STATE OF TEXAS OFFICE OF THE GOVERNOR GEORGE W. BUSH GOVERNOR 

### January 3, 2000 Mr. Gregg Cooke Region VI Administrator U.S. Environmental Protection Agency 1445 Ross Avenue Dallas, TX 75202-2733 DearMr. Cooke: ....**,I-:~**

...:0..._ (.:-,**"-~.:.: ;-T~**  :::-



# - Enclosed are proposed revisions to Texas' State Implementation Plan (SIP) that the Texas Natural Resource Conservation Commission (Commission) adopted on December 16, 1999. The first package ofadopted amendments to Chapters 101 and 116 implementthe requirements ofSenate Bill 7, 76th 

### Legislature, 1999, concerning the emissions banking and trading of allowances and the permitting ofgrandfathered electric generating facilities. The second package ofadopted amendments to Chapter 116 implements the new procedures for standard permits authorizedby Senate Bill 766, 76th 

### Legislature, 1999. The public hearing certification, complete record ofthepublic hearing, and accompanying order are also enclosed. I look forward to your expeditious approval ofthese revisions to the Texas SIP.

W.BUSH GWB/bb:pf Enclosures cc: Mr. Robert J. Huston, Chainnan, Texas Natural Resource Conservation Commission Mr. Jeffrey A. Saitas, P.E., Executive Director, Texas Natural Resource Conservation Commission

POST OFFICE Box 12428 AUSTIN, TEXAS 78711 (512) 463-2000 (VOICE)/(512) 475-3165 (TDD)Texas Natural Resource Conservation Commission Public Hearings

October 1999 Concerning Revisions To

Chapters 101 and 116 Electric Industry Restructuring (SB 7) Rule Log Number 99033-1l6-AI Volume lof2 "INTRODUCTION The commission held public hearings in EI Paso and Lubbock on October 1, 1999, in Austin on October 4, 1999, in Irving on October 5, 1999, in Houston on October 7, 1999, and in Beaumont on October 7, 1999. The hearings were held to consider amendments to Chapters 101 and 116, which implement the requirements ofSenate Bill 7, concerning the permitting ofgrandfathered and electing electric generating facilities. Written comments were accepted through October 11, 1999. All testimony and comments have been reviewed and seriously considered. This volume contains a complete record ofthe public hearing and is divided into the following four sections:

o Public Notification and Proposal o Written and Oral Testimony o Evaluation ofTestimony o StaffRecommendations Additional copies ofthis hearing record are maintained in the TNRCC central office at 12100 North IH-35, Austin, Texas 78753. For further information, contact Beecher Cameron at (512) 239-1495.

# STAFF RECOMMENDATIONSTexas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI SUBCHAPTER H : EMISSIONS BANKING AND TRADING DIVISION 2 : EMISSIONS BANKING AND TRADING OF ALLOWANCES 

### §§lO1.330-101.337 §lO1.330. Definitions. Page 79

The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. (1) 

### Allowance - The authorization to emit one ton ofnitrogen oxides (NOx) or sulfur dioxide (SOz) during a control period. (2) 

### Authorized account representative - The responsible person who is authorized, in writing, to transfer and otherwise manage allowances. (3) 

### Banked allowance - An allowance which is not used to reconcile emissions in the designated year ofallocation, but which is carried forward into future years and noted in the compliance or broker account as "banked." (4) 

### Broker - A person not required to participate in the requirements ofthis division who opens an account under this division for the purpose ofbanking and trading emissions allowances.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 80
(5) Broker account - The account where allowances held by a broker are recorded. Allowances held in a broker account may notbe used to satisfy compliance requirements for this division. (6) Coal- All solid fuels classified as anthracite, bituminous, subbituminous, or lignite by the American Society for Testing and Materials Designation ASTM D388-92 "Standard Classification ofCoals by 

### Rank" (as incorporated by reference in Title 40 Code ofFederal Regulations, §72.13 (effective June 25, 1999)). (7) Coal-fJred - The combustion offuel consisting ofcoal as defined in paragraph (6) ofthis section or any coal-derived fuel (except coal-derived gaseous fuels with a sulfurcontentno greater than natural gas), alone or in combination with any other fuel. The defmition is independent of the percentage ofcoal or coal-derived fuel consumed during any control period. (8) Compliance account - The account where allowances held by an EGF ormultiple EGFs are recorded for the purposes ofmeeting the requirements ofthis division and Chapter 116, SubchapterI ofthis title (relating to Electric Generating Facility Permits). EGFs not under common ownership or control may have separate compliance accounts. (9) Control period - The 12-monthperiod beginning May 1 ofeach year and ending April 30 ofthe following year. Control periods begin May 1, 2003.Texas Natural Resource Conservation Commission Chapter 101 - General RuIes Rule Log No. 99033-101-AI Page 81

(10) East Texas Region - All counties traversed by or east ofInterstate Highway 35 north ofSan Antonio ortraversed by or east ofInterstate Highway 37 south ofSan Antonio, and also including Bexar, Bosque, Coryell, Hood, Parker, Somerville, and Wise Counties. (11) Electing EGF - An electric generating facility permitted under Chapter 116, Subchapter B ofthis title (relating to New Source Review Permits) which is not subjectto the requirements ofTexas Utility Code, §39.264 and elects to comply with Chapter 116, Subchapter I of this title (relating to Electric Generating Facility Permits). (12) Electric generating facility (EGF) - A facility that generates electric energy for compensation and is owned or operated by a person in this state, including a municipal corporation, electric cooperative, or river authority. (13) El Paso Region - All ofEI Paso County, CiudadJuarez, Mexico, and Sunland Park, New Mexico. (14) Grandfathered EGF - A facility that is not subject to the requirement to obtain a permit under TCAA, §382.0518(g), and that generates electric energy for compensation and is owned or operated by a person in this state, including a municipal corporation, electric cooperative, or river authority.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-lOI-AI Page 82

(15) Heat input - The heat derived from the combustion ofany fuel at an EGF. Heat input does not include the heat derived from reheated combustion air, recirculated flue gas, or exhaust from other sources. (16) NOx allowance - An authorization to emit is valid only for the purposes of meeting the requirements ofthis division and Chapter 116, Subchapter I ofthis title. (17) Person - For the purpose ofinitial issuance ofpermits under Chapter 116, Subchapter I ofthis title, and for the issuance ofallowances under this division, a person includes an individual, a partnership oftwo ormore persons having ajoint or common interest, a mutual or cooperative association, and a corporation, but does not include an electric cooperative. (18) S02 allowance - An authorization to emit S02 valid only for the purposes for meeting the requirements ofthis division and Chapter 116, Subchapter I ofthis title. (19) West Texas Region - All counties not contained in the East Texas Region or EI Paso Region.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI 

### §101.331. Applicability. This division applies only to the following: Page 83

(1) electric generating facilities pennined under Chapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits); and (2) brokers. 

### §101.332. General Provisions. (a) Allowances are valid only for the purposes ofmeeting the requirements ofthis division and for meeting the requirements ofChapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits), and cannot be used to meet or exceed the limitations ofany annual emission limitation authorized under Chapter 116, Subchapter B ofthis title (relating to New Source Review Permits) or any applicable rule or law. (b) On June 1 after every control period, a grandfathered or electing electric generating facility (EGF) shall hold a quantity ofallowances in its compliance account that is equal to or greater than the total emissions ofthat air contaminant emitted during the prior control period. Compliance with the allowance system will begin with the control period beginning May 1, 2003.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 84

(c) Emission reductions used to satisfy the requirements ofthe Emissions Banking and Trading ofAllowances (EBTA) program cannot be used to generate emission reduction credits or discrete emission reduction credits. (d) Allowances cannot be used for netting requirements to avoid the applicability offederal and state new source review (NSR) requirements. (e) Allowances cannot be used to satisfy offset requirements for new or modified sources subject to federal nonattainment NSR requirements. (f) An allowance does not constitute a security or a property right. (g) All allowances will be allocated, transferred, or used as whole allowances. To determine the number ofwhole allowances, the number ofallowances will be rounded down for decimals less than 0.50 and rounded up for decimals of0.50 or greater. (h) One compliance account shall be used for multiple EGFs permitted under Chapter 116, Subchapter I ofthis title located at the same property and under common ownership or control. 

### §lOl.333. Allocation ofAllowances. Allowances will be allocated according to the requirements ofthis section.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 85

(1) Except as provided inparagraphs (2) and (3) ofthis section, allowances will be calculated for grandfathered electric generating facilities (EGF) using the following equation: Figure: 30 TAC §!01.333(1) 

## ER*HI A=------- 

## 2000 lb/allowance Where: A 

### HI

ER 

## = =



## = Number ofallowances Total heat input (million British thennal units (MMBtu» as listed in the 1997 Emissions Scorecard from EPA's Acid Rain Program. or ifnot listed in the 1997 Emissions Scorecard, by a method approved by the executive director, consistent with the emission reduction requirements ofthis division. Emission rate, as defmed in subparagraphs (A) and (B) ofthis paragraph;

grandfathered EGFs. (A) Inthe East Texas Region: (i) 0.14 pound nitrogen oxides (NOx) per MMBtu; and (ii) 1.38 pounds sulfur dioxide**(SO~** per MMBtu only for coal-fired

(B) Inthe West Texas and El Paso Regions, 0.195 pound per MMBtu.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 86 (2) For electing EGFs, the amount ofallowances is equal to emissions as listed in the 1997 Emissions Scorecard from EPA's Acid Rain Program, or ifnot listed in the 1997 Emissions Scorecard, by a method approved by the executive director, consistent with the emission reduction requirements ofthis division; and in both cases, shall not exceed any ofthe following: (A) any annual emission limitation authorized under Chapter 116, Subchapter B ofthis title (relating to New Source Review Permits); (B) an applicable state orfederal requirement. (3) The commission may invalidate any allowances allocated to an electing EGF that authorize emissions in excess ofapplicable state or federal requirements. (4) Ifemissions ofNOx or, ifapplicable, S02' exceed the amount ofallowances for a given control period, allowances for the next control period will be reduced in an amount equal to the emissions exceeding the allowances in the compliance account. (5) Allowances will be allocated: (A) initially, by: (i) January 1, 2000, for grandfathered EGFs;Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 87

(ii) January 1, 2001, for electing EGFs; and municipal corporations, electric cooperatives, and river authorities that choose to obtain a permit under Chapter 116, SubchapterI ofthis title (relating to Electric Generating Facility Permits) for any grandfathered or electing EGFs previously exempted under §116.9lO(d) ofthis title (relating to Applicability); (B) subsequently, by May 1 ofeach year, beginning in 2004. (C) allowances will be allocated: (i) initially by commission order for all grandfathered and electing EGFs; (ii) notwithstanding clause (iii) ofthis subparagraph, at the beginning ofeach control period, the commission will deposit the same amount ofallowances into each grandfathered or electing EGF's compliance account; (iii) for electing EGFs, the annual deposit for any control period may be adjusted to reflect new state or federal requirements. (6) Allowances may be deducted from compliance accounts following the review of trading reports required under §101.336(b) ofthis title (relating to Emission Monitoring, Compliance, Demonstration, and Reporting.)Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-lOI-AI .Page 88

(7) The commission shall maintain a registry ofthe allowances in each compliance account. For each transfer, the registry shall include the price paid per allowance. The registry shall not containproprietary infonnation. 

### §lOl.334. Allowance Deductions. Allowances will be deducted from a grandfathered or electing electric generating facility's (EGF) compliance account for a control period based upon the following. (1) The following will have deducted from their compliance accounts allowances equal to the number oftons ofair contaminant emitted during the control period as reported in compliance with 

### §101.336 (relating to Emission Monitoring, Compliance Demonstration, and Reporting. (A) grandfathered EGFs; and (B) electing EGFs whose heat input for the control period is equal to or greater than its heat input for 1997; (C) electing EGFs whose heat input for the control period is less than its heat input for 1997 where the reduced utilization or shutdown has been replaced by another EGF permitted under Chapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits).Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 89

(2) For electing EGFs whose heat input for the control period is less than the heat input for 1997 and whose reduced utilization or shutdownhas not been replaced by another EGF, allowances will be deducted from the compliance account according to the following equation: Figure: 30 TAC §101.334(2) Ill1997 X 

## EFcp A = --------- 

## 2000 lbs/ allowance Where: A 

## = HII997 

## = EFcp 

## = Allowances to be subtracted from the compliance account Heat input from 1997 The emission factor for the control period in terms oflbs/MMBtu,or if an emission factor for the control period is not available, the most recently available emission factor for that EGF. (3) For electing EGFs whose heat input for the control period is less than the heat input for 1997 and whose reduced utilization or shutdownhas been replaced by another EGF not permitted under Chapter 116, Subchapter I ofthis title, allowances will be deducted from the compliance account according to the following equation: Figure: 30 TAC §101.334(3)Texas Natural Resource Conservation Corrunission Chapter 

### 10I - General Rules Rule Log No. 99033-101-AI 

## A

# =(HIcpX

## EFcp) 

## + [(fll1997 - 

## I-llcp) 

# * EFnew] 

## 2000 Ibs/allowance Where: Page 90

A

HI'997 EFnew =

= 

## =

= 

## = Allowances to be subtracted from the compliance account Heat input for the control period. The emission factor for the control period in terms ofIbs/MMBtu. Heat input from 1997 The emission factor in terms ofIbs/MMBtu for the EGF that replaced the thermal energy from the reduced utilization or shutdown. Ifthe specific EGF that replaced the thermal energy is not identifiable, the emission factor shall be equal to the average emission factor for all EGFs inthe state as listed in the 1997 Emissions Scorecard from EPA's Acid Rain Program. 

### §101.335. Allowance Banking and Trading. (a) Allowances notused for compliance during a control period may be banked for use in subsequent control periods. Allowances may only be used for the control period for which they were allocated or subsequent control periods, and may only be used within the same region where they were originally allocated.Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-lOI-AI (b) Allowances may be traded.at any time during the control period. (1) Only authorized account representatives may trade allowances. (2) Notification oftrades must occur within 30 days after the trade. (c) Allowance trades are prohibited priorto May 1, 2003. (d) Traded allowances held in compliance accounts must have originated from electric generating facilities in the same region. Page 91

(e) Allowances may be held only in compliance accounts for use by EGFs located in the region in which the allowances were originally allocated or inbroker accounts. §101.336. Emission Monitoring, Compliance Demonstration, and Reporting. (a) Emission monitoring and reporting shall be conducted in accordance with §116.914 ofthis title (relating to Emissions Monitoring and Reponing Requirements). (b) For each control period, grandfathered or electing electric generating facilities (EGF), must submit a repon to the commission by June 30 ofeach year detailing the following:Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-101-AI Page 92 (1) the amount ofemissions ofeach allocated air contaminant during the preceding control period. (2) a swnmary ofall final trades for the preceding control period. §101.337. EI Paso Region. (a) A grandfathered or electing electric generating facility (EGF) in the EI Paso Region may meet the emissions allowances by using credits from emissions reductions achieved in the City of Juarez, United States ofMexico and from EGFs located in Sunland Park, New Mexico. Emission reductions underthis section must meet the following criteria. (1) The emission reduction must be: (A) enforceable by the commission; (B) permanent, meaning that the emission reduction is unchanging for the remaining life ofthe source; (C) quantifIable, so that the emission reduction can be measured or estimated with confidence using replicable techniques;Texas Natural Resource Conservation Commission Chapter 101 - General Rules Rule Log No. 99033-1OI-AI Page 93

(D) surplus, such that the emission reduction is not otherwise required ofa facility by a state or federal law, regulation, or agreed order; and (E) a real reduction in which actual emissions are reduced. (2) The emission reduction mustbe reviewed and approved by the executive director prior to converting the credits into allowances under this program. (b) Grandfathered and electing EGFs in the El Paso Region are exempt from the requirements ofthis divisionjfeither EPA or the commission determines that reductions ofnitrogen oxides in the El Paso Region that would otherwise be required under this division would result in an increased ambient ozone level in El Paso County.

### Texas Natural Resource ConservationCommission Chapter 116 - Control ofAirPollutionby Pennits for

New Construction orModification Rule Log No. 99033-116-AI SUBCHAPTER A : DEFINITIONS §116.18 §116.18. Electric Generating Facility Permits Definitions. 

### Page 87

The following words and terms, when used in Subchapter I ofthis chapter (relating to Electric Generating Facility Permits) shall have the following meanings, unless the context clearly indicates otherwise. (1) Allowance - As defmed in §101.330(1) ofthis title (relating to DefInitions). (2) 

### Capacity factor - Either: (A) the ratio of

### an electric generating facility's (EGF) actual annual electric output (expressed in megawatt-hours) to the EGF's nameplate capacity times 8,760 hours; or (B) the ratio of

### an EGF's annual heat input (in millions ofBritish thermal units (MMBtu» to the EGF's maximum design heat input (in MMBtu per hour) times 8,760 hours. (3) 

### Coal- As defmed in §101.330(6) ofthis title.

### Texas Natural Resource Conservation Commission Chapter 116 - 

### Control ofAirPollution by 

### Permits for

New ConstructionorModification Rule Log No. 99033-116-AI (4) CoaI-rJred - As defined in §101.330(7) ofthis title. (5) Compliance account - As defmed in §101.330(8) ofthis title. (6) Control period - As defmed in §101.330(9) ofthis title. (7) Electing EGF - As defmed in §101.330(1l) ofthis title. 

### Page 

### 88

(8) Electric generating facility (EGF) - As defmed in §101.330(12) ofthis title. (9) Grandfathered EGF - As defined in §101.330(14) ofthis title. (10) Nameplate capacity - The maximum electrical output (expressed in megawatts) that an EGF can sustain over a specifiedperiod oftime when not restricted by seasonal or other deratings. (11) Peaking unit - An EGF that has: (A) an average capacity factor ofno more than 10% during the past three calendar years; and

### Texas Natural Resource Conservation Commission Chapter 116 - Control ofAirPollution by 

### Pennits for

New Construction orModification Rule Log No. 99033-116-AI Page 89

(B) a capacity factor ofno more than 20

### % in each ofthose calendar years. (12) Person - As defined in §101.330(17) ofthis title.Texas Natural Resource Conservation Commission Chapter 116 - Control ofAirPollution by Pennits for

New Construction orModification Rule LogNo. 99033-116-AI SUBCHAPTER I : ELECTRIC GENERATING FACILITY PERMITS 

### §§116.910-116.914, 116.916, 116.920-116.922, 116.930, 116.931 STATUTORY AUTHORITY Page 90

The new sections are adopted Wlder Texas Utilities Code, §39.264, which authorizes the commission to develop rules for the permitting ofelectric generating facilities; and Texas Health and Safety Code, Texas Clean Air Act (TCAA), §382.012, which provides the commission the authority to develop a comprehensive plan for the state's air; §382.017, which authorizes the commissionto adopt rules consistent with the policy and purposes ofthe TCAA; §382.0513, which authorizes the commission to establish and enforce permit conditions consistent with the TCAA; §382.051, which authorizes the commissionto issue permits; §382.0518, which authorizes the commission to issue permits for new construction and modifications; §382.0519, which authorizes the commission to issue volWltary emission reduction permits, §382.05191, which authorizes public notice for volWltary emission reduction permits; §382.05193, which authorizes permits through emissions reductions, §382.055, which authorizes the commission to establish procedures for review or renewal ofa permit; §382.056, which authorizes the commissionto require public notice ofcertain permit applications and procedures for requesting hearings and responding to comments; §382.0561, which authorizes hearing procedures for FOPs; §382.0562, which requires notices ofdecision; and §382.061, which authorizes the commission to delegate permitting authority to the executive director; and Texas Water Code, §5.122, which authorizes the commission to delegate uncontested matters to the executive director.Texas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollution by Permits for

New Construction orModification Rule Log No. 99033-116-AI 

### §116.910. Applicability. Page 91

(a) The owner or operator ofa grandfathered electric generating facility (EGF) shall apply for a permitto operate that facility under this subchapter. (b) Owners or operators ofelecting EGFs opting to obtain allowances under Chapter 101, Subchapter H, Division 2 ofthis title (relating to Emissions Banking and Trading ofAllowances), shall submit a request to alter any related existing New Source Review (NSR) permits at the time of application for a permitunder subsection (a) ofthis section. Alterations must be consistent with the requirements of §116.116(c) ofthis title (relating to Changes to Facilities). (c) The owner, or the operator who is authorized to act for the owner, ofa grandfathered or electing EGF is responsible for complying with this subchapter. (d) A municipal corporation, electric cooperative, or river authority may exclude any EGF with a nameplate capacity of25 megawatts or less from this subchapter. The municipal corporation, electric cooperative, or river authority must notify the commission by January 1, 2000, ofits intent to exclude those EGFs. Ifthe municipal corporation, electric cooperative, or river authority reevaluates its intentto exclude EGFs, it may choose to permit any ofthose EGFs consistent with the requirements ofthis subchapter.

### Texas Natural Resource ConservationCommission Chapter 116 - 

### Control ofAir

### Pollution by 

### Permits for

New Construction orModification Rule Log

### No. 99033-116-AI 

### Page 92

(e) Emissions ofnitrogen oxides shall be permitted under this subchapter for any grandfathered or electing EGF. Emissions ofsulfur dioxide and particulate matter shall be permitted under this subchapter only for grandfathered or electing coal-fired EGFs. Emissions ofother air contaminants from grandfathered EGFs may be permitted under this subchapter, provided the grandfathered EGFs meet the requirements ofChapter 116, SubchapterH ofthis title (relating to Voluntary Emission Reduction Permits). (f) Owners or operators ofgrandfathered facilities as defmed in §116.10 ofthis title (relating to General Definitions) at sites with grandfathered or electing EGFs subject to this subchapter may consolidate any permit issued under Chapter 116, SubchapterH ofthis title with a permit issued under this subchapter. (g) An EGF that generates electric energy primarily for internal use but that during 1997 sold, to a utility power distribution system, less than one-third ofits potential electrical output capacity, or less than 219,000 megawatt-hours, is not subject to the requirements ofthis chapter.Texas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollution

### by Permits for

New Construction orModification Rule Log No. 99033-116-AI §116.911. Electric Generating Facility Permit Application. Page 93

(a) Owners or operators ofgrandfathered or electing electric generating facilities (EGF) shall submit an application to authorize nitrogen oxides (NOx) emissions and, ifapplicable, sulfur dioxide (S0:J and particulate matter (PM) emissions. The application must include a completed Form PI-I-V, General Application. The Form PI-I-V must be signed by an authorized representative ofthe applicant. The Form PI-I-V specifies additional support information which must be provided before the application is deemed complete. In order to be granted an electric generating facility permit (EGFP), the owner or operator shall submit information to the commission which demonstrates that all ofthe following are met. (1) Measurement ofemissions and performance demonstration. Applicants must propose monitoring and reponing for the measurement ofemissions and demonstration ofperformance consistent with §116.914 ofthis title (relating to Emissions Monitoring and Reponing Requirements). (2) Control method. New control methods proposed in initial applications must comply with the requirements in §116.617(l), (3), (4)(A) and (B) and (5) - (9) ofthis title (relating to Standard Permit for Pollution Control Projects). (3) Air dispersion modeling or ambient monitoring for pollution control projects. Computerized air dispersion modeling and/or ambient monitoring may be required by the commission's

### Texas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAirPollution by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 94

Air Permits Division where there is an increase in emissions to determine the air quality impacts from controls proposed underparagraph (2) ofthis subsection. (4) Opacity limitations for coal-fired grandfathered and electing EGFs. The coal-fired grandfathered and electing EGFs must meetthe opacity limitations of §

### 111.111 ofthis title (relating to Requirements for Specified Sources). (b) 

### Application information for electing EGFs. (1) 

### In addition to the information required in this section, EGFP applications regarding electing EGFs shall contain the following information: (A) 

### documentation ofthe emissions from the 1997 Emissions Scorecard from the EPA Acid Rain Program, or ifthat information is not available, the actual emissions from that electing EGF for calendaryear 1997; (B) documentation offuel consumption, fuel heating values, and heat input in millions ofBritish thermal units 

### (MMBtu) for calendar year 1997; (C) 

### identification ofthe electing EGFs to be included.Texas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAirPollution

### by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI (2) Emissions ofair contaminants from electing EGFs otherthan NOx, and if Page 95

applicable, 502 and PM, already authorized by Chapter 116 ofthis title (relating to Control ofAir Pollution by Permits for New Construction or Modification), will not be authorized under this subchapter. (c) The owner or operator ofa grandfathered or electing EGF must submit an application for a permit under this subchapter on orbefore September 1, 2000. (d) All applications for an EGFP shall be submitted under the seal ofa Texas licensed professional engineer ifrequired by §116.110(e) ofthis title (relating to Applicability). 

### §116.912. Electing Electric Generating Facilities. An electing electric generating facility (EGF) may opt out ofthe requirements ofthis subchapter under the following conditions. (1) The electing EGF must notify the commission ofits intent to opt out prior to the beginning ofthe next control period. The decision to opt out ofthe requirements ofthis subchapter will become effective at the beginning ofthe control period that follows notification to the commission. (2) The electing EGF may not opt out during a control period.

### TexasNatural Resource Conservation Commission Chapter 116 - Control ofAirPollution

### by Permits for

New Construction orModification Rule Log No. 99033-116-AI (3) Once the electing EGF has opted out, all ofthe following apply: Page 96

(A) all allowances for the electing EGF will be voided by the commission and may notbe banked for subsequent use; (B) 

### no allowances will be allocated for subsequent control periods; (C) 

### the electing EGF may notpanicipate in 

### the emissions banking and trading ofallowances at any future date; (D) the owner or operator shall request an alteration to the existing New Source Review permit to remove the conditions referencing the electric generating facility permit. 

### §116.913. General and Special Conditions. (a) The following general conditions shall be applicable to every electric generating facility permit (EGFP) unless otherwise specified in the permit. (1) A permit issued under this subchapter authorizes the following:TexasNatural Resource Conservation Commission Chapter 116 - Control ofAir Pollution 

### by Pennits for

New Construction orModification Rule Log No. 99033-116-AI Page 97

(A) nitrogen oxides (NOx) emissions from all grandfathered and electing electric generating facilities (EGF); (B) sulfur dioxides (S02) emissions from coal-fIred grandfathered and electing EGFs. (C) particulate matter through opacity limitations as specified in §111.111 of this title (relating to Requirements for Specified Sources) for coal-fired grandfathered and electing EGFs. (2) An EGFP may permit emissions ofall other air contaminants from grandfathered EGFs, provided the requirements ofChapter 116, Subchapter H ofthis title (relating to Voluntary Emissions Reduction Permits) are met. (3) Grandfathered facilities as defmed in §116.10 ofthis title (relating to General DefInitions) at sites with grandfathered or electing EGFs and permitted under Chapter 116, Subchapter 

### H ofthis title may be consolidated with a permit issued under this subchapter. (4) The grandfathered or electing EGF must comply with Chapter 101, Subchapter H, Division 2 ofthis title (relating to Emissions Banking and Trading ofAllowances) including theTexas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollution by Permits for

New Construction orModification Rule LogNo. 99033-116-AI Page 98

requirement to maintain allowances in a compliance account. Allowances may be transferred in accordance with §101.335 ofthis title (relating to Allowance Banking). (5) Mass emission monitoring and reporting shall be conducted in accordance with §116.914 ofthis title (relating to Emissions Monitoring and Reporting Requirements). (6) OnJune 1 after every control period, a grandfathered or electing EGF subject to this subchapter shall hold a quantity ofallowances for emissions ofNOx and, where applicable, 

### S02' in its compliance account that is equal to or greater than the total emissions ofthat air contaminant emitted during the prior control period. (7) Owners or operators shall submit a report ofthe amount ofemissions ofeach allocated air contaminant, from the prior control period to the Air Permits Division consistent with the requirements of§101.336(b) ofthis title (relating to Emission Monitoring, Compliance Demonstration, and Reporting). (8) Coal-fired grandfathered and electing EGFs must meet the opacity limitations of §111.111 ofthis title (relating to Requirements for Specified Sources). (b) Special conditions may be included in the EGFP.Texas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollution by Pennits for

New Construction orModification Rule Log No. 99033-116-AI §116.914. Emissions Monitoring and Reporting Requirements. Page 99

(a) Grandfathered or electing electric generating facilities (EGF) subject to 40 Code ofFederal Regulations Part 75, effective June 25, 1999 (40 CPR Part 75) shall do the following. (1) For grandfathered or electing EGFs subject to the requirements of40 CFR Part 75, concerning Continuous Emission Monitoring, all monitoring systems must comply with the initial performance testing and periodic calibration, accuracy testing, and quality assurance/quality control testing specified in 40 CPR Part 75. (2) Forgrandfathered and electing EGFs subjectto 40 CFR Part 75, a certified monitoring system under 40 CFR Part 75 shall be used to demonstrate compliance with this subchapter. (A) Ifthe grandfathered or electing EGF has a flow monitor certified under 40 CFR Part 75, nitrogen oxides (NOx) emissions in pounds perhour shall be determined using a NOx continuous emission monitoring system (CEMS) and the flow monitor. (B) Ifthe grandfathered or electing EGF does not have a certified flow monitor, but does have a NOx CEMS, NOxemissions inpounds per hour shall be determined by multiplying pounds ofNOx per million British thennal units (lbsIMMBtu) times heat input in MMBtu per hour (MMBtulhr). The procedures in 40 CPR Part 75, Appendix F, concerning ConversionTexas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollution by Permits for

New Construction orModification Rule Log No. 99033-116-AI Page 100

Procedures, Section 3, shall be used to convert the measured concentration ofNOx and a diluent (carbon dioxide (C02) or oxygen**(O~)** into an emission rate in IbsIMMBtu. The procedures in 40 CFR Part 75, Appendix F, Section 5, shall be used to detennine the hourly heat input in MMBtulhr. These two values (lbslMMBtu and MMBtulhr) shall be multiplied together to detennine NOx emissions in lbs/hr. (C) The procedures in

### 40 CFR Part 75, Appendix E, concerning Optional NOx Emissions Estimation Protocol for Gas-fIred Peaking Units and Oil-fIred Peaking Units, may be used to estimate the NOxemission rate. (b) Grandfathered or electing EGFs not subject to 

### 40 CFR Part 75 shall comply with: (1) the initial perfonnance testing and periodic calibration, accuracy testing, and quality assurance/quality control testing specifIed in 

### 40 CPR Part 75; or (2) those same requirements in 40 CFR Part 60, concerning New Source Performance Standards (40 CFR Part 60). Actual emissions must be determined by multiplying the CEMs data by an adjustment factor of 1.1 for all grandfathered and electing EGFs not using a 

### 40 CFR Part 75 monitoring system ifthe CEMs exceeds 10% relative accuracy.

### Texas Natural Resource Conservation Commission Chapter 116 - Control ofAir Pollutionby Permits for

New Construction orModification Rule LogNo. 99033-116-AI Page 101

(3) in lieu ofthe monitoring required by paragraph (b)(l) or (2) ofthis subsection, the electric generating facility permit (EGFP) may authorize alternative monitoring to calculate mass emissions under this section. The applicant must submitthe following for review ofan alternative monitoring proposal: (A) a description ofthe monitoring approach to be used;

.(B) a description ofthe major components ofthe monitoring system, including the manufacturer, serial number ofthe component, the measurement span ofthe component, and documentation to demonstrate that the measurement span ofeach component is appropriate to measure all ofthe expected values; (C) an estimate ofthe accuracy ofthe system and documentation to demonstrate how the estimate ofaccuracy was determined; (D) a description ofthe tests that will be used for initial certification, initial quality assurance, periodic quality assurance, and relative accuracy; and (E) additional information may be requested before approving a request for alternative monitoring. Alternative monitoring shall be incorporated into the EGFP.Texas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAirPollution by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 

### 102

(4) emissions in pounds perhour shall be detennined using the NOx CEMS and one of the following methods. (A) The owner or operatormay elect to comply with subsection (a)(2)(A) or (B) ofthis section. (B) The grandfathered or electing EGF may use a flow monitor certified under 40 CFR Part 60 to determine emissions inpounds per hour. (C) NOx emissions in pounds perhour may be detennined by multiplying the IbslMMBtu times the heat input in MMBtulhr. The procedures in 40 CFR Part 60, Appendix A, Method 19 shall be used to convert the measured concentration ofNOxand a diluent (C02 or OZ) into emission rates in IbslMMBtu. The procedures in40 CFR Part 75, Section 5, Appendix F shall be used to determine the hourly heat input in MMBtuIhr. These two values (lbslMMBtu and MMBtulhr) shall be multiplied together to detennine NOx emissions in Ibslhr; (5) for grandfathered and electing EGFs with a heat input ofless than 100 MMBtu/hr and for peaking units emissions in pounds per hour, may be detennined using the procedures in Appendix E of40 CFR Pan 75 to estimate the emission rate. (c) The following requirements apply to all grandfathered and electing EGFs.

### Texas Natural Resource Conservation Commission Chapter 

### 116 - Control of

### Air Pollution

### by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 

### 103

(1) During a period when valid data is notbeing recorded by monitoring devices approved for use to demonstrate compliance with this subchapter, missing or invalid data shall be replaced with representative default data in accordance with the provisions of40 CFR Part 75, Subpart D, concerning Missing Data Substitution Procedures. (2) Data collected from monitoring ofgrandfathered and electing EGFs shall be used to calculate the actual emissions over a control period. The information inthis report shall be submitted by June 30 ofeach year and may be submitted with the report required under §101.336(b) of this title (relating to Emission Monitoring, Compliance Demonstration, and Reporting). At a minimum, the report shall contain the following information: (A) a description ofthe monitoring protocol; (B) a completed Form AR-l, Emissions Monitoring Data Fonn; (C) 

### other information 

### as necessary to validate the actual emissions during the prior control period, including, but not limited to, periodic calibration results and maintenance logs.Texas Natural Resource Conservation Commission Chapter 

### 116 - Control of

### AirPollution 

### by Permits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 

### 104

§116.916. Permits for Grandfathered and Electing Electric Generating Facilities in 

### EI Paso County. Grandfathered and electing electric generating facilities in EI Paso County are not required to meet nitrogen oxides allowance requirements ifthe commission or EPA determines that reductions in nitrogen oxides emissions in the EI Paso Region otherwise required by this subchapter would result in increased ambient ozone levels inEI Paso County. 

### §116.920. Public Participationfor Initial 

### Issuance. (a) An applicant for an electric generating facility permit (EGFP) shall publish notice ofintent to obtainthe permit in accordance with Chapter 39 ofthis title (relating to Public Notice). (b) Public notice for an EGFP may be combined with the public notice for a voluntary emission reductionpennit, under Chapter 116, Subchapter H ofthis title (relating to Voluntary Emission Reduction Permits). (c) Any person who may be affected by emissions from a grandfathered or electing EGF may request the commission to hold a notice and comment hearing on the EGFP application. The public commentperiod shall end 30 days after the publication ofNotice ofReceipt ofApplication and Intent to Obtain Permitunder §39.418 ofthis title (relating to Notice ofReceipt ofApplication and Intent toTexas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAir Pollution by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 

### 105

Obtain Permit). Any hearing request mustbe made in writing during the 3o-day public comment period. (d) Any hearing regarding initial issuance ofan EGFP shall be conducted under the procedures in §116.921 ofthis title (relating to Notice and Comment Hearings for Initial Issuance) and not under the APA. (e) Responses to public comments and the notice ofthe commission's decision to issue or deny an EGFP shall be conducted under the procedures in §116.922 ofthis title (relating to Notice ofFinal Action).(f) Aperson affected by a decision to issue or deny an EGFP may move for rehearing under the appropriate procedure in Chapter 

### 50 ofthis title (relating to Action on Applications and Other Authorizations) and may seekjudicial review under TCAA, §382.032 (relating to Appeal of Commission Action).

### Texas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAirPollution 

### by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI §1l6.921. Notice and Comment Hearings for Initial 

### Issuance. Page 

### 106

(a) The notice and commenthearing requirements apply only to the initial issuance ofa electric generating facility permit (EGFP). (b) 

### The commission shall decide whether to hold a hearing. The commission is not required to hold ahearing ifthe basis ofthe requestby a person who may be affected by emissions from a grandfathered or electing electric generating facility (EGF) is determined to be unreasonable. Ifa hearing is requested by a person who may be affected by emissions from a grandfathered or electing EGF, and that request is reasonable, the conunission shall hold ahearing. (c) At the applicant's expense, notice ofa hearing on adraft EGFP mustbe published in the public notice section ofone issue ofa newspaper ofgeneral circulation in the municipality in which the grandfathered or electing EGF is located, or in the municipality nearest to the location ofthe grandfathered or electing EGF. The notice mustbe published at least 30 days before the date set for the hearing. The notice must include the following: (1) 

### the time, place, and nature ofthe hearing; (2) a briefdescription ofthe purpose ofthe hearing; andTexas Natural Resource Conservation Commission Chapter 

### 116 - Control ofAir Pollution

### by Pennits for

New Construction orModification Rule Log No. 

### 99033-116-AI Page 107

(3) the name and phone number ofthe commission office to be contacted to verify that a hearing will be held. (d) Any person, including the applicant, may submit oral or written statements and data concerning the draft EGFP. (1) Reasonable time limits may be set for oral statements, and the submission of statements in writing may be required. (2) The period for submitting written comments is automatically extended to the close ofany hearing. (3) At the hearing, the period for submitting written comments may be extended beyond the close ofthe hearing. (e) A tape recording or written transcript ofthe hearing must be made available to the public. (f) Any person, including the applicant, who believes that any condition ofthe draft EGFP is inappropriate or that the preliminary decision to issue or deny the permit is inappropriate, shall raise all issues and submit all arguments supporting thatposition by the end ofthe public cormnentperiod.

### Texas Natural Resource Conservation Commission Chapter 116 - Control ofAirPollutionby Permits for

New Construction 0: 

### Modification Rule LogNo. 99033-ll6-AI Page 108

(g) 

### Any supporting materials for comments submittedunder subsection (f) 

### ofthis section must be included in full and may notbe incorporated by reference, unless the materials are one ofthe following: (1) 

### already part ofthe administrative record in the same proceedings; (2) state or federal statutes and regulations; (3) EPA documents ofgeneral applicability; or (4) other generally available reference materials. (h) The commission shall keep arecord ofall comments received and issues raised in 

### the hearing. This record is available to the public. (i) The draft EGFP may be changed based on comments pertaining to whether the permit provides for compliance with the requirements ofthis subchapter. (j) 

### The commission shall respond to comments consistentwith §116.922 ofthis title (relating to Notice ofFinal Action).Texas Natural Resource Conservation Commission Chapter 

### 116 - Control of

### AirPollution

### by Permits for

New Construction orModification Rule LogNo. 

### 99033-116-AI §1l6.922. Notice ofFinal Action. Page 

### 109

(a) Afterthe public commentperiod or the conclusion ofany notice and commenthearing, the commission shall send notice by first-class mail ofthe final action on the application to any person who commented during the public commentperiod or at the hearing, and to the applicant. (b) The notice must include the following: (1) the response to any comments submitted during the public commentperiod; (2) identification ofany change in the conditions ofthe draft electric generating facility permit and the reasons for the change; (3) a statement that any person affected by the decision ofthe commission may petition for rehearing under the appropriate procedure in Chapter 50 ofthis title (relating to Action on Applications and Other Authorizations) and may seekjudicial review under TCAA, §382.032 (relating to Appeal ofCommission Action).

### TexasNatural Resource Conservation Commission Chapter 116 - Control ofAirPollution by Pennits for

New Construction orModification Rule Log No. 99033-116-AI 

### §116.930. Modifications. Page 110

The owner or operatorplanning amodification ofa facility permitted underthis subchapter must comply with Subchapter B ofthis chapter (relating to New Source Review Permits) before work is begun on the construction ofthe modification. 

### §116.931. Renewal. Electric generating facility permits shall be renewed in accordance with Chapter 116, Subchapter D ofthis title (relating to Permit Renewals).REDLINE/STRIKEOUT VERSION SUBCHAPTER H : EMISSIONS BANKING AND TRADING DIVISION 2 : EMISSIONS BANKING AND TRADING OF ALLOWANCES §§lO1.330-101.337 §lO1.330. nefmitions. The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. (1) Allowance - The authorizationto emit one ton ofnitrogen oxide (NOx) or sulfur dioxide (5°2) during a control period. (2) Authorized account representative - The responsible person who is authorized, in writing, to transfer and otherwise manage allowances. (3) Banked allowance - An allowance which is not used to reconcile emissions in the designated year ofallocation but which is carried forward into future years and noted in the compliance orbroker account as "banked." (4) Broker -A person notrequired to participate inthe requirements ofthis division who opens an accountunder this division for the purpose ofbanking and trading emissions allowances. 1(54) Broker account - The account where allowances held by a brokerperson are recorded. Allowances held in a broker account may not be used to satisfy compliance requirements for this division. (6) Coal- All solid fuels classified as anthracite, bituminous, subbituminous, or lignite by the American Society for Testing and Materials DesignationASTM D388-92 "Standard Classification ofCoals by Rank" (as incorporatedby reference in Title 40 Code ofFederal Regulations, §72.13 (effective June 25, 1999» (7) Coal-fired - The combustion offuel consisting ofcoal as defined inparagraph (6) ofthis section or any coal-derivedfuel (except coal-derived gaseous fuels with a sulfur contentno greatertbannatural gas), alone or in combination withany otherfuel. The definition is independent of thepercentage ofcoal or coal-derived fuel consumed during any controlperiod. ( 8 5) Compliance account - The accountwhere allowances held by an EGF or multiple.EGFs are recorded for the purposes ofmeeting the requirements ofthis Divisionand Chapter 116, SubchapterI ofthis title (relatingto Electric Generating Facility Permits). EGFs notunder common ownership or controlmay have separate complianceaccounts. The aecotmt for an eleetrie generating facility (EOP) 01 mttltiple EOFs in which ailowances are held. (9 6) Control period - The 12 month period beginning May 1 ofeach year and ending April 30 ofthe following year. Control periods begin May 1, 2003. (10:::;) East Texas Region - All counties traversed by or east ofInterstate Highway 35 2north ofSan Antonio or traversed by or east ofInterstate Highway 37 south ofSan Antonio, and also including Bexar, Bosque, Coryell, Hood, Parker, Somerville, and Wise Counties. (119) Electric generating facility (EGF) - A facility that generates electric energy for compensation and is owned or operated by aperson in this state, including a municipal corporation, electric cooperative, or river authority. An EOF does not ineltIde a faeilit) that generates eleetrie energy plimari:l) for intemal use but that during 1997 sold, to a utility power disttibution system, less than Ofte third ofits potetrtial eleetrieai output eapaeit). (12 -8) Electing electric generating facility EGF - An electric generating facility permitted under Chapter 116, Subchapter B ofthis title (relating to New Source Review Permits) which is not subjecttothe requirements ofTexas Utilities Code, §39.264 and elects to comply with Chapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits). (13-te) EI Paso Region - All ofEI Paso County, CiudadJuarez, Mexico, and Sunland Park, New Mexico. (149) Grandfathered electricgenerating facility - A facility that is not subjectto the requirement to obtain apermitunder TCAA, §382.0518(g) and that generates electric energy for compensation and is owned or operated by a person in this state, including a municipal corporation, electric cooperative, or river authority. (15 +t) Heat input - The heat derived from the combustion ofany fuel at an EGF. 3Heat input does not include the heat derived from reheated combustion air, recirculated flue gas, or exhaust from other sources. (16 H) NOx allowance - An authorization to emitNOx• A NOx B:llo'Nflflee is valid only for the purposes ofmeeting the requirements ofthis division and Chapter 116, Subchapter I ofthis title (relating to Electric.Generating Facility Permits).-:- (A) this division, 01 (D) Chapter 116, Stlbchapter I ofthis title. (13) Permitted EGF - An electric generating**faeHi~** permitted tmdcr Ch1lpter 116, Stlbehapter I ofthis title, ineltlding electing facilities. (17) .Person - Forthe purpose ofinitial issuance ofpennits under Chapter 116, SubchapterI ofthis title (relating to Electric Generating Facility Permits), and for the issuance of allowances underthis division, a person includes an individual, a partnership oftwo ormorepersons having ajoint or commoninterest, a mutual or cooperative association, and a corporation, but does not include an electric cooperative. (18 

### t4) 802 allowance ABo""ance - An authorization to emit 502 valid only for the purposes for meeting the requirements ofthis division and Chapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits). 4(19 +5) West Texas Region - All counties not contained in the East Texas Region or EI Paso region. §lO1.331. Applicability. This division applies only to the following: (1) Electric generating facilities permitted under Chapter 116, Subchapter I ofthis title, (relating to Electric Generating Facility Permits):- , and (2) Brokers A person not reqtlircd to participate in the reqtlirements ofthis division rna, open a broker aecotmt tmder this div ision for the ptlrposes ofba:nlcing and trading emissiom ailo allees. §lOl.332. General Provisions. (a) Allowances are valid only for the purposes ofmeeting the requirements ofthis division and for meeting the requirements ofChapter 116, Subchapter I ofthis title, (relating to Electric Generating Facility Permits), and cannot be used to meet or exceed the limitations ofany annual emission limitation authorized under Chapter 116, SubchapterB ofthis title (relating to New Source Review Permits). a permit or any applicable rule or law. (b) On June 1 after every control period Ma, 1 ofeach,ear, begiIming in 2004, a 5grandfathered or electing an electric generating facility (EGF) shall hold a quantity ofallowances in its compliance account that is equal to or greater than the total emissions ofthat air contaminant emitted during the prior control period. Compliance with the allowance system will begin with the control period beginning May 1, 2003. (c) Emission reductions used to satisfy the requirements ofthe Emissions Banking and Trading ofAllowances (EBTA) cannot be used to generate emission reduction credits or discrete emission reduction credits. (d) Allowances cannot be used for netting requirements to avoid the applicability offederal and state new source review (NSR) requirements. (e) Allowances cannot be used to satisfy offset requirements for new or modified sources subject to federal nonattainment NSR requirements. (t) An allowance does not constitute a security or aproperty right. (g) All allowances will be allocated, transferred, orused as whole allowances. To determine the number ofwhole allowances, the number ofallowances will be rounded down for decimals less than 0.50 and rounded up for decimals of0.50 or greater. (h) One compliance account shall be used for multiple permitted EGFs permitted under Chapter 116, Subchapter I ofthis title (relating to Electric Generating Facility Permits) located at the same 

### 6propeny and under conunon ownership or control. (i) If**emi~~iom** ofnitrogen**oxide~** or, ifapplieable,**~tllftJ::r:** dioxide, exeeed the amotmt of**allowanee~** 

### fox a given eontrol period,**allowance~** for the next control period will be redtteed 

### in an amonnt eqnal to the**enri~~iom** excecding the allow**ance~** in the compliance aeeonnL 

### §101.333. Allocation ofAllowances. Allowances will be allocated according to the requirements ofthis section. (1) Except as provided inparagraphs (2) and (3) ofthis section, allowances will be calculated for grandfathered electric generating facilities (EGF) using the following equation: 

## ER*HI A=-------- 

### 2000 Ib/

### allowance

Where: A HI =

= Number ofallowances Total heat input (million British thermal units (MMBtu)) dtlring 1997 as listed in the 1997 Emissions Scorecard from EPA's Acid Rain Program, or ifnot listed in the 1997 Emissions Scorecard, by a method approved 7ER 

## = by the executive director, consistentwith·the emission reduction requirements ofthis division. determined by sttbpaTagrapm (A) or (D) of this paTagraph. Emission rate, as defmed in subparagraphs (A)te1 - (B)fE7 ofthis paragraph;

(A) the aeid: rain database ofthe EPA, or (D) an method approved b, the exectltive director,**eor~istent** with the emission rednetion rcqtrirements ofthis div ision, ifthe infonuation is tma:v ailable 

### irom the EPA acid ram data:b33e. (A)te1 In the East Texas region, (i)fu 0.14 pound nitrogen oxides (NOx) per MMBtu; and (ii) 1.38 pounds sulfur dioxide**(SO~** per MMBtu only for coal-fired grandfathered EGFs; (B)$7 In the West Texas and El Paso Regions, 0.195 pound NOx per MMBtu; (2) For electing eleettie generating faeilities fEGFs), the amount ofallowances is equal 

### 8to emissions as listed 1997 Emissions Scorecard from EPA's Acid Rain Program, or ifnot listed in the 1997 Emissions Scorecard, by a method approved by the executive director, consistent with the emission reductionrequirements ofthis division; and in both cases the EGr's aetnal emissions in tom in 1997 and shall not exceed any ofthe following: (A) any annual emissionlimitation authorized under Chapter 116, SubchapterB ofthis title (relating to New Source Review PeIIIlits). the emission inventor, reported for ealendar ,ear 1997; 

### (D, the**allo~a:ble** emission rate in an existing permit; and (B e) an applicable state or federal requirement. (3) The commissionmay invalidate any allowances allocated to an electing EGF that authorize emissions in excess ofapplicable state or federal requirements. The eorrnnission rna, inerease or decrease the amotmt of**allo~a:nees** for 

### an, eontrolperiod in order to satisry reqnirements tmder a state implementation plan or other federal, state, or loeal air qtta:lit:Y reqttirement. (4) Ifemissions ofnitrogen oxides or, ifapplicable, sulfur dioxide, exceed the amount ofallowances for a given control period, allowances for the next control period will be reduced 

### in an amount equal to the emissions exceeding the allowances in the compliance account. (54) Allowances will be allocated: 9(A) initially, by: (i) January 1, 2000, for grandfathered EGFs; (ii) January 1,2001, for electing EGFs; and municipal corporations, electric cooperatives and.river authorities that choose to obtain apermitunder Chapter 116, Subchapter I ofthis title (relatingto Electric Generating Facility Permits) for any grandfatheredor electing EGFs previously exempted under §116.91O(d) ofthis title (relating to Applicability). (B) subsequently, by May 1 ofeach year, beginning in 2004. (C) Allowances will be allocated: b, commission order. (i) Initiallyby commission orderfor all grandfathered and electing EGFs (ii) Notwithstanding clause (iii) ofthis subparagraph, atthe beginning ofeach control period, the commission will depositthe same amount ofallowances into each grandfathered or electing EGF's compliance account. (iii) For electing EGFs, the annual deposit for any controlperiod may be adjusted to reflect new state or federal requirements. 10(D) Allowances·maybe deducted from compliance accounts following the review oftrading reports required under §101.336(b) ofthis title, (relating to Emission Monitoring, Compliance, Demonstration, and Reporting.) (65) The commission shall maintain a registry ofthe allowances in each compliance account. For each transfer, the registry shall include the price paid per allowance. The registry shall not containproprietary information. §101.334. Allowance Deductions. 

### TIansfeI. Allowances will be deducted from a grandfathered or electing electric generating facility's (EGF) compliance account for a control period based upon the following: (1) The following will have deducted from their compliance accounts allowances equal tothe number oftons ofair contaminantemitted during the control period as reported in compliance with §101.336 (relating to Emission Monitoring, Compliance Demonstration, and Reporting. (A) grandfathered EGFs; and (B) electing EGFs whose heat input for the control period is equal to orgreater than its heat inputfor 1997; (C) electing EGFs whose heat input for the control period is less than its heat 11inputfor 1997 where the reducedutilization or shutdown has been replaced by another EGF permitted under Chapter 116, SubchapterI ofthis title (relating to Electric Generating Facility Permits). (2) For electing EGFs, ifthe heatinput for the control period is less than the heat input for 1997 and whose reduced.utilization or shutdownhas not beenreplaced by anotherEGF, allowances will be deducted.from·the compliance account according to the following equation: HI1997 

## x EFcp 

# A=--------- 2000 Ibs / allowance Where: A 

## = IDI997 

## = EFcp 

## = Allowances to be subtracted from the compliance account Heat input from 1997 The emission factor for the control period interms ofIbslMMBtu,or if an emissionfactor for the controlperiod is notavailable, the most recently available emissionfactorfor thatEGF.

(3) For electing EGFs, whose heat input for the control period is less than the heat input for 1997 and the reducedutilization or shutdown has beenreplaced by another EGF notpermitted under Chapter 116, SubchapterI, allowances will be deducted from the compliance account according to the following equation: 

## (HIcp X

## EFcp) 

## + [(lll1997 - 

## HIcp) 

# * EFnew] A**=~---2"':'O-OO-I-=b":"s-/ aI-I-o-w-an-c-e~---=-**  12Where: A 

### HIcp EFcp HII997 EFnew =

=

= 

## = = Allowances to be subtracted from the compliance account Heatinputfor the control period. The emission factor for the controlperiod in terms ofIbs/MMBtu. Heat inputfrom 1997 The emissionfactor in terms of IbslMMBtu for the EGF that replaced the thennal energy from the reduced utilization or shutdown. Ifthe specific EGF that replaced the thermal energy is not identifiable, the emission factor shall be equal to the average emission factor for all EGFs in the state as listed in the 1997 Emissions Scorecard from EPA's Acid RainProgram. (a) Allowances ma, be transferred at an, time dtlIing the eontrol period. (b) Doemnentation ofafl final transfers nU1'st be reeeived b, the eommission on 01 before Jtme 30 following the control period for which the allowanees are to be tlsed. (e) 

## Om, at1'thori1:ed aeeotmt represent!tiv es ma5 transfer aflow anees. (d) Notifieation oftransfel ofallowance Intlst Oeetll within 30 da,s after the transfer ofan, allow mees to another pal . Allowanee transfels ate prohibited priol to Ma, 1, 2003.

(e) Allowmees at eleeting electric generating faeilities (ECF) that restllt flom redtleed tltilization 13or shtttdow m are ineligible for tIamfer. The amomlt ofallo a:nees eligible for ttamfer from an eleeting ESP 

### will be eaiettlated ttsing the heat inptlt fronl 1997 and the changed emission faetors 

### as**follo~s.** (1) Ifthe heat inpttt for the eont:Iol period exeeeds the heat inpttt for 1997, the**follo~ing** eqtta:tion 

### will be ttsed to ea:letllate the amottnt oftramfenable**a:llo~anees.**
ml997 

# * EF1997 - 

## IDcp 

# * EFcp 

### 2000 Ibs/allowance '+¥here.**----+IIHltm·-----+IIlee~litHiHlfiflBle*t-ffrftoH'lHiH19l999=7~.** 

### EF t'm The etnissioH fector fer 1997 in 

### tCfffiS ofpel:lft8:s perfftillioft British !hennal tmits (lbs/MMBttl). 

### IIleP---.......**-----jlf±ICleeif:t-fiHffifl~l:ltrt4f6'orF-£!:tai€e~c'*oH'ft~tFt=€e~1****-BpelerA,ie~8:~.** 

### EF**eP~--"""'-"""':':THfti€eHe~fftftlit§jss!5ti6'eftlHife!tEe*te6'rF-f,ff:e*r-taft1aee-ecee:Jft*trfEo*l-fp~c~riieed8:-fiftB-tite~fHI'ffi5i::SHO~f'-lleesS1/~~4l0MI4~Bk:itH!t:-:** (2) Ifthe heat inptlt for the eontrol period is less than the heat inptlt for 1997, the following eqtta:tion 

### ill be tlsed to ea:letllate the amottnt ofttansfcnable ailo anees.

HIl997 

# * EF1997 - HIl997 

# * EFcp 2000 lbs/allowance Where.**----+H++ltm,.-----.;~-...;I~Iee£a~t** 

### ifiH'H:flltll:l:t-t**flfr"eef.ffft~19~9R7 ---~E;PFt'm**  

### The etnissioH fector fer 1997 ift 

### tefffiS ofles/MMBtu:. ----+EO:fOF eP Tile etnissioft reeter fer the cofttrol pcrio8: in 

### teFHiS ofles/MMBtu:. (f)**Allo~anees** may be tramferred**~ithin** the same region, btlt not**bet~een** regions.

14(g) Trading to and from a broker aeeotmt must meet the trading restrietions regarding the origin ofthe**aBo~a:nees** and eligible transfers in this dhision.

§101.335. Allowance Banking and Trading. (a) ABo :mees at eleeting facilities that result f:r0111 redueed**util~ation** or shutdo n are ineligible for**ba~nkmg.** (a b) Allowances not used for compliance during a control period may be banked for use in subsequent controlperiodsyears. Allowances may only be used for the control period for which they were allocated or subsequent controlperiods, and may only be used within the same region where they were originally allocated. (b) Allowances may be traded at any time during the control period. (1) Only authorized account representatives may trade allowances. (2) Notification oftrades must occur within 30 days afterthe trade. (c) Allowance trades are prohibited priorto May 1,2003. (d) Traded allowances held in compliance accountsmust have originated from EGFs in the 15same region. (e) AIlowancesmaybe held only in compliance accounts for use by EGFs located in the region in which the allowances were originally allocated or in broker accounts. 

### §lOl.336. Emission Monitoring, Compliance Demonstration, and Reporting. (a) Emission monitoring and reporting shall be conducted in accordance with §116.914 ofthis title, (relating to Emissions Monitoring and Reporting Requirements). (b) For each control period, grandfathered or electing electric generating facilities (EGFs), must submit a report to the commission by June 30 ofeach year detailing the following: (1) The amount ofemissions ofeach allocated air contaminant during the preceding control period. This ICPOItIrlttStbe sabmitted b, Jt:me 1 ofeaeh ,cal. Emission allo a:nees eqaaling the totai enmsiom in be dedtteted ifonl the ESP's eomplianee a-eeotmt. (2) A summary ofall final trades for thepreceding control period. 

### §lO1.337. El Paso Region. (a) A 7'm grandfathered or electing electric generating facility (EGF) in the El Paso Region may meet the emissions allowances by using credits from emissions reductions achieved in the City ofJuarez, 16United States ofMexico andfrom EGFs located in Sunland Park, NM. Emission reductions under this section must meet the following criteria. (1) The emission reduction mustbe: (A) enforceable by the commission; (B) permanent, meaning that the emission reduction is unchanging for the remaining life ofthe source; (C) quantifiable, so that the emission reduction can be measured or estimated with confidence using replicable techniques; (D) surplus, such that the emission reduction is not otherwise required ofa facility by a state or federal law, regulation or agreed order, and; (E) a real reduction in which actual emissions are reduced. (2) The emission reduction mustbe reviewed and approved by the executive director prior to converting the credits into allowances under this program. (b) Grandfathered and electing EGFs in the El Paso Region are exempt from the requirements of this division ifeither EPA or the commission determines that reductions ofnitrogen oxide in the El Paso 17Region that would otherwise be required under this division would result in an increased ambient ozone level in EI Paso County.

18SUBCHAPTER A : DEFINITIONS 

### §1l6.18 §116.18. Electric Generating Facility Permits DefInitions. The following words and tenns, when used in Subchapter I ofthis chapter (relating to Electric Generating Facility Pennits) shall have the following meanings, unless the context clearly indicates otherwise. (1) 

### Allowance - As defined in §101.330(1) ofthis title (relating to Definitions). The attthoriza:tion to emit one ton ofnitrogen oxide (NO,) eF 

### see EiiexiEie**(SO~)** EitlFiflg B: eeffiFol fleFieEi. (2) 

### Capacity factor - Either: (A) the ratio ofan electric generating facility's (EGF) actual annual electric output (expressed in megawatt-hours) to the EGF's nameplate capacity times 8,760 hours; or (B) the ratio ofan EGF's annual heat input (in millions ofBritish thermal units (MMBtu» to the EGF's maximum design heat input (in MMBtu per hour) times 8,760 hours. (3) 

### Coal- As defmedin §101.330(6) ofthis title (relating to Definitions). 

### All solid fuels classified as anthracite, bittmlmotts, stlbbitmninotls. or lignite b, the Ameriean Soeiety for Testing and Materials Designation ASTM D388 92 "Stmdard Classifieation ofCoals b, Rank" (as ineorpoIated b, 19refelenee in Tide 40 Code ofPederai Regttlations, §72.13 (effective Jttne 25, 1999)). (4) Coal-fired - As defined in §101.330(7) ofthis title (relatingto Definitions). (4) Combined pelmit - A permit rimt consolidates the existing new SOtlree revie\'ti attthorixAriOIlS 'With the leqtliIements ofan EGP pennit. 

### (5) Compliance account - As defmed in §101.330(8) ofthis title (relating to DefInitions). The aCCOtlnt fOI 

### an EGP 01 nltlltiple EGPs in which allowanees aIe held:. (6) 

### Control period - As defined in §lO1.330(9) oithis title (relating to DefInitions). The 12 month peliod beginning Ma, 1 ofeach ,ear and ending AprH30 ofthe folIowing,eal. Contr01 periods begin 

### Ma, 1,2003. (7) 

### Electricgeneratingfacility (EGF) - As defined in §101.330(11) of

### this title (relating to Definitions). 

### (8 7) Electing electric generating facility (EGIi1- 

### As defined in §101.330(12) oftbis title (relatingto Definitions). An EGP pelmitted: tmdel Chapter 116, Stlbehapter D ofthis tide (relating to New Somee Review Permits)**~hieh** is not stlbject to the reqtliremeItts ofTexao; Utiiities Code, §39.264 and: elects to eompl,**~ith** ClmpteI 116, Stlbehapter I ofthis title (Ielming to Electric Generating 

### Faeiliry Pelmits). 20(9 a) Grandfathered electric 

### Eleade generating facility

### tEGFt - As defined in §101.330(l4) ofthis title (relating to Definitions). A faeilit, that genelates electrie energ, for eompensation and is**o~ned** or opeta:ted b, a person itl this state, inelttding a nmnieipal eorporation, eleetric eooperative, or river authorit) . An

## Ear does not include a faeilit) that generates eleetrie energ, pritnaril) fOI mternaluse but that during 1997 sold, to a utilit)**po~er** distribution s,stem, less than one-thitd ofits potential eleettiea:l output eapaeit). (10 9) Nameplate Capacity - The maximum electrical output (expressed in megawatts) that an EGF can sustain over a specifiedperiod oftime when not restricted by seasonal or other deratings. (11 te) Peaking unit - An EGF that has: (A) An average capacity factor ofno more than 10% during the pastthree calendaryears; and (B) A capacity factor ofno more than 20% in each ofthose calendar years. (12) Person - As defined in §101.330(17) ofthis title (relating to Definitions).

21SUBCHAPTER I : ELECTRIC GENERATING FACILITY PERMITS §§116.910-116.916, 116.920-116.922, 116.930, 116.931 §116.910. Applicability. (a) The owner or operator ofagrandfathered electric generating facility (EGF) shall apply for a pennitto operate that facility under this subchapter. (b) Owners or operators ofelecting Eleeting EGFs opting to obtain allowances under Chapter 101, SubchapterH, Division2 ofthis title (relating to Emissions Banking and Trading ofAllowances), shall submit a request to alter any related apelnlittmder this stlbehapter shall sttbmit a permit applieation to eonsolidate existing New Source Review (NSR) pennits attthorizations atthe time of application for apennitunder subsection (a) ofthis section. Alterations mustbe consistent with the requirements of 116.116(c) ofthis title (relating to Changes to Facilities). with a permit to atttholile nitrogen oxide (NO,) 

### emissiens B:nE1, ifB:J:lJ:llieaele, fftllfHf eimdee**(SO~)** 

### eftlissiens Hlld:efthis**s'l:ieehB:J:l~ef.** (c) The owner, orthe operator who is authorized to act for the owner, ofa grandfathered or electing an EGF is responsible for complying withthis subchapter. (d) A municipal corporation, electric cooperative, or river authority may exclude any EGF with a nameplate capacity of25 megawatts or less from this subchapter. The municipal corporation, electric cooperative, or river authority must notify the commissionby January 1,2000, ofits intent to exclude those EGFs. Ifthe municipal corporation, electric cooperative orriver authority reevaluates its intent to 22exclude EGFs, it may choose to permit any ofthose EGFs consistent with the requirements ofthis subchapter. (e) Emissions ofNOx shall be permitted under this subchapter for any grandfathered or electing EGF. Emissions ofS02 andparticulatematter shall be permitted under this subchapter only for grandfathered or electing coal-fired EGFs. Emissions ofother air contaminants from grandfathered EGFs may be permitted under this subchapterprovided the grandfathered EGFs facilities meet the requirements ofChapter 116, Subchapter H ofthis title (relating to Voluntary Emission Reduction Permits). (f) Owners or operators ofgrandfathered facilities as defined in §1l6.10 ofthis title (relating to General Definitions) at sites with grandfathered or electing EGFs subject to this subchapter may consolidate any permit issuedunder Chapter 116, SubchapterH ofthis title (relating to Voluntary EmissionReduction Permits) with ineltloe those gra:nd:fathereo facilities in a permit issued under this subchapter., prOvided the gIandfatheled facilities meet the IcqttiICments ofChapter 116, SttbehapteI II ofthis titie. (g) An EGF that generates electric energy primarily for internal use but that during 

### 1997 sold, to a utility power distribution system, less than one-third ofits potential electrical output capacity, or less than 

### 219,000 megawatt-hours, is not subject to the requirements ofthis Chapter.

23

### §1l6.911. Electric Generating Facility PermitApplication. (a) Owners or operators ofgrandfathered or electing electric generating facilities (EGF) shall submitan applicationto authorize nitrogen oxide (NOx) emissions and, ifapplicable, sulfurdioxide (SO:z) andparticulate.maner (PM) emissions. Al1)' application for 311 eleetrie generating facilit, perntit (EGR') The applicationmust include a completed Form PI-I-U, General Application. The Form PI-I

### V mustbe signedby an authorized representative ofthe applicant. The Form PI-I-U specifies additional support information which must be provided before the application is deemed complete. In orderto be granted an electric generating facility permit (EGFP), the owner or operator ofthe electric generating faeilitj (ESP) shall submit information to the commission which demonstrates that all ofthe following are met: (1) Measurement ofemissions and performance demonstration. Applicants must proposemonitoring and reporting for the measurement Meastllement ofemissions and demonstration of performance shaU be eondttcted consistent with §1l6.9I4 ofthis title (relating to Emissions Monitoring and Reporting Requirements). (2) Control method. New control methods proposed in initial applications must comply withtherequirements in §116.617(1),(3),(4)(A) and (B) and §1l6.617(5) - (9) ofthis title (relating to Standard Permitfor PollutionControl Projects). EGPs shall tlse control teel'bxolog, stlffieient to enstlre tmt aemal emissions from the faeilitj do not exeeed the a:nlOtlnt of**allo~a:nees** in an ESP's eompliance aeeot!nt 

### 24(3) Nonatt1imnent re.ie\*;. Ifthe EOF is loeated in a nonatt1imnent area, the**o~ner** or operator ofthe EOF shall eomplj**~ith** all applieable reqtIirements tinder Chapter 116, StIbehapter B, Division 5 ofth1s title (relating to Nonattairrment**Re.ie~).** (4) Prevention ofSignifieant Deterioration (PSD) Ie.**ie~.** Ifthe EOF is loeated in an attaimnent area, the**o~ner** or operator ofthe EOF shaH eomplj**~ith** all applieable reqtIirements tinder Chapter 116, Sttbehapter B, Division 6 ofthis title (relating to Pre.ention ofSignifieant Deterioration**Revie~).** (5) Federal standa.1ds of**re.ie~** for eomtrtIeted or reeomtttleted major sotIrccs of ha%a1"dotls air polltltants. Ifthe EOF is an affected somee (as defined in §116.15(l) ofthis title (relating to Seetion 112(g) Defmitions», the affeeted somee shall eomplj ith all applieable reqtIirements tinder Chapter 116, Sttbeh-a:pter C ofthis title (relating to Ha%a.1dotIS Air PolltItants. Regtllatiom Oo.erning Constrtteted or Reeomtttleted Major SOtIrees (FCM, §112(g), 40 CFR Part 63». (3 6) Air dispersion modeling or ambient monitoring for pollution control projects. tmder §116.915(b)(2) ofthis title (relating to Emission Control Changes). Computerized air dispersion modeling and/or ambient monitoring may be required by the commission's Air**Ne~** SotIrce**Revie~** Permits Division Seetion where there is an increase in emissions to determine the air quality impacts from controls proposed under paragraph (2) ofthis section. the EOF. (4 =f) Opacity Limitations for coal-fired grandfathered and electing EGFs. The coalfired grandfatheredand electing EGFs must meet the opacity limitations of §111.111 ofthis title 25(relating to Requirements for Specified Sources). (b) Application infonnation for electing EGFs. (1) 

### In additionto the informationrequired in this section, EGFPapplications regarding electing EGFs shall containthe following information: (A) Documentation ofthe emissions from the 1997 Emissions Scorecard from the EPA AcidRainProgram, orifthat informationis not available, the actual emissions from that electing EGF for calendaryear 

### 1997. (B) Documentation offuel consumption, .fuel heating values, .and.heat input in MMBtu for calendaryear 

### 1997. (C) Identification ofthe electing EGFs to be included. (2) Emissions ofair contaminantsfrom electing EGFs otherthan NOx, and if applicable, S02 andPM, already authorizedby Chapter 116, will not be authorizedunderthis subchapter. (c) 

### tb1 The owner or operator ofa grandfathered or electing EGF must submit an application for a permitunderthis subchapter Applieations mtlstbe stlbmitted on or before September 1, 2000. 

### 26(d) te} All applications for an EGFP shall be submitted under the seal ofa Texas licensed professional engineer ifrequired by in eomplianee ith §116.11O(e) ofthis title (relating to Applicability). 

### §116.912. Eleetric Genelatiftg Facitit) PermitApplication for Electing Electric Generating 

### Facilities. (a) Electing Electric Oenerating FaciHties (EOP) seelcing to eonsolidate existing**Ne~** Sotlrce Re•ie (NSR) attthorttatiom ith a pennit tmder**th~** stlbehaptel shaH sttbmit an applieation to a:tJ:tholi'Le nitrogen oxide (NOll:) 

### eHl:issisflS fl:ftt:i, 

### ifllf3plie&l31e, selfitu aisxiae (S00 eHl:issisftS. Tlie application shall meet the reqtliIements of §1l6.911 ofthis title (Ielating to EleetIic Generating Faeiliry Permit Applieation) as ell as the folIo ing. (1) The pelmit applieation shall eontain the foHowing information for the pttrposes fur managing aIlo anees. (A) Doemnentation ofthe aettlal emissions ofthat EOF fOi ealendar year 1997. (D) Doetm1entation offuel eomtJ:1'nl'tion, fuel heating •alttes, and heat inptlt in MMDttl ful calendar ,eal 1997. (2) The pelmit application shall identify**~hieh** EGFs ale to be ineltlded. 27(3) Conditions in the eleeting Eap's NSR pelmit**neeess~** to enstlle eomplianee**~ith** state or federa:llaw will be inelttded in the eombined pennit. (4) The eombined pennit shall ineltlde the eonditions ofthe NSR :mthorization as ell as the eonditions ofthe Earp. (5) Onee an EaF has opted OtiC, the EaF Imry not panieipate in the emissions banking and trading of**allo~anees** at a:I'lj' fuftlre date. (6) The**o~nel** 01 operatol shall reqtlest an alteration to the eombined pellnit to remo.e the eonditions peItaining to the EGrp, and lestore an) eonditions that existed plior to the eonsolidation. 

### fb7 An electing electric generating facility (EGF) may opt out ofthe requirements ofthis subchapterunderthe following conditions: (1) The electing EGF must notify the commission ofits intent to opt outpriorto the beginning ofthe next control period. The decision to opt out ofthe requirements ofthis subchapter will become effective atthe beginning ofthe control period that follows notificationto the commission. (2) The electing EGF may not opt out during a control period. (3) .Once the electing EGFhas opted out, all ofthe following apply: (A) All allowances for the electing EGF will be voided by the commission and 28may not be banked for subsequent use. 

### (BX41 No allowances will be allocated for subsequent control periods. (C)t51 The electing Once an ECF 1m opted Otlt, the EGF may not participate in the emissions banking and trading ofallowances at any future date. (D)

### f6J The owner or operator shall request an alteration to the existing New Source Review eombined permitto remove the conditions referencing pertaining to the electric generating facility permit. E6FP and restore an, eonditions that existed prior to the eonsolidation.



### §116.913. General 

### and Special Conditions. (a) The following general conditions shall be applicable to every electric generating facility permit (EGFP) unless otherwise specified inthe permit. (1) A permit issued under this subchapter authorizes the following. (A) NOx emissions from all grandfathered and electing electric generating facilities (EGF). (B) S02 emissions from coal-fired grandfathered and electing EGFs. 

### 29(C) particulate matterthrough opacity limitations as specified in 

### §1l1.111 of this title (relating to.Requiremems for Specified Sources) for coal-fired grandfathered and electing EGFs. Emissions ofother air eontanrin:rnt:s from EOPs meeting the reqttirements ofChapter 116, StlbehapteI II ofthis title (relating to VOltlI1:ta:I) Emission Redtletion PeIIllits). (2) An EGFP 

### may permit emissions ofall other air contaminants from grandfathered EGFs provided the requirements ofChapter 

### 116, SubchapterH ofthis title (relating to Voluntary Emissions ReductionPermits) are met. (3) Grandfathered facilities as defined in 

### §1l6.10 ofthis title (relating to General Definitions) at sites with grandfathered or electing EGFs andpermitted under Chapter 

### 116, Subchapter H ofthis title may be consolidated with a permitissued under this subchapter. (2)**O~ners** 01 operators ofgr:md:fMhered faeilities rna) eonsolidate a peIIllit isstled tmckr the requirements ofChapter 116, Stlbehapter II ofthis title. (4 3) The grandfathered or electing EGF must comply with Chapter 

### 101, Subchapter H, Division 2 ofthis title (relating to Emissions Banking and Trading ofAllowances) including the requirement to maintain allowances in a compliance account. Allowances may be transferred in accordance with 

### §101.335 ofthis title (relating to Allowance Banking). (5 4) Mass emission monitoring and reporting shall be conducted in accordance with 

### 30§116.914 ofthis title (relating to Emissions Monitoring and Reporting Requirements). (6 5) On June 1 after every control period May 1 ofeach ,eM aftel Ma, 1,2003, an a grandfathered orelecting EGF subject to this subchapter shall hold a quantity ofallowances for emissions ofNOx and, where applicable, S02' in its compliance account that is equal to or greater than the total emissions ofthat air contaminant emitted during the prior control period. (7 6) Owners or operators shall submit

# '* a report Reports ofthe amount ofemissions ofeach allocated air contaminant atmtIa:l aett:r;rl emissions for NO" lffid, where B:f3f3lieeele,**SO~,** from dttring the prior control period shall be submitted to the Air New Sotlree Review Permits Division Section consistent with the requirements of§101.336(b). by June 1 ofeach ,eM. (8 =;) Coal-fired grandfathered and electing EGFs must meet the opacity limitations of §111.111 ofthis title (relating to Requirements for Specified Sources).

(9) New Some, Perfolmanee Sta:lld.<nds (NSPS). The emissions nom each affected facility as defmed in 40 Code ofPedelal Regulations (CPR), Part 60 wiH meet at least the leqtlilements ofany applicable NSPS as listed tmdel Title 40 CPR Palt 60, promttlgated by the EP,* tmdel atlthorit) glanted under PCM, §111, as amended. 31(10) National Enrission Standtuds £01 Hazardous Ail Polluf:at'rtS (NESHAFS). The emissions £101'11 eaeh faeiiir, as defined in 

### 40 CPR Fait 

### 61 will meet at least the leqtlirements ofa11)' applieable NESHAPS, as listed tmder 

### 40 CPR Fait 

### 61, plonmlgated b, EPA tmder atIthoritj glanted tmder the reM, §1l2, as amended. (11) NESIIAPS fOI SOtlree eategories. The emissions flom eaeh affeeted faeiiir, shall meet at least the 1'eqtIiremems of

### an, applieable nmxin.'l:tJ:m aehie 9able control teelmolog, stmdald as listed tmeier 

### 40 CPR Part 63, p1'omtllgated b, EPA tIndel rCM, §112 01 as listed tIndel Chapter 113, Subehapter C ofthis tide (relating to**~(ational** Emissions Standards tOI Hazardous Ail Polltttants for Somee Categories (reM §112, 

### 40 CrR Fart 63». (b) Special conditions may be included in the EGFP. 

### §116.914. Emissions Monitoring and Reporting Requirements. (a) Grandfathered or electing electric generating facilities (EGF) subjectto 40 Code ofFederal Regulations Part 75, effective June 25, 1999 (40 CFR Part75) shall do the following: (1) For grandfathered or electing EGFs subjectto the .requirements of40 CFR Part 75, relatingto Continuous Emission Monitoring, all monitoring systems must comply withtheinitial performance testing andperiodic calibration, accuracy testing, and qualityassurance/qualitycontrol testing specified in40 CPRPart 75. 

### 32(2) For grandfathered and electing EGFs subjectto 

### 40 CFR Part 75, a certified monitoring systemunder

### 40 CFR Part 75 shall be used to demonstrate compliance with this subchapter. (A) Ifthe grandfathered or electing EGF has a flow monitor certified under

### 40 CPRPart75, nitrogen oxide (NOx ) emissions inpounds perhour shall be determined using a NOx continuous emissionmonitoring system (CEMS) and the flow monitor. (B) Ifthe grandfathered or electing EGF does not have a certified flow monitor, but does have a NOxCEMS, NOxemissions inpounds perhour shall be determined by multiplying pounds ofNOxper millionBritishthennal units (lbsIMMBtu) times heat input inMMBtu per hour (MMBtu/hr). The procedures in 

### 40 CPRPart 75, Appendix F, concerning Conversion Procedures, Section 3, shall beused to convertthe measured concentrationofNOxand a diluent (carbon dioxide (C02) or oxygen**(O~)** into an emission rate in IbslMMBtu. Theprocedures in

### 40 CPR Part 75, Appendix F, Section5, shall be used to determine the hourly heat input in MMBtu/hr. These two values (lbslMMBtu and MMBtuIhr) shall be multiplied together to determine NOxemissions in lbslhr. (C) The procedures in

### 40 CPR Part 75, Appendix E, relating to Optional NOx Emissions EstimationProtocol for Gas-fired Peaking Units and Oil-fired Peaking Units, may be used to estimate the NOxemissionrate. (b) Grandfathered or electing EGFs not subject to 

### 40 CPRPart 75 shall comply with: (1) the initial performancetesting andperiodic calibration, accuracy testing, and quality 33assurance/quality control testing specified 

### in 40 CPRPart 75 or (2) those same requirements in40 CPR Part 60 relating to New Source Performance Standards (40 CPR Part 60). Actual emissions must be determinedbymultiplying the CEMs data by an adjustmentfactor of1.1 for.all grandfathered and electing EGFs not using a 40 CFR Part 75 monitoring system ifthe CEMs exceeds 10 

### % relative accuracy. (3) 

### In lieu ofthe monitoring required by subsection (b)(1) or (2) ofthis section. the electric generating facilitypermit (EGFP) may authorize alternative monitoring to calculate mass emissions under 

### this section. The applicantmust submitthe following for review ofan alternative monitoringproposal: (A) a description ofthe monitoring approach to beused; (B) a description ofthe major components ofthe monitoring system, including the manufacturer, serialnumber ofthe component, the measurement span ofthe component, and documentationto demonstrate thatthe measurement span ofeach component is appropriate to measure all ofthe expectedvalues; (C) an estimate ofthe accuracy ofthe system and documentation to demonstrate how the estimate ofaccuracy was determined; (D) a description ofthe tests that 

### will be used for initial certification, initial 34quality assurance, periodic quality assurance, and relative accuracy; and (E) additional infonnationmay be requested before approving a request for alternative monitoring. Alternative monitoring shall be incorporated into the EGFP. (4) Emissions.inpounds perhour shall be determined using the NO. CEMS and one of the following methods: (A) The owner or operator may elect to comply with subsection (a)(2)(A) or (B). (B) The grandfathered or electing EGF may use a flow monitor certifiedunder 40 CFR Part 60 to determine emissions inpounds perhour. (C) NO. emissions inpounds perhour may be determined by multiplying the IbsfMMBtu times the heat input in MMBtuJhr. The procedures in 

### 40 CPR Part 

### 60, Appendix A, Method 19 shall be usedto convert the measured concentration ofNO. and a diluent (C02 or 00 into emission rates in IbsIMMBtu. The procedures in40 CFR Part 75, Section 5, Appendix F shall be used to detennine the hourly heat input inMMBtuJhr. These two values (lbsIMMBtu and MMBtu/hr) shall be multiplied together to determine NO. emissions in lbslhr. (5) For grandfathered and electing EGFs with a heat input ofless than 100 MMBtu/hr and forpeaking units emissions inpounds perhour may be determined using the procedures in 35Appendix E of40 CPR Part 75 to estimatethe NOx emission rate. (c) The following requirements-.apply to all grandfathered and electing EGFs: (1) During aperiod when valid data is notbeing recorded by monitoring devices approved for use to demonstrate compliance with this subchapter, missing or invalid data shall be replaced with representative default data in accordance withthe provisions of40 CFR Part 75, Subpart D, relating to Missing Data Substitution Procedures. (2) Data collected from monitoring ofgrandfathered and electing EGFs shall be used to calculate the actual emissions overa control period. The information inthis report shall be submittedby June 30 ofeach year and may be submitted withthe reportrequired under §101.336(b) ofthis title. At a minimum, the report shall containthe following·information: (A) A description ofthe monitoring protocol; (B) A completedForm AR-l, Emissions Monitoring DataForm; (C) Other information as necessary to validate the actual emissions during the prior control period, including but not limited to, periodic calibration results and maintenance logs. (a) The ESF shall eOinpl)'**~ith** the**follo~ing ieqttireine~.**  (1) FOI ESF's sttbjeet to the reqttiiements of40 Code ofFederal Regttlations (CPR:) Part 3675 (effective Jtme 25, 1999), relating to ContimJ:OtlS Emission Monitoring, all monitoring s,sterm mtlst

(2) 

### Dmin:g a period**~hen** valid data is notbeing reeorded b, monitoring devices

(b) ror Ears stlbjeet to 40 CPR Part 75, a certified monitoring s,stem tmder 40 CrR Part 75 shail be tlSed to demonstrate compliance ith this stlbehapter.

(2) {[the Ear does not ha.e 

### a: eertified**flo~** monitor, btlt does have a 

### NOx GEMS, Ne x 

### emissians iH f'a1:lfias f'er hatH' shall Be aeteffflffiea B)' ffil:llfif'lying 

### f'attHas afNOx 

### f'ef milHaH BritiSH thermal tlnits (lbs/MMDm) timcs heat inptlt in MMDmper hOtlr (MMDttll%). Procedtlres fotlI1d in 40 erR Part 75, Appendix r, concerning Comersion Proeedtlres, Section 3, shall be tlSed to eon.ert thc 37**me~ured:** eoncentration ofNOxftftd 8: dHtteftt (ea:rseH die*ide**(CO~)** er e*ygeH (00) iHte 1m emissieH rate in**lbs/~fldBm.** ProeedtlIes found ft140 CPR Part 75, Appendix F, Seetion 5, shaH be used: to deteImme the homl, heat .tin MMBttI.1h1. These**t~o** .aittes (lbsfMMDm and 'l'tfMDtttflrr, shafl be mttltipiied togetheI to detenl'line NOx emissieftS in lBs/bf. (3, The pIoeedures in 40 CPRPart 75, Appendix E, relating to Optional NOx Emissions EstimationProtoeol for Cas-fired Peaicing Units and Oil fired Peaking Units, ma, be used to esti1m:te the NOx emissieH rMe. (e, For EGFs not mbjeet to 40 CPR Part 75, a eertified monitoIing s,stem tmder 40 CPR §60.13, SubpartA, Appendix B Performanee Speeifications 2 and 3, and Appendix F, §5.1 or 40 CFR Part 75 shall be used to demonstrate eomplianee ith this stlbehapter. For aU CEMS exeeeding 10% reiativ e aeemaey, aetual emissions mtlst be deteImmed by mttitipl,ing the CEMS data by 1. 1.



### (AJ The owneI or operator may eleet to eomply**~ith** stlbseetion (b,(1, or (2) of this seetion. $) The ECr 

### :rmy use a flo monitor eertified tmder 40 CPR FaIt 60 to detenmne emissions in**po~** per hour. 38**---------+i(ep)H~oJ.i(OAx** 

### effiissieftS iH peH:Has per fleer ffiaj' 

### ee aetefHiiftea ey ffielafllying tfie**Ib~/MMBtl1 ti1ne~**  the heat inptlt in MMBm/hr.**PIoeedtlre~** fotlnd in 40 eFR Part 60, Appendix A, Method 19**~hail** be tlsed to eonvert the mC33tued eoneentration ofNOx a:H6 ft 

### ail'tieHt**(Cnf~tt-ffite em~sion**  rates in Ibs/MMBttt.**Proeedme~** fottnd in 40 CPR Part 75, Section 5, Appendix F**~h.aU** be tlsed to determine the hotlrl, heat inptlt in MMBmfhr. These two**vaitle~ (lb~/MMBtt1**  and: MMBtttlh!) shail be mttltiplied togetheI to determine NOx 

### eHlissieftS i:B: 

### leslfrr. (2) FOI**EOF~** \'lith a heat input of**le~~** than 100 MMBttt/hr and for peaiting tmi:ts emissions in potmds per hom ma, be determined ming the**proeedttre~** in Appendix E of40 CFR Part 75 to estimate the NOx 

### eHlissieH fftte. (d) 

### In lietl ofthe monitoring reqtlired b,**stlb~eetion** (e) ofthis seetion, the EOrr**atlthoI~e** aiternative monitoring to ealettlate**mas~ emis~iom**  tmder**th1~ ~eetion.**  The permit applieant mtlst sttbInit the folIowing fOI re \1ie\'l ofan aitemati\1e monitoIing**propo~al.** (1) a**de~eIiption** ofthe monitoring appIoach to be tlsed, (2) a descIiption ofthe majoI eomponents ofthe monitoIing s,stem, i:neltlding the manufaetttIer,**~eIiai** nmnber ofthe eomponent, the rneasurernent**~pan** ofthe eomponent, and doemnentation to demonstrate that the**mea~tlrement** span ofeaeh eomponent**i~** appropriate to meastlre all ofthe expeeted IJaltles, (3) an**e~timate** ofthe aeetllaC, ofthe**~,stem** and doemnentation to demonstrate ho\'l the 

### 39estimate ofaeetlrae, \'Iias detelIllmed,**C4~** a deseription ofthe tests that VIIill be tlsed fol initiai**eertifie~ion,** initial qttalit) assnra:nee, peliodie qttaiity assttranee, and Idati.e aeetlraC), and**(5~** additional infonna:tion Ina:) be reqtlested before appro.ing a reqtlest fOI aiternati.e monitoling. Altelnative monitoring shail be meofl'olated into the EaF 1'emrit.**(e~ D~**  eolleeted flom monitoling ofEaPs shall be tlsed to ealetllate the aettlal eUl1ssions ovel a eontrol1'eriod. FOI each eontrolperiod, EaFs sttbjeet to this stlbehaptel mttst sttbmit a lepOrt to the eommission detailing the atnOtlnt ofemissions ofeaeh alloeated air eontaminant dttring the preeeding eomrolpeIiod. 'Ftm leport mttst be stlbmitted bj Jmte 1 ofeaeh year. At a m:inimtml, the leport shall eonta:in the foHo\'liing infolmation.**(l~** A deseliption ofthe monitoring 1'lotoeol, (2) A eompleted FOlm AR-l, Emissions Monitoling Data FOlm, (3) Othel infonnatioll as needed.



### 40§1l6.915. Emission Control Changes. (a)**Emi~sion** eontrol ehanges restllting from pollmion eontrol projeets designed to redtlee etnissiom ofnitrogen oxides (NO,) ar, ifa:pplisa:Ble, SHIm! tiiaxitie (SO:!), Me B:Htba!tzeti for EGFs prov ided that the folIo ing conditiom are met. (1) An, emission increase ofan air eontaminant mtlstoectlr solely as a restllt ofthe installation ofeontI01 eqtlipment or implementation ofa control techniqtle lmthorized tlnaet the permit isStled tmder this scrbehapter. (2) Ifthe projeet,**~ith:etlt** consideration ofany othel ineteases or decreases not related to the project,**~iH** resttlt in a signifieant net increase in emissiom ofany eriteriapolltltant, the applieant shall stlbmit information Stlffieient to demomtrate that the increase ill meet the eonditions of subparagraph (A) ofthis paragraph. (A) The net enrission inerease may not. (i) comidering the emission redtletiom that**~iH** testllt ftom the ptojeet, eatlSe or eontribtrte to a v iolation of

### an, natiorlal ambient ail qtlality standard (NAAQS), (ii) Clmse or eontribtlte to a 9iolation ofanj Pre9emion ofSignificant Detetioration (PSD) increment, or 41"lOlatlon ofa PSD .. Ylstbility limitat' Ion. e:ttls, or eont1"'b Ittte to a' . (iii) (D) For the a . . p"'p0ses 

### oU .

fuSS""" inae ""'" scetion ". . ases, restrl!ing solely ftoJr. ' 

## stg- net inacase" eonttol tec:lmi ' the mtaH3tion of means lbose qtteS, that ",e eqmI '" eontto! equipmeut 01 . orgre>ter lb n:uplementati 

### lItl. 011 of ( . (i) the

### major . ,eIalmg '" N medri'iealioD IF h onattaim 

# !!" old

## r nent Reyiew D .. 1SIed in §116 . clcsigDlrted efimlIom), 'fable I for . .12 ofthat title



### .. _ orfo ' lItleo_fo, . , r preeutso" '" d winch !he 

### are . iCSO 

### <rir eoll!ar . 

### a " • llm1lntS, or (ii) 

### sigmfiC3:! 1993) (relaIiDg to !'re.C!llion' 01" de£ned in4S CFR §52 21 !he ",ea

### is d . ofSll:nifielItltDeterie,ltlioftofAir . (b)(23) (effectiye 1m, 2(J estgnated at . Q!!oIil-) f ' lainIIiClll 

### or

_ '6 ,-

# ~i air 

### .-ill " able 

### or fo ,.",. for which , r preemsors for . aneo_. (C) 

### 'Netting is not re . be made for the q=ed 

### when deter" proposedprojeet 

### 'ft . 

# == whah.. Ibis 

### d 

# il1tIS' be irteI-d d . . lO me""",es lItld cIeetcas . =mlration I!liISt 

### • e to 

### es meo .. .., fillere nettiI,o aI ""'- 

### resttltino f 

### • e etrlarion if!he) • "1'OI!l!he

### projeet a1e determined to b e other ise ereditable (b) Permit holders Il'lttSt b . . . S'tl D'llt a Pi-lUR . e....."'" 

### eontlol 

## r reg..

# "",ionfor .. 

### ellItlge """ b . 

### enmsmneo 1 

### e ttoplemerdCd . 

### mo chong" 

### II

42(e) The emission eontrol change w ill not be attthori1:ed b) the exectltive direetor ifthere are signifieanthealth**effec~** concerning the increase in emissions ofan) air contaminant other than those for which a NAAQS has been established tlntil those concerm are addressed b) the registrant to the satisfaction ofthe exeetlti Iie director. (d) Increased emissiom of

## any an eontaminant, ineltlding NOx Of, if

### ftPf3lieeele,**SO~,** 

### offief

### t:afffi increases attthorizcd tlnder stlbseetion (a) ofthis seetion mt1st obtain precomtrtletion attthorization tmder Chapter 116, Stlbehapter D ofthis title (relating to t.ew Sotlree RCliiew**Pcrnti~)** ifnonattaimnent, PSD, or FCAA, §112(g), relating to 'Modificatiom, are applicable. 

### §116.916. Permits for GrandfatheredandElectingElectric Generating Facilities in 

### EI Paso County. Grandfathered and electing electric Eleetric generating facilities in EI Paso County are not required to meet nitrogen oxide allowance requirements ifthe commission or EPA determines that reductions innitrogen oxide emissions in the EI Paso Region otherwise required by this subchapter would result in increased ambient ozone levels in EI Paso County. 

### §116.920. Public Participationfor Initial Issuance. (a) An applicant for an electric generating facility permit (EGFP) shall publish notice ofintent to obtain the permit in accordance with Chapter 39 ofthis title (relating to Public Notice). 43(b) Public notice for an EGFP may be combined with the public notice for a voluntary emission reduction permit, under Chapter 116, SubchapterH ofthis title (relating to Voluntary Emission Reduction Permits.) (c) Electing EGrs Me mbjeet to pttblic notice 

### for emissiom ofnitrogen oxides (NO,) !Hie, if applicable, stllfm dioxide (SOt1. (c) d) Any person who may be affected by emissions from a an grandfatheredor electing EGF may requestthe commission to hold a notice and comment hearing on the EGFP application. The public commentperiod shall end 30 days after the publication ofNotice ofReceipt ofApplication and Intent to Obtain Permit under §39.418 ofthis title (relating to Notice ofReceipt ofApplication and Intent to Obtain Permit). Any hearing request must be made in writing during the 30-day public comment period. (d e) Any hearing regarding initial issuance ofan EGFP shall be conductedunder the procedures in §116.921 ofthis subchapter (relating to Notice and Comment Hearings for Initial Issuance) and not under the APA. (e f) Responses to public comments and the notice ofthe commission's decision to issue or deny an EGFP shall be conducted under the procedures in §116.922 ofthis title (relating to Notice of Final Action). (f g) A person affected by a decision ofthe commission to issue or deny an EGFP may move 44for rehearing under §50.119 ofthis title (relating to Notice ofCommission Action, Motion for Rehearing) and is entitled to seekjudicial review under TCAA, §382.032 (relating to Appeal of Commission Action). 

### §116.921. Notice and Comment Hearings for InitiaI 

### Issuance. (a) The notice and commenthearing requirements apply only to the initial issuance ofa electric generating facility permit (EGFP). (b) The commission shall decide whether to hold a hearing. The commission is not required to hold a hearing ifthe basis ofthe request by a person who may be affected by emissions from a an grandfathered or electing electric generating facility (EGF) is detennined to be unreasonable. Ifa hearing is requested by a person who may be affected by emissions from a an grandfathered or electing EGF, and that request is reasonable, the commission shall hold ahearing. (c) At the applicant's expense, notice ofa hearing on a draft EGFP peImitmust be published in the public notice section ofone issue ofa newspaper ofgeneral circulation in the municipality in which the grandfathered or electing EGF is located, or in the municipality nearest to the location ofthe grandfathered or electing EGF faeilit). The notice must be published at least 30 days before the date set for the hearing. The notice must include the following: (1) the time, place, and nature ofthe hearing; 45(2) a briefdescription ofthe purpose ofthe hearing; and (3) the name and phone number ofthe commission office to be contacted to verify that a hearing will be held. (d) Any person, including the applicant, may submit oral or written statements and data concerning the draft EGFPpemrit. (1) Reasonable time limits may be set for oral statements, and the submission of statements in writing may be required. (2) The period for submitting written comments is automatically extended to the close ofany hearing. (3) At the hearing, the period for submitting written comments may be extended beyond the close ofthe hearing. (e) A tape recording or writtentranscript ofthe hearing must be made available to the public. (f) Any person, including the applicant, who believes that any condition ofthe draft EGFP pemrit is inappropriate or that the preliminary decision to issue or deny the permit is inappropriate, shall raise all issues and submit all arguments supporting that position by the end ofthe public comment period. 

### 46(g) Any supporting materials for comments submittedunder subsection (f) ofthis section must be included in full and may not be incorporated by reference, unless the materials are one ofthe following: (1) already part ofthe administrative record in the same proceedings; (2) state or federal statutes and regulations; (3) EPA documents ofgeneral applicability; or (4) other generally available reference materials. (h) The commission shall keep a record ofall comments received and issues raised in the hearing. This record is available to the public. (1) The draft EGFP permit may be changed based on comments pertaining to whether the permit provides for compliance with the requirements ofthis subchapter. G) The commission shall respond to comments consistent with §116.922 ofthis title (relating to Notice ofFinal Action). §116.922. Notice ofFinalAction. 47(a) After the public commentperiod orthe conclusion ofany notice and comment hearing, the commission shall send notice by first-class mail ofthe final action on the application to any person who commented during the public commentperiod or at the hearing, and to the applicant. (b) The notice must include the following: (1) the response to any comments submitted during the public comment period; (2) identification ofany change inthe conditions ofthe draft electric generating facility permit and the reasons for the change; (3) a statement that any person affected by the decision ofthe commission may petition for rehearing under §50.119 ofthis title (relating to Notice ofCommission Action, Motion for Rehearing) and may seekjudicial review under TCAA, §382.032 (relating to Appeal ofCommission Action). 

### §116.930. Modifications. The owner or operator planning a modification ofa facility permitted under this subchapter must comply with Subchapter B ofthis Chapter (relating to New Source Review Permits) before work is begun on the construction ofthe modification.

48§1l6.931. Renewal. 

### Electric generating facility pennits 

### (EGR') shall be renewed in accordance with Chapter 116, Subchapter D ofthis title (relating to Permit Renewals).



### 49

# - AN ORDER adopting revisions to the State Implementation Plan concerning amendments to 30 TAC Chapter 101, Subchapter H, Division 2 concerning Emissions Banking and Trading ofAllowances, and 30 TAC Chapter 116, concerning Control ofAir Pollution by Pennits for New Construction orModification, Subchapter A, concerning Definitions, SubchapterI, concerning Electric Generating Facility Pennits and Subchapter F concerning Standard Permits. Docket No. 1999-1006- RUL. WHEREAS, on December 16, 1999, the Texas Natural Resource Conservation Commission (Commission) considered revisions to the State Implementation Plan (SIP). The revisions to the SIP include adoption and amendment of: §§lO1.330, 101.331, 101.332, 101.333, 101.334, 101.335, 101.336, 101.337, 116.18, 116.910, 116.911, 116.912, 116.913, 116.914, 116.916, 116.920, 116.921, 116.922, 116.930, 116.931; 116.601, 116.602, 116.603, 116.604, 116.605, 116.606, 116.61O(a), 116.611(a) and (c), 116.614 and the deletion of 116.61O(a)(6). WHEREAS, pursuant to the Texas Health and Safety Code Annotated, §382.017 (Vernon Supp. 1999); Texas Government Code Annotated, SubchapterB, Chapter 2001 (Vernon's 1993); and 40 Code ofFederal Regulations, §51.102, the staffofthe Commission, afterpropernotice, conducted public hearings in El Paso and Lubbock on October 1, 1999, in Austin on October4, 1999, in Irving on October5, 1999, and in Houston and Beaumont on October 7, 1999, to consider proposed revisions to the SIP; and WHEREAS, the Commissionduly circulated to interested persons, the Regional Administrator ofthe U.S. Environmental Protection Agency (EPA), and all applicable local airpollution control agencies hearing notices ofits intended action; and WHEREAS, interestedpersons were invited to submit data, views, and recommendations on the proposed revisions, either orally or in writing, at the hearing; and WHEREAS, copies ofthe proposed revisions were available for public inspection at the Commission's central office and regional offices prior to the scheduled hearing; and WHEREAS, data, views, and recommendations ofinterestedpersons were submitted to the Commission staffat the hearing and were considered by the Commission staffas reflected in the attached analysis oftestimony; and WHEREAS, the Commission finds that said analysis oftestimony includes the names ofall interested groups or associations offering comment on the revisions and theirposition concerning the proposed revisions; andWHEREAS, the Texas Health and Safety Code Annotated, §§382.011, 382.012,382.017,



### .,";' ':

### 3~2~O2}!, ;and 

### 382.051 (Vernon Supp. 1999) give the Commission authority to control the quality ofthe

.., . state's air, adopt rules and issue orders and permits consistent with the policies and purposes ofthe Texas Clean Air Act; a,nd Texas Utilities Code §39.264 which gives the Commission authority to require emission reductions from grandfathered electric generating facilities; and WHEREAS, the Commission finds that the factual bases for the proposed revisions are fully set out inthe analysis oftestimony; and WHEREAS, the Commissionhereby certifies that the revisions, as adopted, have been reviewed by legal counsel and found to be a valid exercise ofthe Commission's legal authority; NOW, THEREFORE, BE IT ORDERED BY THE COMMISSION THAT: 1. The revisions to the SIP appended to this Order are hereby adopted and promulgated and are incorporatedby reference in this Order as set forth at length verbatim in this Order. 2. Onbehalfofthe Commission, the Chairman should transmit a certified copy ofthis Order, together with the adopted revisions, to the Governor ofTexas for submittal to the Regional Administrator ofEPA as a proposed revision to the Texas SIP pursuant to the Federal CleanAir Act, §1l0, as amended. 3. The effective date ofthe amended rules is 

### 20 days after the rules are filed with the 

### Texas Register, Office ofthe Secretary ofState. 

### Ifany portion ofthis Order is for any reason heldto be invalid, the invalidity ofany portion shall not affect the validity ofthe remaining portions. Issued date: 

# DEC 

# £21999 TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

# -



# - (' 

## ,

AN ORDER adopting amendments to 30 TAC Chapters 101 and 116, concerning the implementation ofSenate Bill (SB) 7 and SB 766; 1999-Q929-RUL WHEREAS, onDecember 16, 1999, the Texas Natural Resource Conservation Commission (Commission) considered amendments to 30 TAC Chapter 101, concerning emissions banking and trading ofallowances, and 30 TAC Chapter 116, concerning the permitting ofgrandfathered electric generating facilities, the procedures for obtaining a voluntary emission reductionpermits and for creating standard permits; and WHEREAS, pursuant to the Texas Health and Safety Code Annotated, §§382.011, 382.012, and 382.017 (Vernon Supp.1999); Texas GovernmentCode Annotated, Subchapter B, Chapter 2001 (Vernon 1993); and §382.023 (Vernon Supp. 1999) give the Commission authority to control the quality ofthe state's air and issue orders consistent withthe policies and purposes ofthe Texas Clean Air Act; and Texas Utilities Code §39.264 whichgives the Commission authority to require emission reductions from grandfathered electric generating facilities the staffofthe Commission, after proper notice, conductedpublic hearings in El Paso and Lubbock on October 1, 1999, in Austin on October4, 1999, inIrving on October 5, 1999, and in Houston and Beaumont on October7, 1999, to consider proposed amendments to 30 TAC Chapters 101 and 116; and WHEREAS, the Commission finds that the reasonedjustification and factual bases for the proposed amendments are fully set out in the analysis oftestimony; and WHEREAS, the Commission hereby certifies that the amendments, as adopted, have been reviewed by legal counsel and found to be a valid exercise ofthe Commission's legal authority. NOW, THEREFORE, BE IT ORDERED BYTHE COMMISSION THAT: 1. The amended rules are hereby adopted. The rules and the preambles to the rules adopted by the Commission are incorporated by reference in this Order as set forth at lengthverbatim 

### in this OJ;'der. 2. The effective date ofthe amended rules is 20 days after the rules are filed with the 

### Texas Register, Office ofthe Secretary ofState. 3. This Order constitutes the Order ofthe Commission required by the Administrative Procedure Act, Texas Government Code, §2001.033. 4. Ifany portion ofthis Order is for any reason held to be invalid by a court ofcompetent jurisdiction, the invalidity ofany portion shall not affectthe validity ofthe remaining portions. Issued date: 

# DEC 221999 TEXAS NATURAL RESOURCE CONSERVATION COMMISSION