TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 101. GENERAL AIR QUALITY RULES

Subchapter A. GENERAL RULES

30 TAC §§101.1, 101.6, 101.7, 101.11

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes amendments to §101.1, concerning Definitions; §101.6, concerning Upset Reporting and Recordkeeping Requirements; §101.7, concerning Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements; and §101.11, concerning Exemptions from Rules and Regulations; and revisions to the State Implementation Plan (SIP). The commission also proposes to withdraw the revisions to the SIP which included the amendments to these rules effective August 5, 1997.

BACKGROUND AND SUMMARY OF THE FACTUAL BASE FOR THE PROPOSED RULES

On July 9, 1997, the commission adopted amendments to the sections in Chapter 101 concerning the upset, maintenance, start-up and shutdown rules that are the subject of this proposal. These amendments modified the method by which owners and operators of sources releasing excess emissions due to upset, maintenance, start-up and shutdown (U/M) events would report those episodes to the commission. The adopted amendments used the concept of a "reportable quantity" (RQ) to govern when a source must report excess emissions due to upsets. Based on similar rules concerning solid waste and on evaluation of the effects of emissions of regulated compounds to the atmosphere, the amendments did not require a report of U/M emissions below a significance threshold. The owner or operator of the source is required to keep records of all U/M events, but is only required to report to the commission those events where the U/M emissions equal or exceed an RQ. This report must be submitted to the commission within 24 hours of discovery of the event. Records of events below the RQ are maintained at the source site and are to be made available to the commission on request. The 1997 amendments also required that records of U/M events causing unauthorized emissions, both reportable and not, contain specific information including date, time, duration, substance released and quantity, cause of the event, and actions taken to correct the situation. To gain an exemption from emission limitations, owners or operators must first comply with this reporting requirement. Additionally, the episode must have been reasonably avoidable, the operator must have taken appropriate corrective actions as soon as practicable after the onset of the event, and the operator must have minimized the emissions to the extent practicable. Similar requirements were adopted for excess emissions resulting from maintenance, start-up, or shutdown of a source. The commission adopted these amendments and requested staff to examine the effectiveness of the rules as implemented over the next two years. Additionally, the commission submitted the rules to the United States Environmental Protection Agency (EPA) as a revision to the SIP. The commission adopted the 1997 amendments to reduce the number of U/M reports being submitted, through the use of RQs, allowing concentration of staff time on the most significant or higher priority events. While records of all events are kept on-site, the number of reports submitted to the commission has been limited to significant events. Reporting has been reduced by approximately 50%.

In November 1998, EPA informed the commission that the 1997 amended version of the U/M rules could not be approved as a SIP revision and that it intended to begin formal disapproval procedures. EPA specifically cited the reporting requirements of the rule as being deficient. Records of events below an RQ are not routinely submitted to the commission, but are currently maintained at the site and submitted on request of the commission. EPA believes that this procedure does not give the general public sufficient access to this information, requiring them to go through the commission to obtain reports. Secondly, EPA stated that the commission's method of exempting excess emissions released during an U/M event did not require sufficient proof from a source operator that the event was reasonably unavoidable. EPA stated that the commission's rule did not place the burden of such proof on the source owner or operator and was not specific enough as to what would constitute "reasonably unavoidable."

On January 29, 1999, the commission published in the Texas Register a notice of rule review of Chapter 101, as required by the General Appropriations Act, Article IX, §167, 75th Legislature, 1997. The intent of the rule review was to determine if a need for the rules in Chapter 101 continues to exist. In addition to other generally applicable rules, Chapter 101 contains all the rules relating to U/M. During the public comment period for rule review, the commission received comments from the Texas Chemical Council (TCC) and the Texas Industrial Project (TIP) requesting changes to the U/M rules. The agency response to these requested changes was as follows: "The commission adopted amendments to the upset/maintenance rules in the summer of 1997. At that adoption the commission directed the staff to further evaluate the rules after two years. The staff has initiated that review and will consider all comments concerning upset/maintenance and the definition of reportable quantity as part of that review. The commission will consider upset/maintenance rules for possible amendment, including administrative changes, after the evaluation is completed. Rulemaking resulting from the evaluation would likely be initiated prior to the end of calendar year 1999." As part of this two-year review, the commission specifically instructed the executive director to evaluate the burdens placed on the regulated community, explain what is obtained from U/M reporting, how the data was used, and make recommendations on the future disposition of the rule. As stated earlier, the major impact of the 1997 amendments was a major reduction in the number of U/M reports being submitted through the use of RQs, thus reducing the reporting burden on the regulated community. Furthermore, the 1997 amendments allowed the agency to concentrate its resources on the most significant or higher priority events. However, the scope of this review was considerably changed with EPA's pending disapproval of the U/M SIP revisions. One of EPA's major criteria for obtaining SIP approval of the U/M rules is the reporting of all excess emissions from U/M episodes. While this may place additional burdens on the regulated community, EPA believes that this reporting is necessary to provide the public access to information on emissions that affect their communities.

SECTION BY SECTION DISCUSSION

The commission proposes to amend §§101.1, 101.6, 101.7, and 101.11 to address comments received during the rule review of Chapter 101, and EPA comments concerning the acceptability of the rules as SIP amendments.

At the suggestion of TCC and TIP, the commission is proposing to add certain compounds to the list of substances with an RQ of 5,000 pounds. Other TCC and TIP suggestions received during rule review have not been proposed. The commission addresses those comments in greater detail where specific proposals for individual sections are described.

To address EPA concerns about insufficient public information, the commission is proposing that the 24-hour initial notice be followed up with a written report sent to the appropriate regional office within two weeks of the end of the event. This will provide the regional offices information on the most significant events that can be made available for public inspection. Facilities must still create and maintain records of events below an RQ, but these records will not routinely be sent to the commission. This is consistent with the concept of an RQ which establishes a significance threshold to reduce regulatory burden and the amount of information received by regulatory agencies.

TIP recommended either eliminating the 100-pound default RQ or raising it to 5,000 pounds. TIP recognized that adding Texas-specific compounds to the definition at an RQ of 5,000 pounds is also an available option. It recommend adding butyl acrylate, ethanol, heptenes, hexanes, hexenes, isopropyl alcohol, methyl acrylate, mineral spirits, octenes, pentanes, pentenes, and unspeciated volatile organic compounds (VOC). TCC commented that the commission should modify its list of RQs to contain the following general compounds with an RQ of 5,000 pounds: butanes, pentanes, pentenes, heptenes, hexenes, octanes, decanes, and ethanol. It also suggested that the commission raise its default RQ from 100 pounds to 5,000 pounds. Five thousand pounds is the highest RQ for hazardous substances on the RQ list under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The commission's default value of 100 pounds applies to air contaminants not found on the CERCLA hazardous substance list or the Emergency Planning and Community Right-to-Know Act (EPCRA) list.

The commission proposes to amend the definition of "reportable quantity" to include the following air contaminants at an RQ of 5,000 pounds: butanes (all isomers), pentanes (all isomers), hexanes (all isomers), octanes (all isomers), decanes (all isomers), ethanol, isopropyl alcohol, and mineral spirits. Since isobutylene is one of the isomers of butene, it would be deleted as an individual compound from the RQ list. These air contaminants proposed for inclusion under a 5,000-pound RQ are not listed in CERCLA and EPCRA lists, but are air contaminants common to Texas industries.

The commission declines to add pentenes, hexenes, heptenes, octenes, butyl acrylate, and methyl acrylate at an RQ of 5,000 pounds based on their potential to emit strong odors at low concentrations. Unspeciated VOCs were not included in the proposal to ensure that the agency will receive appropriate information on the chemical characteristics of the releases. Unspeciated VOCs can include significantly hazardous constituents listed in CERCLA, EPCRA, and agency permits. The commission also believes that it is not appropriate to raise the default RQ to 5,000 pounds from 100 pounds because certain compounds, such as dimethyl sulfide, are potentially hazardous when released to the air in much smaller amounts. Additionally, the 100-pound default RQ is needed to cover all potentially problematic compounds not listed in CERCLA or EPCRA. The commission will consider individual compounds, as submitted, for a higher RQ.

The commission proposes the correction of a formatting error in §101.1(127)(B)(i), (ii), and (iii). The term "definition" is being replaced with the term "paragraph."

The commission also proposes the correction of a typographical error in §101.1(127)(B)(iv). The language should have read, "where natural gas or air emissions from crude oil are known...." This change will clarify that the intent of the language was to allow either natural gas or air emissions from crude oil to have an RQ of 5,000 pounds. The current definition indicates that the 5,000-pound RQ applies to a combination of emissions from natural gas and crude oil.

TIP suggested that unauthorized emissions from flares be treated similarly to emissions from boilers and combustion turbines. TIP stated that unauthorized emissions from flares should be reportable in terms of how long a flare smokes in excess of the time specified in a permit or rule.

The commission declines to propose this suggestion because the sources are not comparable. The 15-percentage point opacity level of boilers and combustion turbines is for units using fuels containing very low concentrations of hazardous air pollutants (less than 0.02% by weight). Typically, it is not the flare that will be in an upset condition (i.e., a problem with the burner tips); instead, it is normally the process feeding the flare which will be in upset. A facility operator should have knowledge of the compounds which are present in the affected process, and should be able to provide a reasonable estimate of the amounts of compounds being emitted.

TIP requested that the commission consider some mechanism to authorize routine emissions resulting from start-up, shutdown, and maintenance (SSM). It stated that while such emissions are episodic, the vast majority do not pose a threat requiring immediate response, and requested the opportunity to discuss this situation further with the staff. Additionally, the commenter stated that the commission should consider exempting SSM emissions in compliance with an EPA-required start-up, shutdown, and maintenance plan. TIP also requested that the commission incorporate into the U/M rules the reduced reporting obligations for continuous releases under CERCLA and the EPCRA because of the routine and predictable emissions resulting from SSM.

The commission does not propose any changes to the current rule in response to this comment. The definition of continuous release under CERCLA in 40 Code of Federal Regulations (CFR) §302.8(b) requires that the release be "routine, anticipated, and intermittent and incidental to normal operations...." The same section defines "routine" as a release "that occurs during normal operating procedures or processes." The analogous situation under the air emission rule would be the normal operation of a pollution source with the anticipated emissions. The commission does not require reports for normal operation of air emission sources. The commission's rule currently does not require owner/operators to notify the agency of emissions from SSM unless it is expected that unauthorized emissions will be released in amounts at or above a RQ. The commission believes that this is justified because, as with upsets, releases at or above an RQ have the strongest potential for causing effects off property. Because the majority of SSM emissions are predictable, the commission believes that its current rule allows source operators to conduct maintenance with predictable and reasonable reporting requirements.

TCC commented that the commission should delete recordkeeping requirements for non- reportable upsets. A non-reportable upset is one that results in a release of air contaminants less than an RQ. It commented that the current U/M rule has been in place for over one year, and that the commission has had adequate time to collect information regarding non-reportable upsets. In addition, elimination of this requirement would reduce the recordkeeping burden on industry. In a related comment, TIP suggested that the commission should make an exception to recordkeeping for releases only slightly above authorized amounts. It suggested that the commission either exempt from recordkeeping amounts that are less than a certain percentage (for example, 10%) of an RQ above an authorized emission, or set a non-recordkeeping level at less than one pound above authorized limits for substances with an RQ at ten pounds or higher.

The commission declines to propose the amendments as suggested by TIP and TCC. The commission believes that establishing a "grace amount" of 10% or some other value above an authorized limit does, in effect, establish a new limit. This introduces an unnecessary complication in determining whether an event should be recorded. In response to the suggestion by TCC, the commission will continue to require that records of all unauthorized emissions be created and maintained by the source. These records will allow the commission to identify sources with chronic or pattern upsets.

The commission proposes an amendment to §101.6(a)(2) and (3) and also to §101.7(b)(1) and (2) that if the cause of the upset or the type of activity and the reason for the maintenance, startup, or shutdown are known at the time of notifications, the owner or operator of the source must provide that information at that time.

The commission proposes amendments to §101.6(a)(4), (b), and (e) and to §101.7(c) which would allow any local or federal air pollution program with jurisdiction, to review U/M records being maintained at the facility and to request more detailed information on the event. Specifically, the term "local" was deleted to clarify that EPA Region VI also has jurisdiction to review such records. The term "local" remains in provisions discussing the submission or notification of reports. Initial reporting of U/M events to EPA Region VI is not required.

The commission proposes an amendment to §101.6(b)(5) and §101.7(c)(5) to correctly reference that the source must report the compound descriptive type of the individually-listed compounds or mixtures of air contaminants for all U/M activities, not just those equal to or greater than a reportable quantity.

To address EPA's comments on public accessability of records, the commission proposes to add §101.6(c) and §101.7(d) that will require that records of all U/M events at or above an RQ be submitted to the appropriate regional offices no later than two weeks after the end of the event. This record is in addition to the initial notification of the event. However, if the cause of the upset or the type and reason for the maintenance, start-up, or shutdown is known at the time that the initial notification is submitted, and all other required information submitted at the time of the notification is correct and no additional changes are needed, then the notification will be considered to be the final record of the U/M event and no additional report is needed. The commission believes that this reporting frequency will provide timely public accessability to records of the most significant events and will not impose an unreasonable burden on affected sources.

The proposed amendment §101.6(d) would allow boilers and combustion turbines equipped with a continuous emission monitoring system providing updated readings at a minimum 15-minute interval to be exempt from creating, maintaining, and submitting records of reportable and non- reportable upsets as long as the source is required to submit excess emission reports by another state or federal requirement. This same language is also proposed for §101.7(e), thus exempting the previously mentioned sources from creating, maintaining, and submitting records of maintenance, start- up, or shutdown activities under the same conditions. This proposed amendment results from the staff review of the U/M rules and is consistent with the initial concept of the 1997 amendments to reduce duplicate reporting.

TIP pointed out what appear to be typographical errors in §101.7(b)(2)(B), now proposed as §101.7(b)(2)(C), resulting in incorrect references to "upset" when the subject of the section is SSM. The commission proposes an amendment to §101.7(b)(2)(B) to correct the typographical error and correctly reference "maintenance, start-up, or shutdown" instead of "upset." The commission also proposes an amendment to §101.7(c) to require the maintenance of SSM records for five years. This was the commission's original intent and would correct a typographical error referring to "maintaining records on-site for a minimum of two years."

The commission proposes an amendment to the title of §101.11. In an effort to better describe what the section is intended to address, the title is being changed from "Exemptions from Rules and Regulations" to "Demonstrations."

The proposed amendments to §101.11 would satisfy EPA's second concern for obtaining SIP approval. EPA believes that the current U/M rules are inconsistent with EPA's policy on excess emissions resulting from upset, startup, shutdown, and malfunctions. According to EPA's policy on excess emissions, any request for exemption from emission limits needs to clearly state that the event was not caused by poor or inadequate design, operation, or maintenance, and was not of a recurring pattern indicating inadequate design, operation, or maintenance. The EPA policy also requires exemption requests to indicate that repairs were made in an expeditious manner and, if a bypass of a control equipment occurred, that the bypass was necessary to prevent loss of life, personal injury, or severe property damage. The proposal would clarify these conditions in §101.11(a) and (b). The intent of the proposed changes is to detail the existing terms and conditions that a source owner or operator must demonstrate to qualify for an exemption of otherwise unauthorized emissions. Proposed new language in §101.11(e) would clarify the commission's existing practice of not exempting sources from complying with federal requirements. EPA requested language to specifically make clear that §101.11(e) is not intended to grant waivers or exempt sources from complying with any requirement established under a federal program. The proposed new §101.11(g) would state that the burden of proof is placed on the owner or operator to demonstrate that a source meets the criteria to be exempt from compliance with emission limits.

The new §101.11(h) states that emissions from upsets, maintenance, start-ups, or shutdowns may not contribute to a condition of air pollution. This new subsection also clarifies that the rule is not intended to limit the commission's power to require corrective action necessary to minimize emissions. This authority exists under Texas Health and Safety Code, Texas Clean Air Act (TCAA), §382.085, Unauthorized Emissions Prohibited; and Texas Water Code, §7.002, Enforcement Authority; §7.032, Injunctive Relief; and §7.073, Corrective Action.

The agency regional staff will continue to evaluate reported upset, startup, shutdown, and maintenance events to determine whether it would be appropriate to visit the source site as the event is occurring. Staff will also review previously submitted reports related to the source to determine whether there is a pattern of events that may suggest inappropriate or inadequate responses to previous events. Regional staff may elect to conduct a site inspection specifically related to a source with reoccurring upsets, startups, shutdowns, and/or maintenance or other circumstances as determined by the executive director or other air pollution program with jurisdiction based upon the reported information.

Regional staff will review upset, startup, shutdown, and maintenance reports prior to conducting SIP inspections. While on-site, the inspector will review the source operator's records, which include the records of events below the RQs. A review and evaluation of these records will allow the executive director to identify sources with chronic pattern problems. The executive director will request additional information from the source operator as permitted by §101.11(g) if the executive director discovers a source that appears to have a chronic pattern of upsets, startups, shutdowns, and/or maintenance, they will request additional information from the source operator. The operator will be asked to make the demonstrations found in §101.11. This demonstration must be made in a reasonable amount of time. The executive director will evaluate any information provided by the operator to determine whether the event(s) meet the criteria to be exempt from compliance with emissions limits.

FISCAL NOTE

Bob Orozco, Strategic Planning and Appropriations Section, has determined that for the first five-year period the proposed 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 amendments to Chapter 101, General Rules, concerning U/M reporting.

The purpose of the proposed amendments is to revise and clarify state rules to conform with federal regulations and policies with regard to U/M reporting. The term "upset" generally refers to an unscheduled occurrence of a process or operation that results in unauthorized release of emissions of air contaminants. The proposed amendments would require records of unauthorized emissions at or above the RQ to be maintained and reported to the commission within two weeks of the event instead of the current practice, which requires U/M records to be maintained on site and submitted to the commission on request. Initial reports of upsets with emissions at or above the RQ will continue to be required within 24 hours of discovery of the upset.

The proposed amendments would also require that any request for exemption from emission limits needs to clearly demonstrate that the event was not caused by poor or inadequate design, operation, or maintenance; the event was not that of a recurring pattern indicative of inadequate design, operation, or maintenance; the repairs were made in an expeditious manner; and, if a bypass of control equipment occurred, the bypass was necessary to prevent loss of life, personal injury, or severe property damage. These requirements are intended to make state requirements conform to language in EPA requirements.

In the proposed amendments, the RQ for certain air contaminants has been raised from the default level of 100 pounds to 5,000 pounds because these contaminants are not listed in the CERCLA and the EPCRA. Other compounds were retained at the default RQ because of their potential to emit strong odors at low concentrations or because they are potentially hazardous when released to the air in amounts smaller than 5,000 pounds. The default RQ remains at 100 pounds because certain compounds are potentially hazardous when released into the air in small amounts.

Current rules, which allow routine emissions from maintenance, start-ups, or shut-downs below the RQ to remain unreported, remain unchanged because the majority of start-up, shut-down, and maintenance emissions are routine and predictable, and should have predictable and routine reporting requirements. The proposal retains the requirement that emissions at or above a reportable quantity resulting from maintenance, start-ups, or shut-downs be reported within 24 hours, but adds a requirement for a permanent record to be submitted within two weeks after the event. The proposed amendments would allow any air pollution program having jurisdiction to review U/M records being maintained at a facility.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed amendments to Chapter 101 are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be increased access to excess air emission data and emission-related information resulting from upset, maintenance, startup, and shut-down operations at certain facilities regulated by the TNRCC.

The proposed amendments are intended be consistent with federal regulations and policies while minimizing regulatory reporting requirements. There are no significant additional costs anticipated to any person or business as a result of complying with the proposed amendments to Chapter 101. Since current rules require U/M reports below the RQ to be generated and maintained on-site, the cost of transmitting these reports to the commission's regional offices and the Industrial Emissions Assessment Section are not anticipated to be significant.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No significant adverse economic effects are anticipated to any person, small business, or micro- business as a result of implementing the provisions of the proposed amendments to the rules. The purpose of the proposed amendments to Chapter 101 is to revise and clarify state rules to conform with the federal regulations and policies regarding U/M reporting. While the proposed amendments add the requirement to submit records of unauthorized emissions at or above the RQ to the commission within two weeks, it is anticipated that these costs would not be significant and would have no significant adverse economic effect on small and micro-businesses. This proposal does not require that any new records be created. It only requires that the information contained in those records be transmitted to the commission. Additionally, the commission does not anticipate that a large number of small or micro-businesses use raw material in such quantities as to exceed a reportable quantity in the event of an upset.

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 proposal requires that records of upsets causing releases above an RQ be submitted to the commission within two weeks of the event if any information changes from that transmitted in the original report sent within 24 hours of the event. These are records that are being created under the current rule. The commission believes that the cost of transmitting these records will not add any significant new costs above those incurred by creating the records. This proposal would create a new reportable quantity for certain substances, but does not authorize any new emissions of these substances; thus, it does not cause an adverse effect on the environment or increase risks to human health. Therefore, the rulemaking does not meet the definition of a "major environmental rule." In addition, the proposed amendments to Chapter 101 do not meet any of the four applicability requirements of a "major environmental rule." The proposed amendments do not exceed a standard set by federal law, an express requirement of state law, or exceed a requirement of a delegation agreement. The amendments are also proposed under the specific state laws of Texas Health and Safety Code, TCAA, §§382.011, 382.012, 382.014, 382.016, 382.017, 382.025, and 382.085.

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. These amendments require that records of upsets that cause emissions at or above an RQ be submitted to the commission within two weeks of the event. They do not restrict or limit an owner's right to their property that would otherwise exist in the absence of governmental action and therefore do not constitute a taking.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has reviewed this rulemaking for consistency with the Texas Coastal Management Program (CMP) goals and policies in accordance with the regulations of the Coastal Coordination Council. The commission has determined that this rulemaking relates to an action or actions subject to the 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 Texas Coastal Management Program. For the actions in the proposed amendments to 30 TAC Chapter 101, the commission has determined that the rules are consistent with the applicable CMP goal expressed in 31 TAC §501.12(1) by protecting and preserving the quality and values of coastal natural resource areas and the policy in 31 TAC §501.14(q), which requires the commission to protect air quality in coastal areas. The commission has determined that the specific actions detailed in previous explanations under the headings "Explanation of Proposed Rules," "Public Benefit," "Small Business and Micro-Business Analyses," "Draft Regulatory Impact Analysis," and "Takings Impact Analysis" are consistent with 40 CFR 51 (Requirements for Preparation, Adoption, and Submittal of Implementation Plans) and will not allow any new emissions to the atmosphere. Persons may comment on this consistency review.

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on February 22, 2000, at 10:00 a.m. at the TNRCC Complex in Building E, Room 201S, located at 12100 Park 35 Circle. The hearing will be structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. There will be no open discussion during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs who are planning to attend the 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 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 99050- 101-AI. Comments must be received by 5:00 p.m., February 28, 2000. For further information, please contact Keith Sheedy, P.E., of the Office of Compliance and Enforcement, at (512) 239-1556, or Beecher Cameron, of the Regulation Development Section, at (512) 239-1495.

STATUTORY AUTHORITY

The amendments are proposed under the Texas Health and Safety Code, TCAA, §382.011, which authorizes the commission to control the quality of the state's air; §382.012, which authorizes the commission to develop a plan for control of the state's air; §382.014, which authorizes the commission to require a person whose activities cause emissions of air contaminants to submit information to enable the commission to develop an emission inventory; §382.016, which authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of emissions of air contaminants; §382.017, which provides the commission with the authority to adopt rules consistent with the policy and purposes of the TCAA; §382.025, which authorizes the commission to order actions indicated by the circumstances to control a condition of air pollution; §382.085, which prohibits the unauthorized emissions of air contaminants; and Federal Clean Air Act (FCAA), §7410(a)(F)(iii), which requires correlation of emissions reports and emission-related data by the state agency with any emission limitations or standards established under the FCAA.

The proposed amendments implement §382.011, concerning General Powers and Duties; §382.012, concerning State Air Control Plan; §382.014, concerning Emission Inventory; §382.016, concerning Monitoring Requirements; Examination of Records; §382.017, concerning Rules; and §382.085, concerning Unauthorized Emissions Prohibited.

§101.1. 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, the following terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)-(81)

(No change.)

(82)

Reportable quantity (RQ) - Is as follows:

(A)

for individual air contaminant compounds and specifically listed mixtures, either:

(i)

the lowest of the quantities:

(I)-(II)

(No change.)

(III)

listed as follows:

(-a-)

butanes (all isomers) [ butane ] - 5,000 pounds;

(-b-)

butenes ( all isomers, except 1,3-butadiene) - 5,000 pounds;

(-c-)-(-d-)

(No change.)

[ (-e-)

isobutylene - 5,000 pounds;]

(-e-)

[ (-f-) ] pentanes (all isomers) [ pentane ] - 5,000 pounds;

(-f-)

[ (-g-) ] propane - 5,000 pounds;

(-g-)

[ (-h-) ] propylene - 5,000 pounds;

[ (-i-)

isobutane - 5,000 pounds; or]

(-h-)

ethanol - 5,000 pounds;

(-i-)

isopropyl alcohol - 5,000 pounds;

(-j-)

mineral spirits - 5,000 pounds;

(-k-)

hexanes (all isomers) - 5,000 pounds;

(-l-)

octanes (all isomers) - 5,000 pounds; or

(-m-)

decanes (all isomers) - 5,000 pounds

(ii)

(No change.)

(B)

for mixtures of air contaminant compounds:

(i)

where the relative amount of individual air contaminant compounds is known through common process knowledge or prior engineering analysis or testing, any amount of an individual air contaminant compound which equals or exceeds the amount specified in subparagraph (A) of this paragraph [ definition ];

(ii)

where the relative amount of individual air contaminant compounds in subparagraph (A)(i) of this paragraph [ definition ] is not known, any amount of the mixture which equals or exceeds the amount for any single air contaminant compound that is present in the mixture and listed in subparagraph (A)(i) of this paragraph [ definition ];

(iii)

where each of the individual air contaminant compounds listed in subparagraph (A)(i) of this paragraph [ definition ] are known to be less than 0.02% by weight of the mixture, and each of the other individual air contaminant compounds covered by subparagraph (A)(ii) of this paragraph [ definition ] are known to be less than 2.0% by weight of the mixture, any total amount of the mixture of air contaminant compounds greater than or equal to 5,000 pounds; or

(iv)

where natural gas or [ and ] air emissions from crude oil are known to be in an amount greater than or equal to 5,000 pounds or associated hydrogen sulfide and mercaptans in a total amount greater than 100 pounds, whichever occurs first;

(C)-(D)

(No change.)

(83)-(109)

(No change.)

§101.6. Upset Reporting and Recordkeeping Requirements.

(a)

The following requirements for reportable upsets shall apply.

(1)

(No change.)

(2)

The notification for reportable upsets, except for boilers or combustion turbines referenced in §101.1 of this title (relating to Definitions) in the definition of reportable quantity, shall identify:

(A)

the cause of the upset, if known;

(B)

[ (A) ] the processes and equipment involved;

(C)

[ (B) ] the date and time of the upset;

(D)

[ (C) ] the duration or expected duration of the upset;

(E)

[ (D) ] the compound descriptive type of the individually listed compounds or mixtures of air contaminants in the definition of reportable quantity which are known through common process knowledge or past engineering analysis or testing to exceed the reportable quantity;

(F)

[ (E) ] the estimated quantities for those compounds or mixtures described in subparagraph (E) [ (D) ] of this paragraph except in the case of upsets determined on opacity only, where opacity will be estimated; and

(G)

[ (F) ] the actions taken or being taken to correct the upset and minimize the emissions.

(3)

The notification for reportable upsets for boilers or combustion turbines referenced in the definition of reportable quantity shall identify:

(A)

the cause of the upset, if known;

(B)

[ (A) ] the processes and equipment involved;

(C)

[ (B) ] the date and time of the upset;

(D)

[ (C) ] the duration or expected duration of the event;

(E)

[ (D) ] the estimated opacity; and

(F)

[ (E) ] the actions taken or being taken to correct the upset and minimize the emissions.

(4)

The owner or operator of a facility must report additional or more detailed information on the upset when requested by the executive director or any [ local ] air pollution control agency with jurisdiction .

(5)

(No change.)

(b)

The owner or operator of a facility shall create a final record [ records ] of reportable and non-reportable upsets as soon as practicable, but no later than two weeks after the end of an upset. Final [ The ] records shall be maintained on-site for a minimum of five years and be made readily available upon request to commission staff or personnel of any [ local ] air pollution program with [ having ] jurisdiction. If a site is not normally staffed, records of upsets may be maintained at the staffed location within Texas that is responsible for day-to-day operations of the site. Such records shall identify:

(1)-(4)

(No change.)

(5)

the compound descriptive type of the individually listed compounds or mixtures of air contaminants [ in the definition of reportable quantity ] which are known through common process knowledge or past engineering analysis or testing [ to exceed the reportable quantity ], except for boilers or combustion turbines referenced in the definition of reportable quantity;

(6)-(7)

(No change.)

(c)

For all reportable upsets, if the information required in subsection (b) of this section differs from the information provided in the 24-hour notification under subsection (a) of this section, the owner or operator of the facility shall submit a copy of the final record to the commission's regional office for the region in which the facility is located no later than two weeks after the end of the upset. If the owner or operator does not submit a record under this subsection, the information provided in the 24-hour notification under subsection (a) of this section will be the final record of the upset.

(d)

[ (c) ] The owner or operator of a boiler or combustion turbine referenced in the definition of reportable quantity that is equipped with a continuous emission monitoring system providing updated readings at a minimum 15-minute interval and is required to submit excess emission reports by other state or federal requirements, is exempt from creating , [ and ] maintaining , and submitting records of reportable and non-reportable upsets of the boiler or combustion turbine under subsection (b) of this section [ this section ].

(e)

[ (d) ] The owner or operator of any facility subject to the provisions of this section shall perform, upon request by the executive director or any [ local ] air pollution control agency with jurisdiction , a technical evaluation of the upset event. The evaluation shall include at least an analysis of the probable causes of the upset and any necessary actions to prevent or minimize recurrence. The evaluation shall be submitted in writing to the executive director within 60 days from the date of request. The 60-day period may be extended by the executive director.

§101.7. Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements.

(a)

(No change.)

(b)

The owner or operator shall notify the commission's regional office for the region in which the facility is located and all appropriate local air pollution control agencies at least ten days prior to any maintenance, start-up, or shutdown which is expected to cause an unauthorized emission which equals or exceeds the reportable quantity in any 24-hour period. If notice cannot be given ten days prior to any start-up, shutdown, or maintenance which is expected to cause an unauthorized emission that will equal or exceed a reportable quantity in any 24-hour period, notification shall be given as soon as practicable prior to the maintenance, start-up, or shutdown. Any maintenance, start-up, or shutdown which results in an unexpected unauthorized emission that equals or exceeds the reportable quantity shall be considered a reportable upset and subject to §101.6 of this title (relating to Upset Reporting and Recordkeeping Requirements).

(1)

The notification, except for boilers and combustion turbines referenced in §101.1 of this title (relating to Definitions) in the definition of reportable quantity, shall identify [ include ] :

(A)

the type of activity and the reason for the maintenance, start-up, or shutdown, if known;

(B)

[ (A) ] the expected date and time of the maintenance, start-up, or shutdown;

(C)

[ (B) ] the processes and equipment involved;

(D)

[ (C) ] the expected duration of the maintenance, start-up, or shutdown;

(E)

[ (D) ] the compound descriptive type of the individually listed compounds or mixtures of air contaminants in the definition of reportable quantity which are known through common process knowledge or past engineering analysis or testing to exceed the reportable quantity;

(F)

[ (E) ] the estimated quantities for those compounds or mixtures described in subparagraph (E) of this paragraph [ paragraph (4) of this subsection ], except in the case of unauthorized emissions determined on opacity only, where opacity will be estimated; and

(G)

[ (F) ] the actions taken to minimize the emissions from the maintenance, start-up, or shutdown.

(2)

The notification [ for reportable upsets ] for boilers or combustion turbines referenced in the definition of reportable quantity shall identify [ include ] :

(A)

the type of activity and the reason for the maintenance, start-up, or shutdown, if known;

(B)

[ (A) ] the processes and equipment involved;

(C)

[ (B) ] the date and time of the maintenance, start-up, or shutdown [ upset ];

(D)

[ (C) ] the duration or expected duration of the event;

(E)

[ (D) ] the estimated opacity; and

(F)

[ (E) ] the actions taken or being taken to minimize the emissions from the maintenance , start-up, or shutdown.

(c)

The owner or operator of a facility shall create a final record [ records ] of all maintenance, start-ups, and shutdowns with unauthorized emissions as soon as practicable, but no later than two weeks after the maintenance, start-up, or shutdown. Final [ The ] records shall be maintained on-site for a minimum of five [ two ] years and be made readily available upon request to commission staff or personnel of any [ local ] air pollution program with [ having ] jurisdiction. If a site is not normally staffed, records of maintenance, start-ups, and shutdowns [ upsets ] may be maintained at the staffed location within Texas that is responsible for day to day operations of the site. Such records shall identify:

(1)-(4)

(No change.)

(5)

the compound descriptive type of the individually listed compounds or mixtures of air contaminants [ in the definition of reportable quantity ] which are known through common process knowledge or past engineering analysis or testing [ to exceed the reportable quantity ], except for boilers or combustion turbines referenced in the definition of reportable quantity;

(6)

the estimated quantities for those compounds or mixtures described in paragraph (5) of this subsection, except in the case of unauthorized emissions determined on opacity only, where opacity shall [ will ] be estimated; and

(7)

(No change.)

(d)

For any maintenance, start-up, or shutdown event which causes an unauthorized emission which equals or exceeds the reportable quantity in any 24-hour period, if the information required in subsection (c) of this section differs from the information provided under subsection (b) of this section, the owner or operator of the facility shall submit a copy of the final record to the commission's regional office for the region in which the facility is located no later than two weeks after the end of the maintenance, start-up, or shutdown event. If the owner or operator does not submit a record under this subsection, the information provided under subsection (b) of this section will be the final record of the maintenance, start-up, shutdown event.

(e)

[ (d) ] The owner or operator of a boiler or combustion turbine referenced in the definition of reportable quantity that is equipped with a continuous emission monitoring system providing updated readings at a minimum 15-minute interval and is required to submit excess emission reports by other state or federal regulations, is exempt from creating , [ and ] maintaining , and submitting records of maintenance, start-ups, and shutdowns with unauthorized emissions [ of the boiler or combustion turbine ] under subsection (c) of this section [ this section ].

(f)

[ (e) ] The executive director may specify the amount, time, and duration of emissions that will be allowed during the maintenance, start-up, or shutdown. The owner or operator of any source subject to the provisions of this section shall submit a technical plan for any start-up, shutdown, or maintenance when requested by the executive director. The plan shall contain a detailed explanation of the means by which emissions will be minimized during the maintenance, start-up, or shutdown. For those emissions which must be released into the atmosphere, the plan shall include the reasons such emissions cannot be reduced further.

§101.11. Demonstrations [ Exemptions from Rules and Regulations ].

(a)

Upset emissions are exempt from compliance with air emission limitations established in permits, rules, and orders of the commission, or as authorized by TCAA [ Texas Clean Air Act ], §382.0518(g) if the owner or operator properly complies with the requirements of §101.6 of this title (relating to Upset Reporting and Recordkeeping Requirements) and satisfies all of the following:

(1)

the excess emissions were caused by a sudden, unavoidable breakdown of technology, beyond the control of the owner or operator;

(2)

the excess emissions did not stem from any activity or event that could have been foreseen and avoided, or planned for, and could not have been avoided by better operation and maintenance practices;

(3)

to the maximum extent practicable, the air pollution control equipment or processes were maintained and operated in a manner consistent with good practice for minimizing emissions;

(4)

repairs were made in an expeditious fashion when the operator knew or should have known that applicable emission limitations were being exceeded. Off-shift labor and overtime must have been utilized, to the extent practicable, to ensure that such repairs were made as expeditiously as practicable;

(5)

the amount and duration of the excess emissions (including any bypass) were minimized to the maximum extent practicable during periods of such emissions;

(6)

all possible steps were taken to minimize the impact of the excess emissions on ambient air quality;

(7)

all emission monitoring systems were kept in operation if at all possible;

(8)

the owner or operator's action in response to the excess emissions were documented by properly signed, contemporaneous operation logs, or other relevant evidence; and

(9)

the excess emissions were not part of the recurring pattern indicative of inadequate design, operation, or maintenance.

[ (1)

the owner or operator properly complies with the requirements of §101.6 of this title (relating to Upset Reporting and Recordkeeping Requirements);]

[ (2)

the upset was not reasonably avoidable; and]

[ (3)

appropriate corrective actions were taken as soon as practicable after initiation of the upset.]

(b)

Emissions from any maintenance, start-up, or shutdown are exempt from compliance with air emission limitations established in permits, rules, and orders of the commission, or as authorized by TCAA [ Texas Clean Air Act ], §382.0518(g)[ , ] if the owner or operator properly complies with the requirements of §101.7 of this title (relating to Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements)[ , ] and satisfies all of the following: [ the emissions are minimized to the extent practicable. ]

(1)

the periods of excess emissions from any maintenance, start-up, or shutdown were short and infrequent and could not have been prevented through careful planning and design;

(2)

the excess emissions from any maintenance, start-up, or shutdown were not part of a recurring pattern indicative of inadequate design, operation, or maintenance;

(3)

if the excess emissions from any maintenance, start-up, or shutdown were caused by a bypass (an intentional diversion of control equipment), the bypass was unavoidable to prevent loss of life, personal injury, or severe property damage;

(4)

at all times, the facility was operated in a manner consistent with good practice for minimizing emissions;

(5)

the frequency and duration of operation in maintenance, startup, or shutdown mode was minimized to the maximum extent practicable;

(6)

all possible steps were taken to minimize the impact of the excess emissions from any maintenance, start-up, or shutdown on ambient air quality;

(7)

all emissions monitoring systems were kept in operation if at all possible; and

(8)

the owner or operator's action during the period of excess emissions from any maintenance, start-up, or shutdown were documented by properly signed, contemporaneous operating logs, or other relevant evidence.

(c)-(d)

(No change.)

(e)

Sources emitting air contaminants which cannot be controlled or reduced due to a lack of technological knowledge may be exempt from the applicable rules and regulations when so determined and ordered by the commission [ Texas Air Control Board ]. The commission [ board ] may specify limitations and conditions as to the operation of such exempt sources. The commission will not exempt sources from complying with any federal requirements.

(f)

(No change.)

(g)

The owner or operator has the burden of proof to demonstrate that the criteria identified in subsection (a) of this section for upsets, or in subsection (b) of this section for maintenance, start-up, or shutdown occurrences are satisfied for each occurrence of unauthorized emissions. The executive director or any air pollution program with jurisdiction may request documentation of the criteria in subsections (a) and (b) of this section at their discretion. Satisfying the burden of proof is a condition to unauthorized emissions being exempt under this section.

(h)

Upset emissions and emissions from any maintenance, start-up, or shutdown may not cause or contribute to a condition of air pollution. This section does not limit the commission's power to require corrective action as necessary to minimize emissions, or to order any action indicated by the circumstances to control the condition.

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 January 14, 2000.

TRD-200000226

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: May 17, 2000

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


Chapter 114. CONTROL OF AIR POLLUTION FROM MOTOR VEHICLES

Subchapter B. MOTOR VEHICLE ANTI-TAMPERING REQUIREMENTS

30 TAC §114.21

The Texas Natural Resource Conservation Commission (commission) proposes an amendment to §114.21 (Exclusions and Exceptions). This amendment is proposed to Subchapter B (Motor Vehicle Anti-tampering Requirements) of Chapter 114 (Control of Air Pollution from Motor Vehicles) and to the State Implementation Plan (SIP). The commission proposes these revisions in order to align the statewide anti-tampering provisions for motor vehicle air pollution control systems with the federal requirements outlined in §203(a)(3) of the Federal Clean Air Act (FCAA), (42 United States Code, §7522(a)(3)).

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULE

Federal anti-tampering provisions regarding emission control equipment on motor vehicles and motor vehicle engines prohibit any person from removing or rendering inoperative any emission control device. The only federal exemptions to this requirement are for vehicles used primarily for sanctioned motor sports competition, research, or training purposes. In addition to the federally approved exemptions, §114.21 currently allows for exemptions for vehicles registered as farm vehicles (such as pickup trucks). In addition, exclusions are allowed for vehicles whose owners believe the continued operation of certain emission control equipment will result in a clear danger to persons or property. Historically, the most common emission control equipment being addressed is the catalytic converter. Section 114.21 was adopted in the mid-1980s in response to reported incidents of grass fires resulting from high-operating temperatures believed to be associated with catalytic converters.

In correspondence and discussions in April 1998, the United States Environmental Protection Agency (EPA) requested that the commission phase out the tampering exclusions in §114.21 within two years or face possible sanctions. This request was based on the fact that: 1) Texas is not in compliance with Title 40 Code of Federal Regulations (CFR), Part 85 (Control of Air Pollution from Mobile Sources), 2) Texas is the only state that offers waivers to allow removal of catalytic converters, and 3) newer model year vehicles now have improvements and advancements in technology in both engines and exhaust systems. These improvements include the positioning of the catalytic converter to areas closer to the engine compartment which provides greater ground clearance beneath the vehicle, and new catalytic converter technologies.

As a result, the Technical Analysis Division (formerly the Air Quality Planning and Assessment Division) completed a contract study to re-examine the long-standing concern that hot vehicle exhaust systems, specifically the catalytic converter, can create a potentially hazardous fire-starting situation. The scope of the contract was to determine the risk of fire-starting with new and emerging vehicle engine and catalytic converter technologies. The contract awarded to Wallace Environmental Testing Laboratories, Inc. of Houston, Texas was completed June 30, 1999. The final report submitted by Wallace Environmental Testing Laboratories, Inc. showed that of the 11 vehicles tested, the hottest point on the exhaust system was consistently that point closest to the engine, with or without the catalytic converter. The study indicated that "while peak exhaust system temperatures crossed piloted ignition thresholds for dry grass and pine needles, catalyst removal did not reduce exhaust system temperatures." In addition, removal of the catalytic converter did not change the location of the hottest point on the exhaust system. It was also noted that, in all but one vehicle, the pipe installed to replace the catalytic converter reached a higher temperature than the converter it replaced. In some cases, these temperatures were substantially higher. The report also quantified the effect of the removal of the catalytic converter on a vehicle exhaust emissions. The study showed that after the catalytic converters were removed, carbon monoxide emissions increased by an average of 4,732%, hydrocarbons by an average of 15,730%, and nitrogen oxides by an average of 5,070%.

SECTION BY SECTION DISCUSSION

The proposed rule would revise §114.21(a)(1) by removing the exemption for registered farm vehicles. Section 114.21(b) would be amended by adding the word "Control" to the phrase "DoD Privately Owned Vehicle Import Program" before the word "Program." Section 114.21(c) would be revised by removing the language allowing exclusions and the conditions which must be met to claim an exclusion. In addition, new provisions are proposed in §114.21(c) to exempt registered farm vehicles that have had their emission control equipment modified or removed prior to June 1, 2000, and vehicles that were granted an exclusion prior to June 1, 2000, from the requirements of §114.20 (relating to Maintenance and Operation of Air Pollution Control Systems or Devices Used to Control Emissions from Motor Vehicles). Section 114.21(e)(2) is proposed to be amended to correctly refer to the title of §114.50 as "Vehicle Emissions Inspection Requirements."

FISCAL NOTE

Bob Orozco, Technical Specialist with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed amendments 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.

Federal anti-tampering provisions regarding emission control equipment on motor vehicles and motor vehicle engines prohibit any person from removing or rendering inoperative any emission control device. The proposed amendments to Chapter 114 would make this chapter conform with federal regulations by repealing the current state exemptions for farm vehicles and repealing the exemption for vehicles whose owners allege that the continued operation of certain emission control equipment will result in a clear danger to persons or property. Recent research and testing by Wallace Environmental Testing Laboratories, Inc. has indicated that these exemptions are no longer useful nor necessary. The EPA has requested that the commission phase out the state tampering exemptions or face possible sanctions. Sanctions may include the loss of significant federal funding for transportation projects provided to nonattainment areas.

The proposed amendments would, however, allow existing exempt registered farm vehicles that have had their emission control equipment modified or removed prior to June 1, 2000 to maintain their exemptions. In addition, other vehicles that were granted an exemption prior to June 1, 2000 from the requirements in Chapter 114, may maintain their exemption until such time as the vehicle is sold. When an exempted vehicle is sold, it is the seller's responsibility to bring the vehicle back to its original certified emission control configuration prior to sale. In most situations, the catalytic converter has to be re-installed to bring a vehicle back to its original configuration. The cost of re-installing the catalytic converter is approximately $100 to $250 per converter depending on the vehicle make, model, etc. According to agency records, 832 vehicles have been granted exemptions and the agency has been notified of 37 vehicles that have re-installed the catalytic converter. The provision requiring the vehicle to be configured to its original emission control configuration exists in the current rule and has not changed so there is no fiscal implication attributable to the proposed amendments.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed amendments to Chapter 114 are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be potentially improved air quality associated with eliminating the option to remove catalytic convertors from motor vehicles, potential reductions in emissions of carbon monoxide, hydrocarbons, nitrogen oxides, and potential reductions in ozone.

The intent of the proposed amendments to Chapter 114 is to make state rules conform to federal regulations by repealing the current state exemption for farm vehicles and the exclusion for vehicles whose owners allege that the continued operation of certain emission control equipment will result in a clear danger to persons or property. Recent research and testing by Wallace Environmental Testing Laboratories, Inc. has indicated that these exemptions are no longer useful nor necessary. The EPA has requested that the commission phase out the tampering exemptions or face possible sanctions.

The proposed amendments apply to persons in Texas owning or operating a motor vehicle or motor vehicle engine who maintain or request an exemption from the rules regarding a system or device used to control emissions from the motor vehicle in compliance with federal motor vehicle rules. Specifically, the amendments apply to registered farm vehicles and vehicles whose owners allege that the continued operation of certain emission control equipment will result in a clear danger to persons or property. There are no significant fiscal implications anticipated to individuals or businesses as a result of administration or enforcement of the proposed amendments because vehicles which hold an exemption prior to June 1, 2000 will be allowed to maintain/continue their exemption until such time as they sell the vehicle.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

There are no anticipated fiscal implications to small businesses and micro-businesses as a result of implementing the proposed amendments. The proposed amendments to Chapter 114 repeal the current state exemptions for farm vehicles and the exemption for vehicles whose owners allege that the continued operation of certain emission control equipment will result in a clear danger to persons or property. Recent research and testing by Wallace Environmental Testing Laboratories, Inc. has indicated that these exemptions are no longer useful nor necessary. The EPA has requested that the commission phase out the tampering exemption or face possible sanctions.

The proposed amendments allow existing exempt registered farm vehicles that have had their emission control equipment modified or removed prior to June 1, 2000 to maintain their exemptions. In addition, other vehicles that were granted an exemption prior to June 1, 2000 from the requirements in Chapter 114, may maintain their exemption until such time as the vehicle is sold. When an exempted vehicle is sold, it is the seller's responsibility to bring the vehicle back to its original certified emission control configuration prior to sale. In most situations, the catalytic converter has to be re- installed to bring a vehicle back to its original configuration. The cost of re-installing the catalytic converter is approximately $100 to $250 per converter depending on the vehicle make, model, etc. According to agency records, 832 vehicles have been granted exemptions and the agency has been notified of 37 vehicles that have re-installed the catalytic converter. The provision requiring the vehicle to be configured to its original emission control configuration exists in the current rule, §114.20(c), and has not changed so there is no fiscal implication attributable to the proposed amendments.

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 114 repeal certain exemptions while allowing existing exemptions until the vehicle is sold. The proposed amendments do not impose additional fiscal requirements to existing requirements and may have the positive effect of preventing the cost of removing pollution control devices on certain motor vehicles. The proposed amendments are not anticipated to have an adverse affect in a material way on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, §2001.0225 only applies to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program or; 4) adopt a rule solely under the general powers of the agency instead of under a specific state law. This rulemaking does not meet any of these four applicability requirements of a "major environmental rule." Specifically, the proposed amendments do not exceed federal standards but were developed to make state rules conform to federal regulations. This proposal does not exceed an express requirement of state law nor exceed a requirement of a delegation agreement. The proposed amendments were not developed solely under the general powers of the agency but were specifically developed to make state rules conform to federal regulations. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for this rule in accordance with Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the rulemaking is to remove specific exemptions and exclusions relating to the removal of air pollution control systems (catalytic converters) from motor vehicles and does not create a burden on private real property. Therefore, this revision will not constitute a takings under Texas Government Code, Chapter 2007.

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 Resource Code, §§33.201 et seq. ), and the commission's rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the 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 rules of the Coastal Coordination Council, and has determined that the action is consistent with the applicable CMP goals and policies. The CMP policy applicable to this rulemaking action is the policy (31 TAC §501.14(q)) that commission rules comply with federal regulations at 40 CFR 51 (Requirements for Preparation, Adoption, and Submittal of Implementation Plans) and 40 CFR 85 (Control of Air Pollution from Mobile Sources) to protect and enhance air quality in the coastal are (31 TAC §501.14(q)). The effect of the proposed rules will be to make the state rules, which are currently less stringent than the federal rules, essentially equivalent to the federal rules found in 40 CFR 85. No new sources of air contaminates will be authorized by the proposed rule amendments, and emissions from mobile sources will be reduced as a result of not allowing vehicles to remove emissions control equipment. Therefore, in compliance with 31 TAC §505.22(e), the commission affirms that this 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 February 22, 2000, at 2:00 p.m., in Building F, Room 3202A 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, an agency staff member 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

Written 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 99066-114-AI. Comments must be submitted no later than 5:00 p.m. on February 28, 2000. For further information, please contact Alan Henderson at (512) 239-1510 or Bob Reese at (512) 239-1439.

STATUTORY AUTHORITY

The amendment is proposed under the Texas Health and Safety Code, Texas Clean Air Act (TCAA), §382.011, which authorizes the commission to control the quality of the state's air; §382.012, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air; §382.017, which authorizes the commission to adopt rules consistent with the policy and purposes of the TCAA; §382.019, which authorizes the commission to adopt rules to control and reduce emissions from engines used to propel land vehicles; and §382.039, which authorizes the commission to develop and implement transportation programs and other measures necessary to demonstrate attainment and protect the public from exposure to hazardous air contaminants from motor vehicles.

This amendment implements TCAA, §382.012, relating to State Air Control Plan; §382.019, relating to Methods Used to Control and Reduce Emissions from Land Vehicles; and §382.039, relating to Attainment Program.

§114.21. Exemptions [ Exclusions and Exceptions ].

(a)

The following exemptions shall apply to specified motor vehicles or motor vehicle engines . [ : ]

(1)

Motor vehicles or motor vehicle engines which are [ registered as farm vehicles with the Motor Vehicle Division of the Texas Department of Highways and Public Transportation and are intended solely or primarily for use on a farm or ranch; or are ] intended solely or primarily for legally sanctioned motor competitions, for research and development uses, or for instruction in a bona fide vocational training program where the use of a system or device would be detrimental to the purpose for which the vehicle or engine is intended to be used are exempt from the provisions of §114.20(a), (b), and (d) of this title (relating to Maintenance and Operation of Air Pollution Control Systems or Devices Used to [ To ] Control Emissions From Motor Vehicles).

(2)

(No change.)

(b)

Vehicles belonging to members of the U.S. Department of Defense (DoD) participating in the DoD Privately Owned Vehicle Import Control Program or other persons being transferred to a foreign country are exempt from the provisions of §114.20(a), (b), and (d) of this title if the following conditions are met . [ : ]

(1)-(4)

(No change.)

(c)

Motor vehicles are exempt from the provisions of §114.20(a), (b), and (d) of this title if the following conditions apply: [ Any person owning or operating a motor vehicle or motor vehicle engine may apply to the executive director for an exclusion from the provisions of §114.20(a) and (b) of this title. Such an exclusion may be granted if the following conditions are met. ]

(1)

the motor vehicles are registered as farm vehicles with the Vehicle Titles and Registration Division of the Texas Department of Transportation, are intended solely or primarily for use on a farm or ranch, and their air pollution control devices or systems were removed or made inoperable prior to June 1, 2000; or [ The application shall include the applicant's full name, business address, and telephone number. A single vehicle and vehicle engine shall be specified in the application and must be identified by the unique vehicle identification number assigned to that vehicle by the manufacturer and by the manufacturer's engine family number. ]

(2)

the motor vehicles were granted an exemption from the provisions of §114.20(a) and (b) of this title by the Texas Natural Resource Conservation Commission (commission) or its predecessor agency prior to June 1, 2000. [ The air pollution control systems or devices on the vehicle or vehicle engine which would be covered by the exclusion shall be specified in the application. ]

[ (3)

A demonstration shall be made in the application that provides adequate justification for special consideration of the specified vehicle under the provisions of this chapter. This demonstration shall include, but shall not be limited to, the following information necessary to determine that the use of certain pollution control devices or systems on the vehicle to be covered by the exclusion would result in a clear danger to persons or property or would be detrimental to the purpose for which the vehicle is intended to be used: ]

[ (A)

Proposed use of the vehicle and description of adverse circumstances; ]

[ (B)

Locations where the vehicle will primarily be operated; ]

[ (C)

Estimated length of time the vehicle is expected to be operated in adverse circumstances; ]

[ (D)

Estimated percentages of the time the vehicle will primarily be operated in adverse circumstances and on public roadways; ]

[ (E)

History of problems related to the use of specified control devices or systems; ]

[ (F)

Evidence of the potential hazards and consequences of operating the vehicle for the intended use with the identified control devices or systems in place. ]

(A)

[ (4) ] A [ The applicant shall agree and ensure that a ] copy of the exemption [ exclusion ] shall be kept with the vehicle at all times and shall be available for inspection by representatives of the commission [ Texas Natural Resource Conservation Commission ], the Texas Department of Public Safety (DPS), or any other law enforcement agency upon request. The approved exclusion shall also be presented to the certified vehicle inspector before each annual vehicle safety inspection of the vehicle as administered by the DPS.

(B)

[ (5) ] The exemption [ applicant shall agree and ensure that the exclusion ] shall be void and all pollution control systems and devices replaced on the vehicle and/or engine covered by the exclusion when the vehicle changes ownership or is no longer used for the purpose identified in the exclusion application. The executive director shall be informed in writing prior to the change of ownership or usage.

[ (6)

The applicant shall comply with all special provisions and conditions specified by the executive director in the exclusion.]

(d)

(No change.)

(e)

Federal, state, and local agencies or their agents which sell abandoned, confiscated, or seized vehicles and any commercial vehicle auction facilities are exempt from the provisions of §114.20(c) of this title if the following conditions are met.

(1)

The Texas Department of Public Safety (DPS) [ DPS ] motor vehicle safety inspection certificates must be removed from the vehicle and destroyed before the vehicle may be offered for sale or displayed for public examination.

(2)

All potential buyers of the vehicle must be informed that deficiencies may be present in the vehicle pollution control systems on the vehicle. The buyer must also be informed of the liabilities to the buyer under §114.20 of this title and §114.50 of this title (relating to Vehicle Emissions Inspection Requirements) of operating the vehicle prior to the adequate restoration of all pollution control systems or devices on the vehicle as originally equipped. The seller of the vehicle shall provide to the buyer a written acknowledgment of the receipt of this information which must be signed by the buyer prior to completion of the sales transaction. The seller shall retain a copy of this signed acknowledgment and shall make it available, upon request.

(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 January 14, 2000.

TRD-200000230

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: February 28, 2000

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


Chapter 331. UNDERGROUND INJECTION CONTROL

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §§331.9, 331.11, 331.131, 331.132, and 331.133, Underground Injection Control.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Chapter 331, relating to Underground Injection Control, regulates all injection wells and activities related to injection wells regulated by the commission under Texas Water Code, Chapter 27. The proposed amendments to Subchapter A, General Provisions, will clarify authorization by rule requirements related to Class V injection wells. The proposed amendments to Subchapter H, Standards for Class V Wells, will update construction and closure standards to those standards and practices currently accepted as being more protective of groundwater. The proposed changes to Chapter 331 will also ensure consistency with drilling standards associated with similar well types adopted by the Texas Department of Licensing and Regulation (TDLR), which regulates the conduct of licensed well drillers.

SECTION BY SECTION DESCRIPTION

The proposed amendment to §331.9(a) adds a reference to closure standards for Class V injection wells authorized under this rule. The current language in §331.9(a) refers to closure standards in §331.46 which are appropriate for Class I injection wells. The proposed amendment to §331.9(a) will state that the appropriate closure standards for Class V injection wells are located in §331.133.

The proposed amendment to §331.9(b)(2)(E) prohibits injection into Class V wells unless the construction standards in Subchapter H, and in the case of aquifer storage wells, both Subchapters H and K, are met.

Proposed new §331.11(a)(4)(B) will clarify that closed loop injection wells are contained within the Class V category. Under §331.11(a)(4), Class V wells are any injection well that is not a Class I, III, or IV, under the jurisdiction of the commission. This section provides several examples of Class V wells, but it does not specifically list closed loop injection wells (a vertical closed water circulating loop capable of absorbing or rejecting heat as part of heat pump system), even though this type of well is also a Class V well (as provided under 40 Code of Federal Regulations §144.3 and §144.6). Amending §331.11(a)(4) to include closed loop injection wells will provide additional protection of groundwater resources because the commission can ensure that this type of well is constructed and closed in accordance with the standards in Subchapter H.

The commission is also proposing amendments to Subchapter H, §§331.131-331.133, relating to Standards for Class V Wells. The proposed amendment to §331.131, Applicability, replaces the agency name "Texas Water Commission" with "commission." The proposed amendment also adds language that references Subchapter K, Additional Requirements for Class V Aquifer Storage Wells, to the applicable sections in Subchapter H. It also clarifies that aquifer storage wells must also comply with Subchapter K.

Several amendments to §331.132, relating to Construction Standards, are being proposed to provide clarification for the regulated community and update the standards to currently accepted well construction that are consistent with existing well drilling standards for water well drillers. With the transfer of the licensing and regulation of water well drillers and pump installers from the commission to the TDLR in 1997, some of the construction standards for Class V injection wells that were contained within the commission rules regulating drillers were inadvertently repealed by the commission when the rules governing the licensing of drillers were repealed as part of the transfer of the program. The construction standards proposed in §331.132 clarify that these construction standards for the design and closure of Class V injection wells are part of the commission's underground injection control program and not just a requirement for drillers.

The proposed amendment to §331.132(a) provides authorization to the executive director to approve alternative standards to those contained in §331.132. Proposed changes to §331.132(a) also require all Class V wells to be installed by a driller licensed by the TDLR. As a result of this proposed amendment, all Class V wells are to be installed by a licensed professional. The use of a licensed water well driller, who is trained and experienced in current well construction practices, will help ensure the proper construction of these wells and should ensure that the necessary level of groundwater protection is maintained once the well is put into operation.

The proposed amendments to §331.132(b) provide clarification for the regulated community on the reporting requirements related to the construction and operation of a Class V injection well. Except for closed loop injection and air conditioning return flow wells, new §331.132(b)(1)(A) provides that prior to construction of the well, the owner/operator must submit all information required under §331.10(a) to the executive director. Except for closed loop injection wells and air conditioning return flow wells, proposed §331.132(b)(1)(B) provides that after completion of construction, a report to the executive director must be submitted on the state well report form which is provided by the TDLR. This subparagraph has also been modified to provide for submission of this form within 30 days from the date the well construction is completed.

A proposed new §331.132(b)(2) addresses reporting requirements for closed loop injection wells and air conditioning return flow wells. The paragraph requires no reporting prior to construction and requires the submittal of the state well report form to the executive director within 30 days from the date the well construction is complete. Information on any additives, constituents, or fluids other than potable water that are used in the closed loop system must be reported in the water quality section on the state well report form.

A proposed new §331.132(c)(2) is added to address the general sealing of the annular space and casing for injection wells and the filling of the top of the well bore for closed loop injection wells. Proposed amendments to §331.132(d) provide standards for surface completion for all types of wells except for below grade closed loop inject wells, which are required to follow the provisions in §331.132(c)(2). Proposed amendments to §331.132(d)(2) provide standards for completion at the top of the casing. The provisions related to flood elevation have been moved to new §331.132(g) and the provisions related to capping or completion to prevent pollutants from entering the well, formerly in §331.132(g), have been moved to §331.132(d)(2). Provisions under §331.132(e) have been moved to §331.132(d). Provisions related to the use of a pitless adaptor, which is a sanitary underground discharge assembly providing a watertight subsurface connection for buried pump discharge or suction lines, are proposed for deletion because this technology is not applicable to Class V injection wells.

A proposed new §331.132(e) clarifies the construction standards for wells utilizing a steel sleeve or PVC sleeve. The proposed new §331.132(f) clarifies and consolidates all the standards for the placement of Class V injection wells in flood-prone areas and specifies that a Class V injection well should not be located in areas subject to flooding. If a well must be placed in a flood-prone area, the proposed subsection provides for appropriate and more stringent construction standards. For the purpose of this subsection, a flood-prone area is defined as that area within the 100-year flood plain as determined on the Federal Emergency Management Agency (FEMA) Flood Hazard Maps for the National Flood Insurance Program. If FEMA has conducted a flood insurance study of the area, and has mapped the 50-year flood plain, then the smaller geographic areas within the 50-year boundary are considered to be flood prone.

A proposed new §331.132(g) clarifies and consolidates other protective measures that must be taken when a well is installed. These measures prohibit the commingling of water from different zones of water quality, which causes degradation of any aquifer containing fresh water and requires zones containing undesirable groundwater be sealed off and confined to the zone of origin. The proposed amendments to §331.132(g)(2) clarify that undesirable groundwater is water that is injurious to human health and the environment or water that can cause pollution to land or other waters and the well should be constructed so that the undesirable groundwater is isolated from any underground source of drinking water and confined to the zone of origin.

The proposed amendments to §331.133(a) clarify that it is the responsibility of the owner/operator of a Class V injection well to properly plug the well when its use is permanently discontinued or the well is abandoned. The proposed amendment to §331.133(b) provides for the method that will be used to pressure fill the well with cement. The proposed amendments to §331.133(c) clarify that an alternative method to subsection (b) for well closure can be used as long as the well is not completed through a zone or zones containing undesirable groundwater. Proposed amendments to §331.133(d) clarify that an alternative method to subsection (b) for well closure can be used for plugging Class V injection wells that have encountered undesirable groundwater. A proposed modification in subsection (d) changes the recommended bentonite grout weight from 9.5 pounds per gallon to 9.1 pounds per gallon. This change in grout weight reflects a change in well plugging technology and common practice which is equally effective in preventing groundwater contamination.

FISCAL NOTE

Bob Orozco, Technical Specialist with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed amendments are in effect, there will be no significant adverse fiscal implications for the commission and other units of state or local government as a result of administration or enforcement of the proposed amendments.

The purpose of the proposed amendments to Chapter 331, Underground Injection Control, is to clarify existing rules and definitions, update references, clarify and update Class V injection well standards to currently accepted well construction and closure standards, and to provide conformity with standards for drillers installing similar well types adopted by the TDLR. A Class V injection well is, generally, a well for injecting nonhazardous fluids into or above formations that contain underground sources of drinking water. The proposed amendments also clarify that it is the responsibility of the owner/operator of a Class V injection well to properly plug a well when its use is permanently discontinued or the well is abandoned. The proposed amendments will add closed loop injection wells to the list of injection wells included in the definition of a Class V well and provide construction standards for these wells that are consistent with standards promulgated by TDLR. The proposed amendments also provide authorization to the executive director to approve alternative standards to those contained in the rules and requires all Class V wells to be installed by a driller licensed by the TDLR. The proposed amendments will also clarify that TDLR provides the state well report form formerly provided by the commission and the deadline by which the form must be filed with the commission.

PUBLIC BENEFIT

Mr. Orozco has also determined that for each year of the first five years the proposed amendments to Chapter 331 are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be clarification and updating of standards and requirements that provide necessary, reasonable, and adequate protection of groundwater and are consistent with standards promulgated by TDLR for drillers installing similar type wells.

There are no significant adverse economic impacts anticipated to any person or business required to comply with the sections as proposed. The proposed amendments to Chapter 331 clarify existing rules and definitions, clarify and update Class V injection well standards, conform to currently accepted well construction and closure standards, and are consistent with current standards for drillers installing similar well types adopted by the TDLR.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No significant adverse economic effects are anticipated to any person, small business, or micro- business as a result of implementing the provisions of the proposed amendments to Chapter 331 of the rules. The intent of the proposed amendments to Chapter 331 is to clarify existing rules and definitions, clarify and update Class V injection well standards to currently accepted well construction and closure standards, and provide consistency with standards for drillers installing similar well types adopted by the TDLR. Since the proposed standards are consistent with those required by TDLR for licensed water well drillers, adoption of the proposed amendments should have no significant fiscal impact.

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 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 rules are intended to protect the environment and reduce risks to human health from environmental exposure. Although certain standards have been revised, the proposed amendments reflect what is considered to be current well drilling practice and is not anticipated to have an adverse 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 applies only to a major environmental rule the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law. The proposed amendments do not exceed a standard set by federal law, exceed an express requirement of state law, nor exceed a requirement of a delegation agreement. The proposed amendments were not developed solely under the general powers of the agency, but are proposed under authority of Chapter 27 of the Texas Water Code, which authorizes the commission to regulate injection wells. The state standards do not exceed the standard set by federal law because federal regulations, required under Title 42 Public Health and Welfare, §330h(b)(1), contain the minimum requirements and restrictions on a state injection well program and include requirements that prohibit injection which is not authorized by permit or rule and require that no state program which provides for authorization of underground injection by rule may promulgate rules which endanger drinking water sources.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code, §2007.043. Promulgation and enforcement of these rules will not affect private real property because the rulemaking clarifies the definition of a Class V well to include a closed loop injection well. The rulemaking also proposes clearer guidance for the construction and closure standards for Class V wells under the jurisdiction of the commission.

Private property is not affected or burdened by these rules because the rules do not restrict or limit an owner's right to property that would otherwise exist in the absence of the proposed changes. In other words, a property owner may still use his property in any manner he wishes, in accordance with applicable state law and rules of the commission.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

This rulemaking is not subject to the Texas Coastal Management Plan (CMP). The rulemaking proposes clearer guidance for the construction and closure of Class V wells under the jurisdiction of the commission. The executive director has reviewed the rulemaking and found that the proposed rules and rule changes do not govern specific actions identified in the CMP as being subject to consistency with the CMP, including air pollution emissions, on-site sewage disposal systems, or underground storage tanks expressly identified under Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the CMP. Neither do the proposed rules or rule changes qualify as an individual agency action subject to 31 TAC §505.11(a).

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on February 23, 2000 at 10:00 a.m. in Building F, Room 2210 at the Texas Natural Resource Conservation Commission complex, located at 12100 Park 35 Circle. Individuals may present oral or written statements when called upon in order of registration. Open discussion will not occur during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes 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 Lisa Martin, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 99009-331-WT. Comments must be received by 5:00 p.m., February 28, 2000. For further information, please contact Mary Ambrose, Regulatory Development Section, (512) 239-4813.

Subchapter A. GENERAL PROVISIONS

30 TAC §331.9, §331.11

STATUTORY AUTHORITY

The amendments are proposed under Texas Water Code, Chapter 27. Section 27.003 provides that it is the policy of the state and the purpose of Chapter 27 to maintain the quality of fresh water in the state to the extent consistent with the public health and welfare, the operation of existing industries, and the economic development of the state, to prevent underground injection that may pollute fresh water, and to require the use of all reasonable methods to implement this policy. Section 27.019 requires the commission to adopt rules and procedures reasonably required for the performance of its powers and duties under Chapter 27.

Texas Water Code, §5.103 and §5.105, authorize the commission to adopt rules necessary to carry out its responsibilities and duties under the Texas Water Code and other laws of Texas.

No other codes or statutes will be affected by this proposal.

§331.9.Injection Authorized by Rule.

(a)

Plugging and abandonment of a well authorized by rule at any time after January 1, 1982, shall be accomplished in accordance with the standards of §331.46 of this title (relating to Closure Standards). Class V wells shall be closed according to standards under §331.133 of this title (relating to Closure Standards).

(b)

Injection into Class V wells [ Wells ], unless otherwise provided , is authorized by virtue of this rule . Injection [ ; injection ] into new Class V wells used for the disposal of over 1,000 gallons per day of sewage or sewage effluent must be authorized by [ apply for and obtain ] a permit from the commission before operations begin .

(1)

(No change.)

(2)

An owner or operator of a Class V well is prohibited from injecting into the well:

(A)-(B)

(No change.)

(C)

upon failure to submit inventory information in a timely manner under §331.10 of this title (relating to Inventory of Wells Authorized by Rule); [ or ]

(D)

upon failure to comply with a request for information from the executive director in a timely manner ; or [ . ]

(E)

upon failure to comply with provisions contained in Subchapter H of this chapter (relating to Standards for Class V Wells) and, if applicable, Subchapter K of this chapter (relating to Additional Requirements for Class V Aquifer Storage Wells).

(c)-(d)

(No change.)

§331.11.Classification of Injection Wells.

(a)

Injection wells within the jurisdiction of the commission are classified as follows . [ : ]

(1)

Class I : [ . ]

(A)

wells used by generators of hazardous wastes or owners or operators of hazardous waste management facilities to inject hazardous waste, other than Class IV wells ; [ . ]

(B)

(No change.)

(2)-(3)

(No change.)

(4)

Class V. Generally, wells covered by this paragraph inject nonhazardous [ non- hazardous ] fluids into or above formations that contain USDWs. Class V wells are injection [ Injection ] wells within the jurisdiction of the commission, but are not included in Classes I, III, or IV. Class V wells include, but are not limited to:

(A)

air conditioning return flow wells used to return to the supply aquifer the water used for heating or cooling in a heat pump;

(B)

closed loop injection wells which are closed system geothermal wells used to circulate fluids including water, water with additives, or other fluids or gases through the earth as a heat source or heat sink;

(C)

[ (B) ] cesspools or other devices that receive wastes, which have an open bottom and sometimes have perforated sides;

(D)

[ (C) ] cooling water return flow wells used to inject water previously used for cooling;

(E)

[ (D) ] drainage wells used to drain surface fluid, primarily storm runoff, into a subsurface formation;

(F)

[ (E) ] dry wells used for the injection of wastes into a subsurface formation;

(G)

[ (F) ] recharge wells used to replenish the water in an aquifer;

(H)

[ (G) ] salt water intrusion barrier wells used to inject water into a freshwater aquifer to prevent the intrusion of salt water into the fresh water;

(I)

[ (H) ] sand backfill wells used to inject a mixture of water and sand, mill tailings , or other solids into mined out portions of subsurface mines;

(J)

[ (I) ] septic system wells used:

(i)

to inject the waste or effluent from a multiple dwelling, business establishment, community , or regional business establishment septic tank; or

(ii)

for a multiple dwelling, community , or regional cesspool ; [ . ]

(K)

[ (J) ] subsidence control wells (not used for the purpose of oil or natural gas production) used to inject fluids into a non-oil or gas producing zone to reduce or eliminate subsidence associated with the overdraft of fresh water; and

(L)

[ (K) ] aquifer storage wells used for the injection of water for storage and subsequent retrieval for beneficial use.

(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 January 14, 2000.

TRD-200000222

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: May 31, 2000

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


Subchapter H. STANDARDS FOR CLASS V WELLS

30 TAC §§331.131 - 331.133

STATUTORY AUTHORITY

The amendments are proposed under Texas Water Code, Chapter 27. Section 27.003 provides that it is the policy of the state and the purpose of Chapter 27 to maintain the quality of fresh water in the state to the extent consistent with the public health and welfare, the operation of existing industries, and the economic development of the state, to prevent underground injection that may pollute fresh water, and to require the use of all reasonable methods to implement this policy. Section 27.019 requires the commission to adopt rules and procedures reasonably required for the performance of its powers and duties under Chapter 27.

Texas Water Code, §5.103 and §5.105, authorize the commission to adopt rules necessary to carry out its responsibilities and duties under the Texas Water Code and other laws of Texas.

No other codes or statutes will be affected by this proposal.

§331.131.Applicability.

The sections of this subchapter apply to all new Class V injection wells under the jurisdiction of the commission [ Texas Water Commission ]. Aquifer storage wells must also comply with Subchapter K of this chapter (relating to Additional Requirements for Class V Aquifer Storage Wells) in addition to this subchapter.

§331.132.Construction Standards.

(a)

All Class V wells shall be completed in accordance with the [ following ] specifications contained in this section , unless otherwise authorized by the executive director, and shall be installed by a water well driller licensed by the Texas Department of Licensing and Regulation [ commission ].

(b)

Reporting.

(1)

General.

(A)

Prior to construction. Except for closed loop injection and air conditioning return flow wells, information required under §331.10(a) of this title (relating to Inventory of Wells Authorized by Rule) shall be submitted to the executive director prior to construction.

(B)

After completion of construction. Except for closed loop injection and air conditioning return flow wells, the state well report form, provided by the Texas Department of Licensing and Regulation under 16 TAC §76.700 (relating to Responsibilities of the Licensee-State Well Reports), shall be completed and submitted to the executive director within 30 days from the date the well construction is completed.

(2)

Closed loop and air conditioning return flow wells. No reporting prior to construction is necessary for these two types of wells. A state well report form provided by the Texas Department of Licensing and Regulation under 16 TAC §76.700 shall be completed and submitted to the executive director within 30 days from the date the well construction is completed. Any additives, constituents, or fluids (other than potable water) that are used in the closed loop injection well system shall be reported in the Water Quality Section on the state well report form.

[ (b)

For all Class V wells, a form provided by the executive director or the form of the Water Well Drillers Board shall be completed and submitted to the executive director.]

(c)

Sealing of casing.

(1)

General. Except for closed loop injection wells, the [ The ] annular space between the borehole and the casing shall be filled from ground level to a depth of not less than ten [ 10 ] feet below the land surface or well head with cement slurry. In areas of shallow, unconfined groundwater aquifers, the cement need not be placed below the static water level. In areas of shallow, confined groundwater aquifers having artesian head, the cement need not be placed below the top of the water-bearing strata.

(2)

Closed loop injection well. The annular space of a closed loop injection well shall be backfilled to the total depth with impervious bentonite or a similar material. Where no groundwater or only one zone of groundwater is encountered, sand, gravel, or drill cuttings may be used to backfill up to 30 feet from the surface. The top 30 feet shall be filled with impervious bentonite. Alternative impervious materials may be authorized by the executive director upon request.

(d)

Surface completion.

[ (d)

In all wells where plastic casing is used, a concrete slab or sealing block shall be placed above the cement slurry around the well at the ground surface. ]

(1)

All wells must have a concrete slab or sealing block placed above the cement slurry around the well at the ground surface.

(A)

[ (1) ] The slab or block shall extend at least two feet from the well in all directions and have a minimum thickness of four inches and shall be separated from the well casing by a plastic or mastic coating or sleeve to prevent bonding of the slab to the casing.

(B)

[ (2) ] The surface of the slab shall be sloped so that liquid will [ to ] drain away from the well.

(C)

Closed loop injection wells which are completed below grade are exempt from the surface completion standards in this paragraph; however, the provisions in subsection (c)(2) of this section must be followed.

(2)

[ (3) ] The top of casing shall extend a minimum of 12 inches [ one foot ] above the original ground surface [ or known flood elevation ]. The well casing shall be capped or completed in a manner that will prevent pollutants from entering the well.

(e)

Use of a steel or PVC sleeve. The steel sleeve shall be a minimum of 3/16 inches in thickness and/or the PVC sleeve shall be a minimum of Schedule 80 sun-resistant and 24 inches in length, and shall extend 12 inches into the cement slurry.

[ (e)

In wells where steel casing is used, a slab or block as described in subsection (d)(1)of this section will be required above the cement slurry, except when a pitless adapter is used. ]

[ (1)

Pitless adapters may be used in such wells provided that:]

[ (A)

the adapter is welded to the casing or fitted with another suitably effective seal; and]

[ (B)

the annular space between the borehole and the casing is filled with cement to a depth not less than 15 feet below the adapter connection.]

[ (2)

The casing shall extend a minimum of one foot above the original ground surface or known flood elevation.]

(f)

Well placement in a flood-prone area. All wells shall be located in areas not generally subject to flooding. If a well must be placed in a flood-prone area, it shall be completed with a watertight sanitary well seal, so as to maintain a junction between the casing and injection tubing, and a steel sleeve extending a minimum of 36 inches above ground level and 24 inches below the ground surface shall be used. For the purpose of this subsection, a flood-prone area is defined as that area within the 100-year flood plain as determined on the Federal Emergency Management Agency (FEMA) Flood Hazard Maps for the National Flood Insurance Program. If FEMA has conducted a flood insurance study of the area, and has mapped the 50-year flood plain, then the smaller geographic areas within the 50-year boundary are considered to be flood prone. Closed loop injection wells and air conditioning return flow wells are exempt from the completion standards in this subsection.

(g)

Other protection measures.

(1)

[ (f) ] Commingling prohibited. All wells, especially those that are gravel packed, shall be completed so that aquifers or zones containing waters that are known to differ significantly in chemical quality are not allowed to commingle through the borehole-casing annulus or the gravel pack and cause quality degradation of any aquifer containing fresh water [ zone ].

[ (g)

The well casing shall be capped or completed in a manner that will prevent pollutants from entering the well. ]

(2)

[ (h) ] Undesirable groundwater. When undesirable groundwater, water that is injurious to human health and the environment or water that can cause pollution to land or other waters, [ water ] is encountered in a Class V well, the well shall be constructed so that the undesirable groundwater is isolated from any underground source of drinking water [ water shall be sealed off ] and is confined to the zone(s) of origin.

§331.133.Closure Standards.

(a)

It is the responsibility of the owner and/or operator [ landowner or person having the well drilled, deepened, or otherwise altered, ] to plug or have plugged, under standards set forth in this section [ these sections ], a Class V well which is to be permanently discontinued or abandoned.

(b)

Closure shall be accomplished by removing all of the removable casing and the entire well shall be pressure filled via a tremie pipe with cement from bottom to the land surface [ filled with cement to land surface ].

(c)

As an alternative to [ In lieu of ] the procedure in subsection (b) of this section , if a class V well is not completed through zones containing undesirable groundwater, water that is injurious to human health and the environment or water that can cause pollution to land or other waters, [ and if the use of a Class V well that does not contain undesirable water is to be permanently discontinued ], the well may be filled with fine sand, clay, or heavy mud followed by a cement plug extending from land surface to a depth of not less than ten [ 10 ] feet below the land surface .

(d)

As an alternative to [ In lieu of ] the procedure in subsection (b) of this section , if a Class V well is completed through zones containing undesirable groundwater, water that is injurious to human health and the environment or water that can cause pollution to land or other waters [ and if the use of a Class V well that does contain undesirable water is to be permanently discontinued ], either the zone(s) containing undesirable groundwater [ water ] or the fresh groundwater [ water ] zone(s) shall be isolated with cement plugs and the remainder of the wellbore filled with bentonite grout (9.1 pounds per gallon mud or more) followed by [ sand, clay, or heavy mud to form a base for ] a cement plug extending from land surface to a depth of not less than ten [ 10 ] feet below the land surface .

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 January 14, 2000.

TRD-200000223

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: May 31, 2000

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