Kathleen Hartnett White, Chuirmun 

Larry R. Soward, Commissioner 

H. S. Buddy Garcia, Commissioner 

Glenn Shanltle, Executive Director 

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY 

Protecting Texas by Reducing and Preventing Pollution 

August 16,2007 

Docket No. 2006-2026-RUL 

Richard E. Greene, Regional Ad~ninistrator 

U.S. Environmental Protection Agency - Region 6 

1445 Ross Avenue 

Dallas, Texas 75202-2733 

Dear Mayor Greene: 

On July 25, 2007, the Texas Commission on Environlnental Quality (Commission) adopted revisions to the 

State Implementation Plan (SIP). 

The Colnmission adopted amendments to Sections 101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 

101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of Section 101.22 of 30 TAC 

' Chapter 101, General Air Quality Rules, and corresponding revisions to the SIP. The adoption corrects 

references to sections of 30 TAC Chapter 117, Control of Air Pollution from Nitrogen Compounds, which 

have changed due to the reorganization of Chapter 117, revises definitions, removes an obsolete effective 

date, and corrects references to the coinmission. 

Enclosed are the proposed revisions to the SIP, a public hearing certification, a complete record of the public 

hearing, and the accompanying order. I look forward to your expeditious approval of these SIP revisions. 

Sincerely, 

athleen Hartnett White 

I 

Chairman 

Enclosures 

P.O. Box 13087 Austin, Texas 78711-3087 . 512-239-1000 Internet address: www.tceq.state.tx.us 

printed on r~cvclcd pdpcr ualng soy-hdsed ~nh 
August 16,2007 

Docket No. 2006-2026-RUL 

THE STATE OF TEXAS 

COUNTY OF TRAVIS 

This is to certify that the attached are true and correct copies of documents for revisions to the Texas 

state Implementation Plan, adopted on July 25, 2007, pursuant to 40 Code of Federal Regulations 3 51.104. I 

am the records administrator for the General Law Division of the Texas Coinmission on Environmental 

 hal lit^ (Commission). 

Richard Hyde /' 

Director, Air Permits Division 

Texas Commission on Environmental Quality 
Texas Commission on 

Environmental Quality 

Public Hearing 

March 20,2007 

30 TAC Chapter 101 

General Air Quality Rules 

Rule Project No. 2006-053-1 01 -PR 
INTRODUCTION 

The Texas Commission on Environmental Quality (commissioi~) held a public hearing in 

Austin on March 20, 2007 to receive testimony regarding revisions to 30 TAC Chapter 

101, General Air Quality Rules; and corresponding revisions to the Texas state 

implementation plan (SIP). 

The amendments to $$10l.l, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 

101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of $101.22 would 

correct references to sections of 30 TAC Chapter 11 7, Control of Air Pollution from 

Nitrogen Compounds, which have changed due to the reorganization of Chapter 11 7. 

This rulemaking would also include revisions identified during the last review of Chapter 

101 including changes to the definitions of cold solvent cleaning, conveyorized 

degreasing, high-volume, low-pressure spray guns, open-top vapor degreasing, standard 

conditions, and visible emissions. A definition for nitrogen oxides would be added, the 

definitions of hazardous waste management facility and hazardous waste management 

unit would be deleted, and an obsolete effective date section would be removed. 

The comment period closed on March 26, 2007. All testimony and cominents have been 

reviewed and seriously considered. 

Public Notification and Proposal 

Written and Oral Testimony 

Evaluation of Testimony 

Staff Recoilil~lendations 

Additional copies of this hearing record are nlaintaiiled in the TCEQ central office at 

12100 Park 35 Circle, Austin, Texas 78753. For further inforn~ation, contact Becky 

Southard at (51 2) 239-1638. 
PUBLIC

NOTIFICATION AND

PROPOSAL
PUBLIC NO'I'IFICATION 

Notification to the public of the proposed revisions was conducted by the 

following procedures: 

1. Publication of the notice of public hearing in the following newspapers on 

the dates listed: 

Austin American-Statesman February 12, 2007 

Fort Worth Star-Telegram February 12, 2007 

Houston Chronicle February 12,2007 

2. Publication of the public hearing notice in the Texas Register on February 

23,2007 (32 TexReg 966). 

3. Publication of the proposed rules in the Texas Register on February 23, 

2007 (32 TexReg 7 1 3). 

4. Correspondence forwarding the notice of public hearing to the following 

officials and agencies: 

Speaker of the House 

Lieutenant Governor 

City of El Paso 

City of Victoria Planning Department 
Dallas Department of Health and Human Services 

El Paso City-County Health District 

Federal Highway Administration 

Fort Worth Public Health Department 

Galveston County Health District 

Houston Department of Health and Human Services 

Harris County Pollution Control Department 

North Central Texas Council of Governments 

Houston-Galveston Area Council 

South East Texas Regional Planning Commission 

Texas Department of Transportation 

Texas Transportation Institute 

Arkansas Department of Pollution Control and Ecology 

Louisiana Department of Environmental Quality 

New Mexico Air Quality Bureau 

Oklahoma Department of Environmental Quality 

U. S. Environmental Protection Agency 
EXAMPLE OF NEWSPAPER CLASSIFIED AD 

Fort Worth Star-Telegram 

February 12, 2007 

Ad Copy: 
Operational Requirement 

tion d~tch treatment unit 

TAC $305.125(1) and (5 

Operational Requirement 

lines from the digester an 

servation and Development 

Project which provides the c 

have been disposed of illegal 

ican Conference of the 

; DOCKET NUMBER: 

2003; 30 TAC $290.1 

to take four repeat s coliform-positive sample 

found in a month and 

OFFICE: Tyler Regional 291 6 Teague Drive, Tyler, Texas 

FACILITY concrete batch 

$ 1 16.1 lO(a), and THSC, nd $382.05 18(a), by failing 

TRD-200700444 

Mary Risner 

Director, Litigation Division 

Filed: February 13, 2007 

Notice of Public Hearing on Proposed Revisions to 30 TAC 

Chapter 101 and to the State Irnplelnentation Plan 

The Texas Commission 011 Environmental Quality (commission) will 

conduct a public hearing to receive testimony regarding proposed revisions to 30 Texas Administrative Code (TAC) Chapter 10 1, General 

Air Quality Rules. and to the state i~nplementation plan (SIP), under 

the requirements of Texas Health and Safety Code, $382.01 7; Texas 

Government Code. Chapter 2001, Subchapter B; and 40 Code of Federal Regulations $51.102 of the United States Environmental Protection Agency (EPA) regulations concerning SIPS. 

The proposed rulemaking would correct references to sections of 30 

TAC Chapter 11 7 which are changing due to the reorganization of 

Chapter 117. This rulemaking would also include revisions identified 

during the last review of Chapter 101, including changes to the definitions of visible emissions, cold solvent cleaning. conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray 

guns, and standard conditions. A definition for nitrogen oxides would 

be added, the definitions of hazardous waste management facility and 

hazardous waste management unit would be deleted, references to the 

title of the commission would be corrected, and an obsolete effective 

date section would be removed. 

A public hearing on this proposal will be held in Austin, Texas, on 

March 20,2007. at 10:OO a.m.. in Building B, Room 201A, at the Texas 

Commission on Environ~nental Quality complex located at 121 00 Park 

35 Circle. The hearing will be structured for the receipt of oral or written comments by interested persons. Registration will begin 30 minutesprior to the hearing. Individuals may present oral statements when 

called upon in order of registration. There will be no open discussion 

during the Ilearing; llowever, commission staff members will be available 6 discuss the proposal 30 minutes prior to the hearing. 

Persons planning to attend the hearing, who have special communication or other accomn~odation needs, should contact Lola Brown, Office 

of Legal Services, at (5 12) 239-0348. Requests should be made as far 

in advance as possible. 

Comments may be submitted to Lola Brown, MC 205, Texas Register 

Team, Office of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087 or 

faxed to (512) 239-4808. Electronic comments may be submitted at 

hrrp://~~~~~~~~.rceq.smle.t.x.z~s/,-~~~es/ecoii~nient~. The comment period 

closes March 26, 7007. All comments should reference Rule Project 

Number 2006-053-101-PR. The proposed rules may be viewed on the 

commission's Web s~te at hrrp:Mvn~~:rcey.srare.rx.trs/~inv/~-lrles4ropose-ndopr.hf1111. For further information or questions concerning 

this proposal, please contact Becky Southard, Air Pennits Division, at 

(512) 239-1638. 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Filed: February 9, 2007 

Superfund Site. 

32 TexReg 966 February 23, 2007 Texas Register 
239-4808. Electronic comments may be submitted at 

http://www5.tceq. state.tx. us/rules/ecomments/. All comments 

should reference Rule Project Number 2007-003-080-LS. 

The comment period closes March 26, 2007. Copies of the 

proposed rule can be obtained from the commission's Web site 

at http://www. tceq. state.tx. us/nav/rules/propose_adopt. html. 

For further information, please contact Janis Hudson, 

Environmental Law Division, (512) 239-0466. 

STATUTORY AUTHOR lTY 

The amendment is proposed under Texas Water Code, $5.013, 

concerning General Jurisdiction of the commission, which establishes the commission's general authority to carry out its jurisdiction; $5.102, concerning the commission's General Powers, including calling and holding hearings and issuing orders; $5.103, 

concerning Rules, which requires the commission to adopt rules 

when amending any agency statement of general applicability 

that describes the procedures or practice requirements of an 

agency; and $5.1 05, concerning General Policy, which authorize the commission to adopt rules necessary to carry out its 

powers and duties under the Texas Water Code; and $5.228, 

which establishes the executive director's authority to participate 

in contested case hearings. Additionally, the amendment is proposed under Texas Government Code, $2001.004, concerning 

Requirement to Adopt Rules of Practice and Index Rules, Orders 

and Decisions, which requires state agencies to adopt rules of 

practice and procedure. 

The proposed amendment implements Texas Water Code, 

$5.228. 

$80.108. Exectifive Di~vctor Part?: Staf~c.7 in Pernzit Hearings. 

(a) Except to the extent superseded by subsection (b) of this 

section, the executive director shall not participale as a party in the 

following contested case hearings concerning permitting matters: 

(1) - (3) (No change.) 

(4) an application for a pennit for a municipal solid waste 

transfer facility under $330.7 [+2&4] of this title (relating to Permit 

Required); 

(5) an application for a permit for the processing of grit and 

grease trap waste under under E330.7 [@3&4] of this title; 

(6) - (7) (No change.) 

(b) - (1) (No change.) 

Notwlthstandinguire~iients of subsections (a) and 

(c) 04s section regarding executive director party participation, the 

executive director shall participate asarty if directed to do so by the 

.- com~nission. 

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 February 9, 

TRD-200700381 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25, 2007 

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

CHAPTER 10 1. GENERAL AIR QUALITY 

RULES 

The Texas Commission on ~nviron'mental Quality (TCEQ 

or commission) proposes amendments to $$I01 .I, 101.23, 

101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 

101.360, 101.372, 101.376, 101.383, and 101.385 and the 

repeal of $101.22. 

The amended sections and repeal will be submitted to the United 

States Environmental Protection Agency (EPA) as revisions to 

the Texas State Implementation Plan (SIP). 

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS 

FOR THE PROPOSED RULES 

The commission has proposed revisions to Title 30 Texas Administrative Code (30 TAC) Chapter 117, Control of Air Pollution from 

Nitrogen Compounds, as part of the SIP for the Houston-Galveston-Brazoria (HGB) and Dallas-Fort Worth (DFW) nonattainment areas. Under those revisions, Chapter 117 would be reorganized. Chapter 101, General Air Quality Rules, contains references to sections of Chapter 117 which are changing due to 

the reorganization, requiring that the cited references in Chapter 

101 also change. This proposal also includes revisions identified during the last review of Chapter 101, including changes to 

the definitions of visible emissions, cold solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume 

low-pressure spray guns, and standard conditions. Other proposed changes would delete the definitions of hazardous waste 

management facility and hazardous waste management unit, 

add a definition for nitrogen oxides, update references to include 

the correct title of the commission, and remove an obsolete effective date section. 

SECTION BY SECTION DISCUSSION 

$101.1. Definitions. 

The commission proposes to modify the opening paragraph of 

this section to specify that the definitions in $101.1 apply to all 

air quality rules. The commission proposes to change the definitions of cold solvent cleaning, conveyorized degreasing, and 

open-top vapor degreasing by deleting the word "metal" so that 

the processes also apply to cleaning non-metal parts. The commission proposes to delete the definitions of hazardous waste 

management facility and hazardous waste management unit because they are not found in any of the air rules. The proposed 

revision to the definition of high-volume low-pressure spray guns 

specifies that the operating pressure of this equipment is measured at the air cap because this provides the most accurate 

measurement. The commission proposes to add the definition 

from Chapter 117 of nitrogen oxides because this is a common 

term used throughout the commission's air quality rules. The 

commission proposes to delete the last sentence of the definition of standard conditions that reads: "Pollutant concentrations 

from an incinerator will be corrected to a condition of 50% excess air if the incinerator is operating at greater than 50% excess 

air." The amount of air present in combustion is a variable and 

does not qualify as a standard condition. The commission proposes to change the second sentence of the definition of visible 

emissions to read: "The radiant energy from an open flame is 

not considered a visible emission under this definition." Radiant 

energy may manifest some visual effects but there is no air contaminant emitted. 

$101.22. Effective Date. 

PROPOSED RULES February 23,2007 32 TexReg 713 
The commission proposes the repeal of this section because it 

is no longer required. 

$101.23. Alternate Emission Reduction ("Bubble") Policy 

The commission proposes to replace references to Texas Air 

Control Board with Texas Commission on Environmental Quality (TCEQ). The commission proposes to replace the reference 

to "Regulations I, 11, Ill, V, VII, and IX" with "Chapters 111, 112, 

11 3, 11 5, and 117." The reference to Chapter 11 9 was removed 

because this chapter has been repealed. The commission proposes to replace a reference to the obsolete term "board order" 

with "commission order." In the last sentence of the section, the 

commission proposes to replace "he" with "the executive director." 

$101.302. General Provisions. 

The commission proposes to replace references to Chapter 11 7 

section numbers with the newly renumbered Chapter 117 sections. 

$1 01.306. Emission Credit Use. 

The commission proposes to replace references to Chapter 117 

section numbers with the newly renumbered Chapter 117 sections. 

$101.350. Definitions 

The commission proposes replacing the definition of Houston/Galveston (HGA) ozone nonattainment area with Houston-Galveston-Brazoria (HGB) ozone nonattainment area 

because the name of the nonattainment area has changed. 

$10 1.351. Applicability 

The commission proposes to replace references to Chapter 117 

section numbers with the newly renumbered Chapter 117 sections. 

$101.353. Allocation of Allowances. 

The commission proposes to replace references to Chapter 11 7 

section numbers with the newly renumbered Chapter 117 sections. 

$1 01.354. Allowance Deductions. 

-. 

I ne commission proposes to repiace references to Chapter ii7 

section numbers with the newly renumbered Chapter 117 sections. 

$101.360. Level of Activity Certification. 

The commission proposes to replace references to Chapter 11 7 

section numbers with the newly renumbered Chapter 117 sections. 

$ 10 1.3 72. General Provisions. 

The commission proposes to replace references to Chapter 117 

section numbers with the newly renumbered Chapter 117 sections. 

$101.376. Discrete Emission Credit Use. 

The commission proposes to replace references to Chapter 117 

section numbers with the newly renumbered Chapter 117 sections. 

$101.383. General Provisions. 

The commission proposes to replace references to Chapter 117 

section numbers with the newly renumbered Chapter 117 sections. 

$101.385. Recordkeeping and Reporting. 

The commission proposes to replace references to Chapter 11 7 

section numbers with the newly renumbered Chapter 117 sections. 

The commission also proposes minor administrative changes to 

address conformity to: Texas Register requirements and other 

agency rules and guidelines. 

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT 

Nina Chamness, Analyst, Strategic Planning and Assessment. 

determined that, for the first five-year period the proposed rules 

are in effect, no fiscal implications are anticipated forthe agency 

or other units of state or local governments as a result of administration or enforcement of the proposed rules. The proposed rules 

are administrative in nature and will amend sections of Chapter 

101 to coincide correctly with proposed changes to Chapter 117. 

Fiscal implications pertaining to the proposed rules for Chapter 

117 can be found in that rule package. 

The commission previously proposed a reorganization and 

revision of Chapter 117 as part of the SIP for the HGB and DFW 

nonattainment areas. This proposed revision to Chapter 117 

also requires revision of Chapter 101 so that cited references 

in the two chapters agree with one another. The proposed rule 

changes to Chapter 101 will also revise definitions of visible 

emissions, cold solvent cleaning, conveyorized degreasing, 

open-top vapor degreasing, high-volume low-pressure spray 

guns, and standard conditions. The proposed rules will also 

delete the definitions of hazardous waste management facility 

and hazardous waste management unit, add a definition for 

nitrogen oxides, and make minor administrative changes to 

update obsolete information contained in the current rules. 

PUBLIC BENEFITS AND COSTS 

Ms. Chamness also determined that for each year of the first 

five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be a 

more correct set of general rules governing air emiss~ons that 

allow the regulated community to comply with federal and state 

laws with greater ease and efficiency. 

The proposed rules will affect entities that must currently cornply with regulations promulgated in Chapter 101. Businesses 

and individuals are not expected to experience any fiscal implications as a result of the proposed rules, which make administrative changes to Chapter 101 to coincide with proposed amendments to and reorganization of Chapter 117. 

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT 

No adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rules, which are administrative in nature. 

LOCAL EMPLOYMENT IMPACT STATEMENT 

The commission has reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the 

proposed rules are in effect. 

32 TexReg 714 February 23, 2007 Texas Register 
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 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. A major environmental rule means a rule, the specific intent of which is to protect 

the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way 

the economy, productivity, competition, jobs, the environment, or 

the public health and safety of the state or a sector of the state. 

Although the specific intent is to protect the environment, these 

proposed amendments are mainly an administrative action only, 

to correct and update cross-references to Chapter 117, which 

is being reorganized, modify certain definitions, and make other 

procedural changes to Chapter 101. 

Chapter 117, Control of Air Pollution from Nitrogen Compounds, 

is currently proposed for reorganization. Chapter 101, General 

Air Quality Rules, contains extensive references to sections of 

Chapter 117 that are changing because of the reorganization. 

The references contained in Chapter 101 must change accordingly. This proposal also includes revisions identified during 

the last review of Chapter 101 by the executive director and 

includes changes to the definitions of visible emissions, cold 

solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard 

conditions. Other proposed changes would delete the definitions of hazardous waste management facility and hazardous 

waste management unit, add a definition for nitrogen oxides, 

update references to the title of the commission, and remove 

an obsolete effective date section. The adopted rules will not 

adversely affect in a material way the economy, a sector of the 

economy, productivity, competition, jobs, the environment, or 

the public health and safety of the state or a sector of the state. 

In addition, 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 

Government Code, Chapter 2007. The primary purpose of the 

rulemaking is to update references to sections of Chapter 117. 

which is being reorganized, to modify certain definitions, and to 

make other procedural changes to Chapter 101. These amendments do not affect private property in a manner that restricts 

or limits an owner's right to the property that would otherwise 

exist in the absence of the governmental action. Therefore, promulgation and enforcement of these proposed rules is neither a 

statutory nor a constitutional taking because they do not affect 

private real property. Therefore, these rules do not constitute a 

taking under Texas Government Code, Chapter 2007. 

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM 

The commission reviewed the proposed rulemaking and found 

the proposal is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating 

to rules subject to the Coastal Management Program, and will, 

therefore, require that goals and policies of the Texas Coastal 

Management Program (CMP) be considered during the rulemaking process. The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with 

the regulations of the Coastal Coordination Council and determined that the amendments are consistent with CMP goals and 

policies. The CMP goal applicable to this rulemaking action is 

the goal to protect, preserve, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource 

areas (31 TAC §501.12(1)). The proposed rules update references and definitions. No new sources of air contaminants will 

be authorized and the revisions will maintain the same level of 

emissions control as previous rules. The CMP policy applicable 

to this rulernaking action is the policy that the commission's rules 

comply with federal regulations in 40 Code of Federal Regulations, to protect and enhance air quality in the coastal areas (31 

TAC §501.14(q)). This rulemaking action complies with 40 Code 

of Federal Regulations Part 51, Requirements for Preparation, 

Adoption, and Submittal of Implementation Plans. Therefore, in 

accordance with 31 TAC §505.22(e), the commission affirms that 

this rulernaking action is consistent with CMP goals and policies. 

Written comments on the consistency of this rulemaking may be 

submitted to the contact person at the address listed under the 

SUBMllTAL OF COMMENTS section of this preamble. 

EFFECT ON SITES SUBJECT TO THE FEDERAL OPERATING 

PERMITS PROGRAM 

or contract between the state and an agency or representative The amended sections are applicable requirements under the the federal government a state and federal pro- Federal Operating Permits Program, but no revisions to operat- gram; or 4) adopt a rule solely under the general powers of the ing permits will be required, agency instead of under a specific state law. This rulemaking 

does not exceed a standard set by federal law, and the adopted ANNOUNCEMENT OF HEARING 

requirements are consistent with applicable federal standards. 

In addition, this proposal does not exceed an express require- The commission will hold a public hearing on this proposal in 

Austin on March 20, 2007, at 10:OO a.m. in Building B, Room merit of state law and is not adopted solely under the general 201A, at the commissionls central office located at 12100 Park powers of the agency, but is specifically authorized by the provisions cited in the STATUTORY section of this pre- 35 Circle. The hearing is structured for the receipt of oral or writamble. Finally, this rulemaking does not exceed a requirement ten comments by interested persons. Individuals may present 

of a delegation agreement or contract to implement a state and oral statements when called upon in order of registration. There 

federal program. will be no open discussion during the hearing; however, commission staff members will be available to discuss the proposal 30 

The commission invites public comment on the draft regulatory minutes before the hearing. 

impact analysis determination. Persons who have special communication or other accommodaTAKINGS IMPACT ASSESSMENT tion needs who are planning to attend the hearing should contact 

Lola Brown Office of Legal Services at (512) 239-0348. Re- The commission evaluated this rulernaking action and performed quests shol;ld be made as far in adva;lce as possible, an analysis of whether the adopted rules are subject to Texas 

PROPOSED RULES Fcbrualy 23, 2007 32 TcxRcg 715 
SUBMITTAL OF COMMENTS 

Comments may be submitted to Lola Brown, MC 205, Office 

of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to 

(512) 239-4808. Electronic comments may be submitted at 

http://www5.tceq.stete.tx.us/rules/ecomments/. All comments 

should reference Rule Project Number 2006-053-101-PR. The 

comment period closes March 26, 2007. Copies of the proposed rules can be obtained from the commission's Web site at 

http://www.tceq.state.tx.us/nav/rules/propose~adopt.html. For 

further information, please contact Becky Southard, Air Permits 

Division, at (512) 239-1638 or Tara Capobianco, Air Permits 

Division, at (512) 239-1117. 

SCTBCHAPTER A. GENERAL RULES 

30 TAC $101.1, $101.23 

STATUTORY AUTHORITY 

The amended sections are proposed under Texas Water Code, 

55.103, concerning Rules, and $5.105, concerning General Policy, that authorize the commission to adopt rules necessary to 

carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), 5382.017, 

concerning Rules, that authorizes the commission to adopt rules 

consistent with the policy and purposes of the Texas Clean Air 

Act. The amended sections are also proposed under THSC, 

5382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and 

physical property; $382.011, concerning General Powers and 

Duties, that authorizes the commission to control the quality of 

the state's air; and 5382.012, concerning State Air Control Plan, 

that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The 

amended sections are also proposed under THSC, 5382.014, 

concerning Emission Inventory, that authorizes the commission 

to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop 

an emissions inventory; and 5382.051 and 5382.0518, concerning Permitting Authority of Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and 

operating air permits. The amended sections are also proposed 

under 42 United States Code, 57410(a)(2)(A), that requires SIPS 

to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction 

of emission rights. 

The amended sections implement THSC, 55382.002, 382.011, 

382.012, and 382.017; and Senate Bill 784, 79th Legislature, 

2005. 

Unless specifically defined in the Texas Clean Air Act (TCAA) or in 

the rules of the commission, the terms used by the commission have 

the meanings commonly ascribed to them in the field of air pollution 

control. In addition to the terms that are defined by the TCAA, the 

following terms, when used in relation to air quality rules in this !i& 

[etiepts], have the following meanings, unless the context clearly indicates otherwise. 

(I) Account--For those sources required to be permitted 

under Chapter 122 of this titIe (relating to Federal Operating Permits 

Program), all sources that are aggregated as a site. For all other sources, 

any conlbination of sources under common ownership or control and 

located on one or more contiguous properties, or properties contiguous except ror intervening roads. railroads, rights-of-way, waterways. 

or similar divisions. 

(2) - (1 1) (No change.) 

(12) Cold solvent cleaning--A batch process that uses liquid solvent to remove soils from the surfaces of [mecall parts or to dry 

the parts by spraying, brushing, flushing, andlor immersion while maintaining the solvent below its boiling point. Wipe clcaning (hand cleaning) is not included in this definition. 

(1 3) - (21) (No change.) 

(22) Conveyorized degreasing--A solvcnt cleaning process 

that uses an automated parts handling system, typically a conveyor, 

to automatically provide a continuous supply of [iaetai] parts to be 

cleaned or dried using either cold solvent or vaporized solvent. A conveyorized degrcasing process is fully enclosed except for thc conveyor 

inlet and exit portals. 

(23) - (41 ) (No change.) 

ff42) Hmxlew waste manttgemettt fae&y-AH contCgt1- eus kw& indudilqg appwkmanoesi and &her: irrt~oveme~tts 

en &he hd; td h peeewkg; 6% ot. $tfp&ng ef I~azafdous 

The teRtl tftdwles a pwbk4y w jwwtebj med liazufdous 

wes+e &d&y een&-hg ef preMtg; -e; ar dispesd epm&end hzadew wash? maitilgemeH ti& sudi as one OF 

~~~~~wtttsc

eq a~d /l&tMeFiifl- kekhg ~eme&kikts; k+&n welk sak 

$el% wttste een&imeM hntl -men* Fa- w a oomb 

&n efuw 

ff43j Haz;mletts - Rtttftttgefftefft ItRi(--A htldfiH; st* 

faee irnpemhnti wts+e pk b* ti*cine+&of; 

mM kiktr me 4 afttfff; & deme wste cw&ilt 

ment~whd~wtie;watyftlhef~ve~npputl%natlce; ef &ef kpwemettl e~ ktl used co mamg lmrdeus 

ww 

j42) [f44)] Hazardous wastes--Any solid waste identified 

or listed as a hazardous waste by the administrator ofthe United States 

Environmental Protection Agency under the federal Solid Waste Disposal Act, as amended by ~esource Conservation and Recovery Act, 

42 United States Code, @6901 el seq., as amended. 

!431 [w] Heatset (used in offset li:hngaphic priiitiiigj-- 

Any operation where heat is required to evaporate ink oil from the prlntlng ink. Hot air dryers are used to deliver the heat. 

(44) [@ti)] High-bake coatings--Coatings designed to cure 

at temperatures above 194 degrees Fahrenheit. 

(45) [@?)I High-volume low-pressure spray guns--Equipmen1 used to apply coatings by means of a spray gun that operates between 0.1 and 10.0 pounds per square inch gauge air pressure measured 

at the air cap. 

(46) [f48j] Incinerator--An enclosed co~nbustion apparatus 

and attachments that is used in the process of burning wastes for the 

primary purpose of reducing its volume and weight by removing the 

combustibles of the waste and is equipped with a flue Tor conducting 

products of combustion to the atmosphere. Any combustion device 

that bums 10% or more of solid waste on a total British thermal unit 

(Btu) heat input basis averaged over any one-hour period is considered 

to be an incinerator. A combustion device without instrumentation or 

methodology to determine hourly flow rates of solid waste and burning 

1 .O% or more of solid waste on a total Btu heat input basis averaged 

annually is also considered to be an incinerator. An open-trench type 

(with closed ends) combustion unit may be considered an incinerator 

32 TexReg 716 February 23, 2007 Texas Register 
when approved by the executive director. Devices bunling untreated 

wood scraps, waste wood, or sludge from the treatnlent of wastewater 

from the process mills as a primary fuel for heat recovery are not included under this definition. Combustion devices permitted under this 

title as combustion devices other than incinerators will not be considered incinerators for application of any rule within this title provided 

they are installed and operated in compliance with the condition of all 

applicable permits. 

(471 [C49j] Industrial boiler--A boiler located on the site 

of a facility engaged in a manufacturing process where substances are 

transformed into new products, including the component parts of products, by mechanical or chemical processes. 

(48) [o] Industrial furnace--Cement kilns; lime kilns; 

aggregate kilns; phosphate kilns; coke ovens; blast furnaces; smelting, 

melting, or refining furnaces, including pyro~netallurgical devices 

such as cupolas. reverberator furnaces, sintering machines, roasters, 

or foundry fi~maces; titanium dioxide chloride process oxidation 

reactors; methane reforming furnaces; pulping recovery furnaces; 

combustion devices used in the recovery of sulfur values from spent 

sulfuric acid; and other devices the commission may list. 

(49) [HI Industrial solid waste--Solid waste resulting 

from, or incidental to, any process of industry or manufacturing, or 

mining or agricultural operations. classified as follows. 

(A) Class 1 industrial solid waste or Class I waste is any 

industrial solid waste designated as Class 1 by the executive director 

as any industrial solid waste or mixture of industrial solid wastes that 

because of its concentration or physical or chemical characteristics is 

toxic, corrosive, flammable. a strong sensitizer or irritant. a generator 

of sudden pressure by decomposition, heat, or other means, and may 

pose a substantial present or potential danger to human health or the 

environment when improperly processed, stored, transported. or otherwise managed, including hazardous industrial waste, as defined in 

$335.1 and 5335.505 of this title (relating to Definitions and Class 1 

Waste Determination). 

(B) Class 2 industrial solid waste is any individual solid 

waste or co~nbination of industrial solid wastes that cannot be described 

as Class I or Class 3, as defined in $335.506 of this title (relating to 

Class 2 Waste Determination). 

(C) Class 3 industrial solid waste is ally inert and essentially insoluble industrial solid waste, including materials such as rock, 

brick. glass, dirt. and certain plastics and rubber, etc., that are not readily decomposable as defined in $335.507 of this title (relating to Class 

3 Waste Determination). 

(50) [o] Internal floating cover--A cover or floating roof 

in a fixed roof tank that rests upon or is floated upon the liquid being 

contained, and is equipped witha closure seal or seals to close the space 

between the cover edge and talk shell. 

(51) [(%)I Lcak--A volatile organic co~npound concentration greater than 10,000 parts per million by volume or the amount 

specified by applicable rule, whichever is lower; or the dripping or exuding ofpl.ocess fluid based on sight, smell, or sound. 

(52) [o] Liquid fuel--A liquid combustible mixture, not 

derived from hazardous waste, with a hcating value of at least 5,000 

British thermal units per pound. 

(53) [(%)I Liquid-mounted seal--A primary seal mounted 

in continuous contact with tlle liquid between the tank wall and the 

floating roof around the circumference of the tank. 

(54) [o] Maintenance area--A geographic region of the 

state previously designated nonattainment under thc Federal Clean Air 

Act Amendments of I990 and subseque~ltly redesignated to attain~nent 

subject to the requirement to develop a maintenance plan under 42 

United States Code, S7505a. The following are the maintenance areas within the state: 

(A) Victoria Ozone Maintenance Area 60 (Fede~.al 

Regisle/. (FR) 12453) - Victoria County; and 

(B) Collin County Lead Maintenance Area (64 FR 

55421) -'portion of Collin County. Eastside: Starting at the intersection of South Fifth Street and the fence line approximately 1,000 

feet south of the Exide property line going north to the intersection of 

South Fifth Street and Eubanks Street; Northside: Proceeding west 

on Eubanks to the Burlington Railroad tracks; Westside: Along the 

Burlington Railroad tracks to the fence line approximately 1,000 feet 

south of the Exide property line; Southside: Fence line approximately 

1,000 feet south of the Exide property line. 

(55) [m] Maintenance plan--A revision to the applicable state implementation plan. meeting the ~.equiren~ents of 42 United 

States Code, 57505a. 

(56) [o] Marine vessel--Any watercraft used, or capable of being ~~sed, as a means of transportation on water, and that is 

constructed or adapted to carry, or that carries, oil, gasoline. or other 

volatile organic liquid in bulk as a cargo or cargo residue. 

(57) [o] Mechanical shoeseal--A metal sheet that is held 

vertically against the storage tank wall by springs or weighted levers 

and is connected by braces to the floating roof. A flexible coated fabric 

(envelope) spans the annular space between the metal sheet and the 

floating roof. 

(58) [@@)I Medical waste--Waste materials identified by 

the Department of State Health Services as "special waste from health 

care-related facilities" and those waste materials commingled and discarded with special waste from health care-related facilities. 

(59) [o] Metropolitan Planning Organization--That organization designated as being responsible, together with the state, for 

conducting the continuing, cooperative, and comprehensive planning 

process under 23 United States Code (USC). $134 and 49 USC, $ 1607. 

(60) [m] Mobile emissions reduction credit--The credit 

obtained from all enforceable, pemlanent, quantifiable, and surplus (to 

other federal and state rules) emissions reduction generated by a mobile 

source as set forth in Chapter 114, Subchapter [Fi ef] F of this title 

([&&ng &I Etffmjtoft -Jdekide Fleet kqwemettes ad] Vehicle 

Retirement and Mobile Emission Reduction Credits), and that has been 

banked in accordance with Subcliapter H, Division I of this chapter. 

(61) [HI Motor vehicle--A self-propelled vehicle designed for transporting persons or properly on a street or highway. 

(62) [Cgq)] Motor vehicle fuel dispensing facility--Any site 

where gasoline is dispensed to motor vehicle fuel tanks from stationary 

storage tanks. 

(63) [@q] Municipal solid waste--Solid waste resulting 

from, or incidental to, municipal, community, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, 

street cleanings, dead animals, abandoned automobiles, and all other 

solid waste except industrial solid waste. 

(64) [&@I Munic~pal solid waste facility--All contiguous 

land, structures, other appurtenances, and improve~nents on the land 

uscd for processing, storing, or disposing of solid waste. A facility lnay 

be publicly or privately owlied and may consist of several processing, 

storage, or disposal operational units, e.g., one or more la~idfills. surface ilnpoundments, or combinations of them. 

PROPOSED RULES Februarj~ 23, 2007 32 TexReg 71 7 
((151 [HI Municipal solid waste landfill--A discrete area 

of land or an cxcavation that receives household waste and that is not 

a land application unit, surface impoundment, injection well, or waste 

pile, as thosc terms are defined under 40 Code ofFederal Regulations 

4257.2. A municipal solid waste landfill (MSWLF) unit also may rcceivc othcr types of Resource Conservation and Recovery Act Si~btitle 

D wastes, such as commercial solid waste, nonhazardous sludge, conditionally exempt small-quantity generator waste. and industrial solid 

waste. Such a landfill may be publicly or privately owned. An MSWLF 

unit may be a new MSWLF unit. an existing MSWLF unit, or a lateral 

expansion. 

(66) [(68j] National ambient air quality standard--Those 

standards established under 42 United Slates Code, $7409, including 

standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhalable partici~late matter, and sulfur dioxide. 

(0 [@9)] Net ground-levcl concentration--The concentration of an air contaminant as measured at or beyond thc propcrty 

bou~idary minus the representative concentration flowing onto a properly as measured at any point. Wlierc there is 110 expected influence of 

the air contaminant flowing onto a property from other sources, the net 

groi~nd level concentration may be determined by a measurement at or 

beyond the propcrty boundary. 

(662 101 New source--Any stationary source, the construction or modification of which was comn~enced after March 5, 

1972. 

(69) Nitrogen oxides (NO,)--The sum of the nitric oxide 

and nitrogen dioxide in the flue gas oremission point, collectively exEsed as nitrogen dioxide, 

(70) [(X-)] Nonattainment area--A defined region within 

the state that is designated by the United States Environmental Protection Agency (EPA) as failing to meet the national ambient air qual- 

~ty standard for a pollutant for which a standard exists. The EPA will 

designate the area as nonattainment under the provisions of 42 United 

States Code, (j7407(d). For the official list and boundaries of nonattainment areas, sec 40 Code of Federal Regulations Part 81 and vertincnt Feder-01 Registel. (FR) notices. The foilowing areas comprise the 

nonattainment areas within thc state for all national ambient air aualitv . . standards (NAAQS). EPA has indicated that it will revoke the one-hour 

ozone standard in full, including the associated designations and classification~~ onJune 15,2005, which is one year following the effective 

date of the designations for the eight-hour NAAQS of June 15,2004. 

(A) Carbon monoxide (CO). El Paso CO nonattainment 

area (56 FR 56694)--Classified as a Moderate CO nonattainmcnt area 

with a design value less than or equal to 12.7 parts per million. Portion 

of El Paso County. Portion of the city limits ofEl Paso: That portion of 

the City of El Paso bounded on the north by Highway 10 from Porfirio 

Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to 

the Southern Pacific Railroad lines, the Southern Pacific Railroad lines 

from Raynolds Street to Highway 62, Highway 62 from the Southern 

Pacific Railroad Lines to Highway 20, and Highway 20 from Highway 

62 to Polo Inn Road. Bounded on the east by Polo Inn Road rrom 

Highway 20. to the Texas-Mexico border. Bounded on the south by 

the Texas-Mexico border from Polo Inn Road to Porfirio Diaz Street. 

Bounded on the west by Porfirio Diaz Street from the Texas-Mexico 

border to Highway 10. 

(B) Inhalable particulate matter (PM,,). El Paso PM," 

nonattainment area (56 FR 56694)--Classified as a Moderate PM," 

nonattainment area. Portion of El Paso County that comprises the El 

Paso city limit boundaries as they existed on November 15, 1990. 

(C) Lead. No designated nonattainment areas. 

(D) Nitrogen dioxide. No designated nonattainment ar- eas. 

(E) Ozone (one-hour). 

(i) Houston-Galveston-Brazoria (HGB) one-hour 

ozone nonattainment area (56 FR 56694) - Classified as a Severe- 17 

ozone nonattainment area. Consists of Brazoria, Chambers, For( 

Bend, Galvcston, Harris, Liberty, Montgomery, and Wallcr Count~es. 

(ii) El Paso one-hour ozone nonatta~nment area (56 

FR 56694) - Classifiedas a Serious ozone nonattainment area. Cons~sts 

of El Paso County. 

(iii) Beaumont-Port Arthur (BPA) one-hour ozonc nonattainmcnl area (69 FR 16463) - Classified as a Serlous ozone 

nonattainment area. Consists of Hardin, Jefferson. and Orangc Countics. 

(iv) Dallas-Fort Worth one-hour ozone nonattainment area (63 FR 8128) - Classified as a Serioi~s ozone nonatlain~ncnr 

area. Consists of Collin, Dallas, Denton, and Tarrant Counties. 

(F) Ozone (cighl-hour). 

(i) HGB ciglit-hour ozone nonattain~nenl ;Ire;l (69 

FR 23936) - Classified as a Moderate ozone nonattainment areu. ('onsists or Brazoria, Chambers, Fort Bend, Galveston, Harris. Liberty. 

Montgomery, and Waller Counties. 

fii) BPA eight-hour ozone nonattainrnent arca (69 

FR 23936) - Classified as a Marginal ozone nonattainment arca. Consists oTHardin, Jefferson, and Orange Counties. 

(iii) Dallas-Fort Worth eight-hour ozone nonattainment area (69 FR 23936) - Classified as a Moderate ozone nooathinment area. Consists or Collin, Dallas. Denton. Ellis, Johnson, Kaufman. Parker, Rockwall, and Tarrant Counties. 

(iv) San Antonio eight-hour ozone nonattainment 

area (69 FR 23936) - Classified under the Federal Clcan Air Act, Title 

I, Part D, Subpart 1 (42 United States Code, 47502). uonattainment 

deferred to September 30,2005, or as extended by EPA. 

(G) Sulfur dioxide. No designated nonattain~ncnt arcas. 

[w] Non-reportable emissions event--Any emissions event that in any 24-hour period does not result in an unauthorized 

emission from any emissions point equal to or in excess of the reportable quantity as defined in this section. 

(72) ItZ3fl Opacity--The degree to which an emission of 

air contaminants obstructs thc transmission of light expressed as thc 

percentage of light obstructed as measured by an optical instrument or 

trained observer. 

(73) [t34j] Open-top vapor degreasing--A batch solvent 

clean~ng process that is open to the air and Illat uses boiling solvent 

to create solvent vapor used to clean or dry [&a41 parts through 

condensation of the hot solvent vapors on the colder metal parts. 

(741 [-I Outdoor burning--Any fire or smoke-producing 

process that is not conducted in a combustion unit. 

(751 [w] Particulate matter--Any material, cxccpt uncombined water, that exists as a solid or liquid in the atmosphere or 111 

a gas stream at standard conditions. 

(76) [w] Particulate matter emissions--Allfinely-divided 

solid or liquid material, other than uncombined water, emitted to the 

ambient air as measured by United States Environmental Protection 

Agency Reference Method 5, as specified at 40 Code of Federal Regulations (CFR) Part 60, Appendix A, modified to include particulate 

32 TexReg 718 February 23, 2007 Texas Register 
caught by an impinger train; by an equivalent or alternative method, 

as specified at 40 CFR Part 5 1 ; or by a test method specified in an approved state implementation plan. 

- (77) [m] Petroleum refinery--Any facility engaged in 

producing gasoline, kerosene, distillate fuel oils, residual fuel oils, ILIbricants, or other products through distillation of crude oil, or through 

the redistillation, cracking, extraction, reforming, or other processing 

of unfinished petroleum derivatives. 

(78) [w] PM,,,--Particulate matter with an aerodynamic 

diameter less than or equal to a nominal ten micrometers as measured 

by a reference method based on 40 Code of Federal Regulations (CFR) 

Part 50, Appendix J, and designated in accordance with 40 CFR Part 

53, or by an equivalent method designated with that Part 53. 

(79) [w] PM,,, emissions--Finely-divided solid or liquid 

material with an aerodynamic diameter less than or equal to a nominal 

ten micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or alternative method specified 

in 40 Code of Federal Regulatio~ls Part 51, or by a test method specified in an approved state imple~nentation plan. 

(80) [o] Polycl~lorinated biphenyl compound--A compound subject to 40 Code of Federal Regulations Part 76 I. 

L81) [o] Process or processes--Any action, operation, or 

treatment embracing chemical, commercial, industrial, or manufacturing factors such as combustion units, kilns, stills, dryers, roasters, and 

equipment used in connection therewith, and all other methods or forms 

of manufacturing or processing that may emit smoke, particulate matter, gaseous matter, or visible emissions. 

(82) [w] Process weight per hour--"Process weight" is 

the total weight of all materials introduced or recirculaled into any specific process that may cause any discharge of air contaminants into the 

atmosphere. Solid fuels charged into the process will be considered as 

part of the process weight. but liquid and gaseous fuels and combustion 

air will not. The "process weight per hour" will be derived by dividing the total process weight by the number of hours in one complete 

operation from the beginning of any given process to the completion 

thereof, excluding any time during that the equipment used to conduct 

the process is idle. For continuous operation, the "process weight per 

hour" will be derived by dividing the total process weight for a 24-hour 

period by 24. 

[w] Property--All land under common control or 

ownership coupled with all improvements on such land, and all fixed 

or movable objects on such land, or any vessel on the waters of this 

slate. 

lS4) [w] Reasonable further progress--Annual incremental reductions in emissions of the applicable air contaminant that 

are sufficient to provide for attainment of the applicable national 

ambient air quality standard in the designated nonattainment areas by 

the date required in the state implementation plan. 

(85) [o] Regulated entity--All regulated units, facilities, 

equipment, structures, or sources at one street address or location that 

are owned or operated by the same person. The term includes any property under common ownership or control identified in a pennit or used 

in conjunction with the regulated activity a1 the same street address or 

location. Owners or operators of pipelines. gathering lines, and flowlines under common ownership or control in a particular county may 

be treated as a single regulated entity for purposes of assessment and 

~.egulation of emissions events. 

(86) [HI Remote reservoir cold solvent cleaning--Any 

cold solvent cleaning operation in which liquid solvent is p~unped 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. 

(87) [o] Reportable emissions event--Any emissions 

event that in any 24-hour period, results in an unauthorized emission 

from any emissions point equal to or in excess of the reportable 

quantity as defined in this section. 

(88) [w] Reportable quantity (RQ)--Is as follows: 

(A) for individual air contaminant compounds and 

specifically listed mixtures by name or Chemical Abstracts Service 

(CAS) number, either: 

(i) the lowest of the quantities: 

(I) listed in 40 Code of Federal Regulations 

(CFR) Part 302, Table 302.4, the column "final RQ"; 

(II) listed in 40 CFR Part 355, Appendix A, the 

column "Reportable Quantity"; or 

(I10 listed as follows: 

(-a-) acetaldehyde - 1,000 pounds, except in 

the Houston-Galveston-Brazoria (HGB) and Beaumont-Port Arthur 

(BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) 

and (iii) [o@) itFtd of this section, where the RQ must be 

100 pounds; 

(-b-) butanes (any isomer) - 5,000 pounds; 

(-c-) butenes (any isomer. except 1,3-butadiene) - 5,000 pounds, except in the HGB and BPA ozone nonattainment 

areas as defined in paragraph (70)(E)(i) and (iii) [M aRd 01 

of this section, where the RQ must be 100 pounds; 

(-d-) carbon monoxide - 5,000 pounds; 

(-e-) l -chloro- I. 1 -difluoroethane (HCFC142b) - 5,000 POUII~S; 

(-f-) chlorodifluorometha~~e (HCFC-22) - 

5,000 pounds; 

(-g-) I -chloro-l -fluoroethane (HCFC- I5 1 a) - 

5.000 pounds; 

(-]I-) chlorofluorometl~ane (HCFC-3 1 ) - 

5,000 pounds; 

(-i-) cl~loropentafluoroethane (CFC- I 15) - 5,000 pounds; 

(-j-) 2-chloro- 1, I, 1.3-tetrafluoroethane 

(HCFC-I 24) - 5,000 pounds; 

(-k-) 1 -cl~loro- 1,1,2,2 tetrafluoroethane 

(HCFC-124a) - 5,000 pounds; 

(-I-) l ,l, 1,2,3,4.4,5,5,5-decafluoropentane 

(HFC 43- I Omee) - 5.000 pounds; 

(-~n-) decanes (any isomer) - 5,000 pounds; 

(-n-) 1, I -dichloro- l -fluoroethane (HCFC141 b) - 5,000 pounds; 

(-o-) 3,3-dichloro- 1,1.2,2-pentafluoropropane (HCFC-225ca) - 5,000 pounds; 

(-p-) 1,3-dichloro-l , 1,2.2,3-pentafluoropropane (HCFC-225cb) - 5,000 pounds; 

(-q-) 1.2-dichloro-l , I ,3,2-tetrafluoroethane 

(CFR-I 14) - 5,000 pounds; 

(-r-) [TI- dicl~lorotetrafluoroelhane 

(CFC- 1 14a) - 5,000 pounds; 

(-s-) 1.2-dichloro-I ,I ,2-trifluoroethane 

(HCFC-l23a) - 5,000 pounds; 

(-t-) I, l -difluoroethane (HFC-152a) - 5,000 

pounds; 

(-u-) difluoromethane (HFC-32) - 5.000 

pounds: 

PROPOSED RULES Fehrnarj) 23,2007 32 TexReg 719 
(-V-) ctlianol - 5,000 pounds; 

(-w-) ethylene - 5.000 pounds, except in the 

FlGB and BPA ozonc nonattainmcnt arcas as defined in paragraph 

j70)(E)(i) and (iii) [(%j(l?iCtf end W] oS this section, where the RQ 

must be 100 pounds; 

(-X-) ethylfluoride (HFC- 161) - 5,000 

pounds; 

(-y - I, 1.1.2.3.3.3-hcptall~~oropropane 

(HFC-227ea); 

(-z-) I, I, I ,3,3,3-hcxafluoropropm (HFC:- 

236h) - 5,000 pounds; 

(-aa-) 1.1,1.2.3,3-hexafluoropropanc 

(HFC'-33Oea) - 5,000 pounds; 

(-bb-) hcxanes (any isomer) - 5.000 po~lnds; 

(-cc-) isopropyl alcollol - 5.000 pountls; 

(-dd-) mineral spirits - 5.000 pounds; 

(-ec-) octanes (any isomcr) - 5,000 pounds; 

(-ff-) oxidcs or nitrogen - 200 pounds in 

ozonc nonatlainmcnl, ozonc maintcnance, carly aclion compact arcas. 

Nueces C:ounty, and San Patricio C:ounty, and 5,000 pountls in all 

other arcas of the statc, which should bc uscd instcad of tlic I<Qs for 

nitrogcn oxide and nitrogen dioxide providcd in 40 CFK I'art 302, 

Table 302.4. tlie column "final RQ"; 

(-gg-) pentaclilorofluoroethnne (CFR- I I I) - 

5,000 pounds; 

(-1111-) 1.1,1.3,3-pcntafluorobut~~~~c (HFC365mfc) - 5.000 pounds; 

(-ii-) pcntafluoroethanc (HFC-125) - 5.000 

pounds; 

(-JJ-) I, 1.2.2.3-pentafluoropropane (HFC245ca) - 5,000 pounds; 

(-kk-) I, 1 -2.3.3-pcntafluoropropane (HFC245ca) - 5.000 pounds; 

(-]I-) 1,1.1.2,3-pentafluoropropane (HFC245cb) - 5.000 pounds; 

(-mm-) 1, I, I ,3,3-pentafluoropropane 

(HFC-245fa) - 5.000 pounds; 

(-nn-) pentanes (any isomer) - 5,000 pounds; 

(-oo-) propane - 5,000 pounds; 

(-pp-) propylene - 5,000 pounds, except in 

the HGB and BPA ozone nonattainment areas as defincd in paragraph 

[70)(E)(i) and (iii) [@-I+E+ and Ctttf] of this section, where tlic RQ 

must be I 00 pounds; 

(-qq-) 1,1,2,2-teraclilorodifluoroetliane (C:FR 

-1 12) - 5,000 pounds; 

(-rr-) I, I ,I ,2-tctrachlorodifluoroctha~~c 

(CFC- I 12a) -5,000 pounds; 

(-ss-) 1,1,2,2-tetrafluoroetli:~nc (HFC- 134) - 5,000 pounds; 

(-tt-) I ,I ,I ,2-tctmfluoroctliane (FIFC- 134a) - 

5,000 pounds; 

(-uu-) I, I ,2-trichloro- l,2,2-trifluoroetliane 

(CFR- 1 13) - 5,000 pounds; 

(-vv-) I ,l ,I -trichioro- 2,2,2- trilfloroethane 

(CFC- 1 138) - 5.000 pounds; 

(-ww-) I, 1 .I -trifluoro-2.2-dichloroethane 

(HCFC- 123) - 5,000 pounds; 

(-xx-) 1,1, I -trifluoroethane (HFC-143a) - 

5,000 pounds; 

(-yy-) trifluoromethane (HFC-23) - 5,000 

pounds; or 

i-zz-) toluene - 1,000 pounds, except in the 

HGB and BPA ozone nonattainment areas as defined in paragraph 

(70)(E)(i) and (iii) [o@j@ ad 01 or [his section, whcre the RQ 

must be 100 pounds; 

(ii) if not listed in clausc (i) of this subparagraph, 

100 pounds; 

(B) for mixtures of air contaminant compounds: 

(i) where tlie relative amount of individual air contaminant compounds is known through common process knowledge or 

prior engineering analysis or testing, any amount or an individual air 

contaminant compound that equals or exceeds the amount specified in 

subparagrapli (A) of this paragraph; 

(ii) where the relative amount or individual air contaminant compounds in subparagraph (A)(i) of this paragraph is not 

known, any amount of tlic inixture that cquals or cxcecds tlic amount 

for any single air contaminant compound that is present in thc ~iiixturc 

and listed in subparagraph (A)(i) of this paragraph; 

(iii) where cach of the individual air conta~ninant 

co~npounds listed in subparagraph (A)(i) of this paragraph arc known 

Lo bc less than 0.02?4, by weight ofthe mixture, and each oftlie othcr individual air contaminant compounds covercd by subparagrapli (A)(ii) 

of this paragraph arc known to be less than 2.0% by weight oTtlic mixture, any total amount of the mixture of air contaminant compounds 

grcater than or cqual lo 5,000 pounds; or 

(i\~) whcre natural gas excluding carbon d~ox~dc, 

water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygcn 

or air e~nissions from crude oil are known to be in an amount grcatcr 

than or equal to 5.000 pounds or the associated hydrogen sulfidc and 

mcrcaptans in a total amount greater than 100 pounds, whicl~cvcr 

occurs first; 

(C) for opacity from boilers and co~nbustion turbines as 

defined in this section fueled by natural gas, coal, lign~te, wood, fuel 

oil containing hazardous air pollutants at a concentration of lcss than 

0.02% by weight, opacity that is equal to or exceeds 15 addilional percentage points above the applicable lim~t, averaged over a six-m~nute 

period. Opacity is the only RQ appl~cable to boilcrs and cornbustion 

turbines described in this paragraph; or 

(D) for facilities where air contaminant co~npounds arc 

measured directly by a continuous emission monitoring system providing updated readings at a minimum 15-minute interval an amount, 

approved by ihe cxecurive director bascd on any reicvant conditions 

and a scrcening model, that would be repofled prior to ground levcl 

concentrations reaching at any distance beyond the closest regulated 

entity propcrty line: 

(i) less than onc-half of any applicahlc ambicnt air 

standards; and 

(ii) less than two t~mes the co~lcentration of applicable air emission limitations. 

(89) [@@I Rubbish--Nonputrescible solid waste, consisting of both combustible and noncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, funiiture: rubber, plastics, yard trimmings, leaves, and similar materials. 

Noncombustible rubbish includes glass, crockery, tin cans, alun~inum 

cans, metal furniture, and Like materials that will not bum at ordinary 

incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees 

Fahrenheit). 

(90) [w] Scheduled maintenance, startup, or shutdown 

activity--For activities with unauthorized emissions that are expected 

to exceed a reportable quantity (RQ), a scheduled maintenance, startup, 

or shutdown activity is an activity that the owner or operator of the reg32 TexReg 720 February 23, 200 7 Texas Register 
ulated entity whether performing or otherwise affected by the activity. 

provides prior notice and a final report as required by 5;101.21 I oftliis 

title (relating to Scheduled Maintenance, Slartup, and Sliutdown Reporting and Recordkeeping Requirements); the notice or final report 

includes the information required in $101.21 1 of this title; and the actual unauthorized emissions from tlie activity do not exceed the emissions estimates submitted in the initial notification by more tlian an 

RQ. For activities with unauthorized emissions that are not expected 

to, and do not, exceed an RQ, a scheduled maintenance, startup, or 

shutdown activity is one that is recorded as required by 5101.21 1 of 

this title. Expected excess opacity events as described in 5 101.201(e) 

of this title (relating to Emissions Event Reporting and Recordkeeping 

Requirements) resulting from scheduled maintenance, startup, or shutdown activities are those that provide prior notice (if required), and are 

recorded and reported as required by 5101.21 1 of this title. 

(91) [C9;?j] Sludge--Any solid or semi-solid, or liquid 

waste generated from a municipal, commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive of the 

treated effluent from a wastewater treatment plant; or air pollution 

control equipment. 

(92) [@Jj] Smoke--Small gas-born particles resulting from 

incomplete conlbustion consisting predominately of carbon and other 

co~nbustible material and present in sufficient quantity to be visible. 

if9431 Solid waste--Garbage, rubbish, refuse, sludge 

from a waste water treatment plant, water supply treatment plant, or 

air pollution control equipment, and other discarded material, including solid, liquid, semisolid, or containerized gaseous material resulting 

from industrial, municipal, commercial, mining, and agricultural operations and from co~nmunity and institutional activities. The tenn does 

not include: 

(97) [@@I Special waste from health care-related facilities--A solid waste that if improperly treated or handled, may serve 

to transmit infectious disease(s) and that is comprised of the following: 

animal waste, bulk blood and blood products, microbiological waste, 

patliological waste, and sharps. 

(98) [o] Standard conditions--A condition at a temperature of 68 degrees Fahrenheit (20 degrees Centigrade) and a pressure 

of 14.7 pounds per square inch absolute (I 01.3 kiloPascals). (P&+kW 

ee~fmm;ttl~~be~te$+ea

~We31€e5S~ttfif~~iseperak~at~~S

e3s k] 

(99) [o] Standard metropolitan statistical area--An area 

consisting of a county or one or more contiguous counties that is officially so designated by the United States Bureau of the Budget. 

(1001 [o] Submerged fill pipe--A fill pipe that extends 

from the top of a tank to have a maximum clearance of six inches (15.2 

centimeters) from the bottom or, wlien applied to a tank tliat is loaded 

from the side. that lias a discharge opening entirely submerged when 

the pipe used to withdraw liquid from the tank can no longer withdraw 

liquid in normal operation. 

[i+Qj] Sulfur compounds--All inorganic or organic 

cl~emicals having an atom or atoms of sulfur in their chemical structure. 

(1021 [w] Sulfuric acid mist/sulfuric acid--Emissions 

of sulfuric acid mist and sulfuric acid are considered to be the same 

air contaminant calculated as H,SO, and must include sulfuric acid Iiquid mist, sulfur trioxide. and sulfuric acid vapor as measured by Test 

Method 8 in 40 Code of Federal Regulations Part 60. Appendix A. 

(1031 [o] Sweet crude oil and gas--Those crude petroleum l~ydrocarbons that are not "sour" as defined in this section. 

(A) solid or dissolved material in domestic sewage, or (1041 [MI Total suspended particulate--Particulate mat- solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by pern~it issued under the Texas Water ter as measured by the method described in 40 Code of Federal Regulations Part 50, Appendix B. Code. Cha~ter 26: . . (1051 [i3@@] Transfer efficiency--The amount of coating (B) soil, dirt, rock, sand, and other natural or man-made solids deposited onto the surface or a part of product divided by tlie total inert solid materials used to fill land, if the object of the fill is to make amount of coating solids delivered to coating application system, the land suitable for tlie construction of surface improvements; or 

(C) waste materials tliat result from activities associated with tlie exploration, develop~nent, or production of oil or gas, 

or geothermal resources, and other substance or material regulated by 

the Railroad Commission of Texas under Natural Resources Code, 

$91.10 1, unless the waste, substance, or material results from activities 

associated with gasoline plants, natural gas liquids processing plants, 

pressure maintenance plants, or repressurizing plants and is hazardous 

waste as defined by the administrator of tlie United States Environmental Protection Agency under the federal Solid Waste Disposal Act. 

as amended by Resource Conservation and Recovery Act. as amended 

(42 United States Code, $56901 el seq.). 

(94) [t95j] Sour crude--A crude oil that will emit a sour gas 

wlien in equilibriutn at atmosplieric pressure. 

(1061 [MI True vapor pressure--The absolute aggregate 

partial vapor pressure, measured in pounds per square inch absolute, of 

all volatile organic compounds at the temperature of storage, handling, 

or processing. 

(1071 [08j] Unauthorized emissions--Emissions of any 

air contaminant except carbon dioxide, water, nitrogen, methane, 

ethane, noble gases, hydrogen, and oxygen that exceed any air emission limitation in a permit, rule, or order of the commnission or as 

authorized by Texas Clean Air Act, §382.0518(g). 

[w] Unplanned maintenance, startup, or s11~1tdown activity--For activities with unauthorized emissions tliat are 

expected to exceed a reportable quantity or with excess opacity, an 

unplanned maintenance, startup. or sliutdown activity is: 

(95) [o] Sour gas--Any natural gas containing more illan (A) a starlup or shutdown that was not part of nonnal 

1.5 grains ofhydrogen sulfide per 100 cubic feet, or more tlian 30 grains or routine facility operations, is unpredictable as to timing, and is not 

of total sulfur per 100 cubic feet. the type of event normally autliorized by permit; or 

(96) [(-97j] Source--A point of origin of air contaminants, (B) a maintenance activity that arises from sudden and 

whether privately or p~~blicly owned or operated. Upon request of a unforeseeable events beyond the control of the operator tliat requires 

source owner, tlie executive director shall determine whether multiple the immediate corrective action to minimize 01. avoid an upset or malprocesses emitting air contaminants from a single point of emission function. 

will be treated as a single source or as multiplc sources. QO9J [Qtoj] Upset event--& [MI unplanned and unavoidable breakdown or excursion of a process or operation that 

PROPOSED RULES February 23, 2007 32 TexReg 721 
results in unauthorized emissions. A maintenance, startup, or shuidown activity that was reported under $101.211 of this title (relating 

to Scheduled Maintenance, Startup, and Shutdown Reporting and 

Recordkeeping Requirements), but had emissions that exceeded 

the reported amount by more than a reportable quantity due to an 

unplanned and unavoidable breakdown or excursion of a process or 

operation is an upset evcnl. 

(110) [w] Utility boiler--A boiler used to produce electric power, steam. or heated or coolcd air, or other gases or fluids for 

sale. 

(111) [el-1-91 Vapor co~nbus~or--A partially enclosed combustion devicc used to destroy volatile organic compounds by smokeless combust~on without extracting energy in the form of process heat 

or steam. The combustion flame may be partially visible, but a1 no 

time does the devicc opcrate with an uncontrolled flamc. Auxiliary 

fuel and/or a flamc air control di~mping system that can operatc at all 

times to control the aidfuel mixture to the combustor's flame zone, may 

be required to ensure smokeless comb us ti or^ during operation. 

(1121 [(4-1331 Vapor-mounted seal-- A prlmary scal 

inounted so there 1s an annular space underneath the seal Thc annular 

vapo~ space IS bounded by thc bottom of the prlmary seal, the tank 

wall, the l~qu~d surface, and the float~ng roof or cover. 

(113) [@--I+] Vent--Any duct, stack, chimney, fluc, conduit, or other devicc used to conduct air contaminants into the atmosphere. 

(114) [eI-ISj] Visible emissions--Particulate or gaseous 

matter that can be detected by the human eye. The radiant energy 

from an open flame is considered [a be] a visible emission under 

this definition. 

(115) [@-I@] Volatilc organic compound--As defined in 40 

Code of Federal Regulations $5 1. I OO(s), except $5 1.100(~)(2) - (4), as 

amended on November 29,2004 (69 FR 69290). 

(110 [CI-1-7j] Volatile organic compound (VOC) water separator--Any tank, box, sump, or other container in which any VOC, 

floating on or contained in water entering such tank, box. sump, or 

other container, is physically separated and removed from such water 

prior to outfall, drainage, or recovery of such water. 

f101.23. Alte~~ate Entissior7 Reduction ("Bubble1') Policv. 

An owner or operator of any facility that is affected by any control 

requirement ofC\lapters I1 1, 112, 113. 1 15. and 11 7 of this title (re& 

ing to Control of Air Pollution from Visible Emissions and ParticuM 

Matter; Control of Air Pollution from Sulfur Compounds; Standards 

of Performance for Hazardous Air Pollutants and for Designated Facilities and Pollutants~Control of Air Pollution from Volatile Organic 

Compounds; and Control of Air Pollution from Nitrogen Compounds) 

[-%4€l3 $Cegd&eiw & H; HI; Y VFI, md Hi] adopted on or after March 

30, 1979, may, prior to complia~lce with such requirement, request the 

executive director to approve control of emissions from an alternate 

facility or from alternate facilities located on the affected property and 

owned or operated by or under the control of the owner or operator 

of the affected facility in lieu of compliance with the requirement as 

prescribed in the regulation, provided the alternate proposed controls 

are not required by any Texas Commission on Environmental Quality (TCEQ) [TA€B] rule, regulation, permit condition, commission 

[bewd] order, or court order. The executive director shall approve control of emissions from alternate facilities if the applicant demonstrates 

that the alternate controls will yield, by the date specified in the rule, 

emission reductions that are substantially equivalent to the emissions 

reductions which would otherwise be required in terms of their quantity, character, air quality impacts including health and welfare effects, 

and aren affected. Facilities which receive the executive director's approval of an alternate emissions control plan will be deemed to havc 

complied with the otherwise applicable TCEQ [-TM%] rule. However, 

the executive director may, after notice and opportunity for public hearing, revoke the credit or authority for alternate controls if the executive 

director [ke] determines that any of the prerequisites for approval of 

the alternate controls are no longer met or if further emission rcduclions are needed to meet the intent of the Texas Clean Air Act. 

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 February 9, 

2007. 

TRD-200700372 

Robert Martinez 

Director. Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25. 2007 

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

30 TAC $101.22 

(Editor's note: The text of the ,fillowing section prc~postd,/i~~ ~-e/~eol 

will not bepublished. The section mly be exanlined in the oJ7ce.v ?/the 

Tenas Conwtission on Envi~anmental Qlmlip or- it1 the Texl~r Register 

ofice, Room 245, James Ea1.1 Rudder Building. 1019 Brmo.\ Streel, 

Austin.) 

STATUTORY AUTHORITY 

The repealed section is proposed under Texas Water Code, 

$5.1 03, concerning Rules, and 55.105, concerning General 

Policy, that authorize the commission to adopt rules necessary 

to carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), $382.017, 

concerning Rules, that authorizes the commission to adopt 

rules consistent with the policy and purposes of the Texas Clean 

Air Act. The repealed section is also proposed under THSC, 

$382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air i?sGuices, 

consistent with the protection of public health, general welfare. 

and physical property; $302.011, concerning General Powers 

and Duties, that authorizes the commission to control the quality 

of the state's air; and 5382.012, concerning State Air Control 

Plan, that authorizes the commission to prepare and develop a 

general, comprehensive plan for the control of the state's air. 

The repealed section implements THSC, 55382.002, 382.011, 

382.012, and 382.017; and Senate Bill 784, 79th Legislature, 

2005. 

$101.22. Eflective Date. 

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 February 9, 

32 TexReg 722 February 23, 2007 Texas Register 
Robert Marlinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25, 2007 

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

SUBCHAPTER H. EMISSIONS BANKING 

AND TRADING 

DIVISION 1. EMISSION CREDIT BANKING 

AND TRADING 

30 TAC ~101.302,~101.306 

STATUTORY AUTHORITY 

The amended sections are proposed under Texas Water Code, 

s5.103, concerning Rules, and $5.105, concerning General Policy, that authorize the commission to adopt rules necessary to 

carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), s382.017, 

concerning Rules, that authorizes the commission to adopt rules 

consistent with the policy and purposes of the Texas Clean Air 

Act. The amended sections are also proposed under THSC, 

s382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and 

physical property; s382.011, concerning General Powers and 

Duties, that authorizes the commission to control the quality of 

the state's air; and $382.012, concerning State Air Control Plan, 

that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The 

amended sections are also proposed under THSC, s382.014, 

concerning Emission Inventory, that authorizes the commission 

to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop 

an emissions inventory; and s382.051 and s382.0518, concerning Permitting Authority of Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and 

operating air permits. The amended sections are also proposed 

under 42 USC, §7410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, ss382.002, 382.011, 

382.012, and 382.017; and Senate Bill 784, 79th Legislature, 

2005. 

$1 01.302. Ge~ieral Provisions 

(a) - (c) (No change.) 

(d) Protocol. 

(I) All generators or users of emission credits shall use a 

protocol that has been submitted by the executive director to the EPA 

for approval, if existing for the applicable facility or mobile source, 

to measure and calculate baseline emissions. If the generator or user 

wishes to deviate from a protocol submitted by the executive director, 

EPA approval is required before the protocol can be used. Protocols 

must be used as follows. 

(A) Facilities subiect to the emission s~ecifications 

under 4-110. 117.210. 117:310. 117.410. 117.1010, 117.1110, 

117.1210. 117.1310, 117.2010. 117.21101 or 117.3310 [wW%H3& 

=06 ef W] of this title (relating to Emission Specifications 

for Attainment Demonstration [-eeffte-w]; Emission Specifications for Eight-Hour Attainment Demonstration; and Emission 

Specifications) shall quantify reductions in nitrogen oxide emissions 

using the testing and monitoring methodologies identified to show 

compliance with the emission specification. 

(B) - (C) (No change.) 

(2) - (3) (No change.) 

(e) - (1) (No change.) 

$101.306. Eniissiori Credii Use 

(a) (No change.) 

(b) Credit use calculation. 

(I - 2 (No change.) 

(3) For emission credits used to co~nply with $51 17.123, 

117.223, 1'1j.320, 117.323, 117.423, 117.1020, i1?.112o, 117.1220, 

-- or 117.3123 TWtU88; 447.2K!, ew +I72231 of this title (relating to [w &'&xi] Source Capastern Cgf and Dallas-Fort worth 

Eieht-Hour Ozone Attainment Demonstration Control Requirements), 

the number of emission credits needed for increasing the 30-day rolling 

average emission cap or maximum daily cap should be determined according to the rollowing equation plus an additional 10% to be retired 

as an environmental contribution. 

Figure: 30 TAC $1 01.306(b)(3) 

(4) (No change.) 

(c) (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 February 9, 

2007. 

TRD-200700374 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25, 2007 

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

DIVISION3. MASSEMISSIONSCAPAND 

TRADE PROGRAM 

30 TAC §§101.350, 101.351, 101.353, 101.354, 101.360 

STATUTORY AUTHORITY 

The amended sections are proposed under Texas Water Code, 

55.103, concerning Rules, and s5.105, concerning General Policy, that authorize the commission to adopt rules necessary to 

carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), s382.017, 

concerning Rules, that authorizes the commission to adopt rules 

consistent with the policy and purposes of the Texas Clean Air 

Act. The amended sections are also proposed under THSC, 

s382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and 

physical property; §382.011, concerning General Powers and 

Duties, that authorizes the commission to control the quality of 

PROPOSED RULES February 23,2007 32 TexReg 723 
the state's air; and 5382.01 2, concerning State Air Control Plan, 

that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The 

amended sections are also proposed under THSC, 5382.014, 

concerning Emission Inventory, that authorizes the commission 

to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop 

an emissions inventory; 5382.016, concerning Monitoring Requirements, that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions; and 5382.051 and 5382.0518, concerning 

Permitting Authority of Commission and Preconstruction Permit, 

that authorize the commission to issue preconstruction and operating air permits. The amended sections are also proposed 

under 42 USC, 57410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, 55382.002, 382.011, 

382.012, and 382.017. 

The Following words and terms, when used in this division, shall have 

the Following meanings, unless tlic context clearly indicates otherwise. 

(1) - (9) (No changc.) 

(I 0) I-1oust011-Galveston-Brazoria (HGB) [Hottf 

toniGttkslon (HGAj] ozone nonattainment area--As dcfined in 

$101.1 of this title (relating to Dcfi~litions). 

(1 1 ) - (1 4j (No change.) 

(a) This division applies to all facilities which emit nitrogen 

oxides (NO,) in the&gston- Galveston-Brazoria 1-1 ozonc nonattainmenl area, as defined in $101.1 of this title (relating 

to Definitions) which arc subject to the emission specifications under 

$41 I7.310, I17.I210. or !-!11,2&0 [*WT1-06;W6;efU1475] of 

this title (relating to Emission Specifications for Attainment Demonstration cDenions~acions] and Emission Specifications) and which arc: 

(1) located at a site which meets the definition of major 

sc!firce, xs dt:fined it! 3 i 7. i o.Yi!lis !ii!r (ro!ali!lg to DcG!!itio!!s); [;I C? 

(2) (No changc.) 

(b) (No changc.) 

$101.353. Allocafion ~f'Al1owancc.r.. 

(a) Allowances will bc deposited into co~npliance accounts according to the following equation cxcept as provided in subsection (b) 

or (11) of this section. 

Figure: 30 TAC 8 10 1.353(a) 

(b) - (11) (No change.) 

(a) Allowa~lces will be deducted in tenths of a ton from a s~te's 

compliance account for a control period based upon the monitoring 

and testingprotocols established in jis I 17.340, 117.1240, and 11 7.2035 

[~W+ C- and 447491 of this title (relating to Continuous 

Demonstration of Compliance; and Monitoring and Testing Require- 

-[--&- . . *+he- 

-ttff$-- 01 ' ,dk 

wg %-I). 

(b) - (d) (No change.) 

(e) Allowances shall be deducted From a site's compliance 

account in an amount equal to the nitrogen oxides (NOx) emissions 

increases from facilities not subject to an emission specification under 

jl17.3lO or $117.20lO [+&I% ef ft-1-I34%] OF this title (relating 

to Emission Specifications for Attainment Demonstration [Demons+~a&w]; and Emission Specifications) which result from changes 

made after December 31. 20001 to facilities subject to this division 

and Q: 1 17.3 10(e)(3) [+l44-336fltjC3j] or 4 I 17.20 I O(fJ [+I-I-747-S@] of 

this title. Documentation detailing these increases in NO* c~nissions 

shall be included with thc submittal of thc ECT-I Form. Annual 

Complia~lce Report. 

(f) - (g) (No change.) 

,$I 01. .360 Lcvrl of'Acfivig. Cer.rij?ccrfion. 

(a) Thc owner or operator ol':~ny facil~ty sut!ject to this tlivision shall certify, no later than June 30, 2001. its historical lcvel ofactivity by submitting to the executive director a completed ECT-3 Form, 

Level of Activity Certification, along with any supporting inForn~;itio~l 

such as usage records, testing or monitoringdata, cmission Pactors, and 

production records as Follows: 

(1) - (2) (No change.) 

(3) for new and modified facilities not in operation prior 

to January 1, 1997, that are sub-ject to emission specifications undcr 

@117.310, 117.1210, or 117.2010 14- 4-&&2& er 14W41 

of this title (relating to Emission Specifications for Attainmen[ Dzgon: 

stration [D-1; and Emission Specifications) that were firs1 

adopted after April 1, 2001, and either have submitted under Chaptcr 

11 6 of this title an application which the executive director has dctcrmined to be administratively complete within 90 days OF the ercctivc 

date of this emission specification, or have qualified for a pcrmit by 

rule under Chapter 106 of this title [(&&kg te P& by Rdej] and 

have commenced construction within 90 days of the effective date of 

the emission specification, the level of activity authorized by the executive director. 

(b) - (c) (No change.) 

This agency hereby certifies that the proposal has been reviewed 

by legal counsel and found to be within the agency's legal author2007. 

TRD-200700375 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25. 2007 

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

DIVISION 4. DISCRETE EMISSION CREDIT 

BANKING AND TRADING 

30 TAC $101.372, $101.376 

STATUTORY AUTHORIN 

The amended sections are proposed under Texas Water Code, 

55.103, concerning Rules, and 55.105, concerning General Policy, that authorize the commission to adopt rules necessary to 

carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), 5382.017, 

32 TexReg 724 Fcbrua~y 23, 2007 Texas Register 
concerning Rules, that authorizes the commission to adopt rules 

consistent with the policy and purposes of the Texas Clean Air 

Act. The amended sections are also proposed under THSC, 

5382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and 

physical property; 5382.011, concerning General Powers and 

Duties, that authorizes the commission to control the quality of 

the state's air; and 5382.012, concerning State Air Control Plan, 

that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The 

amended sections are also proposed under THSC, 5382.014, 

concerning Emission Inventory, that authorizes the commission 

to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop 

an emissions inventory; and 5382.051 and 5382.0518, concerning Permitting Authority of Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and 

operating air permits. The amended sections are also proposed 

under 42 USC, 57410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, 55382.002, 382.011, 

382.012, and 382.017; and Senate Bill 784, 79th Legislature, 

2005. 

j101.372. GeneralProvisions. 

(a) - (c) (No change.) 

(d) Protocol. 

(1) All generators or users of discrete emission credits must 

use a protocol which has been submitted by the executive director to 

the EPA for approval, if existing for the applicable facility or mobile 

source, to measure and calculale baseline emissions. If the generator 

or user wishes to deviate from a protocol submitled by the executive 

director, EPA approval is required before the protocol can be used. Protocols shall be used as follows. 

(A) Facilities subiect 10 the emission specifications 

under j$117.110, 117.210, 117:310, 117.410, 117.1010, 117.1110, 

117.1210, 117.1310, 117.2010, 117.2110, or 117.3310 [#KNOB; 

WL20& CE W1 of this tille (relating - to Emission S~ecifications 

for Atlain~nent Demonstration [-I; Emission Speci- 

- fications for Eight-Hour Attainnlenl Demonstration; and Emission 

Specifications) shall quantify reductions in NOx using the testing and 

monitoring methodologies identified to show compliance with the 

emission specification. 

(B) Facilities subject to the requirements under 

$$115.112, 115.121, 115.122, 115.162, 115.211~ 115.212, 115.352, 

115.421, 115.541, or 1 15.542 of this title (relating to [Etftiffietl Spe 

ifice ad] Control Requirements and Emission Specifications) 

shall quantify VOC reductions using the testing and monitoring 

methodologies identified to show compliance with the emission 

specifications 01. the requirements. 

(C) (No change.) 

(2) - (3) (No changc.) 

(e) - (m) (No change.) 

s7101.376. Di.rcra/e En~issio~~ C~.edi/ Use. 

(a) - (c) (No change.) 

(d) Notice of intenl to use. 

(1) (No change.) 

(2) DERC use calculation. 

IA) ~, To calculate the amount of discrete emission credits necessary to comply with S;$l17.123. 117.223. 117.320, 117.323, 

117.423. 117.1020. 117.1120. 117.1220, 117.3020, or 117.3123 

IPE117 InP +%&& e~ +&2231 of this title (relating to 

[& C* md] Sburce Capastern cap; and Dallas-Fort worth 

Ei&uirements), 

a user may use the equations listed in those sections, or the following 

equations. 

(i) For the rolling average cap: 

Figure: 30 TAC $ 101.376(d)(2)(A)(i) 

(ii) For maximum daily cap: 

Figure: 30 TAC $101.376(d)(2)(A)(ii) 

(B) - (E) (No change.) 

(3) - (5) (No change.) 

(e) (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 February 9, 

2007. 

TRD-200700376 

Robert Martinez 

Director. Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25, 2007 

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

DIVISION 5. SYSTEM CAP TRADING 

30 TAC $101.383, 5101.385 

STATUTORY AUTHORITY 

The amended sections are proposed under Texas Water Code, 

55.103, concerning Rules, and 55.105, concerning General Policy, that authorize the commission to adopt rules necessary to 

carry out its powers and duties under the Texas Water Code; 

and under Texas Health and Safety Code (THSC), 5382.017, 

concerning Rules, that authorizes the commission to adopt rules 

consistent with the policy and purposes of the Texas Clean Air 

Act. The amended sections are also proposed under THSC, 

5382.002, concerning Policy and Purpose, that establishes the 

commission purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and 

physical property; 5382.011, concerning General Powers and 

Duties, that authorizes the commission to control the quality of 

the state's air; and 5382.012, concerning State Air Control Plan, 

that authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air. The 

amended sections are also proposed under THSC, 5382.014, 

concerning Emission Inventory, that authorizes the commission 

to require a person whose activities cause air contaminant emissions to submit information to enable the commission to develop 

an emissions inventory; and 5382.051 and 5382.0518, concerning Permitting Authority of Commission and Preconstruction Permit, that authorize the commission to issue preconstruction and 

PROPOSED RULES February 23, 200 7 32 TexReg 725 
operating air permits. The amended sections are also proposed 

under 42 USC, §7410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, ss382.002, 382.011, 

382.012, and 382.017; and Senate Bill 784, 79th Legislature, 

2005. 

$101.383. General Ptvvisions 

(al (No chance.) 

(b) System cap limits Tor units within an cleclric powcr generaling system as regi~lated under 4 ll7.3P2Q [$-I-L7:138] or this lille 

(relating to Syslem Cap) may be exceedcd will1 surplus cmission allowablcs ohlainctl Tor that c;rlendar year rro~n nnc~tlicr sourcc owner or 

opcrillor parlicipating in a systcln cap. 

(c) (No cliangc.) 

(a) (No cliangc.) 

(b) The owner or operator oTa sourcc participating in a syslcm 

cap limil Tor sources subjccl Lo 8I~l7..020 [C;-I-KH8] or this Litle (rclating Lo Syslcrn Cap) shall submit to thc executive direclor an annual 

rcporl. 

(1 ) - (3) (No cll;llige.) 

(c) (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 February 9, 

2007. 

TRD-200700377 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Earliest possible date of adoption: March 25, 2007 

For iurther informat~on, please call: (Si2) 239-U348 

TITLE 31. NATURAL RESOURCES AND 

CONSERVATION 

PART 2. TEXAS PARKS AND 

WILDLIFE DEPARTMENT 

CHAPTER 53. FINANCE 

Texas Parks and Wildlife Department (department) proposes 

amendments to Ss53.2, 53.5, 53.6, 53.12, and 53.13, concerning License Fees and Boat and Motor Fees, and s53.60 

concerning Stamps. The proposed amendments are part of 

an overall department initiative to reduce the number of types 

of licenses sold by the department. By combining or replacing 

certain licenses and license packages and eliminating others 

that are not popular, the department will reduce administrative 

costs and regulatory complexity while still offering a variety of 

licenses to meet the various types of recreational demand. 

The proposed amendment to s53.2, concerning License Issuance Procedures, Fees, Possession and Exemption Rules, 

would add a new paragraph (4) to subsection (a) to stipulate 

that persons under the age of 17 are considered to be residents 

for the DurDoses of the cha~ter. Under Parks and Wildlife Code. ~ ~~ 

§42.00?, the commission is authorized to designate categories 

of individual as residents. The D~ODOS~~ amendment to subsection (b)(2) would alter the ~icinsk possession requirements 

to acknowledge that, due to the implementation of the one-day 

fishing package (which includes the saltwater stamp), the stamp 

requirement is no longer universal. 

The proposed amendment to $53.5, concerning Recreational 

Hunting Licenses, Stamps, and Tags, would rename the Special Resident Hunting License to the Senior Resident Hunting 

License, restrict its use to residents who are 65 years of age 

or older, and create an additional license that is limited to persons under the aae of 17. Under current rule, the S~ecial Resident Hunting ~icense is available to residents'overthe age of 65 

and any person under 17 years of age, regardless of residency 

status. The department wishes to be able to more accurately 

track demographic trends in purchasing and use, which makes 

it necessary to stratify the two age groups currently eligible to 

purchase the special resident license. The price of the licenses 

would remain unchanged. 

The proposed amendment to $53.6, concerning Recreational 

Fishing Licenses, Stamps, and Tags, would allow persons who 

are legally blind to be eligible to purchase the Special Resident 

Fishing License. The proposed amendment also would create a 

Senior Resident Fishing License for residents who are 65 years 

of age or older; create a Resident One-Day All-Water Fishing 

License ($10 fee), a Nonresident One-Day All-Water Fishing License ($15 fee), rename the special license packages as senior 

license packages, and would implement a fee of $3 for the Bonus 

Red Drum Tag. 

Under Parks and Wildlife Code, $46.004, the commission may 

establish a lower fee or waive the fee or license requirement 

for a resident who is blind as defined by Human Resources 

Code, s94.001. The department has always allowed legally 

blind persons to purchase a fishing license at a reduced cost; 

however, this has never been explicitly stated by rule. The 

proposed amendment wcu!:! zcconplish ihzt. The One-Day 

All-Water license is intended to replace a variety of licenses. 

To that end, the proposed amendment to subsection (c) would 

also eliminate the following licenses: July and August Resident 

Fishing, Day Resident Fishing, and Day Nonresident Fishing; 

and the following license packages: July and August Resident 

Fishing (freshwater, saltwater, all water) and both the resident 

and nonresident "Day Plus" Fishing (freshwater, saltwater, all 

water). The implementation of a fee for the bonus red drum tag 

is necessary for the department to recoup the administrative 

cost of providing anglers with the opportunity to take a red drum 

in addition to the red drum allowed under a fishing license. The 

proposed amendment also would eliminate obsolete references 

to effective dates and make additional nonsubstantive changes 

to simplify and clarify the regulations. 

The proposed amendment to s53.12, concerning Commercial 

Fishing Licenses and Tags, would eliminate both the Resident 

and Nonresident Commercial Fishing Boat License and create a 

single license for residents and nonresidents alike, which would 

be called the Commercial Fishing Boat License; and the new 

license would be required for any boat (resident or nonresident) 

used in taking aquatic products (except menhaden, oysters, 

32 TexReg 726 February 23, 2007 Texas Register 
Figure: 30 TAC 5 101.306(b)(3) 

Calculation of Emission Reductions Needed for System Cap or Source Cap 

Where: 

N = the total number of emission units in the source cap 

i = each emission unit in the source cap 

H; = actual daily heat input, in million British thermal units (Mh4Btu) per day, as 

calculated according to $$117.123@)(1), 117.223@)(1), 117.320(~)(1), 117.323@)(1), 

11 7.423@)(1), 1 17.1020(c)(l), 117.1 120(c)(l), or 1 17.1220(c)(l) of this title 

R;= the facility's emission factor, in pounds (lb)flMMBtu, is defined as in 

$51 17.123@)(1), 117.223@)(1), 117.320(~)(1), 117.323(b)(l), 117.423@)(1), 

1 17.1020(c)(l), 1 17.1120(c)(l), or 1 17.1 220(c)(1) of this title 

Hn = the maximum daily heat input, in MMBtu per day, expected for an emission unit 

during the use period 

Rn = the maximum emission factor, in lb/MMBtu, expected for an emission unit during the use period 

32 TexReg 924 Februarj~ 23, 2007 Texas Register 
Figure: 30 TAC $10 1.353(a) 

Where: 

(1) A= number of allowances rounded to tenths of tons; 

(2) B = the facility's baseline emission rate and is calculated as follows: 

(A) For facilities in operation prior to January 1, 1997: 

Where: 

LA97 = the facility's level of activity, as certified by the executive 

director for 1997; 

LA98 = the facility's level of activity, as certified by the executive 

director for 1998; 

LA99 = the facility's level of activity, as certified by the executive 

director for 1999; 

EF97 = the facility's emission factor for 1997 or the emission 

specifications under $5 11 7.3 10, 1 17.12 10, and 11 7.2010 of this title 

(relating to Emission Specifications for Attainment Demonstration; and 

Emission Specifications) (ESAD) whichever is higher, in pounds per unit 

of activity, (not to exceed any applicable federal or state regulation, rule, 

or permit limit), as certified by the executive director; 

EF98 = the facility's emission factor far 1998 or the emission 

specifications under ESAD, whichever is higher, in pounds per unit of 

activity, (not to exceed any applicable federal or state regulation, rule, or 

permit limit), as certified by the executive director; 

EF99 = the facility's emission factor far 1999 or the emission 

specifications under ESAD, whichever is higher, in pounds per unit of 

activity, (not to exceed any applicable federal or state regulation, rule, or 

permit limit), as certified by the executive director. 

TABLES AND GRAPHICS February 23,2007 32 TexReg 925 
(B) For existing facilities not in operation prior to January 1, 1997 and that have 

been in operation less than five complete consecutive calendar years begrnning 

after the end of the adjustment period and have not established two years of 

baseline data: 

Where: 

LAAllowable = The level of activity authorized by the executive director 

until such time two consecutive calendar years of actual level of activity 

data is available; 

EFAllowable = The emission factor or the emission specifications under 

ESAD, whichever is higher, authorized by the executive director until 

such time two consecutive calendar years of actual emission data is 

available. 

(C) For existing facilities not in operation prior to January 1, 1997, and that have 

established two consecutive calendar years of baseline data out of the first five 

years of operation following the end of the adjustment period: 

Where: 

LAYear-1 = the facility's level of activity, as certified by the executive 

director, for the first of any two consecutive years within the first five 

years of operation; 

LAYear-2 = the facility's level of activity, as certified by the executive 

director, for the second of any two consecutive years within the first five 

years of operation; 

EFYear-1 = the facility's emission factor or the emission specifications 

under ESAD, whichever is higher, in pounds per unit of activity, (not to 

exceed any applicable federal or state regulation, rule, or permit limit), as 

certified by the executive director, for the first of any two consecutive 

years within the first five years of operation; 

32 TexRcg 926 Februarj) 23, 2007 Texas Register 
EWear-2 = the facility's emission factor or the emission specifications 

under ESAD, whichever is higher, in pounds per unit of activity, (not to 

exceed any applicable federal or state regulation, rule, or pmit limit), as 

certified by the executive director, for the second of any two consecutive 

years within the first five years of operation. 

(3) X = reduction factor, where: 

(A) For all boilers, auxiliary steam boilers, and stationary gas turbines (including 

duct burners used in turbine exhaust ducts) within an electric power generating 

system, as defined in 6 1 17.10(14)(A) of this title (relating to Definitions), located 

in the Houston-Galveston-Brazoria nonattainment area: 

(i) for January 1,2002 through March 3 1,2003, X = 0.00; 

(ii) for April 1,2003 through March 3 1,2004, X = 0.50; 

(iii) on or after April 1, 2004, X = 1.00; 

(B) For facilities subject to the emission specifications under $1 17.310(a)(l)(A) 

and (B), (2)(A), (5), (8)(A)(i), (8)(B), (9)(A)(ii), (lo), or (1 1) of this title: 

(i) for January 1,2002 through March 3 1, 2004, X = 0.00; 

(ii) for April 1,2004 through March 3 1,2005, X = 0.47; 

(iii) for April 1,2005 through March 3 1, 2006, X = 0.80; 

(iv) for April 1,2006 through March 3 1,2007, X = 0.93; 

(v) on and after April 1,2007, X = 1.00; 

(C) For all other faci!ities: 

(i) for January 1,2002 through March 3 1, 2004, X = 0.00; 

(ii) for April 1,2004 through March 31,2005, X = 0.389; 

(iii) for April 1,2005 through March 3 1,2006, X = 0.667; 

(iv) for April 1,2006 through March 31,2007, X = 0.778; 

(v) on and after April 1,2007, X = 1.00; 

(D) Alternatively, facilities subject to the reduction factors under 

subparagraph B of this paragraph may elect to comply with the following: 

(i) for January 1,2002 through March 3 1,2005, X=O.OO; 

(ii) on and after April 1, 2005, X= 1.00. 

- - - - - - - 

TABLES AND GRAPHICS February 23, 200 7 32 TexReg 92 7 
(E) Election to comply with the alternative reduction schedule under 

subparagraph @) of this paragraph shall be made by letter to the executive 

director no later than April 1,2003. 

(F) For calendar years which include two different reduction factors, the 

reduction factor shall be adjusted using the appropriate ratio to reflect the number 

of months covered by each reduction factor. 

(4) LAHA = historical avemge level of activity, where: 

(A) For facilities in operation on or before January 1, 1997, the average level of 

activity, as certified by the executive director, for 1997, 1998, and 1999; or 

(B) For existing facilities which began operation after January 1, 1997, LAHA is: 

(i) the level of activity authorized by the executive director until such 

time two consecutive calendar years of actual level of activity data is 

available, beginning after the end of the adjustment period; or 

(ii) when two complete consecutive calendar years of actual level of 

activity data is available, bepnning after the end of the adjustment 

period, the level of activity becomes the average of the facility's actual 

level of activity over those two consecutive calendar years of actual level 

of activity data. 

(5) EFfinal = emission factor, as listed in $9 11 7.3 10, 1 17.12 10, or 1 17.2010 of this title. 

(6) For facilities using alternative emission specifications as allowed in $1 17.3 10(a)(17) 

or 4 11 7.2010(~)(6) of this title, the level of activity for any formula will be the lowest of 

the level of activity as calculated in variables (2)(A), (2)(B), or the level of activity 

limited by an enforceable limit or commitment necessary to qualify for an alternative 

emission specification in $1 17.310(a)(17) or $1 17.2010(~)(6) of this title. 

32 TexReg 928 Feb~.~lar-y 23, 2007 Texas Register 
Figure: 30 TAC $ 101.376(d)(2)(A)(i) 

Amount of DERCs 

d Required = 1 [(EX, x ER,) - (H, x R,)] x (--) i= 1 2000 (tons) 

Where: 

d = the number of days in the use period 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Hi = actual daily heat input, in million British thermal units (MMBtu) per day, as 

calculated according to $4 1 17.123(b)(l), 1 17.223(b)(l), 1 17.320(~)(1) and (2), 

1 17.323@)(1), 1 17.423(b)(l), 1 17.1020(c)(l), 117.1 120(c)(l), 117.1220(~)(1), or 

1 17.3020(c) of this title (relating to Source Cap; and System Cap) as applicable 

Ri = actual emission rate, in pounds (lb)/MMBtu, as defined in $5 1 17.123(b)(l), 

117.223(b)(l), 117.320(~)(1) and (2), 117.323(b)(l), 117.423@)(1), 117.1020(~)(1), 

117.1 120(c)(l), 117.1220(~)(1), or 117.3020(c) of this title as applicable 

EHi = expected new daily heat input, in MMBtu per day 

ERi = expected new emission rate, in Ib/MMBtu. 

TABLES AND GRAPHICS February 23, 2007 32 TexReg 929 
Figure: 30 TAC 5 10 1.376(d)(2)(A)(ii) 

N 1 

Amount of DERCS Required (tons)= [(EHM~ER~)- (HM~R~)]- 

i=l 2000 

Where: 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Ri = in Ib/MMBtu, is defined as in $9 1 17.123(b)(l), 1 17.223@)(1), 117.320(~)(3), 

1 17.323@)(1), 1 17.423@)(1), 1 17.1020(~)(2), 1 17.1 120(c)(2), or 1 17.1220(~)(2) of this 

title (relating to Source Cap; Emission Specifications for Attainment Demonstration; and 

System Cap) as applicable 

HMi = the maximum daily heat .input, in MMBtu/day, as defined in 

$5 117.123(b)(l), 117.223@)(1), 117.320(~)(3), 1 17.323@)(1), 117.423@)(1), 

1 17.1020(~)(2), 1 17.1 120(c)(2), or 1 17.1220(~)(2) of this title as applicable 

EHMi = expected new maximum daily heat input, in MMBtu per day 

ERi = expected new emission rate, in IbIMMBtu. 

32 TexReg 930 February 23, 200 7 Texas Register 
Kathleen Hartnetl White, C/2aiman 

Larry R. Soward, Comt72issioner 

hlartin A. Hubert, Comt71issioner 

Glenn Shanltle, Executive Di~ector 

Protecting Texas by Reducing and Preventitzg Pollution 

NOTICE OF PUBLIC HEARING BY THE 

TEXAS COMMISSION ON ENVIRONMENTAL QUALITY 

ON PROPOSED REVISIONS TO 30 TAC CHAPTER 101 AND 

TO THE STATE IMPLEMENTATION PLAN 

The Texas Commission on Environmental Quality (commission) will conduct a public hearing to receive 

testimony regarding proposed revisions to 30 Texas Administrative Code (TAC) Chapter 101, General Air 

Quality Rules, and to the state implementation plan (SIP), under the requirements of Texas Health and 

Safety Code, 5382.017; Texas Government Code, Chapter 2001, Subchapter B; and 40 Code of Federal 

Regulations 551.102 of the United States Environmental Protection Agency (EPA) regulations concerning 

SIPS. 

The proposed rulemaking would correct references to sections of 30 TAC Chapter 117 which are changing 

due to the reorganization of Chapter 117. This rulemaking would also include revisions identified during 

the last review of Chapter 101, including changes to the definitions of visible emissions, cold solvent 

cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and 

standard conditions. A definition for nitrogen oxides would be added, the definitions of hazardous waste 

management facility and hazardous waste management unit would be deleted, references to the title of the 

commission would be corrected, and an obsolete effective date section would be removed. 

A public hearing on this proposal will be held in Austin, Texas, on March 20, 2007, at 10:OO a.m., in 

Building B, Room 201A, at the Texas Commission on Environmental Quality complex located at 12100 

Park 35 Circle. The hearing will be structured for the receipt of oral or written comments by interested 

persons. Registration will begin 30 minutes prior to the hearing. Individuals may present oral statements 

when called upon in order of registration. There will be no open discussion during the hearing; however, 

commission staff members will be available to discuss the proposal 30 minutes prior to the hearing. 

Persoils planning to attend the hearing, who have special co~nrnunication or other accoinmodation needs, 

should contact Lola Brown, Office of Legal Services, at (512) 239-0348. Requests should be made as far in 

advance as possible. 

Coininents may be submitted to Lola Brown, MC 205, Texas Register Team, Office of Legal Services, 

Texas Coinlnission on Environmental Quality, P.O. Box 13087, Austin, Texas 7871 1-3087 or faxed to (512) 

239-4808. Electronic comments may be submitted at htty://www5.tceq.state.tx.us/~ules/ecomme~zts. The 

comment period closes March 26, 2007. All comments should reference Rule Project Nuinber 2006-053- 

101-PR. The proposed rules may be viewed on the coinmission's Web site at 

lzttp://www.tceq.state.tx.us/nav/rules/p~opose~adopt.html. For further illformation or questions concerning 

this proposal, please contact Becky Southard, Air Permits Division, at (512) 239-1638. 

Issued in Austin, Texas, on Febl-uary 7, 2007. 

P.O. Box 13087 Austin, Texas 78711-3087 512/239-1000 internet address: ~vw1w.tceq.state.tx.us 
WRITTEN AND 

ORAL TESTIMONY
Reference Number 

INDEX OF WRITTEN TESTIMONY 

Submitted Bv 

'The United States Environmental Protection Agency 

Eternal Springs Wellness 
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

REGION 6 

1445 ROSS AVENUE, SUITE 1200 

DALLAS, TX 75202-2733 

Ms. Lola Brown 

Texas Re~ster Team (MC 205) 

Office of Legal Services 

Texas Commission on Environmental Quality 

P.O. Box 13087 

Austin, TX 78711-3087 

RE: Rule Project Number 2006-053- 10 1 -PR 

Dear Ms. Brown: 

Thank you for the opportunity to review and comment on the proposed revisions 

to the Texas Administrative Code (TAC) Title 30, Chapter 101 and the associated 

revisions to the Texas State Implementation Plan (SIP). This proposed rulemaking 

corrects cross references to sections in 30 TAC Chapter 1 17 that have changed as a result 

of the Chapter 117 reorganization and includes changes to definitions and the removal of 

obsolete sections. The Environmental Protection Agency (EPA) appreciates the time and 

attention your staff has devoted to processing this proposed rulemaking. In general, we 

are supportive of this proposed rulemaking but would like to provide the following 

comments for your consideration. 

1. The EPA appreciates your efforts to update the definitions and references 

in Chapter 101 that are changing due to the reorganization of Chapter 11 7. 

2. The Alternate Emission Reduction "Bubble" Policy at Chapter 101, 

section 101.23 is not part of the federally approved regulations in the 

Texas SIP. Therefore, EPA will be unable to approve the proposed 

administrative changes to this section. We suggest that TCEQ clearly 

identify this section and the proposed revisions as not part of the SIP. 

Additionally, it is EPA's expectation that an alternative emission reduction 

Internet Address (URL) hHp://www.epa.gov 

RecycledlRecyclable Printed wnh Vegetable Oil Based Inks on Recycled Paper (Mlnlmum 25% Postconsumer) 
policy that is approved for an individual source in Texas would be 

submitted as a case-specific revision to the SIP. 

If the Texas Commission on Environmental Quality (TCEQ) intends to 

propose the Alternate Emission Reduction Policy for inclusion in the 

Texas SIP, this program would need to be developed and proposed in 

accordance with EPA's guidance on economic incentive programs, 

"Improving Air Quality with Economic Incentive Programs" 

(January 200 1, EPA-452R-01-OOI), in addition to meeting all other 

applicable requirements of the Clean Air Act. We also strongly encourage 

you to consult the Region 6 office for assistance during this rule 

development process. 

4. We note that the Chapter 101, Subchapter H, Division 1 Emission Credit 

Banking and Trading Program applies to nonattainment areas. The 

proposed revision to section 101.302(d)(l)(A) includes a citation to 

section 1 17.33 10, Emission Specifications for Eight-Hour Attainment 

Demonstration for East Tcxas Combustion Control. The EPA believes 

that the inclusion of section 1 17.3310 is incorrect since the East Texas 

area is attainment for all pollutants. 

There appears to be an inconsistency regarding the cement kilns under 

section 117.3123 and the proposed revisions to section 101.306(b)(3) and 

Figure 30 TAC 5 101.306@)(3). Section 101.306@)(3) provides that 

emission reduction credits can be used for compliance with the 

requirements at section 117.3123, but section 117.3123 is not included in 

the equation under Figure 30 TAC 5 101.306@)(3) "CaIculation of 

Emission Reductions Needed for System Cap or Source Cap". 

Additionally, this same inconsistency appears in the proposed revisions to 

sections 101.372(d)(l)(A), 101.376(d)(Z)(A), and Figure 30 TAC $ 

101 .?76(@(2)(Aj(i) GI" th Discrete Emission Credit Bankin;: Tradhr 6 

Program. Please review and update the citations accordingly. 

6. Section 101.306@)(3) provides that the amount of emission credits needed 

for increasing the 30-day rolling average emission cap or maximum daily 

cap should be determined according to Figure 30 TAC $ 101.306@)(3). 

We note that the citations to Chapter 1 17 in Figure 30 TAC 5 

101.306@)(3) do not reference the maximum daily cap requirements. 

Please review and update the citations accordingly. 

7. Figure 30 TAC 5 101.376(d)(2)(A)(ii) provides the calculation to 

determine the number of discrete emission credits necessary to comply 

with the maximum daily cap requirements in Chapter 117. We note that 

sections 117.123(b)(l), 117.223(b)(l), 117.323@)(1), and 117.423(b)(l) 

refer to rolling 30-day average emission caps instead of maximum daily 
caps. Please update the citations to reference the appropriate maximum 

daily caps. 

Thank you again for the opportunity to provide comments. Please note that these 

comments do not constitute final determinations concerning approvability of the revisions 

to the Texas SIP. We ase providing these comments to assist TCEQ in the development 

of regulatory language. We look forward to working with TCEQ as you move forward in 

responding to these comments and finalizing the revisions to the Texas SIP. If you have 

any questions, please call Ms. Adina Wiley of my staff at (214) 665-21 15. 

Sincerely yours, 

Jeff Robinson 

Chief 

Air Permits Section 
First Name: michele 

Last Name: bonilla 

Company/Organization: elternal springs wellness 

E-mail Address: mbonilla3@gmail.com 

Street Address: 1712 fairview 

City: houston 

State: tx 

Zip Code: 77006 

Phone Number: 

Fax Number: 

Rule: 2006-053-101-PR 

Comments : 

i wanted to reference this and 2006-136114EN and tellyou that i want to be 

sure that there are concrete way to achieve clean air in any proposal. i now 

suffer from asthma and bronchitis die to the air quality of Houston. As a 

long time business woman here, i want to continue to contribute to the economy 

of Houston and do my workshopa dn businees here; yet there are so many cleaner 

venues for my clientel that i am concerned about their well-being and the 

economic impact on Houston. i would like to see the smog cleaned up now and 

not by 2018. i have the priveledge of travel and would like to see us 

implement the claifornia standards. I would like to see the VOC storage 

tank/degasing regulations and rules strengthened and implemented by janl, 

2009. We are at a critical time and have been for the last 50 years, our 

children and their children deserve a clean planet. i deserve to breathe and 

not have to use inhalers. thank you for your consideration michele bonilla 
INDEX OF ORAL TESTIMONY 

Public Hearing 

March 20, 2007, in Austin 

No orals comments were received for the proposed rulemaking. 
EVALUATION OF

TESTIMONY
Texas Commission on Environmental Quality INTEI1OFFICE MEMOItANDUM 

To: Commissioners Date: July 6, 2007 

Thru: LaDonna Castafuela, Chief Clerk 

Glerln Shankle, Executive Director 

From: Dan Eden, Deputy Director p 

Office of Permitting, Remediation, and Registration 

Docl{el No. : 2006-2026-RUL 

Sul).ject: Commission Approval for Rulemaking Adoption 

Chapler 101, General Air Quality Rules 

General Air Rules Citatioils 

Rule Project No. 2006-053-1 0 1 -PR 

Reasons for the rule paclcage: 

Under what authority are we adopting these changes? Texas Water Code, 55.102, General 

Powers, $5.103, Rules, and $5.105, General Policy; and Texas Health and Safety Code, 

5382.002, Policy and Purpose, $382.01 1, General Powers and Duties, 5382.012, State Air Control 

Plan, $382.014, Emission Inventory, $382.016, Monitoring Requirements; Examination of 

Records, $382.017, Rules, 5382.051, Permitting Authority of Comnission; Rules, and 42 United 

States Code (USC), $7410(a)(2)(A), that requires state implementation plans (SIPS) to i~lclude 

enforceable measures or techniques including economic incentives such as fees, marketable 

permits, and auctio~~ of enlission rights. 

Is this rulemalung required by federal rule or state statute? Cross-referencing revisions to 

Chapler 101 were driven by the reorganization of Chapter 117, which also includes new1 sections 

which are part of the federally required SIP. This rulemakin: is no1 required by slate statute. 

a Are there any legal deadlines by which these rules must be adopted or. efl'ective? No, but the 

changes to Chapter 101 are intended to be effective as soon as possible after the changes 

to Chapter 1 17 beco~lle effective. 

a 13'hat issue(s) or, problem(s) are we trying to solve? Chapter 101 coiltai~ls references to sectio~ls 

of Chapter 117 wh~ch are changillg due to the reorganization for Chapter 117, requiring that the 

citcd references in Chapter 101 also change. This rule package also includes re\/isions identified 

du~-ing the 1;1sl rjuadre~lnia] rc\/iew of Chapter 101 . 

JYh;)? is it important that wc do this rule pacltage? Updating Chapter 101 will provide a more 

correcl and less confusing set of general rules for the regulated collm~unity and tile agency. 

Other imj>o~.ta~ll l)aclcgro~i~id orhisto~~ical inl'onnatioil. None. 

Scope ol' the ruleinalting: 

The a~lleild~llellts would update the cross-references to Chapter 117 and make ~ninor revisions and 

corrections (see staff ~~ecommendations)~ 
Comn~issioners 

Page 2 

July 6, 2007 

Re: Docket No. 2006-2026-RUL 

Changes required by federal rule: Cross-referencing revisions to Chapter 101 were driven by the 

reorganization of' Chapter 117 which also includes new sections which are par1 of the federally required 

SIP. 

Changes requireti by state statute: Nolie. 

Staff recon~nlei~dations that are 11ot expressly required by f'ederal rule or state statute: 

Specifying that the definitions in $1 01 .I apply to all air quality rules. 

Changing definitions of cold solvent cleaning, conveyorized degreasing, and open-top 

vapor degreasing by deleting the word "metal" so thai the definition also applies to 

cleaning non-metal parts. 

Deleting definitions for llazardous waste management facility and hazardous waste 

management unit as they are no longer used in the rules. 

Revising the definition of high-volume, low-pressure spray guns to specify that the 

operating pressure of this equipment is measured at the air cap. 

Adding rhe Chapter 117 definition for nitrogen oxides. 

Changing the definition for standard conditions by deleting the last sentence, "Pollutant 

concentrations fron~ an incinerator ~lill be corrected to a condition of 50 percent excess air- if 

the incinerator. is operating at greater than 50 percent excess air." 

Updating the second sentence of the definition of visible emissions to read as follo~~s: 

"Tlle radian[ energy from an open flame is not considered a visible emission under this 

definition," adding the word "not. " 

Repealing 51 01 22, Effective Date. 

Inlpact on the regulated conlnlu~~ity: 

M'ho ~411 be affected? Owners and operalors of' facilities sub-ject lo Chapter 101 

Does it create a group of affected persons who were not affected previously? No. 

MJill there be a fiscal impact? No. 

lnipact on the public: 

M'lio will be al'f'ecled? NIA . 

Does it crcale a group of' al'l'eclerl persons vrlio were 1101 affected previo~lslj~? No. 

MJill there bc a Siscal in~pact? No 

Inipacl on agency ~>rogr-ams: 

The chnges to Chapter. 101 will serve to more correctly ref'erence the updaled Chapter 117 and u1)date the 

def~nitions orti ti on of the rule. 
Commissioners 

Page 3 

July 6, 2007 

Re: Dockel No. 2006-2026-RUL 

Stalreliolder meetings: 

Have any stalceliolder meetings been held? No. 

With whom? N/A. 

What were the general sentiments? NIA. 

Were any changes made in response to stalteholder concerns? N/A. 

Policy issues: 

What policy issues are aflecled? None. 

Are any policies that are 1101 curre~~tlj~ based on rule beillg made into a rule? No. 

M11lat are the consequences if this rulemalung is not approved to go forward? Chapter 101 

would be inaccurate and difficult to cross-reference with Chapter 11 7. 

Are there alter~iatives? No. 

Potentially controversial matters: None. 

Key poiiits in adoption rulema1;ing schedule: 

Texas Rcgistcr publication date: 02/23/07 

Anticipated effective date: 0811 6/07 

Six-moiitli adoption deadline: 08/23/07 

Public con~nlent: 

No comments were made a1 the j~ublic hearing. The United States En~lironn~ental Protection Agellcy (EPA) 

and one organization provided ~11.1 tLen comments. Tlle organization's con~ments did not perlain to tile I-ule 

revision, bul some of EPA's comments resul~ecl In refel.ence changes ~tithin the r~ile. 

Signilicanl changes fro111 proposal 

EPA's concerns were generally dealing ~litll 1.efel.cl1ces tllal ~1e1.e unrelated Lo the Chapter 117 

1.eor.ganiza~io11. ETA also commentecl aboul inconsistencies in some sections of SubchapLel 1-1 be~ween Llle 

c~latiorl references and tile con.esponding figu1.e~. T11e rule 11as been ~.evised to correct these refc~.ences. 

There ~l;is one com~nent from EPA ~lhicl1 asked for clarifica~ion as Lo ~lhetller or no1 a sec~ion bras pal-[ of 

Llle SIP. The 1.esponse Lo his comnlcnl clarifies [hat $101.23 is 1101 par1 of Lhe fede~~;illy apj~~.o\lecl 

~~egulations inLhe Texas SIP. The Commission currently applies the conditions of this secljon eillles 

~111.ough otller rules of [he con~mission or ~11sougll individual permits. The Executive Direclo~ recommends 

that the proposed anlendn~eii~s lo 5 101 .23 not be adopled. 
Co~nmissioners 

Page 4 

July 6, 2007 

Re: Docket No. 2006-2026-KUL 

Agency contacts: 

Becky Southard, Rule Project Manager, 239-1638, Air Permils Division 

Tim Eubank, Stafr Attorney, 239-1976 

Patricia Duron, Texas Register Coordinalor, 239-6067 

cc: Chief Clerk, 5 copies 

Executive Director's Office 

David C. Schanbacher, P.E. 

Jason Skaggs 

Ashley K. M1adick 

Becky Walker 

Office of General Counsel 

Becky Southard 

Patricia Duron 

cc (v,lithout attachments): 

Tim Eubank, Staff Attorney 

Debi Dyer, Program Office Liaison 

Tara Capobianco, Division Liaison 

Booker Harrison, OLS Liaison 

Russ Kimble, OLS 
Texas Commission on Environmental Quality 

Chapter 101 - General Air Quality Rules 

Rule Project No. 2006-053-1 0 1 -PR 

Page 1 

The Texas Con~mission on Environmental Quality (TCEQ or comn~ission) adopts amendments to 

$$101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, 

and 101,385 and the repeal of $101.22. Sections 101.1, 101.302, 101.306, 101.354, and 101.376 are 

adopted wit/? cllnllges to the proposed text as published in the February 23,2007 issue of the Texas 

Register. Sections 101.22, 101.350, 101.351, 101.353, 101.360, 101.372, 101.383, and 101.385 are 

adopted witlzotrt clzanges to the proposed text and will not be republished. 

The commission does not adopt the proposed amendments to $101.23 as published in the February 23, 

2007, issue of the Texas Register. 

The amended $$101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 

101.376, 101.383, and 101.385 and the repeal of 5101.22 will be submitted to the United States 

Environmental Protection Agency (EPA) as revisions to the Texas State Implementation Plan (SIP). 

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED RULES 

The commission has adopted revisions to 30 Texas Adnlinistrative Code (30 TAC) Chapter 117, Control 

of Air Pollution from Nitrogen Compounds, as part of the SIP for the Houston-Galveston-Brazoria (HGB) 

and Dallas-Fort Worth nonattainment areas. Under those revisions, Chapter 1 17 was reorganized. 

Chapter 101, General Air Quality Rules, contains references to sectioils of Chaptei- 1 17 which have 

changed due to the real-ganization, requiring that the cited references in Chapter 101 also change. This 

adopt1011 also includes rev~sions identified during the last quadrennial I-eview of Chapter I0 1, including 

changes to the definitions of cold solvent cleaning, conveyorized degreasing, high-volun~e low-pressure 

spray guns. open top vapor deg-easing, standard conditions, and visible emissions. Other changes include 
Texas Commission on Environmental Quality 

Chapter 101 - General Air Quality Rules 

Rule Project No. 2006-053- 10 I -PR 

Page 2 

the deletion of the definitions of hazardous waste management facility and hazardous waste management 

unit, the addition of a definition for nitrogen oxides, and the removal of an obsolete effective date section. 

EPA comments dealing with some references unrelated to the Chapter 117 reorganization, resulted in 

some changes. 

SECTION BY SECTION DISCUSSION 

,fIOI. I. D~lfinitio11.s. 

'She comn~ission adopts the modification of the opening paragraph of this section to specify that the 

definitions in 4 101.1 apply to all air quality rules. Thc commission adopts the changes to the definitions 

of cold solvent cleaning, conveyol.ized degreasing, and open-top vapor degreasing by deleting the word 

"metal" so that the processes also apply to cleaning non-metal parts. The adopted amendment deletes the 

definitions of hazardous waste management facility and hazardous waste management unit because 

references to these definitions are not found in any of the air rules. The adopted revision to the definition 

of high-volume low-pressure spray guns specifies that the operating pressure of this equipment is 

measured at the air cap because this provides the most accurate measureme~~t. The con~n~ission adopts 

the addition of the definition of nitrogen oxides from Chapter 1 17 because this is a common term used 

throughout the commission's air quality rules. The adopted amendment deletes the last sentence of the 

definition of standard conditions that reads: "Pollutant concentrations from an incinerator will be 

corrected to a condition of 50% excess air if the incinerator is operating at greater than 50%) excess air." 

The amount of air present in combustion is variable and does not qualify as a standard condition. The 

co~nmission adopts the change in the second sentence of the definition of visible emissions to read: "The 

radiant energy from an open flame is not considered a visible emission under this definition." Radiant 

energy may manifest some visual effects but there is no air contaminant emitted. 
Texas Commission on Environmental Quality 

Chapter 10 1 - General Air Quality Rules 

Rule Project No. 2006-053-101 -PR 

Page 3 

$1 01.22. Effective Date. 

The comn~ission adopts the repeal of this section because it is no longer required. 

$1 01.302. General Provisiojzs. 

The commission adopts the references to the newly renumbered Chapter 1 17 sections. The section has 

been revised since proposal due to a comment submitted by the EPA to remove the reference to 

tj 1 17.33 10, Emission Specifications for Eight-Hour Attainment Demonstration, from 5 101.302(d)(l)(A) 

since the East Texas area is attainment for all pollutants. 

$1 01.306. Ejnissiojl Credit Use. 

The commission adopts the references to the newly renumbered Chapter 1 17 sections. The section has 

been revised since proposal to remove the reference to $1 17.3 123 from tj 101.306(b)(3) because the rule 

does not require it to be referenced in the equation under Figure 30 TAC $101.306(b)(3). Also, 

references to n~aximun~ daily cap and references to emission credits that are to be used for compliance 

with the requirements of 30 TAC Chapters 114, Control of Air Pollution from Motor Vehicles, Chapter 

1 15, Control of Air Pollution from Volatile Organic Con~pounds (VOCs), or Chapter 1 17 or other 

programs, were added to this section since proposal due to a comlnent s~~bmitted bythe EPA. 

$1 01.350. D<fi~~iiions. 

The cornmlsslon adopts the replacement of the definition of Houstoi~/Galveston (HGA) ozone 

nonatlainrnent area with HGB ozone nonattainn~ent area because the name of the nonattaininent area has 

chai~ged. 
Texas Commission on Environmental Quality 

Chapter 10 1 - General Air Quality Rules 

Rule Project No. 2006-053-101 -PR 

Page 4 

$101.351. A~~~~lic~~hi/;t~~. 

Thc com~nission adopts the replacement of references to Chapter 1 17 section numbers with the newly 

renumbered Chapter 1 17 sections. 

,+101.353 rlllocation of~lllo~vuncc.\. 

The commrss~on adopts the replacement of references to Chapter 1 17 sectlon numbers with the newly 

renumbered Chapter 11 7 sectlons This sectron has been changed slnce proposal to add references to 

sect~ons dealing w~th luitral I)cmonstrat~on of Compliance. These changes were unrelated to the 

comn~cnts subm~tted by EPA. 

j101.354. Allowance Ded~rctio~n 

The commissron adopts the replacement of references to Chapter 117 sectron numbers w~th the newly 

renumbered Chapter 11 7 sections. 

$101 360 Level of Actlvlty Ccrtzficcrtion 

The commission adopts the replacement of references to Chapter 11 7 secllon numbers w~th the ncwly 

renumbered Chapter 1 17 secttons 

$1 01.3 72. Geneva1 PI-o~~isiot7.s. 

The commission adopts the replacement of references to Chapter 1 17 section numbers with the newly 

renumbered Chapter 1 17 sections. 
Texas Con~mission on Environmental Quality 

Chapter 10 1 - General Air Quality Rules 

Rule Project No. 2006-053-1 0 1 -PR 

Page 5 

$101.3 76. Discrete Elllissio~l Cl*eliil Use. 

The commission adopts the replacement of references to Chapter 1 17 section numbers with the newly 

renumbered Chapter 1 17 sections. This section has been changed since proposal due to a comment 

submitted by the EPA to correctly reference maximum daily caps instead of rolling 30-day average 

emission caps. 

$1 01.383. General Provisions. 

The comn~ission adopts the replacement of references to Chapter 117 section numbers with the newly 

renumbered Chapter 117 sections. 

$1 01.385. Recordkeeping a17d Reporting. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly 

renumbered Chapter 11 7 sections. 

The con~mission also adopts minor administrative changes to address conformity to Tesas Register 

requirements and other agency rules and guidelines. 

FINAL REGULATORY IMPACT ANALYSIS DETERMINATlON 

The comn~ission reviewed the adopted rulemaking in light of the regulatory impact analysis requirements 

of Texas Government Code, $2001.0225, and determined that this adoption is not subject to $2001.0225 

because it does not meet the definition of a illajor environmental rule as defined in that statute. A "major 

environmental rule" means a rule, the specific intent of which is to protect the environment or reduce 

risks to human health fro111 environmental exposure and that may adversely affect in a material way the 
Texas Commission 011 Environmental Quality 

Chapter 10 1 - General Air Quality Rules 

Rule Project No. 2006-053-101 -1'R 

Page 6 

economy, productivity, conipetit~on, Jobs, tlie environment, or the public health and safety of the state or a 

sector of the state. Although the ultimate intent is to protect the environment, these adopted alnendments 

are mainly the result of an administrative action only, to correct and update cross-references to Chapter 

1 17, which has been reorganized, modify certain definitions, and make other procedural changes to 

Chapter 101 . 

Chapter 1 17, Control of Air Pollution from Nitrogen Con~pounds, has been reorganized. Chapter 101, 

General Air Quality Rules, contains extensive references to sections of Chapter 1 17 that were renumbered 

because of the reorganization. The references contained in Chapter 101 must change accordingly. This 

adoption also includes revlslons ident~fied during the last quadrennial review of Chapter 101 by the 

executive director and includes changes to the definitions of visible emissions, cold solvent cleaning, 

conveyorized degreasing, open- top vapor degreasing, high-volume low-pressure spray guns, and standard 

conditions. Other adopted changes include deleting the definitions of hazardous waste management 

facility and hazardous waste management unit, adding a definition for nitrogen oxides, and removing an 

obsolete effective date section. 'The adopted rules will not adversely affect in a material way the 

economy, a sector of the economy, productivity, competition, jobs, the cnvironnient, or the public health 

and safety of tlie state or a sector of the state. 

In addition, a regulatory impact analysis is not required because the rules do not meet any of the four 

applicability criteria for requiring a regulatory impact 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) 
Texas Con~mission on Environmental Quality 

Chapter 101 - General Ail- Quality Rules 

Rule Project No. 2006-053-101-PR 

Page 7 

exceed a requirement of a delegation agreement or contract between the state and an agency or 

representative of the federal government to implement a state and federal program; or 4) adopt a rule 

solely under the general powers of the agency instead of under a specific state law. This rulemaking does 

not exceed a standard set by federal law, and the adopted requirements are consistent with applicable 

federal standards. In addition, this adoption does not exceed an express requirement of state law and is 

not adopted solely under the general powers of the agency, but is specifically authorized by the provisions 

cited in the STATUTORY AUTHORITY section of this preamble. Finally, this rulemaking does not 

exceed a requirement of a delegation agreement or contract to implement a state and federal program. 

The commission solicited comnlents on the draft regulatory impact analysis deternlination and no 

comments were received. 

TAKINGS IMPACT ASSESSMENT 

The commission evaluated this rulemaking action and performed an analysis of whether the adopted rules 

are subject to Texas Govenln~ent Code, Chapter 2007. The primary purpose of the rulemaking is to 

update references to sections of Chapter 1 17, which has been reorganized, to modify certain definitions, 

and to make other procedural changes to Chapter 10 1. These amendments do not affect private property 

in a manner that restricts or limits an owner's right to the property that would otherwise exist in the 

absence of the govel-nmental action. Prolnulgation and enforcement of these adopted rules is neither a 

stat~~loly nor a constitutional taking because they do not affect private real property. Therefore, these 

rules do not constitute a taking under Texas Govern~nent Code, Chapter 2007. 
'Texas Cornmiss~ol~ on Environmental Quality 

Chapter 101 - Genel-al Air Quality Rules 

Rule Project No. 2006-053-1 0 1 -PR 

Page 8 

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM 

The commission reviewed the adopted rulemaking and found the adoption is a rulemaking identified in 

the Coastal Coordination Act Implementation Rules, 3 1 TAC $505.1 1 (b)(2), relating to rules subject to 

the Coastal Managcmmt Program, and will, therefore, require that goals and policies of the Texas Coastal 

Management Program ((:MP) be considered during the ruleniaking process. The conimission reviewed 

this rulemaking for co~lsistency with the CMP goals and policies In accordance with the regulations of the 

Coastal C:oordination Council and determined that the amendments are consistent with CMP goals and 

policies. The CMP goal applicable to this rulemaking action is the goal to protect, preserve, and enhance 

the diversity, quality, quantity, functions, and values of coastal nat~lral resource areas (3 1 TAC: 

$501.12(1)). 'The adopted rules update references and definitions. No new sources of air contami~iants 

will be authorized and the revisions will maintain the same level of emissions control as previous rules. 

The CMP policy applicable to this rulemaking action is the policy that the commission's rules comply 

with fcderal regulations In 40 Code of Federal Regulations, to protect and enhance air quality in the 

coastal areas (3 1 TAC $50l.l4(q)). 'This rulemaking action complies with 40 Code of Federal 

Regulations Part 5 1, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. 

Therefore, in accordance with 3 1 ?'AC $505.22(e), the commission affirms that lh~s rulemaking action is 

consistent with CMP goals and policies. 

The commission sol~cited comme~~ts on the consistency of this rulemaking, but iio coniments on the CMP 

were received. 
Texas Commission on Environmental Quality 

Chapter 101 - General Air Quality Rules 

Rule Project No. 2006-053-1 0 1 -PR 

Page 9 

PUBLIC COMMENT 

A public hearing on the proposal was held in Austin on March 20,2007 at the TCEQ. No comments 

were received at the public hearing. The commission received written comments from the EPA and 

Eternal Springs Wellness during the public comment period, which closed on March 26, 2007. 

EPA suggested modifications to the adopted rules as stated in the RESPONSE TO COMMENTS section 

of this preamble, and commented that they appreciate efforts made to update definitions and references in 

Chapter 101 that are changing due to the reorganization of Chapter 117. 

RESPONSE TO COMMENTS 

Eternal Springs Wellness comn~ented that they oppose delaying the plan until 201 8 and would like to see 

cleaner air now. Eternal Springs Wellness commented that they would like to see the implementation of 

California standards and VOC storage tankldegassing regulations strengthened and implemented by 

January 1,2009. 

The comn~ission appreciates the commenters' interest in air quality. The comments do uot relate to 

the proposed Chapter 101 revisions, and no changes to the rule have beer1 made in response to 

them. 

EPA noted that since $101.23 1s no longer part of the federally approved regulations in the Texas SP, 

they would be unable to appr-ove the proposed administrative changes to this section. 
Texas Comm~ssion on Environmental Quality 

Chapter 10 1 - General Ail- Quality Rules 

Rule Project No. 2006-053-10 1 -IJR 

Page 10 

The comn~ission agrees that $1 01.23 is not part of the federally approved regulations in the Texas 

SIP. The can~rnissio~l applies the co~lditions of'this section either througll otller r~iles of the 

commission or thro~lgh individaal permits, aocl the proposecl amendments to 5101.23 have not been 

adopted. 

EPA noted that, Lo be included In the Texas SII', the Alternate Einlss~on Reduct~on Pol~cy would need to 

be developed in accordance with EPA's gu~dance on economlc incent~ve programs, as well as meet 

applicable Clean Air Act reclit~rements 

The cornnlissio~~ is not currel~tly consiclcring wl~ctl~er to adopt any rules regarding an alternate 

emission rccluction policy. 

EPA commented that $101.302(d)(I)(A) incorrectly references $1 17.3310, since emission reduction 

credits (ERCs) only apply to nonattainment areas. 

The rule has I~ccn revisecl to rcnlovc the rrfcrcncc to $117.3310. 

EPA commented that there is an ~nconsistency in $101.306(b)(3) with Figure 30 TAC $101.306(b)(3) and 

$101.376(d)(2) with Figure 30 TAC 9 101.376(d)(2)(A). Sections 101.306(b)(3) and 101.376(d)(2) allow 

the use of credits for con~pllance with $1 17.3 123 but the section is not included in the figures Figure: 30 

TAC 9 10 1.306(b)(3) and Figure: 30 TAC 9 10 1.376(d)(2)(A). 
Texas Commission on Environmental Quality 

Chapter 101 - General Air Quality Rules 

Rule Project No. 2006-053-1 0 1 -PR 

Page 11 

The 1-11le has been revised to remove the reference to $117.3123 fro111 $101.306(b)(3). Section 

117.9800 allows ERCs and discrete emission reduction credits (DERCs) to be used for alternative 

compliance with $117.3123. However, the equation to determine compliance to the source cap in 

$117.3123 is different from the equations in Figure 30 TAC §101.306(b)(3) and Figure 30 TAC 

$lOl.376(rl)(2)(A)(i). For compliance with $117.3123, the equations in $117.3123 are required to be 

used in place of Figure 30 TAC $101.306(b)(3) or Figure 30 TAC $101.376(d)(2)(A)(i). 

EPA con~n~ented that Figure 30 TAC $101.306(b)(3) does not reference the maximum daily cap 

requirements found in $10 1.306(b)(2). 

The rule has been revised to include references to both the 30-day rolling average and the 

lnaxi~num daily cap average requirements for system caps and source caps. 

EPA cornmellted that Figure 30 TAC $ 101.376(d)(2)(A)(ii) incorrectly references $5 1 17.123(b)(l), 

117.223(b)(1), 117.323(b)(l), and 117.423(b)(I), which refer to rolling 30-day average emission caps 

instead of maximum daily caps. 

The rule has been revised to cl~ange the citations to $$117.123(b)(2), 117.223(b)(2), 117.323(b)(2) 

and 11 7.423(b)(2). 
STAFF

RECOMMENDATIONS
CHAPTER 10 1 : GENERAL AIR QUALITY RULES 

SUBCHAPTER A: GENERAL RULES 

$101.1 

$101 .I. Definitions. 

Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules of the 

commission, the terms used by the commission have the meanings commonly ascribed to them in the 

field of air pollution control. In addition to the terms that are defined by the TCAA, the following terms, 

when used in the air quality rules in this title, have the following meanings, unless the context clearly 

indicates otherwise. 

(1) Account--For those sources required to be permitted under Chapter 122 of this title 

(relating to Federal Operating Permits Program), all sources that are aggregated as a site. For all other 

sources, any combination of sources under common ownership or control and located on one or more 

contiguous properties, or properties contiguous except for intervening roads, railroads, rights-of-way, 

wate~ways, or similar divisions. 

(2) Acid gas flare--A flare used exclusively for the incineration of hydrogen sulfide and 

other acidic gases derived from natural gas sweetening processes. 

(3) Agency establislletl facility icle~~tificatioil number--For the purposes of Subchapter 

F of this chapter (relating to Elnissions Events and Scheduled Maintenance, Startup, and Shutdown 

Activities), a unique alphanumeric code required to be assigled by the ownel- or operator of a regulated 

entity that the emission inventory reporting requirements of S, 101.10 of this ~itle (relating to Emissions 

Invento~y Requirements) are applicable to each facility at that regulated entity. 
(4) Ambient air--That portion of the atmosphere, external to buildings, to which the 

general public has access. 

(5) Background--Background concentration, the level of air contaminants that cannot be 

reduced by controlling emissions from man-made sources. It is determined by measuring levels in nonurban arcas. 

(6) Boiler--Any combustion equipment fired with solid, liquid, and/or gaseous fuel used 

lo produce steam or to heat water. 

(7) Capture system--All equipment (including, but not limited to, hoods, ducts, fans. 

booths, ovens, dryers, etc.) that contains, collects, and transports an air pollutant to a control device. 

(8) Captured facility--A manufacturing or production facility that generates an industrial 

solid waste or l~azardous waste that is routinely stored, processed, or disposed of on a shared basis it1 an 

integrated waste inanagement unit owned, operated by, and located within a contiguous manufacturing 

complex. 

(9) Carbon adsorber--An add-on control device that uses activated carbon to adsorb 

volatile organic con~pounds from a gas stream. 

(10) Carbon adsorption system--A carbon adsorber with an inlet and outlet for exhaust 

gases and a system to regenerate the saturated adsorbent. 
(1 1) Coating--A material applied onto or impregnated into a substrate for protective, 

decorative, or functional purposes. Such materials include, but are not limited to, paints, varnishes, 

sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings. 

(12) Cold solvent cleaning--A batch process that uses liquid solvent to remove soils 

from the surfaces of parts or to dry the parts by spraying, brushing, flushing, and/or immersion while 

maintaining the solvent below its boiling point. Wipe cleaning (hand cleaning) is not included in this 

definition. 

(13) Combustion unit--Any boiler plant, furnace, incinerator, flare, engine, or other 

device or system used to oxidize solid, liquid, or gaseous fuels, but excluding motors and engines used in 

propelling land, water, and air vehicles. 

(14) Combustion turbine--Any gas turbine system that is gas and/or liquid fuel fired 

with or without power augmentation. This unit is either attached to a foundation or is portable equipment 

operated at a specific minor or major source for more than 90 days in any 12-month period. Two or more 

gas turbines powering one shaft will be treated as one unit. 

(1 5) Commercial hazardous waste management facility--Any hazardous waste 

management facility that accepts hazardous waste or polychlorinated biphenyl coillpounds for a charge, 

except a captured facility that disposes only waste generated on-site or a facility that accepts waste only 

from other facilities owned or effectively conh-olled by the same person. 

(I 6) Co~nmercial incinerator--An incinerator used to dispose of waste material from 

retail and wholesale trade eslablishments. 
(1 7) Commercial medical waste incinerator--A facility that accepts for incineration 

medical waste generated outside the property boundaries of the facility. 

(18) Component--A piece of equipment, including, but not limited to, pumps, valves, 

compressors, and pressure relief valves that has the potential to leak volatile organic compounds. 

(19) Condensate--L~qu~ds that result lio~n the coollng andlor pressure changes of 

produced natural gas. Once these l~qulds arc processed at gas plants or rerlnencs or In any other manner, 

they are no longer considered condensates. 

(20) Construction-demolition waste--Waste resulting from construction or demolition 

projects. 

(21) Control system or control device--Any part, chemical, machine, equipment, 

contrivance. or con~bination of same, used to destroy, eliminate, reduce, or control the emission of air 

contaminants lo the atmosphere. 

(22) Conveyorized degreasing--A solvent cleaning process that uses an automated parts 

handling system, typically a conveyor, to autoniatically provide a continuous supply of parts to be cleaned 

or dried using either cold solvent or vaporized solvent. A conveyorized degreasing process is fully 

enclosed except for the conveyor inlet and exit portals. 

(23) Criteria pollutant or standard--Any pollutant for which there is a national ambient 

air quality standard established under 40 Code of Federal Regulations Part 50. 
(24) Custody transfer--The transfer of produced crude oil andlor condensate, after 

processing and/or treating in the producing operations, from storage tanks or automatic transfer facilities 

to pipelines or any other forms of transportation. 

(25) De nrininris impact--A change in ground level concentration of an air contaminant 

as a result of the operation of any new major stationary source or of the operation of any existing source 

that has undergone a major modification that does not exceed the following specified amounts. 

Figure: 30 TAC §101.1(25) 

(26) Domestic wastes--The garbage and rubbish nomially resulting from the functions of 

life within a residence. 

(27) Emissions banking--A system for recording elnissions reduction credits so they 

may be used or transferred for future use. 

(28) Emissions event--Any upset event or unscheduled ma~ntenance, startup, or 

shutdo~\a activity, fi-om a common cause that results in unaulhorized en~issions of air contaminants fkom 

one or more emissions points at a regulated entlty. 

%HOUR 

0.5 mg/m3 

24-HOUR 

5 pg/m3 

5 pg/m3 

AIR CONTAMINANT 

Inhalable Particulate Matter (PMlo) 

Sulfur Dioxide 

Nitrogen Dioxide 

Carbon Monoxide 

ANNUAL 

I .O pg/m3 

1.0 pg/m3 

1 .O pg/m3 

3-HOUR 

25 pg/m3 

1-HOUR 

2 mg/m3 
(29) Emissions reduction credit--Any stationary source emissions reduction that has 

been banked in accordance with Chapter 101, Subchapter H, Division 1 of this title (relating to Emission 

Credit Banking and Trading). 

(30) Emissions reduction credit certificate--The certificate issued by the executive 

director that indicates the amount of qualified reduction available for use as offsets and the length of time 

thc rccluct~on is eligible for use. 

(3 1) Emissions unit--Any part of a statlonary source that emits, or would have the 

potentla1 to cmlt, any pollutant subject to regulation under the Federal Clean AI~ Act. 

(32) Excess opacity event--When an opacity reading is equal to or exceeds 15 additional 

percentage points above an applicable opacity limit, averaged over a six-minute period. 

(33) Exempt solvent--Those carbon con~pounds or mixtures of carbon compounds uscd 

:IS solvents that have been excluded fi-om the def nition of' volatile organlc compound. 

(34) External floating roof--A cover or roof in an open top tank that rests upon or is 

floated upon the liquid being contained and is equipped with a single or double seal to close the space 

between the roof edge and tank shell. A double seal consists of two con~plete and separate closure seals, 

onc above the otlicr, containing an enclosed space between them. 

(35) Federal motor vehicle regulation--Control of Air Pollution from Motor Vehicles 

and Motor Vehicle Engines, 40 Code of Federal Regulations Part 85. 
(36) Federally enforceable--All limitations and conditions that are enforceable by the 

United States Environmental Protection Agency administrator, including those requirements developed 

under 40 Code of Federal Regulations (CFR) Parts 60 and 61; requirements within any applicable state 

implementation plan (SIP); and any permit requirements established under 40 CFR $52.2 1 or under 

regulations approved under 40 CFR Part 5 1, Subpart 1, including operating permits issued under the 

approved program that is incorporated into the SIP and that expressly requires adherence to any permit 

issued under such program. 

(37) Flare--An open combustion unit (i.e., lacking an enclosed combustion chamber) 

whose combustion air is provided by uncontrolled ambient air around the flame, and that is used-as a 

control device. A flare may be equipped with a radiant heat shield (with or without a refractory lining), 

but is not equipped with a flame air control damping system to control the airlfuel mixture. In addition, a 

flare may also use auxiliary fuel. The combustion flame may be elevated or at ground level. A vapor 

combustor, as defined in this section, is not considered a flare. 

(38) Fuel oil--Any oil meeting the American Society for Testing and Materials (ASTM) 

specifications for fuel oil in ASTM D396-01, Standard Specifications for Fuel Oils, revised 2001. This 

includes fuel oil grades 1, 1 (Low Sulf~~r), 2,2 (LOW Sulfur), 4 (Light), 4, 5 (Light), 5 (Heavy), and 6. 

(39) Fugitive emission--Any gaseous or particulate contaminant entering the atmosphere 

that could not reasonably pass through a stack, cllinx~ey, vent, or other f~~nctionally equivalent opening 

designed to direct or control its flow. 
(40) Garbage--Solid waste consisting of putrescible animal and vegetable waste 

~naterials resulting from the handling, preparation, cooking, and consumption of food, including waste 

materials from markets, storage facilities, and handling and sale of produce and other food products. 

(41) Gasoline--Any petroleum distillate having a Reid vapor pressure of four pounds per 

square inch (27.6 kilopascals) or greater that is produced for use as a motor fuel, and is commonly called 

gasoline. 

(43) Hazardous wastes--Any sol~d waste ~dent~fied or I~sted as a hazardous waste by thc 

adm~n~stratorf the Un~ted States Env~ronmental Protect~on Agency under the federal Sol~d Waste 

D~sposal Act, as amended by Resource Conservation and Recovery Act, 42 United States Code, 656901 

et sey , as amended. 

(43) Heatset (used in offset lithographic printing)--Any operation where heat is 

required to evaporate ink oil from the printing ink. Hot air dryers are used to dellver the heat. 

(44) High-bakc coatings--Coat~ngs des~gned to cure at temperatures above 194 degrees 

Fahrcnhe~l. 

(45) High-volume low-prcssurc spray guns--Equipment used to apply coatings by 

means of a spray gun that operates between 0.1 and 10.0 pounds per square ~nch gauge alr pressure 

measured at the air cap. 

(46) Incinerator--An enclosed con~bustion apparatus and attachments that is used in the 

process of burning wastes for tlie primary purpose of reducing its volume and weight by removing thc 
combustibles of the waste and is equipped with a flue for conducting products of combustion to the 

atmosphere. Any combustion device that burns 10% or more of solid waste on a total British thermal unit 

(Btu) heat input basis averaged over any one-hour period is considered to be an incinerator. A combustion 

device without instrumentation or methodology to determine hourly flow rates of solid waste and burning 

1.0% or more of solid waste on a total Btu heat input basis averaged annually is also considered to be an 

incinerator. An open-trench type (with closed ends) combustion unit may be considered an incinerator 

when approved by the executive director. Devices burning untreated wood scraps, waste wood, or sludge 

from the treatment of wastewater from the process mills as a primary fuel for heat recovery are not 

included under this definition. Combustion devices permitted under this title as combustion devices other 

than incinerators will not be considered incinerators for application of any rule within this title provided 

they are installed and operated in compliance with the condition of all applicable permits. 

(47) Industrial boiler--A boiler located on the site of a facility engaged in a 

manufacturing process where substances are transformed into new products, including the component 

parts of products, by mechanical or chemical processes. 

(48) Industrial furnace--Cement kilns; lime kilns; aggregate kilns; phosphate kilns; coke 

ovens; blast furnaces; smelting, melting, or refining furnaces, including py-ometallurgical devices such as 

cupolas, reverberator furnaces, sintering machines, roasters, or foundry furnaces; titanium dioxide 

chloride process oxidation reactors; methane reforming furnaces; pulping recovery furnaces; con~bustion 

devices used ill the recoveiy of sulfur values from spent sulfuric acid; and other devices the con~mission 

may list. 

(49) Ii~dustrial solid waste--Solid waste resulting from, or incidental to, any process of 

industry or ma~~ufacturing, or mining or agricultural operations, classified as follows. 
(A) Class 1 industrial solid waste or Class 1 waste is any industrial solid waste 

designated as Class 1 by the executive director as any industrial solid waste or mixture of industrial solid 

wastes that because of its concentration or physical or chemical characteristics is toxic, corrosive, 

flammable, a strong sensitizer or irritant, a generator of sudden pressure by decomposition, heat, or other 

means, and may pose a substantial present or potential danger to human health or the environment when 

in~properly processed, stored, transported, or otherwise managed, including hazardous industrial waste, as 

defined in $335.1 and $335.505 of this title (relating to Definitions and Class 1 Waste Determination). 

(R) Class 2 industrial solid waste is any individual solid waste or combination of 

industrial solid wastes that cannot be described as Class 1 or Class 3, as defined in $335.506 of this title 

(relating to Class 2 Waste Determination). 

(C) Class 3 industrial solid waste is any inert and essentially insoluble industrial 

solid waste, including materials such as rock, brick, glass, dirt, and certain plastics and rubber, etc., that 

are not read~ly decomposable as defined in $335.507 of this title (relaling to Class 3 Waste 

Determination). 

(50) Internal floating cover--A cover or floating roof in a fixed roof tank that rests upon 

or is floated upon the liquid being contained, and is equipped with a closure seal or seals to close the 

space between the cover edge and tank shell. 

(5 1) Leak--A volatile organic compound concentration greater than 10,000 parts per 

nlillion by volume or- the amount specified by applicable rule, whichever is lower; or the dripping or 

exuding of process fluid based on sight, smell, or sound. 
(52) Liquid fuel--A liquid combustible mixture, not derived from hazardous waste, with 

a heating value of at least 5,000 British thermal units per pound. 

(53) Liquid-mounted seal--A primary seal mounted in continuous contact with the 

liquid between the tank wall and the floating roof around the circumference of the tank. 

(54) Maintenance area--A geographic region of the state previously designated 

nonattainment under the Federal Clean Air Act Amendments of 1990 and subsequently redesignated to 

attainment subject to the requirement to develop a maintenance plan under 42 United States Code, 

37505a. The following are tlie maintenance areas within tlie state: 

(A) Victoria Ozone Maintenance Area 60 (Federal Register (FR) 12453) - 

Victoria County; and 

(B) Collin County Lead Maintenance Area (64 FR 55421) - Portion of Collin 

County. Eastside: Starting at the intersection of South Fifth Street and the fence line approximately 1,000 

feet south of the Exide property line going north to the intersection of South Fifth Street and Eubanks 

Street; Northside: Proceeding west on Eubanks to the Burlington Railroad tracks; Westside: Along the 

Burlington Railroad tracks to the fence line approxin~ately 1,000 feet south of the Exide property line; 

Southside: Fence line approximately 1,000 feet south of the Exide property line. 

(55) Maintenance plan--A revision to the applicable state iinplementation plan, meeting 

the requirements of 42 United States Code, 57505a. 
(56) Marine vessel--Any watercraft used, or capable of being used, as a means of 

transportation on water, and that is constructed or adapted to carry, or that carries, oil, gasoline, or other 

volatile organlc liquid in bulk as a cargo or cargo residue. 

(57) Mechanical shoe seal--A metal sheet that is held vertically against the storage tank 

wall by spr~ngs or weighted levers and is connected by braces to the floating roof. A flexible coated fabr~c 

(envelope) spans the annular space between the metal sheet and the floating roof. 

(58) Medical waste--Waste materials ldentlfied by the Department of State Health 

Scrv~ccs as -'special waste from health care-related facilities" and those waste materials commingled and 

discarded w~th spec~al waste from health care-related facii~ties. 

(59) Metropolitan Planning Organization--That organization desigmated as being 

responsible, together with the state, for conducting the continuing, cooperative, and comprehensive 

planning process under 23 United States Code (USC), rj 134 and 49 USC, 5 1607. 

(60) Mobile emissions reduction credit--The credit obtained from an enforceable, 

permanent, quantifiable, and surplus (to other federal and state rules) eniissions reduction generated by a 

mobile source as set forth in Chapter 114, Subchapter F of this title (relating to Vehicle Retirement and 

Mobile Emission Reduction Credits), and that has been banked in accordance with Subchapter H, 

Division 1 of this chapter. 

(61) Motor vehicle--A self-propelled vehicle designed for transporting persons or 

property on a stl-eet or highway. 
(62) Motor vehicle fuel dispensing facility--Any site where gasoline is dispensed to 

motor vehicle fuel tanks from stationary storage tanks. 

(63) Municipal solid waste--Solid waste resulting from, or incidental to, municipal, 

community, commercial, institutional, and recreational activities, including garbage, rubbish, ashes, street 

cleanings, dead animals, abandoned automobiles, and all other solid waste except industrial solid waste. 

(64) Municipal solid waste facility--All contiguous land, structures, other 

appurtenances, and improvements on the land used for processing, storing, or disposing of solid waste. A 

facility may be publicly or privately owned and may consist of several processing, storage, or disposal 

operational units, e.g., one or more landfills, surface impoundments, or combinations of them. 

(65) Municipal solid waste landfill--A discrete area of land or an excavation that 

receives household waste and that is not a land application unit, surface impoundment, injection well, or 

waste pile, as those terms are defined under 40 Code of Federal Regulations $257.2. A municipal solid 

waste landfill (MSWLF) unit also may receive other types of Resource Conservation and Recovery Act 

Subtitle D wastes, such as commercial solid waste, nonhazardous sludge, conditionally exempt smallquantity generator waste, and indush-ial solid waste. Such a landfill may be publicly or privately owned. 

An MSWLF unit may be a new MSWLF unit, an existing MSWLF unit, or a lateral expansion. 

(66) National an~bien t air quality standard--Those standards established under 42 

United States Code, $7409, including standards for carbon monoxide, lead, nitrogen dioxide, ozone, 

iilhalable particulate matter, and sulf~~r dioxide. 
(67) Net ground-level concentration--The concentration of an air contaminant as 

measured at or beyond the property boundary minus the representative concentration flowing onto a 

property as measured at any point. Where there is no expected influence of the air contaminant flowing 

onto a property from other sources, the net ground level concentration may be determined by a 

measurement at or beyond the property boundary. 

(68) New source--Any stationary source, the construction or modification of which was 

commenced after March 5, 1972. 

(69) Nitrogen oxitles (NOx)--'The sum of the nltrlc ox~de and nitrogen dioxide In the flue 

gas or enilssion polnt, collectively cxpressed as nltrogen dioxide. 

(70) Nonattainment area--A defined region within the state that is designated by the 

United States Environmental Protection Agency (EPA) as failing to meet the national ambient air quality 

standard for a pollutant for which a standard exlsts. The EPA will designate the area as nonattainment 

under the provisions of 42 United States Code, $7407(d). For the official list and boundaries of 

nonattalninent areas, see 40 Code of Federal Kegulations Part 81 and pertinent Federal Register (FR) 

notices. The following areas comprise the nonattainment areas within the state for all national ambient allquality standards (NAAQS). EPA has indicated that it will revoke the one-hour ozone standard in full, 

including the associated designations and classifications, on June 15, 2005, which is one year following 

the effective date of the designations for the eight-hour NAAQS of June 15, 2004. 

(A) Carbon monox~de (CO). El Paso CO nonattalnment area (56 FK 56694)-- 

Class~fied as a Moderate CO nonatta~niiient area with a design value less than or equal to 12.7 parts per 

m~ll~on. Port~on of El Paso County Port1011 of the c~ty l~m~ts of El Paso: That portion of thc C~ty of El 
Paso bounded on the north by Highway 10 from Porfirio Diaz Street to Raynolds Street, Raynolds Street 

from Highway 10 to the Southern Pacific Railroad lines, the Southern Pacific Railroad lines from 

Raynolds Street to Highway 62, Highway 62 from the Southern Pacific Railroad lines to Highway 20, and 

Highway 20 from Highway 62 to Polo Inn Road. Bounded on the'east by Polo Inn Road from Highway 

20 to the Texas-Mexico border. Bounded on the south by the Texas-Mexico border from Polo Inn Road to 

Porfirio Diaz Street. Bounded on the west by Porfirio Diaz Street from the Texas-Mexico border to 

Highway 10. 

(B) Inhalable particulate matter (PMlo). El Paso PMlo nonattainment area (56 FR 

56694)--Classified as a Moderate PMlo nonattainment area. Portion of El Paso County that comprises the 

El Paso city limit boundaries as they existed on November 15, 1990. 

(C) Lead. No designated nonattainment areas. 

(D) Nitrogen dioxide. No designated nonattainment areas. 

(E) Ozone (one-hour). 

(i) Houston-Galveston-Brazoria (HGB) one-hour ozone nonattainment 

area (56 FR 56694) - Classified as a Severe-17 ozone nonattainment area. Consists of Brazoria, 

Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller Counties. 

(ii) El Paso one-hour ozone nonattainment area (56 FR 56694) - 

Classified as a Serious ozone nonattainrnent area. Consists of El Paso County. 
(iii) Beaumont-Port Arthur (BPA) one-hour ozone nonattainment area 

(69 FR 16483) - Classified as a Serious ozone nonattainment area. Consists of Hardin, Jefferson, and 

Orange Counties. 

(iv) Dallas-Fort Worth one-hour ozone nonattainment area (63 FR 8128) 

- Classified as a Serlous ozone nonattainment area. Consists of Collin, Dallas, Denton, and Tarrant 

Counties. 

(F) Ozone (eight-hour). 

(i) I-ICiB eight-hour ozone nonattainment area (69 FR 23936) - Classified 

as a Moderate ozone nonattainrnent area. Consists of Brazoria, Chambers, Fort Bend, Galveston, Harris, 

L,iberty, Montgomery, and Waller Counties. 

(li) BPA eight-hour ozone nonattalnment area (69 FR 23936) - 

Classified as a Marginal ozone nonattainment area. Consists of I Iardin, .Iefferson, and Orange Counties. 

(iii) Dallas-Fort Worth eight-hour ozone nonattainment arca (69 FR 

2.1936) - Classified as a Moderate ozone nonattainment area. Consists of Collin, Dallas, Denton, Ellis, 

Johnson, Kaufinan, Parker, Rockwall, and Tarrant Counties. 

(iv) San Antonio eight-hour ozone nonattainment area (69 FR 23936) - 

Classified ~lllder the Federal Clean Air Act, Title 1, Part D, Subpart 1 (42 United States Code, $7502), 

nonattainment deferred to September 30, 2005, or as extended by EPA. 

(G) Sulfur dioxide. No designated nonattainment areas. 
(7 1) Non-reportable emissions event--Any emissions event that in any 24-hour period 

does not result in an unauthorized emission from any emissions point equal to or in excess of the 

reportable quantity as defined in this section. 

(72) Opacity--The degree to which an emission of air contaminants obstructs the 

transmission of light expressed as the percentage of light obstructed as measured by an optical instrument 

or trained observer. 

(73) Open-top vapor degreasing--A batch solvent cleaning process that is open to the 

air and that uses boiling solvent to create solvent vapor used to clean or dry parts through condensation of 

the hot solvent vapors on the paits. 

(74) Outdoor burning--Any fire or smoke-producing process that is not conducted in a 

combustion unit. 

(75) Particulate matter--Any material, except uilcombined water, that exists as a solid 

or liquid in the atmosphere or in a gas stream at standard conditions. 

(76) Particlilate matter emissions--All finely-divided solid or liquid material, other than 

uncombined water, emitted to the ambient air as measured by Uniled States Environmental Protection 

Agency Reference Method 5, as specified at 40 Code of Federal Regulations (CFR) Part 60, Appendix A, 

modified to iilclude particulate caught by an impinger train; by an equivalent or alternative method, as 

spec~fied at 40 CFR Part 5 1; or by a test method specified in an approved state implementalion plan. 
(77) Petroleum refinery--Any facility engaged in producing gasoline, kerosene, 

distillate fuel oils, residual fuel oils, lubricants, or other products through distillation of crude oil, or 

through the redistillation, cracking, extraction, reforming, or other processing of unfinished petroleum 

derivatives. 

(78) PM,,,--Particulate matler with an aerodynamic diameter less than or equal to a 

nominal ten micrometers as measured by a reference method based on 40 Code of' Federal Regulations 

(CFR) Part 50, Appendix J, and designated in accordance with 40 CFR Part 53, or by an equivalent 

method designated with that Par1 53. 

(79) PMlo emissions--Finely-divided solid or liquid material with an aerodynamic 

diameter less than or equal to a nominal tell micron~eters emitted to the ambient air as measured by an 

applicable reference method, or an equivalent or alternative method specified in 40 Code of Federal 

Regulations Pan 5 1, or by a test method specified in an approved state implementation plan. 

(80) I'olychlorinated biphenyl compound--A compound subject to 40 (:ode of Fcdcral 

Regulations Part 761. 

(81) Process or processes--Any action, operation, or treatment embracing chemical, 

commercial, industrial, or manufacturing factors such as conlbustion units, kilns, stills, dryers. roasters, 

and equipment used in connection therewith, and all other methods or forms of manufacturing or 

processing that may enlit smoke, particulate matter, gaseous matter, or visible emissions. 

(82) l'rocess weight pcr hour--"I'rocess weight" is the total weight of all materials 

introduced or recirculated into any specific process that may cause any discharge of air conta~liinants into 

the atmosphere. Solid fuels charged into the process will be considered as part of the process weight, but 
liquid and gaseous fuels and combustion air will not. The "process weight per hour" will be derived by 

dividing the total process weight by the number of hours in one complete operation from the beginning of 

any given process to the completion thereof, excluding any time during that the equipment used to 

conduct the process is idle. For continuous operation, the "process weight per hour" will be derived by 

dividing the total process weight for a 24-hour period by 24. 

(83) Property--All land under common control or ownership coupled with all 

improvements on such land, and all fixed or movable objects on such land, or any vessel on the waters of 

this state. 

(84) Reasonable further progress--Annual incremental reductions in en~issions of the 

applicable air contaminant that are sufficient to provide for attainment of the applicable national ambient 

air quality standard in the designated nonattainment areas by the date required in the state implementation 

plan. 

(85) Regulated entity--All regulated units, facilities, equipment, structures, or sources at 

one street address or location that are owned or operated by the same person. The tern1 includes any 

property under conlmon ownership or control identified in a permit or used in conjunction with the 

I-egulated activity at the same street address or location. Owners or operators of pipelines, gathering lines, 

and flowlines under conlinon ownership or control in a particular county nlay be treated as a single 

regulated entity for puiyoses of assessment and regulation of emissions events. 

(86) Remote rcservoir cold solvent cleaaiag--Any cold solveilt cleaning operation in 

which liquid solvent is puinped to a sink-like work area that drains solveilt back into an ellclosed 

contaii~er while parts ai-e being cleaned, allowing no solvent to pool in the work ai-ea. 
(87) Reportable emissions event--Any emissions event that in any 24-hour period, 

results in an unauthorized emission from any emissions point equal to or in excess of the reportable 

quantity as defined in this section. 

(88) Reportable quantity (RQ)--Is as follows: 

(A) for individual air contaminant compounds and specifically listed mlxtures by 

name or C'hemtcal Abstracts Service ((:AS) number, either: 

(i) the lowest of the quantities: 

(I) listed In 40 Code of Federal Regulations (CFR) Part 302, 

'l'ablc 302.4, the coliunn "final RQ"; 

(11) listed in 40 CFR Part 355, Appendix A, the column 

"Reportable Quantity"; or 

(111) listed as follows: 

(-a-) acetaldehyde - 1,000 pounds, except in the 

Houston-Galveslon-Hrazor~a (HGB) and Beaumont-Port Arthur (BPA) ozone nonatlainment areas as 

defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds; 

(-b-) butanes (any isomer) - 5,000 pounds; 
(-c-) butenes (any isomer, except 1,3-butadiene) - 5,000 

pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and 

(iii) of this section, where the RQ must be 100 pounds; 

(-d-) carbon monoxide - 5,000 pounds; 

(-e-) 1 -chloro-1 , 1 -difluoroethane (HCFC- 142b) - 5,000 

pounds; 

(-f-) ch1osodifluo1-omethane (HCFC-22) - 5,000 pounds; 

(-g-) 1 -chloro-1 -fluoroethane (HCFC-15 la) - 5,000 

pounds; 

(-h-) chlorofl~ioromethane (HCFC-3 1) - 5,000 pounds; 

(-i-) chloropentafluoroethane (CFC-115) - 5,000 pounds; 

(-j-) 2-chloro-l , l,l,2-tetrafluoroethane (HCFC- 124) - 

5,000 pounds; 

(-k-) 1 -cl~loso- 1,1,2.2 tetrafluoroethane (HCFC-124a) - 

5,000 pounds; 

(-I-) 1,1.1,2,3,4,4,5,5,5-decafl~1oropenta11e (HFC 43- 

10mee) - 5,000 pounds; 
(-m-) decanes (any isomer) - 5,000 pounds; 

(-n-) I, 1 -dichloro- 1 -fluoroethane (I-ICFC- 14 1 b) - 5,000 

pounds; 

225ca) - 5,000 pounds; 

225cb) - 5,000 pounds; 

(-q-) 1,2-dichloro- 1, I ,2,2-tetrafluoroethane (CFR- I 14) - 

5,000 pounds; 

(-s-) 1,l- dichlorotet~afluoroethane (CFC- 1 14a) - 5,000 

pounds; 

5,000 pounds; 

(-t-) I, 1 -difluoroethane (HFC-152a) - 5,000 pounds; 

(-u-) difluoromethane (HFC-32) - 5,000 pounds; 
(-v-) ethanol - 5,000 pounds; 

(-w-) ethylene - 5,000 pounds, except in the HGB and 

BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ 

must be 100 pounds; 

(-x-) ethylfluoride (HFC- 16 1) - 5,000 pounds; 

(-y -) 1,1,1,2,3,3,3-heptafluoropropane (HFC-227ea); 

pounds; 

5,000 pounds; 

(-bb-) hexanes (any isomer) - 5,000 pounds; 

(-cc-) isopropyl alcohol - 5,000 pounds; 

(-dd-) mineral spirits - 5,000 pounds; 

(-ee-) octanes (any isomer) - 5,000 po~lnds; 
(-ff-) oxides of nitrogen - 200 pounds in ozone 

nonattainment, ozone maintenance, early action compact areas, Nueces County, and San Patricio County, 

and 5,000 pounds m all other areas of the state, which should be used instead of the RQs for nitrogen 

oxide and nitrogen dioxide provided in 40 CFR Part 302, Table 302.4, the column "final RQ"; 

(-gg-) pentachloroiluoroethane (CFR-I I 1) - 5,000 

pounds; 

5,000 pounds; 

(-I(-) pentafluc)roethm (MFC- 125) - 5,000 pounds; 

(-]I-) 1,1,2,2,3-pentafluoropropane (HFC-245ca) - 5,000 

pounds; 

5,000 pounds; 

pounds; 

5,000 pounds; 

(-nn-) pentanes (any isomer) - 5,000 pounds; 
(-00-) propane - 5,000 pounds; 

(-pp-) propylene - 5,000 pounds, except in the HGB and 

BPA ozone nonattainment areas as defined in paragraph (70)(E)(i) and (iii) of this section, where the RQ 

must be 100 pounds; 

(-qq-) I,] ,2,2-terachlorodifluoroethane (CFR -1 12) - 

5,000 pounds; 

5,000 pounds; 

pounds; 

pounds; 

5,000 pounds; 

(-vv-) l,l, 1 -trichloro- 2,2,2- trilfloroethane (CFC- I 13a) 

- 5,000 pounds; 
5,000 pounds; 

(-xx-) 1,1,1 -trifluoroethane (MFC-143a) - 5,000 pounds; 

(-yy-) tr~fluoromethane (HFC-23) - 5,000 pounds; or 

(-zz-) Loluene - 1,000 pounds, except In the HGB and 

BPA ozone nonatta~nment areas as defined In paragraph (70)(E)(1) and (111) of this section, where the RQ 

must be 100 pounds; 

(11) IS not listed In clause (1) of th~subparagraph, 100 pounds; 

(B) for mixtures of air contaniinant cotnpounds: 

(I) where the relative amount of ~nd~vidualir contaminant compounds 1s 

known through coninion process knowledge or prlol- engineerlng analys~s or testing, any amount of an 

indiv~dual a1r contariiinat~t conipound that equals 01- cxcccds tlie amount spcc~fied In subparagraph (A) of 

this paragraph; 

(ii) where the relative amount of indiv~dual air containinant conlpounds 

in subparagraph (A)(i) of this paragraph is not known, any aniount of tlie mixture that equals or exceeds 

the amount for any single air contaminant co~npound that is present in the mixture and listed in 

subparagraph (A)(i) of this paragraph; 
(iii) where each of the individual air contaminant compounds listed in 

subparagraph (A)(i) of this paragraph are known to be less than 0.02% by weight of the mixture, and each 

of the other individual air contaminant compounds covered by subparagraph (A)(ii) of this paragraph are 

known to be less than 2.0% by weight of the mixture, any total amount of the mixture of air contaminant 

compounds greater than or equal to 5,000 pounds; or 

(iv) where natural gas excluding carbon dioxide, water, nitrogen, 

methane, ethane, noble gases, hydrogen, and oxygen or air emissions from crude oil are known to be in an 

amount greater than or equal to 5,000 pounds or the associated hydrogen sulfide and mercaptans in a total 

amount greater than 100 pounds, whichever occurs first; 

(C) for opacity from boilers and combustion turbines as defined in this section 

fueled by natural gas, coal, lignite, wood, fuel oil containing hazardous air pollutants at a concentration of 

less than 0.02% by weight, opacity that is equal to 01. exceeds 15 additional percentage points above the 

applicable ,limit, averaged over a six-minute period. Opacity is the only RQ applicable to boilers and 

combustion turbines described in this paragraph; or 

(D) for facilities where air contaminant co~npounds are measured directly by a 

continuous emission monitoring system providing updated readings at a minimum 15-minute interval an 

amount, approved by the execulive director based on any relevant conditions and a screening model, that 

would be reported prior to ground level concentrations reaching at any distance beyond the closest 

regulated entity property line: 

(i) less than one-half of ally applicable ambient an. standards; and 
(ii) less than two times the concentration of applicable air emission 

limitations. 

(89) Rubbish--Nonputrescible solid waste, consisting of both combustible and 

noncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, 

furniture, rubber, plaslics, yard trimmings, leaves, and similar materials. Noncombustible rubbish 

includes glass, crockcry. tin cans, aluminum cans, metal furniture, and like lnalerials that will not burn at 

ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit). 

(90j Sclrctl~~letl maintcna~rce, startup, or shutdown activity--For activit~es with 

unauthorized emissions that are expected to exceed a reportable quantity (RQ), a scheduled maintenance, 

startup, or shutdown activity is an activity that the owner or operator of the regulated entity whether 

performing or otherwise affected by the activity, provides prior notice and a final report as required by 

5 10 1.2 1 1 of this title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and 

Kecordkeeping Kequirements); the notice or filial report includes the information required in 9 101.2 I I of 

this title; and thc actual ~~nauthorized cmissions from the activity do not excecd the emissions estimatcs 

submitted in the initial notification by niore than an RQ. For activities with i~nauthorized emissions that 

are not expected to, and do not, exceed an RQ, a scheduled maintenance, startup, or shutdown activity is 

one that is recorded as required by 9 10 1.2 1 1 of this title. Expected excess opacity events as described in 

$101,20I(e) of this title (relating to Emissions Event Reporting and Recordkeeping Requirements) 

resulting from scheduled maintenance, startup, or shutdown activities are those that provide prior notice 

(if required), and are recorded and reported as required by 5 101.2 1 1 of this title. 
(91) Sludge--Any solid or semi-solid, or liquid waste generated from a municipal, 

commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive of the 

treated effluent from a wastewater treatment plant; or air pollution control equipment. 

(92) Smoke--Small gas-born particles resulting from incomplete combustion consisting 

predominately of carbon and other combustible material and present in sufficient quantity to be visible. 

(93) Solid waste--Garbage, rubbish, refuse, sludge froin a waste water treatment plant, 

water supply treatment plant, or air pollution control equipment, and other discarded material, including 

solid, liquid, semisolid, or containerized gaseous material resulting from industrial, municipal, 

commercial, mining, and agricultural operations and from community and institutional activities. The 

term does not include: 

(A) solid or dissolved material in domestic sewage, or solid or dissolved material 

in imgation return flows, or industrial discharges subject to regulation by permit issued under the Texas 

Water Code, Chapter 26; 

(B) soil, dirt, rock, sand, and other natural or man-made inert solid materials used 

to fill land, if the object of the fill is to make the land suitable for the construction of surface 

improvements; or 

(C) waste materials that result from activities associated with the exploration, 

development, or production of oil or gas, or geothermal resources, and other substance or material 

regulated by the Railroad Commission of Texas under Natural Resources Code, $9 1.10 1, unless the 

waste, substance, or material results from activities associated with gasoline plants, natural gas liquids 
processing plants, pressure maintenance plants, or repressurizing plants and is hazardous waste as defined 

by the administrator of the United States Environmental Protection Agency under the federal Solid Waste 

Disposal Act, as amended by Resource Conservation and Recovery Act, as amended (42 United States 

Code, @6901 et seq.). 

(94) Sour crude--A crude oil that will emit a sour gas when in equilibrium at 

atmospheric pressure. 

(95) Sour gas--Any natural gas containing more than 1.5 grains of hydrogen sulfide per 

100 cubic feet, or more than 30 grains of total sulfur per 100 cubic feet. 

(96) Source--A point of origin of air contaminants, whether privately or publicly owned 

or operated. Upon request of a source owner, the executive director shall determine whether multiple 

processes emitting air contaminants from a single point of emission will be treated as a single source or as 

multiple sources. 

(97) Special waste from health care-related facilities--A solid waste that if improperly 

treated or handled, may serve to transmit infectious disease(s) and that is comprised of the following: 

animal waste, bulk blood and blood products, microbiological waste, pathological waste, and sharps. 

(98) Standard conditions--A condition at a temperature of 68 degrees Fahrenheit (20 

degrees Centigrade) and a pressure of 14.7 pounds per square inch absolute (101.3 kiloPascals). 

(99) Standard metropolitan statistical area--An area consisting of a county or one or 

more contiguous counties that is officially so designated by the United States Bureau of the Budget. 
(100) Submerged fill pipe--A fill pipe that extends from the top of a tank to have a 

maximum clearance of six inches (1 5.2 centimeters) from the bottom or, when applied to a tank that is 

loaded from the side, that has a discharge opening entirely submerged when the pipe used to withdraw 

liquid fiom the tank can no longer withdraw liquid in normal operation. 

(101) Sulfur compounds--All inorganic or organic chemicals having an atom or atoms 

of sulfur in their chemical structure. 

(102) Sulfuric acid mist/sulfuric acid--Emissions of sulfuric acid mist and sulfuric acid 

are considered to be the same air contaminant calculated as H2SO4 and must include sulfuric acid liquid 

mist, sulfur trioxide, and sulfuric acid vapor as measured by Test Method 8 in 40 Code of Federal 

Regulations Part 60, Appendix A. 

(1 03) Sweet crude oil and gas--Those crude petroleum hydrocarbons that are not "sour" 

as defined in this section. 

(104) Total suspended particulate--Particulate matter as measured by the method 

described in 40 Code of Federal Regulations Part 50, Appendix B. 

(105) Transfer efficiency--The amount of coating solids deposited onto the surface or a 

part of product divided by the total amount of coating solids delivered to the coating application system. 
(106) True vapor pressure--The absolute aggregate partial vapor pressure, measured in 

pounds per square inch absolute, of all volatile organic compounds at the temperature of storage, 

handling, or processing. 

(1 07) Unauthorized emissions--Emissions of any air contaminant except carbon dioxide, 

water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen that exceed any air emission 

limitation in a permit, rule, or order of the commission or as authorized by Texas Clean Air Act, 

$382.05 18(g). 

(108) Unplanned maintenance, startup, or shutdown activity--For activities with 

unauthorized emissions that are expected to exceed a reportable quantity or with excess opacity, an 

unplanned maintenance, startup, or shutdown activity is: 

(A) a startup or shutdown that was not part of normal or routine facility 

operations, is unpredictable as to timing, and is not the type of event normally authorized by permit; or 

(B) a maintenance activity that arises from sudden and unforeseeable events 

beyond the control of the operator that requires the immediate corrective action to minimize or avoid an 

upset or malfunction. 

(109) Upset event--An unplanned and unavoidable breakdown or excursion of a process 

or operation that results in unauthorized emissions. A maintenance, startup, or shutdown activity that was 

reported under §101.211 of this title (relating to Sched~lled Maintenance, Startup, and Shutdown 

Reporting and Recordkeeping Requirements), but had emissions that exceeded the reported amount by 
more than a reportable quantity due to an unplanned and unavoidable breakdown or excursion of a 

process or operation is an upset event. 

(1 10) Utility boiler--A boiler used to produce electric power, steam, or heated or cooled 

air, or other gases or fluids for sale. 

(1 1 1) Vapor combustor--A partially enclosed combustion device used to destroy volatile 

organic con~pounds by smokeless combustion without extracting energy in the form of process heat or 

steam. The combustion flame may be partially visible, but at no time does the device operate with an 

uncontrolled flame. Auxiliary fuel and/or a flame air control damping system that can operate at all times 

to control the aidfuel mixture to the combustor's flame zone, may be required to ensure smokeless 

combustion during operation. 

(1 12) Vapor-mounted seal--A primary seal mounted so there is an annular space 

underneath the seal. The annular vapor space is bounded by the bottom of the primary seal, the tank wall, 

the Iiquid surface, and the floating roof or cover. 

(1 13) Vent--Any duct, stack, chimney, flue, conduit, or other device used to conduct air 

contaminants into the atmosphere. 

(1 14) Visible emissions--Particulate or gaseous matter that can be detected by the human 

eye. The radiant energy from an open flame is not considered a visible emission under this definition. 

(1 15) Volatile organic compound--As defined in 40 Code of Federal Regulations 

$5 1.100(s), except $5 1.100(~)(2) - (4), as amended on November 29,2004 (69 FR 69290). 
1116) Volatile organic compound (VOC) water separator--Any tank, box, sump, or 

other container in which any VOC, floating on or contained in water entering such tank, box, sump, or 

other container, is physically separated and remo~ed from such water prior to outfall, drainage, or 

recovery of such water. 
SUBCHAPTER H: EMISSIONS BANKING AND TRADING 

DIVISION 1: EMISSION CREDIT BANKING AND TRADING 

$101.302, $101.306 

$101.302. General Provisions. 

(a) Applicable pollutants. Reductions of criteria pollutants, excluding lead, or precursors of 

criteria pollutants for which an area is designated nonattainment, may qualify as emission credits. 

Reductions of one pollutant may not be used to meet the requirements for another pollutant, unless urban 

airshed modeling demonstrates that one ozone precursor may be substituted for another, subject to 

executive director and United States Environmental Protection Agency (EPA) approval. 

(b) Eligible generator categories. The following categoles are eligible to generate emission 

credits: 

(1) facilities, including area sources; 

(2) mobile sources; and 

(3) any facility, including area sources, or mobile source associated with actions by 

federal agencies under $101.30 of this title (relating to Conformity of General Federal Actions to State 

Implementation Plans). 

(c) Emission credit requirements. 
(1) Emission reduction credits are certified reductions that meet the following 

requirements: 

(A) reductions must be enforceable, permanent, quantifiable, real, and surplus; 

(B) the certified reduction must be surplus at the time it is created, as well as 

when it is used; 

(C) in order to become certified, the reduction must have occurred after the most 

recent year of emissions inventory used in the state implementation plan (SIP); and 

(D) the facility's annual emissions prior to the reduction strategy must have been 

reported or represented in the emissions inventory used in the SIP. 

(2) Mobile emission reduction credits are certified reductions that meet the following 

requirements: 

(A) reductions must be enforceable, permanent, quantifiable, real, and surplus; 

(B) the certified reduction must be surplus at the time it is created, as well as 

when it is used; 

(C) in order to become certified, the reduction must have occurred after the most 

recent year of emissions inventory used in the SIP; 

(D) the mobile source's annual emissions prior to the emission credit application 

must have been represented in the emissions inventory used in the SIP; and 
(E) the mobile sources must have been included in the attainment demonstration 

baseline emissions inventory. 

(3) Emission reductions fi-om a facility or mobile source that are certified as emission 

credits under this division cannot be recertified in whole or in part as credits under another division within 

this subchapter. 

(d) Protocol. 

(1) All generators or users of emission credits shall use a protocol that has been submitted 

by the executive director to the EPA for approval, if existing for the applicable facility or mobile source, 

to measure and calculate baseline emissions. If the generator or user wishes to deviate from a protocol 

submitted by the executive director, EPA approval is required before the protocol can be used. Protocols 

must be used as follows. 

(A) Facilities subject to the emission specifications under $9 1 17.1 10, 1 17.21 0, 

117.310, 117.410, 117.1010, 117.1 110, 117.1210, 117.1310, 117.2010, or 117.2110 ofthis title (relating 

to Emission Specifications for Attainment Demonstration; Emission Specifications for Eight-Hour 

Attainment Demonstration; and Emission Specifications) shall quantify reductions in nitrogen oxide 

emissions using the testing and monitoring methodologies identified to show compliance with the 

emission specification. 

(B) Facilities subject to the requireinents under $9 1 15.1 12, 1 15.121, 1 15.122, 

115.162, 115.211, 115.212, 115.352, 115.421, 115.541, or 115.542 ofthis title (relating to Control 

Requirements; and Emission Specifications) shall quantify volatile organic compound reductions using 
the testing and monitoring methodologies identified to show compliance with the emission specifications 

or requirements. 

(C) If the executive director has not submitted a protocol for the applicable 

facility or mobile source to the EPA for approval, the following requirements apply: 

(i) the amount of emission credits from a facility or mobile source, in 

tons per year, will be determined and certified based on quantification methodologies at least as stringent 

as the methods used to demonstrate compliance with any applicable requirements for the facility or 

mobile source; 

(ii) the generator shall collect relevant data sufficient to characterize the 

facility's or mobile source's einissions of the affected pollutant and the facility's or mobile source's 

activity level for all representative phases of operation in order to characterize the facility's or mobile 

source's baseline emissions; 

(iii) facilities with continuous emissions monitoring systems or 

predictive emissions monitoring systems in place shall use this data in quantifying actual emissions; 

(iv) the chosen quantification protocol must be made available for public 

comment for a period of 30 days and must be viewable on the commission's Web site; 

(v) the chosen quantification protocol and any comments received during 

the public comment period shall be submitted to the EPA for a 45-day adequacy review; and 
(vi) quantification protocols shall not be accepted for use with this 

division if the executive director receives a letter objecting to the use of the protocol from the EPA during 

the 45-day adequacy review or the EPA adopts disapproval of the protocol in the Federal Register. 

(2) In the event that the monitoring and testing data required under paragraph (1) of this 

subsection is missing or unavailable, the facility may report actual emissions for that period of time using 

these listed methods in the following order of preference to determine actual emissions: 

(A) continuous monitoring data; 

(B) periodic monitoring data; 

(C) testing data; 

(D) manufacturer's data; 

(E) EPA Coinpilation of Air Pollution. Emission Factors (AP-42), September 

(F) material balance. 

(3) When quantifying actual emissions in accordance with paragraph (2) of this 

subsection, the generator shall use the most conservative method for replacing the missing data, submit 

the justification for not using the methods in paragraph (1) of this subsection, and submit the justification 

for the method used. 
(e) Credit certification. 

(1) The amount of emission credits in tons per year will be determined and certified, to 

the nearest tenth of a ton per year. 

(2) Applications for certification will be reviewed in order to determine the credibility of 

the reductions. Reductions determined to be creditable will be certified by the executive director. 

(3) The applicant will be notified in writing if the executive director denies the emission 

credit application. The applicant may submit a revised application in accordance with the requirements of 

this division. 

(4) If a facility's or mobile source's actual emissions exceed its allowable emission limit, 

reductions of emissions exceeding the limit may not be certified as emission credits. 

(5) Applications for certification of emission credit from reductions quantified under 

subsection (d)(l)(C) of this section may only be approved upon completion of the public comment period. 

(fj' Geographic scope. Except as provided in 9: 101.305 of this title (relating to Emission 

Reductions Achieved Outside the United States), only emission reductions generated in nonattainment 

areas call be certified. An emission credit must be used in the nonattainment area in which it is generated 

unless the user has obtained prior written approval of the executive director and the EPA; and 
(I) a demonstration has been made and approved by the executive director and the EPA 

to show that the emission reductions achieved in another county or state provide an improvement to the 

air quality in the county of use; or 

(2) the emission credit was generated in a nonattainment area that has an equal or higher 

nonattainment classification than the nonattainment area of use, and a demonstration has been made and 

approved by the executive director and the EPA to show that the emissions from the nonattainment area 

where the emission credit is generated contribute to a violation of the national ambient air quality 

standard in the nonattainment area of use. 

(g) Recordkeeping. The generator shall maintain a copy of all notices and backup information 

submitted to the registry for a minimum of five years. The user shall maintain a copy of all notices and 

backup information submitted to the credit registry from the beginning of the use period and for at least 

five years after. The user shall also make such records available upon request to representatives of the 

executive director, EPA, and any local enforcement agency. The records must include, but not necessarily 

be limited to: 

(1) the name, emission point number, and facility identification number of each facility or 

any other identifying number for each mobile source using emission credits; 

(2) the amount of emission credits being used by each facility or mobile source; and 

(3) the specific number, name, or other identification of emission credits used for each 

facility or mobile source. 
(h) Public information. All information submitted with notices, reports, and trades regarding the 

nature, quantity, and sales price of emissions associated with the use, generation, and transfer of an 

emission credit is public information and may not be submitted as confidential. Any claim of 

confidentiality for this type of information, or failure to submit all information, may result in the rejection 

of the emission credit application. All nonconfidential notices and information regarding the generation, 

availability, use, and transfer of emission credits shall be immediately made available to the public. 

(i) Authorization to emit. An emission credit created under this division is a limited authorization 

to emit the pollutants identified in subsection (a) of this section, unless otherwise defined, in accordance 

with the provisions of this section, 42 United States Code, §§7401 et seq., and Texas Health and Safety 

Code, Chapter 382, as well as regulations promulgated thereunder. An emission credit does not constitute 

a property right. Nothing in this division may be construed to limit the authority of the commission or the 

EPA to terminate or limit such authorization. 

Cj) Program participation. The executive director has the authority to prohibit an organization 

from participating in emission credit trading either as a generator or user, if the executive director 

determines that the organization has violated the requirements of the program, or abused the privileges 

provided by the program. 

(k) Compliance burden. Users may not transfer their con~pliance burden and legal responsibilities 

to a third-party participant. Third-party participants may only act in an advisory capacity to the user. 

(I) Credit ownership. The owner of the initial emission credit certificate shall be the owner or 

operator of the facility or mobile source creating the emission reduction. The executive director may 

approve a deviation from this subsection considering factors such as, but not limited to: 
(1) whether an entity other than the owner or operator of the facility or mobile source 

incurred the cost of the emission reduction strategy; or 

(2) whether the owner or operator of the facility or mobile source lacks the potential to 

generate 111 0 ton of credit. 

$101.306. Emission Credit Use. 

(a) Uses for emission credlts. Unless precluded by a commission order or a condition or 

conditions within an authorization under the same commission account number, emission credits may be 

used as the following: 

( 1 ) offsets for a new source, as defined in 5 101.1 of this title (related to Definitions), or 

major modification to an existing source; 

(2) mitigation offsets for action by federal agencies under 9 101.30 of this title (relating to 

Conformity of General Federal Actions to State Implementation Plans); 

(3) an alternative means of compliance with volatile organic compo~~nd and nitrogen 

oxides reduction requirements to the extent allowed in Chapters 114, 115, and 117 of this title (relating to 

Control of Air Pollution from Motor Vehicles; Control of Air Pollution from Volatile Organic 

Compounds; and Control of Air Pollution from Nitrogen Compounds); 
(4) reductions certified as emission credits may be used in netting by the original 

applicant, if not used, sold, reserved for use, or otherwise relied upon, as provided in 5 1 16.150 of this title 

(relating to New Major Source or Major Modification in Ozone Nonattainment Areas); 

(5) an annual allocation of allowances as provided in 5101.356 and $1 01.399 of this title 

(relating to Allowance Banking and Trading); 

(6) compliance with motor vehicle fleet requirements to the extent allowed by $1 14.201 

of this title (relating to Mobile Emission Reduction Credit Program); or 

(7) compliance with other requirements as allowable within the guidelines of local, state, 

and federal laws. 

(b) Credit use calculation. 

(I j The number of emission credits needed by the user for offsets shall be determined as 

provided in $ 1 16.1 50 of this title. 

(2) For emission credits used in compliance with Chapters 114, 115, or 117 of this title, 

the number of emission credits needed should be determined according to the following equation plus an 

additional 10% to be retired as an environmental contribution. 

Figure: 30 TAC 5 10 1.306(b)(2) 

Calculation of Emission Credits Needed 
Where: 

A = maximum projected annual activity level during use period 

EF, = projected emission rate per unit of activity during use period 

EF, = emission rate per unit of activity required by Chapter 114, 115, or 

117 
(3) For emission credits used to colnply with $5 117.123, 1 17.223, 1 17.320, 

1 17.323, 1 17.423, 11 7.1020, 1 17.1 120, or 117.1220 of this title (relating to Source Cap; and 

System Cap), the number of emission credits needed for increasing the 30-day rolling average 

emission cap or maximum daily cap should' be determined according to the following equation 

plus an additional 10% to be retired as an environmental contribution. 

Figure: 30 TAC $101.306(b)(3) 

Calculation of Emission Reductions Needed for System Cap or Source Cap 

Where: 

N = the total number of emission units in the source cap 

i = each emission unit in the source cap 

Hi = actual daily heat input, in million British thermal units (MMBtu) per 

day, as calculated according to $51 17.123(b)(l) or (2), 

117.223(b)(l) or (2), 117.320(~)(1) - (3), 117.323(b)(l) or (2), 

117.423(b)(l) or (2), 117.1020(c)(l) or (2), 117.1 120(c)(l) or 

(2), or 1 17.1220(~)(1) or (2) of this title 

Ri= the facility's emission factor, in pounds (Ib)/MMBtu, is defined as in 

$51 17.123(b)(1) or (2), 117.223(b)(I) or (2), 117.320(c)(l) - 

(31, 11 7.323(b)(l) or (2), 1 17.423(b)(l) or (2), 1 17.1020(c)(l) 

or (2), 117.1 120(c)(l) or (2), or 117.1220(c)(l) or (2) ofthis 

title 

HI, = the maximum daily heat input, in MMBtu pel- day, expected for an 

emission unit during the use period 

R,, = the maximum emission factor, in IbIMMBtu, expected for an 

emission unit during the use period 

(4) Emission credits used for con~pliance with any other applicable program 

should be detel-nlined in accordance with the requirements of that program and must contain at 
least 10% extra to be retired as an environmental contribution, unless otherwise specified by that 

program. 

(c) Notice of intent to use emission credits. 

(I) For emission credits which are to be used as offsets in a New Source Review 

permit in accordailce with Chapter 116 of this title (relating to Control of Air Pollution by Permits 

for New Construction or Modification), the emission credits must be identified pnor to permit 

issuance. Prior to construction, the offsets must be provided through submittal of a con~pleted 

EC-3 Form, Notice of Intent to Use Emission Credits, along with the original emission credit 

certificate. 

(2) For emission credits that are to be used for compliance with the requirements 

of Chapters 1 14, 11 5, or 117 of this title or other programs, the user must submit a completed EC3 Form along with the original emission credit certificate, at least 90 days prior to the planned use 

of the emission credit. Emission credits may be used only after the executive director grants 

approval of the notice of intent to use. The user must also keep a copy of the emission credit 

certificate, the notice, and all backup in accordance with I 0 1.302(g) of this title (relating to 

General Provisions). 

(3) If the executive director denies the facility or mobile source's use of emission 

credits, any affected person by the executive director's decision may file a motion for 

reconsideration within 60 days of the denial. Notwithstanding the applicability provisions of 

550.3 1 (c)(7) of this title (relating to Purpose and Applicability), the requirements of $50.39 of 

this title (relating to Motion for Reconsideration) shall apply. Only an affected person may file a 

motion for reconsideration. 
SIJBCHAPTER H: EMISSIONS BANKING AND TRADING 

DIVISION 3: MASS EMISSIONS CAP AND TRADE PROGRAM 

$$101.350, 101.351, 101.353, 101.354, 101.360 

$101.350. Definitions. 

The following words and terms, when used in this division, shall have the following 

meanings, unless the context clearly indicates otherwise. 

(1) Adjustment period--A period of time, beginning on the first day of operation 

of a facility and ending no more than 180 consecutive days later, used to make corrections and 

adjustments to achieve normal technical operating characteristics of the facility. 

(2) Allowance--The authorization to emit one ton of nitrogen oxides, expressed 

in tenths of a ton, during a control period. 

(3) Authorized account representative--The responsible person who is 

authorized, in writing, to transfer and otherwise manage allowances. 

(4) Banked allowance--An allowance which is not used to reconcile emissions 

in the designated year of allocation, but which is carried forward for up to one year and noted in 

the compliance or broker account as "banked." 

(5) Broker--A person not required to participate in the requirements of this 

division who opens an account under this division for the purpose of banking and trading 

allowances. 
(6) Broker account--The account where allowances held by a broker are 

recorded. Allowances held in a broker account may not be used to satisfy compliance 

requirements for this division. 

(7) Compliance account--The account where allowances held by a facility or 

multiple facilities at a single site are recorded for the purposes of meeting the requirements of this 

division. 

(8) Control period--The 12-month period beginning January 1 and ending 

December 3 1 of each year. The initial control period begins January 1,2002. 

(9) Existing Facility--A new or modified facility that either has submitted an 

application for a permit under Chapter 116 of this title (relating to Control of Air Pollution by 

Permits for New Construction or Modification) which the executive director has determined to be 

administratively complete before January 2,2001, or has qualified for a permit by rule under 

Chapter 106 of this title (relating to Permits by Rule) and commenced construction before 

January 2,200 1. 

(1 0) Houston-Galveston-Brazoria (HGB) ozone nonattainment area--As 

defined in $101.1 of this title (relating to Definitions). 

(1 1) Level of activity--The amount of activity at a facility measured in terms of 

production, fuel use, raw materials input, or other similar units. 
(12) Person--For the purpose of issuance of allowances under this division, a 

person includes an individual, a partnership of two or more persons having a joint or cominon 

interest, a niutual or cooperative association, or a corporation. 

(13) Site--As defined in 5 122.10 of this title (relating to General Definitions). 

(14) Uncontrolled design capacity--The maximum capacity of a facility to emit 

a pollutant without regard to any enforceable or physical operational limitations including air 

pollution control equipment. 

tj101.351. Applicability. 

(a) This division applies to all facilities which emit nitrogen oxides (NOx) in the 

Houston- Galveston-Brazoria ozone lionattainment area, as defined in $1 01.1 of tliis title (relating 

to Definitions) which are subject to the elnission specifications under $5 1 17.3 10, 1 17.121 0, or 

117.2010 of this title (relating to Emission Specifications for Attainment Demonstration and 

Emission Specifications) and which are: 

(1) located at a site which meets the definition of major source, as defined in 

5 1 17.10 of tliis title (relating to Definitions); or 

(2) located at a site where they collectively have an uncontrolled design capacity 

to emit ten tons or more per year of NOx. 

(b) A site which met the definition of major source as of December 3 1,2000 shall always 

be classified as a major source for purposes of this chapter. A site which did not meet the 
definition $of major source (i.e., was a minor source, or did not yet exist) on December 3 1, 2000, 

but which at any time after December 3 1,2000 becomes a major source, shall from that time 

forward always be classified as a major source for purposes of this chapter. 

€j101.353. Allocation of Allowances. 

(a) Allowances will be deposited into compliance accounts according to the following 

equation except as provided in subsection (b) or (h) of this section. 

Figure: 30 TAC 5 101.353(a) 

Where: 

(1) A= number of allowances rounded to tenths of tons; 

(2) B = the facility's baseline emissioii rate and is calculated as follows: 

(A) For facilities in operation prior to January 1, 1997: 

Where: LA9, = the facility's level of activity, as certified by the 

executive director for 1997; 

LAgR = the facility's level of activity, as certified by the 

executive director for 1998; 

LA9, = the facility's level of activity, as cel-tified by the 
executive director for 1999; 

EF97 = the facility's emission factor for 1997 or the 

emission specifications under $9 1 17.3 10, 1 17.121 0, and 

117.2010 of this title (relating to Emission Specifications 

for Attainment Demonstration; and Emission 

Specifications) (ESAD) whichever is higher, in pounds 

per unit of activity, (not to exceed any applicable federal 

or state regulation, rule, or permit limit), as certified by 

the executive director; 

EF9, = the facility's emission factor for 1998 or the 

emission specifications under ESAD, whichever is 

higher, in pounds per unit of activity, (not to exceed any 

applicable federal or state regulation, rule, or pennit 

limit), as certified by the executive director; 

EFq9 = the facility's emission factor for 1999 or the 

emission specifications under ESAD, whichever is 

higher, in pounds per unit of activity, (not to exceed any 

applicable federal or state regulation, rule, or permit 

limit), as certified by the executive director. 

(B) For existing facilities not in operation prior to January 1, 1997 and 

that have been in operation less than five complete consecutive 

calendar years beginning after the end of the adjustment period and 

have not established two years of baseline data: 

Where: LAAllowable = The level of activity authorized by the executive 

director until such time two consecutive calendar years 

of actual level of activity data is available; 

EFAllowable = The emission factor or the emission 

specifications under ESAD, whichever is higher, 

authorized by the executive director until such time two 

consecutive calendar years of actual emission data is 

available. 

(C) For existing facilities not in operation prior to January 1, 1997, and 

that have established two consecutive calendar years of baseline 

data out of the first five years of operation following the end of the 

adjustment period: 
Where: LA = the facility's level of activity, as certified by the 

executive director, for the first of any two consecutive 

years within the first five years of operation; 

LA Year.* = the facility's level of activity, as certified by 

the executive director, for the second of any two 

consecutive years within the first five years of operation; 

EFYear-, = the facility's emission factor or the emission 

specifications under ESAD, whichever is higher, in 

pounds per unit of activity, (not to exceed any applicable 

federal or state regulation, rule, or permit limit), as 

certified by the executive director, for the first of any 

two consecutive years within the first five years of 

operation; 

EF = the facility's emission factor or the emission 

specifications under ESAD, whichever is higher, in 

pounds per unit of activity, (not to exceed any applicable 

federal or state regulation, rule, or permit limit), as 

certified by the executive director, for the second of any 

two consecutive years within the first five years of 

operation. 

(3) X = reduction factor, where: 

(A) For all boilers, auxiliary steam boilers, and stationary gas turbines 

(including duct burners used in turbine exhaust ducts) within an 

electric power generating system, as defined in 5 1 17.1 0(14)(A) of 

this title (relating to Definitions), located in the Houston-GalvestonBrazoria nonattainment area: 

(i) for January 1,2002 through March 3 1,2003, X = 0.00; 

(ii) for April 1,2003 through March 3 1,2004, X = 0.50; 

(iii) on or after April 1,2004, X = 1.00; 

(B) For facilities subject to the emission specifications under 

§ 1 17.3 1 )(A) and (B), (2)(A), (51, (8)(A)(i), (8)(B), (9)(A)(ii)> 

(lo), or (1 1) of this title: 

(i) for January 1,2002 through March 31,2004, X = 0.00; 

(ii) for April 1, 2004 through March 3 1,2005, X = 0.47; 
(iii) for April 1, 2005 through March 3 1, 2006, X = 0.80; 

(iv) for April 1, 2006 through March 31, 2007, X = 0.93; 

(v) on and after April 1,2007, X = 1.00; 

(C) For all other facilities: 

(i) for January 1,2002 through March 3 1, 2004, X = 0.00; 

(ii) for April 1, 2004 through March 31, 2005, X = 0.389; 

(iii) for April 1, 2005 through March 31, 2006, X = 0.667; 

(iv) for April 1,2006 through March 3 1, 2007, X = 0.778; 

(v) on and after April 1, 2007, X = 1.00; 

(D) Alternatively, facilities subject to the reduction factors under 

subparagraph B of this paragraph may elect to comply with the 

following: 

(i) for January 1,2002 through March 3 1, 2005, X=O.OO; 

(ii) on and after April 1, 2005, X=1.00. 

(E) Election to comply with the alternative reduction schedule under 

subparagraph (D) of this paragraph shall be made by letter to the 

executive director no later than April 1,2003. 

(F) For calendar years which include two different reduction factors, the 

reduction factor shall be adjusted using the appropriate ratio to 

reflect the number of months covered by each reduction factor. 

(4) LAHA = historical average level of activity, where: 

(A) For facilities in operation on or before January 1, 1997, the average 

level of activity, as certified by the executive director, for 1997, 

1998, and 1999; or 

(B) For existing facilities which began operation after January 1, 1997, 

LAtlA is: 

(i) the level of activity authorized by the executive director until 

such time two consecutive calendar years of actual level of 

activity data is available, beginning after the end of the 

adjustment period; or 

(ii) when two complete consecutive calendar years of actual level of 

activity data is available, beginning after the end of the 
adjustment period, the level of activity becomes the average of 

the facility's actual level of activity over those two consecutive 

calendar years of actual level of activity data. 

(5) EFfi,,,,= emission factor, as listed in $81 17.3 10, 1 17.1210, or 1 17.201 0 of this 

title. 

(6) For facilities using alternative emission specifications as allowed in 

$1 17.3 1O(a)(17) or $ 1 17.2010(~)(6) of this title, the level of activity for any 

formula will be the lowest of the level of activity as calculated in variables 

(2)(A), (2)(B), or the level of activity limited by an enforceable limit or 

commitment necessary to qualify for an alternative emission specification in 

$1 17.3 1O(a)(17) or $1 17.201O(c)(6) ofthis title. 

(b) For a new andlor modified facility that has submitted, under Chapter 1 16 of this title 

(relating to Control of Air Pollution by Permit for New Construction of Modification), an 

application which the executive director has not determined to be administratively complete 

before January 2,2001, or has qualified for a permit by rule under Chapter 106 of this title 

(relating to Permits by Rule) and has not commenced construction before January 2,2001, 

allowances for each control period or the annual allocation rights shall be acquired from facilities 

already participating under this division, or in 

accordance with $ 101.356(g) of this title (relating to Allowance Banking and Trading). 

(c) If actual en~issions of nitrogen oxides during a control period exceed the amount of 

allowances held in a compliance account on March 1 following the control period, allowances for 

the next control period will be reduced by an amount equal to the emissions exceeding the 

allowances in the compliance account plus an additional 10%. This does not preclude additional 

enforcement action by the executive director. 

(d) Allowances will be allocated by the executive director, who will deposit allowances 

into 
each compliance account: 

(1) initially, by January 1, 2002; and 

(2) subsequently, by January 1 of each following year. 

(e) The annual deposit for any control period may be adjusted by the executive director to 

reflect new or existing state implementation plan requirements. 

(f) Allowances may be added or deducted by the executive director from compliance 

accounts following the review of reports required under 5 101 359 of this title (relating to 

Reporting). 

(g) The owner or operator of a facility may, due to extenuating circumstances, request a 

baseline period more representative of normal operation as determined by the executive director. 

Applications for extenuating circumstances must be submitted by the owner or operator of the 

facility to the executive director: 

(1) no later than June 30, 2001 to request an alternative three consecutive 

calendar year period for facilities in operation prior to January 1, 1997; 

(2) no later than 90 days after completion of the baseline period to request up to 

two 

additional calendar years to establish a baseline period for facilities whose baseline as described 

by variable (2)(C) listed in the figure contained in subsection (a) of this section is not complete by 

June 30,200 1; or 
(3) at any time as authorized by the executive director 

(h) Allowances calculated under subsection (a) of this section will continue to be based 

on historical activity levels, despite subsequent reductions in activity levels. If allowances are 

being allocated based on allowables and the facility does not achieve two complete consecutive 

calendar years of actual level of activity data, then allowances will not continue to be allocated if 

the facility ceases operation or is not built. 

5101.354. Allowance Deductions. 

(a) Allowances will be deducted in tenths of a ton from a site's compliance account for a 

control period based upon the monitoring and testing protocols established in §§I 17.335, 

1 17.340, 117.1235, 11 7.1240, and I 17.2035 of this title (relating to Initial Demonstration of 

Compliance; Continuous Demonstration of Compliance; and Monitoring and Testing 

Requirements). 

(b) In the event that the monitoring and testing data required under subsection (a) of this 

section is missing or unavailable, the facility may report actual emissions for that period of time 

using 

the following equation or other listed methods in the following order to determine actual 

emissions: 

continuous monitoring data; periodic monitoring data; testing data; manufacturer's data, and EPA 

Co~npilrition qfAil- Poll~ltioli E~~zissio?~ Fuctors (AP-42), September 2000. When reporting actual 

emissions as required under this subsection, the facility must also submit the justification for not 

using 
the methods in subsection (a) of this section and the justification for the method used. 

Figure: 30 TAC 5 10 1.354(b) (No change.) 
Where: 

A = Allowances to be subtracted from the compliance account in tenths of tons 

LACp = the level of activity during the control period 

EFcp = the emission factor for the control period in lb of nitrogen oxides (NO,) 

per unit of activity 

(c) If the protocol used to show compliance with this section differs from the protocol 

used by 

the commission to establish the allocatioil of allowances under $1 01.353 of this title (relating to 

Allocation of Allowances), the executive director may recalculate the number of allowances 

allocated 

per year for consistency between the methods. 

(d) When deducting allowances from a site's compliance account for a control period, the 

executive director will deduct the allowances beginning with the most recently allocated 

allowances 

before deducting banked allowances. 

(e) Allowances shall be deducted from a site's compliance account in an anlount equal to 

the nitrogen oxides (NOs) en~issions increases fi-0111 facilities not subject to an emission 

specification under 5 1 17.3 10 or $1 17.20 10 of this title (relating to Emission Specifications for 

Attainment Demonstration; and Eliiission Specifications) which result from changes made after 
December 3 I, 2000, to facilities subject to this division and 5 1 17.3 10(e)(3) or 5 1 17.20 10(Q of 

this title. Documentation detailing these increases in NOx emissions shall be included with the 

submittal of the ECT-1 Form, Annual Compliance Report. 

(0 Allowances allocated in accordance with the variables in (a)(2)(B) listed in the figure 

contained in 5101.353(a) of this title may only be used by the facility for which they were 

allocated and 

may not be used by other facilities at the same site during the same control period. 

(g) On March 1 after every control period, a site shall hold a quantity of allowances in its 

compliance account that is equal to or greater than the total NOx emissions emitted during the 

prior 

control period. 

$101.360. Level of Activity Certification. 

(a) The owner or operator of any facility subject to this division shall certify, no later than 

June 30, 2001, its historical level of activity by submitting to the executive director a completed 

ECT-3 Form, Level of Activity Certification, along with any supporting information such as 

usage records, testing or monitoring data, emission factors, and production records as follows: 

(I) for facilities in operation prior to January 1, 1997, the level of activity 

averaged over 1997, 1998, and 1999; 

(2) for new and modified facilities not in operation prior to January 1, 1997 and 

either have submitted, under Chapter 11 6 of this title (relating to Control of Air Pollution by 

Permits for New Construction or Modification), an application which the executive director has 
determined to be administratively complete before January 2, 2001, or have qualified for a permit 

by rule under Chapter 106 of this title (relating to Permits by Rule) and have commenced 

construction before January 2,2001, the level of activity authorized by the executive director; and 

(3) for new and modified facilities not in operation prior to January 1, 1997, that 

are subject to emission specifications under $5 1 17.3 10, 1 17.12 10, or 1 17.201 0 of this title 

(relating to Emission Specifications for Attainment Demonstration; and Emission Specifications) 

that were first adopted after April 1,200 1, and either have submitted under Chapter 1 16 of this 

title an application which the executive director has determined to be administratively complete 

within 90 days of the effective date of this emission specification, or have qualified for a permit 

by rule under Chapter 106 of this title and have commenced construction within 90 days of the 

effective date of the emission specification, the level of activity authorized by the executive 

director. 

(b) The owner or operator of any facility subject to this division who has certified a 

facility's 

allowable level of activity under subsection (a)(2) of this section shall: 

(1) certify no later than 90 days from the end of the fifth year of operation the 

actual level of activity and actual emission factors for the two complete consecutive calendar years 

chosen as a baseline by submitting to the executive director a completed ECT-3 Form, Level of 

Activity Certification, along with any supporting information such as usage records, testing or 

monitoring data, and production records; and 

(2) receive no benefit of allowances allocated based on actual operation until 

January 1 of the control period following the certification in paragraph (1) of this subsection. 
(c) Owners or operators of a site or facility that becomes subject to this division on or 

after April 1, 2001 shall certify the level of activity, as determined by the executive director, in 

accordance with subsections (a) and (b) of this section. Such certification shall be submitted no 

later than 90 days from the date the site or facility becomes subject to this division or no later 

than 90 days from the effective date of this rule, whichever is later. 
SUBCHAPTER H: EMISSIONS BANKING AND TRADING 

DIVISION 4: DISCRETE EMISSION CREDIT BANKING AND TRADING 

5101.372, 5101.376 

5101.372. General Provisions. 

(a) Applicable pollutants. Reductions of volatile organic compounds (VOC), nitrogen 

oxides (NO,), carbon monoxide (CO), sulfur dioxide (SO?) and particulate matter with an 

aerodynamic diameter of less than or equal to a nominal ten microns (I'Mlo) may qualify as 

discrete emission credits as appropriate. Reductions of other criteria pollutants are not creditable. 

Reductions of one pollutant may not be used to meet the reduction requirements for another 

pollutant, unless urban airshed modeling demonstrates that one may be substituted for another 

subject to approval by the executive director and the United States Environmental Protection 

Agency (EPA). 

(b) Eligible generator categories. Eligible categories include the following: 

(1) facilities (including area sources); 

(2) mobile sources; or 

(3) any facility, including area sources, 01- mobile source associated with actions 

by federal agencies under $1 01.30 of this title (relating to Conformity of General Federal Actions 

to State Implementation Plans). 

(c) Discrete emission credit requirements. 
(1) To be creditable as a discrete emission reduction credit (DERC), an emission 

reduction must meet the following: 

(A) the reduction be real, quantifiable, and surplus at the time the 

discrete emission credit is generated; 

(B) the reduction must have occurred after the most recent year of 

emissions inventory used in the state implementation plan (SIP) for all applicable pollutants; and 

(C) the facility's annual emissions prior to the reduction strategy must 

have been reported or represented in the emissions inventory used for the SIP. 

(2) To be creditable as a mobile discrete emission reduction credit (MDERC), an 

emission reduction must meet the following: 

(A) the reduction must be real, quantifiable, and surplus at the time it is, 

created; 

(B) the reduction must have occurred after the most recent year of 

emissions inventory used in the SIP for all applicable pollutants; 

(C) the mobile source's en~issions must have been represented in the 

emissions inventory used for the SIP; and 
(D) the mobile sources must have been included in the attainment 

demonstration baseline emissions inventory. If a mobile reduction implemented is not in the 

baseline for emissions, this reduction does not constitute a discrete emission reduction. 

(3) Emission reductions from a facility or mobile source which are certified as 

discrete emission credits under this division cannot be recertified in whole or in part as emission 

credits under another division within this subchapter. 

(d) Protocol. 

(1) All generators or users of discrete emission credits must use a protocol which 

. . has been submitted by the executive director to the EPA for approval, if existing for the :t 

applicable facility or mobile source, to measure and calculate baseline emissions. If the generator 

or user wishes to deviate from a protocol submitted by the executive director, EPA approval is 

required before the protocol can be used. Protocols shall be used as follows. 

(A) Facilities subject to the emission specifications under $$ 1 17.1 10, 

117.210, 117.310, 117.410, 117.1010, 117.1110, 117.1210, 117.1310, 117.2010, 117.2110, or 

11 7.33 10 of this title (relating to Emission Specifications for Attainment Demonstration; 

Emission Specifications for Eight-Hour Attainment Demonstration; and Emission Specifications) 

shall quantify reductions in NO, using the testing and monitoring n~ethodologies identified to 

show compliance with the emission specification. 

(B) Facilities subject to the requirements under $$115.112, 1 1 5.12 1, 

115.122, 115.162, 115.21 1, 115.212, 115.352, 115.421. 115.541, or 115.542 of this title (relating 

to Control Requirements; and Emission Specifications) shall quantify VOC reduct~ons using the 
testing and monitoring methodologies identified to show compliance with the emission 

specifications or the requirements. 

(C) If the executive director has not submitted a protocol for the 

applicable facility or mobile source to the EPA for approval, the following applies: 

(i) the amount of discrete emission credits from a facility or 

mobile source, in tons, will be determined and certified based on quantification methodologies at 

least as stringent as the methods used to demonstrate compliance with any applicable 

requirements for the facility or mobile source; 

(ii) the generator must collect relevant data sufficient to 

characterize the facility's or mobile source's emissions of the affected pollutant and the facility's 

or mobile source's activity level for all representative phases of operation ill order to characterize 

the facility's or mobile source's baseline emissions; 

(iii) facilities with continuous emissions monitoring systems or 

predictive emissions monitoring systems in place shall use this data in quantifying actual 

emissions; 

(ivj the chosen quantification protocol shall be made available 

for public comment for a period of 30 days and shall be viewable on the commission's Web site; 

(vj the chosen quantification protocol and any comments 

received during the public comment period shall, upon approval by the executive director, be 

submitted to the EPA for a 45-day adequacy review; and 
(vi) quantification protocols shall not be accepted for use with ' 

this division (relating to Discrete Emission Credit Banking and Trading) if the executive director 

receives a letter objecting to the use of the protocol from the EPA during the 45-day adequacy 

review or the EPA proposes disapproval of the protocol in the Federal Register. 

(2) In the event that the monitoring and testing data required under paragraph (1) 

of this subsection is missing or unavailable, the facility may report actual emissions for that 

period of time using these listed methods in the following order of preference to determine actual 

emissions: 

(A) continuous monitoring data; 

(B) periodic monitoring data; 

(C) testing data; 

(D) manufacturer's data; 

(E) EPA Colnpilatiol~ ofAil. Pollutiol~ El)zissio11 Factors (AP-42), 

September 2000; or 

(F) material balance. 

(3) When quantifying actual en~issions in accordance with paragraph (2) of this 

subsection, the generator shall use the most conservative method for replacing the missing data, 
submit the justification for not using the methods in paragraph (1) of this subsection, and subnit 

the justification for the method used. 

(e) Credit certification. 

(1) The amount of discrete emission credits shall be rounded down to the nearest 

tenth of a ton when generated and shall be rounded up to the nearest tenth of a ton when used. 

(2) Applications for certification will be reviewed in order to determine the 

credibility of the reductions. Reductions determined to be creditable will be certified by the 

executive director. 

(3) The applicant will be notified in writing if the executive director denies the 

discrete emission credit notification. The applicant may submit a revised discrete emission credit 

notification in 

accordance with the requirements of this division. 

(4) If a facility's or mobile source's emissions exceed its allowable emission 

limit, the amount of emissions exceeding the limit may not be certified as discrete emission 

credits. 

(f) Geographic scope. Except as provided in paragraph (7) of this subsection and 

5101.375 of this title (relating to Emission Reductions Achieved Outside the United States), only 

emission reductions generated in the State of Texas may be creditable and used in the state with 

the following limitations. 
(1) VOC and NO, discrete emission credits generated in an ozone attainment area 

may be used in any county or portion of a county designated as attainment or unclassified, except 

as specified in paragraphs (4) and (5) of this subsection and may not be used in an ozone 

nonattainment area. 

(2) VOC and NO, discrete emission credits generated in an ozone nonattainment 

area may be used either in the same ozone nonattainment area in which they were generated, or in 

any county or portion of a county designated as attainment or unclassified. 

(3) VOC and NO, discrete emission credits generated in an ozone nonattainment 

area may not be used in any other ozone nonattainment area, except as provided in this 

subsection. 

(4) VOC discrete emi,ssion credits are prohibited from use within the covered 

attainment counties, as defined in 5 1 15.10 of this title (relating to Definitions), if generated 

outside of the covered attainment counties. VOC discrete emission credits generated in a 

nonattainment area may be used in the covered attainment counties, except those generated in El 

Paso. 

(5) NO, discrete emission credits are prohibited from use within the covered 

attainine~lt counties, as defined in $1 15.10 of this title, if generated outside of the covered 

attainment counties. NO, discrete emission credits generated in a nonattainment area, except 

those generated in El Paso, may be used in the covered attainment counties. 

(6) CO, SOz, and PMlo discrete emission credits must be used in the same 

metropolltan statistical area (as defined in Office of Management and Budget Bulletin Number 
93-17 entitled "Revised Statistical Definitions for Metropolitan Areas" dated June 30, 1993) in 

which the reduction was generated. 

(7) VOC and NO, discrete emission credits generated in other counties, states, or 

emission reductions in other nations may be used in any attainment or nonattainment county 

provided a demonstration has been made and approved by the executive director and the EPA, to 

show that the emission reductions achieved in the other county, state, or nation improve the air 

quality in the county where the credit is being used. 

(g) Ozone season. In areas having an ozone season of less than 12 months (as defined in 

40 Code of Federal Regulations Part 58, Appendix D) VOC and N0,discrete emission credits 

generated outside the ozone season may not be used during the ozone season. 

(h) Recordkeeping. The generator must maintain a copy of all notices and backup 

information submitted to the registry for a minimum of five years, following the completion of 

the generation period. The user must maintain a copy of all notices and backup information 

submitted to the registry for a minimum of five years, following the completion of the use period. 

Other relevant reference material or raw data must also be maintained on-site by the participating 

facilities or mobile sources. The user must also maintain a copy of the generator's notice and 

backup information for a minimum of five years after the use is completed. The records shall 

include, but not necessarily be limited to: 

(1) the name, emission point number, and facility identification number of each 

facility or any other identifying number for mobile sources using discrete emission credits; 
(2) the amount of discrete emission credits being used by each facility or mobile 

source; and 

(3) the specific number, name, or other identification of discrete emission credits 

used for each facility or mobile source. 

(i) Public information. All information submitted with notices, reports, and trades 

regarding the nah~re, quantity of emissions, and sales price associated with the use or generation 

of discrete emission credits is public information and may not be submitted as confidential. Any 

claim of confidentiality for this type of information, or failure to submit all information may 

result in the rejection of the discrete emission reduction application. All nonconfidential notices 

and infoimation regarding the generation, use, and availability of discrete emission credits may 

be obtained from the registry. 

(j) Authorization to emit. A discrete emission credit created under this division is a 

limited authorization to emit the specified pollutants in accordance with the provisions of this 

section, the Federal Clean Air Act, and the Texas Clean Air Act, as well as regulations 

promulgated thereunder. A discrete emission credit does not constitute a property right. Nothing 

in this division should be construed to limit the authority of the commission or the EPA to 

terminate or limit such authorization. 

(k) Program participation. The executive director has the authority to prohibit a company 

from participating in discrete emission credit trading either as a generator or user,.if the executive 

director deteimines that the company has violated the requirements of the program or abused the 

privileges provided by the program. 
(1) Compliance burden and enforcement. 

(1) The user is responsible for assuring that a sufficient quantity of discrete 

emission credits are acquired to cover the applicable facility or mobile source's emissions for the 

entire use period. 

(2) The user is in violation of this section if the user does not possess enough 

discrete emission credits to cover the compliance need for the use period. If the user possesses an 

insufficient quantity of discrete emission credits to cover its compliance need, the user will be out 

of compliance for the entire use period. Each day the user is out of compliance may be considered 

a violation. 

(3) Users may not transfer their compliance burden and legal responsibilities to a 

third-party participant. Third-party participants may only act in an advisory capacity to the user. 

(m) Credit ownership. The owner of the initial discrete emission credit certificate shall be 

the owner or operator of the facility or mobile source creating the emission reduction. The 

executive director may approve a deviation from this subsection considering factors such as, but 

not limited to: 

(1) whether an entity other than the owner or operator of the facility or mobile 

source incurred the cost of the emission reduction strategy; or 

(2) whether the owner or operator of the facility or mobile source lacks the 

potential to generate one tenth of a ton of credit. 
8101.376. Discrete Emission Credit Use. 

(a) Requirements to use discrete emission credits. Discrete emission credits may be used 

if the following requirements are met. 

(1) The user shall have ownership of a sufficient amount of discrete emission 

credits before the use period for which the specific discrete emission credits are to be used. 

(2) The user shall hold sufficient discrete emission credits to cover the user's 

compliance obligation at all times. 

(3) The user shall acquire additional discrete emission credits during the use .. . 

period if it is determined the user does not possess enough discrete emission credits to cover the 

entire use period. The user shall acquire additional credits as allowed under this section prior to 

the shortfall, or be in violation of this section. 

(4) Facility or mobile source operators may acquire and use only discrete 

emission credits listed on the'registry. 

(b) Use of discrete emission credits. With the exception of uses prohibited in subsection 

(c) of this section or precluded by comnlission order or condition within an authorization under 

the same commission account number, discrete emission credits may be used to meet or 

demonstrate compliance with any facility or mobile regulatory requirement including the 

following: 

(1) to exceed any allowable enlission level, if the following conditions are met: 
(A) in ozone nonattainment areas, permitted facilities may use discrete 

emission credits to exceed permit allowables by no more than ten tons for nitrogen oxides or five 

tons for volatile organic compounds in a 12-month period as approved by the executive director. 

This use is limited to one exceedance, up to 12 months within any 24-month period, per use 

strategy. The user shall demonstrate that there will be no adverse impacts from the use of discrete 

emission credits at the levels requested; or 

(B) at permitted facilities in counties or portions of counties designated 

as attainment or unclassified, discrete emission credits may be used to exceed permit allowables 

by values not to exceed the prevention of significant deterioration significance levels as provided 

in 40 Code of Federal Regulatio~is (CFR) $52.2 I (b)(23), as approved by the executive director 

prior to use. This use is limited to one exceedance, up to 12 months within any 24-month period, 

per use strategy. The user shall demonstrate that there will be no adverse impacts from the use of 

discrete emission credits at the levels requested; 

(2) as new source review (NSR) permit offsets, if the following requirements are 

met: 

(A) the user shall obtain the executive director's approval prior to the use 

of specific discrete emission credits to cover, at a minimum, one year of operation of the new or 

modified facility in the NSR permit; 

(B) the amount of discrete emission credits needed for NSR offsets 

equals the quantity of tons needed to achieve the maximum allowable emission level set in the 

user's NSR permit. The user shall also purchase and retire enough discrete emission credits to 
meet the offset ratio requirement in the user's ozone nonattainment area. The user shall purchase 

and retire either the environmental contribution of 10% or the offset ratio, whichever is higher; 

and 

(C) the NSR permit must meet the following requirements: 

(i) the permit must contain an enforceable requirement that the 

facility obtain at least one additional year of offsets before continuing operation in each 

subsequent year; 

(ii) prior to issuance of the permit the user shall identify the 

discrete emission credits; and 

(iii) prior to start of operation the user shall submit a completed 

DEC-2 Form, Notice of Intent to Use Discrete Emission Credits, along with the original 

certificate; 

(3) to comply with the Mass Emissions Cap and Trade Program req~~irements as 

provided in $1 01.356(g) of this title (relating to Allowance Banking and Trading); or 

(4) to comply with Chapters 114, 115, and 117 of this title (relating to Control of 

Air Pollution from Motor Vehicles; Control of Air Pollution from Volatile Organic Compounds; 

and Colltrol of Air Pollution from Nitrogen Compounds), as allowed. 

(c) Discrete emission credit use prohibitions. A discrete emission credit may not be used 

under this division: 
(I) before it has been acquired by the user; 

(2) for netting to avoid the applicability of federal and state 1VSR requirements; 

(3) to meet (as codified in 42 United States Code (USC), Federal Clean Air Act 

(FCAA)) requirements for: 

(A) new source performance standards under FCAA, $ 1 1 1 (42 USC, 

$741 1); 

(B) lowest achievable emission rate standards i~nder FCAA, $ 173(a)(2) 

(42 USC, $7503(a)(2)); 

(C) best available control technology standards under FCAA, 5 165(a)(4) 

(42 USC, §7475(a)(4)) or Texas Health and Safety Code, §382.0518(b)(l); 

(D) hazardous air pollutants standards i~ndel- FCAA, $1 12 (42 USC, 

$74 12), including the requirements for maximum achievable control technology; 

(E) standards for solid waste cornbustion under FCAA, 5 129 (42 USC, 

(F) requirements for a vehicle inspection and maintenance program 

under FCAA, $ 182(b)(4) or (c)(3) (42 USC, $75 1 1 a(b)(4) or (c)(3)); 
(G) ozone control standards set under FCAA, $1 83(e) and (f) (42 USC, 

$75 I 1 b(e) and (f)); 

(H) clean-fileled vehicle requirements under FCAA, $246 (42 USC, 

$7586); 

(I) motor vehicle emissions standards under FCAA, $202 (42 USC, 

$7.52 1); 

(J) standards for non-road vehicles under FCAA, $213 (42 USC, $7547); 

(K) requirements for reformulated gasoline under FCAA, $21 I (k) (42 

USC, $7545); or 

(L) requirements for Reid vapor pressure standards under FCAA, 

$21 I(h) and (i) (42 USC, $7545(h) and (i)); 

(4) to allow an emissions increase of an air containinant above a level authorized 

in a permit or other autl~orization that exceeds the limitations of 3106.261 or $106.262 of this title 

(relating to Facilities (Emission Limitations); and Facilities (Emission and Distance Limitations)) 

except as approved by the executive director and the United States Environmental Protection 

Agency. This paragraph does not apply to limit the use of discrete emission reduction credits 

(DERC) or mobile discrete emission reduction credits in lieu of allowances under $ 101.356(11) of 

this title; 
(5) to authorize a facility whose emissions are enforceably limited to below 

applicable major source tliresliold levels, as defined in § 122.1 0 of this title (relating to General 

Definitions), to operate with actual emissions above those levels without triggering applicable 

requirements that would otherwise be triggered by such major source status; or 

(6) to exceed an allowable emission level where the exceedance would cause or 

contribute to a condition of air pollution as determined by the executive director. 

(d) Notice of intent to use. 

(1) A completed DEC-2 Form, signed by an authorized representative of the 

applicant shall be submitted to the executive director in accordance with the following 

requirements. 

(A) Discrete emission credits may be used only after the applicant has 

submitted the notice and received executive director approval. 

(B) The application must be submitted at least 45 days prior to the first 

day of the use period if the discrete emission credits were generated from a facility, 90 days if the 

discrete emission credits were generated from a mobile source, and every 12 months thereafter 

for each subsequent year if the use period exceeds 12 months. 

(C) A copy of the application shall also be sent to the federal land 

manager 30 days prior to use if the user is located within 100 kilometers of a Class I area, as 

listed in 40 CFR Part 8 1 (200 1). 
(D) The application must include, but is not limited to, the following 

information for each use: 

(i) the applicable state and federal requirements that the discrete 

emission credits will be used to comply with and the intended use period; 

(ii) the amount of discrete emission credits needed; 

(iii) the baseline emission rate, activity level, and total emissions 

for the applicable facility or mobile source; 

(iv) the actual emission rate, activity level, and total emissions 

for the applicable facility or mobile source; 

(v) the most stringent emission rate and the most stringent 

emission level for the applicable facility or mobile source, considering all applicable regulatory 

requirements; 

(vi) a complete description of the protocol, as submitted by the 

executive director to the United States Environmental Protection Agency for approval, used to 

calculate the amount of discrete emission credits needed; 

(vii) the actual calculations perfornled by the user to determine 

the amount of discrete emission credits needed; 
(viii) the date that the discrete emission credits were acquired or 

will be acquired; 

(ix) the discrete emission credit generator and the original 

certificate of the discrete emission credits acquired 01. to be acquired; 

(x) the price of the discrete emission credits acquired or the 

expected price of the discrete emission credits to be acquired, except for transfers between sites 

under common ownership or control; 

(xi) a statement that due diligence was taken to verify that the 

discrete emission credits were not previously used, the discrete emission credits were not 

generated as a result of actions prohibited under this regulation, and the discrete emission credits 

will not be used in a manner prohibited under this regulation; and 

(xii) a certification of use, that must contain certification under 

penalty of law by a responsible official of the user of truth, accuracy, and completeness. This 

certification must state that based on information and belief formed after reasonable inquiry, the 

statements and information in the document are true, accurate, and complete. 

(2) DERC use calculation. 

(A) To calculate the amount of discrete emission credits necessary to 

complywith$$117.123, 117.223, 117.320, 117.323, 117.423, 117.1020, 117.1120, 117.1220,or 

1 17.3020 of this title (relating to Source Cap; and System Cap), a user may use the equations 

listed in those sections, or the following equations. 
(i) For the rolling average cap: 

Figure: 30 TAC fj 101.376(d)(2)(A)(i) 

Amount of DERCs 

Required = 1 

i=l 

[(EH, x ER, ) - (H, x R, )] x (A- 

(tons) 

Where: 

d = the number of days in the use period 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Hi = actual daily heat input, in million British thermal units (MMBtu) per day, as 

calculated according to $5 1 17.123(b)(1), 1 17.223(b)(l), 1 17.320(~)(1) and (2), 

117.323(b)(l), 117.423(b)(l), 117.1020(c)(l), 1 17.1 120(c)(l), 1 17.1220(~)(1), 

or 117.3020(c) of this title (relating to Source Cap; and System Cap) as 

applicable 

R; = actual emission rate, in pounds (Ib)lMMBtu, as defined in $$I 17.123(b)(l), 

11 7.223(b)(l), 1 17.320(~)(1) and (2), 11 7.323(b)(l), 117.423(b)(l), 

117.1020(~)(1), 117.1 120(c)(l), 1 17.1220(~)(1), or 117.3020(c) of this title as 

applicable 

EHi = expected new daily heat input, in MMBtu per day 

ER; = expected new emission rate, in IbIMMBtu. 

(ii) For n~axin~um daily cap: 

Figure: 30 TAC fj I 01.376(d)(2)(A)(ii) 
N 1 

Amount of DEKCS Required (tons) = [(EHMAER~)- (HM~xR;)]- 

i=~ 2000 

Where: 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Ri = in IbIMMBtu, is defined as in $9 117.123(b)(2), 11 7.223(b)(2), 

1 17.320(~)(3), 117.323(b)(2), 1 17.423(b) (2), 1 17.1020(~)(2), 117.1 120(c)(2), or 

117.1220(~)(2) of this title (relating to Source Cap; and System Cap) as 

applicable 

HMi = the maximum daily heat input, in MMBtdday, as defined in 

1 17.123(b)(2), 1 17.223(b)(2), 1 17.320(~)(3), 1 17.323(b)(2), 1 17.423(b)(2), 

1 17.1020(~)(2), 117.1 120(c)(2), or 1 17.1220(~)(2) of this title as applicable 

EHM; = expected new maximum daily heat input, in MMBtu per day 

ERi = expected new emission rate, in IbIMMBtu. 

(B) The amount of discrete emission credits needed to demonstrate 

compliance or meet a regulatory requirement is calculated as follows. 

Figure: 30 TAC 5 I0 l.376(d)(2)(B) 

(ELA) x (EEK - RER) = discrete emission credits needed 

Where: 

ELA = expected level of activity 

EER = expected emission rate per unit activity 

RER = regulatory emission rate per unit activity. 
(C) The amount of discrete emission credits needed to exceed an 

allowable emissions level is calculated as follows. 

Figure: 30 TAC tj 10 1.376(d)(2)(C) 

(ELA - PLA) x (PER) = discrete emission credits needed 

Where: 

ELA = expected level of activity 

PLA = permitted level of activity 

PER = permitted emission rate per unit activity 

(D) The user shall retire 10% more discrete emission credits than are 

needed, as calculated in this paragraph, to ensure that the facility or mobile source environmental 

contribution retirement obligation will be met. 

(E) If the amount of discrete emission credits needed to meet a regulatory 

requirement or to demonstrate compliance is greater than ten tons, an additional 5.0% of the 

discrete emission credits needed, as calculated in this paragraph, must be acquired to ensure that 

sufficient discrete einission credits are available to the user with an adequate compliance margin. 

(3) A user may submit a notice late in the case of an emergency, but the notice 

must be submitted before the discrete emission credits can be used. The user shall include a 

complete description of the emergency situation in the notice of intent to use. All other notices 

submitted less than 45 days prior to use, or 90 days prior to use for a mobile source, will be 

considered late and In violation. 
(4) The user is responsible for determining the credits it will purchase and 

notifying the executive director of the selected generating facility or mobile source in the notice 

of intent to use. If the generator's credits are rejected or the notice of generation is incomplete, 

the use of discrete emission credits by the user may be delayed by the executive director. The user 

cannot use any discrete emission credits that have not been certified by the executive director. 

The executive director may reject the use of discrete emission credits by a facility or mobile 

source if the credit and use cannot be demonstrated to meet the requirements of this section. 

(5) If the facility is in an area with an ozone season less than 12 months, the user 

shall calculate the amount of discrete emission credits needed for the ozone season separately 

from the non-ozone season. 

(e) Notice of use. 

(I) The user shall calculate: 

(A) the amount of discrete emission credits used, including the amount of 

discrete emission credits retired to cover the environmental contribution, as described in 

subsection (d)(2)(C) of this section, associated with actual use; and 

(B) the amount of discrete emission credits not used, including the 

amount of excess discrete emission credits that were purchased to cover the environmental 

contribution, as described in subsection (d)(2)(C) of this section, but not associated with the 

actual use, and available for future use. 

(2) DERC use is calculated by the following equations. 
(A) The amount of discrete emission credits used to demonstrate 

compliance or meet a regulatory requirement is calculated as follows. 

Figure: 30 TAC $101.376(e)(2)(A) 

(ALA) x (AER - RER) = discrete emission credits used 

Where: 

ALA = actual level of activity 

AER = actual emission rate per unit activity 

RER = regulatory emission rate per unit activity 

(B) The amount of discrete emission cred~ts used to comply with permit 

allowables is calculated as follows. 

Figure: 30 TAC 3 1 Ol.376(e)(2)(B) 

(ALA - PLA) x (AER) = discrete emission credits used 

Where: 

ALA = actual level of activity 

PLA = permitted level of activity 

AER = permitted emission rate per unit activity 

(3) A DEC-3 Form, Notice of Use of Discrete Emission Credits, shall be 

\ 

submitted to the comlnission in accordance with the following requirements. 

(A) The notice must be submitted within 90 days after the end of the use 

period. 
(B) The notice must be submitted within 90 days of the conclusion of 

each 12-month use period, if applicable. 

(C) The notice is to be used as the mechanism to update or amend the 

notice of intent to use and must include any information different from that reported in the notice 

of intent to use, including, but not limited to, the following items: 

(i) purchase price of the discrete emission credits obtained prior 

to the current use period, except for transfers between sites under common ownership or control; 

(ii) the actual amount of discrete emission credits possessed 

during the use period; 

(iii) the actual emissions during the use period for volatile 

organic compounds and nitrogen oxides; 

(iv) the actual amount of discrete emission credits used; 

(v) the actual environmental contribution; and 

(vi) the amount of discrete emission credits available for future 

use. 

(4) Discrete emission credits that are not used during the use period are surplus 

and remain available for transfer or use by the holder. In addition, any portion of the calculated 

environmental contribution not attributed to actual use is also available. 
(5) The user is in violation of this section if the user submits the report of use 

later than the allowed 90 days following the conclusion of the use period. 
SIJBCHAPTER H: EMISSIONS BANKING AND TRADING 

DIVISION 5: SYSTEM CAP TRADING 

$101.383, $101.385 

$101.383. General Provisions. 

(a) System cap limits may be exceeded with surplus emission allowables obtained for that 

day from another source owner or operator participating in a system cap. The owner or operator 

may exceed the: 

(1) maximum daily cap with one-day surplus emission allowables generated on 

the same day; and 

(2) rolling 30-day average daily system cap emission limitation with surplus 

emission allowables generated over the same period. 

(b) System cap limits for units within an electric power generating system as regulated 

under fj 1 17.3020 of this title (relating to System Cap) may be exceeded with surplus emission 

allowables obtained for that calendar year from another source owner or operator participating in 

a system cap. 

(c) The cap requirements of Chapter 11 7 of this title (relating to Control of Air Pollution 

from Nitrogen Compounds) continue to apply, except as modified in subsections (a) and (b) of 

this section. 

$101.385. Recordkeeping ancl Reporting. 
(a) The owner or operator of a source in an ozone nonattainment area participating with 

this division shall submit to the executive director a quarterly report. 

(1) Each quarterly report will be based on a three-calendar month period 

beginning on January 1 of each year. 

(2) The report shall be submitted within 30 days following the end of the 

quarterly period. 

(3) The report shall detail the following: 

, , 

(A) the daily nitrogen oxides (NOx) emissions from each source along 

with supporting calculations for the maximum daily cap and the rolling 30-day average system 

cap emission limitation; 

(B) all emission trades conducted under this division during the reported 

time period including the trade date or period, quantity traded, and trading participants. 

(b) The owner or operator of a source participating in a system cap limit for sources 

subject to $1 17.3020 of this title (relating to System Cap) shall submit to the executive director an 

annual report. 

(1) Each annual report will be based on a 12-month calendar period beginning on 

Janualy 1 of each year. 
(2) The report shall be submitted within 30 days following the end of the annual 

period. 

(3) The report shall detail the following: 

(A) the annual NOx emissions from each source along with supporting 

calculations; and 

(B) all emissions trades conducted under this division during the reported 

time period including trade date, quantity traded, and trade participants. 

(c) The owner or operator of any system participating in this division shall report within 

48 hours to the executive director any time that the system exceeded its daily or rolling 30-day 

average system cap emission limitation, or within 30 days any time that the system exceeded its 

annual system cap, and did not obtain surplus emission allowables for that time period. This 

report shall include: 

(1) cause of the exceedence with supporting data; 

(2) date or period of exceedence; 

(3) amount of exceedence with data to demonstrate the amount of emissions in 

excess of the applicable limit; and 

(4) number of sui-plus emission allowables traded on the date of or during the 

period of the exceedence. 
TEXAS COMMISSION ON ENVIRONMENTA~~R~~ 

1 hecebyce~~ttgs~a twc zntl mrrectcopyda 

Texas Cammission on Envimmental Quatitydoamr$ 

which is filed in the permanent recards of the CanmilPta\. 

07 

Ladha d, Chief clerk 

Texas Commiin on Emriromnental Quality 

ORDER ADOPTING AMENDED AND REPEALED RULES AND 

REVISIONS TO THE STATE IMPLEMENTATION PLAN 

Docket No. 2006-2026-RUL 

On July 25, 2007, the Texas Colnlnission on Environmental Quality (Collmission) , during a public 

meeting, considered adoption of anlendlnents to Sections 101.1, 101.302, 101.306, 101.350, 101.351, 

101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 101.385 and the repeal of Section 101.22 of 30 

TAC Chapter 101. The Colnlnission adopts these alnendlnents and repeal, in Chapter 101, ~eneral Air 

Quality Rules; and corresponding revisions to the state iinpleinentation plan (SIP). The amended sections 

§§101.1, 101.302, 101.306, 101.350, 101.351, 101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 

101.385 and the repeal of 8101.22 will be subinitted to the United States Envirolunental Protection Agency 

(EPA) as revisions to the Texas State Irnplernentation Plan (SIP). The adoption corrects references to sections 

of 30 TAC Chapter 117, Control of Air Pollution from Nitrogen Comnpounds, which have changed due to the 

reorganization of Chapter 117, revises definitions, removes an obsolete effective date, and corrects references 

to the coinmission. 

Under Tex. Health & Safety Code Ann. $3 382.01 1, 382.012, and 382.023 (Vernon 2001), the 

Cormnission has the authority to control the quality of the state's air and to issue orders consistent with the 

policies and purposes of the Texas Clean Air Act, Chapter 382 of the Tex. Health & Safety Code. The 

proposed rules were published for coinrnent in the February 23, 2007 issue of the Texas Register (32 TexReg 

713). 

Pursuant to Tex. Health & Safety Code Ann. 3 382.017 (Vernon 2001), Tex. Gov't Code Chapter 

2001 (Vernon 2000 & Vernon Supp. 2005), and 40 Code of Federal Regulations 5 51.102, and after proper 

notice, the Coininissioll conducted a public hearing to con side^- the amended and repealed rules and revisioils 

to the SIP. Proper notice included pronlinent advertiselnent in the areas affected at least 30 days prior to the 

date of the hearing. A public hearing was held in Austin, TX on March 20, 2007. 

The Colninissio~l circulated hearing notices of its intended action to the public, including interested 

persons, the Regional Adlninistrator of the EPA, and all applicable local air pollution control agencies. The 

public was invited to submit data, views, and reco~mnendations on the proposed amended and repealed rules 

and SIP revisions, either orally or in writing, at the hearing or during the colmnent period. Prior to the 

scheduled hearing, copies of the proposed amended and repealed rules and SIP revisions were available for 

public inspectioll at the Commission's ceiltral office and on the Commission's Web site. 

Data, views, and reco~mnendations of interested. persons regarding the proposed ainended and 

repealed rules and SIP revisions were subinitted to the Colninissioll during the colnineilt period, and were 

considered by the Colninission as reflected in the analysis of testiinoily iilcorporated by reference to this 
Docket No. 2006-2026-RUL 

3, , Data, views, and , reco~ninei~clatioi~s * of interested persoils regarding the proposed aineilded and 

repealed rules and SIP revisioils were submitted to the Coininissioil during the coillinellt period, and were 

considered by the Colnlnissioil as reflected in the ailalysis of testilnoily iilcosporated by reference to this 

Order. The Coininissioil finds that the ailalysis of testiinoily iilcludes the ilallles of all interested groups or 

associatioils offering coinlneilt on the proposed alneilded and repealed rules and the SIP revisioils and their 

position collcerllillg the same. 

IT IS THEREFORE ORDERED BY THE COMMISSION that the ainelldecl and repealed rules aid 

revisioils to the SIP incosporated by refereilce to this Order are hereby adopted. The Colnlnissioll further 

authorizes staff to inake ally non-substantive revisioils to the rules ilecessary to colnply with Texas Register 

requiremeilts. The adopted rules and the preamble to the adopted rules and the revisioils to the SIP are 

illcorporated by reference in this Order as if set forth at length verbatim in this Order. 

IT IS FURTHER ORDERED BY THE COMMISSION that on behalf of the Cornmission, the 

Chairman should trailsmit a copy of this Order, together with the adopted rules and revisions to the SIP, to 

the Regioilal Adlniilistrator of EPA as a proposed revision to the Texas SIP pursuant to the Federal Clean Air 

Act, ($ 110, codified at 42 U.S. Code AIIII. $$ 7401 - 7671q, as amended. 

This Order coilstitutes the Order of the Coinlnissioil required by the Adinillistrative Procedure Act, 

Tex. Gov't Code, ($ 2001.033 (Verilon 2000 & Verlloll Supp. 2005). 

If ally portion of this Order is for ally reasoil held to be invalid by a court of coinpeteilt jurisdiction, 

the illvalidity of ally portioil shall not affect the validity of the remaining portions. 

Date issued: A!JG O 2 2007 TEXAS COMMISSION ON 

ENVIRONMENTAL QUALITY 

Veen Hartnett White, Chairinail 
In 2003, the 78th Texas Legislature enacted HB 3459, adding 

TEC, $7.027 (renumbered to $7.028 in subsequent legislative 

session), which limits compliance monitoring by the state. TEC, 

$7.028, gives the board of trustees of a school district or the governing body of an open-enrollment charter school the primary responsibility for ensuring that the district or school complies with 

all applicable requirements of state educational programs. As a 

consequence of TEC, $7.028, activities relating to provisions under TEC, $37.008(m), including rulemaking requirements, were 

suspended. 

In addition to TEC. 57.028, TEC, 537.008(m-I), was added and 

directs the commissioner to identify districts that indicate high 

risk of data and compliance violations. As a result of these two 

legislative requirements, the TEA developed a new agency-wide 

Performance-Based Monitoring (PBM) system. This new monitoring system replaced the former process outlined in the rule 

being repealed and includes a data validation component. 

The adopted repeal of 19 TAC Chapter 97, Subchapter CC, 

$97.1021, implements these legislative changes. 

The public comment period on the proposal began June 1,2007, 

and ended July 1, 2007. No public comments were received. 

The repeal is adopted under the Texas Education Code (TEC), 

$7.028, which establishes a limitation on compliance monitoring (including suspension of rulemaking requirements under 

TEC, $37.008(m)) and TEC, 537.008(m-I), which directs the 

commissioner to identify districts that indicate a high risk of 

data and compliance violations. As a result of TEC, $7.028 

and $37.008(m-I), the TEA developed a new agency-wide 

Performance-Based Monitoring system that includes a data 

validation component. 

The repeal implements the TEC, $7.028 and $37.008(m-1). 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 26, 2007. 

TRD-200703247 

Cristina De La Fuente-Valadez 

Director. Policy Coordination 

Texas Education Agency 

Effective date: August 15, 2007 

Proposal publication date: June 1, 2007 

For further information, please call: (512) 475-1497 

TITLE 30. ENVIRONMENTAL QUALITY 

PART 1. TEXAS COMMISSION ON 

ENVIRONMENTAL QUALITY 

CHAPTER 10 1. GENERAL AIR QUALITY 

RULES 

The Texas Commission on Environmental Quality (TCEQ 

or commission) adopts amendments to $$I01 .I. 101.302, 

101.306, 101.350, 101.351, 101,353, 101.354, 101.360, 

101.372, 101.376, 101.383, and 101.385 and the repeal of 

$101.22. Sections 101 .I, 101.302, 101.306, 101.353, 101.354, 

and 101.376 are adopted with changes to the proposed text as 

published in the February 23, 2007, issue of the Texas Register. 

Sections 101.22, 101.350, 101.351, 101.360, 101.372, 101.383, 

and 101.385 are adopted without changes to the proposed text 

and will not be republished. 

The commission does not adopt the proposed amendment to 

$101.23 as published in the February 23, 2007, issue of the 

Texas Register. 

The amended $$I01 .I, 101.302, 101.306, 101.350, 101.351, 

101.353, 101.354, 101.360, 101.372, 101.376, 101.383, and 

101.385 and the repeal of $101.22 will be submitted to the United 

States Environmental Protection Agency (EPA) as revisions to 

the Texas State Implementation Plan (SIP). 

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS 

FOR THE ADOPTED RULES 

The commission has adopted revisions to 30 TAC Chapter 117, 

Control of Air Pollution from Nitrogen Compounds, as part of the 

SIP for the Houston-Galveston-Brazoria (HGB) and Dallas-Fort 

Worth nonattainment areas. Under those revisions, Chapter 117 

was reorganized. Chapter 101. General Air Quality Rules, contains references to sections of Chapter 117 which have changed 

due to the reorganization, requiring that the cited references 

in Chapter 101 also change. This adoption also includes revisions identified during the last quadrennial review of Chapter 

101, including changes to the definitions of cold solvent cleaning, conveyorized degreasing, high-volume low-pressure spray 

guns, open top vapor degreasing, standard conditions, and visible emissions. Other changes include the deletion of the definitions of hazardous waste management facility and hazardous 

waste management unit, the addition of a definition for nitrogen 

oxides, and the removal of an obsolete effective date section. 

EPA comments dealing with some references unrelated to the 

Chapter 117 reorganization, resulted in some changes. 

SECTION BY SECTION DISCUSSION 

$1 01.1. Definitions. 

The commission adopts the modification of the opening paragraph of this section to specify that the definitions in $101 .I apply 

to all air quality rules. The commission adopts the changes to the 

definitions of cold solvent cleaning, conveyorized degreasing, 

and open-top vapor degreasing by deleting the word "metal" so 

that the processes also apply to cleaning non-metal parts. The 

adopted amendment deletes the definitions of hazardous waste 

management facility and hazardous waste management unit because references to these definitions are not found in any of the 

air rules. The adopted revision to the definition of high-volume 

low-pressure spray guns specifies that the operating pressure of 

this equipment is measured at the air cap because this provides 

the most accurate measurement. The commission adopts the 

addition of the definition of nitrogen oxides from Chapter 117 because this is a common term used throughout the commission's 

air quality rules. The adopted amendment deletes the last sentence of the definition of standard conditions that reads: "Pollutant concentrations from an incineratorwill be corrected to a condition of 50% excess air if the incinerator is operating at greater 

than 50% excess air." The amount of air present in combustion 

is variable and does not qualify as a standard condition. The 

commission adopts the change in the second sentence of the 

definition of visible emissions to read: "The radiant energy from 

an open flame is not considered a visible emission under this 

definition." Radiant energy may manifest some visual effects but 

there is no air contaminant emitted. 

ADOPTED RULES August 10, 2007 32 TexReg 4985 
31 01.22. Effective Date. 

The commission adopts the repeal of this section because it is 

no longer required. 

3 10 1.302. General Provisions. 

The commission adopts the references to the newly renumbered 

Chapter 117 sections. The section has been revised since proposal due to a comment submitted by the EPA to remove the reference to §117.3310. Emission Specifications for Eight-Hour Attainment Demonstration, from §101.302(d)(l)(A) since the East 

Texas area is attainment for all pollutants. 

5 101.306. Emission Credit Use. 

The commission adopts the references to the newly renumbered 

Chapter 117 sections. The section has been revised since proposal to remove the reference to §I 17.3123 from §101.306(b)(3) 

because the rule does not require it to be referenced in the equation under Figure 30 TAC §101.306(b)(3). Also, references to 

maximum daily cap and references to emission credits that are to 

be used for compliance with the requirements of 30 TAC Chapters 114, Control of Air Pollution from Motor Vehicles, Chapter 

115, Control of Air Pollution from Volatile Organic Compounds 

(VOCs), or Chapter 117 or other programs, were added to this 

section since proposal due to a comment submitted by the EPA. 

3 101.350. Definitions. 

The commission adopts the replacement of the definition of 

HoustonlGalveston (HGA) ozone nonattainment area with HGB 

ozone nonattainment area because the name of the nonattainment area has changed. 

$1 01.351. Applicability. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

5 10 1.353. Allocation of Allowances. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. This section has been changed since proposal to add 

references to sections dealing with Initial Demonstration of Compliance. These changes were unrelated to the comments submitted by EPA. 

5101.354. Allowance Deductions. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

51 01.360. Level of Activity Certification. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

51 01.372. General Provisions. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

3 10 1.376. Discrete Emission Credit Use. 

The comm~ssion adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. This section has been changed since proposal due to a 

comment submitted by the EPA to correctly reference maximum 

daily caps instead of rolling 30-day average emission caps. 

3 10 1.383. General Provisions. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

51 01.385. Recordkeeping and Reporling. 

The commission adopts the replacement of references to Chapter 117 section numbers with the newly renumbered Chapter 117 

sections. 

The commission also adopts minor administrative changes to 

address conformity to Texas Register requirements and other 

agency rules and guidelines. 

FINAL REGULATORY IMPACT ANALYSIS DETERMINATION 

The commission reviewed the adopted rulemaking in light of the 

regulatory impact analysis requirements of Texas Government 

Code, §2001.0225, and determined that this adoption is not subject to §2001.0225 because it does not meet the definition of a 

major environmental rule as defined in that statute. A "major environmental rule" means a rule, the specific intent of which is to 

protect the environment or reduce risks to human health from 

environmental exposure and that may adversely affect in a material way the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector 

of the state. Although the ultimate intent is to protect.the environment, these adopted amendments are mainly the result of 

an administrative action only, to correct and update cross-references to Chapter 117, which has been reorganized, modify certain definitions, and make other procedural changes to Chapter 

101. 

Chapter 117, Control of Air Pollution from Nitrogen Compounds, 

has been reorganized. Chapter 101, General Air Quality Rules, 

contains extensive references to sections of Chapter 117 that 

were renumbered because of the reorganization. The references contained in Chapter 101 must change accordingly. 

This adoption also includes revisions identified during the last 

quadrennial review of Chapter 101 by the executive director and 

includes changes to the definitions of visible emissions, cold 

solvent cleaning, conveyorized degreasing, open-top vapor degreasing, high-volume low-pressure spray guns, and standard 

conditions. Other adopted changes include deleting the definitions of hazardous waste management facility and hazardous 

waste management unit, adding a definition for nitrogen oxides, 

and removing an obsolete effective date section. The adopted 

rules will not adversely affect in a material way the economy, 

a sector of the economy, productivity, competition, jobs, the 

environment, or the public health and safety of the state or a 

sector of the state. 

In addition, a regulatory impact analysis is not required because 

the rules do not meet any of the four applicability criteria for 

requiring a regulatory impact 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 

32 TmReg 4986 Allgrist 10, 2007 Texas Register 
powers of the agency instead of under a specific state law. This EPA and Eternal Springs Wellness during the public comment 

rulemaking does not exceed a standard set by federal law, and period, which closed on March 26, 2007. 

the adopted requirements are consistent with applicable federal 

standards. In addition, this adoption does not exceed an express requirement of state law and is not adopted solely under 

the general powers of the agency, but is specifically authorized 

by the provisions cited in the STATUTORY AUTHORITY section 

of this preamble. Finally, this rulemaking does not exceed a 

requirement of a delegation agreement or contract to implement 

a state and federal program. 

The commission solicited comments on the draft regulatory impact analysis determination and no comments were received. 

TAKINGS IMPACT ASSESSMENT 

The commission evaluated this rulemaking action and performed 

an analysis of whether the adopted rules are subject to Texas 

Government Code, Chapter 2007. The primary purpose of the 

rulemaking is to update references to sections of Chapter 117, 

which has been reorganized, to modify certain definitions, and to 

make other procedural changes to Chapter 101. These amendments do not affect private property in a manner that restricts 

or limits an owner's right to the property that would otherwise 

exist in the absence of the governmental action. Promulgation 

and enforcement of these adopted rules is neither a statutory 

nor a constitutional taking because they do not affect private real 

property. Therefore, these rules do not constitute a taking under 

Texas Government Code, Chapter 2007. 

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM 

The commission reviewed the adopted rulemaking and found 

the adoption is a rulemaking identified in the Coastal Coordination Act Implementation Rules. 31 TAC §505.11(b)(2), relating 

to rules subject to the Coastal Management Program, and will, 

therefore, require that goals and policies of the Texas Coastal 

Management Program (CMP) be considered during the rulemaking process. The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with 

the regulations of the Coastal Coordination Council and determined that the amendments are consistent with CMP goals and 

policies. The CMP goal applicable to this rulemaking action is 

the goal to protect, preserve, and enhance the diversity, quality, 

quantity, functions, and values of coastal natural resource areas (31 TAC §501 .I 2(1)). The adopted rules update references 

and definitions. No new sources of air contaminants will be authorized and the revisions will maintain the same level of emissions control as previous rules. The CMP policy applicable to 

this rulemaking action is the policy that the commission's rules 

comply with federal regulations in 40 Code of Federal Regulations, to protect and enhance air quality in the coastal areas (31 

TAC §501.14(q)). This rulemaking action complies with 40 Code 

of Federal Regulations Part 51, Requirements for Preparation, 

Adoption, and Submittal of lmplementation Plans. Therefore, in 

accordance with 31 TAC §505.22(e), the commission affirms that 

this rulemaking action is consistent with CMP goals and policies. 

EPA suggested modifications to the adopted rules as stated in 

the RESPONSE TO COMMENTS section of this preamble, and 

commented that they appreciate efforts made to update definitions and references in Chapter 101 that are changing due to the 

reorganization of Chapter 117. 

RESPONSE TO COMMENTS 

Eternal Springs Wellness commented that they oppose delaying 

the plan until 2018 and would like to see cleaner air now. Eternal 

Springs Wellness commented that they would like to see the implementation of California standards and VOC storage tankldebassing regulations strengthened and implemented by January 

1, 2009. 

RESPONSE 

The commission appreciates the commenters' interest in air 

quality. The comments do not relate to the proposed Chapter 

101 revisions, and no changes to the rule have been made in 

response to them. 

EPA noted that since §101.23 is no longer part of the federally 

approved regulations in the Texas SIP, they would be unable to 

approve the proposed administrative changes to this section. 

RESPONSE 

The commission agrees that §101.23 is not part of the federally approved regulations in the Texas SIP. The commission applies the conditions of this section either through other rules of 

the commission or through individual permits, and the proposed 

amendments to §I 01.23 have not been adopted. 

EPA noted that, to be included in the Texas SIP, the Alternate 

Emission Reduction Policy would need to be developed in accordance with EPA's guidance on economic incentive programs, 

as well as meet applicable Clean Air Act requirements. 

RESPONSE 

The commission is not currently considering whether to adopt 

any rules regarding an alternate emission reduction policy. 

EPA commented that §101.302(d)(l)(A) incorrectly references 

§117.3310, since emission reduction credits (ERCs) only apply 

to nonattainment areas. 

RESPONSE 

The rule has been revised to remove the reference to §117.3310. 

EPA commented that there is an inconsistency in §101.306(b)(3) 

with Figure 30 TAC §101.306(b)(3) and §101.376(d)(2) with 

Figure 30 TAC 51 01.376(d)(Z)(A). Sections 101.306(b)(3) and 

101.376(d)(2) allow the use of credits for compliance with 

§117.3123 but the section is not included in the figures Figure: 

30 TAC §101.306(b)(3) and Figure: 30 TAC §101.376(d)(2)(A). 

RESPONSE 

The rule has been revised to remove the reference to §117.3123 The commission solicited comments on the consistency of this from ~101,306(b)(3), Section 117~9800 allows ERCs and dis- rulemaking, but no comments on the CMP were received. Crete emission reduction credits (DERCs) to be used for alternaPUBLIC COMMENT tive compliance with $117.3123. However, the equation to determine compliance to the source cap in §117.3123is different from A public hearing on the proposa was held in Austin on March 20, the equa(ons in Figure 30 glol ,306(b)(3) and Figure 30 *Oo7 at the TCEQ No comments were received at the public TAC §lOl376(d)(2)(A)(i). For compliance with §117.3123, the hearing. The commission received written comments from the equations in §117.3123 are required to be used in place of Figure 

30 TAC §101.306(b)(3) or Figure 30 TAC §101.376(d)(Z)(A)(i). 

ADOPTED RULES Augnsi 10,2007 32 TexReg 4987 
EPA commented 

not reference the 

$1 01.306(b)(2). 

that Figure 30 TAC $101.306(b)(3) does 

maximum daily cap requirements found in 

RESPONSE 

The rule has been revised to include references to both the 30- 

day rolling average and the maximum daily cap average requirements for system caps and s o u r c e c a p s . 

EPA commented that Figure 30 TAC §101.376(d)(2)(A)(ii) incorrectly references $$117.123(b)(l), 11 7.223(b)(I), 117.323(b)(I), 

and 117.423(b)(I), which refer to rolling 30-day average emission caps instead of maximum daily caps. 

RESPONSE 

The rule has been revised to chancle the citations 

to $117123(b)(2) 117.223(b)(2), 117.323(b)(2) and 

11 7.423(b)(2). 

SUBCHAPTER A. GENERAL RULES 

30 TAC §101.1 

STATUTORY AUTHORITY 

The amendment is adopted under Texas Water Code (TWC). 

$5.102, concerning General Powers, that provides the commission with the general powers to carry out its duties under 

the Texas Water Code; TWC, $5.103, concerning Rules, that 

authorizes the commission to adopt rules necessary to carry 

out its powers and duties under the Texas Water Code; TWC, 

$5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC), 

3382.017, concerning Rules, that authorizes the commission 

to adopt rules consistent with the policy and purposes of the 

Texas Clean Air Act. The amended section is also adopted 

under THSC, $382.002, concerning Policy and Purpose, that 

establishes the commission's purpose to safeguard the state's 

air resources. consistent with the ~rotection of Dublic health. 

general welfa're, and physical property; §382.01i, concerning 

General Powers and Duties. that authorizes the commission 

to control the quality of the state's air; and $382.012, concerning State Air Control Plan, that authorizes the commission to 

prepare and develop'a general, comprehensive plan for the 

proper control of the state's air. The amended section is also 

adopted under $382.016, concerning Monitoring Requirements; 

Examination of Records, that authorizes the commission to 

prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions; and $382.051, concerning 

Permitting Authority of Commission; Rules, that authorizes 

the commission to issue permits and adopt rules necessary 

for permits issued under THSC, Chapter 382. The amended 

section is also adopted under the Federal Clean Air Act, 42 

United States Code, §$7401 - 7671q. 

The amended section implements THSC, $$382.002, 382.011. 

382.012, 382.016, 382.017, and 380.051 

Unless specifically delined in the Texas Clean Air Act (TCAA) or in 

the rules of the commission, tlie tenils used by the commission have 

the meanings commonly ascribed to them in the field of air pollution 

control. In addition to the terms that are defined by the TCAA, thc 

following terms, when used ill the air quality rules in this title, have the 

following meanings, unless the context clearly indicates otherwise. 

(1) Account--For tl~ose sources required to be permitted 

under Chapter 122 of tl~is title (relating to Federal Operati~~g Permits 

Program), all sources that are aggregated as a site. For all otl~er sources, 

any combination of sources under common ownership or control and 

located on one or more contiguous properties, or properties contiguous except for intervening roads, railroads, rights-of-way, waterways, 

or similar divisions. 

(2) Acid gas flare--A flare used exclusively for the incineration of hydrogen sulfide and other acidic gases derived from natural 

gas sweetelling processes. 

(3) Agency established facility identification number--For 

the purposes of Subchapter F of this chapter (relating to Emissions 

Events and Scheduled Maintenance, Startup, and Shutdown Activities), a unique alphanumeric code required to be assigned by the owner 

or operator of a regulated entity that the emission inventory reporting 

requirements of 9 101.10 of this title (relating to Emissions Inventory 

Requirements) are applicable to each facility at that regulated entity. 

(4) Ambient air--That portion of the atmosphere, external 

to buildings, to which the general public has access. 

(5) Background--Background concentration, the level of 

air contaminants that cannot be reduced by controlling emissions from 

man-made sources. It is determined by measuring levels in non-urban 

areas. 

(6) Boiler--Any combustion equipment fired with solid, 

liquid, and/or gaseous fuel used to produce steam or to heat water. 

(7) capture system--All equipment (including, butnot limited to, hoods, ducts, fans, booths, ovens, dryers, etc.) that contains, 

collects, and transports an air pollutant to a control device. 

(8) Captured facility--A manufacturing or production facility that generates an industrial solid waste or hazardous waste that is 

routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within 

a co~itiguous manufacturing complex. 

(9) Carbon adsorber--An add-on control device that uses 

activated carbon to adsorb volatile organic compounds from a gas 

stream. 

(10) Carbon adsorption system--A carbon adsorber with an 

inlet and outlet for exhaust gases and a system to regenerate the saturated adsorbent. 

(1 1) Coating--A material applied onto or impregnated into 

a substrate for protective, decorative, or functional purposes. Such materials include, but are not limited to, paints, varnishes, sealants, adllesives, tl~inners, diluents, inks, maskants, and temporary protective 

coatings. 

(12) Cold solvent cleaning--A batch process that uses liquid solvent to remove soils from the surfaces of parts or to dry the parts 

by spraying, brusliing, flushing, and/or immersion while ~naintaining 

tlie solve~~i below its boiling point. Wipe cleaning (hand cleaning) is 

not included in tl~is definition. 

(13) Combustion unit--Any boiler plant, furnace, incinerato!., flare, engine, or other device or system used to oxidize solid, liquid, 

or gaseous fuels, but excluding motors and engines used in propelling 

land. water, and air vehicles. 

(14) Combustion turbine--Any gas turbine system that is 

gas andlor liquid fuel fired with or witllout power augmentation. This 

unit is either attached to a foundation or is portable equipment operated 

at a specific minor or major source fol- more than 90 days in any 12- 

32 TexReg 4988 Aligzist 10, 200 7 Texus Register 
month period. Two or morc gas turbines powering one shaft w~ll be 

treated as one unit. 

(15) Commercial hazardous wastc management Bcility--Any hazardous waste management facility that accepts hi~zardous 

waste or polychlorinated biphenyl compounds for a charge, except a 

c;~ptured facility that disposes only waste generated on-sitc or a racility 

that accepts waste only from other facilities owned or crfectively 

controlled by the same person. 

(16) Co~nmercial incinerator--An inc~nerator uscd to dispose or waste material from retail and wholesale trade establ~shmcnts. 

(1 7) Commercial medical waste incinerator--A facility that 

accepts for incineration medical waste generated outside the property 

boundaries of the facility. 

(1 8) Component--A piece of equipment, including, but not 

limited to, pumps, valves, compressors, and pressure relieSval\les that 

has the potential to leak volatile organic compounds. 

(19) Conclcnsate--Liquids that result from the cooling 

andlor pressure changes of produced natural gas. Once these liquids 

are processed at gas plants or refineries or in any other manner, they 

are no longer considered condensates. 

(20) Construction-demolition waste--Waste resulting from 

construction or demolition projects. 

(21) Control system or control device--Any part, chemical, 

machine, equipment, contrivance, or combination of same, used to destroy, eliminate, reduce, or control the emission of air contaminants to 

the atmosphere. 

(22) Conveyorized degreasing--A solvent cleaning process 

that uses an automated parts handling system, typically a conveyor, to 

automatically provide a contilluous supply of parts to be cleaned or 

dried using either cold solvent or vaporized solvent. A conveyorized 

degreasing process is fully enclosed except for the conveyor inlet and 

exit portals. 

(23) Criteria pollutant or standard--Any pollutant for 

which there is a national ambient air quality standard established under , 40 Code of Federal Regulations Part 50. 

(24) Custody transfer--The transfer of produced crude oil 

andlor condensate, afterbrocessing andlor treating in the producing operations. from storage tanks - or automatic transfer facilities to pipelines . . or any other forms of transportation. 

(25) Deminimis impact--A change in ground level concentration of an air contaminant as a result of the operation of any new 

m;ilor stationary source or of the operatton of any existing source that 

has undergone a major modification that does not exceed the following 

specified amounts. 

Figure: 30 TAC 9 I0 I. l(25) (No change.) 

(26) Domestic wastes--The garbage and rubbish normally 

resulting from the fi~nctions of life within a res~dence. 

(27) Emissions banking--A system for record~ng emissions 

reduction credits so they may be used or transferred for future use. 

(28) Emissions event--Any upset event or ~~nscheduled 

maintenance, startup, or shutdown activity, from a common cause that 

results in unauthorized emissions of air contaminants from one or 

more emissions points at a regulated entity. 

(29) Emissions reduction credit--Any stationary source 

em~ssions reduction that has been banked in accordance with Chapter 

101, Subchapter H, Division 1 of this title (relating to Emission Credit 

Banking and Trading). 

(30) E~nissions reduction crcdit cerlilicatc--The ccrtificale 

issued by the executive director that indicates the amount of qualified 

reduction available for use as offsets and thc length of lime the reduction is eligible for use. 

(3 1) Emissions unit--Any part of a stationary source that 

emits, or would have the potential to emit, any pollutant subject lo 

regulation under the Federal Clean Air Act. 

(32) Excess opacity event--When an opacity reatling is 

equal to or exceeds 15 additional percentage points above an applicable opacity limit, averaged over a six-minute period. 

(33) Exempt solvent--Those carbon compo~111ds or mixtures of carbon compounds used as solvents that have bcen excluded 

from the defini tion of volatile organic compound. 

(34) External Roating roof--A cover or roof in an open top 

tank that rests upon or is floated upon the liquid being contained and 

is equipped with a single or double seal to close the space between 

the roof edge and tank shell. A double seal consists of two complete 

and separate closure seals, one above the other, containing an enclosed 

space between them. 

(35) Federal motor vehicle regulation--Control of Air Pollution from Motor Vehicles and Motor Vehicle Engines. 40 Cocle of 

Federal Regulations Part 85. 

(36) Federally enforceable--All limitations and conditions 

that are enforceable by the United States Environmental Protection 

Agency administrator, including those requirements developed under 

40 Code of Federal Regulations (CFR) Parts 60 and 61 ; requirements 

within any applicable state implementation plan (SIP); and any pennit 

requirements established under 40 CFR $52.21 or under regulations 

approved under 40 CFR Part 5 1, Subpart 1, including operating permits issued under the approved program that is incorporated into the 

SIP and that expressly requires adherence to any pennit issued under 

such program. 

(37) Flare--An open combustion un~t (i.e., lacking an enclosed combustion chamber) whose combustion air is provided by uncontrolled ambient air around the flame, and that is used as a control 

device. A flare may be equipped with a radiant heat shield (with or 

without a refractory lining), but is not equipped with a flame air control damping system to control the airlfuel mixture. In addition, a flare 

may also use auxiliary fuel. The combustion flame may be elevated or 

at ground level. A vapor combustor, as defined in this section, is not 

considered a flare. 

(38) Fuel oil--Any oil meeting the American Society for 

Testing and Materials (ASTM) specifications for file1 oil in ASTM 

D396-01, Standard Specifications for Fuel Oils, revised 2001. This 

includes fuel oil grades I, 1 (Low Sulfur), 2,2 (Low Sulfur), 4 (Light), 

4, 5 (Light), 5 (Heavy), and 6. 

(39) Fugitive emission--Any gaseous or particulate contaminant entering the atmosphere that could not reasonably pass 

through a stack, chimney, vent, or other functionally equivalent 

opening designed to direct or control its Ilow. 

(40) Garbage--Solid waste consisting ofputrescible animal 

and vegetable waste materials resulting from the handling, preparation, cooking, and consumption of Food, including waste materials from 

~narkets, storage facilities, and handling and sale of produce and other 

rood products. 

(41) Gasoline--Any petroleum distillate having a Re~d vapor pressure of four pounds per square inch(27.6 kilopascals) or greater 

that is produced for use as a motor fuel, and is commonly called gasoline. 

ADOPTED RULES Azigz~st 10, 2007 32 TexReg 4989 
(42) Hazardous wastes--Any solid waste identified or listed 

as a hazardous waste by the administrator of the United States Environmental Protection Agency under the federal Solid Waste Disposal Act, 

as amended by Resource Conservation and Recovery Act, 42 United 

States Code, $56901 el seq., as amended. 

(43) Heatset (used in offset lithographic printing)--Any operation where heat is required to evaporate ink oil from the printing ink. 

Hot air dryers are used to deliver the heat. 

(44) High-bake coatings--Coatings designed to cure at 

teml~eratures above 194 degrees Fahrenheit. 

(45) High-volome low-pressure spray guns--Equipment 

used to apply coatings by means of a spray gun that operates between 

0.1 and 10.0 pounds per square inch gauge air pressure measured at 

tlie air cap. 

(46) Incinerator--An enclosed combostion apparatus and 

attach~nents that is used in the process of burning wastes for the primary purpose of reducing its volume and weight by removing the combustibles of tlie waste and is equipped with a flue for conducting prod- . .. -. 

ucts of combustion to the atmospliere. Any combustion device that 

burns 10% or more of solid waste on a total British thennal unit (Btu) 

heat input basis averaged over any one-hour period is considered to 

be an incinerator. A combustion device without instrumentation or 

~netliodology to determine hourly Aow rates of solid waste and burning 

1.0% or more of solid waste on a total Btu heat input basis averaged 

annually is also considered to be an incinerator. An open-trench type 

(with closed ends) combustion unit may be considered an incinerator 

when approved by the executive director. Devices burning untreated 

wood scraps, waste wood, or sludge from the treatment of wastewater 

from the process mills as a primary fuel for heat recovery are not included under this definition. Combustion devices permitted under this 

title as combustion devices other than incinerators will not be considered incinerators for application of any n~le within this title provided 

they are installed and operated in co~npliance with the condition of all 

applicable pennits. 

(47) Industrial boiler--A boiler located on the site of a facility engaged in a ~nanufacturing process where substances are transfonned into new products, including the co~nponent parts of products, 

by mechanical or chemical processes. 

(48) Industrial furnace-Cement kilns; lime kilns; aggregate kilns; pl~osphate kilns; coke ovens; blast furnaces; smelting, 

melting, or refi~iiiig furnaces, including pyrotnetallurgical devices 

such as cupolas, reverberator furnaces, sintering machines, roasters, 

or foundry furnaces; titanium dioxide chloride process oxidation 

reactors; ~netliane reforming furnaces; pulping recovery furnaces; 

combustion devices used in the recovery of sulfur values from spent 

sulf~~ric acid; and otlier devices the co~n~nission may list. 

(49) Industrial solid waste--Solid waste resulting from. or 

incidental to, any process of industry or manufacturing, or mining or 

agricultural operations, classified as follows. 

(A) Class I industrial solid waste or Class I waste is any 

industrial solid waste designated as Class 1 by tlie executive director 

as any industrial solid waste or mixture of industrial solid wastes that 

because of its concentration or physical or chemical characteristics is 

toxic. corrosive, flammable, a strong sensitizer or irritant, a generator 

of sudden pressure by decomposition, heat, or otlier means, and may 

Ipose a substantial present or potential clanger to human health or the 

el~vironment when improperly processed, stored, transported, 01. 0ther\vise managed, including hazardous industrial waste, as defined in 

$335.1 and $335.505 of this title (relating to Definitions and Class I 

Waste Determination). 

(B) Class 2 industrial solid waste is any individual solid 

waste or combination ofindustrial solid wastes that cannot be described 

as Class 1 or Class 3, as defined in $335.506 of this title (relating to 

Class 2 Waste Determination). 

(C) Class 3 industrial solid waste is any inert and essentially insoluble industrial solid waste, including materials such as rock, 

brick, glass, dirt, and certain plastics and rubber, ctc., that are not readily decomposable as defined in $335.507 of this title (relating to Class 

3 Waste Determination). 

(50) Internal floating cover--A cover or floating roof in a 

fixed roof tank that rests upon or is floated upon the liquid being contained, and is equipped with a closure seal or seals to close tlie space 

between the cover edge and tank shell. 

(51) Leak--A volatile organic compound concentration 

greater than 10,000 parts per nil lion by volume or the amount specified by applicable rule, whichever is lower; or tlie dripping or exuding 

of process fluid based on sight, smell, or sound. 

(52) Liquid fuel--A liquid combustible mixture, not derived from hazardous waste, with a heating value of at least 5,000 

British tliennal units per pound. 

(53) Liquid-mounted seal--A primary seal mounted In continuous contact with the liquid between the tank wall and the floating 

roof around tlie circumference of tlie tank. 

(54) Maintenance area--A geographic region of the state 

previously designated nonattainment under tlie Federal Clean Air Act 

Amendments of 1990 and subsequently redesignated to attainment subject to the requirement to develop a maintenance plan under 42 United 

States Code, $7505~ The following are the maintenance areas within 

the state: 

(A) Victoria Ozone Maintenance Area 60 (Fedeml 

Regisie~. (FR) 12453) - Victoria County; and 

(B) Collin County Lead Maintenance Area (64 FR 

55421) - Portion of Collin County. Eastside: Starting at the intersection of South Fifth Street and the fence line approximately 1,000 

feet soutli of the Exide property line going north to tlie intersection of 

South Fiftli Street and Eubanks Street; Nortliside: Proceeding west 

on Eubanks to tlie Burlington Railroad tracks; Westside: Along the 

Burlington Railroad tracks to tlie fence line approximately 1,000 feet 

soutli of tlie Exide property line; Southside: Fence line approximately 

1.000 feet south of tlie Exide property line. 

(55) Maintenance plan--A revision to tlie applicable state 

i~nplementation plan, meeting the requirements of 42 United States 

Code, $7505~ 

(56) Marine vessel--Any watercraft used, or capable of being used, as a means of transportation on water, and that is constructed 

or adapted to carry, or that carries, oil, gasoline, or other volatile organic liquid in bulk as a cargo or cargo residue 

(57) Mechan~cal shoe seal--A metal sheet that is held vertically against the storage tank wall by springs or weighted levers and is 

connected by braces to the Roating roof. A flexible coated fabric (envelope) spans the annular space between the metal sheet and the floating 

roof. 

(58) Medical waste--Waste materials identifled by the Department of State Health Serv~ces as "special waste from liealtli care-reIated facilit~es" and those waste niaterials co~n~ningled and discarded 

with spec~al waste from health care-related facilities. 

(59) Metropolltan Planning Organization--That organization designated as being responsible, together with tlie state, for 

32 TexReg 4990 Allgust 10, 2007 Texas Register 
conducting thc continuing, cooperativc, and comprchensive planning 

process under 23 United States Code (USC), 3 134 and 49 USC, $1607. 

(60) Mobile emissions reduction credit--The credit obtained from an enforceable, permanent, quantifiable, and surplus 

(to other federal and state rules) emissions rcduction generated by 

a mobile source as set forth in Chapter 114, Subchapter F of this 

title (relating to Vehicle Retirement and Mobilc Emission Reduction 

Credits), and that has been banked in accordance with Subchapter H, 

Division I of this chapter. 

(61) Motor vehicle--A self-propelled vehicle designed for 

transporting persons or property on a street or highway. 

(62) Motor vehicle fuel dispensing facility--Any site where 

gasoline is dispensed to motor vehicle fuel tanks fro111 stationary storage tanks. 

(63) Municipal solid waste--Solid waste resulting from, or 

incidental to, municipal, community, commercial, institutional. and 

recreational activities, includi~lg garbage, rubbish, ashes, street cleaning~, dead animals, abandoned automobiles, and all other solid waste 

except industrial solid waste. 

pertinent Federal Regislet. (FR) notices. Thc rollowi~lg arcns comprise 

the nonattainment areas within the state Tor all national ambient air 

standards (NAAQS). EPA has indicated that it will rcvokc the 

one-hour ozone s~andard in full, including tlle associated designalions 

and classifications, on June 15, 2005, which is one year rollowing the 

effective date of the designalions for the eight-hour NAAQS of June 

15, 2004. 

(A) Carboll monoxide (CO). El Paso CO nonattainment 

arca (54 FR 56694)--Classified as a Moderate CO nonattainment area 

with a design value less than or equal to 12.7 parts per million. Portion 

of El Paso County. Portion of the city limits of El Paso: That portion of 

the City of El Paso bounded on the north by Highway 10 from Porlirio 

Diaz Street to Raynolds Street, Raynolds Street from Highway 10 to 

the Southern Pacific Railroad lines, the Southern Pacific Railroad lines 

from Raynolds Street to Highway 62, Highway 62 from the Southern 

Pacific Railroad lines to Highway 20, and Highway 20 from Highway 

62 to Polo Inn Road. Bounded on the cast by Polo Inn Road from 

Highway 20 to the Texas-Mexico border. Bounded on the south by 

the Texas-Mexico border from Polo Inn Roatl to Porfirio Diaz Street. 

Bounded on the west by Porfirio Diaz Street from the Texas-Mexico 

border to Highway 10. ~ ~ 

(64) Municipal solid waste facility--All contiguous land, (B) Inhalable particulate matter (PM,,). El Paso PM,,, structures, other appurtenances, and iln~rovements on the land used llonattainment area (56 FR 56694)--Classified as a Moderate pM,,, for processing, storing, Or "lid waste. A may ,,onattainment area, Portion of El paso County that colnprises the El bc publicly or privately owned and may consist of several processing, Paso city limit boundaries as they existed on November 15, 1990. storage, or disposal operational units, e.g., one or Inore landfills, surface impoundments, or combinations of them. (C) Lead. No designated nonattainment areas. 

(65) Municipal solid waste landfill--A discrete area of land 

or an excavation that receives household waste and that is not a land 

application unit, surface impou11dment, injection well, or waste pile, as 

those terms are defined under 40 Code of Federal Regulations $257.2. 

A municipal solid waste landfill (MSWLF) unit also may receive other 

types of Resource Conservation and Recovery Act Subtitle D wastes, 

such as commercial solid waste, nonhazardous sludge, conditionally 

exempt small-quantity generator waste, and industrial solid waste. 

Such a landfill may be publicly or privately owned. An MSWLF unit 

may be a new MSWLF unit, an existing MSWLF unit, or a lateral 

expansion. 

(D) Nitrogen dioxide. No designated nonattainment areas. 

(E) Ozone (one-hour) 

(i) Houston-Galveston-Brazoria (HGB) one-hour 

ozone nonattainment area (56 FR 56694) - Classified as a Severe-1 7 

ozone nonattainment area. Consists of Brazoria, Chambers, Fort 

Bend, Galveston, I-larris, Liberty, Montgomery, and Waller Counties. 

(ii) El Paso one-hour ozone nonattainment area (56 

FR 56694) -Classified as a Serious ozone nonattainment area. Consists 

of El Paso Countv. 

(66) National ambient air quality standard--Those stan- 

(izi) Beaumont-Port Arthur (BPA) one-hour ozone dards established under 42 United States Code, $7409, including nonattainment area (69 FR 16483) - Classified as a Serious ozone standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhal- nonattainment area. Consists of Hardin, Jefferson, and Orangc Coun- able particulate matter, and sulfur dioxide. ties. 

(67) Net ground-level conccntration--The concentration or (iv) Dallas-Fort Worth one-hour ozone nonattain- an air contaminant as measured at or beyond the property boundary ment area (63 FR 8 128) - Classified as a Serious ozone nonattainment minus the representative concentration flowing onto a propcrty as mea- area. Consists of Collin, Dallas, Denton, and Tarrant Counties. sured at any point. Where there is no expected influence of the air contaminant noking onto a property from other sources, the net ground (F) Ozone (eight-hour). 

level concentration may be determined by a measurement at or beyond (i) HGB eight-hour ozone nonattainment area (69 the property boundary. FR 23936) - Classiiied as a Moderate ozone nonattainment area Con- 

(68) New source--Any stationary source, the construction sists of Brazoria, Chambers, Fort Bend. Calveston, Harris, Liberty, 

or modification of which was commenced after March 5, 1972. Montgomery, and Waller Counties. 

(69) Nitrogen oxides (N0~)--The sum of the n~tric oxide (ii) BPA eight-hour ozone nonattainment area (69 

and nitrogen dioxide in the flue gas or emission point, collectively ex- FR 23936) - Classified as a Marginal ozone nonattainment area. Conpressed as nitrogen dioxide. sists of Hardin, Jefferson, and Orange Counties. 

(70) Nonattainment area--A defined region within the (iii) Dallas-Fort Worth eight-hour ozone nonattainstate that is designated by the United States Environ~nental Pro- ment area (69 FR 23936) - Classified as a Moderate ozonc nonaltaintection Agency (EPA) as failing to meet the national ambient air ment area. Consists of Collin, Dallas, Denton. Ellis. Johnson, Kaufquality standard for a pollutant for which a stalldart1 exists. Tile EPA man, Parker. Rockwall, and Tarrant Counties. 

will designate the area as nonattainmenl under the provisions of 42 

United States Code, $7407(d). For the oficial list ant1 boundaries of (iv) San Antonio eight-hour ozone nonattainment 

nonattainment areas, see 40 Code of Federal Regulations Part 81 and area (69 FR 23936) - Classified under the Federal Clean Air Act, Title 

ADOPTED RULES August 10, 2007 32 TexReg 4991 
1, Part D, Subpart 1 (42 United States Code. $7502), nonattainment 

deferred to September 30,2005, or as extended by EPA. 

(G) Sulfur dioxide. No designated nonattainment areas. 

(71) Non-reportable emissions event--Any emissions 

event that in any 24-hour period does not result in an unautl~orized 

emission from any ernissions point cqual to or in excess of the reportable quantity as defined in this section. 

(72) Opacity--The degree to which an emission of air contaminants obstructs the transmission of light expressed as the percentage of light obstn~cted as measured by an optical instru~nent or trained 

observer. 

(73) Open-top vapor degreasing--A batch solvent cleaning 

process that is open to the air and that uses boiling solvent to create 

solvent vapor used to clean or dry parts througl~ condensation of the 

hot solvent vapors on the parts. 

(74) Outdoor burning--Any fire or smoke-producing 

process that is not conducted in a combustion unit. 

(75) Particulate matter--Any material, except uncombined 

water, that exists as a solid or liquid in the atmosphere or in a gas stream 

at standard conditions. 

(76) Particulate matter emissions--All finely-divided solid 

or liquid material, other than uncombined water, emitted to the ambient 

air as measured by United States Environmental Protection Agency 

Reference Method 5, as specified at 40 Code of Federal Regulations 

(CFR) Part 60, Appendix A, modified to include particulate caught by 

an impinger train; by an equivalent or alternative method! as specified 

at 40 CFR Part 5 1 ; or by a test method specified in all approvecl state 

implementation plan. 

(77) Petroleum refinery--Any facility engaged in producing gasoline, kerosene, distillate fuel oils, residual fuel oils. lubricants, 

or other products through distillation of crude oil, or through the redistillation, cracking, extraction, reforming, or other processing of unfinished petroleunn derivatives. 

(78) PM,,,--Particulate matter with an aerodynamic dia~neter less than or equal to a nominal ten micrometers as measured by a 

reference method based on 40 Code of Federal Regulations (CFR) Part 

50, Appendix I, and designated in accordance with 40 CFR Part 53, or 

by an equivalent neth hod designated with that Part 53. 

(79) PM," e~nissions--Finely-divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal ten 

micrometers emitted to the ambient air as measured by an applicable 

reference method, or an equivalent or alternative method specified in 

40 Codc of Federal Regulations Part 5 1, or by a test method specified 

in an approved state implementation plan. 

(80) Polychlorinated biphenyl compound--A co~npound 

subject to 40 Code of Federal Regulations Part 761. 

(81) Process or processes--Any action, operation, or treatment embracing chemical, com~nercial, industrial. or manufacturing 

factors suc11 as co~nbustion units, kilns, stills, dryers, roasters, and 

equipment used in connection therewith, and all other methods or for~ns 

of manufacturing or processing that may emit smoke. particulate matter, gaseous matter, or visible ernissions. 

(82) Process weight per hour--"Process weight" is the total weight of all materials introduced or recirculated into any specific 

process tl~at may cause any discharge of air contaminants into the atmosphere. Solid fuels charged into the process will be considered as 

part of the process weight, but liquid and gaseous fuels and combustion 

air will not. The "process weight per hour" will be derived by dividing the total process weight by thc numbcr of hours in one complete 

operation from the beginning of any given process to the completion 

thereof, excluding any time during that the equipment used to conduct 

the process is idle. For contin~~ous operation, the "process weight per 

hour" will be derived by dividing the total process weight for a 24-hour 

period by 24. 

(83) Property--All land under common control or ownership coupled with all improvements on such land, and all fixed or Inovable objects on such land, or any vessel on the waters of this state. 

(84) Reasonable fi~rther progress--Annual incremental reductions in emissions of the applicable air contaminant that are suficient to provide for attainment of the applicable national ambient air 

quality standard in the designated nonattainment areas by the date required in the state implementation plan. 

(85) Regulated entity--All regulated units, facilities, equipment, structures, or sources at one street address or location that are 

owned or operated by the same person. The tenn includes any property under comlnon ownership or control identified in a permit or used 

in conjunction with the regulated activity at the same street address or 

location. Owners or operators of pipelines, gathering lines, and flowlines under colnmon o\snership or control in a particular county may 

be treated as a single regulated entity for purposes of assessment and 

regulation of emissions events. 

(86) Remote reservoir cold solvent cleaning--Any cold solvent cleaning operation in which 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 tliii work area. 

(87) Reportable emissions event--Any emissions event that 

in any 24-hour period, results in an unautl~orized emission from ally 

emissions point equal to or in excess of the reportable quantity as defined in this section. 

(88) Reportable quantity (RQ)--Is as follows: 

(A) for individual air contaminant compounds and 

specifically listed mixtures by name or Che~nical Abstracts Service 

(CAS) number, either: 

(i) the lowest of the quantities: 

(I) listed in 40 Code of Federal Reg~ilations 

(CFR) Part 302. Table 302.4, the colu~nn "final RQ"; 

(II) listed in 40 CFR Part 355, Appendix A, the 

column "Reportable Quantity"; or 

(IIO listed as follows: 

(-a-) acetaldehyde - 1,000 pounds. except in 

the Houston-Galveston-Brazoria (HGB) and Beaumont-Port Arthur 

(BPA) ozone nonattainment areas as defined in paragraph (70)(E)(i) 

and (iii) of this section, where the RQ mustbe 100 pounds; 

(-b-) butanes (any isomer) - 5,000 pounds; 

(-c-) butenes (any isomer, except 1,3-butadrene) - 5.000 pomnds, except in the HGB and BPA ozone nonattainment 

areas as defined in paragraph (70)(E)(i) and (iii) of this section, where 

the RQ must be 100 pounds; 

(-d-) carbon ~nonoxide - 5,000 pounds; 

(-e-) I-chloro-l ,I-dilluoroethane (HCFC142b) - 5.000 pounds; 

(-f-) chlorodifluoro~nethane (HCFC-22) - 

5,000 pounds; 

(-g-) I -chloro- 1 -fluoroethane (HCFC- I 5 la) - 

5.000 pounds; 

(-11.) cl~lorofl~~o~~ometl~a~~e (HCFC-3 I ) - 

5,000 pounds; 

32 TexReg 4992 Airgust 10, 2007 Texas Register 
(-i-) cliloropcntafluoroetIi~~~ic (CFC- 1 15) - 

5.000 pounds; 

(-j-) 2-cliloro-l ,I, I ,2-tctralluoroethnne 

(HCFC- 124) - 5,000 pounds; 

(-k-) I -chloro-1,1,2.2 tetrall~~oroetliane 

(HCFC-124a) - 5,000 pounds; 

(-I-) 1.1, 1,2,3,4,4,5,5,5-decalluoropcntanc 

(HFC 43-IOmee) - 5,000 pounds; 

(-m-) dccanes (any isomer) - 5.000 pounds; 

(-!I-) I, I-dichloro- I-Huoroctlianc (HCFC14 1 b) - 5,000 pounds; 

(-o-) 3,3-dichloro- 1.1.2.2-penlalluoropropanc (HCFC-225ca) - 5,000 pounds; 

(-p-) 1,3-dichloro- 1,1,2.2,3-pentalluoropropane (HCFC-225cb) - 5,000 pounds; 

(q-) I ,2-dichloro- I. I ,2,2-tetrafluoroetlia~ie 

(CFR- I 14) - 5,000 pounds; 

(-r-) I. I -dichlorotctrafl~~oroetlia~ie (CFCI 1421) - 5,000 pounds; 

(-s-) 1,2-dichloro- 1,1,2-trifl~1oroethane 

(HCFC- 123a) - 5,000 pounds; 

(-t-) I ,I-difluoroethane (HFC- 152a) - 5,000 

pounds; 

(-U-) difluoro~netliane (HFC-32) - 5,000 

pounds; 

(-v-) ethanol - 5,000 pounds; 

(-w-) ethylene - 5,000 pounds, except in the 

HGB and BPA ozone nonattainment areas as defined in paragraph 

(70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds; 

(-X-) ethylfluoride (HFC- 16 1) - 5.000 

pounds; 

(-y -) 1 ,I, 1,2,3,3,3-heptafluoropropanc 

(HFC-227ea); 

(-z-) I, 1,1,3,3,3-hexafluoropropane (HFC236ra) - 5,000 pounds; 

(-aa-) I, I, 1,2,3,3-hexafluoropropane 

(HFC-236ca) - 5,000 pounds; 

(-bb-) hexanes (any isomer) - 5,000 pounds; 

(-cc-) isopropyl alcohol - 5,000 pounds; 

(-dd-) mi~ieral spirits - 5,000 pounds; 

(-ee-) octanes (any isomer) - 5,000 pounds; 

(-ff-) oxides of nitrogen - 200 pou~ids in 

ozone nonattainment, ozone maintenance, early action compact areas, 

Nueces County, and San Patricio County, and 5,000 pounds in all 

other areas of the state, which should be used instead of the RQs for 

nitrogen oxide and nitrogen dioxide provided in 40 CFR Part 302, 

Table 302.4. the column "final RQ"; 

(-gg-) pentaclilorofluoroetl~ane (CFR- I I I ) - 

5,000 pounds; 

(-hli-) I ,I ,I ,3,3-pentafluorobutane (HFC3651nfc) - 5,000 pounds; 

(-ii-) pcntafluoroethane (HFC-125) - 5.000 

pounds; 

(-IJ-) 1,1,2.2,3-pentafluoropropane 

245ca) - 5,000 pounds; 

(-kk-) 1,1.2.3,3-pentafluoropropane 

245ea) - 5,000 pounds, 

(-]I-) I, 1 .I .2.3-pentafluoropropane 

245cb) - 5,000 pounds, 

(-mm-) 1 .I .I ,3,3-pentafluoropropane 

(HFC-245fa) - 5,000 pounds, 

(HFC- 

(HFC- 

(HFC- 

(-pp-) propylene - 5,000 pounds, cxcept in 

11ic HGB and BPA ozone nonattain~nent areas as defined in paragraph 

(70)(E)(i) and (iii) or tliis section, where tlie RQ must be 100 pounds; 

(-qq-) 1,1,2.2-teraclilorodifluoroetliane (CFR 

- l 12) - 5,000 po~~nds; 

(-rr-) I .I. 1 -2-tetrachIorodifluoroetlianc 

(CFC- I 1 2a) -5.000 pounds; 

(-ss-) I, I ,2,2-tetrafluoroethane (HFC- 134) - 

5,000 pounds; 

(-tt-) I, I .I .2-tctrafluoroethane (HFC- 134a) - 

5,000 pounds; 

(-uu-) i ,I.2-tricliloro-l,2,2-trifluorocthane 

(CFR- I 13) - 5.000 pounds; 

(-vv-) I, I, I -trichloro-2,2,2-trilfloroelhane 

(CFC- I I3a) - 5,000 pounds; 

(-ww-) I, I, I -trifluoro-2,2-dichloroctliane 

(HCFC-123) - 5,000 pounds; 

(-xx-) I ,I ,I -trifluoroethane (HFC-143a) - 

5,000 pounds; 

(-yy-) trifluoro~nethane (HFC-23) - 5.000 

pounds; or 

(-zz-) toluene - 1,000 pounds, except in the 

HGB and BPA ozone nonattainment areas as defined in paragraph 

(70)(E)(i) and (iii) of this section, where the RQ must be 100 pounds; 

(ii) if not listed in clause (i) of this subparagraph, 

100 pounds; 

(B) for ~nixtures or air contaminant compounds: 

(i) where the relative amount of individual air contaminant compounds is known through common process knowledge or 

prior engineering analysis or testing, any amount of an individual air 

co~itaminant compound that equals or exceeds the amount specified in 

subparagrapli (A) of this paragraph; 

(ii) where the relative amount of individual air contaminant co~npounds in subparagraph (A)(i) of this paragraph is not 

known, any amount of the mixture that equals or exceeds the amount 

for any single air conta~ninant compound that is present in the mixture 

and listed in subparagraph (A)(i) of this paragraph; 

(iii) where each of the individual air contaminant 

compounds listed in subparagraph (A)(i) of this paragraph are known 

to be less tlian 0.02% by weight orthe mixture, and each oftlic other individual air contaminant compounds covered by subparagrapli (A)(ii) 

or this paragraph are known to be less than 2.0% by weight oftlie mixture, any total amount of tlie mixture of air contaminant compounds 

greater that1 or equal to 5,000 pounds; or 

(i~,) where natural gas excluding carbon dioxide, 

water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen 

or air emissions rrom crude oil are known to be in an amount greater 

tlian or equal to 5,000 pounds or the associated hydrogen sulfide and 

mercaptans in a total amount greater than 100 pounds, wh~cliever 

occurs first; 

(C) for opacity from boilers and combustion turbines as 

defined in tliis section fueled by natural gas, coal, lignite, wood, fuel 

oil containing hazardous air pollutants at a concentration of less than 

0.02% by weight, opacity that is equal to or exceeds 15 additional percentage points above the applicable limit, averaged over a six-minute 

period. Opacity is the o~ily RQ applicable to boilers and combustion 

turbines described in tliis paragraph; or 

(-nn-) pentanes (any isomer) - 5.000 pounds; (D) for facilities where air contaminant compounds are 

(-00-) propane - 5,000 pounds; measured directly by a continuous emission monitoring system providing updated readings at a minimum I 5-minute interval an amount, 

ADOPTED RULES Ailgust 10, 2007 32 TexReg 4993 
approved by the executive director based on any relevant conditions 

and a screening model, that would be reported prior to ground level 

concentrat~ons reaching at any distance beyond the closest regulated 

entity property line: 

(i) less than one-half of any applicable ambient air 

standards; and 

(ii) less than hvo times the concentration of applicable air emission limitations. 

(89) Rubbish--Nonputrescible solid waste, consisting of 

both combustible and noncombustible waste materials. Combustible 

rubbish includes paper, rags, cartons, wood, excelsior, furniture, 

rubber, plastics, yard trimmings, leaves, and similar materials. Nonco~nbustible n~bbish includes glass, crockery, tin cans, aluminum 

cans, metal furniture, and like materials that will not bum at ordinary 

incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees 

Fahrenheit). 

(90) Scheduled mainteuance, startup, or shutdown activity--For activities with unauthorized emissions that are expected to exceed a reportable quantity (RQ), a scheduled maintenance. startup, or 

shutdown activity is an activity that the owner or operator of the regulated entity whether performing or otherwise affected by the act~vity, 

provides prior notice and a final report as required by $10 1.2 1 I of this 

title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements); the notice or final report 

includes the infonnation required in $ 10 1.21 1 of this title; and the actual unauthorized ernissions from the activity do not exceed the emissions estimates submitted in the initial notification by more than an 

RQ. For activities with unauthorized emissions that are not expected 

to, and do not, exceed an RQ, a scheduled maintenance, startup, or 

shutdown activity is one that is recorded as required by 5 101.21 1 of 

this title. Ex~ected excess ooacitv events as described in 6 10 1.20 1 (e) . , 

of this title (relating to Emissions Event Reporting and Recordkeeping 

Reouirements) resulting from scheduled maintenance. startup, or shutdoh activities are those that provide prior notice (if required), and are 

recorded and reported as required by $ 101.2 1 1 of this title. 

(91) Sludge--Any solid or semi-solid, or liquid waste generated fro111 a municipal, commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive of the treated emuent from a wastewater treatment plant; or air pollution control equipment. 

(92) Smoke--Small gas-bonl particles resulting from 

incomplete combustion consisti~~g predominately of carbon and other 

combustible material and present in sufficient quantity to be visible. 

(93) Solid waste--Garbage, rubbish, refuse, sludge from a 

waste water treatment plant, water supply treatment plant, or air pollution control equipment, and other discarded material, including solid, 

liquid, semisolid, or containerized gaseous material resulting from industrial, municipal, comnlercial, mining, and agric~~ltural operations 

and from community and institutional activities. The term does not include: 

(A) sol~d or dissolved material in domestic sewage, or 

solid or dissolved material in irrigation return flows, or industrial d~scl~arges subject to reg~~lation bypennit issued under the Texas Water 

Code, Chapter 26; 

(B) soil, dirt, rock. sand, and other natural or man-made 

inert solid materials used to fill land, if the object of the fill is to make 

the land suitable for the construction of surface improvements; or 

(C) waste materials that result from activities associated with the exploration, development, or production of oil or gas, 

or geother~nal resources, and other substance or material regulated by 

the Railroad Commission of Texas under Natural Resources Code, 

$91.101, unless the waste, substance, or material ~.esults from activities 

associated with gasoline plants, nat~~ral gas liquids processing plants, 

pressure maintenance plants, or repressurrzing plants and IS hazardous 

waste as defined by the administrator of the United States Environmental Protection Agency under the federal Solid Waste Disposal Act, 

as amended by Resource Conservation and Recovery Act, as amended 

(47 United States Code, 4S6901 el seq.). 

(94) Sour crude--A crudc oil that will emit a sour gas when 

in equilibrium at atmospheric pressure. 

(95) Sour gas--Any natural gas containing more than 1.5 

grains of hydrogen sulfide per 100 cubic feet, or more than 30 grains 

of total sulfur per 100 cubic feet. 

(96) Source--A point of origin of air contaminants, whether 

privately or publicly owned or operated. Upon request of a source 

owner, the executive director shall determine whether multiple processes emitting air contaminants from a single point of emission will 

be treated as a single source or as multiple sources. 

(97) Special waste from health care-related facilities--A 

solid waste that if improperly treated or handled, may serve to transmit 

infectious disease(s) and that is comprised of the following: animal 

waste, bulk blood and blood products, ~nicrobiological waste, pathological waste, and sl~arps. 

(98) Standard cond~tions--A cond~t~on at a temperature of 

68 degrees Fahrenheit (20 degrees Cent~grade) and a pressure of 14.7 

pounds per square inch absolute (I 01.3 kiloPascals). 

(99) Standard metropolitan statistical area--An area consisting of a county or one or more contiguous counties that is oficially 

so designated by the United States Bureau of the Budget. 

(100) Submerged fill pipe--Afill pipe that extends from the 

top of a tank to have a maximum clearance of six inches (I 5.2 centimeters) from the bottom or, wllen applied to a tank that is loaded from the 

s~de. that has a discharge opening entirely submerged when the pipe 

used to w~thdraw liquid from the tank can no longer withdraw liqu~d in 

normal operation. 

(10 1) Sulfur compounds--All inorganic or organic chemicals having an atom or atoms of sulfi~r in their chemical structure. 

(I 02) Sulfuric ac~d ~nistisulfuric acid--Emissions of sulfuric acid mist and sulfi~ric acid are considered to be the same air contaminant calculated as H,SO, and 1n11st include sulfuric acid liquid mist, 

sulfur trioxide, and sulfuric acid vapor as measured by Test Method 8 

in 40 Code of Federal Regulations Part 60, Appendix A. 

(1 03) Sweet crude oil and gas--Those crude petroleum llydrocarbons that are not "sour" as defined in this section. 

(104) Total suspended particulate--Particulate matter as 

measured by the method described in 40 Code of Federal Regulations 

Part 50, Appendix B. 

(105) Transfer efficiency--The amount of coating solids 

deposited onto the surface or a part of PI-oduct divided by the total 

amount of coating solids delivered to the coating application system. 

(106) True vapor pressure--The absolute aggregate partial 

vapor pressure. measured in pounds per square inch absolute, of all 

volatile organic compounds at the temperature of storage, handling, 01- 

pl-ocess i ng. 

( 107) Unauthorized emissions--E~nissions of any air contaminant except carbon dioxide, water. nilroyen, methane. ethane, no32 TexReg 4994 Aligllst 10, 2007 T~xas Register 
blc gases, hydrogen, and oxygen that cxcecd any air emission limilalion 

in a pennit, rule, or order of the commission or as authorizetl by Texas 

Clean Air Act, $382.05 18(g). 

(1 08) Unplanned maintenance, startup, or sl,~~tdown aetivity--For activitics with ~~nauthorized e~iiissiotis that arc exlicctctl to exceed a reportable quantity or with excess opacity, an unplannctl maintenance, startup, or shutdown activity is: 

(A) a startup or shutdown that was not part of normal 

or routine facility operations, is unpredictable as to timing, ant1 is not 

the type of event normally authorized by pennit; or 

(B) a maintenance activity that arises from sudden and 

unroresecable events beyond the control of the operator that requires 

the i~n~nediatc corrective action to minimize or avoid an upset or ~nalfunction. 

(109) Upset event--An unplanned and unavoidable breakdown or excursion of a process or operation that results in unauthorized 

emissions. A maintenance, startup, or shutdown activity that was reported under $10 1.2 1 I of this title (relating to Scheduled Maintenance, 

Startop, and Shutdown Reporting and Recordkeeping Requirements). 

but had emissions that exceeded the reported amount by more than a 

rcportable quantity due to an unplanned and unavoidable breakdown 

or excursion of a process or operation is an upset eve111. 

(1 10) Utility boiler--A boiler uscd to produce electric 

power, steam, or heated or cooled air, or other gases or fluids for sale. 

( 1 11) Vapor combustor--A partially enclosed combustion 

device used to destroy volatile organic compounds by stnokeless combustion without extracting energy in the form of process heat or steam. 

The combustion flame may be partially visible, but at no time does 

the device operate with an uncontrolled flame. Auxiliary fuel andlor a 

flame air control damping system that can operate at all times to control 

the airlfuel ~nixture to the combustor's flame zone, may be required to 

ensure smokeless combustion during operation. 

(1 12) Vapor-mounted seal--A primary seal mounted so 

there is an annular space underneath the seal. The annular vapor space 

is bounded by the bottom of the primary seal, the tank wall, the liquid 

surface, and the floating roof or cover. 

(1 13) Vent--Any duct, stack, chimney, Rue, conduit, or 

other device used to conduct air contaminants into tile at~nosphere. 

(I 14) Visible emissions--Particulate or gaseous matter that 

can be detected by the human eye. The radiant energy from an open 

Ilame is not considered a visible emission under this definition. 

(1 15) Volatile organic compound--As defined in 40 Code 

of Federal Regulations $5 1.100(s), except $5 1.100(~)(2) - (4), as 

amended on November 29,2004 (69 FR 69290). 

(1 16) Volatile organic compound (VOC) water separator-- 

Any tank, box, sump, or other container in which any VOC, floating on 

or contained in water entering such tank, box, sump, or other container, 

is physically separated and removed from such water prior to outfall, 

drainage, or recovery of such water. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 27. 2007. 

TRD-200703287 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Effective dale: August 16, 2007 

Proposal publication date: February 23, 2007 

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

30 TAC 5101.22 

STATUTORY AUTHORITY 

The repealed section is adopted under Texas Water Code 

(TWC), 95.102, concerning General Powers, that provides the 

commission with the general powers to carry out its duties under 

the Texas Water Code; TWC. S5.103, concerning Rules, that 

authorizes the commission to adopt rules necessary to carry 

out its powers and duties under the Texas Water Code; TWC, 

95.1 05, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC). 

$382.017, concerning Rules, that authorizes the commission 

to adopt rules consistent with the policy and purposes of the 

Texas Clean Air Act. The repealed section is also adopted 

under THSC, $382.002, concerning Policy and Purpose, that 

establishes the commission's purpose to safeguard the state's 

air resources, consistent with the protection of public health, 

general welfare, and physical property; 9382.011, concerning 

General Powers and Duties, that authorizes the commission to 

control the quality of the state's air; and $382.012, concerning 

State Air Control Plan, that authorizes the commission to prepare and develop a general, comprehensive plan for the proper 

control of the state's air. 

The repealed section implements THSC. $§382.002, 382.011, 

382.012, and 382.01 7. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 27, 2007. 

TRD-200703288 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Effective date: August 16. 2007 

Proposal publication date: February 23, 2007 

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

SUBCHAPTER H. EMISSIONS BANKING 

AND TRADING 

DIVISION 1. EMISSION CREDIT BANKING 

AND TRADING 

30 TAC $101.302, $101.306 

STATUTORY AUTHORITY 

The amended sections are adopted under Texas Water Code 

(TWC), $5.102, concerning General Powers, that provides the 

commission with the general powers to carry out its duties under 

the Texas Water Code; TWC, $5.103, concerning Rules, that 

ADOPTED RULES August 10, 2007 32 TexReg 4995 
authorizes the commission to adopt rules necessary to carry (D) the facility's annual emissions prior to the reducout its powers and duties under the Texas Water Code; TWC, tion strategy must have been reported or represented in the emissibns 

$5.105, concerning General Policy, that authorizes the commis- inventory used in the SIP. 

sion by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC), (2) Mobile emission reduction credits are certified reduc- 

$382,017, concerning Rules, that authorizes the commission to lions the requirements: 

adopt rules consistent with the policy and purposes of the Texas 

Clean Air Act. The amended sections are also adopted under 

THSC, $382.002, concerning Policy and Purpose, that 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, concerning General 

Powers and Duties, that authorizes the commission to control 

the quality of the state's air; and $382.012, concerning State 

Air Control Plan, that authorizes the commission to prepare and 

develop a general, comprehensive plan for the proper control 

of the state's air. The amended sections are also adopted under THSC, $382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause 

air contaminant emissions to submit information to enable the 

commission to develop an emissions inventory; and $382.016, 

concerning Monitoring Requirements; Examination of Records, 

that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions. The amended sections are also adopted under 42 United 

States Code, $7410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, $5382.002, 382.011, 

382.012, 382.014, 382.016, and 382.017. 

$101.302. Getieral Provisions. 

(a) Applicable pollutants. Reductions of criteria pollutants, 

excluding lead, or precursors of criteria pollutants for which an area is 

designated nonattainment, may qualify as emission credits. Reductions 

of one pollutant may not be used to meet the requirements for another 

pollutant, unless urban airshed modeling demonstrates that one ozone 

precursor may be substituted for another, subject to executive director 

and United States Environmental Protection Agency (EPA) approval. 

(b) Eligible generator categories. The following categories are 

eligible to generate emission cred~ts: 

(1) facilities, including area sources; 

(2) mobile sources; and 

(3) any facility, including area sources. or mobile source 

associated with actions by federal agencies under 8 101.30 of this tltle 

(relating to Conformity of General Federal Actions to Stale Implementation Plans). 

(c) Emission credit requirements 

(1) Emission reduction credits are certified reductions that 

meet the following requirements: 

(A) reductions must be enforceable, permanent, quantifiable, real, and surplus; ' 

(B) the certified reduction must bc surplus at the time ~t 

is created, as well as when it is ~~secl; 

(C) in order to become certified. the reduction must 

have occurred after the most recent year of emissions invento~y ~~scd 

in the state implementatio~l plan (SIP); and 

(A) reductions must be enforceable, permanent, quantifiable, real, and surplos; 

(B) the certified reduction must be surplus at the time it 

is created, as well as when it is used; 

(C) in order to become certified, the reduction must 

have occurred after the most recent year of emissions inventory used 

in the SIP; 

(D) the inobile source's annual emissions prior to the 

emission credit application must have been represented in the emissions inventory used in the SIP; and 

(E) the mobile sources must have been included in the 

attainment demonstration baseline emissions inventory. 

(3) E~nission reductions from a facility or mobile source 

that are certified as emission credits under this division cannot be recertified in whole or in part as credits under another division within this 

subchapter. 

(d) Protocol. 

(I) All generators or users of emission credits shall use a 

protocol that has been submitted by the executive director;to the EPA 

for approval, if existing for the applicable facility or mobile source, 

to measure and calculate baseline emissions. If the generator or user 

wislles to deviate from a protocol submitted by the executive director, 

EPA approval is required before the protocol can be used. Protocols 

must be used as follows. 

(A) Facilities subject to the en~ission specifications 

under (j$117.110, 117.210, 117.310, 117.410, 117.1010, 117.1110, 

117.1210, 117.1310, 117.2010, or 117.2110 of this title (relating 

to Emission Specifications for Attainment De~nonstration; Emission Specifications for Eight-Hour Attainment Demonstration; and 

Emission Specifications) shall quantify reductions in nitrogel1 oxide 

emissions using the testing and monitoring methodologies identified 

to show compliance with the emission specification. 

(B) Facilities subject to the requirements under 

$$115.112, 115.121, 115.122, 115.162, 115.211, 115.212, 115.352. 

115.42l. 115,541, or 115.542 of this title (relating to Control Requirements; and Emission Specifications) shall quantify volatile organic 

compound reductions using the testing and monitoring ~nethodologies 

identified to show compliance with the emission specifications or 

requirements. 

(C) Ifthe executive director has not submittecl a protocol Tor the applicable facility or mobile source to the EPA for approval. 

tlle following requirements apply: 

(i) the amount of emission credits from a facility or 

mobile source, in tons per year, will be determined and certified based 

on quantification methodologies at least as stringent as thc methocls 

used to demonstrate compliance with any applicable req~~irements for 

the facility or mobile source; 

(ii) the generator shall collect relevant clala suficicnt to cliaracterize the facility's or mobile source's emissions of tllc 

affected pollutant and the facility's or mobile source's activity level 

for a1 l representative phases of operation in order to characterize the 

~xilit~.s-or mobile source's baseline emissions; 

32 TexReg 4996 Azlgust 10, 2007 Texas Register 
(iii) f;~cilities wllli conlinuous emissions monitoring 

systems or predictive emissions monitoring systems in place sliall use 

tliis data in quantifying actual emissions; 

(iv) tlie chosen quantilication protocol must be made 

available for public comment for a period of 30 days and must be viewable on tlie commission's Web site; 

(1) tlie chosen quant~lication protocol and any comments received during the public comment period shall be submitted to 

tlic EPA for a 45-day adequacy review; and 

(11;) quantification protocols shall not be accepted 

for use with this division if tlie executive director receives a letter 

objecting to the use of the protocol from the EPA during the 45-day 

adequacy review or tlie EPA adopts disapproval of the protocol in the 

Federal Register. 

(2) In tlie event that the monitoring and testing data required under paragraph (I) of this subsection is missing or unavailable, 

tlie facility may report actual emissions for that period of time using 

these listed methods in tlie following order of preference to determine 

actual emissions: 

(A) continuous monitoring data; 

(B) periodic monitoring data; 

(C) testing data; 

(D) manufacturer's data; 

(E) EPA Conipilrrrioti of Air Pollt~tion Emission Factors 

(AP-42), September 2000; or 

(F) material balance. 

(3) When quantifying actual emissions in accordance with 

paragraph (2) of this subsect~on, the generator shall use the most conservative ~netliod for replacing the missing data, submit thejustification 

for not uslng tile methods in paragrapli (1) of this subsection, and submit the iustificatio~~ for the nietliod used. 

(e) Credit certification. 

(1) The amount of emission credits in tons per year will be 

determined and certified. to the nearest tenth of a ton per year. 

(2) Applications for certification will be reviewed in order 

to determine the cretlibility of tlie reductions. Reductions determined 

to be creditable will be certified by the executive director. 

(3) The applicant will be notified in writing if the executive director denies tlie emission credit application. Tlie applicant may 

submit a revised application in accordance with the requirements of 

this division. 

(4) If a facility's or mobile source's actual emissions exceed its allowable emission limit, reductions of emissio~ls exceeding 

the limit may not be certified as emission credits. 

(5) Applications for'certification of emission credit from 

reductions quantified under subsection (d)(l)(C) of this section may 

only be approved upon conipletion of the public comment period. 

(f) Geographic scope. Except as provided in 5101.305 of this 

title (relating to Emission Reductions Achieved Outside the United 

States), only emission reduct~ons generated in nonattainment areas can 

be certified. An emission credit must be nsed in the nonattainment area 

in which it is generated unless the user has obtained prior written approval of the executive director and tlie EPA; and 

(1) a demonstrat~on has been made and approved by the 

executive d~rector and tlie EPA to sliow that the emission reductions 

acliievetl in another counly or state provide an improve~nenl to tlic air 

qu;ility in tlie county of use; or 

(2) tlie emission credit was generated in a nonattain~nenl 

area that has an equal or higher nonattainment classification than the 

nonattainment area of use, and a demonstration has been made and approved by tlie executive director. and the EPA to sliow that tlie emissions from the nonattainnicnt area where the emission credit is generatcd contribute to a violation of tlie national ambient air quality standard in the nonattainmcnt area of use. 

(g) Recordkeeping. The generator shall maintain a copy of all 

notices and backup infonnation submitted to the registry for a minimum of five years. The user shall maintain a copy of all notices and 

backup information submitted to tlie credit registry from the beginning 

of the use period and for at least five years after. The user shall also 

make suchrecords available upon request to representatives of tlie executive director, EPA, and any local enforcement agency. The records 

must include, but not necessarily be lim~ted to: 

(I) the name, emission point number, and facility identification number of each facility or any other identifying number for each 

mobile source using emission crcdits; 

(2) the ainount of emission credits being used by each facility or mobile source; and 

(3) the specific number, name, or other identification of 

emission credits used for each facility or mobile source. 

(11) Public information. All infonnation submitted with notices, reports, and trades regarding the nature, quantity, and sales price 

of emissions associated with the use, generation, and transfer of an 

emission credit is public information and may not be submitted as confidential. Any claim of confidentiality for this type of information, or 

failure to submit all infonnation, may result in the rejectionof the emission credit application. All nonconfidential notices and information regarding the generation, availability, use, and transfer of emission credits sliall be immediately made available to the public. 

(i) Authorization to emit. An emission credit created under 

this division is a limited authorization to emit the pollutants identified in 

subsection (a) of this section, unless otherwise defined, in accordance 

with the provisions of this section, 42 United States Code, $97401 el 

seq., and Texas Health and Safety Code. Chapter 382, as well as regulations promulgated thereunder. An emission credit does not constitute 

a property right. Nothing in this division may be construed to limit the 

authority of the commission or the EPA to terminate or limit such authorization. 

(1) Program participation. The executive director has tlie authority to prohibit an orga~~izatio~i from participating in emission credit 

trading either as a generator or user, if the executive director determines 

that tlie organization has violated the requirements of the program, or 

abused the privileges provided by tlie program. 

(k) Co~npliance burden. Users may not transfer their compliance burden and legal responsibilities to a third-party participant. 

Third-party participants may only act in an advisory capacity to the 

user. 

(1) Credit ownership. The owner of the initial emission credit 

certificate shall be the owner or operator oftlie facility or mobile source 

creating the emission reduction. Tlie executive director may approve 

a deviation from th~s subsect~on cons~dering factors such as, but not 

limited to: 

(1) whether an ent~ty other than tlie owner or operator of 

tlie facility or mobile source ~ncurred the cost of tlie ernission reduction 

strategy; or 

ADOPTED RULES August 10, 2007 32 TexReg 4997 
(2) wlnetlner the owner or operator oftlie facility or mobile 

source lacks the potential to generate 1/10 ton of credit. 

$101.306. Emissiou Credit Use. 

(a) Uses for emission credits. Unless precluded by a commission order or a condition or conditions within an authorization under 

tlie same commission account number, emission credits may be used 

as tlie following: 

(I) offsets for a new source, as defined in Ij I0 I. I of this title 

(related to Definitions), or major modification to an existing source; 

(2) mitigation offsets for action by federal agencies under 

$1 01.30 ofthis title (relating to Conformity ofGeneral Federal Actions 

to State T~nplementation Plans); 

(3) an alternative means of compliance with volatile organic con~pound and nitrogen oxides reduction requirements to the 

extent allowed in Chapters 114, 115, and I I7 of this title (relating lo 

Control ofAir Pollutio~i from Motor Vehicles; Control ofAir Pollution 

from Volatile Organic Compounds; and Control of Air Pollution from 

Nitrogen Compo~unds); 

(4) reductions certified as emission credits may be used in 

netting by the original applicant, if not used, sold, reserved for use, or 

otherwise relied upon, as provided in 8 I 16.150 of this title (relating 

to New Major Source or Major Modification in Ozone Nonatlain~nent 

Areas); 

(5) an annual allocation of allowances as provided in 

$ 101.356 and $101.399 of this title (relating to Allowance Banking 

and Trading); 

(6) compliance with motor vehicle fleet requirements to the 

extent allowed by $1 14.20 1 of this title (relating to Mobile Eniission 

Reductio~i Credit Program); or 

(7) compliance with otlier requirements as allowable 

within the guidelines of local, state, and federal laws. 

(b) Credit use calculation. 

(1) The number of e~nissio~i credits needed by the user for 

offsets shall be determined as provided in $1 16.150 of this title. 

(2) For emission credits used in con~pliance with Chapters 

114, 115, or I17 of this title, the number of emission credits needed 

should be detennined according to the following equation plus an additional 10% to be retired as an environmental contribution. 

Figure: 30 TAC I0 1.306(b)(2) (No change.) 

(3) For emission credits used to comply with $$I 17.123, 

117.223, 117.320, 117.323, 117.423, 117.1020, 117.1120,or 117.1220 

of this title (relating to Source Cap; and System Cap), the number of 

emission credits needed for increasing tlie 30-day rolling average emission cap or ~naxi~nu~n dailycap sliould be detennined according to the 

following equation plus an additional 10% to be retired as an environmental co~ltribution. 

Figure: 30 TAC Ij 101.306(b)(3) 

(4) Emission credits used for compliance with any other 

applicable program sl~ouid bc determined in accordance with the requirements of that program and 1nus1 contain at least 10% extra to be 

retired as an erlvironmental contrib~~tion, unless otherwise specified by 

that prograln. 

(c) Notice of intent to use e~nissioii credits 

(1) For emission CI-edits which are lo be used as offsets in a 

New SourceRevie~l permil in accordance wit11 Chapter I 16 of this title 

(relating to Control of Air Pollution by Permits for New Construction 

or Modification), the emission credits must be identified prior to permit 

issuance. Prior to construction, the offsels must be provided through 

submittal of a co~npleted EC-3 Form, Notice of Intent to Use Emission 

Credits, along with the orig~nal emission credit certificate. 

(2) For emission credits that are to be used for compliance 

with the requirements of Chapters 114, 115, or 117 of this title or other 

programs, tlie user must submit a completed EC-3 Form alo~ng with the 

original emission credit certificate, at least 90 days prior to tlic planned 

use of the emission credit. Emission credits may be used only after the 

executive director grants approval of Uie notice of intent to use. The 

user must also keep a copy of the emission credit certificate, the noticc. 

and all backup in accordance with $IO1.302(g) of this title (relating to 

General Provisions). 

(3) If the executive director denies the facility or mobile 

source's use of emission credits, any affected person by the executive director's decision may file a motion for reconsideration within 

60 days of the denial. Notwitlistanding the applicability provisions of 

$50.3 l(c)(7) of this title (relating to Purpose and Applicability), the 

requirements of $50.39 of this title (relating to Motion for Reconsideration) shall apply. Only an affected person may file a motion for 

reconsideration. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 27, 2007. 

TRD-200703289 

Robert MartInez 

Director, Environmental Law Dlvlslon 

Texas Commission on Environmental Quality 

Effective date: August 16, 2007 

Proposal publication date: February 23, 2007 

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

DIVISION 3. MASS EMISSIONS CAP AND 

TRADE PROGRAM 

30 TAC @101.350, 101.351, 101.353, 101.354,101.360 

STATUTORY AUTHORITY 

The amended sections are adopted under Texas Water Code 

(TWC), $5.102, concerning General Powers, that provides the 

commission with the general powers to carry out its duties under 

the Texas Water Code; TWC, $5.103, concerning Rules, that 

authorizes the commission to adopt rules necessary to carry 

out its powers and duties under the Texas Water Code; TWC, 

$5.105, concerning General Policy, that authorizes the comrnission by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC), 

$382.017, concerning Rules, that authorizes the commission to 

adopt rules consistent with the policy and purposes of the Texas 

Clean Air Act. The amended sections are also adopted under 

THSC, $382.002, concerning Policy and Purpose, that 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, concerning General 

Powers and Duties, that authorizes the commission to control 

the quality of the state's air; and $382.012, concerning State 

Air Control Plan, that authorizes the commission to prepare and 

develop a general, comprehensive plan for the proper control 

of the state's air. The amended sections are also adopted un32 TexReg 4998 A i~gusf 10, 200 7 Texas Register 
der THSC, S382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause 

air contaminant emissions to submit information to enable the 

commission to develop an emissions inventory; and S382.016. 

concerning Monitoring Requirements; Examination of Records, 

that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions. The amended sections are also adopted under 42 United 

States Code, §7410(a)(2)(A), that requires SIPS to rnclude enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, §§382.002, 382.011, 

382.012, 382.014, 382.016, and 382.017. 

(a) Allowances will be deposited into co~npl~ruicc accounts according to tlie following equation except as provided in subsection (b) 

or (h) of this section. 

Figure: 30 TAC $l01.353(a) 

(b) For a new andor modified facility that lias submitted, under Chapter 116 of this title (relating to Control of Air Pollution by 

Permit for New Construction of Modification), an application which 

the executive director has not determined to be administratively completc before January 2, 2001, or has qualified for a permit by rule u~ider Chapter 106 of this title (relating to Permits by Rule) and lias not 

commenced construction before January 2, 200 1, allowances for each 

control period or tlie annual allocation rights shall be acquired from facilities already participating under this division, or in accordance with 

5 IO1.356(g) of this title (relating to Allowance Banking and Trading). 

(c) If actual emissions of nitrogen oxides during a control period exceed the amount of allowances held in a compliance account on 

March I following the control period, allowances for the next control 

period will be reduced by an amount equal to tlie emissions exceeding the allowances in the compliance account plus an add~tional 10%). 

This does not preclude additional enforcement action by the executive 

director. 

(d) Allowances will be allocated by the executive director, 

who will deposit allowances into each compliance account: 

(I) initially, by January 1, 2002; and 

(2) subsequently, by January I of each following year. 

(e) The annual deposit for any control period may be adjusted 

by tlie executive director to reflect new or existing state i~nplementation 

plan requirements. 

(f) Allowances may be added or deducted by the executive director from compliance accounts following tlie rcview of reports required under Q 101.359 of this title (relating to Reporting). 

(g) The owner or operator of a facility may, due to extenuating 

circ~unstances, request a baseline period more representative of nol-ma1 

operation as detennined by tlie executive director. Applications for 

extenuating circumstances must be submitted by the owner or operator 

of the facility to the executive director: 

(I) no later than June 30, 2001 to request an alteniat~ve 

three consecutive calendar year period for facilities in operation prior 

to January I, 1997; 

(2) no later than 90 days after completion of tlie basel~ne 

period to request up to two additional calendar years to establish a baseline pcriod for facilities whose baseline as described by variable (2)(C) 

listed In tlie figure contailled in subsection (a) oI"1liis scction is not completc by Sune 30. 2001; or 

(3) at any tlme as authol.izcd by tlic executive director 

(11) Allowances calculatetl under subsection (a) ol'tliis section 

w~ll cont~~iue to be based 011 historical activity levels, despite subsequent reductions in activity levels. If allowances are being allocated 

based on allowables and tlie Tacility does not achieve two co~npleleconsecutive calendar years of actual level of aclivity data, then allowances 

will not continue to beallocated if tlic facility ceases operation or is not 

built. 

(a) Allowances will be deducted in tenths of a ton from a site's 

compliance account for a control period based upon the monitoring 

and testing protocols established in jjQ 1 17.335, 117.340, 11 7.1235, 

1 17.1240. and 117.2035 of this title (relating to Initial Demonstration 

of Compliance; Continuous Demonstration of Compliance; and 

Monitoring and Testing Requirements). 

(b) In tlie event that tlie monitoring and testing data required 

under subsection (a) of this section is missing or unavailable, the facility may report actual emissions for that period of time using the following equation or other listed methods in the following order to determine actual emissions: continuous monitoring data; periodic monitoring data; testing data; manufacturer's data, and EPA Compila/ion of 

Air Poll~~tioi~ Elt~.ssio~i Factors (AP-42), September 2000. When reporting actual emissions as required under this subsection, the facility 

must also submit the justification for not using the ~iietliods in subsection (a) of this section and the,justiiication for the method used. 

Figure: 30 TAC 9 10 1.354(b) (No change.) 

(c) If the protocol used to show compliance with tliis section 

differs from the protocol used by the commission to establish the allocation of allowances under 4 101.353 of this title (relating to Allocation 

of Allowances), the executive director may recalculate the number of 

allowances allocated per year for consistency between tlie methods. 

(d) When deducting allowances from a site's compliance account for a control period, the executive director will deduct the allowances beginning with the most recently allocated allowances before 

deducting banked allowances. 

(e) Allowances shall be deducted from a site's compliance account in an amount equal to the nitrogen oxides (NO,) emissions increases from facilities not subject to an emission specification under 

5 I 17.3 10 or jj 1 17.201 0 of this title (relating to Emission Specifications 

for Attainment Demonstration; and Emission Specifications) which result from changes made after December 3 I, 2000, to facilities subject 

to this division and $1 17.3IO(e)(3) or $1 17.20IO(f) of tliis title. Documentation detailing these increases in NO, emissions shall be included 

with the submittal of the ECT- I Form, Annual Compliance Report. 

(f) Allowances allocated in accordance wit11 the variables in 

(a)(2)(B) listed in the figure contained in Q I01.353(a) of th~s title may 

only be used by tlie facility for which they were allocated and may 

not be used by other facilities at the same site during tlie same control 

period. 

(g) On March I after every control period, a site shall hold 

a quantity of allowances in its co~npliance account that is equal to or 

greater than the total NO, emissions emitted during tlie prior control 

period. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

ADOPTED RULES August 10,2007 32 TexReg 4999 
Filed with the Office of the Secretary of S t a t e o n July 27, 2007. 

TRD-200703290 

Robert Martinez 

Director. Environmental Law Division 

Texas Commission on Environmental Quality 

Effective date: August 16, 2007 

Proposal publication date: February 23,2007 

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

DIVISION 4. DISCRETE EM1 SSION CREDIT 

BANKING AND TRADING 

30 TAC §101.372,§101.376 

STATUTORY AUTHORITY 

The amended sections are adopted under Texas Water Code 

(TWC), 95.102, concerning General Powers, that provides the 

commission with the general powers to carry out its duties under 

the Texas Water Code; TWC, 95.103, concerning Rules, that 

authorizes the commission to adopt rules necessary to carry 

out its powers and duties under the Texas Water Code; TWC, 

$5.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC), 

3382.01 7, concerning Rules, that authorizes the commission to 

adopt rules consistent with the policy and purposes of the Texas 

Clean Air Act. The amended sections are also adopted under 

THSC, 9382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general 

welfare, and physical property; 9382.011, concerning General 

Powers and Duties, that authorizes the commission to control 

the quality of the state's air; and 5382.012, concerning State 

Air Control Plan, that authorizes the commission to prepare and 

develop a general, comprehensive plan for the proper control 

of the state's air. The amended sections are also adopted underTHSC, 9382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause 

air contaminant emissions to submit information to enable the 

commission to develop an emissions inventory; and $382.016, 

concerning Monitoring Requirements; Examination of Records, 

that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions. The amended sections are also adopted under 42 United 

States Code, 97410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, 33382.002, 382.011, 

382.012, 382.014, 382.016, and 382.017. 

$101.37(>. Discrr/r Etuissiotl Ct~di~ Use. 

(a) Requil.ements to use discrete emission credits. Discrete 

ein~ssion credits may be used if the following requirements are met. 

(I) The user shall have ownership of a s~~fficient amount of 

discrcte emission credits before the use period for \vhich the specific 

discl-ete emission cred~ts are to be used. 

(2) The usel- shall hold sufficient discrete emission credits 

to cover the user's coml~liance obligation at all times. 

(3) The user shall acquire additional discrete e~nission 

credits during the use period if it is detennined the user does not 

possess enough discrete emission credits to cover the entire use period. 

The user shall acquire additional credits as allowed under this section 

prior to the shortfall, or be in violation of this section. 

(4) Facility or mobile source operators may acquire and use 

only discrete emission credits listed on the registry. 

(b) Use of discrete emission credits. With the exception of 

uses prohibited in subsection (c) of this section or precluded by comnlission order or condition with~n an authorization under the same com- 

~nission account number, discrete emission credits may be used to meet 

or demonstrate compliance with any facility or mobile regulatory requirement including the following: 

(1) to exceed any allowable emission level, if the following 

conditions are met: 

(A) in ozone nonattainment areas, permitted facilities 

may use discrete emission credits to exceed pennit allowables by no 

more than ten tons for nitrogen oxides or five tons for volatile organic 

compounds in a 12-month period as approved by the executive director. 

This use is limited to one exceedance, up to 12 months within any 

24-month period, per use strategy. The user shall demonstrate that there 

will be no adverse impacts from the use of discrete emission credits at 

the levels requested; or 

(B) at permitted facilities in counties or portions of 

counties designated as attainment or unclassihed, discrete emission 

credits may be used to exceed permit allowables by values not to 

exceed the prevention of significant deterioration significance levels 

as provided in 40 Code of Federal Regulations (CFR) $52.2 1 (b)(23), 

as approved by the executive director prior to use. This use is limited 

to one exceedance, up to 12 months within ally 24-month period, 

per use strategy. The user shall demonstrate that there will be no 

adverse impacts from the use of discrete emission credits at the levels 

requested; 

(2) as new sollrce review (NSR) permit offsets, if the following reqnirernenls are met: 

(A) the user shall obtain the executive director's approval prior to the use of specific discrete emission credits to cover, 

at a minimu~n, one year of operation of the new or modified facility in 

the NSR per~nit; 

(B) the amount of discrete emission credits needed for 

NSR offsets equals the quantity oftons needed to achieve the maximum 

allowable emission level set in the user's NSR permit. The user shall 

also purchase and retire enough discrete emission credits to meet the 

offset ratio requ~rement in the user's ozone nonattainment area. The 

user sl~ali purchase and retire either the environmental contribution of 

10% or the offset ratio, \vhichever is higher; and 

(C) the NSR pennit must meet the following requirements: 

(i) the pennit must contain an enforceable requirement that the facility obtain at least one additional year of offsets before continuing operation in each subsequent year; 

(ii) prior to issua~~ce of the permit the user shall identify the discrete emission credits; and 

I) prior co starc of operation the user shall submit 

a co~npleted DEC-2 Fo1.m. Notice of Intent to Use Discrete Emission 

Credits. alo~~g with the original certif~cate; 

32 TexReg 5000 Aiig~ist 10, 2007 Texas Register 
(3) to comply witli tlic Mass Emissions Cap and Trade Program requirements as provided in $101.356(g) ofthis titlc (relating to 

Allowancc Banking and Trading); or 

(4) to comply with Chapters 114, 1 IS, and 117 ofthis title 

(rclaling to Control of Air Pollution from Motor Vchiclcs; Control of 

Air Pollution from Volatile Organic Compounds; and Control of Air 

Pollution from Nitrogen Compounds), as allowed. 

(c) Discrete emission crcdit usc prohibitions. A discretc emission crcdit may not bc used under this division: 

(I) beforc it has becn acquircd by thc user; 

(2) for netting to avoid tlie applicability of federal and state 

NSR rcquirements; 

(3) to meet (as codilietl in 42 Unitcd States Code (USC), 

Federal Clcan Air Act (FCAA)) req~~irenients for: 

(A) new source perforniance stantlartls under FCAA, 

$I l l (42 USC, $741 I); 

(B) lowest acliicvable emission rate standards under 

FCAA, $ 173(a)(2) (42 USC, $7503(a)(2)); 

(C) best available control technology standnrtls under 

FCAA, $ 165(a)(4) (42 USC, $7475(a)(4)) or Texas Health and Safety 

Code, $382.05 18(b)(l); 

(D) hazardous air pollutants standards under FCAA, 

$1 12 (42 USC, $7412), including the requirements for maximum 

achievable control technology; 

(E) standards for solid waste co~nbustion untler FCAA, 

$ 129 (42 USC, $7429); 

(F) requirements for a vehicle inspection and maintenance program under FCAA, $182(b)(4) or (c)(3) (42 USC, 

$75 1 1 a(b)(4) or (cI(3)); 

(G) ozone control standards set under FCAA, $183(e) 

and (f) (42 USC, $75 1 1b(e) and (0); 

(H) clean-heled vehicle requirements under FCAA, 

$246 (42 USC, $7586); 

(I) motor vehicle emissions standal-ds under FCAA, 

$202 (42 USC, $752 1 ); 

(J) standards for non-road vehicles under FCAA, $2 13 

(42 USC, $7547); 

(K) requirements for rcfonnulated gasoline under 

FCAA, $21 1 (k) (42 USC, $7545); or 

(L) requirements for Reid vapor pressure standards under FCAA. $21 I(h) and (i) (42 USC, $7545(h) and (i)); 

(4) to allow an emissions increase of an air contaminant 

abovc a level authorized in a pennit or other autliorization tliat exceeds the limitations of $106.261 or $106.262 of this title (relating 

to Facilities (Emission Limitations); and Facilities (Emission and Distance Limitations)) except as approved by the executive director and 

the United States Environmetital Protection Agency. l'liis paragraph 

does not apply to limit the use of discrete emission reduction credits 

(DERC) or mobile discrete emission reduction credits In lieu of allowances under $ 101.356(li) of this title; 

(5) to authorize a facility whose emlsslons are enforceably 

limited to below applicable major source threslioltl levels, as defined 

in $ 122.10 of this title (relating to General Defin~t~ons), to operate with 

actual emissions above those levels without triggering applicablc requirc~iients tliat would o~lierwisc bc triggered by such major source 

status; or 

(6) to exceed an allowable emission level wlierc the exceedance would cause or contribute to ;I condition of air pollution as 

detcnuined by the executive director. 

(d) Notice of intent to use. 

(1) A completed DEC-2 Forni, signed by an authorized 

representative of tlie applicant shall bc subm~tted to the executive director in accordance with the following rcquirements. 

(A) D~scrcte emiss~on credits may be used only aftcr 

tlie applicant has submitted thc notice and rece~ved executive director 

approval. 

(B) The application must bc submitted at least 45 days 

prior to the first day of the use period if tlie discrete emission credits 

werc generated from a facility, 90 days if tlie discrete emission credits 

wcre generated from a mobile source, and every 12 ~iionths tlicreafter 

for cach subsequcnt year if the use period exceeds 12 months. 

(C) A copy of the application shall also be sent to thc 

federal land manager 30 days prior to usc if the user is located within 

I00 kilometers of a Class 1 area, as listed in 40 CFR Part 8 1 (2001). 

(D) The application must include, but is not limited to, 

tlie following information for each use: 

(i) the applicable state and federal requirements that 

the discrete emission credits will be used to comply witli and the intended use period; 

(ii) tlie amount of discrete emission credits needed; 

(iii) the baseline emission rate, activity level, and total emissions for the applicable facility or mobile source; 

(iv) the actual emission rate, activity level, and total 

emissions for the applicable facility or mobile source; 

(v) tlie most stringent emission rate and tlie most 

stringent emission level for the applicable facility or mobile source, 

considering all applicablc regulatory requirements; 

(vi) a complete description of tlie protocol, as submitted by the executive director to the United States Environmental 

Protection Agency for approval, used to calculate the amount of discrete emission credits needed; 

(vii) the actual calculations performed by tlie user to 

determine the amount of discrete emission credits needed; 

(viii) tlie date that the discrete emission credits werc 

acquired or will be acquired; 

(ix) the discrete emission credit generator and tlie 

original certificate of the discrete emission credits acquired or to be 

acquired; 

(x) the price ofthe discrete emission credits acquired 

or tlie expected price of the discrete emission credits to be acquired, 

except for transfers between sites under common ownership or control; 

(xi) a statement tliat due diligence was taken to vcrify that the discrete emission credits were not previously used, tlie discrete emission credits were not generated as a result ofac~ions prohibited under this regulation, and the discrete emission credits will not be 

used in a manner prohibited under this regulation; and 

hii) a certification of use. that must contain certification under penalty of law by a responsible official of the user of truth, 

accuracy, and completeness. This certif cation must state tliat based on 

ADOPTED RULES . Augllst 10, 2007 32 TexReg 5001 
inrormatio~~ and belief fonned after reasonable inquiry, tl~e statements 

and infonnatio~~ in the document are true, accurate, and complete. 

(2) DERC use calculation. 

(A) To calculate the amount of discrete emission credits necessary to comply with $51 17.123. 1 17.223, 1 17.320, 1 17.323, 

117.423, 1 17.1020. 117.1 120, 1 17.1 220, or 1 17.3020 of this title (relating to Sourcc Cap; and Systern Cap), a user may usc the equations 

listed in those sections, or the following equations. 

(i) For the rolling average cap: 

Figure: 30 TAC $10 I .376(d)(2)(A)(i) 

(ii) For maximum daily cap: 

Figure: 30 TAC $ lOI,376(d)(2)(A)(ii) 

(B) The amount of discrete emission credits needed to 

demonstrate compliance or meet a regulatory requirement is calculated 

as follows. 

Figure: 30 TAC 1) 101.376(d)(2)(B) (No change.) 

(C) The amount of discrete e~nissio~l credits necded to 

exceed an allowable emissions level is calculated as follows. 

Figure: 30 TAC $1 01.376(d)(2)(C) (No change.) 

(D) The user shall retire 10% more discrete emission 

credits tl~an are needed, as calculated in this paragraph, to ensure that 

tl~e facility or mobile source environmental contribution retirement 

obligation will be met. 

(E) If the amount of discrete emission credits needed to 

meet a regulatory requirement or to demonstrate compliance is greater 

than ten tons, an additional 5.0% of the discrete emission credits 

needed, as calculated in this paragraph, must be acquired to ensure 

that sufficient discrete emission credits are available to the user with 

an adequate compliance margin. 

(3) A user may submit a notice late in the case of an ernergency, but the notice must be submitted before the discrete emission 

credits can be used. The user shall include a complete description of 

the emergency situation in the notice ofintent to use. All other notices 

submitted less than 45 days prior to use, or 90 days prior to use for a 

mobile source, will be considered late and in violation. 

(4) The user is responsible for detennining the credits it 

will purchase and notifying the executive director of the selected generating facility or mobile source In the notice of intent to use. If the 

generator's credits are rejected or the notice of generatio11 is incomplete, the use of discrete emission credits by the user may be delayed 

by the executive director. The user cannot use any discrete emission 

credits that have not been certified by the executive director. The executive director may reject the use of discrete en~ission credits by a 

facility or mobile source if the credit and use cannot be demonstrated 

to meet the requirements ofthis sectio~~. 

(5) If the facility is in an area with an ozone seasoll less 

than 12 months, the user shall calculate the amount of discrete emission credits needed for the ozone seasol1 separately from tl~e non-ozone 

season. 

(e) Notice of use. 

(I) The user shall calculate: 

(A) the amount of discrete emission credits used, including the amount or discrete emission credifs retired to covcr the environmental contribution, as described in subsection (d)(2)(C) of this 

section, associated w1t11 actual use; and 

(B) the amount of discrete emission credits not used, 

including the amou~~t of excess discrete emission credits that were purchased to cover the environmental contribution, as described in subsection (d)(2](C) of this section, but not associaletl with the actual use, 

and available for future use. 

(2) DERC use is calculated by the following equations 

(A) The amount of d~screte emission credits used to 

demonstrate co~npliance or meet a regulatory requirement is calculated 

as follows. 

Figure: 30 TAC fi 101.376(e)(2)(A) (No change.) 

(B) The amount of discrete emission credits used to 

comply wit11 permit allowables is calculated as follows. 

Figure: 30 TAC $ 101.376(e)(2)(B) (No change.) 

(3) A DEC-3 Form, Notice of Use of Discrete Emission 

Credits, shall be submitted to the commission in accordance with the 

followi~~g requirements. 

(A) The notice must be submitted within 90 days after 

the end of the use period. 

(B) The notice must be submitted within 90 days ofthe 

conclusio~~ of each 12-month usc period, if applicable. 

(C) The notice is to be used as the mechanism to update 

or amend the notice of intent to use and must include any information 

different from that reported in the notice of intent to use, including, but 

not limited to, the following items: 

(i) purchase price of the discrete emission credits 

obtained prior to the current use period, except for transfers between 

sites under common ownership 01. control; 

(ii) the actual amoont of discrete emission credits 

possessed during the use period; 

(iii) the actual emissions during the use period for 

volatile organic compounds and nitrogen oxides; 

(iv) tl~e actual amount of discrete emission credits 

used; 

(v) the actual environmental contribution; and 

(vi) the amount of discrete emission credits available for future use. 

(4) Discrete emissioll credits that are not used during the 

use period are surplus and remain available for transfer or use by the 

holder. In addition, any portion of the calculated environ~nental contribution not attributed to actual use is also available. 

(5) The user is in violation of this section if the user submits 

the report of use later than the allowed 90 days following the conclusion 

of the use period. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 27, 2007 

TRD-200703291 

Robert Martinez 

Director. Environmental Law Division 

Texas Commission on Environmental Quality 

EHective date: August 16, 2007 

Proposal publication date: February 23. 2007 

For further information, please call: (51 2) 239-6087 

32 TexReg 5002 August 10, 2007 Textis Register 
DIVISION 5. SYSTEM CAP TRADING 

30 TAC $101.383, $101.385 

STATUTORY AUTHORITY 

The amended sections are adopted under Texas Water Code 

(TWC), 55.102, concerning General Powers, that provides the 

commission with the general powers to carry out its duties under 

the Texas Water Code; TWC, 55.103, concerning Rules, that 

authorizes the commission to adopt rules necessary to carry 

out its powers and duties under the Texas Water Code; TWC, 

55.105, concerning General Policy, that authorizes the commission by rule to establish and approve all general policy of the 

commission; and under Texas Health and Safety Code (THSC), 

5382,017, concerning Rules, that authorizes the commission to 

adopt rules consistent with the policy and purposes of the Texas 

Clean Air Act. The amended sections are also adopted under 

THSC, 5382.002, concerning Policy and Purpose, that establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general 

welfare, and physical property; 5382.011, concerning General 

Powers and Duties, that authorizes the commission to control 

the quality of the state's air; and 5382.012, concerning State 

Air Control Plan, that authorizes the commission to prepare and 

develop a general, comprehensive plan for the proper control 

of the state's air. The amended sections are also adopted under THSC. 5382.014, concerning Emission Inventory, that authorizes the commission to require a person whose activities cause 

air contaminant emissions to submit information to enable the 

commission to develop an emissions inventory; and 3382.01 6, 

concerning Monitoring Requirements; Examination of Records, 

that authorizes the commission to prescribe reasonable requirements for the measuring and monitoring of air contaminant emissions. The amended sections are also adopted under 42 United 

States Code, 57410(a)(2)(A), that requires SIPS to include enforceable measures or techniques, including economic incentives such as fees, marketable permits, and auction of emission 

rights. 

The amended sections implement THSC, $5382.002, 382.011, 

382.012, 382.014, 382.016, and 382.017. 

This agency hereby certifies that the adoption has been reviewed 

by legal counsel and found to be a valid exercise of the agency's 

legal authority. 

Filed with the Office of the Secretary of State on July 27, 2007 

TRD-200703292 

Robert Martinez 

Director, Environmental Law Division 

Texas Commission on Environmental Quality 

Effective date: August 16, 2007 

Proposal publication date: February 23. 2007 

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

CHAPTER 305. CONSOLIDATED PERMITS 

The Texas Commission on Environmental Quality (TCEQ 

or commission) adopts amendments to 55305.69, 305.175, 

305.571, and 305.572. Section 305.69 is adopted with changes 

to the proposed text as published in the March 9, 2007, issue 

of the Texas Register (32 TexReg 1203). Sections 305.175, 

305 571, and 305.572 are adopted without changes to the 

proposed text, and will not be republished. 

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS 

FOR THE ADOPTED RULES 

The federal hazardous waste program is authorized under 

53001 of the Resource Conservation and Recovery Act (RCRA) 

of 1976, 42 United States Code, 56921 et seq. States may 

obtain authorization from the United States Environmental 

Protection Agency (EPA) to administer the hazardous waste 

program at the state level. State authorization is a rulemaking 

process through which EPA delegates the primary responsibility of implementing the RCRA hazardous waste program to 

individual states in lieu of EPA. This process ensures national 

consistency and minimum standards while providing flexibility 

to states in implementing rules. State RCRA programs must 

always be at least as stringent as the federal requirements. 

Since the beginning of the federal hazardous waste program, 

the State of Texas has continuously exercised its prerogative to 

participate in the EPA's authorization program. Texas received 

authorization of its hazardous waste "base program" under the 

RCRA on December 26, 1984. Texas received authorization for 

revisions to its base hazardous waste program for RCRA Clusters I and II on February 17, 1987. Texas submitted further revisions to its hazardous waste program and received final authorization of RCRA Clusters Ill through X on March 15. 1990; July 

23,1990; October 21,1991 ; December 4,1992; June 27,1994; 

November 26, 1997; October 18, 1999; September 11, 2000; 

and June 14, 2005. 

To maintain authorization, the commission must adopt regulations that meet the minimum standards of federal programs 

administered by EPA. Because the federal regulations undergo 

regular revision, the commission adopts new regulations to meet 

the changing federal regulations. The commission must adopt 

rule amendments that implement certain mandatory revisions 

to the federal hazardous waste program, which were made by 

EPA after June 30. 2000. In order for the State of Texas to 

maintain its RCRA authorization and continue to receive federal 

funding for the program, the mandatory federal rule changes in 

RCRA Clusters XI. XII. XIII, and XV must be incorporated into 

state rules. 

This adopted rulemaking includes the mandatory parts of RCRA 

Clusters XI, XII, XIII, and XV. Establishing equivalency with federal regulations will enable the State of Texas to increase its 

level of authorization to operate aspects of the federal hazardous 

waste program in lieu of the EPA. Additionally, the timely adoption of these federal rules allows the commission to continue 

receiving special project funding through the EPA Performance 

Partnership Grant. 

The Hazardous Waste Combustion Maximum Achievable 

Control Technology (MACT) regulations are multi-media at the 

federal and state level, affecting both air quality and hazardous 

waste management. The TCEQ has already adopted certain 

parts of Title 40 Code of Federal Regulations (CFR) Part 63, 

Subpart EEE (i.e., the Hazardous Waste Combustion MACT 

rules) prior to this adopted rulemaking under air quality regulations at Title 30, Texas Administrative Code (TAC), Chapter 

113. This adopted rulemaking includes other parts of the federal 

combustion MACT program, which are codified at 40 CFR Parts 

264, 265, 266, and 270. The adopted rule changes related to air 

quality are necessary to be consistent with previously adopted 

federal requirements. 

3PTED RULES Augnst 10, 2007 32 TexReg 5003 
Figure: 30 TAC 5 10 1.306@)(3) 

Calculation of Emission Reductions Needed for System Cap or Source Cap 

N = the total number of emission units in the source cap 

I i = each emission unit in the source cap I 

Hi = actual daily heat input, in million British thermal units (MMBtu) per day, as calculated 

according to $8 117.123(b)(l) or (2), 117.223(b)(l) or (2), 117.320(~)(1) - (3), 117.323(b)(l) or 

(2), 117.423@)(1) or (2), 117.1020(c)(l) or (2), 117.1 120(c)(l) or (2), or 117.1220(~)(1) or (2) 

of this title 

Ri = the facility's emission factor, in pounds (Ib)/MMBtu, is defined as in $81 17.123(b)(l) or 

(2), 117.223@)(1) or (2), 1 17.320(~)(1) - (3), 117.323(b)(l) or (2), 117.423(b)(l) or (2), 

117.1020(c)(l) or (2), 117.1 120(c)(l) or (2), or 117.1220(~)(1) or (2) of this title 

H,, = the maximum daily heat input, in MMBtu per day, expected for an emission unit during the 

use period 

R, = the maximum emission factor, in Ib/MMBtu, expected for an emission unit during the use 

period 

- 

32 TexReg 5040 August 10,2007 Texas Register 
Figure: 30 TAC $101.353(a) 

(1) A= number of allowances rounded to tenths of tons; 

I (2) B = the facility's baseline emission rate and is calculated as follows: I I (A) For facilities in operation prior to January 1, 1997: I 

Where: LAg7 = the facility's level of activity, as certified by the 

executive director for 1997; 

LA98 = the facility's level of activity, as certified by the 

executive director for 1998; 

LA99 = the facility's level of activity, as certified by the 

executive director for 1999; 

EFg7 = the facility's emission factor for 1997 or the emission 

specificationsunder §$117.310, 117.1210, and 117.2010 ofthis 

title (relating to Emission Specifications for Attainment 

Demonstration; and Emission Specifications) (ESAD) whichever 

is higher, in pounds per unit of activity, (not to exceed any 

applicable federal or state regulation, rule, or permit limit), as 

certified by the executive director; 

EFg8 = the facility's emission factor for 1998 or the emission 

specifications under ESAD, whichever is higher, in pounds per 

unit of activity, (not to exceed any applicable federal or state 

regulation, rule, or permit limit), as certified by the executive 

director; 

EF9, = the facility's emission factor for 1999 or the emission 

specifications under ESAD, whichever is higher, in pounds per 

unit of activity, (not to exceed any applicable federal or state 

regulation, rule, or permit limit), as certified by the executive 

director. 

(B) For existing facilities not in operation prior to January 1, 1997 and that have 1 

TABLES AND GRAPHICS Allgust 10,2007 32 TexReg 5041 
been in operation less than five complete consecutive calendar years 

beginning after the end of the adjustment period and have not established 

two years of baseline data: 

Where: LAAllowable = The level of activity authorized by the executive 

director until such time two consecutive calendar years of actual 

level of activity data is available; 

EFAllowablc = The emission factor or the emission specifications 

under ESAD, whichever is higher, authorized by the executive 

director until such time two consecutive calendar years of actual 

emission data is available. 

(C) For existing facilities not in operation prior to January 1, 1997, and that have 

established two consecutive calendar years of baseline data out of the first 

five years of operation following the end of the adjustment period: 

Where: LA = the facility's level of activity, as certified by the 

executive director, for the first of any two consecutive years 

within the first five years of operation; 

LAYear-:! = the facility's level of activity, as certified by the 

executive director, for the second of any two consecutive years 

within the first five years of operation; 

EFYoar-l = the facility's emission factor or the emission 

specifications under ESAD, whichever is higher, in pounds per 

unit of activity, (not to exceed any applicable federal or state 

regulation, rule, or permit limit), as certified by the executive 

director, for the first of any two consecutive years within the first 

five years of operation; 

EF y,a,Z = the facility's emission factor or the emission 

specifications under ESAD, whichever is higher, in pounds per 

unit of activity, (not to exceed any applicable federal or state 

regulation, rule, or permit limit), as certified by the executive 

director, for the second of any two consecutive years within the 

first five years of operation. 

32 TexReg 5042 Aiigiist 10, 2007 Texas Register 
(3) X = reduction factor, where: 

(A) For all boilers, auxiliary steam boilers, and stationary gas turbines (including 

duct burners used in turbine exhaust ducts) withn an electric power 

generating system, as defined in $1 17.10(14)(A) of this title (relating to 

Definitions), located in the Houston-Galveston-Brazoria nonattainment area: 

(i) for January 1,2002 through March 31, 2003, X = 0.00; 

(ii) for April 1,2003 through March 31,2004, X = 0.50; 

(iii) on or after April 1,2004, X = 1.00; 

(B) For facilities subject to the emission specifications under $ 11 7.3 1 O(a)(l)(A) 

and (B), (2)(A), (9, (8)(A)(i), (8)(B), (9)(A)(ii), (lo), or (1 1) of this title: 

(i) for January 1,2002 through March 3 1,2004, X = 0.00; 

(ii) for April 1,2004 through March 31,2005, X = 0.47; 

(iii) for April 1, 2005 through March 3 1, 2006, X = 0.80; 

(iv) for April 1,2006 through March 31,2007, X = 0.93; 

(v) on and after April 1,2007, X = 1.00; 

(C) For all other facilities: 

(i) for January 1,2002 through March 3 1,2004, X = 0.00; 

(ii) for April 1,2004 through March 3 1,2005, X = 0.389; 

(iii) for April 1,2005 through March 31,2006, X = 0.667; 

(iv) for April 1,2006 through March 3 1, 2007, X = 0.778; 

(v) on and after April 1,2007, X = 1.00; 

(D) Alternatively, facilities subject to the reduction factors under subparagraph B 

of this paragraph may elect to comply with the following: 

(i) for January 1,2002 through March 3 1,2005, X=O.OO; 

(ii) on and after April 1,2005, X=1.00. 

(E) Election to comply with the alternative reduction schedule under 

subparagraph (D) of this paragraph shall be made by letter to the executive 

director no later than April 1,2003. 

(F) For calendar years which include two different reduction factors, the 

reduction factor shall be adjusted using the appropriate ratio to reflect the 

TABLES AND GRAPHICS Arlgusf 10, 2007 32 TexReg 5043 
number of months covered by each reduction factor. 

(4) LAHA = historical average level of-activity, where: 

(A) For facilities in operation on or before January 1,1997, the average level of 

activity, as certified by the executive director, for 1997, 1998, and 1999; or 

(B) For existing facilities which began operation after January 1, 1997, LAHA is: 

(i) the level of activity authorized by the executive director until such time 

two consecutive calendar years of actual level of activity data is 

available, beginning after the end of the adjustment period; or 

(ii) when two complete consecutive calendar years of actual level of activity 

data is available, beginning after the end of the adjustment period, the 

level of activity becomes the average of the facility's actual level of 

activity over those two consecutive calendar years of actual level of 

activity data. 

(5) EFfiml = emission factor, as listed in $4 1 17.3 10, 1 17.12 10, or I 17.20 10 of this title. 

(6) For facilities using alternative emission specifications as allowed in 4 1 17.3 10(a)(17) 

or 4 1 17.201 0(c)(6) of this title, the level of activity for any formula will be the lowest 

of the level of activity as calculated in variables (2)(A), (2)(B), or the level of activity 

limited by an enforceable limit or commitment necessary to qualify for an alternative 

emission specification in 4 1 17.3 1 O(a)(17) or 4 1 17.20 10(c)(6) of this title. 

32 TexReg 5044 August 10, 200 7 Texas Register 
Figure: 30 TAC 410 1.376(d)(2)(A)(i) 

Amount of DERCs 

Required = [(EH, x ER, ) - (H,. x R;)] x [ &) i=l (tons) 

Where: 

d = the number of days in the use period 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Hi = actual daily heat input, in million British thermal units (MMBtu) per day, as 

calculated according to $§117.123@)(1), 1 17.223@)(1), 1 17.320(~)(1) and (2), , 

117.323@)(1), 1 17.423@)(1), 1 17.1020(c)(l), 1 17.1 120(c)(l), 1 17.1220(~)(1), or 

117.3020(c) of this title (relating to Source Cap; and System Cap) as applicable 

Ri = actual emission rate, in pounds (Ib)/MMBtu, as defined in $41 17.123(b)(l), 

11 7.223@)(1), 117.320(~)(1) and (2), 1 17.323@)(1), 117.423@)(1), 117.1 020(c)(l), 

117.1 120(c)(l), 117.1220(c)(l), or 1 17.3020(c) of this title as applicable 

EH; = expected new daily heat input, in MMBtu per day 

ERi = expected new emission rate, in lb/MMBtu. 

TABLES AND GRAPHICS August 10,2007 32 TexReg 5045 
Figure: 30 TAC $ lOl.376(d)(2)(A)(ii) 

N 1 

Amount of DERCS Required (tons) = [(EHM~ER~)- (HM~R~)]- 

i=l 2000 

Where: 

i = each emission unit in the source or system cap 

N = the total number of emission units in the source or system cap 

Ri= in IbIMMBtu, is defined as in $81 17.123@)(2), 117.223(b)(2), 117.320(~)(3), 

1 17.323(b)(2), 117.423@) (2), 117.1020(~)(2), 117.1 120(c)(2), or 117.1220(~)(2) of this 

title (relating to Source Cap; and System Cap) as applicable 

HMi = the maximum daily heat input, in MMBtuIday, as defined in 

$81 17.123@)(2), 117.223@)(2), 117.320(~)(3), 117.323(b)(2), 117.423(b)(2), 

1 17.1020(~)(2), 1 17.1 120(c)(2), or 1 17.1220(~)(2) of this title as applicable 

EHMi = expected new maximum daily heat input, in MMBtu per day 

ERi = expected new emission rate, in lb/MMBtu. 

Figure 1 : 30 TAC Chapter 290--Preamble 

Estimated Agency Costs to Implement Stage 2 Drinking Water Rules 

1 Costs I $1,436,550 1 $1,400,046 1 $2,016,169 1 $1,117,050 $1,098,792 1 $7,068,607 1 

32 TexReg 5046 Allgllst 10, 200 7 Texas Register 

2007 2008 

$3 17,778 

161,822 

920,446 

GWR 

LT2 

DBP2 

Total 

$3 17,778 

154,489 

964,283 

2009 

$389,644 

161,822 

1,464,703 

2010 

$862,400 

161,822 

92,828 

201 1 

$862,400 

161,822 

74,570 

Total Costs 

$2,750,000 

80 1,777 

3,5 16,830