ozone nonattainment areas.

The FCAA, §183(e), established a new regulatory program for controlling VOC emissions from consumer and commercial products. Section 183(e) requires the EPA to list, and schedule for regulation, categories of consumer and commercial products after completion of a study and report to Congress concerning the products and their potential to contribute to levels of ozone which violate the ozone National Ambient Air Quality Standards. In 1992, the EPA initiated a regulatory negotiation ("reg-neg") to address architectural & industrial maintenance (AIM) coatings as an alternative to the traditional approach to rulemaking. The AIM coatings reg-neg committee members represented the affected industries, consumers, federal agencies, state and local air pollution control agencies, environmental groups, and labor organizations. Reg-neg meetings were held from October 1992 to February 1994, but the committee was unable to reach consensus. On September 23, 1994, the reg-neg concluded without consensus, and the EPA initiated development of the AIM coatings rule using the information it had gathered during the reg-neg process.

In the September 11, 1998 issue of the Federal Register (63 FR 48848), EPA adopted a national AIM coatings rule with a final compliance date of September 11, 1999. The EPA's AIM coatings rule addresses 55 coating categories and is expected to achieve a 20% VOC emission reduction. The commission's "15% Rate-of-Progress" SIP for the nonattainment areas relies on this projected 20% emission reduction. Because the national AIM coatings rules are much more comprehensive than the Chapter 115 architectural coatings rules, the commission is proposing to delete these Chapter 115 rules.

SECTION BY SECTION DISCUSSION

The rule amendments propose to incorporate the requirements for Aerospace Manufacturing and Rework Operations which the EPA outlined in the CTG for this industry. This includes emissions limitations for VOC used for coating and clean up. The commission is also proposing amendments which reorganize and clarify the surface coating rules. These clarifying/reorganizing revisions include, where possible, consolidation or elimination of redundant language or requirements, the use of the active (rather than passive) voice, incorporation of a variety of interpretations made by the agency's Air Rule Interpretation Team (RIT) and relocation of rule language to more logical locations. In general, the commission's goal is to make the rules easier to read and more explicit concerning which requirements apply.

The proposed amendments to §115.420, Surface Coating Definitions, add new definitions for aerosol coating (spray paint), daily weighted average, and spray gun which are intended to clarify the existing Chapter 115 surface coating requirements. The definition of daily weighted average incorporates the concepts of Air RIT's Rule Interpretation Code Number R5-421.006, concerning daily weighted average in order to address questions raised to the commission's staff. The commission proposes that the daily weighted average is VOC content for all coatings subject to the same content standard applied in a single day instead of the average for one coating only. The commission believes that this procedure would most accurately reflect daily VOC emissions from a coating operation.

The proposed amendments to §115.420 also revise the definitions of miscellaneous metal parts and products coating and vehicle refinishing (body shops). The proposed amendment to the definition of "miscellaneous metal parts and products coating" incorporates the Air RIT's Rule Interpretation Code Number R5-421.005, concerning the applicability of the miscellaneous metal parts and products (MMPP) surface coating rules. In order to address questions from regulated operators, and to clearly state to what operations the MMPP surface coating rules would apply, the commission proposes that the rules would apply to: 1) original equipment manufacturing operations; 2) designed on- site maintenance shops which recoat used parts and products; and 3) off-site job shops which coat new parts and products or which recoat used parts and products. The proposed amendments to the definition of vehicle refinishing (body shops) replace the phrase "repair and recoating" with "coating" because in some cases the vehicle is not repaired but is simply painted (e.g., a vehicle with no body damage which is being painted the same or a different color) and delete the word "commercial" from the phrase "commercial operation" because an exemption for in-house (fleet) vehicle refinishing operations was added as §115.427(a)(6) on April 30, 1997. (See the May 13, 1997 issue of the Texas Register (22 TexReg 2213)). The definition of vehicle refinishing (body shops) is also being relocated because it was inadvertently not in alphabetical order.

In addition, the proposed amendments to §115.420 delete the definitions of architectural coating and non-flat architectural coating. These definitions will no longer be needed after the deletion of the Chapter 115 architectural coating rules.

Finally, the proposed amendments to §115.420 add 84 new definitions for aerospace coating, including: ablative coating, adhesion promoter, adhesive bonding primer, aerospace vehicle or component, aircraft fluid systems, aircraft transparency, antichafe coating, antique aerospace vehicle or component, aqueous cleaning solvent, bearing coating, bonding maskant, caulking and smoothing compounds, chemical agent-resistant coating (CARC), chemical milling maskant, cleaning operation, cleaning solvent, clear coating, closed-cycle depainting system, coating operation, coating unit, commercial exterior aerodynamic structure primer, commercial interior adhesive, compatible substrate primer, confined space, corrosion prevention coating, critical use and line sealer maskant, cryogenic flexible primer, cryoprotective coating, cyanoacrylate adhesive, dry lubricative material, electric or radiation-effect coating, electrostatic discharge and electromagnetic interference (EMI) coating, elevated-temperature Skydrol-resistant commercial primer, epoxy polyamide topcoat, fire-resistant (interior) coating, flexible primer, flight test coating, flush cleaning, fuel tank adhesive, fuel tank coating, grams of VOC per liter of coating (less water and less exempt solvent), hand-wipe cleaning operation, high temperature coating, insulation covering, intermediate release coating, lacquer, limited access space, metalized epoxy coating, mold release, monthly weighted average, nonstructural adhesive, operating parameter value, optical antireflection coating, part marking coating, pretreatment coating, primer, radome, rain erosion-resistant coating, research and development, rocket motor bonding adhesive, rocket motor nozzle coating, rubber-based adhesive, scale inhibitor, screen print ink, sealant, seal coat maskant, self-priming topcoat, semiaqueous cleaning solvent, silicone insulation material, solid film lubricant, space vehicle, specialty coating, specialized function coating, structural autoclavable adhesive, structural nonautoclavable adhesive, surface preparation, temporary protective coating, thermal control coating, topcoat, touch-up and repair coating, touch-up and repair operation, VOC composite vapor pressure, waterborne (water-reducible) coating, wet fastener installation coating, and wing coating. The proposed amendments to §115.420 renumber the existing surface coating definitions as necessary to accomodate inclusion of the new definitions and deletion of the existing architectural coating definitions. Finally, the definition of high-volume/low-pressure (HVLP) spray guns would be modified to clarify that the operating pressure of this equipment is to be measured at the air cap.

The proposed amendments to §115.421, Emission Specifications, add emission limitations in the form of a table for aerospace coatings. These limits are for all coating materials that contain VOCs and for any VOC-containing materials added to the original coating supplied by the manufacturer.

The proposed amendments to §115.421 also delete the emissions limitations for architectural coatings as described earlier in this preamble. In addition, the proposed amendments to the lead-in paragraphs of §115.421(a) and (b) delete language concerning the calculation of daily weighted average which is being addressed through the addition of a definition of daily weighted average to §115.420(a). The commission is also proposing the addition of an option to use a monthly weighted average for application to operations not conducted on a daily basis. A definition of monthly weighted average is included in §115.420.

In separate rulemaking published in the July 16, 1999 issue of the Texas Register (24 TexReg 5490) the commission added a definition of vapor control system to §115.10 which is identical to the existing definition of vapor recovery system. This will facilitate a transition in the Chapter 115 rules to this term from the misleading term "vapor recovery system," which is defined to include both recovery and combustion control devices. Consequently, the proposed amendments to §115.421 change a reference from "vapor recovery system" to "vapor control system" for clarification.

Finally, the proposed amendments to §115.421 update rule references that have changed because of the additions, deletions and reordering in the chapter, and delete references to compliance dates which have passed.

The proposed amendments to §115.422, Control Requirements, add control requirements for aerospace vehicle or component coating processes subject to §115.421(a)(11) or (b)(10), as well as related clean-up operations. In addition, the proposed amendments to §115.422 revise the "once- in, always-in" (OIAI) rule (currently found in §115.422(5)) update the term "standard exemption" to "exemption from permitting to reflect pending changes in terms in Chapter 106 of this title." OIAI is an EPA concept which means that once emissions from a source exceed the applicability cutoff for a particular VOC regulation in the SIP, that source is always subject to the control requirements of the regulation.

The proposed amendments to §115.423, Alternate Control Requirements, incorporate Gregg, Nueces, and Victoria Counties into subsection (a) and delete all of subsection (b) which currently contains the alternate control requirements for these three counties. The proposed amendments also specify that the existing capture efficiency testing requirements apply only in the BPA, DFW, EP, and HGA areas, update rule references, and change a reference from "vapor recovery system" to "vapor control system" for clarification.

The proposed amendments to §115.423 change the review schedule for ARACT determinations under the existing §115.421(a)(4) and (b)(4) from every two years to every five years. Because of the time required to process and review an ARACT, the current two-year review schedule means that at any given time, companies with ARACTs are either preparing ARACT review applications or are in the actual review process. The proposed amendments also modify a cross reference in the equation in §115.423(1).

The proposed amendments to §115.424, Inspection Requirements, incorporate Gregg, Nueces, and Victoria Counties into subsection (a) and delete all of subsection (b) which currently contains the inspection requirements for these three counties.

The proposed amendments to §115.425, concerning Testing Requirements, incorporate Gregg, Nueces, and Victoria Counties into subsection (a) and delete all of subsection (b) which currently contains the testing requirements for these three counties. The proposed amendments to §115.425 also clarify that if a test method inadvertently measures compounds that are exempt solvent (i.e., non- VOC), these exempt solvents may be excluded when determining compliance with an emission standard.

The proposed amendments to §115.425 also specify that the existing capture efficiency testing requirements apply only in the BPA, DFW, EP, and HGA areas; update rule references; and change references from "TACB," "vapor recovery system," and "carbon adsorber" to "executive director," "vapor control system," and "carbon adsorption system," respectively, for clarification. In addition, the proposed amendments to the exemption from capture efficiency testing found in the existing §115.425(a)(4)(A)(ii) to clarify that "daily" refers to each 24-hour period of the 30-day period. Also, a new paragraph (5) is proposed for §115.425 that includes testing requirements for aerospace vehicle or component coating facilities subject to §115.421(a)(11) or (b)(10).

Finally, the proposed amendments to §115.425 also add a new paragraph (6), which authorizes the use of test methods other than those specifically listed in §115.425, provided that any new test method is validated using the procedures in 40 Code of Federal Regulations (CFR) 63, Appendix A, Test Method 301, with the executive director acting as the administrator. This revision is necessary because in some specific unique situations the listed test methods may be inappropriate. The new paragraph (6) increases flexibility by allowing the use of additional test methods which may be more cost-effective and more appropriate in certain unique situations.

The proposed amendments to §115.426, Monitoring and Recordkeeping Requirements, incorporate Gregg, Nueces, and Victoria Counties into subsection (a) and delete all of subsection (b) which currently contains the monitoring and recordkeeping requirements for these three counties. Additionally, the proposed amendments update rule references; change references from "TACB" and "vapor recovery system" to "executive director" and "vapor control system," respectively, for clarification; add a requirement for monitoring and recording of appropriate operating parameters for types of vapor control systems not specifically listed in §115.426(3); and propose deletion of the existing §115.426(a)(2)(A)(iv), which concerns records associated with control device maintenance activities, because maintenance activities are already addressed in §101.7, Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements. In addition, the proposed new paragraph (5) specifies the recordkeeping requirements for aerospace manufacturing and rework operations. Also, the proposed new paragraph (6) specifies that with the exception of specialty coatings, compliance with the recordkeeping requirements of 40 CFR §63.752 (National Emission Standards for Aerospace Manufacturing and Rework Facilities) is considered to represent compliance with the requirements of §115.426. Finally, the proposed amendments to §115.426 add alternative recordkeeping requirements for surface coating operations that qualify for the proposed new exemption in §115.427 for surface coating operations on a property in the BPA, DFW, EP, and HGA areas for which total coating and solvent use does not exceed 150 gallons in any consecutive 12-month period.

The proposed amendments to §115.427, Exemptions, exempt all aerospace vehicles and components from the MMPP requirements after the December 31, 2001 compliance date for the proposed new aerospace requirements; revise the exemption for aerosol coatings (spray paint) for consistency with the proposed new definition of this term in §115.420(a). The proposed amendments also delete the exemptions for architectural coatings due to the proposed deletion of the architectural coating requirements in the existing §115.421(a)(11), and change a reference from "facility" to "property" for clarification.

The proposed amendments to §115.427 also add an exemption from §115.421(a) and §115.423 for surface coating operations on a property in the BPA, DFW, EP, and HGA areas for which total coating and solvent use does not exceed 150 gallons in any consecutive 12-month period. This exemption is being proposed to ease the recordkeeping burden on very small surface coating operations. The proposed exemption level would represent a maximum VOC emission rate of at most 1200 pounds per year (lb/yr), or 0.6 tons per year (tpy), assuming a worst-case scenario of eight pounds of VOC per gallon. By comparison, the existing 15 pounds per day (lb/day) and three pounds per hour (lb/hr) exemption of §115.427(a)(3)(A) could allow up to 5475 lbs/yr, or 2.7 tpy, of VOC emissions.

On page 1-1 of the EPA document Issues Relating to VOC Regulation Cutpoints, Deficiencies, And Deviations -- Clarification to Appendix D of November 24, 1987 Federal Register (May 25, 1988), the EPA states:

"Where EPA has previously specified 3 lb VOC/hr or 15 lb VOC/day cutoff, State may use it on actual emissions basis or use 10 tpy theoretical potential emissions (design capacity [ or maximum production ] and 8760 hr/yr) before add-on control. Care should be taken to make enforceable any regulations specified on an 'actual' emissions basis."

The commission believes that the proposed exemption is at least as stringent as the ten tpy theoretical maximum emissions cutoff specified in the federal guidance. Specifically, the ten tpy cutoff represents an average VOC emission rate of 55 lb/day. An owner or operator could apply coatings for ten hours at five lb/hr and still be below this cutoff. With a VOC emission limit of at most 1200 lb/yr, the owner or operator would be unable to apply coatings for ten hours at five lb/hr very often; at most, 24 days per year at the 50 lb/day maximum.

The proposed amendments to §115.429, Counties and Compliance Schedules, specify a December 31, 2001 compliance date for the new aerospace vehicle and component coating requirements and delete unnecessary language. The proposed amendments to §115.429 also specify that aerospace vehicle and component coating processes which are subject to the new aerospace coating requirements must continue to comply with the existing miscellaneous metal parts and products coating requirements until these processes are in compliance with the new aerospace requirements.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMITS PROGRAM

Since 30 TAC Chapter 115 is an applicable requirement under 30 TAC Chapter 122, owners or operators subject to the Federal Operating Permit Program must, consistent with the revision process in Chapter 122, revise their operating permits to include the revised Chapter 115 requirements for each emission unit affected by the revisions to Chapter 115 at their sites.

FISCAL NOTE

Jeff Grymkoski, Director, Strategic Planning and Appropriations, has determined that for the first five years the proposed rules are in effect, there will be no significant fiscal implications for units of state or local government as a result of the administration and enforcement of the proposed rules. The proposed rules apply to businesses that manufacture, rework and repair aerospace vehicles and their components in the following nonattainment areas: BPA, DFW, EP, HGA, Gregg, Nueces, and Victoria Counties.

The commission proposes amendments to Chapter 115 and the SIP to conform to the Aerospace Manufacturing and Rework Operations CTG promulgated by EPA in December 1997.

These rules are intended to provide consistent control methods and VOC content standards for users of aerospace coatings and to eliminate the requirement that these facilities update their individually tailored ARACT methods every two years. It is anticipated that adopting this CTG will provide a consistent method of VOC control that may be less costly for certain facilities to comply with state and federal air quality standards.

The proposed amendments also delete the architectural coating requirements contained in Chapter 115 because of recent promulgation of a more comprehensive federal requirement.

PUBLIC BENEFIT

Mr. Grymkoski has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated from the enforcement of and compliance with these sections will be application of a consistent method of VOC control for facilities that manufacture, rework and repair aerospace vehicles and their components in the following nonattainment areas: BPA, DFW, EP, HGA, Gregg, Nueces, and Victoria Counties.

The EPA estimates that approximately 230 facilities are currently engaged in aerospace coating and solvent cleaning operations at aerospace manufacturing and rework facilities in Texas. Most of these facilities are located in the state's nonattainment areas.

Currently, these facilities must now conform with individually tailored plans for the control of VOC from aerospace coating operations which must be renewed every two years. Adoption of the proposed rules would produce some savings to certain facilities by eliminating the renewal process for those facilities which already conform to Aerospace Manufacturing and Rework Facilities CTGs.

The adoption of these rules will require the use of HVLP spray guns for controling VOC at aerospace manufacturing and rework facilities. The commission believes that many facilities already use this equipment. Facilities not using this type of spray guns will be required to purchase them at a cost of approximately $450 each. The commission has been unable to determined the total number of spray guns to be purchased at each facility. However, due to relative low cost of individual spray units, the cost of complying with this requirement is not anticipated to be significant.

The proposed amendments also delete the architectural coating requirements contained in Chapter 115 because of recent promulgation of a more comprehensive federal requirement.

SMALL AND MICRO-BUSINESS IMPACT ANALYSES

The proposed rules are not anticipated to impose a significant adverse affect on any small businesses and micro-businesses. In addition, no mitigation of the cost to small business is required under Texas Government Code, §2006.002(a) because the requirements of this proposal are specified under federal law.

The proposed rules require the use of HVLP spray guns. Small and micro-businesses engaged in aerospace manufacturing and rework operations which do not currently use them in their operations will be required to purchase them at a cost of $450 per spray gun. Although the number spray guns will vary from facility to facility, the total number of spray guns purchased by any one facility should not impose a significant adverse affect on that facility.

Deletion of the architectural coating requirement should have no affect on small businesses as they are currently required to comply with the more comprehensive federal standards.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed CTG does not add more stringent standards than those currently existing under the aerospace MACT.

Section 2001.0225(a) only applies to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program, or; 4) adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of §2001.0225(a). This rulemaking is not proposed under the general powers of the agency under Chapter 5 of the Texas Water Code. Instead, the rules are specifically proposed under the Texas Clean Air Act (TCAA), §382.011, General Powers and Duties, which provides the commission with the authority to establish the level of quality to be maintained in the state's air and the authority to control the quality of the state's air; §382.017, Rules, which provides the commission with the authority to adopt rules consistent with the policy and purposes of the TCAA; and §382.012, State Air Control Plan, which requires the commission to develop plans for protection of the state's air. Specifically, the proposed amendments do not exceed a standard set by state or federal law, but comply with federal law requiring adoption, for moderate or above ozone nonattainment areas, of RACT standards covered by a CTG issued after November 15, 1990. The proposed amendments do not exceed a requirement of a delegation agreement. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of this rulemaking is to add aerospace coating rules which are based upon a CTG guidance document issued by the EPA, as required by the FCAA, §182(b)(2)(A). Promulgation and enforcement of the rule amendments will not affect private real property which is the subject of the rules because this action does not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has 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'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 action for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council. For this rulemaking, the commission has determined that the rules are consistent with the applicable CMP goal expressed in 31 TAC §501.12(1), of protecting and preserving the quality and values of coastal natural resource areas and the policy in 31 TAC §501.14(q), which requires that the commission protect air quality in coastal areas. No new sources of air contaminants will be authorized by the rule revisions concerning aerospace control technique guidelines or by the deletion of the current architectural coating requirements. Therefore, in compliance with 31 TAC §505.22(e), the commission affirms that the rulemaking is consistent with CMP goals and policies. Interested persons may submit comments on the consistency of the proposed rules with the CMP during the public comment period.

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on May 2, 2000, at 2:00 p.m. in Building F, Room 2210 at the Texas Natural Resource Conservation Commission complex, located at 12100 Park 35 Circle. Individuals may present oral statements when called upon in order of registration. Open discussion will not occur during the hearing; however, agency staff members will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

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

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-023-115-AI. Comments must be received by 5:00 p.m., May 8, 2000. For further information, please contact Beecher Cameron, Policy and Regulations Division, at (512) 239-1495.

STATUTORY AUTHORITY

The amendments are proposed under the Texas Health and Safety Code, TCAA, §382.011, General Powers and Duties, which provides the commission with the authority to establish the level of quality to be maintained in the state's air and the authority to control the quality of the state's air; §382.017, Rules, which provides the commission with the authority to adopt rules consistent with the policy and purposes of the TCAA; and §382.012, State Air Control Plan, which requires the commission to develop plans for protection of the state's air.

The proposed amendments implement the Texas Health and Safety Code, TCAA, §382.011, General Powers and Duties; §382.012, State Air Control Plan; and §382.017, Rules.

§115.420.Surface Coating Definitions.

(a)

General surface coating definitions. The following terms, when used in this division (relating to Surface Coating Processes), shall have the following meanings, unless the context clearly indicates otherwise. Additional definitions for terms used in this division are found in §115.10 of this title (relating to Definitions), §101.1 of this title (relating to Definitions), and §3.2 of this title (relating to Definitions).

(1)

Aerosol coating (spray paint)--A hand-held, pressurized, nonrefillable container that expels an adhesive or a coating in a finely divided spray when a valve on the container is depressed.

(2)

[ (1) ] Coating--A material applied onto or impregnated into a substrate for protective, decorative, or functional purposes. Such materials include, but are not limited to, paints, varnishes, sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings.

(3)

[ (2) ] Coating application system--Devices or equipment designed for the purpose of applying a coating material to a surface. The devices may include, but are not be limited to, brushes, sprayers, flow coaters, dip tanks, rollers, knife coaters, and extrusion coaters.

(4)

[ (3) ] Coating line--An operation consisting of a series of one or more coating application systems and including associated flashoff area(s), drying area(s), and oven(s) wherein a surface coating is applied, dried, or cured.

(5)

[ (4) ] Coating solids (or solids)--The part of a coating that remains after the coating is dried or cured.

(6)

Daily weighted average--The total weight of volatile organic compound (VOC) emissions from all coatings subject to the same emission standard in §115.421 of this title (relating to Emission Specifications), divided by the total volume of those coatings (minus water and exempt solvent) delivered to the application system each day. Coatings subject to different emission standards in §115.421 of this title shall not be combined for purposes of calculating the daily weighted average. In addition, determination of compliance is based on each individual coating line.

(7)

[ (5) ] High-volume low-pressure [ (HVLP) ] spray guns--Equipment used to apply coatings by means of a spray gun which operates between 0.1 and 10.0 pounds per square inch gauge air pressure at the air cap .

(8)

[ (6) ] Normally closed container--A container that is closed unless an operator is actively engaged in activities such as adding or removing material.

(9)

[ (7) ] Pounds of VOC [ volatile organic compounds (VOC) ] per gallon of coating (minus water and exempt solvents)--Basis for emission limits for surface coating processes. Can be calculated by the following equation:

Figure: 30 TAC §115.420(a) (9) [ (7) ]

(10)

[ (8) ] Pounds of VOC per gallon of solids--Basis for emission limits for surface coating process. Can be calculated by the following equation:

Figure: 30 TAC §115.420(a) (10) [ (8) ]

(11)

Spray gun--A device that atomizes a coating or other material and projects the particulates or other material onto a substrate.

(12)

[ (9) ] Surface coating processes--Operations which utilize a coating application system.

(13)

[ (10) ] Transfer efficiency--The amount of coating solids deposited onto the surface of a part or product divided by the total amount of coating solids delivered to the coating application system.

(b)

Specific surface coating definitions. The following terms, when used in this division (relating to Surface Coating Processes), shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Aerospace coating.

(A)

Ablative coating--A coating that chars when exposed to open flame or extreme temperatures, as would occur during the failure of an engine casing or during aerodynamic heating. The ablative char surface serves as an insulative barrier, protecting adjacent components from the heat or open flame.

(B)

Adhesion promoter--A very thin coating applied to a substrate to promote wetting and form a chemical bond with the subsequently applied material.

(C)

Adhesive bonding primer--A primer applied in a thin film to aerospace components for the purpose of corrosion inhibition and increased adhesive bond strength by attachment. There are two categories of adhesive bonding primers: primers with a design cure at 250 degrees Fahrenheit or below and primers with a design cure above 250 degrees Fahrenheit.

(D)

Aerospace vehicle or component--Any fabricated part, processed part, assembly of parts, or completed unit, with the exception of electronic components, of any aircraft including but not limited to airplanes, helicopters, missiles, rockets, and space vehicles.

(E)

Aircraft fluid systems--Those systems that handle hydraulic fluids, fuel, cooling fluids, or oils.

(F)

Aircraft transparency--The aircraft windshield, canopy, passenger windows, lenses, and other components which are constructed of transparent materials.

(G)

Antichafe coating--A coating applied to areas of moving aerospace components that may rub during normal operations or installation.

(H)

Antique aerospace vehicle or component--An aerospace vehicle or component thereof that was built at least 30 years ago. An antique aerospace vehicle would not routinely be in commercial or military service in the capacity for which it was designed.

(I)

Aqueous cleaning solvent--A solvent in which water is at least 80% by volume of the solvent as applied.

(J)

Bearing coating--A coating applied to an antifriction bearing, a bearing housing, or the area adjacent to such a bearing in order to facilitate bearing function or to protect base material from excessive wear. A material shall not be classified as a bearing coating if it can also be classified as a dry lubricative material or a solid film lubricant.

(K)

Bonding maskant--A temporary coating used to protect selected areas of aerospace parts from strong acid or alkaline solutions during processing for bonding.

(L)

Caulking and smoothing compounds--Semi-solid materials which are applied by hand application methods and are used to aerodynamically smooth exterior vehicle surfaces or fill cavities such as bolt hole accesses. A material shall not be classified as a caulking and smoothing compound if it can also be classified as a sealant.

(M)

Chemical agent-resistant coating--An exterior topcoat designed to withstand exposure to chemical warfare agents or the decontaminants used on these agents.

(N)

Chemical milling maskant--A coating that is applied directly to aluminum components to protect surface areas when chemically milling the component with a Type I or II etchant. Type I chemical milling maskants are used with a Type I etchant and Type II chemical milling maskants are used with a Type II etchant. This definition does not include bonding maskants, critical use and line sealer maskants, and seal coat maskants. Additionally, maskants that must be used with a combination of Type I or II etchants and any of the above types of maskants (i.e., bonding, critical use and line sealer, and seal coat) are not included. Maskants that are defined as specialty coatings are not included under this definition.

(O)

Cleaning operation--Spray-gun, hand-wipe, and flush cleaning operations.

(P)

Cleaning solvent--A liquid material used for hand-wipe, spray gun, or flush cleaning. This definition does not include solutions that contain no VOC.

(Q)

Clear coating--A transparent coating usually applied over a colored opaque coating, metallic substrate, or placard to give improved gloss and protection to the color coat.

(R)

Closed-cycle depainting system--A dust free, automated process that removes permanent coating in small sections at a time, and maintains a continuous vacuum around the area(s) being depainted to capture emissions.

(S)

Coating operation--Using a spray booth, tank, or other enclosure or any area (such as a hangar) for applying a single type of coating (e.g., primer); using the same spray booth for applying another type of coating (e.g., topcoat) constitutes a separate coating operation for which compliance determinations are performed separately.

(T)

Coating unit--A series of one or more coating applicators and any associated drying area and/or oven wherein a coating is applied, dried, and/or cured. A coating unit ends at the point where the coating is dried or cured, or prior to any subsequent application of a different coating.

(U)

Commercial exterior aerodynamic structure primer--A primer used on aerodynamic components and structures that protrude from the fuselage, such as wings and attached components, control surfaces, horizontal stabilizers, vertical fins, wing-to-body fairings, antennae, and landing gear and doors, for the purpose of extended corrosion protection and enhanced adhesion.

(V)

Commercial interior adhesive--Materials used in the bonding of passenger cabin interior components. These components must meet the Federal Aviation Administration (FAA) fireworthiness requirements.

(W)

Compatible substrate primer--Either compatible epoxy primer or adhesive primer. Compatible epoxy primer is primer that is compatible with the filled elastomeric coating and is epoxy based. The compatible substrate primer is an epoxy-polyamide primer used to promote adhesion of elastomeric coatings such as impact-resistant coatings. Adhesive primer is a coating that:

(i)

inhibits corrosion and serves as a primer applied to bare metal surfaces or prior to adhesive application; or

(ii)

is applied to surfaces that can be expected to contain fuel. Fuel tank coatings are excluded from this category.

(X)

Confined space--A space that:

(i)

is large enough and so configured that a person can bodily enter and perform assigned work;

(ii)

has limited or restricted means for entry or exit (for example, fuel tanks, fuel vessels, and other spaces that have limited means of entry); and

(iii)

is not suitable for continuous occupancy.

(Y)

Corrosion prevention compound--A coating system or compound that provides corrosion protection by displacing water and penetrating mating surfaces, forming a protective barrier between the metal surface and moisture. Coatings containing oils or waxes are excluded from this category.

(Z)

Critical use and line sealer maskant--A temporary coating, not covered under other maskant categories, used to protect selected areas of aerospace parts from strong acid or alkaline solutions such as those used in anodizing, plating, chemical milling and processing of magnesium, titanium, or high-strength steel, high-precision aluminum chemical milling of deep cuts, and aluminum chemical milling of complex shapes. Materials used for repairs or to bridge gaps left by scribing operations (i.e., line sealer) are also included in this category.

(AA)

Cryogenic flexible primer--A primer designed to provide corrosion resistance, flexibility, and adhesion of subsequent coating systems when exposed to loads up to and surpassing the yield point of the substrate at cryogenic temperatures (-275 degrees Fahrenheit and below).

(BB)

Cryoprotective coating--A coating that insulates cryogenic or subcooled surfaces to limit propellant boil-off, maintain structural integrity of metallic structures during ascent or re-entry, and prevent ice formation.

(CC)

Cyanoacrylate adhesive--A fast-setting, single component adhesive that cures at room temperature. Also known as "super glue."

(DD)

Dry lubricative material--A coating consisting of lauric acid, cetyl alcohol, waxes, or other noncross linked or resin-bound materials that act as a dry lubricant.

(EE)

Electric or radiation-effect coating--A coating or coating system engineered to interact, through absorption or reflection, with specific regions of the electromagnetic energy spectrum, such as the ultraviolet, visible, infrared, or microwave regions. Uses include, but are not limited to, lightning strike protection, electromagnetic pulse (EMP) protection, and radar avoidance. Coatings that have been designated as "classified" by the Department of Defense are excluded.

(FF)

Electrostatic discharge and electromagnetic interference coating--A coating applied to space vehicles, missiles, aircraft radomes, and helicopter blades to disperse static energy or reduce electromagnetic interference.

(GG)

Elevated-temperature Skydrol-resistant commercial primer--A primer applied primarily to commercial aircraft (or commercial aircraft adapted for military use) that must withstand immersion in phosphate-ester hydraulic fluid (Skydrol 500b or equivalent) at the elevated temperature of 150 degrees Fahrenheit for 1,000 hours.

(HH)

Epoxy polyamide topcoat--A coating used where harder films are required or in some areas where engraving is accomplished in camouflage colors.

(II)

Fire-resistant (interior) coating--For civilian aircraft, fire-resistant interior coatings are used on passenger cabin interior parts that are subject to the FAA fireworthiness requirements. For military aircraft, fire-resistant interior coatings are used on parts that are subject to the flammability requirements of MIL-STD-1630A and MIL-A-87721. For space applications, these coatings are used on parts that are subject to the flammability requirements of SE-R-0006 and SSP 30233.

(JJ)

Flexible primer--A primer that meets flexibility requirements such as those needed for adhesive bond primed fastener heads or on surfaces expected to contain fuel. The flexible coating is required because it provides a compatible, flexible substrate over bonded sheet rubber and rubber-type coatings as well as a flexible bridge between the fasteners, skin, and skin-to-skin joints on outer aircraft skins. This flexible bridge allows more topcoat flexibility around fasteners and decreases the chance of the topcoat cracking around the fasteners. The result is better corrosion resistance.

(KK)

Flight test coating--A coating applied to aircraft other than missiles or single-use aircraft prior to flight testing to protect the aircraft from corrosion and to provide required marking during flight test evaluation.

(LL)

Flush cleaning--Removal of contaminants such as dirt, grease, oil, and coatings from an aerospace vehicle or component or coating equipment by passing solvent over, into, or through the item being cleaned. The solvent may simply be poured into the item being cleaned and then drained, or assisted by air or hydraulic pressure, or by pumping. Hand-wipe cleaning operations where wiping, scrubbing, mopping, or other hand action are used are not included.

(MM)

Fuel tank adhesive--An adhesive used to bond components exposed to fuel and must be compatible with fuel tank coatings.

(NN)

Fuel tank coating--A coating applied to fuel tank components for the purpose of corrosion and/or bacterial growth inhibition and to assure sealant adhesion in extreme environmental conditions.

(OO)

Grams of VOC per liter of coating (less water and less exempt solvent)--The weight of VOC per combined volume of total volatiles and coating solids, less water and exempt compounds. Can be calculated by the following equation:

Figure: 30 TAC §115.420(b)(1)(OO)

(PP)

Hand-wipe cleaning operation--Removing contaminants such as dirt, grease, oil, and coatings from an aerospace vehicle or component by physically rubbing it with a material such as a rag, paper, or cotton swab that has been moistened with a cleaning solvent.

(QQ)

High temperature coating--A coating designed to withstand temperatures of more than 350 degrees Fahrenheit.

(RR)

Insulation covering--Material that is applied to foam insulation to protect the insulation from mechanical or environmental damage.

(SS)

Intermediate release coating--A thin coating applied beneath topcoats to assist in removing the topcoat in depainting operations and generally to allow the use of less hazardous depainting methods.

(TT)

Lacquer--A clear or pigmented coating formulated with a nitrocellulose or synthetic resin to dry by evaporation without a chemical reaction. Lacquers are resoluble in their original solvent.

(UU)

Limited access space--Internal surfaces or passages of an aerospace vehicle or component that cannot be reached without the aid of an airbrush or a spray gun extension for the application of coatings.

(VV)

Metalized epoxy coating--A coating that contains relatively large quantities of metallic pigmentation for appearance and/or added protection.

(WW)

Mold release--A coating applied to a mold surface to prevent the molded piece from sticking to the mold as it is removed.

(XX)

Monthly weighted average--the total weight of VOC emission from all coatings divided by the total volume of those coatings (minus water and exempt solvents) delivered to the application system each calender month. Coatings shall not be combined for purposes of calculating the monthly weighted average. In addition, determination of compliance is based on each individual coating operation.

(YY)

Nonstructural adhesive--An adhesive that bonds nonload bearing aerospace components in noncritical applications and is not covered in any other specialty adhesive categories.

(ZZ)

Operating parameter value--A minimum or maximum value established for a control equipment or process parameter that, if achieved by itself or in combination with one or more other operating parameter values, determines that an owner or operator has continued to comply with an applicable emission limitation.

(AAA)

Optical antireflection coating--A coating with a low reflectance in the infrared and visible wavelength ranges that is used for antireflection on or near optical and laser hardware.

(BBB)

Part marking coating--Coatings or inks used to make identifying markings on materials, components, and/or assemblies of aerospace vehicles. These markings may be either permanent or temporary.

(CCC)

Pretreatment coating--An organic coating that contains at least 0.5% acids by weight and is applied directly to metal or composite surfaces to provide surface etching, corrosion resistance, adhesion, and ease of stripping.

(DDD)

Primer--The first layer and any subsequent layers of identically formulated coating applied to the surface of an aerospace vehicle or component. Primers are typically used for corrosion prevention, protection from the environment, functional fluid resistance, and adhesion of subsequent coatings. Primers that are defined as specialty coatings are not included under this definition.

(EEE)

Radome--The nonmetallic protective housing for electromagnetic transmitters and receivers (e.g., radar, electronic countermeasures, etc.).

(FFF)

Rain erosion-resistant coating--A coating or coating system used to protect the leading edges of parts such as flaps, stabilizers, radomes, engine inlet nacelles, etc. against erosion caused by rain impact during flight.

(GGG)

Research and development--An operation whose primary purpose is for research and development of new processes and products and that is conducted under the close supervision of technically trained personnel and is not involved in the manufacture of final or intermediate products for commercial purposes, except in a de minimis manner.

(HHH)

Rocket motor bonding adhesive--An adhesive used in rocket motor bonding applications.

(III)

Rocket motor nozzle coating--A catalyzed epoxy coating system used in elevated temperature applications on rocket motor nozzles.

(JJJ)

Rubber-based adhesive--A quick setting contact cement that provides a strong, yet flexible bond between two mating surfaces that may be of dissimilar materials.

(KKK)

Scale inhibitor--A coating that is applied to the surface of a part prior to thermal processing to inhibit the formation of scale.

(LLL)

Screen print ink--An ink used in screen printing processes during fabrication of decorative laminates and decals.

(MMM)

Sealant--A material used to prevent the intrusion of water, fuel, air, or other liquids or solids from certain areas of aerospace vehicles or components. There are two categories of sealants: extrudable/rollable/brushable sealants and sprayable sealants.

(NNN)

Seal coat maskant--An overcoat applied over a maskant to improve abrasion and chemical resistance during production operations.

(OOO)

Self-priming topcoat--A topcoat that is applied directly to an uncoated aerospace vehicle or component for purposes of corrosion prevention, environmental protection, and functional fluid resistance. More than one layer of identical coating formulation may be applied to the vehicle or component.

(PPP)

Semiaqueous cleaning solvent--A solution in which water is a primary ingredient. More than 60% by volume of the solvent solution as applied must be water.

(QQQ)

Silicone insulation material--An insulating material applied to exterior metal surfaces for protection from high temperatures caused by atmospheric friction or engine exhaust. These materials differ from ablative coatings in that they are not "sacrificial."

(RRR)

Solid film lubricant--A very thin coating consisting of a binder system containing as its chief pigment material one or more of the following: molybdenum, graphite, polytetrafluoroethylene, or other solids that act as a dry lubricant between faying (i.e., closely or tightly fitting) surfaces.

(SSS)

Space vehicle--A man-made device, either manned or unmanned, designed for operation beyond earth's atmosphere. This definition includes integral equipment such as models, mock-ups, prototypes, molds, jigs, tooling, hardware jackets, and test coupons. Also included is auxiliary equipment associated with test, transport, and storage, that through contamination can compromise the space vehicle performance.

(TTT)

Specialty coating--A coating that, even though it meets the definition of a primer, topcoat, or self-priming topcoat, has additional performance criteria beyond those of primers, topcoats, and self-priming topcoats for specific applications. These performance criteria may include, but are not limited to, temperature or fire resistance, substrate compatibility, antireflection, temporary protection or marking, sealing, adhesively joining substrates, or enhanced corrosion protection.

(UUU)

Specialized function coating--A coating that fulfills extremely specific engineering requirements that are limited in application and are characterized by low volume usage. This category excludes coatings covered in other specialty coating categories.

(VVV)

Structural autoclavable adhesive--An adhesive used to bond load-carrying aerospace components that is cured by heat and pressure in an autoclave.

(WWW)

Structural nonautoclavable adhesive--An adhesive cured under ambient conditions that is used to bond load-carrying aerospace components or other critical functions, such as nonstructural bonding in the proximity of engines.

(XXX)

Surface preparation--The removal of contaminants from the surface of an aerospace vehicle or component or the activation or reactivation of the surface in preparation for the application of a coating.

(YYY)

Temporary protective coating--A coating applied to provide scratch or corrosion protection during manufacturing, storage, or transportation. Two types include peelable protective coatings and alkaline removable coatings. These materials are not intended to protect against strong acid or alkaline solutions. Coatings that provide this type of protection from chemical processing are not included in this category.

(ZZZ)

Thermal control coating--A coating formulated with specific thermal conductive or radiative properties to permit temperature control of the substrate.

(AAAA)

Topcoat--A coating that is applied over a primer on an aerospace vehicle or component for appearance, identification, camouflage, or protection. Topcoats that are defined as specialty coatings are not included under this definition.

(BBBB)

Touch-up and repair coating--A coating used to cover minor coating imperfections appearing after the main coating operation.

(CCCC)

Touch-up and repair operation--That portion of the coating operation that is the incidental application of coating used to cover minor imperfections in the coating finish or to achieve complete coverage. This definition includes out-of-sequence or out-of-cycle coating.

(DDDD)

VOC composite vapor pressure--The sum of the partial pressures of the compounds defined as VOCs and is determined by the following calculation:

Figure: 30 TAC §115.420(b)(1)(DDDD)

(EEEE)

Waterborne (water-reducible) coating--A coating which contains more than 5.0% water by weight as applied in its volatile fraction.

(FFFF)

Wet fastener installation coating--A primer or sealant applied by dipping, brushing, or daubing to fasteners that are installed before the coating is cured.

(GGGG)

Wing coating--A corrosion-resistant topcoat that is resilient enough to withstand the flexing of the wings.

[(1)

Aerospace vehicle or component--Any fabricated part, processed part, assembly of parts, or completed unit, with the exception of electronic components, of any aircraft including but not limited to airplanes, helicopters, missiles, rockets, and space vehicles.]

[(2)

Architectural coating.]

[(A)

Architectural coating--Any protective or decorative coating applied to the interior or exterior of a building or structure, including latex paint, alkyd paints, stains, lacquers, varnishes, and urethanes.]

[(B)

Non-flat architectural coating--Any coating which registers a gloss of 15 or greater on an 85 degree gloss meter or 5 or greater on a 60 degree gloss meter, and which is identified on the label as gloss, semigloss, or eggshell enamel coating.]

(2)

[ (3) ] Can coating--The coating of cans for beverages (including beer), edible products (including meats, fruit, vegetables, and others), tennis balls, motor oil, paints, and other mass- produced cans.

(3)

[ (4) ] Coil coating--The coating of any flat metal sheet or strip supplied in rolls or coils.

(4)

[ (5) ] Fabric coating--The application of coatings to fabric, which includes rubber application (rainwear, tents, and industrial products such as gaskets and diaphragms).

(5)

[ (6) ] Factory surface coating of flat wood paneling--Coating of flat wood paneling products, including hardboard, hardwood plywood, particle board, printed interior paneling, and tile board.

(6)

[ (7) ] Large appliance coating--The coating of doors, cases, lids, panels, and interior support parts of residential and commercial washers, dryers, ranges, refrigerators, freezers, water heaters, dishwashers, trash compactors, air conditioners, and other large appliances.

(7)

[ (8) ] Metal furniture coating--The coating of metal furniture (tables, chairs, wastebaskets, beds, desks, lockers, benches, shelves, file cabinets, lamps, and other metal furniture products) or the coating of any metal part which will be a part of a nonmetal furniture product.

(8)

[ (9) ] Mirror backing coating--The application of coatings to the silvered surface of a mirror.

(9)

[ (10) ] Miscellaneous metal parts and products coating (MMPP) .

(A)

Clear coat--A coating which lacks opacity or which is transparent and which may or may not have an undercoat that is used as a reflectant base or undertone color.

(B)

Drum (metal)--Any cylindrical metal shipping container with a nominal capacity equal to or greater than 12 gallons (45.4 liters) but equal to or less than 110 gallons (416 liters).

(C)

Extreme performance coating--A coating intended for exposure to extreme environmental conditions, such as continuous outdoor exposure; temperatures frequently above 95 degrees Celsius (203 degrees Fahrenheit); detergents; abrasive and scouring agents; solvents; and corrosive solutions, chemicals, or atmospheres.

(D)

High-bake coatings--Coatings designed to cure at temperatures above 194 degrees Fahrenheit.

(E)

Low-bake coatings--Coatings designed to cure at temperatures of 194 degrees Fahrenheit or less.

(F)

MMPP [ Miscellaneous metal parts and products ] coating--The coating of MMPP [ miscellaneous metal parts and products ] in the following categories at original equipment manufacturing operations; designated on-site maintenance shops which recoat used parts and products; and off-site job shops which coat new parts and products or which recoat used parts and products :

(i)

large farm machinery (harvesting, fertilizing, and planting machines, tractors, combines, etc.);

(ii)

small farm machinery (lawn and garden tractors, lawn mowers, rototillers, etc.);

(iii)

small appliances (fans, mixers, blenders, crock pots, dehumidifiers, vacuum cleaners, etc.);

(iv)

commercial machinery (computers and auxiliary equipment, typewriters, calculators, vending machines, etc.);

(v)

industrial machinery (pumps, compressors, conveyor components, fans, blowers, transformers, etc.);

(vi)

fabricated metal products (metal-covered doors, frames, etc.); and

(vii)

any other category of coated metal products, [ except those surface coating processes specified in paragraphs (2)-(9) and (11)-(15) of this subsection, ] including, but not limited to, those which are included in the Standard Industrial Classification Code major group 33 (primary metal industries), major group 34 (fabricated metal products), major group 35 (nonelectrical machinery), major group 36 (electrical machinery), major group 37 (transportation equipment), major group 38 (miscellaneous instruments), and major group 39 (miscellaneous manufacturing industries). Excluded are those surface coating processes specified in paragraphs (1)-(8) and (10)-(14) of this subsection.

(G)

Pail (metal)--Any cylindrical metal shipping container with a nominal capacity equal to or greater than 1 gallon (3.8 liters) but less than 12 gallons (45.4 liters) and constructed of 29 gauge or heavier material.

(10)

[ (11) ] Paper coating--The coating of paper and pressure-sensitive tapes (regardless of substrate and including paper, fabric, and plastic film) and related web coating processes on plastic film (including typewriter ribbons, photographic film, and magnetic tape) and metal foil (including decorative, gift wrap, and packaging).

(11)

[ (12) ] Marine coatings.

(A)

Air flask specialty coating--Any special composition coating applied to interior surfaces of high pressure breathing air flasks to provide corrosion resistance and that is certified safe for use with breathing air supplies.

(B)

Antenna specialty coating--Any coating applied to equipment through which electromagnetic signals must pass for reception or transmission.

(C)

Antifoulant specialty coating--Any coating that is applied to the underwater portion of a vessel to prevent or reduce the attachment of biological organisms and that is registered with the EPA [ United States Environmental Protection Agency ] as a pesticide under the Federal Insecticide, Fungicide, and Rodenticide Act.

(D)

Batch--The product of an individual production run of a coating manufacturer's process. (A batch may vary in composition from other batches of the same product.)

(E)

Bitumens--Black or brown materials that are soluble in carbon disulfide, which consist mainly of hydrocarbons.

(F)

Bituminous resin coating--Any coating that incorporates bitumens as a principal component and is formulated primarily to be applied to a substrate or surface to resist ultraviolet radiation and/or water.

(G)

Epoxy--Any thermoset coating formed by reaction of an epoxy resin (i.e., a resin containing a reactive epoxide with a curing agent).

(H)

General use coating--Any coating that is not a specialty coating.

(I)

Heat resistant specialty coating--Any coating that during normal use must withstand a temperature of at least 204 degrees Celsius (400 degrees Fahrenheit).

(J)

High-gloss specialty coating--Any coating that achieves at least 85% reflectance on a 60 degree meter when tested by the American Society for Testing and Materials (ASTM) Method D-523.

(K)

High-temperature specialty coating--Any coating that during normal use must withstand a temperature of at least 426 degrees Celsius (800 degrees Fahrenheit).

(L)

Inorganic zinc (high-build) specialty coating--A coating that contains 960 grams per liter (eight pounds per gallon) or more elemental zinc incorporated into an inorganic silicate binder that is applied to steel to provide galvanic corrosion resistance. (These coatings are typically applied at more than two mil dry film thickness.)

(M)

Maximum allowable thinning ratio--The maximum volume of thinner that can be added per volume of coating without exceeding the applicable VOC limit of §115.421(a)(15)(A) of this title [ (relating to Emission Specifications) ].

(N)

Military exterior specialty coating--Any exterior topcoat applied to military or United States [ U.S. ] Coast Guard vessels that are subject to specific chemical, biological, and radiological washdown requirements.

(O)

Mist specialty coating--Any low viscosity, thin film, epoxy coating applied to an inorganic zinc primer that penetrates the porous zinc primer and allows the occluded air to escape through the paint film prior to curing.

(P)

Navigational aids specialty coating--Any coating applied to Coast Guard buoys or other Coast Guard waterway markers when they are recoated aboard ship at their usage site and immediately returned to the water.

(Q)

Nonskid specialty coating--Any coating applied to the horizontal surfaces of a marine vessel for the specific purpose of providing slip resistance for personnel, vehicles, or aircraft.

(R)

Nonvolatiles (or volume solids)--Substances that do not evaporate readily. This term refers to the film-forming material of a coating.

(S)

Nuclear specialty coating--Any protective coating used to seal porous surfaces such as steel (or concrete) that otherwise would be subject to intrusion by radioactive materials. These coatings must be resistant to long-term (service life) cumulative radiation exposure (ASTM D4082-83), relatively easy to decontaminate (ASTM D4256-83), and resistant to various chemicals to which the coatings are likely to be exposed (ASTM 3912-80). (For nuclear coatings, see the general protective requirements outlined by the U.S. Atomic Energy Commission in a report entitled "U.S. Atomic Energy Commission Regulatory Guide 1.54" dated June 1973, available through the Government Printing Office at (202) 512-2249 as document number A74062-00001.)

(T)

Organic zinc specialty coating--Any coating derived from zinc dust incorporated into an organic binder that contains more than 960 grams of elemental zinc per liter (eight pounds per gallon) of coating, as applied, and that is used for the expressed purpose of corrosion protection.

(U)

Pleasure craft--Any marine or fresh-water vessel used by individuals for noncommercial, nonmilitary, and recreational purposes that is less than 20 meters (65.6 feet) in length. A vessel rented exclusively to, or chartered for, individuals for such purposes shall be considered a pleasure craft.

(V)

Pretreatment wash primer specialty coating--Any coating that contains a minimum of 0.5% acid by weight that is applied only to bare metal surfaces to etch the metal surface for corrosion resistance and adhesion of subsequent coatings.

(W)

Repair and maintenance of thermoplastic coating of commercial vessels (specialty coating)--Any vinyl, chlorinated rubber, or bituminous resin coating that is applied over the same type of existing coating to perform the partial recoating of any in-use commercial vessel. (This definition does not include coal tar epoxy coatings, which are considered "general use" coatings.)

(X)

Rubber camouflage specialty coating--Any specially formulated epoxy coating used as a camouflage topcoat for exterior submarine hulls and sonar domes.

(Y)

Sealant for thermal spray aluminum--Any epoxy coating applied to thermal spray aluminum surfaces at a maximum thickness of one dry mil.

(Z)

Ship--Any marine or fresh-water vessel, including self-propelled vessels, those propelled by other craft (barges), and navigational aids (buoys). This definition includes, but is not limited to, all military and Coast Guard vessels, commercial cargo and passenger (cruise) ships, ferries, barges, tankers, container ships, patrol and pilot boats, and dredges. Pleasure craft and offshore oil or gas drilling platforms are not considered ships.

(AA)

Shipbuilding and ship repair operations--Any building, repair, repainting, converting, or alteration of ships or offshore oil or gas drilling platforms.

(BB)

Special marking specialty coating--Any coating that is used for safety or identification applications, such as ship numbers and markings on flight decks.

(CC)

Specialty interior coating--Any coating used on interior surfaces aboard United States [ U.S. ] military vessels pursuant to a coating specification that requires the coating to meet specified fire retardant and low toxicity requirements, in addition to the other applicable military physical and performance requirements.

(DD)

Tack coat specialty coating--Any thin film epoxy coating applied at a maximum thickness of two dry mils to prepare an epoxy coating that has dried beyond the time limit specified by the manufacturer for the application of the next coat.

(EE)

Undersea weapons systems specialty coating--Any coating applied to any component of a weapons system intended to be launched or fired from under the sea.

(FF)

Weld-through preconstruction primer (specialty coating)--A coating that provides corrosion protection for steel during inventory, is typically applied at less than one mil dry film thickness, does not require removal prior to welding, is temperature resistant (burn back from a weld is less than 1.25 centimeters (0.5 inches)), and does not normally require removal before applying film-building coatings, including inorganic zinc high-build coatings. When constructing new vessels, there may be a need to remove areas of weld-through preconstruction primer due to surface damage or contamination prior to application of film-building coatings.

(12)

[ (13) ] Vehicle coating.

(A)

Automobile and light-duty truck manufacturing.

(i)

Automobile coating--The assembly-line coating of passenger cars, or passenger car derivatives, capable of seating 12 or fewer passengers.

(ii)

Light-duty truck coating--The assembly-line coating of motor vehicles rated at 8,500 pounds (3,855.5 kg) gross vehicle weight or less and designed primarily for the transportation of property, or derivatives such as pickups, vans, and window vans.

(B)

Vehicle refinishing (body shops).

(i)

Basecoat/clearcoat system--A topcoat system composed of a pigmented basecoat portion and a transparent clearcoat portion. The VOC content of a basecoat (bc)/clearcoat (cc) system shall be calculated according to the following formula:

Figure: 30 TAC §115.420(b) (12) [ (13) ](B)(i)

(ii)

Precoat--Any coating that is applied to bare metal to deactivate the metal surface for corrosion resistance to a subsequent water-based primer. This coating is applied to bare metal solely for the prevention of flash rusting.

(iii)

Pretreatment--Any coating which contains a minimum of 0.5% acid by weight that is applied directly to bare metal surfaces to etch the metal surface for corrosion resistance and adhesion of subsequent coatings.

(iv)

Primer or primer surfacers--Any base coat, sealer, or intermediate coat which is applied prior to colorant or aesthetic coats.

(v)

Sealers--Coatings that are formulated with resins which, when dried, are not readily soluble in typical solvents. These coatings act as a shield for surfaces over which they are sprayed by resisting the penetration of solvents which are in the final topcoat.

(vi)

Specialty coatings--Coatings or additives which are necessary due to unusual job performance requirements. These coatings or additives prevent the occurrence of surface defects and impart or improve desirable coating properties. These products include, but are not limited to, uniform finish blenders, elastomeric materials for coating of flexible plastic parts, coatings for non-metallic parts, jambing clear coatings, gloss flatteners, and anti-glare/safety coatings.

(vii)

Three-stage system--A topcoat system composed of a pigmented basecoat portion, a semitransparent midcoat portion, and a transparent clearcoat portion. The VOC content of a three-stage system shall be calculated according to the following formula:

Figure: 30 TAC §115.420(b) (12) [(13)] (B)(vii)

(viii)

Vehicle refinishing (body shops)--The coating of vehicles, including, but not limited to, motorcycles, passenger cars, vans, light-duty trucks, medium-duty trucks, heavy-duty trucks, buses, and other vehicle body parts, bodies, and cabs by an operation other than the original manufacturer. The coating of trailers and construction equipment is not included.

(ix)

[ (viii) ] Wipe-down solutions--Any solution used for cleaning and surface preparation.

[(ix)

Vehicle refinishing (body shops)--The repair and recoating of vehicles, including, but not limited to, motorcycles, passenger cars, vans, light-duty trucks, medium-duty trucks, heavy-duty trucks, buses, and other vehicle body parts, bodies, and cabs by a commercial operation other than the original manufacturer. The repair and recoating of trailers and construction equipment are not included.]

(13)

[ (14) ] Vinyl coating--The use of printing or any decorative or protective topcoat applied over vinyl sheets or vinyl-coated fabric.

(14)

[ (15) ] Wood parts and products coating.

(A)

The following terms apply to wood parts and products coating facilities subject to §115.421(a)(13) of this title.

(i)

Clear coat--A coating which lacks opacity or which is transparent and uses the undercoat as a reflectant base or undertone color.

(ii)

Clear sealers--Liquids applied over stains, toners, and other coatings to protect these coatings from marring during handling and to limit absorption of succeeding coatings.

(iii)

Final repair coat--Liquids applied to correct imperfections or damage to the topcoat.

(iv)

Opaque ground coats and enamels--Colored, opaque liquids applied to wood or wood composition substrates which completely hide the color of the substrate in a single coat.

(v)

Semitransparent spray stains and toners--Colored liquids applied to wood to change or enhance the surface without concealing the surface, including but not limited to, toners and nongrain-raising stains.

(vi)

Semitransparent wiping and glazing stains--Colored liquids applied to wood that require multiple wiping steps to enhance the grain character and to partially fill the porous surface of the wood.

(vii)

Shellacs--Coatings formulated solely with the resinous secretions of the lac beetle (laccifer lacca), thinned with alcohol, and formulated to dry by evaporation without a chemical reaction.

(viii)

Topcoat--A coating which provides the final protective and aesthetic properties to wood finishes.

(ix)

Varnishes--Clear wood finishes formulated with various resins to dry by chemical reaction on exposure to air.

(x)

Wash coat--A low-solids clear liquid applied over semitransparent stains and toners to protect the color coats and to set the fibers for subsequent sanding or to separate spray stains from wiping stains to enhance color depth.

(xi)

Wood parts and products coating--The coating of wood parts and products, excluding factory surface coating of flat wood paneling.

(B)

The following terms apply to wood furniture manufacturing facilities subject to §115.421(a)(14) of this title.

(i)

Adhesive--Any chemical substance that is applied for the purpose of bonding two surfaces together other than by mechanical means. Adhesives are not considered to be coatings or finishing materials for wood furniture manufacturing facilities subject to §115.421(a)(14) of this title.

(ii)

Basecoat--A coat of colored material, usually opaque, that is applied before graining inks, glazing coats, or other opaque finishing materials and is usually topcoated for protection.

(iii)

Cleaning operations--Operations in which organic solvent is used to remove coating materials from equipment used in wood furniture manufacturing operations.

(iv)

Continuous coater--A finishing system that continuously applies finishing materials onto furniture parts moving along a conveyor system. Finishing materials that are not transferred to the part are recycled to the finishing material reservoir. Several types of application methods can be used with a continuous coater, including spraying, curtain coating, roll coating, dip coating, and flow coating.

(v)

Conventional air spray--A spray coating method in which the coating is atomized by mixing it with compressed air at an air pressure greater than 10 pounds per square inch gauge (psig) at the point of atomization. Airless and air-assisted airless spray technologies are not conventional air spray because the coating is not atomized by mixing it with compressed air. Electrostatic spray technology is also not conventional air spray because an electrostatic charge is employed to attract the coating to the workpiece. In addition, high-volume low-pressure (HVLP) spray technology is not conventional air spray because its pressure is less than 10 psig.

(vi)

Finishing application station--The part of a finishing operation where the finishing material is applied (for example, a spray booth).

(vii)

Finishing material--A coating used in the wood furniture industry. For the wood furniture manufacturing industry, such materials include, but are not limited to, basecoats, stains, washcoats, sealers, and topcoats.

(viii)

Finishing operation--Those activities in which a finishing material is applied to a substrate and is subsequently air-dried, cured in an oven, or cured by radiation.

(ix)

Organic solvent--A liquid containing VOCs that is used for dissolving or dispersing constituents in a coating; adjusting the viscosity of a coating; cleaning; or washoff. When used in a coating, the organic solvent evaporates during drying and does not become a part of the dried film.

(x)

Sealer--A finishing material used to seal the pores of a wood substrate before additional coats of finishing material are applied. Washcoats, which are used in some finishing systems to optimize aesthetics, are not sealers.

(xi)

Stain--Any color coat having a solids content of no more than 8.0% by weight that is applied in single or multiple coats directly to the substrate. Includes, but is not limited to, nongrain-raising stains, equalizer stains, sap stains, body stains, no-wipe stains, penetrating stains, and toners.

(xii)

Strippable booth coating--A coating that is applied to a booth wall to provide a protective film to receive overspray during finishing operations; is subsequently peeled off and disposed; and reduces or eliminates the need to use organic solvents to clean booth walls.

(xiii)

Topcoat--The last film-building finishing material applied in a finishing system. A material such as a wax, polish, nonoxidizing oil, or similar substance that must be periodically reapplied to a surface over its lifetime to maintain or restore the reapplied material's intended effect is not considered to be a topcoat.

(xiv)

Touch-up and repair--The application of finishing materials to cover minor finishing imperfections.

(xv)

Washcoat--A transparent special purpose coating having a solids content of 12% by weight or less. Washcoats are applied over initial stains to protect and control color and to stiffen the wood fibers in order to aid sanding.

(xvi)

Washoff operations--Those operations in which organic solvent is used to remove coating from a substrate.

(xvii)

Wood furniture--Any product made of wood, a wood product such as rattan or wicker, or an engineered wood product such as particleboard that is manufactured under any of the following standard industrial classification codes: 2434 (wood kitchen cabinets), 2511 (wood household furniture, except upholstered), 2512 (wood household furniture, upholstered), 2517 (wood television, radios, phonograph and sewing machine cabinets), 2519 (household furniture not elsewhere classified), 2521 (wood office furniture), 2531 (public building and related furniture), 2541 (wood office and store fixtures, partitions, shelving and lockers), 2599 (furniture and fixtures not elsewhere classified), or 5712 (custom kitchen cabinets).

(xviii)

Wood furniture component--Any part that is used in the manufacture of wood furniture. Examples include, but are not limited to, drawer sides, cabinet doors, seat cushions, and laminated tops. However, foam seat cushions manufactured and fabricated at a facility that does not engage in any other wood furniture or wood furniture component manufacturing operation are excluded from this definition.

(xix)

Wood furniture manufacturing operations--The finishing, cleaning, and washoff operations associated with the production of wood furniture or wood furniture components.

§115.421.Emission Specifications.

(a)

No person in the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas as defined in §115.10 of this title (relating to Definitions) may cause, suffer, allow, or permit volatile organic compound (VOC) emissions from the surface coating processes affected by paragraphs (1)-(15) of this subsection to exceed the specified emission limits. These limitations are based on the daily weighted average of all coatings delivered to each coating line, except for those in paragraph (10) of this subsection which are based on paneling surface area, [ those in paragraph (11) of this subsection which are based on the VOC content of architectural coatings sold or offered for sale, ] and those in paragraph (14) of this subsection which, if using an averaging approach, must use one of the daily averaging equations within that paragraph. The owner or operator of a surface coating operation subject to paragraph (11) of the subsection may choose to comply by using the monthly weighted average option as defined in §115.420 (b)(1)(XX) of this title (relating to Surface Coating Definitions. [ For the purposes of this division (relating to Surface Coating Processes), daily weighted average means the total weight of VOC emissions from all coatings, divided by the total volume of all coatings (minus water and exempt solvent) delivered to the application system each day. ]

(1)-(7)

(No change.)

(8)

Vehicle coating.

(A)

The following VOC emission limits shall be achieved for all automobile and light-duty truck manufacturing, on the basis of solvent content per gallon of coating (minus water and exempt solvents) delivered to the application system or for primer surfacer and top coat application, compliance may be demonstrated on the basis of VOC emissions per gallon of solids deposited as determined by §115.425(3) [ §115.425(a)(3) ] of this title (relating to Testing Requirements).

Figure: 30 TAC §115.421(a)(8)(A)

(B)-(C)

(No change.)

(9)

Miscellaneous metal parts and products (MMPP) coating.

(A)

VOC emissions from the coating of MMPP [ miscellaneous metal parts and products ] shall not exceed the following limits for each surface coating type:

(i)-(iii)

(No change.)

(iv)

3.0 pounds per gallon (0.36 kg/liter) of coating (minus water and exempt solvent) delivered to the application system for all other coating applications, including high-bake coatings, that pertain to MMPP [ miscellaneous metal parts and products ]; and

(v)

until December 31, 2001, 3.5 pounds per gallon (0.42 kg/liter) of coating (minus water and exempt solvent) delivered to the application system as a prime coat for the exterior of aircraft.

(B)-(C)

(No change.)

(10)

(No change.)

(11)

Aerospace coatings. The VOC content of coatings, including any VOC-containing materials added to the original coating supplied by the manufacturer, which are applied to aerospace vehicles or components shall not exceed the following limits (in grams of VOC per liter of coating, less water and exempt solvent). The following applications are exempt from the VOC content limits of this paragraph: manufacturing or re-work of space vehicles or antique aerospace or components of each; touchup, and United States Department of Defense classified coatings; separate formulations in volumes less than 50 gallons per year to a maximum of 200 gallons per year for all such formulations.

(A)

For the broad categories of primers, topcoats, and chemical milling maskants (Type I/II) which are not specialty coatings as listed in subparagraph (B) of this paragraph:

(i)

primer, 350;

(ii)

topcoats (including self-priming topcoats), 420; and

(iii)

chemical milling maskants:

(I)

Type I, 622; and

(II)

Type II, 160.

(B)

For specialty coatings:

Figure: 30 TAC §115.421(a)(11)(B)

[(11)

Architectural coatings. Any coating sold or offered for sale as an architectural coating shall have the date of manufacture clearly marked on each container, and the VOC content shall not exceed the following limits:]

[(A)

2.2 pounds per gallon (0.26 kg/liter) of coating (minus water and exempt solvent) for non-flat and flat latex paints;]

[(B)

3.5 pounds per gallon (0.42 kg/liter) of coating (minus water and exempt solvent) for interior alkyd paints;]

[(C)

4.0 pounds per gallon (0.48 kg/liter) of coating (minus water and exempt solvent) for exterior alkyd paints;]

[(D)

4.5 pounds per gallon (0.54 kg/liter) of coating (minus water and exempt solvent) for epoxy paints;]

[(E)

6.0 pounds per gallon (0.72 kg/liter) of coating (minus water and exempt solvent) for exterior stains;]

[(F)

7.0 pounds per gallon (0.84 kg/liter) of coating (minus water and exempt solvent) for interior stains;]

[(G)

4.5 pounds per gallon (0.54 kg/liter) of coating (minus water and exempt solvent) for urethane coatings;]

[(H)

4.5 pounds per gallon (0.54 kg/liter) of coating (minus water and exempt solvent) for alkyd varnishes; and]

[ (I)

5.6 pounds per gallon (0.67 kg/liter) of coating (minus water and exempt solvent) for nitrocellulose- based lacquers.]

(12)

Surface coating of mirror backing.

(13)

Surface coating of wood parts and products.

(A)-(B)

(No change.)

(C)

The requirements of §115.423(3) [ §115.423(a)(3) ] of this title (relating to Alternate Control Requirements) do not apply at wood parts and products coating facilities if:

(i)

a vapor control [ recovery ] system is used to control emissions from wood parts and products coating operations; and

(ii)

(No change.)

(14)

Surface coating at wood furniture manufacturing facilities. The [ After December 31, 1999, the ] following requirements apply to wood furniture manufacturing facilities in the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas. For facilities which are subject to this paragraph, adhesives are not considered to be coatings or finishing materials.

(A)

VOC emissions from finishing operations shall be limited by:

(i)-(iv)

(No change.)

(v)

Using a vapor control [ recovery ] system that will achieve an equivalent reduction in emissions as the requirements of clauses (i) or (ii) of this subparagraph. If this option is used, the requirements of §115.423(3) [ §115.423(a)(3) ] of this title [ (relating to Alternate Control Requirements) ] do not apply; or

(vi)

(No change.)

(B)

(No change.)

(15)

Marine coatings. The [ After December 31, 1999, the ] following requirements apply to shipbuilding and ship repair operations in the Beaumont/Port Arthur and Houston/Galveston areas.

(A)-(B)

(No change.)

(b)

No person in Gregg, Nueces, and Victoria Counties may cause, suffer, allow, or permit VOC emissions from the surface coating processes affected by paragraphs (1)-(9) of this subsection to exceed the specified emission limits. These limitations are based on the daily weighted average of all coatings delivered to each coating line, except for those in paragraph (9) of this subsection which are based on paneling surface area. [ For the purposes of this division (relating to Surface Coating Processes), daily weighted average means the total weight of VOC emissions from all coatings, divided by the total volume of all coatings (minus water and exempt solvent) delivered to the application system each day. ]

(1)-(7)

(No change.)

(8)

MMPP [ Miscellaneous metal parts and products ] coating.

(A)

VOC emissions from the coating of MMPP [ miscellaneous metal parts and products ] shall not exceed the following limits for each surface coating type:

(i)

4.3 pounds per gallon (0.52 kg/liter) of coating (minus water and exempt solvent) delivered to the application system as a clear coat; or as an interior protective coating for pails and drums;

(ii)

3.5 pounds per gallon (0.42 kg/liter) of coating (minus water and exempt solvent) delivered to the application system as a low-bake coating; or that utilizes air or forced air driers;

(iii)

3.5 pounds per gallon (0.42 kg/liter) of coating (minus water and exempt solvent) delivered to the application system as an extreme performance coating, including chemical milling maskants; and

(iv)

3.0 pounds per gallon (0.36 kg/liter) of coating (minus water and exempt solvent) delivered to the application system for all other coating applications, including high-bake coatings, that pertain to MMPP [ miscellaneous metal parts and products ].

(B)-(C)

(No change.)

(9)

(No change.)

(10)

Aerospace coatings. Coatings applied to aerospace vehicles or components shall meet the requirements specified in subsection (a)(11) of this section and §115.422(5) of this title, unless exempted under §115.427(b) of this title (relating to Exemptions).

§115.422.Control Requirements.

For the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas, the following control requirements shall apply.

(1)

The owner or operator of each vehicle refinishing (body shop) operation shall minimize volatile organic compound (VOC) emissions during equipment cleanup by utilizing the following procedures:

(A)-(C)

(No change.)

(2)

(No change.)

(3)

The following requirements apply to each wood furniture manufacturing facility subject to §115.421(a)(14) of this title (relating to Emission Specifications).

(A)

No compounds containing more than 8.0% by weight of VOC [ volatile organic compounds (VOC) ] shall be used for cleaning spray booth components other than conveyors, continuous coaters and their enclosures, and/or metal filters, unless the spray booth is being refurbished. If the spray booth is being refurbished, that is, the spray booth coating or other material used to cover the booth is being replaced, no more than 1.0 gallon of organic solvent shall be used to prepare the booth prior to applying the booth coating.

(B)

(No change.)

(C)

Conventional air spray guns shall not be used for applying finishing materials except under one or more of the following circumstances:

(i)-(iii)

(No change.)

(iv)

If emissions from the finishing application station are directed to a vapor control [ recovery ] system;

(v)-(vi)

(No change.)

(D)-(E)

(No change.)

(4)

(No change.)

(5)

The following requirements apply to each aerospace vehicle or component coating process subject to §115.421(a)(11) or (b)(10) of this title.

(A)

One or more of the following application techniques shall be used to apply any primer or topcoat to aerospace vehicles or components: flow/curtain coating; dip coating; roll coating; brush coating; cotton-tipped swab application; electrodeposition coating; HVLP spraying; electrostatic spraying; or other coating application methods that achieve emission reductions equivalent to HVLP or electrostatic spray application methods, unless one of the following situations apply:

(i)

any situation that normally requires the use of an airbrush or an extension on the spray gun to properly reach limited access spaces;

(ii)

the application of specialty coatings;

(iii)

the application of coatings that contain fillers that adversely affect atomization with HVLP spray guns and that the executive director has determined cannot be applied by any of the specified application methods;

(iv)

the application of coatings that normally have a dried film thickness of less than 0.0013 centimeter (0.0005 in.) and that the executive director has determined cannot be applied by any of the specified application methods in this subparagraph;

(v)

the use of airbrush application methods for stenciling, lettering, and other identification markings;

(vi)

the use of aerosol coating (spray paint) application methods; and

(vii)

touch-up and repair operations.

(B)

Cleaning solvents used in hand-wipe cleaning operations shall meet the definition of aqueous cleaning solvent in §115.420(b)(1)(I) of this title (relating to Surface Coating Definitions) or have a VOC composite vapor pressure less than or equal to 45 millimeters of mercury at 20 degrees Celsius, unless one of the following situations apply:

(i)

cleaning during the manufacture, assembly, installation, maintenance, or testing of components of breathing oxygen systems that are exposed to the breathing oxygen;

(ii)

cleaning during the manufacture, assembly, installation, maintenance, or testing of parts, subassemblies, or assemblies that are exposed to strong oxidizers or reducers (e.g., nitrogen tetroxide, liquid oxygen, hydrazine);

(iii)

cleaning and surface activation prior to adhesive bonding;

(iv)

cleaning of electronics parts and assemblies containing electronics parts;

(v)

cleaning of aircraft and ground support equipment fluid systems that are exposed to the fluid, including air-to-air heat exchangers and hydraulic fluid systems;

(vi)

cleaning of fuel cells, fuel tanks, and confined spaces;

(vii)

surface cleaning of solar cells, coated optics, and thermal control surfaces;

(viii)

cleaning during fabrication, assembly, installation, and maintenance of upholstery, curtains, carpet, and other textile materials used on the interior of the aircraft;

(ix)

cleaning of metallic and nonmetallic materials used in honeycomb cores during the manufacture or maintenance of these cores, and cleaning of the completed cores used in the manufacture of aerospace vehicles or components;

(x)

cleaning of aircraft transparencies, polycarbonate, or glass substrates;

(xi)

cleaning and solvent usage associated with research and development, quality control, or laboratory testing;

(xii)

cleaning operations, using nonflammable liquids, conducted within 5 feet of energized electrical systems. Energized electrical systems means any alternating current (AC) or direct current (DC) electrical circuit on an assembled aircraft once electrical power is connected, including interior passenger and cargo areas, wheel wells and tail sections; and

(xiii)

cleaning operations identified as essential uses under the Montreal Protocol for which EPA has allocated essential use allowances or exemptions in 40 Code of Federal Regulations §82.4, including any future amendments promulgated by EPA.

(C)

For cleaning solvents used in the flush cleaning of parts, assemblies, and coating unit components, the used cleaning solvent must be emptied into an enclosed container or collection system that is kept closed when not in use or captured with wipers provided they comply with the housekeeping requirements of subparagraph (E) of this paragraph. Aqueous and semiaqueous cleaning solvents are exempt from this subparagraph.

(D)

All spray guns must be cleaned by one or more of the following methods:

(i)

enclosed spray gun cleaning system provided that it is kept closed when not in use and leaks are repaired within 14 days from when the leak is first discovered. If the leak is not repaired by the 15th day after detection, the solvent shall be removed and the enclosed cleaner shall be shut down until the leak is repaired or its use is permanently discontinued;

(ii)

unatomized discharge of solvent into a waste container that is kept closed when not in use;

(iii)

disassembly of the spray gun and cleaning in a vat that is kept closed when not in use; or

(iv)

atomized spray into a waste container that is fitted with a device designed to capture atomized solvent emissions.

(E)

All fresh and used cleaning solvents used in solvent cleaning operations shall be stored in containers that are kept closed at all times except when filling or emptying. Cloth and paper, or other absorbent applicators, moistened with cleaning solvents shall be stored in closed containers. Cotton- tipped swabs used for very small cleaning operations are exempt from this subparagraph. In addition, the owner or operator must implement handling and transfer procedures to minimize spills during filling and transferring the cleaning solvent to or from enclosed systems, vats, waste containers, and other cleaning operation equipment that hold or store fresh or used cleaning solvents. The requirements of this subparagraph are known collectively as housekeeping measures. Aqueous and semiaqueous cleaning solvents are exempt from this subparagraph.

(6)

[ (5) ] Any surface coating operation that becomes subject to the provisions of §115.421(a) of this title by exceeding the provisions of §115.427(a) of this title (relating to Exemptions) shall remain subject to the provisions in §115.421(a) of this title, even if throughput or emissions later fall below exemption limits unless and until emissions are reduced to no more than the controlled emissions level existing before implementation of the project by which throughput or emission rate was reduced to less than the applicable exemption limits in §115.427(a) of this title, and:

(A)

the project by which throughput or emission rate was reduced is authorized by any permit or permit amendment or standard permit or [ standard ] exemption from permitting required by Chapter 116 or Chapter 106 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification; and Exemptions from Permitting). If an [ a standard ] exemption from permitting is available for the project, compliance with this subsection must be maintained for 30 days after the filing of documentation of compliance with that [ standard ] exemption from permitting ; or

(B)

if authorization by permit, permit amendment, standard permit, or [ standard ] exemption from permitting is not required for the project, the owner/operator has given the executive director 30 days' notice of the project in writing.

§115.423.Alternate Control Requirements.

(a)

The alternate control requirements for surface coating processes [ For all affected persons ] in the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas and in Gregg, Nueces, and Victoria Counties are as follows [ , the following alternate control requirements may apply ].

(1)

Emission calculations for surface coating operations performed to satisfy the conditions of §101.23 of this title (relating to Alternate Emission Reduction "Bubble" Policy), §115.910 of this title (relating to Availability of Alternate Means of Control), or other demonstrations of equivalency with the specified emission limits in this division (relating to Surface Coating Processes) shall be based on the pounds of volatile organic compounds (VOC) per gallon of solids for all affected coatings. The following equation shall be used to convert emission limits from pounds of VOC per gallon of coating to pounds of VOC per gallon of solids:

Figure: 30 TAC §115.423[ (a) ](1)

(2)

(No change.)

(3)

If a vapor control [ recovery ] system is used to control emissions from coating operations, the capture and abatement system shall be capable of achieving and maintaining emission reductions equivalent to the emission limitations of §115.421 [ §115.421(a) ] of this title (relating to Emission Specifications) and an overall control efficiency of at least 80% of the VOC [ volatile organic compound (VOC) ] emissions from those coatings. The owner or operator of any surface coating facility shall submit design data for each capture system and emission control device which is proposed for use to the executive director for approval. In the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas, [ Any ] capture efficiency testing shall be performed in accordance with §115.425(4) [ §115.425(a)(4) ] of this title (relating to Testing Requirements).

(4)

For any surface coating process or processes at a specific property, the executive director may approve requirements different from those in §115.421(a)(9) or (b)(8) of this title [ (relating to Emission Specifications) ] based upon his determination that such requirements will result in the lowest emission rate that is technologically and economically reasonable. When he makes such a determination, the executive director shall specify the date or dates by which such different requirements shall be met and shall specify any requirements to be met in the interim. If the emissions resulting from such different requirements equal or exceed 25 tons a year for a property, the determinations for that property shall be reviewed every five [ two ] years. Executive director approval does not necessarily constitute satisfaction of all federal requirements nor eliminate the need for approval by the EPA [ United States Environmental Protection Agency (EPA) ] in cases where specified criteria for determining equivalency have not been clearly identified in applicable sections of this chapter.

[(b)

For all affected persons in Gregg, Nueces, and Victoria Counties, the following alternate control requirements may apply:]

[(1)

Emission calculations for surface coating operations performed to satisfy the conditions of §101.23 of this title, §115.910 of this title, or other demonstrations of equivalency with the specified emission limits in this division (relating to Surface Coating Processes) shall be based on the pounds of VOC per gallon of solids for all affected coatings. The following equation shall be used to convert emission limits from pounds of VOC per gallon of coating to pounds of VOC per gallon of solids:]

[Figure: 30 TAC §115.423(b)(1)]

[(2)

Any alternate methods of demonstrating and documenting continuous compliance with the applicable control requirements or exemption criteria in this division, such as use of improved transfer efficiency, may be approved by the executive director in accordance with §115.910 of this title if emission reductions are demonstrated to be substantially equivalent.]

[(3)

If a vapor recovery system is used to control emissions from coating operations, the capture and abatement system shall be capable of achieving and maintaining emission reductions equivalent to the emission limitations of §115.421(b) of this title (relating to Emission Specifications) and an overall control efficiency of at least 80% of the VOC emissions from those coatings. The owner or operator of any surface coating facility shall submit design data for each capture system and emission control device which is proposed for use to the executive director for approval.]

[(4)

For any surface coating process or processes at a specific property the Executive Director may approve requirements different from those in §115.421(b)(8) of this title based upon his determination that such requirements will result in the lowest emission rate that is technologically and economically reasonable. When he makes such a determination, the Executive Director shall specify the date or dates by which such different requirements shall be met and shall specify any requirements to be met in the interim. If the emissions resulting from such different requirements equal or exceed 25 tons a year for a property, the determinations for that property shall be reviewed every two years. Executive director approval does not necessarily constitute satisfaction of all federal requirements nor eliminate the need for approval by the EPA in cases where specified criteria for determining equivalency have not been clearly identified in applicable sections of this chapter.]

§115.424.Inspection Requirements.

[(a)

For the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas, the following inspection requirements shall apply:]

(a)

[ (1) ] The owner or operator of each [ All ] surface coating process [ processes or operations ] subject to §115.421 [ affected by §115.421(a) ] of this title (relating to Emissions Specifications) must provide samples, without charge, upon request by representatives of the executive director, EPA [ United States Environmental Protection Agency (EPA) ], or local air pollution control agency.

[(2)

All wholesalers and retailers affected by §115.421(a) of this title must provide samples, without charge, upon request by representatives of the executive director, EPA, or local air pollution control agency.]

(b)

[ (3) ] The representative or inspector requesting the sample will determine the amount of coating needed to test the sample to determine compliance.

[(b)

For Gregg, Nueces, and Victoria Counties, the following inspection requirements shall apply:]

[(1)

All surface coating processes or operations affected by §115.421(b) of this title must provide samples, without charge, upon request by representatives of the executive director, EPA, or local air pollution control agency.]

[(2)

The representative or inspector requesting the sample will determine the amount of coating needed to test the sample to determine compliance.]

§115.425.Testing Requirements.

(a)

The testing requirements for surface coating processes in [ For ] the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas and in Gregg, Nueces, and Victoria Counties are as follows [ , the following testing requirements shall apply ].

(1)

Compliance with §115.421 [ §115.421(a) ] of this title (relating to Emission Specifications) shall be determined by applying the following test methods, as appropriate , except as specified in paragraph (5) of this section. Where a test method also inadvertently measures compounds that are exempt solvent, an owner or operator may exclude these exempt solvents when determining compliance with an emission standard :

(A)-(B)

(No change.)

(C)

EPA [ United States Environmental Protection Agency (EPA) ] guidelines series document "Procedures for Certifying Quantity of Volatile Organic Compounds (VOC) Emitted by Paint, Ink, and Other Coatings," EPA-450/3-84-019, as in effect December, 1984;

(D)

additional test procedures described in 40 Code of Federal Regulations (CFR) § 60.446; or

(E)

(No change.)

(2)

Compliance with §115.423(3) [ §115.423(a)(3) ] of this title (relating to Alternate Control Requirements) shall be determined by applying the following test methods, as appropriate:

(A)-(C)

(No change.)

(D)

additional performance test procedures described in 40 CFR [ Code of Federal Regulations ] § 60.044; or

(E)

(No change.)

(3)

Compliance with the alternative emission limits in §115.421(a)(8)(A) of this title [ (relating to Emission Specifications) ] shall be determined by applying the following test methods, as appropriate:

(A)

(No change.)

(B)

The procedure contained in this paragraph for determining daily compliance with the alternative emission limitation in §115.421(a)(8)(A) of this title [ (relating to Emission Specifications) ] for final repair. Calculation of occurrence weighted average for each combination of repair coatings (primer, specific basecoat, clearcoat) shall be determined by the following procedure.

(i)-(ii)

(No change.)

(iii)

The occurrence weighted average (Q) in pounds of VOC [ volatile organic compound (VOC) ] per gallon of coating (minus water and exempt solvents) as applied for each potential combination of repair coatings is calculated according to paragraph (4) of this section [ as follows ].

Figure: 30 TAC §115.425[ (a) ](3)(B)(iii)

(4)

In the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas, surface coating processes subject to §115.423(3) of this title shall measure the [ The ] capture efficiency [ shall be measured ] using applicable procedures outlined in 40 CFR [ Code of Federal Regulations (CFR), ] Part 52.741, Subpart O, Appendix B. These procedures are: Procedure T--Criteria for and Verification of a Permanent or Temporary Total Enclosure; Procedure L-- VOC [ Volatile Organic Compound (VOC) ] Input; Procedure G.2--Captured VOC Emissions (Dilution Technique); Procedure F.1--Fugitive VOC Emissions from Temporary Enclosures; and Procedure F.2--Fugitive VOC Emissions from Building Enclosures.

(A)

Exemptions [ The following are exemptions ] to capture efficiency testing requirements:

(i)

(No change.)

(ii)

If a source uses a control device designed to collect and recover VOC (e.g., carbon adsorption system [ absorber ]), an explicit measurement of capture efficiency is not necessary if the following conditions are met. The overall control of the system can be determined by directly comparing the input liquid VOC to the recovered liquid VOC. The general procedure for use in this situation is given in 40 CFR §60.433, with the following additional restrictions.

(I)

The source must be able to equate solvent usage with solvent recovery on a 24-hour (daily) basis, rather than a 30-day weighted average. This must be done within 72 hours following each 24-hour period of the 30-day period .

(II)

(No change.)

(B)

(No change.)

(C)

The following conditions must be met in measuring capture efficiency : [ . ]

(i)-(ii)

(No change.)

(iii)

During an initial pretest meeting, the executive director [ Texas Air Control Board (TACB) ] and the source owner or operator shall identify those operating parameters which shall be monitored to ensure that capture efficiency does not change significantly over time. These parameters shall be monitored and recorded initially during the capture efficiency testing and thereafter during facility operation. The executive director [ TACB ] may require a new capture efficiency test if the operating parameter values change significantly from those recorded during the initial capture efficiency test.

(5)

The following additional testing requirements apply to each aerospace vehicle or component coating facility subject to §115.421(a)(11) or (b)(10) of this title.

(A)

For coatings which are not waterborne (water-reducible), determine the VOC content of each formulation (less water and less exempt solvents) as applied using manufacturer's supplied data or Method 24 of 40 CFR 60, Appendix A. If there is a discrepancy between the manufacturer's formulation data and the results of the Method 24 analysis, compliance shall be based on the results from the Method 24 analysis. For water-borne (water-reducible) coatings, manufacturer's supplied data alone can be used to determine the VOC content of each formulation.

(B)

For aqueous and semiaqueous cleaning solvents, manufacturers' supplied data shall be used to determine the water content.

(C)

For hand-wipe cleaning solvents, manufacturers' supplied data or standard engineering reference texts or other equivalent methods shall be used to determine the vapor pressure or VOC composite vapor pressure for blended cleaning solvents.

(D)

Except for specialty coatings, compliance with the test method requirements of 40 CFR §63.750, (National Emission Standards for Aerospace Manufacturing and Rework Facilities), is considered to represent compliance with the requirements of this section (relating to Testing Requirements).

(6)

Test methods other than those specified in paragraphs (1)-(5) of this section may be used if validated by 40 CFR 63, Appendix A, Test Method 301. For the purposes of this paragraph, substitute "executive director" each place that Test Method 301 references "administrator."

[(b)

For Gregg, Nueces, and Victoria Counties, the following testing requirements shall apply.]

[(1)

Compliance with §115.421(b) of this title shall be determined by applying the following test methods, as appropriate:]

[(A)

Test Method 24 (40 CFR 60, Appendix A) with a one-hour bake;]

[(B)

ASTM Test Methods D 1186-06.01, D 1200-06.01, D 3794-06.01, D 2832-69, D 1644-75, and D 3960-81;]

[(C)

EPA guidelines series document "Procedures for Certifying Quantity of Volatile Organic Compounds Emitted by Paint, Ink, and Other Coatings," EPA-450/3-84-019, as in effect December, 1984;]

[(D)

additional test procedures described in 40 CFR 60.446; or]

[(E)

minor modifications to these test methods approved by the executive director.]

[(2)

Compliance with §115.423(b)(3) of this title (relating to Alternate Control Requirements) shall be determined by applying the following test methods, as appropriate:]

[(A)

Test Methods 1-4 (40 CFR 60, Appendix A) for determining flow rates, as necessary;]

[(B)

Test Method 25 (40 CFR 60, Appendix A) for determining total gaseous nonmethane organic emissions as carbon;]

[(C)

Test Method 25A or 25B (40 CFR 60, Appendix A) for determining total gaseous organic concentrations using flame ionization or nondispersive infrared analysis;]

[(D)

additional performance test procedures described in 40 CFR 60.444; or]

[(E)

minor modifications to these test methods approved by the executive director.]

§115.426.Monitoring and Recordkeeping Requirements.

[ (a) ]

The following recordkeeping requirements apply to the owner or operator of each surface coating process in [ For ] the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas and in Gregg, Nueces, and Victoria Counties [ , the following recordkeeping requirements shall apply ]:

(1)

The owner or operator [ Any person affected by §115.421(a) of this title (relating to Emission Specifications) ] shall satisfy the following recordkeeping requirements.

(A)

(No change.)

(B)

Records shall be maintained of the quantity and type of each coating and solvent consumed during the specified averaging period if any of the coatings, as delivered to the coating application system, exceed the applicable control limits. Such records shall be sufficient to calculate the applicable weighted average of VOC for all coatings.

(i)-(ii)

(No change.)

(iii)

As an alternative to the recordkeeping requirements of this subparagraph, any surface coating operation that qualifies for exemption under §115.427(a)(3)(C) of this title (relating to Exemptions) shall maintain records of total gallons of coating and solvent used in each month, and total gallons of coating and solvent used in the previous 12 months.

(C)

Records shall be maintained of any testing conducted at an affected facility in accordance with the provisions specified in §115.425 [ §115.425(a)(1) ] of this title (relating to Testing Requirements).

(D)

Records required by subparagraphs (A)-(C) of this paragraph shall be maintained for at least two years and shall be made available upon request by representatives of the executive director, EPA [ United States Environmental Protection Agency (EPA) ], or any local air pollution control agency.

(2)

The owner or operator of any surface coating facility which utilizes a vapor control [ recovery ] system approved by the executive director in accordance with §115.423(3) [ §115.423(a)(3) ] of this title (relating to Alternate Control Requirements) shall:

(A)

install and maintain monitors to accurately measure and record operational parameters of all required control devices, as necessary, to ensure the proper functioning of those devices in accordance with design specifications, including:

(i)-(iii)

(No change.)

(iv)

appropriate operating parameters for vapor control systems other than those specified in clauses (i)-(iii) of this subparagraph;

[(iv)

the dates and reasons for any maintenance and repair of the required control devices and the estimated quantity and duration of VOC emissions during such activities;]

(B)

maintain records of any testing conducted [ at an affected facility ] in accordance with the provisions specified in §115.425(2) [ §115.425(a)(2) ] of this title [ (relating to Testing Requirements) ]; and

(C)

(No change.)

(3)

The owner or operator shall maintain, on file, the capture efficiency protocol submitted under §115.425(4) [ §115.425(a)(4) ] of this title [ (relating to Testing Requirements) ]. The owner or operator shall submit all results of the test methods and capture efficiency protocols to the executive director [ TACB ] within 60 days of the actual test date. The [ source ] owner or operator shall maintain records of the capture efficiency operating parameter values on site for a minimum of one year. If any changes are made to capture or control equipment, the owner or operator is required to notify the executive director in writing within 30 days of these changes and a new capture efficiency and/or control device destruction or removal efficiency test may be required.

(4)

Records shall be maintained sufficient to document the applicability of the conditions for exemptions referenced in §115.427 [ §115.427(a) ] of this title [ (relating to Exemptions) ].

(5)

The following additional requirements apply to each aerospace vehicle or component coating process subject to §115.421(a)(11) or (b)(10) of this title. The owner or operator shall:

(A)

for coatings:

(i)

maintain a current list of coatings in use with category and VOC content as applied; and

(ii)

record coating usage on an annual basis;

(B)

for aqueous and semiaqueous hand-wipe cleaning solvents, maintain a list of materials used with corresponding water contents;

(C)

for vapor pressure compliant hand-wipe cleaning solvents:

(i)

maintain a current list of cleaning solvents in use with their respective vapor pressures or, for blended solvents, VOC composite vapor pressures; and

(ii)

maintain a record cleaning solvent usage on an annual basis;

(D)

for cleaning solvents with a vapor pressure greater than 45 millimeters of Mercury used in exempt hand-wipe cleaning operations:

(i)

maintain a list of exempt hand-wipe cleaning processes;

(ii)

maintain a record cleaning solvent usage on an annual basis.

(6)

Except for specialty coatings, compliance with the recordkeeping requirements of 40 CFR §63.752, (National Emission Standards for Aerospace Manufacturing and Rework Facilities), is considered to represent compliance with the requirements of this section (relating to Monitoring and Recordkeeping Requirements).

[(b)

For Gregg, Nueces, and Victoria Counties, the following recordkeeping requirements shall apply.]

[(1)

Any person affected by §115.421(b) of this title shall satisfy the following recordkeeping requirements.]

[(A)

A material data sheet shall be maintained which documents the VOC content, composition, solids content, solvent density, and other relevant information regarding each coating and solvent available for use in the affected surface coating processes sufficient to determine continuous compliance with applicable control limits.]

[(B)

Records shall be maintained of the quantity and type of each coating and solvent consumed during the specified averaging period if any of the coatings, as delivered to the coating application system, exceed the applicable control limits. Such records shall be sufficient to calculate the applicable weighted average of VOC for all coatings.]

[ (C)

Records shall be maintained of any testing conducted at an affected facility in accordance with the provisions specified in §115.425(b)(1) of this title (relating to Testing Requirements).]

[(D)

Records required by subparagraphs (A)-(C) of this paragraph shall be maintained for at least two years and shall be made available upon request by representatives of the executive director, EPA, or local air pollution control agency.]

[(2)

The owner or operator of any surface coating facility which utilizes a vapor recovery system approved by the executive director in accordance with §115.423(b)(3) of this title shall:]

[(A)

install and maintain monitors to accurately measure and record operational parameters of all required control devices as necessary to ensure the proper functioning of those devices in accordance with design specifications; including]

[(i)

continuous monitoring of the exhaust gas temperature immediately downstream of direct-flame incinerators and/or the gas temperature immediately upstream and downstream of any catalyst bed;]

[(ii)

the total amount of VOC recovered by carbon adsorption or other solvent recovery systems during a calendar month;]

[(iii)

continuous monitoring of carbon adsorption bed exhaust; and]

[(iv)

the dates and reasons for any maintenance and repair of the required control devices and the estimated quantity and duration of VOC emissions during such activities;]

[(B)

maintain records of any testing conducted at an affected facility in accordance with the provisions specified in §115.425(b)(2) of this title (relating to Testing Requirements); and]

[(C)

maintain all records at the affected facility for at least two years and make such records available to representatives of the executive director, EPA, or local air pollution control agency, upon request.]

[(3)

Records shall be maintained sufficient to document the applicability of the conditions for exemptions referenced in §115.427(b) of this title (relating to Exemptions).]

§115.427.Exemptions.

(a)

For the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas, the following exemptions shall apply:

(1)

The following coating operations are exempt from [ the application of ] §115.421(a)(9) of this title (relating to Emission Specifications):

(A)

exterior of fully assembled aircraft, except as required by §115.421(a)(9)(A)(v) of this title , and after December 31, 2001, all aerospace vehicles and components ;

(B)-(C)

(No change.)

(2)

The following coating operations are exempt from [ the application of ] §115.421(a)(10) of this title:

(A)-(C)

(No change.)

(3)

The following exemptions [ shall ] apply to surface coating operations, except for aircraft prime coating controlled by §115.421(a)(9)(A)(v) of this title and vehicle refinishing (body shops) controlled by §115.421(a)(8)(B) and (C) of this title.

(A)

Surface coating operations on a property which, when uncontrolled, will emit a combined weight of volatile organic compound (VOC) [ VOC ] of less than 3 pounds per hour and 15 pounds in any consecutive 24-hour period are [ shall be ] exempt from [ the provisions of ] §115.421(a) of this title and §115.423 [ §115.423(a) ] of this title (relating to Alternate Control Requirements).

(B)

Surface coating operations on a property which, when uncontrolled, will emit a combined weight of VOC of less than 100 pounds in any consecutive 24-hour period are [ shall be ] exempt from [ the provisions of ] §115.421(a) and §115.423 [ §115.423(a) ] of this title if documentation is provided to and approved by both the executive director and the EPA to demonstrate that necessary coating performance criteria cannot be achieved with coatings which satisfy applicable emission specifications and that control equipment is not technically or economically feasible.

(C)

Surface coating operations on a property for which total coating and solvent usage does not exceed 150 gallons in any consecutive 12-month period are exempt from §115.421(a) and §115.423 of this title.

(D)

[ (C) ] Mirror backing coating operations located on a property which, when uncontrolled, emit a combined weight of VOC [ volatile organic compond ] less than 25 tons in one year (based on historical coating and solvent usage) are exempt from [ the provisions of ] this division [ undesignated head concerning ] (relating to Surface Coating Processes ) .

(E)

[ (D) ] Wood furniture manufacturing facilities which are subject to and are complying with [ the requirements of ] §115.421(a)(14) of this title and §115.422(3) of this title (relating to Control Requirements) are exempt from [ the requirements of ] §115.421(a)(13) of this title. These wood furniture manufacturing facilities shall continue to comply with [ the requirements of ] §115.421(a)(13) of this title until these facilities are in compliance with [ the requirements of ] §115.421(a)(14) and §115.422(3) of this title.

(F)

[ (E) ] Wood furniture manufacturing facilities which, when uncontrolled, emit a combined weight of VOC from wood furniture manufacturing operations less than 25 tons per year are exempt from [ the requirements of ] §115.421(a)(14) and §115.422(3) of this title.

(G)

[ (F) ] Wood parts and products coating facilities in Hardin, Jefferson, and Orange Counties are exempt from [ the requirements of ] §115.421(a)(13) of this title.

(H)

[ (G) ] Shipbuilding and ship repair operations in Hardin, Jefferson, and Orange Counties which, when uncontrolled, emit a combined weight of VOC from ship and offshore oil or gas drilling platform surface coating operations less than 100 tons per year are exempt from [ the requirements of ] §115.421(a)(15) and §115.422(4) of this title.

(I)

[ (H) ] Shipbuilding and ship repair operations in Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties which, when uncontrolled, emit a combined weight of VOC from ship and offshore oil or gas drilling platform surface coating operations less than 25 tons per year are exempt from [ the requirements of ] §115.421(a)(15) and §115.422(4) of this title.

(J)

[ (I) ] Aerosol coatings (spray paint) [ Coatings applied with hand-held, nonrefillable, aerosol containers ("spray paint") ] are exempt from [ the requirements of ] this division [ (relating to Surface Coating Processes) ].

(K)

The following activities where cleaning and coating of aerospace vehicles or components may take place: research and development, quality control, laboratory testing, and electronic parts and assemblies; except for cleaning and coating of completed assemblies.

[(4)

The following architectural coatings are exempt from the provisions of §115.421(a)(11) of this title:]

[(A)

paints sold in containers of one quart or less;]

[(B)

paints used on roadways, pavement, swimming pools, and similar surfaces;]

[(C)

concentrated color additives;]

[(D)

architectural coatings sold for shipment outside of the Beaumont/Port Arthur, Dallas/Fort Worth, El Paso, and Houston/Galveston areas or for shipment to other manufacturers for repackaging; and]

[(E)

in ozone nonattainment counties other than Dallas and Tarrant, architectural coatings manufactured before July 31, 1992.]

(4)

[ (5) ] Vehicle refinishing (body shops) in Hardin, Jefferson, and Orange Counties are exempt from [ the requirements of ] §115.421(a)(8)(B) and §115.422(1) and (2) of this title [ (relating to Emission Specifications; and Control Requirements) ].

(5)

[ (6) ] The coating [ repair and recoating ] of vehicles at in-house (fleet) vehicle refinishing operations and the coating [ repair and recoating ] of vehicles by private individuals are exempt from [ the requirements of ] §115.421(a)(8)(B) and §115.422(1) and (2) of this title. This exemption is not applicable if the coating [ repair or recoating ] of a vehicle by a private individual occurs at a commercial operation.

(b)

For Gregg, Nueces, and Victoria Counties, the following exemptions shall apply:

(1)

Surface coating operations located at any property [ facility ] which , when uncontrolled , will emit a combined weight of VOC less than 550 pounds (249.5 kg) in any continuous 24-hour period are exempt from [ the provisions of ] §115.421(b) of this title [ relating to Emission Specifications) ].

(2)

The following coating operations are exempt from [ the application of ] §115.421(b)(8) of this title:

(A)

exterior of fully assembled aircraft , and after December 31, 2001, all aerospace vehicles and components ;

(B)-(D)

(No change.)

(3)

The following coating operations are exempt from [ the application of ] §115.421(b)(9) of this title:

(A)-(C)

(No change.)

(4)

Aerosol coatings (spray paint) [ Coatings applied with hand-held, nonrefillable, aerosol containers ("spray paint") ] are exempt from [ the requirements of ] this division [ (relating to Surface Coating Processes) ].

§115.429.Counties and Compliance Schedules.

(a)

All wood furniture manufacturing facilities subject to §115.421(a)(14) of this title (relating to Emission Specifications) in Brazoria, Chambers, Collin, Dallas, Denton, El Paso, Fort Bend, Galveston, Hardin, Harris, Jefferson, Liberty, Montgomery, Orange, Tarrant, and Waller Counties shall be in compliance with §115.421(a)(14) of this title and §115.422(3) of this title (relating to Control Requirements) as soon as practicable, but no later than December 31, 1999. All wood furniture manufacturing facilities subject to §115.421(a)(14) of this title in Brazoria, Chambers, Collin, Dallas, Denton, El Paso, Fort Bend, Galveston, Harris, Liberty, Montgomery, Tarrant, and Waller Counties shall continue to comply with [ the requirements of ] §115.421(a)(13) of this title until these coating operations are in compliance with [ the requirements of ] §115.421(a)(14) and §115.422(3) of this title.

(b)

(No change.)

(c)

All aerospace vehicle and component surface coating processes subject to §§115.421(a)(11) or (b)(10), 115.422(5), 115.425(5), and 115.426(5) of this title (relating to Emission Specifications; Control Requirements; Testing Requirements; and Monitoring and Recordkeeping Requirements) in Brazoria, Chambers, Collin, Dallas, Denton, El Paso, Fort Bend, Galveston, Gregg, Hardin, Harris, Jefferson, Liberty, Montgomery, Nueces, Orange, Tarrant, Victoria, and Waller Counties shall be in compliance with these sections as soon as practicable, but no later than December 31, 2001. These aerospace vehicle and component surface coating processes shall continue to comply with §115.421(a)(9) or (b)(8) of this title until these coating processes are in compliance with §§115.421(a)(11) or (b)(10), 115.422(5), 115.425(5), and 115.426(5) of this title.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002114

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: May 8, 2000

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


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

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §116.10, General Definitions; §116.110, Applicability; §116.116, Changes to Facilities; §116.603, Public Participation in Issuance of Standard Permits; §116.620, Installation and/or Modification of Oil and Gas Facilities; §116.621, Municipal Solid Waste Landfills; §116.710, Applicability; §116.715, General and Special Conditions; §116.721; Amendments and Alterations; §116.722, Distance Limitations; §116.750, Flexible Permit Fee; and new §116.119, De Minimis Facilities or Sources; §116.1010, Applicability; §116.1011, Multiple Plant Permit Application; §116.1014, Application Review Schedule; §116.1015, General and Special Conditions; §116.1020, Modifications; §116.1021, Amendments and Alterations; §116.1040, Multiple Plant Permit Public Notice; §116.1041, Multiple Plant Permit Public Comment Procedures; §116.1050, Multiple Plant Permit Application Fee; §116.1060, Multiple Plant Permit Renewal; and §116.1070, Delegation. Sections 116.10, 116.110, 116.116, 116.603, 116.620, 116.621, 116.710, 116.715, 116.722, and 116.750 are proposed as revisions to the state implementation plan.

BACKGROUND AND SUMMARY OF THE FACTUAL BASE FOR THE PROPOSED RULES

The 76th Legislature passed Senate Bill (SB) 766 in 1999. In general, SB 766 recategorized the new source review authorizations under the Texas Clean Air Act (TCAA) and created the new program for the voluntary permitting of grandfathered facilities. Prior to the revisions by SB 766, the TCAA authorized the commission to issue permits for the construction or modification of facilities that will emit air contaminants; standard permits adopted by rule; and exemptions from permitting, also adopted by rule. SB 766 modified this structure by authorizing the commission to issue standard permits using a process that does not require each standard permit to be in a rule. SB 766 provided a new name, permits by rule, for authorizations of certain types of facilities which would not make a significant contribution of air contaminants to the atmosphere. Exemptions from permitting now authorize only changes at insignificant facilities. Finally, the commission is now authorized to develop criteria for facilities that emit a de minimis amount of air contaminants that do not need preconstruction authorization. Within the category of permits, SB 766 created two new permitting options: the voluntary emission reduction permit (VERP) program for permitting of grandfathered facilities, and the multiple plant permit (MPP). SB 766 also amended TCAA, §382.0621(d) to require the increase of emission fees for the largest grandfathered facilities which do not have a permit application pending on or after September 1, 2001.

The commission is implementing this legislation in two phases. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999. Included in the first phase were the VERP program and the new standard permit issuance procedures.

This proposal implements the elements of SB 766 relating to MPPs and de minimis criteria, and administrative revisions relating to exemptions from permitting and permits by rule. This proposal also corrects several typographical errors and incorrect references. Other elements of SB 766, including exemptions from permitting, permits by rule, and emission fees are being addressed in concurrent proposals for new and amended sections in 30 TAC Chapter 101 and Chapter 106. TCAA, §382.051(b)(6) allows the commission to issue an MPP for existing facilities at multiple locations subject to TCAA, §382.0518, Preconstruction Permit, or §382.0519, Voluntary Emissions Reduction Permit. TCAA, §382.05194, Multiple Plant Permit, provides for an MPP, which is a single permit for multiple plant sites that are owned or operated by the same person, if certain emission limits and public participation criteria are met. TCAA, §382.05101, De Minimis Air Contaminants, allows the commission to develop, by rule, the criteria for establishing a de minimis level of air contaminants for facilities or groups of facilities below which a permit under TCAA, §382.0518 or §382.0519, a standard permit under TCAA, §382.05195, or a Permit by Rule under TCAA, §382.05196 is not required. Essentially, the commission may establish a level of emissions of air contaminants for certain facilities or sources below which no preconstruction authorization is needed.

SECTION BY SECTION DISCUSSION

The proposed changes to §116.10 would modify existing definitions to reflect the recategorized air quality preconstruction permitting structure of the commission and to make nonsubstantive corrections. Section 116.10(2), the definition of "Allowable emissions" would be amended to reflect the new permits by rule, to clarify that §116.10(2)(C) pertains to "qualified" grandfathered facilities, and to reflect the current nomenclature for standard permit registration. Section 116.10(5), the definition of "Federally enforceable" would be amended to include permit requirements under Subchapter C of Chapter 116 (sources of hazardous air pollutants), which was inadvertently excluded in an earlier rulemaking. Section 116.10(9), the definition of "Modification of existing facility" would be amended to reflect TCAA, §382.003(9) by including reference to the new MPP.

The proposed changes to §116.110 would include references to the new permits by rule and the new criteria for de minimis facilities or sources as mechanisms under which construction or modification of a facility can occur and remove the redundant reference to "an existing flexible permit" in §116.110(b). The amendments also add the new permit by rule to the existing prohibition on the use of Chapter 106 authorizations for construction or modification of affected sources under Subchapter C of this chapter, Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources (FCAA, §112(g), 40 CFR Part 63).

Amendments to §116.116(c)(4) and (5) would correct an incorrect reference to a section which no longer exists. The correct reference is to §116.111(a)(2)(C), which discusses best available control technology. Amendments to §116.116(d) would include the necessary references to the new permits by rule under Chapter 106, and rearranges some wording for consistency.

The proposed new §116.119 establishes the criteria under which a facility would be considered de minimis and thus would not need a preconstruction authorization. The commission considers de minimis to refer to very small additions to background concentrations of air contaminants which cause no discernable or unacceptable impact to public health and for which permitting would be an ineffective use of commission resources. There would be four options for a facility or source to be considered de minimis. First, the commission will maintain a list of categories of facilities and sources that are considered de minimis. The list will not be incorporated into the rule, but will be maintained in the commission's Office of Permitting, Remediation, and Registration in Austin with copies in each of the commission's regional offices and on the commission's home page on the World Wide Web. The draft List of De Minimis Facilities or Sources is available on the commission's web page. The commission will finalize the list upon adoption of the rule. Once the rule is adopted and the list is finalized, the commission will consider the criteria listed in the rule for amendment of the list. Any person could petition the executive director to amend the list, and the executive director would consider the following when amending the list to ensure that facilities or sources included on the list are de minimis: typical operating scenarios, typical design and location, types and rates of air contaminants emitted, engineering judgement and experience, and toxicological or health impacts. Second, facilities or sources which use no more than prescribed amounts of the following materials at a site would be considered de minimis: cleaning and stripping solvents, coatings, dyes, bleaches, fragrances, and water-based surfactants or detergents. The amounts and materials in the rule were determined by input from the commission's regional offices, that are responsible for site inspections, and by engineering and toxicological review, including, in some cases, air dispersion modeling compared with the commission's effects screening levels (ESLs), which are described as follows, using typical design, location, and emission rates of facilities or sources using the materials. Third, de minimis facilities would also include those that are located inside a building and meet established emission rate caps, without the use of a control device, for individual and multiple substances. The emission rate caps are based on ESLs compared with off-property impacts using air dispersion modeling of a very small site. ESLs are substance-specific guideline comparison values used to determine whether measured air concentrations would be expected to result in adverse health or welfare effects. Finally, an individual facility or source, or groups of facilities or sources, could also be determined by the executive director, on a case-by-case basis, to be de minimis considering: proximity to receptors, emission rates, engineering judgement and experience, and determination that no adverse toxicological effects would occur off-property. De minimis facilities or sources that are subsequently determined by the executive director to be in violation of any commission rule, permit, order, or statute would no longer be considered de minimis and would be required to obtain authorization under this chapter or under Chapter 106, Permits by Rule.

The amendment to §116.603 would also correct a reference to §39.411, Text of Public Notice, to the correct §122.506, Public Notice for General Operating Permits. The reference to the public notice procedures, for general operating permits, instead of to Chapter 39, does not reduce the amount of notice but merely clarifies the notice process to be used.

The amendments to §116.620 and §116.621 would reflect the new permits by rule and the subsequently revised title of Chapter 106.

The amendment to §116.710 would correct an incorrect reference. The correct reference is to §116.110(d), which discusses change in ownership.

Amendments to §§116.715, 116.721, and 116.750 would reflect the new permits by rule and the subsequently revised title of Chapter 106.

The amendment to §116.722 would correct an incorrect reference. The correct reference is to §116.112, which discusses distance limitations.

The proposed new §116.1010 contains conditions defining applicability for facilities eligible to be issued an MPP. TCAA, §382.051(b)(6) allows the commission to issue an MPP for existing facilities at multiple locations subject to TCAA, §382.0518, Preconstruction Permit, or §382.0519, Voluntary Emissions Reduction Permit. TCAA, §382.05194, Multiple Plant Permit, provides for an MPP which is a single permit for multiple plant sites that are owned or operated by the same person, if certain emission limits and public participation criteria are met. Consequently, to be eligible for consolidation under an MPP, the plant sites to be permitted must be owned or operated by the same person or persons under common control.

The aggregate rate of emission of air contaminants cannot exceed the total authorized in existing permits and the rate that would be authorized under any VERPs. There must also be no indication that emissions from the facilities will contravene the intent of the TCAA, including protection of the public's health and property. The MPP may not authorize emissions from any facility that would exceed that facility's highest historic annual rate or levels authorized in the most recent permit. Consistent with commission practice, the highest historic rate would be determined one of two ways: 1) using data that shows the maximum annual emission rate at which the emission unit actually operated and emitted prior to September 1, 1971 for 12 consecutive months, including any increases authorized by a permit by rule; or 2) best engineering judgement in the absence of records, i.e., using data related to emissions (e.g., production, fuel firing, throughput, sulfur content, etc.) as appropriate, which are selected by the applicant and agreed upon by the executive director, to reasonably approximate the actual annual emission rate from any operational year. The executive director will use the emission rate data to establish emission rate limitations for each facility, the sum of which would not exceed the aggregate rate of emissions of air contaminants allowed under the MPP. This would be consistent with the commission's belief that the MPP would provide a flexible mechanism for permitting grandfathered facilities at multiple sites. Applicants would have the flexibility to over-control facilities at sites where the installation of controls is the most cost-effective. Once the rates are established in an MPP, permit holders would be required to amend or alter the permit, as appropriate, to move emissions from facility to facility or site to site.

Emission control equipment may not be removed except to maintain or upgrade existing controls or to reduce the impact of emissions. Applications for an MPP would be submitted on a Form PI-1M, Multiple Plant Permit Application.

The proposed new §116.1011 would implement the requirement in TCAA, §382.05194(g) that the commission establish, by rule, the procedures for application and approval for the use of an MPP. Applications would have to include information to demonstrate that applicable conditions of §116.711, Flexible Permit Application, are met. This demonstration would ensure that any applicable federal requirements are complied with and that information is available to determine what type of monitoring or recordkeeping would be required. For grandfathered facilities that would be included in an MPP which is applied for prior to September 1, 2001, the applicant would be required to submit the information required for a VERP application under §116.811, Voluntary Emission Reduction Permit Application. For existing permitted facilities, applicants would need to provide a copy of the relevant permit. In addition, the commission would require information, as necessary, to verify that emissions of air contaminants from each facility would not adversely impact the public's health and physical property. Since the aggregate emission rate under an MPP would be determined by the sum of existing permitted emission rates and VERP emission rates, applications for grandfathered facilities filed after September 1, 2001 would need authorization under Subchapter B of this chapter prior to being included in an MPP. Finally, the applicant would be required to submit information necessary to calculate the cost of public notice under §116.1040, Multiple Plant Permit Public Notice, in order to determine the appropriate application fee under §116.1050, Multiple Plant Permit Application Fee.

The new §116.1014 would commit the commission to reviewing MPP applications in accordance with §116.614, Application Review Schedule.

The new §116.1015 would allow for the inclusion of general and special conditions in MPPs and would require permit holders to comply with those general and special conditions, including special conditions which provide emission limitations for each facility and which specify the aggregate rate of emissions of air contaminants. Permit holders would also be required to comply with any applicable conditions contained in §116.115, General and Special Conditions.

TCAA, §382.05194 contains no provisions for modification of facilities under a multiple plant permit, as "modification of existing facilities" is defined in §116.10(9), General Definitions. Therefore, the new §116.1020 requires authorization under Subchapter B of this chapter before work is begun on the construction of the modification of any facility permitted under a multiple plant permit.

The new §116.1021 provides a mechanism to amend MPPs as necessary to include revised general and special conditions that reflect changes that are modifications, changes in the method of control of emissions, or changes which will result in an increase in emissions. Permittees would submit a Form PI-1 to request an amendment, which would be subject to the review procedures referenced in §116.116(b), Changes to Facilities. An MPP alteration would be allowed in lieu of amendment for those changes which do not require an MPP amendment. Alterations which involve changes of a general or special condition, or affect control equipment performance require prior commission approval. For alterations due to other changes, the executive director would be notified within ten days of the change, unless a different time frame is specified in the MPP. Any alteration request or notification would include information necessary to demonstrate that the change does not interfere with protection of the public's health and physical property. Changes to a facility which meet an authorization under Chapter 106 would not require amendment or alteration of an MPP, as long as the aggregate emissions cap or an individual emission limitation would not be exceeded.

To implement the requirements of TCAA, §382.05194(d), the proposed new §116.1040 would require the commission to publish notice of a proposed MPP in a newspaper of general circulation in the area(s) to be affected and in the Texas Register . If the MPP will have statewide effect, the notice will be published in the daily newspaper of largest circulation in Dallas and Houston. The notice will include relevant information required by §39.411, Text of Public Notice, and will be published at least 30 days before the commission issues the MPP. Applicants must publish notice of a proposed multiple plant permit amendment consistent with §116.116(b)(4), Changes to Facilities, as multiple plant permit amendments would be reviewed under the existing procedures for permit amendments.

TCAA, §382.05194(e) requires the commission to hold a public meeting regarding proposed MPPs. Under the proposed new §116.1041, the commission would hold a public meting on the proposed MPP with notice of the meeting provided in the same notice required under §116.1040 at least 30 days before the meeting. Consistent with TCAA, §382.05194(f), the commission would respond to public comment received related to the issuance of the MPP at the same time the commission issues or denies the MPP. The response would be made available to the public and each commenter will be mailed a response. Finally, consistent with TCAA, §382.05194(h), the proposed new section also states that applications for an MPP, amendments to an MPP, or revocation of an MPP which are filed before September 1, 2001 are not subject to Texas Government Code, Chapter 2001, meaning no contested case hearing would be allowed.

The new §116.1050 would require a fee of $450 plus the estimated public notice cost for the permit for an application for an MPP. TCAA, §382.062(b) allows the commission to charge and collect a fee for MPPs. This fee would be applied toward recovering the cost of reviewing the MPP applications and the cost of publishing notice.

The new §116.1060 would require MPPs to be renewed consistent with Subchapter D of this chapter.

Consistent with TCAA, §382.05194(i), the new §116.1070 allows the commission to delegate to the executive director any authority regarding MPPs.

FISCAL NOTE

Bob Orozco, Strategic Planning and Appropriations Section, has determined that for the first five-year period the proposed new sections and amendments are in effect there will be no significant fiscal implications for the commission and other units of state and local government as a result of administration or enforcement of the proposed new sections and amendments. The proposed amendments to Chapter 116, Control of Air Pollution By Permits For New Construction Or Modification, would implement certain provisions of SB 766, 76th Legislature, 1999, relating to the issuance of certain permits for the emission of air contaminants. The commission is implementing this legislation in two phases. The first phase of the implementation of SB 766 was adopted by the commission on December 16, 1999. Included in the first phase were the VERP program and the new standard permit issuance procedures. These proposed amendments are the second phase of the implementation of SB 766. Other elements of SB 766 are addressed in concurrent proposals for new and amended sections in Chapters 101 and 106.

The proposed amendments would implement elements of SB 766 relating to the new MPPs, the new criteria for de minimis facilities/sources, the new nomenclature for referring to permits by rule and exemptions from permitting under Chapter 106, and administrative changes and corrections. The proposed amendments allow the commission to issue an MPP for existing facilities at multiple locations subject to the preconstruction permit or VERP provisions of the TCAA. An MPP is a single permit for multiple plant sites that are owned or operated by the same person or persons under common control, that may be issued if certain emission limits and public participation criteria are met. SB 766 also authorized the commission to establish a de minimis level of emissions of air contaminants for certain facilities or sources below which no authorization is required. A new section in Chapter 116 relating to De Minimis Air Contaminants contains the criteria for establishing a minimum level of air contaminants for facilities or groups of facilities below which a permit, a standard permit, or a permit by rule under TCAA is not required.

The purpose of the proposed amendments is to provide an additional permitting option under the MPP and to remove the need for preconstruction or other authorizations for de minimis facilities or sources. These new sections and amendments are intended to increase permitting options and flexibility, as well as make administrative changes and corrections in Chapter 116. The proposed amendments do not require additional emission controls, and the commission does not anticipate significant additional costs for persons or businesses applying the provisions of the proposed amendments. Owners or operators of grandfathered facilities that do not apply for an MPP by September 1, 2001 would not be eligible to consolidate the facility under an MPP unless the facility was permitted under a new source review permit. However, participation in the MPP program is voluntary.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed new sections and amendments are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be a potential reduction of air contaminants and an incentive for owners or operators of grandfathered facilities to obtain a permit under the MPP program, by September 1, 2001. Existing grandfathered facilities that are not permitted by this date would have to obtain a new source review permit in order to be eligible for consolidation under an MPP. The new de minimis category could encourage reductions in air contaminants in order to qualify for exclusion from permitting requirements.

These new sections and amendments are intended to increase permitting options and flexibility, as well as make administrative changes and corrections. The MPP and de minimis options are voluntary. Controls, consistent with the VERP program, would be required for inclusion of grandfathered facilities in an MPP. The cost of VERP controls was discussed in the Fiscal Note section of the proposed Chapter 116 preamble during the first phase of the SB 766 implementation (September 10, 1999 issue of the Texas Register (24 TexReg 78148)). The MPP is an additional option that essentially provides for flexibility in permitting grandfathered facilities, and the commission does not expect any significant costs for persons or businesses applying the provisions of the proposed amendments. Owners or operators of grandfathered facilities that do not apply for an MPP by September 1, 2001 would not be eligible to consolidate the facility under an MPP unless the facility was permitted under a new source review permit. However, participation in the MPP program is voluntary.

SMALL AND MICRO-BUSINESS ANALYSES

No significant adverse effects are anticipated to small or micro-businesses as a result of implementing these new amendments. It is estimated that from 150 to 200 small or micro-businesses in Texas have grandfathered facilities. It is anticipated that none of these businesses are candidates for the MPP since most small businesses only have one site. It is anticipated that some small or micro- businesses will qualify as a de minimis facility. The proposed new sections concerning de minimis facilities or sources will remove the need for authorizations for these facilities, which could result in positive fiscal implications for some small and micro-businesses.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking does not meet the definition of a "major environmental rule" as defined in that statute. "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. These amendments provide additional permitting options and remove the need for authorizations for de minimis sources. The proposed MPP and de minimis options in the proposed amendments are voluntary and the proposed amendments do not authorize any new emissions that will have an adverse effect on the environment. In addition, the proposed amendments do not impose any additional regulatory requirements beyond those that currently exist. These new sections and amendments do not meet the definition of "major environmental rule" because there is no adverse material effect on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, §2001.0225(a) only applies to a major environmental rule, the result of which is to: 1. exceed a standard set by federal law, unless the rule is specifically required by state law; 2. exceed an express requirement of state law, unless the rule is specifically required by federal law; 3. exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4. adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of a "major environmental rule." Specifically, these new sections and amendments do not exceed a standard set by state or federal law, but are proposed under the Texas Health and Safety Code, concerning De Minimis Air Contaminants; and Multiple Plant Permits. The proposed amendments do not exceed a requirement of a delegation agreement and were not developed solely under the general powers of the agency, but were specifically developed to implement the provisions of SB 766. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ANALYSIS

The commission has prepared a takings impact assessment for these proposed rules under Texas Government Code, §2007.043. The following is a summary of that assessment. These proposed rules expand permitting and authorization options for new and existing facilities. The proposed rules do not restrict or limit an owner's right to property that would otherwise exist in the absence of governmental action and therefore do not constitute a takings.

The proposed amendments concerning de minimis criteria, establish parameters for emissions, below which, a facility or site would be considered de minimis and thus not required to obtain preconstruction authorization. The new procedures for obtaining multiple plant permit provide an additional option for permitting of grandfathered facilities. The corrections to cross-references and the insertion of the new term "permits by rule" are administrative in nature. These actions are reasonably taken to fulfill an obligation mandated under state law.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has 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's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with Texas Coastal Management Program. 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 action for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council. For the proposed new sections relating to de minimis, multiple plant permits, and permits by rule, the commission has determined that the rules are consistent with the applicable CMP goal expressed in 31 TAC §501.12(1) of protecting and preserving the quality and values of coastal natural resource areas, and the policy in 31 TAC §501.14(q), which requires that the commission protect air quality in coastal areas. This action does not authorize any new emissions. This action is consistent with Title 40 Code of Federal Regulations because it does not authorize an emission rate in excess of that specified by federal requirements. Interested persons may submit comments during the public comment period on the consistency of the proposed rules with the CMP goals and policies.

PUBLIC HEARING

The commission will hold a public hearing on this proposal in Austin at 10:00 a.m. on May 4, 2000 in Room 201A of Texas Natural Resource Conservation Commission Building B, located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not be permitted during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearings and will answer questions before and after the hearing.

SUBMITTAL OF COMMENTS

Comments may be submitted to Lisa Martin, MC 205, Office of Environmental Policy, Analysis, and Assessment, Texas Natural Resource Conservation Commission, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999- 029B-116-AI. Comments must be received by 5:00 p.m., May 8, 2000. For further information, please contact Beecher Cameron, Policy and Regulations Division, (512) 239-1495.

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

Subchapter A. DEFINITIONS

30 TAC §116.10

STATUTORY AUTHORITY

The amendment is proposed under Texas Health and Safety Code, TCAA, §382.05101, which authorizes the commission to establish a de minimis level of air contaminants for sources that does not require preconstruction authorization; and TCAA, §382.051 and §382.05194, which authorize the commission to issue multiple plant permits and to adopt rules governing their issuance. The amendment is also proposed under Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions; §382.0514, which authorizes the commission to require sampling and monitoring; §382.0515, which requires permit applications which demonstrate compliance with state and federal statutes and rules; §382.0518, which requires permits to prior to construction or modification; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere; §382.061, which authorizes the commission to delegate permitting authority to the executive director; §382.062, which authorizes the commission to adopt, charge, and collect fees for permits; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.

The proposed amendment implements §382.05101, concerning De Minimis Air Contaminants; §382.051, concerning Permitting Authority of Commission; Rules; §382.05194, concerning Multiple Plant Permit; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.0513, concerning Permit Conditions; §382.0514, concerning Sampling, Monitoring, and Certification; §382.0515, concerning Application for Permit; §382.0518, concerning Preconstruction Permit; §382.057, concerning Exemption; §382.05196, concerning Permits by Rule; §382.061, concerning Delegation of Powers and Duties; §382.062, concerning Application, Permit, and Inspection Fees; and Texas Water Code, §5.122, concerning Delegation of Uncontested Matters to the Executive Director.

§116.10. General Definitions.

Unless specifically defined in the 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. In addition to the terms which are defined by the TCAA, and in §101.1 of this title (relating to Definitions), the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

(No change.)

(2)

Allowable emissions - The authorized rate of emissions of an air contaminant from a facility as determined in accordance with this section. This rate cannot exceed any applicable state or federal emissions limitation. This definition applies only when determining whether there has been a net increase in allowable emissions under §116.116(e) of this title.

(A)

Permitted facility - For a facility with a [ preconstruction ] permit under this chapter, the allowable emissions shall be any emission limit established in the permit on a MAERT and any emission limit contained in representations in the permit application which was relied upon in issuing the permit, plus any allowable emissions authorized [ by an exemption ] under Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting ]).

(B)

Facility permitted by rule [ Exempted facility ] - For a facility operating under Chapter 106 of this title, the allowable emissions shall be the least of the emissions rate allowed in Chapter 106, Subchapter A of this title (relating to General Requirements), the emissions rate specified in the applicable permit by rule [ exemption ], or the federally enforceable emission rate established on a PI-8 form.

(C)

Qualified grandfathered [ Grandfathered facility ] - For a qualified grandfathered facility, the allowable emissions shall be the maximum annual emissions rate after the implementation of any air pollution control methods to become a qualified facility, plus 10% of the maximum annual emissions rate prior to the implementation of such control methods, but in no case shall the allowable emissions be greater than the maximum annual emissions rate prior to the implementation of such control methods. The maximum annual emissions rate is the emissions rate at the maximum annual capacity according to the physical or operational design of the facility, data from actual operations over a period of no more than 12 months that demonstrates the maximum annual capacity, or other information that demonstrates the maximum annual capacity. Except where a grandfathered facility has been modified, the allowable emissions for the modification shall be determined as a permitted facility.

(D)

Standard permit facility - For a facility authorized by standard permit, other than §116.617(2) of this title (relating to Standard Permits for Pollution Control Projects), the allowable emissions shall be the maximum emissions rate represented in the registration to use [ for ] the standard permit.

(E)-(F)

(No change.)

(3)-(4)

(No change.)

(5)

Federally enforceable - All limitations and conditions which are enforceable by the EPA, including:

(A)-(C)

(No change.)

(D)

any permit requirements established under 40 CFR §52.21; [ or ]

(E)

any permit requirements established under regulations approved under 40 CFR Part 51, Subpart I, including permits issued under the EPA-approved program that is incorporated into the SIP and that expressly requires adherence to any permit issued under such program ; or [ . ]

(F)

any permit requirements established under Subchapter C of this chapter (relating to Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources (FCAA, §112(g), 40 CFR Part 63)).

(6)-(8)

(No change.)

(9)

Modification of existing facility - Any physical change in, or change in the method of operation of, a facility in a manner that increases the amount of any air contaminant emitted by the facility into the atmosphere or that results in the emission of any air contaminant not previously emitted. The term does not include:

(A)-(E)

(No change.)

(F)

a physical change in, or change in the method of operation of, a facility where the change is within the scope of a flexible permit or a multiple plant permit ; or

(G)

(No change.)

(10)-(15)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002145

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter B. NEW SOURCE REVIEW PERMITS

1. PERMIT APPLICATION

30 TAC §116.110, 116.116, 116.119

STATUTORY AUTHORITY

The amendments and new section are proposed under Texas Health and Safety Code, TCAA, §382.05101, which authorizes the commission to establish a de minimis level of air contaminants for sources that does not require pre-construction authorization; and TCAA, §382.051 and 382.05194, which authorize the commission to issue multiple plant permits and to adopt rules governing their issuance. The amendments and new section are also proposed under Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions; §382.0514, which authorizes the commission to require sampling and monitoring; §382.0515, which requires permit applications which demonstrate compliance with state and federal statutes and rules; §382.0518, which requires permits to prior to construction or modification; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere §382.061, which authorizes the commission to delegate permitting authority to the executive director; §382.062, which authorizes the commission to adopt, charge, and collect fees for permits; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.

The proposed amendments and new section implement §382.05101, concerning De Minimis Air Contaminants; §382.051, concerning Permitting Authority of Commission; Rules; §382.05194, concerning Multiple Plant Permit; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.0513, concerning Permit Conditions; §382.0514, concerning Sampling, Monitoring, and Certification; §382.0515, concerning Application for Permit; §382.0518, concerning Preconstruction Permit; §382.057, concerning Exemption; §382.05196, concerning Permits by Rule; §382.061, concerning Delegation of Powers and Duties; §382.062, concerning Application, Permit, and Inspection Fees; and Texas Water Code, §5.122, concerning Delegation of Uncontested Matters to the Executive Director.

§116.110. Applicability.

(a)

Permit to construct. Before any actual work is begun on the facility, any person who plans to construct any new facility or to engage in the modification of any existing facility which may emit air contaminants into the air of this state shall either:

(1)

(No change.)

(2)

satisfy the conditions for a standard permit under the requirements in:

(A)

(No change.)

(B)

Chapter 321, Subchapter B [ K ] of this title (relating to Concentrated Animal Feeding Operations);

(C)-(D)

(No change.)

(3)

satisfy the conditions for a flexible permit under the requirements in Subchapter G of this chapter (relating to Flexible Permits); [ or ]

(4)

satisfy the conditions for facilities permitted by rule [ exempt facilities ] under Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting. ]) ; or

(5)

satisfy the criteria for a de minimis facility or source under §116.119 of this title (relating to De Minimis Facilities or Sources).

(b)

Modifications to existing permitted facilities. Modifications to existing permitted facilities may be handled through the amendment of an existing permit [ or an existing flexible permit ].

(c)

Exclusion. Owners or operators of affected sources (as defined in §116.15(1) of this title (relating to Section 112(g) Definitions)) subject to Subchapter C of this chapter (relating to Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources (FCAA, §112(g), 40 CFR Part 63)) are not authorized to use:

(1)

a permit by rule [ an exemption ] under Chapter 106 of this title;

(2)-(3)

(No change.)

(d)-(f)

(No change.)

§116.116. Changes to Facilities.

(a)-(b)

(No change.)

(c)

Permit alteration.

(1)-(3)

(No change.)

(4)

A request for permit alteration shall include information sufficient to demonstrate that the change does not interfere with the owner or operator's previous demonstrations of compliance with the requirements of §116.111(a)(2)(C) [ §116.111(3) ] of this title.

(5)

Permit alterations are not subject to the requirements of §116.111(a)(2)(C) [ §116.111(3) ] of this title.

(d)

Permits by rule [ and exemptions from permitting ] under Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting ]) in lieu of permit amendment or alteration.

(1)

(No change.)

(2)

All [ exempted ] changes authorized under Chapter 106 of this title to [ , and permits by rule associated with, ] a permitted facility shall be incorporated into that facility's permit when the permit is amended or renewed.

(e)

Changes to qualified facilities.

(1)-(4)

(No change.)

(5)

As used in this subsection, the term "physical and operational change" does not include:

(A)

(No change.)

(B)

changes to procedures regarding monitoring, determination of emissions , and recordkeeping that are required by a permit.

(6)-(8)

(No change.)

(f)

(No change.)

§116.119. De Minimis Facilities or Sources.

(a)

Facilities or sources that meet the conditions of one or more of the paragraphs of this subsection are considered by the commission to be de minimis, which means that registration or authorization prior to construction is not required:

(1)

categories of facilities or sources included on the list entitled "De Minimis Facilities or Sources;"

(2)

facilities or sources at a site which, in combination, use the following materials at no more than the rate prescribed in subparagraphs (A)-(F) of this paragraph:

(A)

cleaning and stripping solvents, 50 gallons per year;

(B)

coatings (excluding plating materials), 100 gallons per year;

(C)

dyes, 1,000 pounds per year;

(D)

bleaches, 1,000 gallons per year;

(E)

fragrances (excluding odorants), 250 gallons per year;

(F)

water-based surfactants/detergents, 2,500 gallons per year;

(3)

facilities or sources located inside a building at a site which meet the following emission rate caps based on effects screening levels (ESLs) without the addition of control devices, as defined in §101.1 of this title (relating to Definitions).

Figure: 30 TAC §116.119(a)(3)

(4)

any individual facility, source, or group of facilities or sources which the executive director determines to be de minimis based upon:

(A)

proximity to receptors;

(B)

rate of emission of air contaminants;

(C)

engineering judgment and experience; and

(D)

determination that no adverse toxicological or health effects would occur off property.

(b)

De minimis facilities or sources at a site which are subsequently determined by the executive director to be in violation of any commission rule, permit, order, or statute within the commission's jurisdiction, will no longer be considered de minimis and must obtain registration or authorization under this chapter or Chapter 106 of this title (relating to Permits by Rule).

(c)

The "List of De Minimis Facilities or Sources" will be maintained in the commission's Office of Permitting, Remediation, and Registration in Austin, with copies maintained in the commission's regional offices, and on the commission's home page on the World Wide Web.

(1)

Persons may petition the executive director to amend the "List of De Minimis Facilities or Sources" or the executive director may amend the list as necessary.

(2)

When amending the list to add or delete categories of facilities, sources, or groups of facilities or sources, the executive director will consider, at a minimum, the following:

(A)

typical operating scenarios;

(B)

typical design and location;

(C)

the types and rates of air contaminants emitted;

(D)

engineering judgment and experience; and

(E)

toxicological or health impacts.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002146

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter F. STANDARD PERMITS

30 TAC §§116.603, 116.620, 116.621

STATUTORY AUTHORITY

The amendments are proposed under Texas Health and Safety Code, TCAA, §382.05101, which authorizes the commission to establish a de minimis level of air contaminants for sources that does not require pre-construction authorization; and TCAA, §382.051 and §382.05194, which authorize the commission to issue multiple plant permits and to adopt rules governing their issuance. The amendments are also proposed under Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions; §382.0514, which authorizes the commission to require sampling and monitoring; §382.0515, which requires permit applications which demonstrate compliance with state and federal statutes and rules; §382.0518, which requires permits to prior to construction or modification; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere; §382.061, which authorizes the commission to delegate permitting authority to the executive director; §382.062, which authorizes the commission to adopt, charge, and collect fees for permits; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.

The proposed amendments implement §382.05101, concerning De Minimis Air Contaminants; §382.051, concerning Permitting Authority of Commission; Rules; §382.05194, concerning Multiple Plant Permit; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.0513, concerning Permit Conditions; §382.0514, concerning Sampling, Monitoring, and Certification; §382.0515, concerning Application for Permit; §382.0518, concerning Preconstruction Permit; §382.057, concerning Exemption; §382.05196, concerning Permits by Rule; §382.061, concerning Delegation of Powers and Duties; §382.062, concerning Application, Permit, and Inspection Fees; and Texas Water Code, §5.122, concerning Delegation of Uncontested Matters to the Executive Director.

§116.603. Public Participation in Issuance of Standard Permits.

(a)

(No change.)

(b)

The contents of a public notice of a proposed standard permit shall be in accordance with §122.506 [ §39.411 ] of this title (relating to Public Notice for General Operating Permits [ Text of Public Notice ]) except where clearly not applicable. Each notice will include an invitation for written comments by the public regarding the proposed standard permit. The public notice will specify a comment period of at least 30 days and the public notice will be published not later than the 30th day before the commission issues a standard permit.

(c)-(f)

(No change.)

§116.620. Installation and/or Modification of Oil and Gas Facilities.

(a)

Emission specifications.

(1)-(3)

(No change.)

(4)

New or modified internal combustion reciprocating engines or gas turbines permitted under this standard permit shall satisfy all of the requirements of §106.512 of this title (relating to Stationary Engines and Turbines (Previously SE 6)), except that registration using the Form PI-7 or PI-8 shall not be required. Emissions from engines or turbines shall be limited to the amounts found in §106.4(a)(1) of this title (relating to Requirements for Permitting by Rule [ Exemption from Permitting ]).

(5)-(10)

(No change.)

(11)

No facility which is located less than 1/4 mile from the nearest off-plant receptor shall be allowed to emit hydrogen sulfide H 2 S or SO 2 process fugitive emissions unless the equipment is inspected and repaired according to subsection (c)(3) of this section. No facility which is located at least 1/4 mile from the nearest off-plant receptor shall be allowed to emit H2 S or SO 2 process fugitive emissions unless the equipment is inspected and repaired according to subsection (c)(3) of this section or unless the H 2 S or SO2 emissions are monitored with ambient property line monitors according to subsection (e)(1) of this section. Components in sweet crude oil or gas service as defined by Chapter 101 of this title (relating to General Air Quality Rules) are exempt from these limitations.

(12)-(18)

(No change.)

(b)

Control requirements.

(1)

Floating roofs or equivalent controls shall be required on all new or modified storage tanks, other than pressurized tanks which meet §106.476 of this title (relating to Pressurized Tanks or Tanks Vented to Control (Previously SE 83)), unless the tank is less than 25,000 gallons in nominal size or the vapor pressure of the compound to be stored in the tank is less than 0.5 pounds per square inch absolute (psia) at maximum short-term storage temperature.

(A)-(D)

(No change.)

(E)

Independent of the permits by rule [ exemptions ] listed in this paragraph, if the emissions from any fixed roof tank exceed ten tpy of VOC or ten tpy of sulfur compounds, the tank emissions shall be routed to a destruction device, vapor recovery unit, or equivalent method of control that meets the requirements listed in subparagraph (D) of this paragraph.

(2)

(No change.)

(c)

Inspection requirements.

(1)

Owners or operators who are subject to subsection (a)(7) or (8) of this section shall comply with the following requirements.

(A)-(I)

(No change.)

(J)

After completion of the required quarterly inspections for a period of at least two years, the operator of the oil and gas facility may request in writing to the Office of Permitting, Remediation, and Registration [ Office of Air Quality, New Source Review Permits Division ] that the monitoring schedule be revised based on the percent of valves leaking. The percent of valves leaking shall be determined by dividing the sum of valves leaking during current monitoring and valves for which repair has been delayed by the total number of valves subject to the requirements. This request shall include all data that has been developed to justify the following modifications in the monitoring schedule.

(i)-(ii)

(No change.)

(2)

Owners or operators who are subject to subsection (a)(9) or (10) of this section shall comply with the following requirements.

(A)-(I)

(No change.)

(J)

After completion of the required quarterly inspections for a period of at least two years, the operator of the oil and gas facility may request in writing to the Office of Permitting, Remediation, and Registration [ Office of Air Quality, New Source Review Permits Division ] that the monitoring schedule be revised based on the percent of leaking valves. The percent of valves leaking shall be determined by dividing the sum of valves leaking during current monitoring and valves for which repair has been delayed by the total number of valves subject to the requirements. This request shall include all data that has [ have ] been developed to justify the following modifications in the monitoring schedule.

(i)-(ii)

(No change.)

(K)

(No change.)

(3)

(No change)

(d)-(e)

(No change.)

§116.621. Municipal Solid Waste Landfills.

A person may claim a standard permit for the construction or modification to a municipal solid waste landfill (MSWLF) or municipal solid waste facility (MSW facility) as defined in §101.1 of this title (relating to Definitions), including, but not limited to, Type I, Type 1-AE, Type II, Type III, Type IV, Type IV-AE, Type VI, and Type IX sites as defined in §330.41 of this title (relating to Types of Municipal Solid Waste Sites).

(1)-(7)

(No change.)

(8)

The owner or operator of each MSWLF unit shall maintain complete and up-to-date records sufficient to readily determine continuous compliance with the requirements of this section for the previous five years of operation. All the records shall be maintained in an operating record in accordance with §330.113(b)(11) of this title (relating to Recordkeeping Requirements). The records shall be available for review upon request by representatives of the commission or any local air pollution agency having jurisdiction. The following recordkeeping requirements shall apply, in addition to those specified in 40 CFR 60, Subpart WWW.

(A)

Permit holders who are subject to the permits by rule [ exemptions ] of Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting ]) , as specified in paragraph (4) of this section shall maintain any records specified in the permit by rule [ exemption from permitting ].

(B)

(No change.)

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002147

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter G. FLEXIBLE PERMITS

30 TAC §§116.710, 116.715, 116.721, 116.722, 116.750

STATUTORY AUTHORITY

The amendments are proposed under Texas Health and Safety Code, TCAA, §382.05101, which authorizes the commission to establish a de minimis level of air contaminants for sources that does not require pre-construction authorization; TCAA, and §382.051 and §382.05194, which authorize the commission to issue multiple plant permits and to adopt rules governing their issuance. The amendments are also proposed under Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions; §382.0514, which authorizes the commission to require sampling and monitoring; §382.0515, which requires permit applications which demonstrate compliance with state and federal statutes and rules; §382.0518, which requires permits to prior to construction or modification; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere §382.061, which authorizes the commission to delegate permitting authority to the executive director; §382.062, which authorizes the commission to adopt, charge, and collect fees for permits; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.

The proposed amendments implement §382.05101, concerning De Minimis Air Contaminants; §382.051, concerning Permitting Authority of Commission; Rules; §382.05194, concerning Multiple Plant Permit; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.0513, concerning Permit Conditions; §382.0514, concerning Sampling, Monitoring, and Certification; §382.0515, concerning Application for Permit; §382.0518, concerning Preconstruction Permit; §382.057, concerning Exemption; §382.05196, concerning Permits by Rule; §382.061, concerning Delegation of Powers and Duties; §382.062, concerning Application, Permit, and Inspection Fees; and Texas Water Code, §5.122, concerning Delegation of Uncontested Matters to the Executive Director.

§116.710. Applicability.

(a)

(No change.)

(b)

Change in ownership. The new owner of a facility, group of facilities, or account shall comply with §116.110(d) [ §116.110(c) ] of this title, provided however, that all facilities covered by a flexible permit must change ownership at the same time and to the same person, or both the new owner and existing permit holder must obtain a permit alteration allocating the emission caps or individual emission limitation prior to the transfer of the permit by the commission. After the sale of a facility, or facilities, but prior to the transfer of a permit requiring a permit alteration, the original permit holder remains responsible for ensuring compliance with the existing flexible permit and all rules and regulations of the commission.

(c)-(d)

(No change.)

§116.715. General and Special Conditions.

(a)

Flexible permits may contain general and special conditions. The holders of flexible permits shall comply with any and all such conditions. Upon a specific finding by the executive director that an increase of a particular air contaminant could result in a significant impact on the air environment, or could cause the facility, group of facilities, or account to become subject to review under §116.150 and §116.151 and §§116.160-116.163 of this title (relating to Nonattainment Review or Prevention of Significant Deterioration Review) or Subchapter C of this chapter (relating to Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources (FCAA, §112(g), 40 CFR Part 63)), the permit may include a special condition which requires the permittee to obtain written approval from the executive director before constructing a facility under a standard permit or a permit by rule [ an exemption ] under Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting ]).

(b)-(d)

(No change.)

§116.721. Amendments and Alterations.

(a)-(c)

(No change.)

(d)

Permit by rule [ Exemption ] under Chapter 106 of this title (relating to Permits by Rule [ Exemptions from Permitting ]) in lieu of permit amendment or alteration.

(1)

Notwithstanding subsections (a) or (b) of this section, no permit amendment or alteration is required if the changes to the permitted facility qualify for a permit by rule [ an exemption ] under Chapter 106 of this title unless prohibited by permit provision as provided in §116.715 of this title (relating to General and Special Conditions). All such changes permitted by rule [ exempted changes ] to a permitted facility shall be incorporated into that facility's permit at such time as the permit is amended or renewed.

(2)

(No change.)

§116.722. Distance Limitations.

No flexible permit may be issued unless the distance and location restrictions found in §116.112 [ §116.117 ] of this title (relating to Distance Limitations) are met.

§116.750. Flexible Permit Fee.

(a)-(c)

(No change.)

(d)

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

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002148

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Subchapter J. MULTIPLE PLANT PERMITS

30 TAC §§116.1010, 116.1011, 116.1014, 116.1015, 116.1020, 116.1021, 116.1040, 116.1041, 116.1050, 116.1060, 116.1070,

STATUTORY AUTHORITY

The new sections are proposed under Texas Health and Safety Code, TCAA, §382.05101, which authorizes the commission to establish a de minimis level of air contaminants for sources that does not require pre-construction authorization; and TCAA, §382.051 and §382.05194, which authorize the commission to issue multiple plant permits and to adopt rules governing their issuance. The new sections are also proposed under Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to administer the requirements of the TCAA; §382.012, which provides the commission with the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions; §382.0514, which authorizes the commission to require sampling and monitoring; §382.0515, which requires permit applications which demonstrate compliance with state and federal statutes and rules; §382.0518, which requires permits to prior to construction or modification; §382.057, which authorizes the commission to exempt from permitting, changes within any facility which will not make a significant contribution of air contaminants to the atmosphere; §382.05196, which authorizes the commission to adopt permits by rule for types of facilities which will not make a significant contribution of air contaminants to the atmosphere; §382.061, which authorizes the commission to delegate permitting authority to the executive director; §382.062, which authorizes the commission to adopt, charge, and collect fees for permits; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.

The proposed new sections implement §382.05101, concerning De Minimis Air Contaminants; §382.051, concerning Permitting Authority of Commission; Rules; §382.05194, concerning Multiple Plant Permit; §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.017, concerning Rules; §382.0513, concerning Permit Conditions; §382.0514, concerning Sampling, Monitoring, and Certification; §382.0515, concerning Application for Permit; §382.0518, concerning Preconstruction Permit; §382.057, concerning Exemption; §382.05196, concerning Permits by Rule; §382.061, concerning Delegation of Powers and Duties; §382.062, concerning Application, Permit, and Inspection Fees; and Texas Water Code, §5.122, concerning Delegation of Uncontested Matters to the Executive Director.

§116.1010. Applicability.

(a)

A person may obtain a multiple plant permit for existing facilities subject to TCAA, §382.0518 or §382.0519 at multiple plant sites that are owned or operated by the same person or persons under common control if:

(1)

the aggregate rate of emission of air contaminants to be authorized under the permit does not exceed the total of:

(A)

for previously permitted facilities, the rates authorized in the existing permits; and

(B)

for existing grandfathered facilities or for facilities authorized under Subchapter H of this chapter (relating to Voluntary Emission Reduction Permits), the rates that would be authorized under Subchapter H of this chapter; and

(2)

there is no indication that the emissions from the facilities will contravene the intent of the TCAA, including protection of the public's health and physical property.

(b)

A permit issued under this subchapter may not authorize emissions from any facility that exceeds that facility's highest historic annual rate or the levels authorized in the facility's most recent permit. The highest historic annual rate would be determined by either of the following:

(1)

using data that shows the maximum annual emission rate at which the emission unit actually operated and emitted prior to September 1, 1971 for 12 consecutive months, including any increases authorized by a permit by rule; or

(2)

using data related to emissions (e.g., production, fuel firing, throughput, sulfur content, etc.) as appropriate, which are selected by the applicant and agreed upon by the executive director, to reasonably approximate the actual annual emission rate from any operational year.

(c)

Emissions control equipment previously installed at a facility permitted under this chapter may not be removed or disabled unless the action is undertaken to maintain or upgrade the control equipment or to otherwise reduce the impact of emissions authorized by the commission.

§116.1011. Multiple Plant Permit Application.

(a)

An application for a multiple plant permit must include a completed Form PI-1M Multiple Plant Permit Application. The Form PI-1M must be signed by an authorized representative of the applicant. The Form PI-1M specifies additional support information which must be provided before the application is deemed complete. In order to be granted a multiple plant permit, the owner or operator of the existing facilities shall submit the following information to the commission:

(1)

information to demonstrate compliance with applicable conditions of §116.711 of this title (relating to Flexible Permit Application;

(2)

for grandfathered facilities, as defined in §116.10(6) of this title (relating to General Definitions) for which a multiple plant permit application is filed prior to September 1, 2001, the information required by §116.811 of this title (relating to Voluntary Emission Reduction Permit Application);

(3)

for permitted facilities, the relevant permit;

(4)

relevant information, indicating that the emissions from the facilities will not contravene the intent of the TCAA, including protection of the public's health and physical property; and

(5)

information necessary to calculate the cost of public notice under §116.1040 of this title (relating to Multiple Plant Permit Public Notice).

(b)

Grandfathered facilities which do not apply prior to September 1, 2001 must first obtain a permit under Subchapter B of this chapter (relating to New Source Review Permits) before they are eligible to be included in a multiple plant permit.

§116.1014. Application Review Schedule.

The multiple plant permit application will be reviewed by the commission in accordance with §116.614 of this title (relating to Application Review Schedule).

§116.1015. General and Special Conditions.

(a)

Multiple plant permits may contain general and special conditions, including special conditions which provide emission limitation for each facility and which specify the aggregate rate of emissions of air contaminants. The holders of a multiple plant permit shall comply with any and all such conditions.

(b)

Holders of multiple plant permits shall comply with §116.115 of this title (relating to General and Special Conditions), as applicable.

§116.1020. Modifications.

The owner or operator planning the modification of a facility permitted under a multiple plant permit must comply with Subchapter B of this chapter (relating to New Source Review Permits) before work is begun on the construction of the modification.

§116.1021. Amendments and Alterations.

(a)

Multiple plant permit amendments. All representations in an application for a multiple plant permit, as well as any general and special conditions contained in the permit, become conditions upon which the subsequent multiple plant permit is issued. It shall be unlawful for any person to vary from such representation or condition if the change is a modification, a change in the method of control of emissions, or will result in an increase in emissions, unless application is made to the commission to amend the multiple plant permit in that regard and such amendment is approved by the commission. Applications to amend a multiple plant permit shall be submitted with a completed Form PI-1 and are subject to the requirements of §116.116(b) of this title (relating to Changes to Facilities).

(b)

Multiple plant permit alterations.

(1)

A multiple plant permit alteration is for any variation from a representation in a multiple plant permit application or a general or special condition of a multiple plant permit that does not require a multiple plant permit amendment.

(2)

All multiple plant permit alterations which may involve a change in a general or special condition contained in the permit, or affect control equipment performance must receive prior approval by the executive director. The executive director shall be notified in writing of all other multiple plant permit alterations within ten days of implementing the change, unless the permit provides for a different method of notification. Any multiple plant permit alteration request or notification shall include information sufficient to demonstrate that the change does not interfere with the owner or operator's previous demonstrations of compliance with the requirements of §116.1011 of this title, including the protection of public health and welfare. The appropriate commission regional office and any local air pollution program having jurisdiction shall be provided copies of all multiple plant permit alteration documents.

(c)

Permit by rule under Chapter 106 of this title (relating to Permits by Rule) in lieu of permit amendment or alteration.

(1)

Notwithstanding subsections (a) or (b) of this section, no permit amendment or alteration is required if the changes to the permitted facility qualify for a permit by rule under Chapter 106 of this title unless prohibited by permit provision as provided in §116.1015 of this title (relating to General and Special Conditions). All such changes to a permitted facility authorized by Chapter 106 of this title, shall be incorporated into that facility's permit at such time as the permit is amended or renewed.

(2)

Emission increases authorized by Chapter 106 of this title, at an existing facility covered by a multiple plant permit shall not cause an exceedance of the aggregate emissions cap or individual emission limitation.

§116.1040. Multiple Plant Permit Public Notice.

The commission will publish notice of a proposed multiple plant permit in the Texas Register and in a newspaper of general circulation in the area to be affected. If the multiple plant permit will affect the entire state, the commission will publish notice in Texas Register and in the daily newspaper of largest circulation in Dallas and Houston and in other regional newspapers, as appropriate. The notice will include relevant information required by §39.411 of this title (relating to Text of Public Notice) and will be published not later than the 30th day before the date the commission issues the multiple plant permit. Applicants must publish notice of a proposed multiple plant permit amendment consistent with §116.116(b)(4) of this title (relating to Changes to Facilities).

§116.1041. Multiple Plant Permit Public Comment Procedures.

(a)

The commission will hold a public meeting to provide an additional opportunity for public comment. The commission will give notice of a public meeting under this section as part of the notice described in §116.1040 of this title (relating to Multiple Plant Permit Public Notice) not later than the 30th day before the date of the meeting.

(b)

If the commission receives public comment related to the issuance of a multiple plant permit for existing facilities, the commission will issue a written response to the comments at the same time the commission issues or denies the permit. The response will be made available to the public, and the commission will mail the response to each person who made a comment.

(c)

Applications for multiple plant permit issuance, amendment, or revocation which are filed before September 1, 2001, are not subject to Texas Government Code, Chapter 2001.

§116.1050. Multiple Plant Permit Application Fee.

Any person who applies for a multiple plant permit shall remit, at the time of application for such permit, a fee of $450 plus the estimated public notice cost for the permit consistent with the public notice requirements in §116.1040 of this title (relating to Multiple Plant Permit Public Notice).

(1)

Fees will not be charged for multiple plant permit alterations, changes of ownership, or changes of location of permitted facilities.

(2)

Fees must be paid at the time an application for a permit is submitted. If the applicant withdraws the application for the permit prior to initiation of the public notice process by the commission, the estimated cost of public notice will be refunded to the applicant. No fees will be refunded after a deficient application has been voided or after initiation of the public notice process by the commission.

§116.1060. Multiple Plant Permit Renewal.

Multiple plant permits shall be renewed in accordance with Subchapter D of this chapter (relating to Permit Renewals).

§116.1070. Delegation.

The commission may delegate to the executive director any authority in this subchapter.

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

Filed with the Office of the Secretary of State, on March 24, 2000.

TRD-200002149

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: August 2, 2000

For further information, please call: (512) 239-1966


Chapter 305. CONSOLIDATED PERMITS

Subchapter M. WASTE TREATMENT INSPECTION FEE PROGRAM

30 TAC §305.502, §305.503

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §305.502, Definitions and Abbreviations and §305.503, Fee Assessment. These amendments are proposed to Chapter 305, Consolidated Permits, Subchapter M, Waste Treatment Inspection Fee Program.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The purpose of the proposed amendments is to incorporate recent legislative changes impacting fees for aquaculture production facilities. Senate Bill (SB) 873, 76th Legislature, 1999, added §26.0292 to the Texas Water Code (TWC) which directs that combined fees for the waste treatment inspection program and the Clean Rivers Program may not total more than $5,000 in any year. Currently, annual waste treatment inspection fees for industrial dischargers, including aquaculture facilities, are established with a cap not to exceed $25,000.

The commission is proposing amendments to §305.503 to include a provision capping the waste treatment inspection fee for aquaculture production facilities at $5,000. Currently, no fee is assessed for aquaculture facilities for the Clean Rivers Program, under 30 TAC §220.21(d). The commission has determined that because the number of aquaculture facilities with active individual wastewater discharge permits is relatively small, the amount of funds that would be collected by the Clean Rivers Program through a redistribution of the fees for aquaculture production facilities is insignificant. Therefore, the Clean Rivers Program fee for aquaculture facilities will remain at zero, and the waste treatment inspection fee will be set so as not to exceed $5,000 annually.

SB 873 also directs that the commission by rule provide that fees charged among aquaculture facilities be reasonably assessed according to the pollutant load of the facility. The current fee rate schedule is based in part upon the assignment of "points" as a measure of pollutant potential, flow volume, contamination, and pollutant parameters (e.g. ammonia, suspended solids, oxygen demand, etc.). Under the revised rules, fees for aquaculture facilities will continue to be assessed according to this point system. A separate fee rate schedule is not proposed for aquaculture facilities because pollutant loadings and pollutant potential from these facilities were not determined to be significantly different than those from many other industries for which fees are calculated. In order to distribute the waste treatment inspection fee more proportionately among aquaculture facilities, the commission will allow these facilities to apply for an annual average flow in their individual permits to replace the current daily average flow limit. This change will lower the waste treatment inspection fee for those facilities that only discharge a limited number of days per year, which is typical for certain types of aquaculture production facilities. The change to annual average flows will be made as the permits for these facilities come up for renewal, or as a result of a permit amendment.

SECTION BY SECTION DISCUSSION

Proposed §305.502 will add a definition for aquaculture production facilities, correct typographical errors, incorporate minor style changes for consistency with the Texas Register format, and improve readability.

Proposed §305.503 will be revised to include a cap on the annual fee for aquaculture production facilities at $5,000. In addition, the amendment will include minor style changes for consistency with the Texas Register format and improve readability.

FISCAL NOTE

Bob Orozco, Technical Specialist with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed amendments to Chapter 305, Consolidated Permits, are in effect there will be no significant fiscal implications for units of state and local government as a result of administration or enforcement of the proposed amendments.

The proposed amendments would implement certain provisions contained in SB 873, an act relating to the regulation of aquaculture. The act directs the commission to set wastewater treatment inspection fees and the Clean Rivers Program fees for aquaculture facilities at a rate not to exceed a total of $5,000 based upon the pollutant load of the facility. Aquaculture facilities are those facilities engaged in the propagation and/or rearing of aquatic species which utilize ponds, lakes, fabricated tanks and raceways, or similar structures.

Currently, the maximum annual wastewater treatment inspection fee for all wastewater permit holders, including aquaculture facilities, is $25,000. The proposed rules continue the current practice of assigning points as a measure of pollutant potential, flow volume, contamination, and pollutant parameters. The commission would allow these types of facilities to use a rate schedule which allows facilities to be assigned an average annual flow in their permits rather than the current practice of determining the fee based on daily average flow. This change is anticipated to lower the waste treatment inspection fee for those facilities, such as aquaculture production facilities, that discharge wastewater infrequently.

PUBLIC BENEFIT

Mr. Orozco also has determined that for each year of the first five years the proposed amendments to Chapter 305 are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be lower operating costs for certain aquaculture businesses that pay wastewater treatment inspection fees.

The commission anticipates that limiting wastewater treatment inspection fees and Clean Rivers Program fees for aquaculture facilities to a maximum of $5,000 will reduce revenues to the state by approximately $40,000 per year. Currently, there are ten aquaculture facilities paying wastewater treatment inspection fees. As a result of the proposed rules, one facility will realize a $20,000 decrease in wastewater treatment inspection fees, four facilities will realize a decrease of between $1,800 to $7,500, and the other five (including two facilities operated by the Texas Parks and Wildlife Department) will experience no change in their wastewater treatment inspection fees. Setting fees based on average annual flow is anticipated to also lower the wastewater treatment inspection fee further for those facilities that discharge wastewater infrequently.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSES

Some of the aquaculture production facilities that will receive savings in fees paid to the commission are small businesses and micro-businesses. Currently, there are ten aquaculture facilities paying wastewater treatment inspection fees. As a result of the proposed rules, one facility will realize a $20,000 decrease in fees, four facilities will realize a decrease of between $1,800 to $7,500, and the other five (including two facilities operated by the Texas Parks and Wildlife Department) will experience no change in their wastewater treatment inspection fees.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225 and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of "major environmental rule." The specific intent of this rulemaking is to designate the maximum amount of waste treatment inspection fees that may be charged to aquaculture production facilities. The specific purpose of the fee is to help pay the expenses of the commission in inspecting waste treatment facilities and enforcing the laws of the state and rules of the commission governing waste discharges and waste treatment facilities. The proposed rules will have only a minimal impact so that there will be no material effect on the items listed in the definition. In addition, the proposed rules do not meet any of the four applicability requirements listed in Texas Government Code, §2001.0225(a), in that the waste treatment inspection fees are specifically required by TWC, §26.0292; the proposed amendments do not exceed any express requirements of state law; and the proposed amendments do not involve any delegation agreements or contracts.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for these rules under Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the rulemaking is to implement provisions of legislation, SB 873, that place a cap on fees that may be assessed on aquaculture production facilities. The legislation directs the commission to limit fees charged to aquaculture production facilities for the waste treatment inspection program and Clean Rivers Program to no more than $5,000 total in any one year. Promulgation and enforcement of these rules will not burden private real property which is the subject of the rules because most aquaculture facilities will realize a cost savings as a result of the proposed amendments.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has reviewed this rulemaking and found that the proposal is a rulemaking subject to the Texas Coastal Management Program (CMP) and must be consistent with all applicable goals and policies of the CMP. The commission has prepared a consistency determination for this proposed rule pursuant to 31 TAC §505.22 and has found that the rulemaking is consistent with the applicable CMP goals and policies. The following is a summary of that determination. The CMP goals applicable to the rulemaking are the goals to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas (CNRAs). CMP policies applicable to the proposed rule include the following: 1) discharges in the coastal zone shall comply with water-quality-based effluent limits; 2) discharges in the coastal zone that increase pollutant loadings to coastal waters shall not impair designated uses of coastal waters and shall not significantly degrade coastal water quality unless necessary for important economic or social development; and 3) to the greatest extent practicable, new wastewater outfalls shall be located where they will not adversely affect critical areas. Promulgation and enforcement of this proposal will be consistent with the applicable CMP goals and policies because the rule amendments will require that the combined total of waste treatment inspection fees and Clean Rivers fees charged to aquaculture facilities cannot exceed $5,000. These amendments would not adversely affect the applicable CMP goals which are to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of CNRAs, because the amendments are not substantive in nature but rather only affect the amount of fees charged aquaculture production facilities. In addition, the proposed rules do not violate any applicable provisions of the CMP's stated goals and policies. The commission invites public comment on the consistency of the proposed rules.

SUBMITTAL OF COMMENTS

Comments regarding this proposal may be submitted to Lola Brown, 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 1999-036-305-WT. Comments must be received by 5:00 p.m., May 8, 2000. For further information, please contact Yvonna Pierce, Office of Permitting, Remediation, and Registration, (512) 239-4618.

STATUTORY AUTHORITY

The amendments are proposed under the TWC, §5.102, which provides the commission with general powers to carry out duties under the TWC and §§5.103, 5.105, and 5.120, which provide the commission with the authority to adopt any rules necessary to carry out the powers and duties under the provisions of the TWC and other laws of this state and to establish and approve all general policies of the commission. Additionally, these amendments are proposed under the TWC, §26.0291 and §26.0292, which provides the commission with the authority to impose an annual waste treatment inspection fee on permittees and to cap fees for aquaculture facilities at $5,000 per year.

No other codes or statutes will be affected by these proposed amendments.

§305.502.Definitions and Abbreviations.

(a)

Definitions. The definitions contained in the Texas Water Code, §26.001, shall apply herein. The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.

(1)

Annual waste treatment fee--A fee charged to each permittee holding a permit or otherwise authorized to treat or discharge wastewater under the Texas Water Code, Chapter 26.

(2)

Aquaculture production facility--An establishment engaged in the propagation and/or rearing of aquatic species which utilizes ponds, lakes, fabricated tanks and raceways, or other similar structures.

(3)

[ (2) ] Biomonitoring--The determination of total (whole-effluent) toxicity of permitted discharges as required by and consistent with the provisions of §307.1(d) of this title (relating to General Policy Statement).

(4)

[ (3) ] Commission--The Texas Natural Resource Conservation Commission.

(5)

[ (4) ] Flow limit--The maximum amount of wastewater discharge authorized during any term of the permit, expressed as a daily average flow, a daily maximum flow, an annual average, or an annual maximum.

(6)

[ (5) ] Flow--The total by volume of all wastewater discharges authorized under a permit expressed as an average flow per day, a maximum flow per day, an annual average, or an annual maximum, exclusive of variable or occasional stormwater discharges. Generally, the flow is based on the sum of the volumes of discharge for all outfalls of a facility, but excludes internal outfalls. However, for those facilities for which permit limitations on the volumes of discharge apply only to internal outfalls, the flow is based on the sum of the volumes of discharge for all internal outfalls of the facility, exclusive of variable or occasional stormwater discharges.

(7)

[ (6) ] Flow volume--

(A)

Type I--These wastewaters include sanitary wastewater, process wastewater flows, or any mixed wastewaters containing more than 10% process wastewaters;

(B)

Type II--These wastewaters include non-contact cooling water or mixed flows which contain at least 90% non-contact cooling water and not more than one million gallons per day of process wastewater.

(8)

[ (7) ] Fund--The water quality fund.

(9)

[ (8) ] Heat load parameter--The temperature limitation specified in a permit. For purposes of assessing the waste treatment fee, points are assigned according to the existence of a temperature limitation within a waste discharge permit.

(10)

[ (9) ] Inactive permit--A permit which authorizes a waste treatment facility, but where the facility itself is not yet operational or where operation has been suspended.

(11)

[ (10) ] Land application/evaporation permit--A permit which does not authorize the discharge of wastewaters into surface waters in the state. These permits include , but are not limited to , permits for evaporation ponds and irrigation systems.

(12)

[ (11) ] Major permit--A permit designated as a major permit, in conformance with applicable EPA [ Environmental Protection Agency (EPA) ] guidance documents, by either EPA or the commission and subject to provisions of National Pollutant Discharge Elimination System (NPDES) [ NPDES ] or Texas Pollutant Discharge Elimination Systems (TPDES) [ TPDES ] permit authority, respectively.

(13)

[ (12) ] Parameter--A variable which defines a set of physical properties whose values determine the characteristics of a waste discharge. Those parameters to be considered under the waste treatment facility fee are:

(A)

pollutant potential;

(B)

flow volume;

(C)

biochemical oxygen demand (BOD)/chemical oxygen demand (COD)/total organic carbon (TOC) value;

(D)

total suspended solids (TSS) value;

(E)

ammonia value;

(F)

heat load; and

(G)

major/minor designation.

(14)

[ (13) ] Payment--Receipt by the commission of the full amount of the annual waste treatment fee.

(15)

[ (14) ] Permit--Any permit issued by the Texas Natural Resource Conservation Commission under authority of the Texas Water Code, Chapter 26, including those permits issued under the authority of both the Texas Water Code, Chapter 26, and other statutory provisions (such as the Health and Safety Code, Chapter 361). For the purpose of this subchapter, the term "permit" shall include any other authorization for the treatment or discharge of wastewater, including permits by rule.

(16)

[ (15) ] Pollutant potential--A rating assigned to a permit based on:

(A)

for industrial permits, the source(s) of wastewater, the Standard Industrial Classification of the facility, and the specific type of operation; or

(B)

for domestic permits, an authorized flow of greater than 1.0 million gallons per day (mgd) [ mgd ] and/or the existence of biomonitoring requirements or toxic numerical discharge limits.

(17)

[ (16) ] Report only permit--A permit which authorizes the variable or occasional discharge of wastewaters with a requirement that the volume of discharge be reported but without any limitation on the volume of discharge.

(18)

[ (17) ] Stormwater outfall or permit--A permit or outfall(s) which authorizes the variable or occasional discharge of accumulated stormwater and stormwater runoff, but without any specific limitation on the volume of discharge.

(19)

[ (18) ] Toxicant numerical limit--A permit discharge limit established for any toxicant identified or otherwise defined in accordance with the provisions of §307.6 of this title (relating to Toxic Materials).

(20)

[ (19) ] Traditional pollutants--The wastewater parameters typically found in wastewater discharge permits, specifically BOD/COD/TOC, TSS, and ammonia. For purposes of assessing the waste treatment fee, points are assigned to these parameters if they are included in a permit.

(b)

Abbreviations. The following abbreviations apply to these sections.

(1)-(3)

(No change.)

(4)

Mg/l (milligrams per liter)--All limits measured in mg/l are converted to pounds per day (lb/day) using the following conversion: mg/l multiplied by the flow volume in mgd [ MGD ] multiplied by 8.34 equals lb/day.

(5)-(8)

(No change.)

§305.503.Fee Assessment.

(a)

(No change.)

(b)

In assessing a fee, the commission may consider the following parameters for each permit:

(1)-(6)

(No change.)

(7)

the costs of obtaining and administering the TPDES [ Texas pollutant discharge elimination system ] program, upon delegation by the EPA [ Environmental Protection Agency (EPA) ].

(c)

(No change.)

(d)

For the purpose of fee calculation, chemical oxygen demand (COD) [ COD ] and total organic carbon (TOC) [ TOC ] are converted to biochemical oxygen demand (BOD) [ BOD ] values and the higher value is assessed points. The conversion for TOC is[ : ] three pounds of TOC is equal to one pound of BOD (3:1). The conversion for COD is eight pounds of COD is equal to one pound of BOD (8:1).

(e)

For the purpose of fee calculation, a permit which authorizes a secondary treatment system consisting of ponds or lagoons at limits of 30 milligrams per liter (mg/l) [ mg/l ] BOD an 90 mg/l total suspended solids (TSS) [ TSS ] shall be assumed to be equivalent to 20 mg/l BOD and 20 mg/l TSS. This equivalency is based on treatment provided by different types of secondary treatment systems.

(f)

Fee rate schedule. Except as provided in subsection (g) of this section, each permit shall be assessed a fee based on the specific parameters assigned to the permit and determined by the following schedule. Each permit shall be reviewed to determine the individual values for the parameters covered by this schedule.

(1)-(3)

(No change.)

(4)

Heat load . [ : ] If heat loading parameter is not present = 0 points; if [ If ] heat loading parameter is present = 10 points. Heat Load Points = ____________.

(5)

(No change.)

(g)

Set point permits. The following fees are assessed for permits to which the parameters under subsection (f) of this section are not applicable.

(1)-(2)

(No change.)

(3)

Aquaculture production facility discharge permits. The annual fee for aquaculture production facilities shall not exceed $5,000.

(h)-(j)

(No change.)

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

Filed with the Office of the Secretary of State, on March 23, 2000.

TRD-200002109

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: July 12, 2000

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