TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 106. PERMITS BY RULE

The Texas Natural Resource Conservation Commission (commission) proposes new §106.8, Recordkeeping; and §106.263, Routine Maintenance, Start-up and Shutdown of Facilities, and Temporary Maintenance Facilities; amendments to §106.181, Small Boilers, Heaters, and Other Combustion Devices; §106.355, Pipeline Metering, Purging, and Maintenance; §106.454, Degreasing Units; and the repeal of §106.263, Repairs and Maintenance. The proposed new §106.8 would be placed in Chapter 106, Subchapter A, General Requirements. Subchapter A would be submitted to the United States Environmental Protection Agency (EPA) as a revision to the state implementation plan.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The proposed new §106.8 would specify recordkeeping requirements for Chapter 106, Permits by Rule. While considering the implementation of Senate Bill 766 in 2000, the commission received comments from the EPA stating that Chapter 106 should include requirements that a source operating under a permit by rule (PBR) be able to continuously demonstrate compliance with the general requirements for use of a PBR and the specific conditions of the individual PBR under which the source is authorized. Because of these developments and in order to ensure enforceable limits on potential to emit for insignificant facilities, the commission examined its recordkeeping requirements under Chapter 106 and is proposing amendments.

There are two distinct types of PBRs. Many PBRs only list the type of facility and state that it is permitted by rule and have no restrictions other than the general restrictions applicable to all PBRs as contained in §106.4, Requirements for Permitting by Rule. These "one-liners" have no recordkeeping requirements imposed by this proposal. Other PBRs have specific conditions and may or may not individually require recordkeeping.

Those who claim a PBR should be aware of their compliance status and should have records to demonstrate compliance with the emission limitations and conditions available at the time of an investigation. The commission believes that recordkeeping requirements should be kept to a minimum and avoid duplication. The proposed recordkeeping requirements will be described in detail in the SECTION BY SECTION DISCUSSION, but generally the recordkeeping requirements will be proposed as follows. Facilities authorized under the one-liners will not have new recordkeeping requirements imposed under this proposal. While these facilities are expected to comply with the general restrictions in §106.4, the commission expects that verification of compliance would be intuitively obvious on inspection or could be demonstrated by records otherwise kept for business purposes. Facilities currently required to keep records under a specific PBR would generally be affected only by the record retention requirements of this proposal. Other PBRs have specific construction or operational restrictions but do not contain recordkeeping requirements. It is expected that these facilities should be able to meet the proposed recordkeeping requirements with records kept for normal business purposes such as material use and purchase records.

The second major concept of this proposal concerns the authorization of routine maintenance, start-up, and shutdown emissions under a PBR. Under the current version of §106.263, Repairs and Maintenance, a significant amount of emissions (more than one occurrence of up to 25 tons) may be authorized. This is not consistent with the maintenance reporting and exemption requirements in §101.7, Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements and §101.11, Exemptions from Rules and Regulations. Under Texas Health and Safety Code, Texas Clean Air Act (TCAA), §382.057, the commission may exempt from permitting certain changes at facilities that will not make a significant contribution of air contaminants to the atmosphere. This proposal would limit the emissions from multiple maintenance, start-up, and shutdown occurrences, as well as from facility operations associated with maintenance activities, by requiring cumulative accounting of emissions on an annual basis to ensure that the emissions are insignificant. This proposal would also limit the use of §106.263 to maintenance, start-up or shutdown activities that result in emissions below the reportable quantity (RQ) as defined in §101.1(82), Definitions. Maintenance, start-up, or shutdown emissions at or above the RQ must either be reported under §101.7 or incorporated into the facility's permit. Other amendments to this chapter are intended to clarify applicability for temporary maintenance facilities.

The proposed amendments to §106.181 would authorize the use of used oil for fuel in small boilers and heaters. The proposed amendments to §106.355 would clarify the authorization of air emissions for certain pipeline construction and operation and establish the relation of the section to the Chapter 101, general air quality rules on maintenance. The proposed amendment to §106.454 would clarify the intended requirements for remote reservoir degreasers.

SECTION BY SECTION DISCUSSION

Subchapter A: General Requirements

The proposed new §106.8 would specify requirements for recordkeeping and compliance demonstrations for all PBRs claimed. The creation and retention of appropriate records showing continuing compliance with PBR requirements has always been a responsibility of the facility owner or operator in order to operate under a PBR. The new section would specify the types of records that would be required to demonstrate compliance with the general conditions of §106.4 and the condition of the individual PBR claimed. This new section will affect all PBR claims, regardless of the date when the owner or operator began using the PBR.

Proposed new §106.8(a) would state that owners or operators of facilities operating under de minimis status as defined in §116.119, De Mimimis Facilities or Sources, are not affected by this rule because no authorization is required. The commission does not require records for de minimis sources.

The proposed new section also outlines the requirements for two types of PBRs in §106.8(b) and (c), those referred to as "one-liners" (including all of Chapter 106, Subchapter C, Domestic and Comfort Heating and Cooling) and those which have specific conditions, respectively. One-liners are those PBRs which only name the type of facility, designate it as permitted by rule, and impose no other conditions in the PBR itself. Owners or operators of facilities authorized by one-liners would not be required to maintain ongoing compliance records but only collect and present information when individually requested by the executive director. Compliance with all historical PBRs which meet the one-liner criteria would be verified in the same way. The claimant would only need to provide information, such as business records, to demonstrate compliance with §106.4. All historical PBRs can be found on the commission's website.

The commission has determined the following current sections of Chapter 106 meet the one-liner criteria and are referenced as Exhibit A: 1) Subchapter C, Domestic and Comfort Heating and Cooling; §106.101, Domestic Use Facilities; §106.102, Comfort Heating; and §106.103, Air Conditioning and Ventilation Systems; 2) Subchapter D, Analysis and Testing; §106.121, Hydraulic and Hydrostatic Testing Equipment; §106.122, Bench Scale Laboratory Equipment; §106.123, Vacuum-producing Devices for Laboratory Use; 3) Subchapter F, Animal Confinement; §106.163, Race Tracks, Zoos, and Animal Shelters; 4) Subchapter I, Manufacturing; §106.228, Platen Presses for Laminating; §106.229, Textile Dyeing and Stripping Equipment; 5) Subchapter J, Food Preparation and Processing; §106.242, Food Preparation; §106.244, Ovens, Barbecue Pits, and Cookers; 6) Subchapter K, General; §106.265, Hand-held and Manually Operated Machines; §106.266, Vacuum Cleaning Systems; 7) Subchapter L, Feed, Fiber, and Fertilizer; Division 1, Feed, §106.282, Feed Grinding Facilities; Division 2, Fiber, §106.291, Cotton Gin Stands; Division 3, Fertilizer, §106.301, Aqueous Fertilizer Storage; 8) Subchapter M, Metallurgy; §106.312, Wax Melting and Application; §106.314, Shell Core and Mold Machines; §106.316, Metal Inspection; §106.317, Miscellaneous Metal Equipment; §106.318, Die Casting Machines; 9) Subchapter N, Mixers, Blenders, and Packaging; §106.331, Cosmetics Packaging and Pharmaceutical Packaging and Coating; 10) Subchapter Q, Plastics and Rubber; §106.391, Rubber and Plastic Curing Presses; §106.394, Plastic Compression and Injection Molding; 11) Subchapter R, Service Industries; §106.411, Steam or Dry Cleaning Equipment; §106.412, Fuel Dispensing; §106.413, Bond Lining to Brake Shoes; §106.414, Packaging Lubes and Greases; §106.415, Laundry Dryers; §106.419, Photographic Process Equipment; 12) Subchapter S, Surface Coating; §106.431, Milling and Grinding of Coatings and Molding Compounds; §106.434, Powder Coating Facility; 13) Subchapter T, Surface Preparation; §106.451, Wet Blast Cleaning; 14) Subchapter U, Tanks, Storage, and Loading; §106.471, Storage or Holding of Dry Natural Gas; and 15) Subchapter X, Waste Processing and Remediation; §106.531, Sewage Treatment Facility.

Owners or operators of all other facilities which are constructed, modified, or operated under a PBR would be required to maintain records to demonstrate that the facility meets the conditions of §106.4 and the applicable PBR conditions. The form and content of these records would be specified in proposed new §106.8(c)(1) - (5).

Proposed new §106.8(c)(1) would require that the owner or operator of a facility permanently retain a copy of the PBR and general requirements that authorized the facility's construction or changes. The PBR and general requirements of Chapter 106 (previously §116.211, Standard Exemption List) in effect at the time of the original authorization have historically remained in effect as long as the facility is in existence and is not reconstructed or changed. By keeping a copy of the PBR and general requirements in effect, both the commission and the claimant understand any conditions and restrictions which may apply to the facility. The commission maintains historical and current copies of all PBRs and general requirements on its web site to assist the regulated community in finding the appropriate claim. Copies are available at http://tnrcc.state.tx.us/air/nsr_permits/exempt.htm or by contacting the executive director. These historical files also help the regulated community and commission staff in those cases where the actual construction or installation date cannot be determined. In those cases, the commission would accept a demonstration of compliance with a PBR and general requirements in effect when a clear record of the existence of the facility has been established. The claimant could also choose to demonstrate compliance with any PBR and general requirements in effect after the date a facility was shown to be in existence.

Proposed new §106.8(c)(2) would require claimants to keep sufficient information to demonstrate that the facility meets the requirements of §106.4 or the general conditions in effect at the time of construction or change and meets all the conditions and requirements of the specific PBR claimed including, but not limited to, air contaminant emission type and quantities, equipment or operational specifications, and emission abatement limitations. The information and data would have to be sufficient to demonstrate compliance with all applicable requirements of §106.4. PBRs may contain conditions to ensure emissions from facilities are insignificant in accordance with TCAA, §382.057, Exemption, and §382.05196, Permits by Rule.

Detailed emission calculations are not necessary for demonstrating compliance with all PBRs; therefore, proposed new §106.8 would not require emission calculations for all PBR holders. Records of some operating parameters are sufficient to demonstrate compliance with most PBRs. All PBR holders are encouraged to use records they currently keep (production records, purchase records, etc.) to demonstrate compliance with the emission limitations. Recordkeeping frequency would vary depending upon the specific characteristics of a given facility. Records of applicable operating parameters or emission calculations, whichever is being used, would have to be summarized as often as needed (if at all) to ensure that the owner or operator is aware of and can demonstrate they are within the emission limitations. The limits are expressed in terms of a rolling 12-month basis. PBR holders would have to factor the 12-month rolling basis into their recordkeeping procedures.

In some cases, the only required calculation would be a one-time calculation to demonstrate a facility is incapable of exceeding the limitations. In this case, the PBR holder would be aware of their compliance status at all times by virtue of the one-time calculation. No monthly or yearly summary would be needed. In other cases, the PBR holder may be able to determine operating limits, such as the total number of operating hours per month and/or production rates that will ensure the facility remains below the emission limits. The owners or operators of these facilities would only need to summarize the relevant operating parameter on a monthly basis. Owners or operators of facilities with more variable operations, such as a batch operation with varying emission rates and operating hours, might need to calculate their emissions on a regular basis.

A PI-7 Permit by Rule Registration Form, with required documentation, and a Permit by Rule General Requirements Checklist could be used by claimants to demonstrate initial compliance with this proposed section.

Other records that would be required under the proposed new §106.8(c)(2) may include information regarding public notice where a site or commission account has more than one facility authorized under a PBR and the combined emissions of these facilities exceed the limitations of §106.4(a)(4). In addition, a record of the date of construction or modification of the PBR facility would demonstrate compliance with §106.4(a)(5). Conditions which cannot change, such as distances from permanently affixed facilities to any property line at the time of construction, or ambient operating temperatures with no external, reaction, or raw material heating source, would not need to be recorded. However, where equipment could be moved with relative ease, new offsite receptors could be built, or external heat sources are on site, pictorial records (construction drawings, photographs, temperature readings) might be appropriate.

Since mechanisms and documents to address limitations, conditions, and emission requirements vary widely based on the level of detail in each PBR, the commission intends to provide guidance by developing and expanding checklists for all current PBRs. These checklists are intended for use by the commission and facility operators. Operators may also receive compliance assistance from the commission's small business and local government assistance representatives. Checklists and guidance documents would be posted on the commission's web site. These checklists would assist the commission and claimants in identifying which types of records might be used for compliance with the proposed new §106.8(c)(2). To minimize duplication and unnecessary paperwork, the commission will focus on records which may already be maintained by claimants for other business reasons. The type of records generally envisioned include, but are not limited to, production records, operating hours, material purchase or usage notations, and/or emissions calculations. For example, compliance with the emission limits of sulfur dioxide from a boiler firing natural gas could be demonstrated by records of the sulfur content in the fuel gas (provided by the supplier) and the volume of gas fired in the boiler (purchase receipts). Another example would be a surface coating operation under §106.454 which currently requires extensive materials and usage records to be created and summarized over various periods of time.

The commission reviewed all PBRs to determine which claimants would most likely be affected by the requirements of the proposed new §106.8(c)(2). Three distinct categories of current PBRs have been identified by the commission: 1) PBRs which have neither specific conditions nor recordkeeping requirements (referred to as one-liners in Exhibit A); 2) PBRs which contain specific recordkeeping requirements (Exhibit B); and 3) PBRs which contain specific emission, operational, or abatement conditions but no recordkeeping requirements (Exhibit C). Numerous PBRs currently contain recordkeeping requirements, and these operators would be moderately affected by the requirement to demonstrate their compliance with §106.4. In many cases, claimants using these PBRs would only have to retain the records that the individual PBR requires. These PBRs include the following and are referenced as Exhibit B: 1) Subchapter G, Combustion; §106.183, Boilers, Heaters, and Other Combustion Devices; 2) Subchapter I, Manufacturing; §106.224, Aerospace Equipment and Parts Manufacturing; §106.225, Semiconductor Manufacturing; §106.226, Paints, Varnishes, Ink, and Other Coating Manufacturing; and §106.231, Manufacturing, Refinishing, and Restoring Wood Products; 3) Subchapter K, General; §106.261, Facilities (Emission Limitations); §106.263, Repairs and Maintenance; 4) Subchapter O, Oil and Gas; §106.355, Metering, Purging, and Maintenance of Pipelines; 5) Subchapter P, Plant Operations; §106.375, Aqueous Solutions for Electrolytic and Electroless Processes; 6) Subchapter Q, Plastics and Rubber; §106.392, Thermoset Resin Facilities; 7) Subchapter R, Service Industries; §106.417, Ethylene Oxide Sterilizers; §106.418, Printing Presses; 8) Subchapter S, Surface Coating; §106.433, Surface Coat Facility; §106.436, Auto Body Refinishing Facility; 9) Subchapter T, Surface Preparation; §106.452, Dry Abrasive Cleaning; §106.454, Degreasing Units; 10) Subchapter V, Thermal Control Devices; §106.493, Direct Flame Incinerators; §106.494, Pathological Waste Incinerators; and §106.496, Trench Burners; 11) Subchapter W, Turbines and Engines; §106.512, Stationary Engines and Turbines; and 12) Subchapter X, Waste Processes and Remediation; §106.533, Water and Soil Remediation.

For owners or operators of facilities authorized by PBRs listed in Exhibit B, proposed new §106.8 would require them to retain records for five years and to be able to demonstrate compliance with the limits of §106.4 on a rolling 12-month basis. In most cases, the types of records that are already required by the PBR would satisfy the requirements of proposed new §106.8.

Other PBRs have specific construction or operational restrictions but do not contain recordkeeping requirements. Under proposed new §106.8(c)(2), owners or operators of these facilities would be required to create operational records to demonstrate compliance with individual PBR conditions, as well as the general limitations of §106.4. These PBRs include the following and are referenced as Exhibit C: 1) Subchapter D, Analysis and Testing; §106.124, Pilot Plants; 2) Subchapter E, Aggregate and Pavement; §106.141, Batch Mixers; §106.142, Rock Crushers; §106.143, Wet Sand and Gravel Production; §106.144, Bulk Mineral Handling; §106.145, Bulk Sand Handling; §106.146, Soil Stabilization Plants; §106.147, Asphalt Concrete Plants; §106.148, Material Unloading; §106.149, Sand and Gravel Processing; §106.150, Asphalt Silos; 3) Subchapter F, Animal Confinement; §106.161, Animal Feeding Operations; §106.162, Livestock Auction Facilities; 4) Subchapter G, Combustion; §106.181, Small Boilers, Heaters, and Other Combustion Devices; §106.182, Ceramic Kilns; 5) Subchapter I, Manufacturing; §106.221, Extrusion Presses; §106.223, Saw Mills; §106.227, Soldering, Brazing, Welding; 6) Subchapter J, Food Preparation and Processing; §106.241, Slaughterhouses; §106.243, Smokehouses; §106.245, Ethyl Alcohol Facilities; 7) Subchapter K, General; §106.262, Facilities (Emission and Distance Limitations) (Previously SE 118); §106.264, Replacements of Facilities; 8) Subchapter L, Feed, Fiber, and Fertilizer; Division 1, Feed, §106.281, Feed Milling; §106.283, Grain Handling, Storage, and Drying; Division 3, Fertilizer, §106.302, Portable Pipe Reactor; 9) Subchapter M, Metallurgy; §106.311, Crucible or Pot Furnace; §106.313, Tumblers for Cleaning or Deburring Metal; §106.315, Sand or Investment Molds; §106.317, Miscellaneous Metal Equipment; §106.319, Foundry Sand Mold Forming Equipment; §106.320, Miscellaneous Metallic Treatment; §106.321, Metal Melting and Holding Furnaces; §106.322, Furnaces To Reclaim Aluminum or Copper; 10) Subchapter N, Mixers, Blenders, and Packaging; §106.332, Chlorine Repackaging; §106.333, Water-based Adhesive Mixers; 11) Subchapter O, Oil and Gas; §106.351, Salt Water Disposal (Petroleum); §106.352, Oil and Gas Production Facilities; §106.353, Temporary Oil and Gas Facilities; §106.354, Iron Sponge Gas Treating Unit; 12) Subchapter P, Plant Operations; §106.371, Cooling Water Units; §106.372, Industrial Gases; §106.373, Refrigeration Systems; §106.374, Lime Slaking Facilities; §106.376, Decorative Chrome Plating; 13) Subchapter Q, Plastics and Rubber; §106.393, Conveyance and Storage of Plastic and Rubber Material; §106.395, Equipment for Mixing Plastic and Rubber (No Solvent); §106.396, Equipment for Mixing Plastic and Rubber (With Solvent); 14) Subchapter R, Service Industries; §106.416, Uranium Recovery Facilities; 15) Subchapter S, Surface Coating; §106.432, Dipping Tanks and Containers; 16) Subchapter T, Surface Preparation; §106.453, Washing and Drying of Glass and Metal (Previously SE 42); 17) Subchapter U, Tanks, Storage, and Loading; §106.472, Organic and Inorganic Liquid Loading and Unloading; §106.473, Organic Liquid Loading and Unloading; §106.474, Hydrochloric Acid Storage; §106.475, Pressurized Tanks or Tanks Vented to a Firebox; §106.476, Pressurized Tanks or Tanks Vented to Control; §106.477, Anhydrous Ammonia Storage; §106.478, Storage Tank and Change of Service; 18) Subchapter V, Thermal Control Devices; §106.491, Dual Chamber Incinerators; §106.492, Flares; §106.495, Heat Cleaning Devices; 19) Subchapter W, Turbines and Engines; §106.511, Portable and Emergency Engines and Turbines; and 20) Subchapter X, Waste Processing and Remediation; §106.532, Water and Wastewater Treatment; §106.534, Municipal Solid Waste Landfills and Transfer Stations.

For owners or operators of facilities authorized by PBRs listed in Exhibit C, proposed new §106.8 would require them to keep records related to emissions, to retain records for five years, and to be able to demonstrate compliance with the limits of §106.4 on a rolling 12-month basis.

Proposed new §106.8(c)(3) would require that owners or operators maintain records at the facility site unless the facility normally operates unattended, in which case the records must be maintained at the location within the state which controls operations of the facility.

Proposed new §106.8(c)(4) would require that records be made available in a reviewable format at the request of personnel from the commission or any air pollution control program having jurisdiction. This implies no requirement as to the type of media on which the records are retained, and the commission expects that a combination of computer files, strip charts, graphs, drawings, pictures, operator logs, and other paper files (calculations, raw data, assumptions, and summaries) would be used. The commission may require that these records be duplicated when necessary at the facility owner or operator's expense and submitted to the commission upon request. In cases where records are maintained at a location other than the facility, the commission may require that the records be delivered or mailed at operator's expense to a designated location.

Proposed new §106.8(c)(5) would require that owners or operators of facilities authorized by PBR begin keeping records as required under proposed new §106.8(c)(2) on January 1, 2002. As with all air permits and authorizations issued by the commission, annual emission limits would have to be met on a rolling 12-month basis. Owners or operators would be required to keep records to demonstrate ongoing compliance with this section. A rolling 12-month period means that records must be available to demonstrate compliance with conditions of the individual PBR and §106.4 for any 12-month period within the five-year retention period. Additionally, any data for the partial month of an inspection should be available.

The five-year retention requirement is consistent with federal operating permit requirements and other commission general rules and supercedes any shorter periods noted in specific PBRs. Since new source review actions are applicable requirements for Title V operating permits, the more stringent five-year retention will apply to all major sources, regardless of the two-year retention requirement in §116.115. The five-year retention period will begin on January 1, 2002. The commission is soliciting comments on the five-year retention requirement, especially as it affects small businesses and minor sources, as a part of this notice.

Subchapter G: Combustion

The proposed amendments to §106.181 would revise the title of the section and revise and restructure the text of the rule to clearly state that this PBR applies only to small combustion units burning used oil.

Subchapter K: General

The current §106.263 has historically been used to authorize temporary facilities and a wide variety of maintenance activities. The commission proposes its repeal in order to replace it with a proposed new §106.263 which would establish conditions for routine maintenance, routine start-up and shutdowns, and temporary facilities associated with maintenance to ensure air emissions from these activities and facilities meet the intent of TCAA, §382.057, Exemptions. Many maintenance activities have the potential to emit significant quantities of air contaminants which otherwise should be controlled or eliminated.

Under TCAA, §382.057, the commission may establish rules for "changes within facilities if it is found upon investigation that such changes will not make a significant contribution of air contaminants to the atmosphere." Proposed new §106.263 could be claimed for insignificant air emissions associated with the types of activities identified in the section. If a facility could not meet the conditions of proposed new §106.263, the owner or operator would be required to either obtain authorization under an air permit or meet the requirements for exemption of unauthorized emissions under §101.11. These mechanisms are used for different circumstances of maintenance, start-up, and shutdown emissions. Emissions which are routine but insignificant (as defined by §106.4 and specific PBR limits) and are not otherwise covered by an air quality permit limit could be authorized under the new §106.263. Significant emissions which are predictable and routine should be included in the appropriate air quality permit. If total emissions from maintenance, start-up, or shutdown activities could not meet the requirements of the proposed §106.263 and §106.4 and they are not otherwise authorized by a permit, the owner or operator would need to report the emissions under §101.7 and meet the requirements for an exemption under §101.11.

Proposed new §106.263(b) would establish the types of maintenance, start-up and shutdown activities, and temporary maintenance facilities which are excluded from authorization under this PBR. This PBR is not intended to authorize permanent facilities. In addition, the proposed section would not be applicable to facilities which do not have to obtain authorization under Chapter 106, but instead meet the requirements of §116.119 for de minimis facilities. Finally, some activities and temporary maintenance facilities are authorized under other PBRs in Chapter 106. Specifically listed in the rule are several PBRs which the commission has historically viewed as including or addressing maintenance, start-up, or shutdown activity emissions. These PBRs include: §106.231, Manufacturing, Refinishing, and Restoring Wood Products; §106.351, Salt Water Disposal (Petroleum); §106.352, Oil and Gas Production Facilities; §106.355, Metering, Purging, and Maintenance of Pipelines; §106.392, Thermoset Resin Facilities; §106.418, Printing Presses; §106.433, Surface Coat Facilities; §106.435, Classic or Antique Automobile Restoration Facilities; §106.436, Auto Body Refinishing Facility; §106.353, Temporary Oil and Gas Facilities; and §106.512, Stationary Engines and Turbines. If facilities are operating under these designated PBRs, use of the proposed new §106.263 would not be allowed in order to prevent multiple uses of PBRs authorizing maintenance emissions.

Proposed new §106.263(c) would establish the types of maintenance, start-up and shutdown activities, and temporary maintenance facilities which can be authorized under this PBR. This subsection defines routine activities as those which occur at a frequency of at least once per year so as to describe what types of activities are reasonably expected to be part of normal operations. Activities occurring less frequently than this would not be considered by the commission to be part of normal facility operations. If not authorized under either Chapter 106 or Chapter 116, Control of Air Pollution by Permits for New Construction or Modification, these infrequent events should be reported under §101.7.The commission is soliciting comments regarding the definition of "routine" in this section.

Proposed new §106.263(c)(2) would cover maintenance which has the potential to emit air contaminants at existing, permanent facilities. Maintenance and associated start-up and shutdown activities are routine or planned activities which keep a facility at normal operating parameters and are usually preventative in nature. Since maintenance is part of normal operations and, in many cases, facilities and processes usually require shutdown for these activities, additional emissions associated with start-up and shutdown are included in this definition. The proposed definition addresses all aspects of maintaining a facility and includes: 1) cleaning where materials (water, steam, high pressure air, solvent, detergent) are added to begin to clean or restore internal or external surfaces; 2) facility operation in a unique mode to clean (such as firing in a combustion chamber to burn off deposits or pumps which are directed to circulate solvent for restoration); or 3) the addition of lubrication and corrosion protection. The proposed rule also specifies that maintenance does not include enhancements nor construction, installation, or operation of permanent facilities. Enhancements are any physical changes or changes in method of operation with insignificant emissions increases, including changes at an existing facility that result in improvements in unit capacity/capability beyond previously existing performance levels. These enhancements would be specifically excluded from authorization under this PBR. Potential emissions associated with enhancements and other changes would have to be authorized under a permit or another PBR.

Proposed new §106.263(c)(3) would establish an authorization mechanism for recurring start-ups and shutdowns. Consistent with Chapter 116 policies and guidance, routine start-ups and shutdowns would be authorized under this PBR and are expected to have emissions similar in nature to those during start-up and shutdown for maintenance activities. The commission believes facilities exist in at least one of three states or modes: start-up, normal operation, or shutdown. Start-up is the set of activities and associated emissions that prime and prepare a facility to transition from no production to production at the normal operating range. Normal operation includes the common activities of the facility, including maintenance. Shutdown is the period beginning where the facility is brought below the normal operating range to ceasing operation, and includes the emptying and degassing/depressurization of the equipment. Shutdown ends at the point start-up begins. An upset can occur during any of these states or modes, and emissions resulting from the upset are not intended to be covered in this rule or by a permit and would need to be reported under §101.6, Upset Reporting and Recordkeeping Requirements. The commission is soliciting comments regarding the proposal to authorize routine start-up and shutdown emission in this PBR.

Proposed new §106.263(c)(4) would include the construction and operation of temporary facilities used to perform maintenance work. Several types of temporary maintenance facilities have historically been registered and authorized under the PBR in the current §106.263. In many cases, emissions from temporary maintenance facilities occur at the same time as other maintenance activities; therefore, keeping these requirements in a single PBR would reduce duplication of records. The proposed new §106.263(c)(4)(A) - (E) would specifically define five types of temporary facilities which would be covered under this rule. These temporary maintenance facilities are included in this proposal because they have been historically authorized by the commission and have a record of insignificant emissions. No other temporary maintenance facilities have been included in this rule, but the commission is soliciting comment on further inclusions.

Proposed new §106.263(c)(4)(A) would include abrasive blasting, surface preparation, and surface coating operations on immovable, fixed structures. Historically, the commission has authorized these maintenance activities under the current §106.263 if the blasting, surface preparation, and coating supplies and equipment are taken to the object fixed in place and there is no practical means of moving the object to a designated area for surface preparation. These fixed objects include, but are not limited to, highway bridges, water towers, and buildings. If an object can be taken to a designated area, then other PBRs such as §106.433, Surface Coat Facility, and §106.452, Dry Abrasive Cleaning, would apply. Proposed new §106.263(c)(4)(B) would cover engines and turbines during testing and repair. Since 1995, the commission has allowed testing of an engine or turbine to be considered part of the maintenance on that unit and authorized emissions associated with testing under the current §106.263. The stationary engines and turbines historically authorized under §106.512, along with their routine maintenance, start-up, and shutdown, would not be covered under the proposed new §106.263. During the next fiscal year, the commission plans to develop a standard permit to cover these facilities. Until a new PBR or standard permit is adopted which specifically addresses engine and turbine testing, the proposed authorization as a temporary facility in §106.263 is necessary.

Proposed new §106.263(c)(4)(C) would include engines, compressors, and pumps which are associated with maintenance activities. These additional units are frequently seen in the field when maintenance activities occur and have historically been authorized under the PBR in the current §106.263. The use of this PBR is not intended for replacement units, but only additional facilities which are needed during maintenance. Proposed new §106.263(c)(4)(D) would define several abatement units associated with controlled degassing and cleaning of vessels. While abatement would not specifically be required by this PBR, the proposed subparagraph would clarify under what conditions control equipment, when used, would be authorized by this PBR. Finally, §106.263(c)(4)(E) would define temporary piping and associated facilities which are needed to bypass a unit or section of pipeline during maintenance situations. Such bypass lines reduce or eliminate emissions during maintenance.

Proposed new §106.263(d) would address several limits associated with the activities and facilities covered under this PBR. Proposed new §106.263(d)(1)(A) - (E) would require the control systems identified in the proposed new §106.263(c)(4)(D) to meet collection and destruction or removal efficiencies specified in other current commission regulations when the systems are used. The limits of §106.263(d)(2) - (5) are intended to ensure compliance with the TCAA. Proposed new §106.263(d)(2) and (3) outline limitations on activity emissions in accordance with TCAA, §382.002. Emission releases for any maintenance, start-up, or shutdown event are limited to less than those values defined in §101.1(82), Reportable Quantities. If activity emissions are greater than these values, by not authorizing them in this PBR, the commission would be able to evaluate the event prior to occurrence to ensure emissions are adequately controlled or minimized to the greatest extent possible. Maintenance, start-up, or shutdown emissions above the reportable quantities must be reported and qualify for exemption under §101.7 and §101.11. The commission is soliciting comments on the RQ limitations proposed as discussed earlier in this paragraph, particularly for oxides of nitrogen.

Additionally, proposed new §106.263(d)(3) would address the accumulation of emissions over an annual period of time to ensure compliance with the intent of Chapter 106 to authorize insignificant emissions. This paragraph would limit the accumulation (stacking) of emissions over an annual period by specifying that the emissions resulting from maintenance, start-up, and shutdown, as well as associated temporary facilities at a site, must collectively be less than any applicable emission limit in §106.4. By definition, individual uses of PBRs authorize insignificant emissions. To date, there has been no general mechanism by which the commission limits multiple uses of PBRs. This is problematic because multiple uses of insignificant authorizations may result in significant emissions, based on quantity or toxicity. The requirement that emissions for maintenance and repair at a site do not collectively and cumulatively exceed the emission requirements in §106.4 for any 12-month period is intended to reduce unaccounted for emissions associated with maintenance and repair.

To ensure that construction of all facilities and associated emissions are properly authorized under either Chapter 116 or Chapter 106 in accordance with TCAA, §382.051, proposed new §106.263(d)(4) and (5) contain certain limitations. These paragraphs would require maintenance, start-up, or shutdown activities that cannot meet the emission limitations in proposed §106.263(d)(2) and (3) to either obtain a permit under Chapter 116 or report and meet the requirements for exemption under §101.7 and §101.11. In addition, proposed new §106.263(d)(5) would require an owner or operator of a temporary facility that cannot meet the emissions limitations of proposed new §106.263(d)(3) to obtain a preconstruction permit authorization under Chapter 116.

Proposed new §106.263(d)(6) would also outline requirements and restrictions for activities and facilities to meet the requirements of the TCAA. This proposed paragraph would establish the length of time temporary facilities are expected to operate at a given location when being used to support maintenance activities. In most cases, it is not expected that these facilities would operate for more than 180 days. The proposed rule addresses maintenance activities requiring the operation of temporary facilities for more than 180 days by requiring registration of that facility with a PI-7 Registration Form. The commission is expecting to use these registrations as one of the bases for possible future rule changes after evaluation of short-term emission rates and associated potential impacts to ensure protection of the public health and welfare.

Proposed new §106.263(e) would require specific records that demonstrate compliance with all conditions of the section. These records would have to be maintained in a format consistent with the format required by §101.7.

Review of quantifications of air emissions resulting from maintenance and repair activities or temporary facilities associated with maintenance will be used to determine whether short-term emission rates and the scope of the PBR should be addressed in future regulations.

Subchapter O: Oil and Gas

The proposed amendments to §106.355 would slightly modify the section title to become "Pipeline Metering, Purging, and Maintenance" and clarify language and add conditions limiting certain emissions, defining the relationship of this rule to others that are possibly applicable, and requiring recordkeeping. The wording of the current section is not clear with respect to what pipelines the commission intends to cover with this rule. The phrase "between separate sites, as defined in §122.10(29) of this title (relating to Definitions)" would be added to clarify that the section has historically covered pipeline operations which are separate from process piping at a single site. Process piping is covered by other sections of Chapter 106 or under an air quality permit. Section 106.352, Oil and Gas Production Facilities, covers oil and gas exploration and production pipelines. The commission determined §106.352 covers gas pipelines up to, but not beyond, the natural gas liquids plant serving the line, as well as crude oil pipelines all the way to the initial refining operation.

Proposed §106.355(2) would exclude uncontrolled releases of butadiene to the atmosphere. Butadiene is highly toxic compound currently being reviewed by the commission. Under the current version of this rule, up to one ton of butadiene can be released to the atmosphere during any metering, purging, or maintenance operation. By continuing to authorize controlled emissions of butadiene through combustion in a smokeless flare, the proposed amendment would continue to allow necessary maintenance and purging while being more protective of the public's health and safety. A negligible amount of butadiene is specified for those cases where it may apply.

Proposed §106.355(3) would exempt certain pipeline maintenance activities involving sweet natural gas from recordkeeping requirements because generally sweet natural gas is not a threat to the general public or their property. This paragraph would also specifically prohibit venting of sweet natural gas near a known or suspected ignition source to ensure public health and safety.

Proposed §106.355(4) would require the regulated community to meet the requirements of this section in its entirety or to obtain authorization under Chapter 116. It would also specify that complying with §101.7 and meeting the requirements in §101.11 would be necessary in those cases where authorization under this section or Chapter 116 is not possible. This wording is necessary to ensure the regulated community is aware of its obligations and choices under the TCAA and the rules of the commission.

Proposed §106.355(5) would require recordkeeping to demonstrate compliance with the section. Operations authorized by proposed §106.355 would likely include many different points on one or more pipelines belonging to a single operator. This paragraph would allow the owner or operator to maintain all records demonstrating compliance in a single set of files at an appropriate site in Texas. The records would consist of the information required to describe the maintenance activities and their associated emissions. To ensure clarity, this paragraph would also state that the resetting of flow meters and their calibration are considered routine operations, separate from maintenance and purging.

Subchapter T: Surface Preparation

Proposed §106.454(3) would exclude remote reservoirs since they are more specifically covered under §106.454(2). Even though remote reservoirs may be a subset of cold solvent cleaners, the two types of equipment do not operate in the same way and have different designs. In a remote reservoir unit, the liquid solvent is pumped to a sink-like work area that drains solvent back into an enclosed container while parts are being cleaned, allowing no solvent to pool in the work area. Thus, a freeboard ratio requirement is not applicable to remote reservoirs because the solvent does not pool around the parts. For a cold solvent cleaner, the solvent does pool around the parts and a freeboard is necessary. The purpose of the freeboard is to ensure that when parts are placed into the solvent pool there is enough empty air space between the solvent level and the top of the tank to minimize solvent drag out when an air stream passes over the open reservoir. The design also prevents solvent overflow when parts are placed in the pool, thus decreasing air emissions.

In summary, the commission is soliciting comments on the entire proposal and specifically on several areas within this proposal, including: 1) the five-year retention requirement in proposed new §106.8, especially as it affects small businesses and minor sources; 2) the limitation of the proposed new §106.263 for "routine" activities; 3) the inclusion in proposed new §106.263(c)(4) of any additional temporary facilities historically used and reviewed by the commission under the current §106.263; 4) the inclusion of routine start-up and shutdown emissions in proposed new §106.263(c)(3); and 5) the limitation of maintenance, start-up, and shutdown emissions to less than the reportable quantities of §101.1, particularly oxides of nitrogen, in proposed new §106.263(d)(2).

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

John Davis, Technical Specialist with Strategic Planning and Appropriations, determined that for the first five-year period the proposed rules are in effect, there will be no significant fiscal implications to units of state or local government as a result of implementation of the proposed rules. The proposed rules are estimated to cost units of state and local government up to $500 per year to comply with expanded recordkeeping requirements for facilities that are small air emission sources authorized to operate by an air quality PBR.

The proposed rules are intended to specify recordkeeping requirements and compliance demonstrations; clarify applicability for used-oil combustion activities; update and clarify the proper use of PBRs for routine start-up, shut down, and maintenance activities and associated temporary maintenance facilities which may emit air contaminants; and clarify applicable requirements for remote reservoir cleaning facilities. The commission estimates that there will be fiscal implications, which are not anticipated to be significant, to units of state and local government due to implementation of the recordkeeping requirements of this proposal. The remaining provisions are procedural in nature and are not expected to result in additional fiscal implications for units of state and local government.

The proposed recordkeeping requirements will affect all past, present, and future facilities permitted by rule by the commission since 1972. Owners and operators of businesses, local governments, school and water districts, and small governmental organizations which have used PBRs to authorize construction, changes to, or operation of insignificant emission sources would be required to retain records beginning January 1, 2002. The specific types of records to be retained will depend on the requirements of the PBR, but could include a copy of the PBR and general requirements claimed, production records, operating hours, material purchase or usage records, or emission calculations. All records would have to be kept at the facility site or nearest support office and made available upon request. Additionally, the proposal would require that records be retained for five years and that records be maintained that demonstrate compliance with annual emission limits on a rolling 12- month basis.

There are numerous PBRs that already require recordkeeping. Examples of facilities and operations include: boilers, heaters, and other combustion devices; aerospace equipment and parts manufacturing; semiconductor manufacturing; paint, varnishes, ink, and other coating manufacturing; surface coating facilities; and stationary engines and turbines. The primary impact to these facilities would be the extension of records retention from a few months to five years. Additionally, there are PBRs that have specific construction or operational restrictions but do not contain recordkeeping requirements. The proposal would require these facilities to create operational records to demonstrate compliance beginning on January 1, 2002. These facilities would also have to adhere to the five-year records retention requirement. Examples of these facilities and operations include: pilot plants, batch mixers, rock crushers, wet sand and gravel productions, asphalt concrete plants, animal feeding operations, small boilers and heaters, temporary oil and gas facilities, and municipal solid waste landfills and transfer stations. Owners and operators which claim emissions for maintenance activities under a PBR instead of an air permit would also have to keep records to ensure emissions are insignificant and the facility meets conditions of the rules.

The final grouping of facilities affected by the proposed rules are those sources that would not be required to retain ongoing compliance records but would only have to collect and present information when individually requested. The level of detail in the records these facilities would have to retain would depend on the specific requirements in the facility's PBR. Examples of these facilities and operations include: hydraulic and hydrostatic testing equipment; bench scale laboratory equipment; race tracks, zoos, and animal shelters; vacuum cleaning systems; aqueous fertilizer storage; wet blast cleaning; powder coating facilities; photographic process equipment; and sewage treatment facilities.

The total number of units of state and local government affected by the proposed rules cannot be determined at this time. The majority of facilities seeking PBRs since 1972 have not been required to register with the commission. Of those that do require registration, the commission processes approximately 4,000 PBR applications per year. The commission estimates that a comparatively small number of affected facilities are owned and operated by units of state and local government and many already maintain records to show compliance. However, there may be a small number that have not kept information that would now be required to do so by the proposed rules. The overall cost to comply with the recordkeeping requirements is estimated not to exceed $500 a year, depending on the current level of recordkeeping at a facility and the complexity of the records required to be maintained based on the applicable PBR. Included in the compliance cost is the purchase of filing space and administrative supplies, printing of records, and the initial training of persons responsible for maintaining the records. No fiscal implications are anticipated to units of state and local government with facilities that are not required to retain ongoing compliance records.

PUBLIC BENEFITS AND COSTS

Mr. Davis also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from enforcement of and compliance with the proposed rules would be increased compliance with air emission standards due to more extensive record retention requirements.

The proposed rules are intended to specify recordkeeping requirements and compliance demonstrations for past, present, and future air quality PBRs issued by the commission; clarify applicability for used-oil combustion activities; update and clarify the proper use of PBRs for routine maintenance activities and associated facilities which may emit air contaminants; and clarify applicable requirements for remote reservoir cleaning facilities. The commission estimates that there will be fiscal implications, which are not anticipated to be significant, to private businesses due to implementation of the recordkeeping requirements of this proposal. The remaining provisions are procedural in nature and are not expected to result in additional fiscal implications to individuals or private businesses.

The proposed recordkeeping requirements will affect past, present, and future facilities permitted by rule by the commission since 1972. Owners and operators of businesses which have used PBRs to authorize construction, changes to, or operation of insignificant emission sources would be required to retain records beginning January 1, 2002. The specific types of records to be retained will depend on the requirements of the PBR, but could include a copy of the current PBR, production records, operating hours, material purchase or usage records, or emission calculations. All records would have to be kept at the facility site or nearest support office and made available upon request. Additionally, the proposal would require that records be retained for five years and that records be retained that demonstrate compliance with annual emission limits on a rolling 12-month basis.

The total number of businesses throughout the state affected by the proposed rules could exceed 100,000, with 70,000 being small or micro-businesses. The majority of facilities seeking PBRs since 1972 have not been required to register with the commission. Of those that do require registration, the commission processes approximately 4,000 PBR applications per year, the majority of which are submitted by private businesses. The registrations are broken down by the following: 1,200 registrations per year for stationary engines and turbines and oil and gas production facilities; 800 registrations per year for miscellaneous facilities and emission releases; 400 registrations per year for surface coating and auto body refinishing facilities; 400 registrations per year for water and soil remediation operations; 400 registrations per year for aggregate, sand, and material handling operations; 400 registrations per year for materials loading, unloading, and storage in tanks and vessels; and 400 registrations per year for trench burning operations. The overall cost to comply with the recordkeeping requirements is estimated not to exceed $500 a year, depending on the current level of recordkeeping at a facility and the complexity of the records required to be retained based on the applicable PBR. Included in the compliance cost is the purchase of filing space and administrative supplies, printing of records, and the initial training of persons responsible for maintaining the records. No fiscal implications are anticipated to companies with facilities that are not required to retain ongoing compliance records.

The total state-wide costs to comply with this proposal is estimated not to exceed approximately $50 million a year.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There will be adverse fiscal implications, which are not anticipated to be significant, for small or micro-businesses as a result of implementation of the proposed rules. These proposed rules are intended to specify recordkeeping requirements and compliance demonstrations for past, present, and future air quality PBRs issued by the commission; clarify applicability for used-oil combustion activities; update and clarify the proper use of PBRs for routine start-up, shut down, and maintenance activities and associated temporary maintenance facilities which may emit air contaminants; and clarify applicable requirements for remote reservoir cleaning facilities.

The proposed rules will affect a wide range of small and micro-businesses that utilize PBRs to authorize construction, changes to, or operation of insignificant emission sources by requiring the retention of compliance records beginning January 1, 2002. The specific types of records to be maintained will depend on the requirements of the PBR and the general requirements of the chapter, but could include a copy of the current PBR, production records, operating hours, material purchase or usage records, or emission calculations. All records would have to be kept at the facility site or nearest support office and made available upon request from commission staff or any air pollution control program having jurisdiction.

Small and micro-businesses apply for PBRs in a wide variety of categories, including the following: manufacturing, refinishing, and restoring of wood products; foundry sand mold forming equipment; aqueous solutions for electrolytic and electroless processes; thermostat resin facilities; printing presses; dry abrasive cleaning; organic and inorganic liquid loading and unloading; and hydrochloric acid storage.

The commission has researched the number of facilities that are considered to be small or micro- businesses that may be subject to PBRs and has determined that at least 70,000 small and micro- businesses may be affected by the proposed rules. It is estimated that the majority of small and micro- businesses affected by the proposed rules are already required to retain compliance records and would have to implement the five-year retention requirement to comply with the new standards. The overall cost to comply with the recordkeeping requirements is estimated not to exceed $500 a year, depending on the current level of recordkeeping at a facility and the complexity of the records required to be maintained based on the applicable PBR. Included in the compliance cost is the purchase of filing space and administrative supplies, printing of records, and the initial training of persons responsible for maintaining the records. No fiscal implications are anticipated to small or micro-businesses with facilities that are not required to retain ongoing compliance records.

The following is an analysis of the cost per employee for small or micro-businesses affected by the proposed rules. It is estimated that it will cost affected small or micro-businesses up to approximately $500 per year to comply with the proposed rules. A small business with 100 employees would incur costs of approximately $5.00 per employee while a micro-businesses with 20 employees would incur costs of approximately $25 per employee. The overall cost associated with these rules is not expected to change with the number of employees employed, but the cost per employee would vary depending on the number of persons employed by an affected business.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rules in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that this proposal 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, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state.

This proposal is not a major environmental rule because its primary purpose is not to protect the environment or reduce risks to human health from environmental exposure, but rather to specify the types of records required to ensure compliance with the individual and general conditions of PBRs and to specify the activities which may be authorized under particular PBRs. Specifically, the new and amended sections relate to recordkeeping requirements for all PBRs; emissions related to maintenance on facilities and emissions related to temporary maintenance facilities; pipeline metering, purging, and maintenance; specifications for cold solvent remote reservoir cleaners; and the applicability of the PBR for used oil combustion units.

In addition, a draft regulatory impact analysis is not required because the rules do not meet any of the four applicability criteria for requiring a regulatory analysis of a "major environmental rule" as defined in the Texas Government Code. Section 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. First, this proposal does not exceed a standard set by federal law, but it is consistent with federal standards relating to emissions monitoring and recordkeeping requirements. Second, this proposal does not exceed an express requirement of state law because it is authorized by the following state statutes: Texas Government Code, §2001.004, which requires state agencies to adopt rules of practice; TCAA, §382.016, which authorizes the commission to require the measuring and monitoring of air contaminant emissions from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt PBRs; §382.057, which establishes the commission's authority concerning exemptions; as well as the other sections cited in the STATUTORY AUTHORITY section of this preamble. Third, this proposal does not 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. The state is required to have a minor stationary source program under 42 United States Code, §7410(a)(2)(C), and PBRs are part of the minor stationary source program. Fourth, this proposal was not developed solely under the general powers of the agency, but was specifically developed under the specific state laws and authorizations noted in the STATUTORY AUTHORITY section of this preamble. The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission prepared a takings impact assessment for these proposed rules pursuant to Texas Government Code, §2007.043. The following is a summary of that assessment. The specific primary purpose of the proposed rules is to revise the rules to establish and clarify the requirements for compliance demonstrations and the activities which may be authorized under particular PBRs. The proposed rules will substantially advance these stated purposes by providing specific rule provisions that address these matters.

Promulgation and enforcement of these proposed rules would be neither a statutory nor a constitutional taking because they do not affect private real property. Specifically, the subject proposed rules do not affect a landowner's rights in private real property because this proposal does not burden (constitutionally), nor restrict or limit the owner's right to property and reduce its value by 25% or more beyond that which would otherwise exist in the absence of the rules.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission determined that the proposed rulemaking relates to an action or actions subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources Code, §§33.201 et seq.), and the commissions rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the CMP. As required by §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to actions and rules subject to the CMP, commission rules governing air pollutant emissions must be consistent with the applicable goals and policies of the CMP. The commission reviewed this action for consistency with the CMP goals and policies in accordance with the rules of the Coastal Coordination Council, and determined that the action is consistent with the applicable CMP goals and policies.

The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance the diversity and quality, quantity, functions, and values of coastal natural resource areas (31 TAC §501.12(1)). In carrying out it's duty to maintain and control the state's air quality, the commission is proposing to clarify the regulatory requirements in Chapter 106, which authorizes facilities and associated activities that will not make a significant contribution of air contaminants to the atmosphere. Specifically, the proposal clarifies the application and use of the specific PBRs addressed in this proposal and clarifies the general recordkeeping requirements for all PBRs. In addition, the CMP policy applicable to this action is the policy that commission rules comply with regulations in 40 Code of Federal Regulations (CFR), to protect and enhance air quality in the coastal area (31 TAC §501.14(q)). This action complies with 40 CFR 50, National Primary and Secondary Ambient Air Quality Standards. Therefore, in compliance with 31 TAC §505.22(e), this rulemaking action 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.

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING PERMITS PROGRAM

Because Chapter 106 contains applicable requirements under 30 TAC Chapter 122 (Federal Operating Permits), owners or operators subject to the Federal Operating Permit Program must, consistent with the revision process in Chapter 122, revise their operating permit to include the revised Chapter 106 requirements for each emission unit affected by the revisions to Chapter 106 at their site.

ANNOUNCEMENT OF HEARING

A public hearing on this proposal will be held May 29, 2001, at 10:00 a.m. in Room 2210, Building F, located at 12100 Park 35 Circle, Austin. 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, a commission staff member will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087; or by fax at (512) 239-4808. All comments must be received on June 4, 2001, and should reference Rule Log No. 2000-051-106-AI. Comments received by 5:00 p.m. on that date will be considered by the commission before any final action on the proposal. For further information, please contact Jill Burditt at (512) 239-0560.

Subchapter A. GENERAL REQUIREMENTS

30 TAC §106.8

STATUTORY AUTHORITY

The new section is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The new section is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt PBRs for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed new section implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed new section also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions.

§106.8.Recordkeeping.

(a)

Owners or operators of facilities and sources that are de minimis as designated in §116.119 of this title (relating to De Minimis Facilities or Sources) are not subject to this section.

(b)

Owners or operators of facilities operating under a permit by rule (PBR) in Subchapter C of this chapter (relating to Domestic and Comfort Heating and Cooling) or under those PBRs that only name the type of facility and impose no other conditions in the PBR itself do not need to comply with specific recordkeeping requirements of subsection (c) of this section. A list of these PBRs will be available through the commission. Upon request from the commission or any air pollution control program having jurisdiction, claimants must provide information that would demonstrate compliance with §106.4 of this title (relating to Requirements for Permitting by Rule) and the PBR under which the facility is authorized.

(c)

Owners or operators of all other facilities authorized to be constructed and operate under a PBR must retain records as follows:

(1)

permanently maintain a copy of each PBR and the applicable general conditions under which the facility is operating. The PBR and general requirements claimed should be the version in effect at the time of construction or changes to an existing facility whichever is most recent. The PBR holder may elect to comply with a more recent version of the applicable PBR and general requirements;

(2)

maintain records containing sufficient information to demonstrate compliance with the following:

(A)

all applicable requirements of §106.4 of this title or the general requirements, if any, in effect at the time of the claim; and

(B)

all applicable PBR conditions;

(3)

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

(4)

make the records available in a reviewable format at the request of personnel from the commission or any air pollution control program having jurisdiction; and

(5)

beginning January 1, 2002, keep records to support a compliance demonstration for any consecutive 12-month period. All records must be retained for at least five years.

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

Filed with the Office of the Secretary of State, on April 23, 2001.

TRD-200102314

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


Subchapter G. COMBUSTION

30 TAC §106.181

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt permits by rule for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed amendment implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed amendment also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions.

Used-Oil Combustion Units [ Small Boilers, Heaters, and Other Combustion Devices ].

[ (a) ]

Small boilers and [ , ] heaters burning used oil that has not been mixed with hazardous waste [ , drying or curing ovens, furnaces, or other combustion units, but not including stationary internal combustion engines or turbines, ] are permitted by rule provided that all of the following conditions [ of this section ] are met : [ . ]

[(b)]

Combustion units may burn used oil as a fuel as long as the used oil has not been mixed with hazardous waste and the combustion unit meets the following conditions:]

(1)

the combustion unit or combination of combustion units at the same account have a maximum capacity of 1.0 million Btu per hour (MMBtu/hr) and each individual combustion unit is not greater than 0.5 MMBtu/hr;

(2)

the combustion gases from the combustion unit(s) are vented to the ambient air in accordance with the following requirements:

(A)

through an unobstructed vent; or

(B)

through a vertical vent with a cap; and

(i)

a flat roof, through a minimum of a three-foot stack; or

(ii)

a sloped roof, through a stack that is at least three feet higher than the highest point on the roof or three feet higher than a point extending ten feet horizontally from the roof; and

(3)

the combustion unit(s) burns only used oil the owner or operator generates on-site or used oil received from household do-it-yourself used oil generators.

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 April 23, 2001.

TRD-200102315

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


Subchapter K. GENERAL

30 TAC §106.263

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

STATUTORY AUTHORITY

The repeal is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The repeal is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt permits by rule for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed repeal implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.017, relating to Rules; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed repeal also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions.

§106.263.Repairs and Maintenance.

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 April 23, 2001.

TRD-200102316

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


STATUTORY AUTHORITY

The new section is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The new section is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt permits by rule for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed new section implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.017, relating to Rules; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed new section also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions.

§106.263.Routine Maintenance, Start-up and Shutdown of Facilities, and Temporary Maintenance Facilities.

(a)

This section authorizes routine maintenance, start-up and shutdown of facilities, and specific temporary maintenance facilities except as specified in subsection (b) of this section.

(b)

The following maintenance, start-up and shutdown of facilities, and new facilities are not authorized under this section:

(1)

construction of any new or modified permanent facility;

(2)

facilities and sources that are de minimis as allowed in §116.119 of this title (relating to De Minimis Facilities or Sources); and

(3)

any emissions associated with operations claimed under the following sections of this chapter:

(A)

§106.231 of this title (relating to Manufacturing, Refinishing, and Restoring Wood Products);

(B)

§106.351 of this title (relating to Salt Water Disposal (Petroleum));

(C)

§106.352 of this title (relating to Oil and Gas Production Facilities);

(D)

§106.353 of this title (relating to Temporary Oil and Gas Facilities);

(E)

§106.355 of this title (relating to Pipeline Metering, Purging, and Maintenance);

(F)

§106.392 of this title (relating to Thermoset Resin Facilities);

(G)

§106.418 of this title (relating to Printing Presses);

(H)

§106.433 of this title (relating to Surface Coat Facility);

(I)

§106.435 of this title (relating to Classic or Antique Automobile Restoration Facility);

(J)

§106.436 of this title (relating to Auto Body Refinishing Facility); and

(K)

§106.512 of this title (relating to Stationary Engines and Turbines).

(c)

The following activities and facilities are authorized under this section:

(1)

routine activities which are those that are planned or can be projected to occur at least once in any 12-month period;

(2)

maintenance, including associated start-up and shutdown, which includes recurring or planned activities which keep a facility at normal operating parameters or repairs which return a facility to normal operating parameters and are not considered "reconstruction" under 40 Code of Federal Regulations 60, New Source Performance Standards, Subpart A, §60.15 (relating to Reconstruction) and which does not include enhancement of facilities nor construction, installation, or operation of permanent facilities;

(3)

start-up and shutdown activities which are part of normal facility operation; and

(4)

temporary maintenance facilities which are constructed in conjunction with maintenance activities. Temporary maintenance facilities include only the following:

(A)

facilities used for abrasive blasting, surface preparation, and surface coating on immovable fixed structures;

(B)

facilities used for testing and repair of engines and turbines;

(C)

compressors, pumps, or engines and associated pipes, valves, flanges, and connections, not operating as a replacement for an existing authorized unit;

(D)

flares, vapor combustors, catalytic oxidizers, thermal oxidizers, carbon adsorption units, and other control devices used to control vent gases released during the degassing of immovable, fixed process vessels, storage vessels, and associated piping to atmospheric pressure, plus cleaning apparatus that will have or cause emissions; and

(E)

temporary piping required to bypass a unit or pipeline section undergoing maintenance.

(d)

Emission and operational limits for maintenance, start-up and shutdown of facilities, and specific temporary maintenance facilities are as follows.

(1)

Temporary facilities defined in subsection (c)(4)(D) of this section are limited to the following:

(A)

flares or vapor combustors must meet the requirements of §106.492(1) and (2)(C) of this title (relating to Flares);

(B)

catalytic oxidizers must meet the requirements of §106.533(5)(C) of this title (relating to Water and Soil Remediation);

(C)

thermal oxidizers must meet the requirements of §106.493(2) and (3) of this title (relating to Direct Flame Incinerators);

(D)

carbon adsorption systems must meet the requirements of §106.533(5)(D) of this title; and

(E)

other control devices used to control vents caused by the degassing of process vessels, storage vessels, and associated piping have an overall vapor collection and destruction or removal efficiency of at least 90%.

(2)

Emissions from each maintenance, start-up, and shutdown event, not including temporary maintenance facilities, are limited to 24-hour emission totals which are less than the reportable quantities defined in §101.1(82) of this title (relating to Definitions).

(3)

Emissions from all activities and temporary maintenance facilities covered by this section for a site must collectively and cumulatively be less than any applicable emission limit under all subsections of §106.4 of this title (relating to Requirements for Permitting by Rule) in any rolling 12-month period.

(4)

Any maintenance, start-up, or shutdown activity that cannot meet the limitations of paragraphs (2) and (3) of this subsection must be authorized under Chapter 116 of this title (relating to Control of Air Pollution by Permits for New Construction or Modification) or comply with §101.7 and §101.11 of this title (relating to Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements, and Demonstrations).

(5)

Any temporary maintenance facility that cannot meet the limitations of paragraph (3) of this subsection must obtain authorization under Chapter 116 of this title.

(6)

Temporary maintenance facilities may not operate at a given location for longer than 180 consecutive days or the completion of a single project unless the facility is registered. If a single project requires more than 180 consecutive days to complete, the facilities must be registered using a PI-7 Form, along with documentation on the project. Registration and supporting documentation shall be submitted upon determining the length of the project will exceed 180 days, but no later than 180 days after the project begins.

(e)

Facility owners or operators must retain records containing sufficient information to demonstrate compliance with this section and must include information listed in paragraphs (1) - (5) of this subsection. Documentation must be separate and distinct from records maintained for any other air authorization. Records must identify the following for all maintenance, start-up, or shutdown activities and temporary maintenance facilities:

(1)

the type and reason for the activity or facility construction;

(2)

the processes and equipment involved;

(3)

the date, time, and duration of the activity or facility operation;

(4)

the air contaminants and amounts which are emitted as a result of the activity or facility operation; and

(5)

any actions taken to minimize the emissions.

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 April 23, 2001.

TRD-200102317

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


Subchapter O. OIL AND GAS

30 TAC §106.355

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt permits by rule for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed amendment implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.017, relating to Rules; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed new section also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions

Pipeline Metering, Purging, and Maintenance [ of Pipelines ].

Metering, purging, and maintenance operations for gaseous and liquid petroleum pipelines (including ethylene, propylene, butylene, and butadiene pipelines) between separate sites, as defined in §122.10(29) of this title (relating to General Definitions), , are permitted by rule provided that operations are conducted according to the following conditions of this section:

(1)

emissions of volatile organic compounds except equipment leak fugitive emissions, are burned in a smokeless flare; or

(2)

total uncontrolled emissions of any air contaminant may [ will ] not exceed one ton during any metering, purging, or maintenance operation . [ ; ] Uncontrolled butadiene emissions may not exceed 0.04 lb/hr.

(3)

venting of sweet, commercial grade natural gas from pipelines is exempt from paragraphs (1) , [ and ] (2) , and (5) of this section. Operators may not vent gas in areas of known or suspected ignition sources. [ Care must be taken not to vent the gas in an area where an ignition source may exist or where accidental ignition of the gas may increase risk of fire at nearby tanks or other facilities. ]

(4)

if any maintenance activity cannot meet all of the requirements of this section, or the emissions are not authorized under Chapter 116 (relating to Control of Air Pollution by Permits for New Construction or Modification), then activities must comply with §101.7 and §101.11 of this title (relating to Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational Requirements; and Demonstrations).

(5)

records of all maintenance and purging emissions must be kept by the owner or operator of the facility or group of facilities at the nearest office within Texas having day-to-day operational control. These records must include all information required in this paragraph and in paragraphs (1) - (4) of this section. Resetting flow meters (changing orifice plates, etc.) and calibration of meters are considered routine operations under this rule, not maintenance or purging. Records must identify the following for all maintenance and purging activities covered by this section:

(A)

the type and reason for the activity;

(B)

the processes and equipment involved;

(C)

the date, time, and duration of the activity;

(D)

the air contaminants and amounts which are emitted as a result of the activity; and

(E)

the actions taken, if any, to minimize the emissions.

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 April 23, 2001.

TRD-200102318

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


Subchapter T. SURFACE PREPARATION

30 TAC §106.454

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, which authorizes the commission to adopt rules necessary to carry out its powers and duties under the TWC, and under the Texas Health and Safety Code, TCAA, §382.017, which provides the commission authority to adopt rules consistent with the policy and purposes of the TCAA. The amendment is also proposed under TCAA, §382.002, which establishes the commission's purpose to safeguard the state's air resources consistent with the protection of public health, general welfare, and physical property; §382.011, which authorizes the commission to control the quality of the state's air; §382.016, which authorizes the commission to require the measuring and monitoring of emissions of air contaminants from a source or activity and to require that associated records of the emissions be made and maintained; §382.051, which authorizes the commission's permitting activities; §382.05196, which authorizes the commission to adopt permits by rule for certain facilities that will not make a significant contribution of air contaminants to the atmosphere; §382.057, which establishes the commission's authority concerning facilities and changes to facilities that will not make a significant contribution of air contaminants to the atmosphere; and Texas Government Code, §2001.004, which requires state agencies to adopt procedural rules.

The proposed amendment implements TCAA, §382.011, relating to General Powers and Duties; §382.016, relating to Monitoring Requirements; Examination of Records; §382.017, relating to Rules; §382.05196, relating to Permits by Rule; and §382.057, relating to Exemption. The proposed amendment section also implements TWC, §5.103, relating to Rules; and Texas Government Code, §2001.004, relating to Requirement to Adopt Rules of Practice and Index Rules, Orders, and Decisions.

§106.454.Degreasing Units.

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

(1) - (2)

(No change.)

(3)

The following conditions apply only to cold solvent cleaners , not including remote reservoirs .

(A) - (F)

(No change.)

(4) - (5)

(No change.)

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

Filed with the Office of the Secretary of State, on April 23, 2001.

TRD-200102319

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: June 4, 2001

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


Chapter 279. WATER QUALITY CERTIFICATION

The Texas Natural Resource Conservation Commission (agency, commission, or TNRCC) proposes amendments to 30 TAC Chapter 279, Water Quality Certification, §§279.1 - 279.12; the repeal of §279.13; and new §279.13; to revise procedures for waivers of certification, amend enforcement provisions, and modify existing language for consistency with other agency rules.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Title 33 United States Code (USC), §1341, commonly known as the federal Clean Water Act (CWA), §401, requires all applicants for a federal license or permit to conduct any activity that may result in a discharge into navigable waters, including the construction or operation of facilities, to request a certification from the state that the discharge will comply with state water quality standards. The commission rules in Chapter 279 contain the procedures for public notice and review of any such activity proposed to be authorized by federal permit, including applications for dredge and fill permits issued by the U.S. Army Corps of Engineers (Corps). Under Chapter 279, the commission reviews the proposed activity for compliance with 30 TAC Chapter 307, Water Quality Standards, and Texas Water Code (TWC), §26.011, §26.023, §26.027, §26.121, and §26.127, which direct the commission to act to protect the quality of water in the state. The proposed amendments would provide for the executive director either to review the proposed activity or to waive certification.

The amendments would also specifically allow the executive director to waive certification when the applicant agrees to include specific water quality-related conditions in the permit. The amendments would also add detail concerning the time and procedures for the executive director's review of permit applications. The proposed amendments would expand the category of persons who may request a public meeting, allow the executive director to waive public notice in an emergency or when certification is waived, more clearly describe the type of public meetings that may be held on certification decisions in response to public comments received, and change notice requirements for public meetings. If the executive director grants, grants conditionally, or denies certification, the proposed amendments would specify the contents of the statement of this decision. The proposed amendments would specify the persons to receive notice of a decision, and, if the activity is certified, a statement of reasonable assurance that the proposed activity will not violate water quality standards. Finally, this proposal would require applicants to comply with agreements and permit conditions resulting from the certification procedures in these rules, and provide for enforcement for noncompliance.

The commission proposes these changes in order to partially restructure the certification process, making it less cumbersome and more flexible. Some of the proposed amendments are the outgrowth of recent discussions and agreements with the Corps aimed at streamlining certification procedures on §404 permits. Some of the proposed amendments reflect the commission's and the Corps' conclusions, upon review of past practices, that the system should be revised to maximize interagency cooperation and minimize possible duplication of effort.

SECTION BY SECTION DISCUSSION

Section 279.1 is proposed to be amended to eliminate unnecessary recitation of language from the federal CWA.

Section 279.2(a) and (b) is proposed to be amended to make grammatical corrections and to change references from "TNRCC" to "agency," from "Clean Water Act" to "CWA," and from "Commission" to "commission," for consistency with style conventions of the Texas Register and to reflect current definitions in Chapter 3 of this title. Subsection (b)(4) is proposed to be amended to clarify that the executive director may waive certification upon agreement of an applicant to include and comply with water quality-related conditions in the applicant's federal permit. Section 279.2(c) is proposed to be amended to delete the provision that a commissioner may request that the commission review a certification application prior to the executive director's action on it.

Section 279.3 is proposed to be amended to clarify and update the following definitions to clarify acronyms, reflect accurate citations to law and regulations for consistency with definitions found elsewhere, and to make grammatical corrections: 401 Certification, 404 permit, applicant, aquatic ecosystem, Clean Water Act, emergency, general permit, individual permit, licensing or permitting agency, nationwide permit, National Pollutant Discharge Elimination System (NPDES) permit, regional administrator, and water dependent activity. The definition of "pollutant" would be changed to conform to TWC, §26.001. The definitions of "affected person" and "person" are proposed to be deleted because these terms are being eliminated from the proposed rules. The definition of "water quality limited segment" is proposed to be deleted because this term has never been used in the rules. The definitions of "commission" and "executive director" are proposed to be deleted because these terms are already defined in Chapter 3 of this title. Definitions have been re-numbered to reflect these changes.

Section 279.4(a) - (e) is proposed to clarify the use of acronyms, to accurately refer to "water" rather than "waters in the state," and to make grammatical corrections. Subsection (b)(3) is proposed to be amended to provide that the executive director may review the final permit decision document before acting on a request for certification.

Section 279.5(a) is proposed to be amended to make a grammatical correction, change "permit agency" to "permitting agency" to be consistent throughout the rules, and eliminate unnecessary references and redundant language. Section 279.5(b) is proposed to be amended to make a grammatical correction and to clarify an ambiguous pronoun. Subsection (b)(8) is proposed to be amended to use a common acronym (EPA) defined in Chapter 3 of this title. Subsection (b)(11) is proposed to be deleted because interested persons must respond to the notice, and a list of interested persons making comments on the certification will not be available until after the notice required by this section is mailed. Subsection (c)(3) is proposed to be amended to use a current definition (federal CWA) in Chapter 3 of this title. Subsection (c)(4) is proposed to be amended to use a current definition (agency instead of commission) in Chapter 3 of this title and to specify an agency mail code. Subsection (c)(6) is proposed to be amended for consistency with current commission rules and terminology on public meetings and to reflect that any person may request a public meeting. Throughout this section, the term "public hearing" has been changed to "public meeting" to clarify that the proceeding contemplated in this chapter is a notice and comment meeting rather than an evidentiary contested case hearing. Section 279.5(d) is proposed to be added to state that the executive director may waive the notice requirements of this subsection when a permit review will be waived. Old §279.5(d) (renumbered §279.5(e)) is proposed to be amended to bring the section into consistency with commission rules and terminology on public meetings, to make the references to later sections of Chapter 279 conform to their new titles proposed to be amended in this rulemaking, to reflect current definitions (agency instead of commission) in Chapter 3 of this title, and to make grammatical corrections.

Section 279.6 is proposed to be amended by removing the requirement for the executive director to consider comments when certification is waived or when public notice has been waived in an emergency.

The title to §279.7 is proposed to be amended to make the distinction between a hearing and a public meeting. Section 279.7(a) is proposed to be amended to provide consistency with commission rules and terminology on public meetings, to clarify that the executive director may conduct a public meeting on any application for 401 certification based on public comments received during the public comment period or at a request from a commissioner, and to remove the reference to affected person. Subsection (a)(1) - (4) is proposed to be deleted to make requests for a public meeting easier and not restricted only to affected persons. Section 279.7(b) is proposed to be amended to clarify that the executive director shall notify the appropriate agencies that the executive director will make a certification decision after a public meeting and to provide consistency with commission rules and terminology on public meetings. Section 279.7(c) is proposed to be amended to provide consistency with commission rules and terminology on public meetings and to make a grammatical correction.

The title to §279.8 is proposed to be amended to provide consistency with commission rules and terminology on public meetings. Section 279.8(a) is proposed to be amended to change the number of days for the executive director to notify the applicant of a public meeting from 30 days to ten days to streamline and facilitate the certification process. Section 279.8(a) and (b) is also proposed to be amended to provide consistency with commission rules and terminology on public meetings, and to make a grammatical correction. Subsection (c)(2) is proposed to be amended to clarify that certifications deal with the discharge of pollutants, not the disposal of waste. Subsection (c)(3) is proposed to be amended to make its wording parallel with subsection (c)(2), to clarify that certifications deal with present or future activities, not only with present facilities, and to clarify that certifications deal with the discharge of pollutants, not the disposal of waste. Subsection (c)(8) is proposed to be amended to use a current acronym (EPA) defined in Chapter 3 of this title. Subsection (c)(11) is proposed to be amended to clarify that any person who commented during the public comment period will be notified of a public meeting. Section 279.8(d) is proposed to be amended to provide consistency with commission rules and terminology on public meetings, make grammatical corrections, and reduce the notice time for public meetings from 30 days to ten days, consistent with the proposed amendment to §279.8(a).

Section 279.9 is proposed to be amended to give the executive director wider discretion to waive certification and certification review as allowed by the federal CWA. Section 279.9(a) is proposed to be amended to provide that the executive director shall either conduct a review or waive certification. Section 279.9(b) is proposed to be amended to require that if the executive director conducts a review, after the review and any public meeting, the executive director shall make a determination on the proposed activity. Subsection (b)(2) is proposed to be amended to clarify which sections of the federal CWA that state certifications cover.

Section 279.10 is proposed to be amended to enumerate the actions the executive director may take on a certification consistent with procedures identified in the NPDES MOA. The title to §279.10 is proposed to be amended to use a current definition (agency instead of commission) in Chapter 3 of this title and to spell out the acronym for NPDES. Section 279.10(a) is proposed to be amended to use a common acronym (EPA) defined in Chapter 3 of this title, to enumerate the actions the executive director may take on a certification, and to make a grammatical correction. Subsection (a)(2) is proposed to be amended to make a grammatical correction and to use a common acronym (CWA) defined in Chapter 3 of this title. Subsection (a)(3) is proposed to be amended to use a current definition (agency instead of commission) from Chapter 3 of this title, to use a common acronym (CWA) defined in Chapter 3 of this title, and to eliminate an unnecessary recitation of language from the federal CWA. Subsection (a)(4) is proposed to be amended to eliminate an unnecessary recitation of language from the federal CWA.

The title to §279.11 is proposed to be amended to use a current definition (agency instead of commission) from Chapter 3 of this title. Section 279.11(a) is proposed to be amended to give the executive director the discretion whether to review or waive certification of any particular permit application. Section 279.11(c) is proposed to be amended to clarify the procedures to be followed if the executive director reviews a permit application. Subsection (c)(1) is proposed to be amended to make grammatical corrections and to reduce the burden on the applicant of demonstrating no practicable alternative. Subsection (c)(2) and (3) is proposed to be amended to make grammatical corrections. Subsection (c)(4) is proposed to be amended to make grammatical corrections to more clearly express that if the executive director determines the proposed compensatory mitigation will not accomplish the purpose and policy of this chapter, then certification may be denied even if alternatives are not available. Section 279.11(d) is proposed to be amended to clarify what actions the executive director may take, who shall receive notice of the executive director's decision, and to make a grammatical correction. Old subsection (d)(2) and (3) is proposed for reorganization. Renumbered subsection (d)(2) is proposed to be amended to clarify the contents of the statement of the executive director's decision, including a description of the materials and information reviewed from old subsection (d)(2), and to make a grammatical correction. Old subsection (d)(3)(A) is proposed for deletion, with needed concepts incorporated into proposed amendments to the old subsection (d)(3). Renumbered subsection (d)(2)(A) is amended to specify the contents of the statement of the executive director's decision if the activity is certified. Renumbered subsection (d)(2)(A)(i) is proposed to be amended to make grammatical corrections clarifying that the executive director must include a statement of reasonable assurance that the activity, if conducted in accordance with the terms of the proposed permit, will not violate the criteria enumerated in §279.9. Renumbered subsection (d)(2)(A)(ii) is proposed to be amended to make a grammatical correction. Renumbered subsection (d)(2)(B) is proposed to be amended to clarify that if a certification is denied, the executive director's statement must include an explanation of how the proposed activity will not satisfy one or more of the criteria enumerated in §279.9.

Section 279.12(a)(1) is proposed to be amended to make grammatical corrections and to be consistent with state legal terminology. Section 279.12(a)(2) is proposed to be amended to make a grammatical correction, to delete subsection (a)(2)(D) - (F), because a list of appropriate or interested persons making comments on the certification will not be maintained until after the notice required by this section is mailed, and to make appropriate grammatical and punctuation corrections to subsection (a)(2)(B) and (C). Subsection (a)(3) is proposed to be amended to specify that the comments considered should be received in accordance with §279.5 of this title. Subsection (a)(4) is proposed to be amended to clarify that the executive director shall maintain a list of all applicable nationwide permits and the executive director's certification action on each permit. Subsection (b)(1) is proposed to be amended to make grammatical corrections and to be consistent with state legal terminology. Subsection (b)(2) is proposed to be amended to make a grammatical correction, to delete subsection (b)(2)(D) - (F) because a list of appropriate or interested persons making comments on the certification will not be maintained until after the notice required by this section is mailed, and to make appropriate grammatical and punctuation corrections to subsection (b)(2)(B) and (C). Subsection (b)(3) is proposed to be amended to specify that the comments considered should be received in accordance with §279.5 of this title. Subsection (b)(4) is proposed to be amended to clarify that the executive director shall maintain a list of all applicable general permits and the executive director's certification action on each permit. Old subsection (c)(2) is proposed to be deleted, and its language moved to old subsection (c)(1) that is proposed to be changed to an introductory paragraph for subsection (c). The new introductory paragraph now specifies that the executive director shall send notice to the specified persons and agencies of the decision to deny, grant, grant conditionally, or waive certification, and has a grammatical correction. All remaining subheadings in subsection (c) are proposed to be renumbered accordingly. Old subsection (c)(1)(B) (newly renumbered subsection (c)(2)) is proposed to be amended to require that a statement of the basis for the executive director's decision, including a description of the materials and information examined, shall be included in the certification notice; this requirement was formerly included in old subsection (c)(1)(C). New subsection (c)(2)(A) is proposed to be added to specify what the executive director's statement must include if the activity is certified. Old subsection (c)(1)(B)(i) (newly renumbered subsection (c)(2)(A)(i)) is proposed to be amended to state that the executive director's statement must include reasonable assurance that the activity, if conducted in accordance with the terms of the proposed permit, will not violate criteria enumerated in §279.9; this requirement had been included in old subsection (c)(2)(C)(ii)(I). Newly renumbered subsection (c)(2)(A)(ii) is proposed to be amended to require that the executive director's statement must include any monitoring and reporting requirements necessary to assure compliance with criteria enumerated in §279.9; this requirement had been included in old subsection (c)(2)(C)(ii)(II). New subsection (c)(2)(B) is proposed to be added to state that if certification is denied, the executive director's statement must include an explanation of why the proposed activity will not satisfy one or more of the criteria enumerated in §279.9; this requirement had been included in old subsection (c)(2)(C)(iii). Old subsection (c)(2)(C) is proposed to be deleted because its provisions have been fully incorporated into newly renumbered subsection (c)(2). Old subsection (c)(2) is proposed to be deleted because its provisions have been fully incorporated into the introductory paragraph of §279.12(c).

Section 279.13 is proposed to be repealed. New §279.13 is proposed to eliminate outdated references, and to clarify the agency's existing enforcement authority in the 401 Certification program.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Jeffrey Horvath, Strategic Planning and Appropriations Division, determined that for the first five-year period the proposed amendments are in effect there will not be significant fiscal implications for the commission or other units of state and local government as a result of administration or enforcement of the proposed amendments.

The commission proposes these amendments in order to revise procedures for waiving certification, standardizing enforcement provisions, and clarifying existing language for consistency with other commission rules. The proposed amendments do not change the type or number of activities subject to review under the existing rules.

Some of the proposed amendments will facilitate procedures designed to cooperatively streamline certifications of Corps 404 permits. TNRCC recently entered into an MOA with the Corps, the purpose of which is to implement a process for interagency cooperation and review of individual 404 permit applications under the federal CWA, §401, while maintaining state water quality standards in §404 projects. Section 404 permits are issued by the Corps under the authority of the federal CWA, §404, which authorizes the discharge of dredged or fill material into the waters of the United States. This fill or dredged material may be used in such projects as marsh construction; new road construction by the Texas Department of Transportation (TxDOT); industrial expansion along the Houston Ship Channel; individual residential development; commercial real estate development; cities re-channeling streams; or other activities in wetlands, low-lying areas, and coastal areas.

The proposed amendments do not introduce additional regulatory requirements, and are intended to maximize the efficient use of resources at both agencies. There may be cost savings for the commission as a result of adopting the proposed amendments, but these are not considered to be significant.

PUBLIC BENEFIT AND COSTS

Mr. Horvath also determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments would be the maintenance of state water quality standards, the elimination of unnecessary duplication of effort for the review of permits, and the streamlining of the 401 certification process. Historically, there have been between 150 to 200 Corps permits per year subject to individual review by the commission.

The commission proposes these amendments in order to facilitate the implementation of the MOA with the Corps by revising procedures for waivers of certification, standardizing enforcement provisions, and clarifying existing language for consistency with other agency rules. The proposed amendments do not change the type or number of activities subject to review under the existing rules.

The purpose of the MOA is to implement a process for interagency cooperation and review of individual 404 permit applications under the federal CWA, §401, while maintaining state water quality standards in §404 projects. Section 404 permits are issued by the Corps under the authority of the federal CWA, §404, which authorizes the discharge of dredged or fill material into the waters of the United States. This fill or dredged material may be used in such projects as marsh construction; new road construction by TxDOT; industrial expansion along the Houston Ship Channel; individual residential development; commercial real estate development; cities re-channeling streams; or other activities in wetlands, low-lying areas, and coastal areas. The proposed amendments will provide for substantial compliance with state water quality standards, provide for effective and efficient use of resources at both agencies, and the streamlining of the 401 certification process.

The MOA designates two tiers for 401 certification procedures. Tier 1 projects would include those that will result in a direct impact to three acres or less of water in the state including wetlands, or 1,500 linear feet or less of streams. Projects that impact certain types of rare or ecologically significant wetlands are not included in this tier.

If the applicant chooses to use Tier 1, a statement will be signed indicating that applicable requirements and a TNRCC checklist of best management practices (BMPs) will be satisfied. An applicant's election to incorporate the BMPs and other requirements allows a 404 permit application to proceed without further review by the TNRCC. The BMPs selected by the applicant and other provisions of the checklist become part of the 404 permit and are subject to enforcement.

For Tier II projects, the TNRCC will participate in the pre-application process to the maximum extent practicable and provide the Corps with specific comments on water quality impacts during the public notice comment period up until the issuance of the Corps' decision document. Water quality issues raised by the agency during the public comment period are to be incorporated into the decision document. This revised process eliminates duplicative reviews and raises issues early in the review process thereby reducing the potential for conflicting or inconsistent decisions from the Corps and TNRCC.

The proposed amendments do not introduce additional regulatory requirements, and are intended to maximize the efficient use of resources at both agencies. The TNRCC does not assess application fees for the review of 404 permits and no fees are proposed under this rulemaking. Therefore, any cost savings to applicants are not considered significant. However, applicants may realize reduced processing times and increased consistency in the certification process.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There will be no adverse fiscal implications for small or micro-businesses as a result of implementation of the proposed amendments. The proposed amendments would maintain state water quality standards, eliminate unnecessary duplication of effort for the review of permits, and streamline the 401 certification process. However, applicants may realize reduced processing times and increased consistency in the certification process as a result of the rulemaking. Historically, there have been between 150 to 200 Corps permits per year subject to individual review by the TNRCC.

The commission proposes these amendments in order to facilitate the implementation of an MOA with the Corps by revising procedures for waivers of certification, standardizing enforcement provisions, and clarifying existing language for consistency with other agency rules. The proposed amendments do not change the type or number of activities subject to review under the existing rules.

The purpose of the MOA is to implement a process for interagency cooperation and review of individual 404 permit applications under the federal CWA, §401, while maintaining state water quality standards in §404 projects. Section 404 permits are issued by the Corps under the authority of the federal CWA, §404, which authorizes the discharge of dredged or fill material into the waters of the United States. This fill or dredged material may be used in such projects as marsh construction; new road construction by TxDOT; industrial expansion along the Houston Ship Channel; individual residential development; commercial real estate development; cities re-channeling streams; or other activities in wetlands, low-lying areas, and coastal areas. The proposed amendments will provide for substantial compliance with state water quality standards, provide for effective and efficient use of resources at both agencies, and the streamlining of the 401 certification process.

The MOA between the TNRCC and the Corps would designate two tiers for 401 certification procedures. Tier 1 projects would include those that will result in a direct impact to three acres or less of water in the state including wetlands, or 1500 linear feet or less of streams. Projects that impact certain types of rare or ecologically significant wetlands are not included in this tier.

If the applicant chooses to use Tier 1, a statement would be signed indicating that applicable requirements and a TNRCC checklist of BMPs will be satisfied. An applicant's election to incorporate the BMPs and other requirements allows a §404 permit application to proceed without further review by the TNRCC. The BMPs selected by the applicant and other provisions of the checklist become part of the 404 permit and are subject to enforcement.

For Tier II projects, the TNRCC will participate in the pre-application process to the maximum extent practicable and provide the Corps with specific comments on water quality impacts during the public notice comment period up until the issuance of the Corps' decision document. Water quality issues raised by the agency during the public comment period are to be incorporated into the decision document. This revised process eliminates duplicative reviews and raises issues early in the review process thereby reducing the potential for conflicting or inconsistent decisions from the Corps and TNRCC.

The proposed amendments do not introduce additional regulatory requirements, and are intended to maximize the efficient use of resources at both agencies. The TNRCC does not assess application fees for the review of 404 permits and no fees are proposed under this rulemaking. Therefore, any cost savings to applicants are not considered significant.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225 and determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act. The intent of the rules and rule amendments is to protect the environment or reduce risks to human health from environmental exposure. The rule amendments will not have an adverse material impact because the amendments only revise procedures for waivers of certification, amend enforcement provisions, and clarify existing language for consistency with other agency rules, and the amendments do not change the type or number of activities subject to review under the existing rules. Therefore, the proposed rule amendments do not meet the definition of a "major environmental rule." Furthermore, the rulemaking does not meet any of the four applicability requirements listed in §2001.0225(a). The rules and rule amendments do not exceed a standard set by federal or state law; the rules as a whole do exceed the express requirements of state law, but the rules are specifically required by the federal CWA, §401, for any state agency that chooses to certify §401 permits; the rules and rule amendments do not exceed a requirement of a federal delegation agreement or a contract between the state and an agency or representative of the federal government to implement a state and federal program; and the rules and rule amendments are not adopted solely under the general powers of the agency, but rather under TWC, §§26.011, 26.023, 26.027, 26.121, and 26.127. The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated these proposed amendments and performed a preliminary assessment in accordance with Texas Government Code, Chapter 2007. The following is a summary of that assessment. The specific purpose of the proposed amendments is to more effectively implement the MOA with the Corps regarding federal CWA, §401 provisions. The purpose of the MOA is to implement a process for interagency cooperation and TNRCC review of individual 404 permit applications under the CWA, §401. The proposed amendments would substantially advance this stated purpose by revising procedures for waivers of certification, amending enforcement provisions, and clarifying existing language for consistency with other commission rules.

Promulgation and enforcement of these proposed amendments would be neither a statutory nor a constitutional taking of private real property. Specifically, the proposed amendments do not affect a landowner's rights in private real property because this rulemaking action does not constitutionally burden, restrict, nor limit the owner's right to property, nor does it reduce a property's value by 25% or more beyond that which would otherwise exist in the absence of the amendments. Instead, the proposed amendments merely clarify existing language, revise procedures, and amend enforcement provisions of rules that have been in place for 13 years; rules that require an applicant for a federal wetlands discharge permit to demonstrate to the state that the discharge will not pollute water in the state. Consequently, the proposed amendments do not meet the definition of a taking under Texas Government Code, §2007.002(5). The proposed amendments are reasonably taken to fulfill the requirements of state law to control the quality of the state's water and will not constitute a taking under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the rules are identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Texas Coastal Management Program (CMP), or will affect an action or authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(a)(6), and will, therefore, require that applicable goals and policies of the CMP be considered during the rulemaking process. The commission determined that the proposed action is consistent with the applicable CMP goals and policies.

The goals of the CMP in 31 TAC §501.12 applicable to the proposed rules include: 1) to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of the Coastal Natural Resource Areas (CNRAs); 2) to ensure sound management of all coastal resources by allowing for compatible economic development and multiple human uses of the coastal zone; 3) to minimize loss of human life and property due to the impairment and loss of protective features of CNRAs; 5) to balance the benefits from economic development and multiple human uses of the coastal zone; the benefits from protecting, preserving, restoring, and enhancing CRNAs; the benefits from minimizing loss of human life and property; and the benefits from public access to and enjoyment of the coastal zone; and 7) to make agency and local government decision-making affecting CNRAs efficient by identifying and addressing duplication and conflicts among local, state, and federal regulatory and other programs for the management of CNRAs. Of the 18 policies contained in 30 TAC §501.14, relating to Policies for Specific Activities and Coastal Natural Resource Areas, only one, (j) Dredging and Dredged Material Disposal and Placement, is applicable to these proposed rules.

The commission reviewed these rules for consistency with the goals and policies of the CMP mentioned previously, and determined that the rules are consistent with the intent of the five applicable goals and the one applicable policy, and will not result in any significant adverse effects to CNRAs. Promulgation and enforcement of these rules will not violate any standards identified in the applicable CMP goals and policies because these rules implement provisions under TWC, §§26.011, 26.023, 26.027, 26.121, and 26.127, which direct the commission to act to protect the quality of water in the state. These rules amend procedures for public notice and the review of applications for water quality certification, which is consistent with the applicable goals and policies of the CMP. The commission seeks public comment on the consistency of the proposed rules with the CMP.

ANNOUNCEMENT OF PUBLIC MEETING

A public meeting on this proposal will be held in Austin on June 5, 2001, at 2:00 p.m. at the commission's central office located at 12100 Park 35 Circle, Building F, Room 2210. The meeting is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussions will not occur during the meeting; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the meeting and will answer questions before and after the meeting.

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

SUBMITTAL OF COMMENTS

Comments may be submitted to Lola Brown, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Log Number 2000-031-279-WT. Comments must be received by 5:00 p.m., June 5, 2001. For further information contact Alan Henderson, Policy and Regulations Division, at (512) 239-1510.

30 TAC §§279.1 - 279.13

STATUTORY AUTHORITY

The amendments and new section are proposed under TWC, §5.102, which grants the commission the authority to carry out its powers under the TWC; §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; §5.105, which requires the commission to establish and approve all general policy of the commission by rule; and §5.120, which requires the commission to administer the law for the maximum conservation and protection of the environment and natural resources of the state. Chapter 279 governs the issuance of state water quality certifications under the federal CWA, §401, codified at 33 USC, §1341.

The amendments and new section implement provisions of TWC, including §26.011, which requires the commission to establish and control water quality in the state; §26.023, which requires the commission to establish water quality standards; §26.027, which grants the commission the authority to issue permits for discharges into water in the state; §26.121, which prohibits the unauthorized discharge of waste into water in the state; and §26.127, which designates the commission as the principal authority on matters relating to the quality of water in the state.

§279.1.General.

This chapter governs the issuance by the Texas Natural Resource Conservation Commission of state certifications [ within the jurisdiction of the Texas Natural Resource Conservation Commission ] as authorized by 33 United States Code , §1341, commonly known as [ the Federal Water Pollution Control Act Amendments of 1972, and ] the federal [ Federal ] Clean Water Act (CWA) , §401. [ The Federal Clean Water Act, §401(a)(1), requires that any applicant for a federal license or permit to conduct any activity including, but not limited to, the construction or operation of facilities which may result in any discharge into navigable waters of the United States, shall obtain from the state in which the discharge originates or will originate a certification that the discharge will comply with applicable provisions of 33 United States Code §§1311, 1312, 1313, 1316, and 1317 (the Federal Clean Water Act, §§208(e), 301, 302, 303, 306, and 307). The Federal Clean Water Act, §401(a)(1), further provides that the state shall establish procedures for public notice in the case of all applications for certification and, to the extent it deems appropriate, procedures for public hearings in connection with specific applications. ]

§279.2.Purpose and Policy.

(a)

This chapter establishes procedures and criteria for applying for, [ the application ] processing , and reviewing [ review of ] state [ water quality ] certifications under CWA, §401, for activities under the jurisdiction of the agency [ Texas Natural Resource Conservation Commission as required by the Federal Clean Water Act. ] It is the purpose of this chapter, consistent with the Texas Water Code and the federal CWA [ Federal Clean Water Act ], to maintain the chemical, physical, and biological integrity of the state's waters.

(b)

It is the policy of the commission [ Commission ] to achieve no overall net loss of the existing wetlands resource base with respect to wetlands functions and values in the State of Texas. All activities under the jurisdiction of the agency that [ Texas Natural Resource Conservation Commission which ] require a federal license or permit and that [ which ] may result in any discharge to waters of the United States are subject to review [ will be reviewed ] for consistency with the federal CWA [ Federal Clean Water Act ] and the Texas Surface Water Quality Standards. After such a review, the agency [ commission ] shall:

(1)-(3)

(No change.)

(4)

waive certification . The agency may condition the waiver of certification upon the agreement of an applicant to include and comply with specific water quality-related conditions in the applicant's federal permit. [ for any activity which the Commission finds will result in no discharge, or which does not fall within the purview of the Commission's authority, or concerning which the Commission expressly waives its authority to act on a request for certification for other reasons. ]

(c)

The executive director is delegated the responsibility for performing all certification functions under this chapter on behalf of the commission, except that at the request of [ a commissioner or ] the executive director, the commission may review the question of certification prior to the executive director's determination on certification.

§279.3.Definitions.

In addition to the terms defined in §3.2 of this title (relating to Definitions), the [ The ] following words and terms, when used in this chapter, shall have the following meanings[ , unless the context clearly indicates otherwise ].

(1)

401 Certification--A certification issued by the state [ to assure that a federal permit or license is consistent with state law ] as authorized under the federal CWA [ Federal Clean Water Act ], §401.

(2)

(No change.)

(3)

404 Permit--A Department of the Army permit issued under the authority of the federal CWA [ Federal Clean Water Act ], §404, which authorizes the discharge of dredged or fill material into waters of the United States. [ 404 permits can be either individual, general, or by letter of permission. Individual 404 permits are only issued following a case-by-case evaluation of a specific structure or work in accordance with 33 Code of Federal Regulations, Part 325, a determination that the proposed structure or work is in the public interest pursuant to 33 Code of Federal Regulations, Part 320, and that the proposed action is consistent with 40 Code of Federal Regulations, Part 230 (§404(b)(1) Guidelines). ]

(4)

(No change.)

[(5)

Affected person--Any person who is determined by the commission to have a legally justiciable interest that may be adversely affected by an action taken on a certification.]

(5)

[ (6) ] Applicant--Any person who applies for any license or permit granted by an agency of the federal government to conduct any activity that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state.

(6)

[ (7) ] Aquatic Ecosystem-- Water [ Waters ] in the state, including wetlands, that serve as habitat for interrelated and interacting communities and populations of plants and animals.

(7)

[ (8) ] Clean Water Act--33 United States Code , §§1251 - 1387 [ §§1151, et seq ], also known as [ and ] the federal Clean Water Act (CWA) , §§101 - 607 [ , et seq ].

[(9)

Commission--The Texas Natural Resource Conservation Commission, acting through the executive director pursuant to §279.2(c) of this title (relating to Purpose and Policy).]

(8)

[ (10) ] Department of the Army Permits--All permits and licenses issued by the Department of the Army Corps of Engineers including 404 permits and permits issued under the authority of the Rivers and Harbors Act of 1899, §10.

(9)

[ (11) ] Discharge--Deposit, conduct, drain, emit, throw, run, allow to seep, or otherwise release or dispose of any pollutant, or to allow, permit, or suffer any of these acts or omissions.

(10)

[ (12) ] District engineer--The Department of the Army representative responsible for administering, processing, and enforcing federal laws and regulations relating to the U.S. Army Corps of Engineers, including permitting.

(11)

[ (13) ] Emergency--A condition either meeting the requirements of federal law as constituting an emergency or applicable provisions of §305.21 [ §305.23 ] of this title (relating to Emergency Orders and Temporary Orders Authorized ).

[(14)

Executive director--The executive director of the Texas Natural Resource Conservation Commission.]

(12)

[ (15) ] General permit--A permit issued [ authorized ] by a federal licensing or permitting agency on a regional basis. [ General permits are designed to regulate with little delay or paperwork certain activities having minimal impacts. ]

(13)

[ (16) ] Individual permit--A permit that is issued by a federal licensing or permitting agency following an evaluation of any activity including, but not limited to, the construction or operation of a facility that [ facilities which ] may result in any discharge into waters of the United States.

(14)

[ (17) ] Licensing or permitting agency--Any agency of the federal government to which application is made for any license or permit to conduct an activity that [ which ] may result in any discharge into or adjacent to water in the state.

(15)

[ (18) ] Nationwide permit--A type of general permit authorized by a federal licensing or permitting agency [ through publication in the "Federal Register" ] that applies [ is applicable ] throughout the nation. [ Nationwide permits are designed to regulate with little delay or paperwork certain activities having minimal impacts. ]

(16)

[ (19) ] National Pollutant Discharge Elimination System (NPDES) [ NPDES ] permit--A written document issued by the regional administrator of the EPA under [ United States Environmental Protection Agency (EPA) as required by ] the federal CWA [ Federal Clean Water Act ], §402, which authorizes the discharge of any pollutant, or combination of pollutants, into navigable waters of the United States.

[(20)

Person--Any corporation, organization, government, or governmental subdivision or agency, business trust, estate, trust, partnership, association, individual, or other legal entity.]

(17)

[ (21) ] Pollutant-- Dredged [ Any dredged ] spoil, solid waste, incinerator residue, sewage, garbage, [ refuse, oil, ] sewage sludge, filter backwash, munitions, chemical wastes [ hazardous waste ], [ hazardous substance, chemical waste, ] biological materials [ material ], radioactive materials [ substance ], heat, wrecked or discarded equipment, rock, sand, cellar dirt, and [ or ] industrial, [ recreational, ] municipal, and agricultural[ , or other ] waste discharged into any water in the state. The term "pollutant" does not include tail water or runoff water from irrigation or rainwater runoff from cultivated or uncultivated rangeland, pastureland, and farmland .

(18)

[ (22) ] Practicable--Available and capable of being done after taking into consideration cost, existing technology, and logistics in light of overall project purposes.

(19)

[ (23) ] Regional administrator--The administrator of the EPA [ United States Environmental Agency ], Region VI.

(20)

[ (24) ] Water dependent activity--An activity that [ which ] is proposed for or adjacent to an aquatic site that requires access, proximity to, or siting within an aquatic site to fulfill its basic purpose.

[(25)

Water quality limited segment--Any segment where it is known that water quality does not meet applicable water quality standards, and/or is not expected to meet applicable water quality standards, even after the application of the technology-based effluent limitations required by the Federal Clean Water Act, §301(b) and §306.]

(21)

[ (26) ] Water Quality Standards--Texas Surface Water Quality Standards, Chapter 307 of this title (relating to Texas Surface Water Quality Standards).

§279.4.Application for Certification.

(a)

National Pollutant Discharge Elimination System (NPDES) [ NPDES ] permits. No person may conduct any activity under federal permit or license that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state unless the person has received a certification or waiver under this chapter. The regional administrator or the permit applicant may submit a request for certification.

(1)-(3)

(No change.)

(b)

Department of the Army permits. No person may conduct any activity under federal permit or license that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state unless the person has received a certification or waiver under this chapter. The district engineer or the permit applicant may submit a request for certification.

(1)-(2)

(No change.)

(3)

The executive director may elect to delay acting on a request for certification until after a review of a final [ preliminary ] permit decision document .

(c)

Other federal licenses or permits. For those federal licenses or permits issued by federal agencies other than the EPA [ United States Environmental Protection Agency ] or the Department of the Army that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state, the permittee must receive certification or waiver under this chapter prior to conducting any permitted activity.

(1)-(3)

(No change.)

(d)

Review of application for certification. Where the executive director believes more information is required in order to accomplish the review of the request for certification, he shall notify the applicant or licensing or permitting agency and request the [ such ] information.

(e)

Submission of additional materials. The applicant shall submit in timely fashion, at any time during the review process, additional materials that [ which ] the executive director finds to be necessary for review of the application. In no case will the applicant have less than 30 days to submit the information.

§279.5.Notice of Application.

(a)

The executive director to the greatest extent practicable shall use [ utilize ] a joint mailed notice issued by the [ Department of the Army, or the United States Environmental Protection Agency, or other ] licensing or permitting [ permit ] agency [ after agreements with those agencies have been reached regarding the content of the notice and the persons entitled to notice in Texas. ]

(b)

If a joint notice is not used [ utilized ] as provided in subsection (a) of this section and the executive director finds that all necessary materials have been received, the executive director [ he ] shall mail notice of the application for certification to:

(1)-(7)

(No change.)

(8)

the EPA [ United States Environmental Protection Agency ], Region 6;

(9)

(No change.)

(10)

the Secretary of the Coastal Coordination Council; and

[(11)

any known interested persons; and]

(11)

[ (12) ] the applicant.

(c)

Any public notice issued under subsection (b) of this section shall contain:

(1)-(2)

(No change.)

(3)

a statement that the applicant is seeking certification under the federal CWA [ Federal Clean Water Act ], §401;

(4)

a statement that any comments concerning the application may be submitted to the executive director of the agency [ Texas Natural Resource Conservation Commission ], Attention 401 Coordinator, MC 150, P.O. Box 13087, Austin, Texas 78711-3087, and a deadline for written public comment of no less than 30 days;

(5)

(No change.)

(6)

a statement indicating how [ affected ] persons can request a public meeting [ hearing ].

(d)

The executive director may waive notice requirements of this section when it is determined that a certification will be waived.

(e)

[ (d) ] The executive director may waive notice and meeting [ hearing ] requirements of this section [ subsection ] and §§279.6 - 279.8 of this title (relating to Public Comments, [ Nonadjudicated ] Public Meetings [ Hearings ], and Notice of Public Meeting [ Hearing ]) and issue a final agency [ commission ] action in accordance with [ pursuant to ] §§279.10 - 279.12 of this title (relating to Final Agency Action [ Commission ] on National Pollutant Discharge Elimination System (NPDES) [ NPDES ] Permits, Final Agency [ Commission ] Action on [ the ] Department of the Army Permits [ and Other Permits ], and Other State Certification) when an emergency as defined in §279.3 of this title (relating to Definitions) has been determined to exist and it is in the public interest to issue [ provide ] a certification decision in less than 30 days.

§279.6.Public Comments.

The executive director shall consider all comments related to the impacts of the proposed activity received [ submitted ] in accordance with these rules for permit applications subject to review, unless a public notice has been waived under §279.5(d) or (e) of this title (relating to Notice of Application) .

§279.7.[ Nonadjudicated ] Public Meetings [ Hearings ].

(a)

The executive director may conduct a [ nonadjudicative ] public meeting [ comment hearing ] on any application for 401 certification if the executive director determines , based on public comment received during the public comment period, that such a meeting [ hearing ] would be appropriate [ or if such a hearing is requested by any affected person in writing within 30 days after the publication of notice of application ]. The executive director shall conduct a [ nonadjudicative ] public meeting [ comment hearing ] on an application for 401 certification if a request for such a meeting [ hearing ] is made by a commissioner [ Commissioner ]. [ The written request shall contain the following information: ]

[(1)

the name, mailing address, and phone number of the person making the request;]

[(2)

the application number or other recognizable reference to the application;]

[(3)

a brief description of the interest of the requestor, or of persons represented by the requestor; and]

[(4)

a brief description of how the application, if granted, would adversely affect such interest.]

(b)

If a public meeting [ hearing ] is held, the executive director shall notify the licensing and permitting agency and request an extension of time to consider the certification. [ regional administrator in the case of an NPDES permit certification or the district engineer in the case of a Department of the Army permit certification or the designated department of any other licensing or permitting agency, giving an estimate of the additional time necessary to consider the certification, and stating that the executive director is not waiving certification. ]

(c)

All meetings [ hearings ] held under this section shall be conducted by a representative of the executive director. The [ Such ] representative shall receive comments concerning all matters affecting the 401 certification.

(d)

(No change.)

§279.8.Notice of [ Nonadjudicated ] Public Meeting [ Hearing ].

(a)

The executive director shall notify the applicant not less than ten [ 30 ] days before the date set for meeting [ hearing ] that a [ nonadjudicative ] public meeting [ hearing ] will be held on the application. The [ Such ] notice shall be by certified mail, return receipt requested.

(b)

The [ Such ] notice of meeting [ hearing ] shall identify the application; the date; time; place and nature of the meeting [ hearing ]; the legal authority and jurisdiction under which the meeting [ hearing ] is to be held; the proposed action; the requirements for submitting written comments; the method for obtaining additional information; and [ such ] other information as the executive director deems necessary.

(c)

The executive director will transmit the notice by first-class mail or by personal service to:

(1)

(No change.)

(2)

the mayor and health authorities of the city or town in which the activity is or will be located or in which pollutants will be discharged [ waste is or will be disposed of ];

(3)

the county judge and health authorities of the county in which the activity is or will be [ facility is ] located or in which pollutants will be discharged [ waste is or will be disposed of ];

(4)-(7)

(No change.)

(8)

the EPA [ United States Environmental Protection Agency ], Region 6;

(9)-(10)

(No change.)

(11)

any person from whom written comment was received during the comment period, provided that the comment included a legible mailing address for the commenter [ known interested persons ].

(d)

The date of mailing the [ such ] notice of meeting [ hearing ] shall be at least ten [ 30 ] days before the date set for the meeting [ such hearing ].

§279.9.Executive Director Review of Water Quality Certification Application.

(a)

The executive director shall conduct a review or waive certification.

(b)

If the executive director conducts a review, the [ The ] executive director shall , after the review and any public meeting held on the application, determine whether the proposed activity will:

(1)

result in any discharge;

(2)

result in any violation of 33 United States Code, §§1311, 1312, 1313, 1316, or 1317 [ the Federal Clean Water Act, and the criteria in §279.11(c) of this title (relating to Final Commission Action on Department of the Army Permits) for 404 permits ];

(3)

result in any violation of applicable water quality standards; or

(4)

result in any violation of any other appropriate requirements of state law.

§279.10.Final Agency [ Commission ] Action on National Pollutant Discharge Elimination System (NPDES) [ NPDES ] Permits.

(a)

The executive director shall issue a final determination within 60 days from the date the draft permit is mailed by the Regional Administrator, EPA [ United States Environmental Protection Agency ], as required by 40 Code of Federal Regulations §124.53, unless the executive director in consultation with the Regional Administrator finds that unusual circumstances require a longer time. The executive director shall send notice of the decision to deny, grant, grant conditionally, or waive the certification, and a copy of the certification (if granted) , [ including a copy of the certification, ] to the applicant, the regional administrator , and any person so requesting [ of the decision to deny, grant, grant conditionally or waive the certification ]. The [ Such ] notification shall be in writing and shall include:

(1)

(No change.)

(2)

conditions that [ which ] are necessary to assure compliance with the applicable provisions of the federal CWA [ Federal Clean Water Act ], §§208(e), 301, 302, 303, 306, and 307, and with appropriate requirements of state law;

(3)

when the agency [ state ] certifies a draft permit instead of a permit application, any condition required to assure compliance with the provisions of the federal CWA [ Federal Clean Water Act ], §§208(e), 301, 302, 303, 306, and 307, and with appropriate requirements of state law shall be identified citing the federal CWA [ Federal Clean Water Act ] or state statutes [ law references ] upon which that condition is based[ . Failure to provide such a citation waives the right to certify with respect to that condition ]; and

(4)

a statement of the extent to which each condition of the draft permit can be made less stringent without violating the requirements of state law, including water quality standards. [ Failure to provide this statement for any condition waives the right to certify or object to any less stringent condition which may be established during the United States Environmental Protection Agency permit issuance process. ]

(b)

(No change.)

§279.11.Final Agency [ Commission ] Action on Department of the Army Permits.

(a)

The executive director shall review or waive certification of any [ all ] permit application in accordance [ applications for consistency ] with §279.9 of this title (relating to Executive Director Review of Water Quality Certification) . When an application is reviewed, the executive director [ and ] shall take [ issue a ] final action [ determination ] within 60 days after receiving the [ receipt of a ] certification request from the U.S. Army Corps of Engineers (Corps) [ district engineer ] as required by 33 Code of Federal Regulations , §325.2(b) unless the executive director, in consultation with the Corps [ district engineer ], determines a shorter or longer period is reasonable.

(b)

(No change.)

(c)

If the [ The ] executive director reviews a [ shall review all ] request for certification of a 404 permit activity, the review shall be performed [ activities ] using the following criteria.

(1)

No discharge shall be certified if there is a practicable alternative to the proposed discharge that [ which ] would have less adverse impact on the aquatic ecosystem, so long as the alternative does not have other more significant adverse environmental consequences. Activities that [ which ] are not water dependent are presumed to have a practicable alternative [ alternatives ], unless the applicant [ clearly ] demonstrates otherwise. For the purposes of this section compensatory mitigation is not considered an alternative.

(2)

No discharge of dredged or fill material shall be certified unless appropriate and practicable steps have been taken that [ which ] will minimize potential adverse impacts of the discharge on the aquatic ecosystem.

(3)

Certification shall require appropriate and practicable compensatory mitigation for all unavoidable adverse impacts that [ which ] remain after all practicable avoidance and minimization has been completed. Compensatory mitigation requirements will provide for a replacement of impacted functions and values.

(4)

If the executive director determines that [ There may be circumstances where ] the impacts of the project are so significant that the proposed compensatory mitigation will not accomplish the purpose and policy of this chapter [ even if alternatives are not available ], certification may be denied even if an alternative is not available [ regardless of the compensatory mitigation proposed ].

(d)

The executive director shall send notice of the decision to deny, grant, grant conditionally, or waive certification , including a copy of the certification decision , to the applicant, the Corps [ district engineer ], the designated contact of any other licensing or permitting agency , and any person so requesting [ of the decision to deny, grant, grant conditionally or waive certification ]. The [ Such ] notification shall be in writing and shall include:

(1)

(No change.)

[(2)

a statement that the executive director:]

[(A)

examined the complete application, specifically identifying the number or code affixed to such application, and based its determination upon an evaluation of the information contained in the application which is relevant to the 401 certification; and/or]

[(B)

examined other information, sufficient to enable the executive director to reach the decision;]

(2)

[ (3) ] if certification is granted or denied, a statement of the basis for the executive director's decision , including a description of the materials and information examined during the executive director's review. The statement shall include :

[(A)

if a waiver of certification is made, a statement explaining the determination that no discharge will result from the activity, or that the activity does not fall within the jurisdiction of the Commission's authority, or the Commission expressly waives its authority to act on a request for certification for other reasons; or]

(A)

[ (B) ] if the activity is certified [ a certification or conditional certification is made ]:

(i)

a statement that there is a reasonable assurance the activity , if [ will be ] conducted in accordance with the terms of the proposed permit, [ a manner which ] will not violate the criteria enumerated in §279.9 of this title; or

(ii)

a statement of conditions, including any monitoring and reporting requirements[ , which are ] necessary to assure compliance with the criteria enumerated in §279.9 of this title;

(B)

[ (C) ] if [ a denial of ] certification is denied, an explanation of how [ made, a statement explaining why ] the proposed activity will not satisfy one or more of [ result in the unacceptable discharge of pollutants into or adjacent to waters in the state and detailing ] the criteria enumerated in §279.9 of this title [ which will be violated ].

§279.12.Other State Certification.

(a)

Nationwide Permit Certification.

(1)

The executive director shall consider all proposed nationwide permits for certification for activities that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state consistent with §279.9 of this title (relating to Executive Director Review of Water Quality Certification Application). Water quality certification [ Quality Certification ] for activities authorized under a nationwide permit is complete at the time the permit is issued. No additional certification is required for activities authorized under that nationwide permit.

(2)

When a federal licensing or permitting agency proposes a nationwide permit for an activity that [ which ] may result in a discharge, the executive director shall notify:

(A)

(No change.)

(B)

the Texas Water Development Board; and

(C)

the Texas General Land Office . [ ; ]

[(D)

any other appropriate person;]

[(E)

any person who requests to be put on the mailing list; and]

[(F)

any other appropriate person.]

(3)

After considering public comments received in accordance with §279.5 of this title (relating to Notice of Application) and other information, the executive director shall grant, grant conditionally, deny , or waive certification.

(4)

The executive director shall maintain a list of all applicable [ certifications of ] nationwide permits and the executive director's certification action on each one [ granted or granted conditionally ].

(b)

General Permit Certification.

(1)

The executive director shall consider all proposed general permits for certification for activities that [ which ] may result in any discharge into or adjacent to water [ waters ] in the state consistent with §279.9 of this title [ (relating to Executive Director Review of Water Quality Certification Application) ]. Water quality certification [ Quality Certification ] for activities authorized under a general permit is complete at the time the permit is issued. No additional certification is required for activities authorized under that general permit.

(2)

When a federal licensing or permitting agency proposes a general permit for an activity that [ which ] may result in a discharge, the executive director shall notify:

(A)

(No change.)

(B)

the Texas Water Development Board; and

(C)

the Texas General Land Office . [ ; ]

[(D)

any other appropriate person;]

[(E)

any person who requests to be put on the mailing list; and]

[(F)

any other appropriate person.]

(3)

After considering public comments received in accordance with §279.5 of this title (relating to Notice of Application) and other information , the executive director shall grant, grant conditionally, deny , or waive certification.

(4)

The executive director shall maintain a list of all applicable [ certifications of all ] general permits and the executive director's certification action taken on each one [ granted or granted conditionally ].

(c)

Final Action on Other Certification.

[ (1) ]

The executive director shall send notice of the decision to deny, grant, grant conditionally, or waive certification , including a copy of the certification if granted , to the applicant, the designated contact of the licensing or permitting agency, and any person so requesting [ of the decision to deny, grant, grant conditionally or waive certification ]. The [ Such ] notification shall be in writing and shall include:

(1)

[ (A) ] the name and address of the applicant;

(2)

[ (B) ] if certification is either granted or denied, a statement of the basis for [ that ] the executive director's decision, including a description of the materials and information examined during the executive director's review. The statement shall include [ director has either ]:

(A)

if the activity is certified;

(i)

a statement that there is a reasonable assurance the activity, if conducted according to the terms of the proposed permit, will not violate the criteria enumerated in §279.9 of this title; or [ examined the complete application, specifically identifying the number or code affixed to such application, and based on its determination upon an evaluation of the information contained in the application which is relevant to the 401 certification; and/or ]

(ii)

a statement of conditions, including any monitoring and reporting requirements, necessary to assure compliance with the criteria enumerated in §279.9 of this title [ examined other information furnished by the applicant or provided in a nonadjudicative public hearing, sufficient to permit the executive director to reach the decision ];

(B)

if certification is denied, an explanation of how the proposed activity will not satisfy one or more of the criteria enumerated in §279.9 of this title.

[(C)

a statement of basis for the executive director's decision:]

[(i)

if a waiver of certification is made, a statement explaining the determination that no discharge will result from the activity, or that the activity does not fall within the jurisdiction of the Commission's authority, or the Commission expressly waives its authority to act on a request for certification for other reasons; or]

[(ii)

if a grant or conditional grant of certification is made:]

[(I)

a statement that there is a reasonable assurance the activity will be conducted in a manner which will not violate the criteria enumerated in §279.9 of this title; or]

[(II)

a statement of conditions which the executive director deems necessary with respect to the discharge, including any necessary monitoring requirements to assure the discharge will not violate applicable water quality standards;]

[(iii)

if a denial of certification is made, a statement explaining why the activity will result in the unacceptable discharge of pollutants into or adjacent to waters in the state and detailing the criteria enumerated in §279.9 of this title which will be violated.]

[(2)

After considering public comments and other information the executive director shall grant, grant conditionally, deny or waive certification.]

§279.13.Enforcement.

Applicants whose activities are certified or conditionally certified by the executive director, or for whose activities the executive director waives certification or takes no certification action based upon the applicant's agreement to include permit terms or conditions in the federal permit, shall comply with all terms and conditions of the permit as issued by the federal agency and as thereafter amended. Violation of the agreement to include permit terms or conditions, or violation of any term or condition of a permit relating to water quality shall constitute a violation of this rule. The commission may enforce such a violation under TWC, Chapter 7, and Chapter 70 of this title (relating to Enforcement).

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 April 23, 2001.

TRD-200102301

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: June 3, 2001

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


30 TAC §279.13

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

STATUTORY AUTHORITY

The repeal is proposed under TWC, §5.102, which grants the commission the authority to carry out its powers under the TWC; §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; §5.105, which requires the commission to establish and approve all general policy of the commission by rule; and §5.120, which requires the commission to administer the law for the maximum conservation and protection of the environment and natural resources of the state. Chapter 279 governs the issuance of state water quality certifications under the federal CWA, §401, codified at 33 USC, §1341.

The repeal implements provisions of TWC, including §26.011, which requires the commission to establish and control water quality in the state; §26.023, which requires the commission to establish water quality standards; §26.027, which grants the commission the authority to issue permits for discharges into water in the state; §26.121, which prohibits the unauthorized discharge of waste into water in the state; and §26.127, which designates the commission as the principal authority on matters relating to the quality of water in the state.

§279.13.Enforcement.

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 April 23, 2001.

TRD-200102302

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: June 3, 2001

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


Chapter 322. COMMUNITY WASTEWATER PLANNING

30 TAC §§322.1 - 322.6

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

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes the repeal of Chapter 322, Community Wastewater Planning, including §322.1, Definitions; §322.2, Scope and Applicability; §322.3, Municipality Request for Implementation of a Regional Plan; §322.4, Application Requirements; §322.5, Notification; and §322.6, Commission Consideration of Regional Plans. The purpose of the repeal is to remove ineffective and unused rules.

The commission also is proposing, in concurrent action, the review of the rules in Chapter 322 as required by Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999. The proposed notice of review can be found in the Review of Agency Rules section of this issue of the Texas Register .

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED REPEALS

The commission originally proposed to readopt Chapter 322 in the rules review notice published in the October 20, 2000, issue of the Texas Register (25 TexReg 10572) because the chapter provides a mechanism for municipalities to implement a regional wastewater plan. The commission believed this mechanism would advance the policy of the state to encourage and promote the development and use of regional and area-wide wastewater systems ( see , e.g., Texas Water Code, §26.003 and §26.081). However, upon further reflection the commission concludes that the rules in this chapter have not proven to be an effective mechanism for promoting regionalization and also believes the rules are unnecessary because there are other more effective mechanisms for promoting regionalization already in place. Chapter 322 was originally adopted in response to a request from the City of Houston to assist in implementing its long-term wastewater regional plan. In the years since its adoption in 1992, neither the City of Houston, nor any other municipality has asked the TNRCC to use the authority under this chapter. During the comment period for the rules review that was published in the October 20, 2000, issue of the Texas Register , the commission received one comment. That comment, submitted on behalf of Travis County Water Control and Improvement District No. 17 (District 17), urged the TNRCC to expand the scope of the rules to require the TNRCC to follow regional plans adopted by districts, as well as those adopted by municipalities. Prior to this, in 1998, the commission denied District 17's petition for rulemaking that made the same request.

The commission is committed to promoting the development and use of regional and area-wide wastewater systems as required by the Texas Water Code. For example, in accordance with Texas Water Code, §26.027, and 30 TAC Chapter 305, the TNRCC executive director has revised the wastewater permit application to require applicants to submit detailed explanations regarding whether there is a wastewater treatment and collection system, within three miles of the area to be serviced by the proposed facility, that is willing and able to service the area and, if so, an economic justification as to why the applicant is pursuing a permit rather than connecting to the existing system. Furthermore, Texas Water Code, Chapter 13, Subchapter G, Certificates of Convenience and Necessity, allows districts to apply for certificates of convenience and necessity (CCNs), although districts are not required to obtain such a certificate. The commission has adopted a detailed policy statement and rules that address regionalization through the CCN process ( see 30 TAC §291.102(b), effective October 19, 2000). Regionalization for districts and other entities is available through this process, as well as through the process set forth in Texas Water Code, Chapter 26, Subchapter C, Regional and Area-wide Systems, to promote regional and area-wide waste collection, treatment, and disposal systems. For these reasons, rather than readopt ineffective and unused rules, the commission proposes the repeal of Chapter 322.

SECTION BY SECTION DISCUSSION

Section 322.1, Definitions; §322.2, Scope and Applicability; §322.3, Municipality Request for Implementation of a Regional Plan; §322.4, Application Requirements; §322.5, Notification; and §322.6, Commission Consideration of Regional Plans are proposed for repeal because the rules are ineffective and unused.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENTS

John Davis, Technical Specialist with Strategic Planning and Appropriations, determined that for the first five-year period after the proposed repeal of this chapter, there will be no significant implications for units of state and local government as a result of the repeal.

This chapter was originally adopted as a mechanism for municipalities to implement a regional wastewater plan to promote the state policy of regionalization. However, the chapter has proven to be an ineffective mechanism for promoting regionalization. In the years since its adoption in 1992, no municipality has asked the TNRCC to use the authority under this chapter.

PUBLIC BENEFITS AND COSTS

Mr. Davis also determined that for each year of the first five years after the proposed repeal of this chapter, the public benefit anticipated from the repeal will be removal of ineffective and unused rules promulgated under this chapter.

This chapter was originally adopted as a mechanism for municipalities to implement a regional wastewater plan to promote the state policy of regionalization. No significant fiscal implications are anticipated to any person or business as a result of repealing the provisions of this chapter because it has not been used since adopted in 1992. There are no known individuals or businesses that would be affected by this rulemaking.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated to any small or micro-business as a result of repealing the provisions of this chapter because this chapter has not been used since adopted in 1992. This chapter was originally adopted as a mechanism for municipalities to implement a regional wastewater plan to promote the state policy of regionalization. There are no known small or micro- businesses that would be affected by this rulemaking.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking is not subject to §2001.0225 because the proposed repeal of Chapter 322 would not result in a rule which meets 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. Because the specific intent of the proposed rulemaking is to repeal ineffective and unused rules, and does not add regulatory requirements to existing rules, the rulemaking is not anticipated to have an adverse material effect on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, this repeal is not intended to protect the environment or reduce risks to human health from environmental exposure. Therefore, this rulemaking does not meet the definition of a "major environmental rule." 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. The rulemaking is proposed specifically to repeal ineffective and unused rules and does not meet any of these four criteria of a "major environmental rule." The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated the proposed repeal and performed a preliminary assessment of whether the proposed repeal constitutes a taking under Texas Government Code, Chapter 2007. The following is a summary of that assessment. The specific purpose of the proposed rulemaking is to repeal Chapter 322 because the rules are ineffective and unused. Adoption of the repeal would not affect private real property, restrict or limit the owner's right to property that otherwise would exist in the absence of the rulemaking, or be the producing cause of the reduction in the market value of private real property.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the proposal is a rulemaking that will affect an action or authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11, because the Chapter 322 rules concern commission consideration of regional plans when evaluating domestic wastewater discharge permit applications. Therefore, applicable goals and policies of the Texas Coastal Management Program (CMP) must be considered during the rulemaking process. The commission reviewed the proposed repeal for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council and determined that the rulemaking is consistent with the goals and policies of the CMP. Because the proposed action would repeal unused and ineffective rules, it will not have direct or significant adverse effect on any coastal natural resource areas, nor will the rulemaking have a substantive effect on commission actions subject to the CMP. The commission is accepting public comments in regards to this CMP consistency determination.

SUBMITTAL OF COMMENTS

Comments may be submitted to Joyce Spencer, 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 2000-039-322-WT. Comments must be received by 5:00 p.m., June 4, 2001. For further information, please contact Jill Burditt, Regulation Development Section, at (512) 239-0560.

STATUTORY AUTHORITY

The repeals are proposed under Texas Water Code (TWC), §5.102, which provides the commission with the general powers to carry out its duties under the TWC, and §5.103, which provides the commission with the authority to adopt any rules necessary to carry out the powers and the duties under the provisions of the TWC and other laws of this state. The repeals are proposed as a result of a rule review done in accordance with the requirements of Texas Government Code, §2001.039, and in accordance with the requirements of the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999, which require state agencies to review and consider for readoption each of their rules every four years.

The proposed repeals implement TWC, §5.102, General Powers, and §5.103, Rules.

§322.1.Definitions.

§322.2.Scope and Applicability.

§322.3.Municipality Request for Implementation of a Regional Plan.

§322.4.Application Requirements.

§322.5.Notification.

§322.6.Commission Consideration of Regional Plans.

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 April 23, 2001.

TRD-200102304

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: June 3, 2001

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