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

Dear Mr. Cooke:

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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 of adopted amendments to Chapters 101 and 116 implement the requirements

ofSenate Bill 7, 76th Legislature, 1999, concerning the emissions banking and trading of

allowances and the permitting of grandfathered electric generating facilities. The second

package of adopted amendments to Chapter 116 implements the new procedures for standard

permits authorized by Senate Bill 766, 76th Legislature, 1999.

The public hearing certification, complete record ofthe public 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 of Senate Bill 7, concerning the permitting of grandfathered 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 of the public hearing and is

divided into the following four sections:

o Public Notification and Proposal

o Written and Oral Testimony

o Evaluation of Testimony

o Staff Recommendations

Additional copies of this 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

RECOMMENDATIONS
Texas 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 of nitrogen 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 of allocation, 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 of this division

who opens an account under this division for the purpose of banking 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 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 Designation ASTM D388-92 "Standard

Classification of Coals by Rank" (as incorporated by reference in Title 40 Code of Federal

Regulations, §72.13 (effective June 25, 1999)).

(7) Coal-fJred - The combustion of fuel consisting of coal as defined in paragraph (6)

of this section or any coal-derived fuel (except coal-derived gaseous fuels with a sulfur content no

greater than natural gas), alone or in combination with any other fuel. The defmition is independent of

the percentage of coal or coal-derived fuel consumed during any control period.

(8) Compliance account - The account where allowances held by an EGF or multiple

EGFs are recorded for the purposes of meeting the requirements of this division and Chapter 116,

Subchapter I of this title (relating to Electric Generating Facility Permits). EGFs not under common

ownership or control may have separate compliance accounts.

(9) Control period - The 12-month period beginning May 1 of each year and ending

April 30 of the 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 of Interstate Highway 35

north of San Antonio or traversed by or east of Interstate Highway 37 south of San 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 of this title (relating to New Source Review Permits) which is not subject to the

requirements of Texas 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, Ciudad Juarez, 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.
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Chapter 101 - General Rules

Rule Log No. 99033-lOI-AI

Page 82

(15) Heat input - The heat derived from the combustion of any 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 of this division and Chapter 116, Subchapter I of this title.

(17) Person - For the purpose of initial issuance of permits under Chapter 116,

Subchapter I of this title, and for the issuance of allowances under this division, a person includes an

individual, a partnership of two or more persons having a joint 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 of this division and Chapter 116, Subchapter I of this title.

(19) West Texas Region - All counties not contained in the East Texas Region or

EI Paso Region.
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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 of this title

(relating to Electric Generating Facility Permits); and

(2) brokers.

§101.332. General Provisions.

(a) Allowances are valid only for the purposes of meeting the requirements of this division and

for meeting the requirements of Chapter 116, Subchapter I of this title (relating to Electric Generating

Facility Permits), and cannot be used to meet or exceed the limitations of any annual emission

limitation authorized under Chapter 116, Subchapter B of this 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 of allowances in its compliance account that is equal to or greater than the

total emissions of that air contaminant emitted during the prior control period. Compliance with the

allowance system will begin with the control period beginning May 1, 2003.
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Page 84

(c) Emission reductions used to satisfy the requirements of the Emissions Banking and Trading

of Allowances (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 of federal

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 of whole allowances, the number of allowances will be rounded down for decimals less

than 0.50 and rounded up for decimals of 0.50 or greater.

(h) One compliance account shall be used for multiple EGFs permitted under Chapter 116,

Subchapter I of this title located at the same property and under common ownership or control.

§lOl.333. Allocation of Allowances.

Allowances will be allocated according to the requirements of this section.
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(1) Except as provided in paragraphs (2) and (3) of this section, allowances will be

calculated for grandfathered electric generating facilities (EGF) using the following equation: Figure:

30 TAC §!01.333(1)

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

2000 lb / allowance

Where:

A

HI

ER

=

=

=

Number of allowances

Total heat input (million British thennal units (MMBtu» as listed in the

1997 Emissions Scorecard from EPA's Acid Rain Program. or if not

listed in the 1997 Emissions Scorecard, by a method approved by the

executive director, consistent with the emission reduction requirements

of this division.

Emission rate, as defmed in subparagraphs (A) and (B) of this

paragraph;

grandfathered EGFs.

(A) In the 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) In the West Texas and El Paso Regions, 0.195 pound per MMBtu.
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Page 86

(2) For electing EGFs, the amount of allowances is equal to emissions as listed in the

1997 Emissions Scorecard from EPA's Acid Rain Program, or if not listed in the 1997 Emissions

Scorecard, by a method approved by the executive director, consistent with the emission reduction

requirements of this division; and in both cases, shall not exceed any of the following:

(A) any annual emission limitation authorized under Chapter 116, Subchapter

B of this title (relating to New Source Review Permits);

(B) an applicable state or federal requirement.

(3) The commission may invalidate any allowances allocated to an electing EGF that

authorize emissions in excess of applicable state or federal requirements.

(4) If emissions of NOx or, if applicable, S02' exceed the amount of allowances 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;
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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,

Subchapter I of this title (relating to Electric Generating Facility Permits) for any grandfathered or

electing EGFs previously exempted under §116.9lO(d) of this title (relating to Applicability);

(B) subsequently, by May 1 of each year, beginning in 2004.

(C) allowances will be allocated:

(i) initially by commission order for all grandfathered and electing

EGFs;

(ii) notwithstanding clause (iii) of this subparagraph, at the beginning

of each control period, the commission will deposit the same amount of allowances 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) of this title (relating to Emission Monitoring, Compliance,

Demonstration, and Reporting.)
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.Page 88

(7) The commission shall maintain a registry of the allowances in each compliance

account. For each transfer, the registry shall include the price paid per allowance. The registry shall

not contain proprietary 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 of tons of air 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 of this title (relating to Electric Generating Facility Permits).
Texas Natural Resource Conservation Commission

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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 shutdown has 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 of lbs/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 shutdown has been replaced by another EGF not

permitted under Chapter 116, Subchapter I of this 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 =(HIcp XEFcp) + [(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 of Ibs/MMBtu.

Heat input from 1997

The emission factor in terms of Ibs/MMBtu for the EGF that replaced

the thermal energy from the reduced utilization or shutdown. If the

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 Rain Program.

§101.335. Allowance Banking and Trading.

(a) Allowances not used 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.
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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 of trades must occur within 30 days after the trade.

(c) Allowance trades are prohibited prior to 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 in broker accounts.

§101.336. Emission Monitoring, Compliance Demonstration, and Reporting.

(a) Emission monitoring and reporting shall be conducted in accordance with §116.914 of this

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 of each year detailing the following:
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(1) the amount of emissions of each allocated air contaminant during the preceding

control period.

(2) a swnmary of all 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 of Mexico and from EGFs located in Sunland Park, New Mexico. Emission

reductions under this 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 of the source;

(C) quantifIable, so that the emission reduction can be measured or estimated

with confidence using replicable techniques;
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Page 93

(D) surplus, such that the emission reduction is not otherwise required of a

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 must be 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 jf either EPA or the commission determines that reductions of nitrogen 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 Conservation Commission

Chapter 116 - Control ofAir Pollution by Pennits for

New Construction or Modification

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 of this 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) of this 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 of British 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) of this title.
Texas Natural Resource Conservation Commission

Chapter 116 - Control ofAir Pollution by Permits for

New Construction or Modification

Rule Log No. 99033-116-AI

(4) CoaI-rJred - As defined in §101.330(7) of this title.

(5) Compliance account - As defmed in §101.330(8) of this title.

(6) Control period - As defmed in §101.330(9) of this title.

(7) Electing EGF - As defmed in §101.330(1l) of this title.

Page 88

(8) Electric generating facility (EGF) - As defmed in §101.330(12) of this title.

(9) Grandfathered EGF - As defined in §101.330(14) of this title.

(10) Nameplate capacity - The maximum electrical output (expressed in megawatts)

that an EGF can sustain over a specified period of time when not restricted by seasonal or other

deratings.

(11) Peaking unit - An EGF that has:

(A) an average capacity factor of no more than 10% during the past three

calendar years; and
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Page 89

(B) a capacity factor of no more than 20% in each of those calendar years.

(12) Person - As defined in §101.330(17) of this title.
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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 of electric 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 commission to adopt rules

consistent with the policy and purposes of the TCAA; §382.0513, which authorizes the commission to

establish and enforce permit conditions consistent with the TCAA; §382.051, which authorizes the

commission to 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 of a permit; §382.056,

which authorizes the commission to require public notice of certain permit applications and procedures

for requesting hearings and responding to comments; §382.0561, which authorizes hearing procedures

for FOPs; §382.0562, which requires notices of decision; 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

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New Construction or Modification

Rule Log No. 99033-116-AI

§116.910. Applicability.

Page 91

(a) The owner or operator of a grandfathered electric generating facility (EGF) shall apply for

a permit to operate that facility under this subchapter.

(b) Owners or operators of electing EGFs opting to obtain allowances under Chapter 101,

Subchapter H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances), shall

submit a request to alter any related existing New Source Review (NSR) permits at the time of

application for a permit under subsection (a) of this section. Alterations must be consistent with the

requirements of §116.116(c) of this title (relating to Changes to Facilities).

(c) The owner, or the operator who is authorized to act for the owner, of a 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 of 25 megawatts or less from this subchapter. The municipal corporation,

electric cooperative, or river authority must notify the commission by January 1, 2000, of its intent to

exclude those EGFs. If the municipal corporation, electric cooperative, or river authority reevaluates

its intent to exclude EGFs, it may choose to permit any of those EGFs consistent with the requirements

of this subchapter.
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(e) Emissions of nitrogen oxides shall be permitted under this subchapter for any grandfathered

or electing EGF. Emissions of sulfur dioxide and particulate matter shall be permitted under this

subchapter only for grandfathered or electing coal-fired EGFs. Emissions of other air contaminants

from grandfathered EGFs may be permitted under this subchapter, provided the grandfathered EGFs

meet the requirements of Chapter 116, Subchapter H of this title (relating to Voluntary Emission

Reduction Permits).

(f) Owners or operators of grandfathered facilities as defmed in §116.10 of this title (relating

to General Definitions) at sites with grandfathered or electing EGFs subject to this subchapter may

consolidate any permit issued under Chapter 116, Subchapter H of this 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 of its potential electrical output capacity, or

less than 219,000 megawatt-hours, is not subject to the requirements of this chapter.
Texas Natural Resource Conservation Commission

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§116.911. Electric Generating Facility Permit Application.

Page 93

(a) Owners or operators of grandfathered or electing electric generating facilities (EGF) shall

submit an application to authorize nitrogen oxides (NOx) emissions and, if applicable, 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 of the

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 of emissions and performance demonstration. Applicants must

propose monitoring and reponing for the measurement of emissions and demonstration of performance

consistent with §116.914 of this 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) of this 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
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Air Permits Division where there is an increase in emissions to determine the air quality impacts from

controls proposed under paragraph (2) of this subsection.

(4) Opacity limitations for coal-fired grandfathered and electing EGFs. The coal-fired

grandfathered and electing EGFs must meet the opacity limitations of §111.111 of this 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 of the emissions from the 1997 Emissions Scorecard from

the EPA Acid Rain Program, or if that information is not available, the actual emissions from that

electing EGF for calendar year 1997;

(B) documentation of fuel consumption, fuel heating values, and heat input in

millions of British thermal units (MMBtu) for calendar year 1997;

(C) identification of the electing EGFs to be included.
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(2) Emissions of air contaminants from electing EGFs other than NOx , and if

Page 95

applicable, 502 and PM, already authorized by Chapter 116 of this title (relating to Control of Air

Pollution by Permits for New Construction or Modification), will not be authorized under this

subchapter.

(c) The owner or operator of a grandfathered or electing EGF must submit an application for a

permit under this subchapter on or before September 1, 2000.

(d) All applications for an EGFP shall be submitted under the seal of a Texas licensed

professional engineer ifrequired by §116.110(e) of this title (relating to Applicability).

§116.912. Electing Electric Generating Facilities.

An electing electric generating facility (EGF) may opt out of the requirements of this

subchapter under the following conditions.

(1) The electing EGF must notify the commission of its intent to opt out prior to the

beginning of the next control period. The decision to opt out of the requirements of this subchapter

will become effective at the beginning of the control period that follows notification to the commission.

(2) The electing EGF may not opt out during a control period.
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(3) Once the electing EGF has opted out, all of the following apply:

Page 96

(A) all allowances for the electing EGF will be voided by the commission and

may not be banked for subsequent use;

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

(C) the electing EGF may not panicipate in the emissions banking and trading

of allowances 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:
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(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 of all other air contaminants from grandfathered

EGFs, provided the requirements of Chapter 116, Subchapter H of this title (relating to Voluntary

Emissions Reduction Permits) are met.

(3) Grandfathered facilities as defmed in §116.10 of this title (relating to General

DefInitions) at sites with grandfathered or electing EGFs and permitted under Chapter 116, Subchapter

H of this 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 of this title (relating to Emissions Banking and Trading of Allowances) including the
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requirement to maintain allowances in a compliance account. Allowances may be transferred in

accordance with §101.335 of this title (relating to Allowance Banking).

(5) Mass emission monitoring and reporting shall be conducted in accordance with

§116.914 of this title (relating to Emissions Monitoring and Reporting Requirements).

(6) On June 1 after every control period, a grandfathered or electing EGF subject to

this subchapter shall hold a quantity of allowances for emissions of NOx and, where applicable, S02' in

its compliance account that is equal to or greater than the total emissions of that air contaminant emitted

during the prior control period.

(7) Owners or operators shall submit a report of the amount of emissions of each

allocated air contaminant, from the prior control period to the Air Permits Division consistent with the

requirements of §101.336(b) of this title (relating to Emission Monitoring, Compliance Demonstration,

and Reporting).

(8) Coal-fired grandfathered and electing EGFs must meet the opacity limitations of

§111.111 of this title (relating to Requirements for Specified Sources).

(b) Special conditions may be included in the EGFP.
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§116.914. Emissions Monitoring and Reporting Requirements.

Page 99

(a) Grandfathered or electing electric generating facilities (EGF) subject to 40 Code of Federal

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 of 40 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) For grandfathered and electing EGFs subject to 40 CFR Part 75, a certified

monitoring system under 40 CFR Part 75 shall be used to demonstrate compliance with this subchapter.

(A) If the grandfathered or electing EGF has a flow monitor certified under 40

CFR Part 75, nitrogen oxides (NOx) emissions in pounds per hour shall be determined using a NOx

continuous emission monitoring system (CEMS) and the flow monitor.

(B) If the grandfathered or electing EGF does not have a certified flow

monitor, but does have a NOx CEMS, NOx emissions in pounds per hour shall be determined by

multiplying pounds of NOx per million British thennal units (lbsIMMBtu) times heat input in MMBtu

per hour (MMBtulhr). The procedures in 40 CPR Part 75, Appendix F, concerning Conversion
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Procedures, Section 3, shall be used to convert the measured concentration of NOx 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 NOx emission 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 if the CEMs exceeds 10% relative accuracy.
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(3) in lieu of the monitoring required by paragraph (b)(l) or (2) of this subsection, the

electric generating facility permit (EGFP) may authorize alternative monitoring to calculate mass

emissions under this section. The applicant must submit the following for review of an alternative

monitoring proposal:

(A) a description of the monitoring approach to be used;

.(B) a description of the major components of the monitoring system, including

the manufacturer, serial number of the component, the measurement span of the component, and

documentation to demonstrate that the measurement span of each component is appropriate to measure

all of the expected values;

(C) an estimate of the accuracy of the system and documentation to

demonstrate how the estimate of accuracy was determined;

(D) a description of the 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.
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(4) emissions in pounds per hour shall be detennined using the NOx CEMS and one of

the following methods.

(A) The owner or operator may elect to comply with subsection (a)(2)(A) or

(B) of this section.

(B) The grandfathered or electing EGF may use a flow monitor certified under

40 CFR Part 60 to determine emissions in pounds per hour.

(C) NOx emissions in pounds per hour 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 of NOx and a diluent (C02 or OZ) into

emission rates in IbslMMBtu. The procedures in 40 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 of less than 100 MMBtu/hr

and for peaking units emissions in pounds per hour, may be detennined using the procedures in

Appendix E of 40 CFR Pan 75 to estimate the emission rate.

(c) The following requirements apply to all grandfathered and electing EGFs.
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(1) During a period when valid data is not being 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 of 40 CFR Part 75, Subpart

D, concerning Missing Data Substitution Procedures.

(2) Data collected from monitoring of grandfathered and electing EGFs shall be used

to calculate the actual emissions over a control period. The information in this report shall be

submitted by June 30 of each 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 of the 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.
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§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 if the 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 in EI Paso County.

§116.920. Public Participation for Initial Issuance.

(a) An applicant for an electric generating facility permit (EGFP) shall publish notice of intent

to obtain the permit in accordance with Chapter 39 of this title (relating to Public Notice).

(b) Public notice for an EGFP may be combined with the public notice for a voluntary

emission reduction pennit, under Chapter 116, Subchapter H of this 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

comment period shall end 30 days after the publication of Notice of Receipt of Application and Intent

to Obtain Permit under §39.418 of this title (relating to Notice of Receipt of Application and Intent to
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Obtain Permit). Any hearing request must be made in writing during the 3o-day public comment

period.

(d) Any hearing regarding initial issuance of an EGFP shall be conducted under the procedures

in §116.921 of this title (relating to Notice and Comment Hearings for Initial Issuance) and not under

the APA.

(e) Responses to public comments and the notice of the commission's decision to issue or deny

an EGFP shall be conducted under the procedures in §116.922 of this title (relating to Notice of Final

Action).

(f) A person affected by a decision to issue or deny an EGFP may move for rehearing under

the appropriate procedure in Chapter 50 of this title (relating to Action on Applications and Other

Authorizations) and may seek judicial review under TCAA, §382.032 (relating to Appeal of

Commission Action).
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§1l6.921. Notice and Comment Hearings for Initial Issuance.

Page 106

(a) The notice and comment hearing requirements apply only to the initial issuance of a

electric generating facility permit (EGFP).

(b) The commission shall decide whether to hold a hearing. The commission is not required to

hold a hearing if the basis of the request by a person who may be affected by emissions from a

grandfathered or electing electric generating facility (EGF) is determined to be unreasonable. If a

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 a hearing.

(c) At the applicant's expense, notice of a hearing on a draft EGFP must be published in the

public notice section of one issue of a newspaper of general circulation in the municipality in which the

grandfathered or electing EGF is located, or in the municipality nearest to the location of the

grandfathered or electing EGF. 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 of the hearing;

(2) a brief description of the purpose of the hearing; and
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(3) the name and phone number of the 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

of any hearing.

(3) At the hearing, the period for submitting written comments may be extended

beyond the close of the hearing.

(e) A tape recording or written transcript of the hearing must be made available to the public.

(f) Any person, including the applicant, who believes that any condition of the 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 that position by the end of the public cormnent period.
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(g) Any supporting materials for comments submitted under subsection (f) of this section must

be included in full and may not be incorporated by reference, unless the materials are one of the

following:

(1) already part of the administrative record in the same proceedings;

(2) state or federal statutes and regulations;

(3) EPA documents of general applicability; or

(4) other generally available reference materials.

(h) The commission shall keep a record of all 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 of this subchapter.

(j) The commission shall respond to comments consistent with §116.922 of this title (relating to

Notice of Final Action).
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§1l6.922. Notice of Final Action.

Page 109

(a) After the public comment period or the conclusion of any notice and comment hearing, the

commission shall send notice by first-class mail of the final action on the application to any person who

commented during the public comment period 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 of any change in the conditions of the draft electric generating facility

permit and the reasons for the change;

(3) a statement that any person affected by the decision of the commission may petition

for rehearing under the appropriate procedure in Chapter 50 of this title (relating to Action on

Applications and Other Authorizations) and may seek judicial review under TCAA, §382.032 (relating

to Appeal of Commission Action).
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§116.930. Modifications.

Page 110

The owner or operator planning a modification of a facility permitted under this subchapter

must comply with Subchapter B of this chapter (relating to New Source Review Permits) before work is

begun on the construction of the modification.

§116.931. Renewal.

Electric generating facility permits shall be renewed in accordance with Chapter 116,

Subchapter D of this 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 authorization to emit one ton of nitrogen 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 of allocation 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 of this division

who opens an account under this division for the purpose of banking and trading emissions allowances.

1
(54) Broker account - The account where allowances held by a broker person 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 Designation ASTM D388-92 "Standard

Classification of Coals by Rank" (as incorporated by reference in Title 40 Code of Federal

Regulations, §72.13 (effective June 25, 1999»

(7) Coal-fired - The combustion of fuel consisting of coal as defined in paragraph (6)

ofthis section or any coal-derivedfuel (except coal-derived gaseous fuels with a sulfur content no

greatertban natural gas), alone or in combination with any other fuel. The definition is independent of

the percentage of coal or coal-derived fuel consumed during any control period.

( 8 5) Compliance account - The account where allowances held by an EGF or

multiple.EGFs are recorded for the purposes of meeting the requirements of this Division and Chapter

116, Subchapter I of this title (relating to Electric Generating Facility Permits). EGFs not under

common ownership or controlmay have separate compliance accounts. 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 of each year and

ending April 30 of the following year. Control periods begin May 1, 2003.

(10:::;) East Texas Region - All counties traversed by or east of Interstate Highway 35

2
north of San Antonio or traversed by or east of Interstate Highway 37 south of San 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 a person 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 of its potetrtial eleetrieai output eapaeit).

(12 -8) Electing electric generating facility EGF - An electric generating facility

permitted under Chapter 116, Subchapter B of this title (relating to New Source Review Permits) which

is not subject to the requirements of Texas Utilities Code, §39.264 and elects to comply with Chapter

116, Subchapter I of this title (relating to Electric Generating Facility Permits).

(13-te) EI Paso Region - All of EI Paso County, Ciudad Juarez, Mexico, and Sunland

Park, New Mexico.

(149) Grandfathered electric generating facility - 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.

(15 +t) Heat input - The heat derived from the combustion of any fuel at an EGF.

3
Heat 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 emit NOx• A NOx B:llo'Nflflee is valid

only for the purposes of meeting the requirements of this division and Chapter 116, Subchapter I of this

title (relating to Electric .Generating Facility Permits).-:-

(A) this di vision, 01

(D) Chapter 116, Stlbchapter I of this title.

(13) Permitted EGF - An electric generating faeHi~ permitted tmdcr Ch1lpter 116,

Stlbehapter I of this title, ineltlding electing facilities.

(17) .Person - For the purpose of initial issuance of pennits under Chapter 116,

Subchapter I of this title (relating to Electric Generating Facility Permits), and for the issuance of

allowances under this division, a person includes an individual, a partnership of two or more persons

having a joint or common interest, 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 of this division and Chapter 116, Subchapter I of this 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 of this title,

(relating to Electric Generating Facility Permits):- , and

(2) Brokers A person not reqtlircd to participate in the reqtlirements of this division rna, open

a broker aecotmt tmder this di vision for the ptlrposes of ba:nlcing and trading emissiom ailo allees.

§lOl.332. General Provisions.

(a) Allowances are valid only for the purposes of meeting the requirements of this division and

for meeting the requirements of Chapter 116, Subchapter I of this title, (relating to Electric Generating

Facility Permits), and cannot be used to meet or exceed the limitations of any annual emission limitation

authorized under Chapter 116, Subchapter B 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 of each, ear, begiIming in 2004, a

5
grandfathered or electing an electric generating facility (EGF) shall hold a quantity of allowances in its

compliance account that is equal to or greater than the total emissions of that 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 of the Emissions Banking and Trading

of Allowances (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 of federal 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 a property right.

(g) All allowances will be allocated, transferred, or used as whole allowances. To determine

the number of whole allowances, the number of allowances will be rounded down for decimals less than

0.50 and rounded up for decimals of 0.50 or greater.

(h) One compliance account shall be used for multiple permitted EGFs permitted under Chapter

116, Subchapter I of this title (relating to Electric Generating Facility Permits) located at the same

6
propeny and under conunon ownership or control.

(i) If emi~~iom of nitrogen oxide~ or, if applieable, ~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 allo wance~ in the compliance aeeonnL

§101.333. Allocation of Allowances.

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

(1) Except as provided in paragraphs (2) and (3) of this section, allowances will be

calculated for grandfathered electric generating facilities (EGF) using the following equation:

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

2000 Ib / allowance

Where:

A

HI

=

=

Number of allowances

Total heat input (million British thermal units (MMBtu)) dtlring 1997 as

listed in the 1997 Emissions Scorecard from EPA's Acid Rain Program,

or if not listed in the 1997 Emissions Scorecard, by a method approved

7
ER =

by the executive director, consistent with· the emission reduction

requirements of this division. determined by sttbpaTagrapm (A) or (D) of

this paTagr aph.

Emission rate, as defmed in subparagraphs (A)te1 - (B)fE7 of this

paragraph;

(A) the aeid: rain database of the EPA, or

(D) an method approved b, the exectltive director, eor~istent with the emission

rednetion rcqtrirements of this di vision, if the infonuation is tma: vailable 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 of allowances is equal

8
to emissions as listed 1997 Emissions Scorecard from EPA's Acid Rain Program, or if not listed in the

1997 Emissions Scorecard, by a method approved by the executive director, consistent with the emission

reduction requirements of this division; and in both cases the EGr's aetnal emissions in tom in 1997 and

shall not exceed any of the following:

(A) any annual emission limitation authorized under Chapter 116,

Subchapter B of this 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 commission may invalidate any allowances allocated to an electing EGF that

authorize emissions in excess of applicable 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) If emissions of nitrogen oxides or, if applicable, sulfur dioxide, exceed the amount

of allowances 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 a permit under Chapter 116, Subchapter

I of this title (relating to Electric Generating Facility Permits) for any grandfatheredor electing EGFs

previously exempted under §116.91O(d) of this title (relating to Applicability).

(B) subsequently, by May 1 of each year, beginning in 2004.

(C) Allowances will be allocated: b, commission order.

(i) Initially by commission order for all grandfathered and electing

EGFs

(ii) Notwithstanding clause (iii) of this subparagraph, at the beginning

of each control period, the commission will deposit the same amount of allowances 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.

10
(D) Allowances·maybe deducted from compliance accounts following the

review of trading reports required under §101.336(b) of this title, (relating to Emission Monitoring,

Compliance, Demonstration, and Reporting.)

(65) The commission shall maintain a registry of the allowances in each compliance

account. For each transfer, the registry shall include the price paid per allowance. The registry shall

not contain proprietary 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 to the

number of tons of air 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

11
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).

(2) For electing EGFs, ifthe heatinput for the control period is less than the heat input for

1997 and whose reduced.utilization or shutdown has not been replaced by another EGF, 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 in terms of IbslMMBtu,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 the reduced utilization or shutdown has been replaced by another EGF not permitted under

Chapter 116, Subchapter I, allowances will be deducted from the compliance account according to the

following equation:

(HIcp XEFcp) + [(lll1997 - HIcp) * EFnew]

A =~---2"':'O-OO-I-=b":"s-/aI-I-o-w-an-c-e~---=-

12
Where:

A

HIcp

EFcp

HII997

EFnew

=

=

=

=

=

Allowances to be subtracted from the compliance account

Heat input for the control period.

The emission factor for the control period in terms of Ibs/MMBtu.

Heat input from 1997

The emission factor in terms of IbslMMBtu for the EGF that replaced

the thennal energy from the reduced utilization or shutdown. If the

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 Rain Program.

(a) Allowances ma, be transferred at an, time dtlIing the eontrol period.

(b) Doemnentation of afl 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!ti ves ma5 transfer aflowanees.

(d) Notifieation of transfel of allowance Intlst Oeetll within 30 da,s after the transfer of an,

allo wmees to another pal . Allo wanee transfels ate prohibited priol to Ma, 1, 2003.

(e) Allo wmees at eleeting electric generating faeilities (ECF) that restllt flom redtleed tltilization

13
or shtttdo wm ar e ineligible for tI amfer. The amomlt of allo a:nees eligible for tt amfer from an eleeting

ESP will be eaiettlated ttsing the heat inptlt fronl 1997 and the changed emission faetors as follo~s.

(1) If the 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 of tramfenable a:llo~anees.

ml997*EF1997 - IDcp * EFcp

2000 Ibs/ allowance

'+¥here.

----+IIHltm·-----+IIlee~litHiHlfiflBle*t-ffrftoH'lHiH19l999=7~.

EFt'm The etnissioH fector fer 1997 in tCfffiS of pel:lft8:s per fftillioft British

!hennal tmits (lbs/MMBttl).

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

EFeP~--"""'-"""':':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) If the heat inptlt for the eontrol period is less than the heat inptlt for 1997, the

follow ing eqtta:tion ill be tlsed to ea:letllate the amottnt of ttansfcnable ailo anees.

HIl997*EF1997 - HIl997* EFcp

2000 lbs/ allowance

Where.

----+H++ltm,.-----.;~-...;I~Iee£a~tifiH'H:flltll:l:t-tflfr"eef.ffft~19~9R7

---~E;PFt'm The etnissioH fector fer 1997 ift tefffiS of les/MMBtu:.

----+EO:fOFeP Tile etnissioft reeter fer the cofttrol pcrio8: in teFHiS of les/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

of the aBo~a:nees and eligible transfers in this dhision.

§101.335. Allowance Banking and Trading.

(a) ABo :mees at eleeting facilities that result f:r 0111 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 control periods years. 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.

(b) Allowances may be traded at any time during the control period.

(1) Only authorized account representatives may trade allowances.

(2) Notification of trades must occur within 30 days after the trade.

(c) Allowance trades are prohibited prior to May 1,2003.

(d) Traded allowances held in compliance accounts must have originated from EGFs in the

15
same region.

(e) AIlowancesmay be 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 of this

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 of each year detailing the following:

(1) The amount of emissions of each allocated air contaminant during the preceding

control period. This ICPOIt IrlttSt be sabmitted b, Jt:me 1 of eaeh ,cal. Emission allo a:nees eqaaling

the totai enmsiom in be dedtteted if onl the ESP's eomplianee a-eeotmt.

(2) A summary of all final trades for the preceding 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,

16
United States of Mexico and from EGFs located in Sunland Park, NM. Emission reductions under this

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 of the 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 of a

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 must be 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 if either EPA or the commission determines that reductions of nitrogen oxide in the El Paso

17
Region that would otherwise be required under this division would result in an increased ambient ozone

level in EI Paso County.

18
SUBCHAPTER A : DEFINITIONS

§1l6.18

§116.18. Electric Generating Facility Permits DefInitions.

The following words and tenns, when used in Subchapter I of this 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) of this title (relating to Definitions). The

attthoriza:tion to emit one ton of nitrogen oxide (NO,) eF see EiiexiEie (SO~) EitlFiflg B: eeffiFol fleFieEi.

(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 of British 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) of this 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 of Coals b, Rank" (as ineorpoIated b,

19
refelenee in Tide 40 Code of Pederai Regttlations, §72.13 (effective Jttne 25, 1999)).

(4) Coal-fired - As defined in §101.330(7) of this title (relating to Definitions).

(4) Combined pelmit - A permit rimt consolidates the existing new SOtlree revie\'ti

attthorixAriOIlS 'With the leqtliIements of an EGP pennit.

(5) Compliance account - As defmed in §101.330(8) of this 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 of each ,ear and ending AprH 30 of the folIo wing, eal . Contr01

periods begin Ma, 1,2003.

(7) Electric generating facility (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 (relating to Definitions). An EGP pelmitted: tmdel Chapter 116, Stlbehapter D of this tide (relating

to New Somee Review Permits) ~hieh is not stlbject to the reqtliremeItts of Texao; Utiiities Code,

§39.264 and: elects to eompl, ~ith ClmpteI 116, Stlbehapter I of this title (Ielming to Electric Generating

Faeiliry Pelmits).

20
(9 a) Grandfathered electric Eleade generating facility tEGFt - As defined in

§101.330(l4) of this 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 eooperativ e, or riv er 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 of its potential eleettiea:l output eapaeit).

(10 9) Nameplate Capacity - The maximum electrical output (expressed in

megawatts) that an EGF can sustain over a specified period of time when not restricted by seasonal or

other deratings.

(11 te) Peaking unit - An EGF that has:

(A) An average capacity factor of no more than 10% during the past three

calendar years; and

(B) A capacity factor of no more than 20% in each of those calendar years.

(12) Person - As defined in §101.330(17) of this title (relating to Definitions).

21
SUBCHAPTER 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 of a grandfathered electric generating facility (EGF) shall apply for a

pennit to operate that facility under this subchapter.

(b) Owners or operators of electing Eleeting EGFs opting to obtain allowances under Chapter

101, Subchapter H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances),

shall submit a request to alter any related a pelnlit tmder this stlbehapter shall sttbmit a permit

applieation to eonsolidate existing New Source Review (NSR) pennits attthorizations at the time of

application for a pennit under subsection (a) of this section. Alterations must be consistent with the

requirements of 116.116(c) of this 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:ef this s'l:ieehB:J:l~ef.

(c) The owner, or the operator who is authorized to act for the owner, of a grandfathered or

electing an 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 of 25 megawatts or less from this subchapter. The municipal corporation, electric

cooperative, or river authority must notify the commission by January 1,2000, of its intent to exclude

those EGFs. Ifthe municipal corporation, electric cooperative or river authority reevaluates its intent to

22
exclude EGFs, it may choose to permit any ofthose EGFs consistent with the requirements of this

subchapter.

(e) Emissions of NOx shall be permitted under this subchapter for any grandfathered or electing

EGF. Emissions of S02 and particulate matter shall be permitted under this subchapter only for

grandfathered or electing coal-fired EGFs. Emissions of other air contaminants from grandfathered

EGFs may be permitted under this subchapter provided the grandfathered EGFs facilities meet the

requirements of Chapter 116, Subchapter H of this title (relating to Voluntary Emission Reduction

Permits).

(f) Owners or operators of grandfathered facilities as defined in §1l6.10 of this title (relating to

General Definitions) at sites with grandfathered or electing EGFs subject to this subchapter may

consolidate any permit issued under Chapter 116, Subchapter H ofthis title (relating to Voluntary

Emission Reduction Permits) with ineltloe those gra:nd:fathereo facilities in a permit issued under this

subchapter., prOvided the gIandfatheled facilities meet the IcqttiICments of Chapter 116, SttbehapteI II

of this 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 of its potential electrical output capacity, or

less than 219,000 megawatt-hours, is not subject to the requirements of this Chapter.

23
§1l6.911. Electric Generating Facility Permit Application.

(a) Owners or operators of grandfathered or electing electric generating facilities (EGF) shall

submit an application to authorize nitrogen oxide (NOx) emissions and, if applicable, sulfur dioxide

(SO:z) and particulate.maner (PM) emissions. Al1)' application for 311 eleetrie generating facilit, perntit

(EGR') The application must include a completed Form PI-I-U, General Application. The Form PI-IV must be signed by an authorized representative of the applicant. The Form PI-I-U 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 of the electric

generating faeilitj (ESP) shall submit information to the commission which demonstrates that all of the

following are met:

(1) Measurement of emissions and performance demonstration. Applicants must

propose monitoring and reporting for the measurement Meastllement of emissions and demonstration of

performance shaU be eondttcted consistent with §1l6.9I4 of this title (relating to Emissions Monitoring

and Reporting Requirements).

(2) Control method. New control methods proposed in initial applications must comply

with the requirements in §116.617(1),(3),(4)(A) and (B) and §1l6.617(5) - (9) of this title (relating to

Standard Permit for Pollution Control 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\*;. If the EOF is loeated in a nonatt1imnent area, the o~ner or

operator of the EOF shall eomplj ~ith all applieable reqtIirements tinder Chapter 116, StIbehapter B,

Division 5 of th1s title (relating to Nonattairrment Re.ie~).

(4) Prevention of Signifieant Deterioration (PSD) Ie. ie~. If the EOF is loeated in an

attaimnent area, the o~ner or operator of the EOF shaH eomplj ~ith all applieable reqtIirements tinder

Chapter 116, Sttbehapter B, Division 6 of this title (relating to Pre.ention of Signifieant Deterioration

Revie~).

(5) Federal standa.1ds of re.ie~ for eomtrtIeted or reeomtttleted major sotIrccs of

ha%a1"dotls air polltltants. If the EOF is an affected somee (as defined in §116.15(l) of this title (relating

to Seetion 112(g) Defmitions», the affeeted somee shall eomplj ith all applieable reqtIirements tinder

Chapter 116, Sttbeh-a:pter C of this 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) of this 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) of this 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 of this title

25
(relating to Requirements for Specified Sources).

(b) Application infonnation for electing EGFs.

(1) In addition to the information required in this section, EGFPapplications regarding

electing EGFs shall contain the following information:

(A) Documentation of the emissions from the 1997 Emissions Scorecard from

the EPA Acid Rain Program, or if that information is not available, the actual emissions from that

electing EGF for calendar year 1997.

(B) Documentation of fuel consumption, .fuel heating values, .and .heat input in

MMBtu for calendar year 1997.

(C) Identification of the electing EGFs to be included.

(2) Emissions of air contaminants from electing EGFs other than NOx, and if

applicable, S02 and PM, already authorized by Chapter 116, will not be authorized under this

subchapter.

(c) tb1 The owner or operator of a grandfathered or electing EGF must submit an application

for a permit under this subchapter Applieations mtlst be stlbmitted on or before September 1, 2000.

26
(d) te} All applications for an EGFP shall be submitted under the seal of a Texas licensed

professional engineer ifrequired by in eomplianee ith §116.11O(e) of this title (relating to

Applicability).

§116.912. Eleetric Genelatiftg Facitit) Permit Application 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, if llf3plie&l31e, selfitu aisxiae (S00 eHl:issisftS. Tlie

application shall meet the reqtliIements of §1l6.911 of this 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 of the aettlal emissions of that EOF fOi ealendar year 1997.

(D) Doetm1entation of fuel 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 of the NSR :mthorization as ell

as the eonditions of the 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 of the requirements of this

subchapter under the following conditions:

(1) The electing EGF must notify the commission of its intent to opt out prior to the

beginning of the next control period. The decision to opt out of the requirements of this subchapter will

become effective at the beginning of the control period that follows notification to the commission.

(2) The electing EGF may not opt out during a control period.

(3) .Once the electing EGF has opted out, all of the following apply:

(A) All allowances for the electing EGF will be voided by the commission and

28
may 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 of allowances at any future date.

(D) f6J The owner or operator shall request an alteration to the existing New

Source Review eombined permit to 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 in the 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 matter through opacity limitations as specified in §1l1.111 of

this title (relating to.Requiremems for Specified Sources) for coal-fired grandfathered and electing

EGFs. Emissions of other air eontanrin:rnt:s from EOPs meeting the reqttirements of Chapter 116,

StlbehapteI II of this title (relating to VOltlI1:ta:I) Emission Redtletion PeIIllits).

(2) An EGFP may permit emissions of all other air contaminants from grandfathered

EGFs provided the requirements of Chapter 116, Subchapter H ofthis title (relating to Voluntary

Emissions Reduction Permits) are met.

(3) Grandfathered facilities as defined in §1l6.10 of this title (relating to General

Definitions) at sites with grandfathered or electing EGFs and permitted under Chapter 116, Subchapter

H of this title may be consolidated with a permit issued under this subchapter.

(2) O~ners 01 operators of gr:md:fMhered faeilities rna) eonsolidate a peIIllit isstled

tmckr the requirements of Chapter 116, Stlbehapter II of this title.

(4 3) The grandfathered or electing EGF must comply with Chapter 101, Subchapter

H, Division 2 of this title (relating to Emissions Banking and Trading of Allowances) including the

requirement to maintain allowances in a compliance account. Allowances may be transferred in

accordance with §101.335 of this title (relating to Allowance Banking).

(5 4) Mass emission monitoring and reporting shall be conducted in accordance with

30
§116.914 of this title (relating to Emissions Monitoring and Reporting Requirements).

(6 5) On June 1 after every control period May 1 of each ,eM aftel Ma, 1,2003, an a

grandfathered or electing EGF subject to this subchapter shall hold a quantity of allowances for

emissions of NOx and, where applicable, S02' in its compliance account that is equal to or greater than

the total emissions of that air contaminant emitted during the prior control period.

(7 6) Owners or operators shall submit

'*a report Reports of the amount of emissions

of each 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 of each ,eM.

(8 =;) Coal-fired grandfathered and electing EGFs must meet the opacity limitations of

§111.111 of this 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 of Pedelal Regulations (CPR), Part 60 wiH meet at least the leqtlilements

of any 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 of a11)'

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 9 able 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 of this 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) subject to 40 Code of Federal

Regulations Part 75, effective June 25, 1999 (40 CFR Part 75) shall do the following:

(1) For grandfathered or electing EGFs subject to the .requirements of 40 CFR Part 75,

relating to Continuous Emission Monitoring, all monitoring systems must comply with the initial

performance testing and periodic calibration, accuracy testing, and qualityassurance/qualitycontrol

testing specified in 40 CPR Part 75.

32
(2) For grandfathered and electing EGFs subject to 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

CPR Part 75, nitrogen oxide (NOx) emissions in pounds per hour shall be determined using a NOx

continuous emission monitoring system (CEMS) and the flow monitor.

(B) If the grandfathered or electing EGF does not have a certified flow monitor,

but does have a NOxCEMS, NOxemissions in pounds per hour shall be determined by multiplying

pounds of NOxper million British thennal units (lbsIMMBtu) times heat input in MMBtu per hour

(MMBtu/hr). The procedures in 40 CPR Part 75, Appendix F, concerning Conversion Procedures,

Section 3, shall be used to convert the measured concentration of NOxand a diluent (carbon dioxide

(C02) or oxygen (O~) into an emission rate in IbslMMBtu. The procedures in 40 CPR Part 75,

Appendix F, Section 5, 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 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 CPR Part 75 shall comply with:

(1) the initial performance testing and periodic calibration, accuracy testing, and quality

33
assurance/quality control testing specified in 40 CPR Part 75 or

(2) those same requirements in 40 CPR Part 60 relating to New Source Performance

Standards (40 CPR 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 if the CEMs exceeds 10 % relative accuracy.

(3) In lieu ofthe monitoring required by subsection (b)(1) or (2) of this section. the

electric generating facility permit (EGFP) may authorize alternative monitoring to calculate mass

emissions under this section. The applicant must submit the following for review of an alternative

monitoring proposal:

(A) a description of the monitoring approach to be used;

(B) a description ofthe major components of the monitoring system, including

the manufacturer, serial number ofthe component, the measurement span of the component, and

documentation to demonstrate that the measurement span of each component is appropriate to measure

all of the expected values;

(C) an estimate of the accuracy of the system and documentation to demonstrate

how the estimate of accuracy was determined;

(D) a description of the tests that will be used for initial certification, initial

34
quality assurance, periodic quality assurance, and relative accuracy; and

(E) additional infonnation may be requested before approving a request for

alternative monitoring. Alternative monitoring shall be incorporated into the EGFP.

(4) Emissions.in pounds per hour 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

certified under 40 CFR Part 60 to determine emissions in pounds per hour.

(C) NO. emissions in pounds per hour 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 used to convert the measured concentration of NO. and a diluent (C02

or 00 into emission rates in IbsIMMBtu. The procedures in 40 CFR Part 75, Section 5, Appendix F

shall be used to detennine the hourly heat input in MMBtuJhr. 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 of less than 100 MMBtu/hr

and for peaking units emissions in pounds per hour may be determined using the procedures in

35
Appendix E of 40 CPR Part 75 to estimate the NOx emission rate.

(c) The following requirements-.apply to all grandfathered and electing EGFs:

(1) During a period when valid data is not being 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 of 40 CFR Part 75, Subpart

D, relating to Missing Data Substitution Procedures.

(2) Data collected from monitoring of grandfathered and electing EGFs shall be used to

calculate the actual emissions over a control period. The information in this report shall be submitted by

June 30 of each year and may be submitted with the report required under §101.336(b) ofthis title. 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 Form;

(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 of 40 Code of Federal Regttlations (CPR:) Part

36
75 (effective Jtme 25, 1999), relating to ContimJ:OtlS Emission Monitoring, all monitoring s,sterm mtlst

(2) Dmin:g a period ~hen valid data is not being 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,

Nex emissians iH f'a1:lfias f'er hatH' shall Be aeteffflffiea B)' ffil:llfif'lying f'attHas af NOx 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 of NOx ftftd 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 CPR Part 75, Appendix E, relating to Optional NOx

Emissions Estimation Protoeol 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, Subpart A, 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%

reiati ve 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 of NOx 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 of 40 CFR Part 75

to estimate the NOx eHlissieH fftte.

(d) In lietl of the monitoring reqtlired b, stlb~eetion (e) of this seetion, the EOrr atlthoI~e

aiternati ve monitoring to ealettlate mas~ emis~iom tmder th1~ ~eetion. The permit applieant mtlst sttbInit

the folIo wing fOI re \1 ie \'l of an aitemati \1 e monitoIing propo~al.

(1) a de~eIiption of the monitoring appIoach to be tlsed,

(2) a descIiption of the majoI eomponents of the monitoIing s,stem, i:neltlding the

manufaetttIer, ~eIiai nmnber of the eomponent, the rneasurernent ~pan of the eomponent, and

doemnentation to demonstrate that the mea~tlrement span of eaeh eomponent i~ appropriate to meastlre

all of the expeeted IJaltles,

(3) an e~timate of the aeetllaC, of the ~,stem and doemnentation to demonstrate ho\'l the

39
estimate of aeetlrae, \'Ii as detelIllmed,

C4~ a deseription of the tests that VII ill 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 of EaPs 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 of emissions of eaeh alloeated air eontaminant dttring the preeeding

eomrolpeIiod. 'Ftm leport mttst be stlbmitted bj Jmte 1 of eaeh year. At a m:inimtml, the leport shall

eonta:in the foHo\'liing infolmation.

(l~ A deseliption of the 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 of nitrogen oxides (NO,) ar, if a:pplisa:Ble, SHIm! tiiaxitie (SO:!), Me B:Htba!tzeti for EGFs

pro vided that the folIo ing conditiom are met.

(1) An, emission increase of an air eontaminant mtlst oectlr solely as a restllt of the

installation of eontI 01 eqtlipment or implementation of a control techniqtle lmthorized tlnaet the permit

isStled tmder this scrbehapter.

(2) If the projeet, ~ith:etlt consideration of any othel ineteases or decreases not related

to the project, ~iH resttlt in a signifieant net increase in emissiom of any eriteria polltltant, the applieant

shall stlbmit information Stlffieient to demomtrate that the increase ill meet the eonditions of

subparagraph (A) of this paragraph.

(A) The net enrission inerease may not.

(i) comidering the emission redtletiom that ~iH testllt ftom the ptojeet,

eatlSe or eontribtrte to a violation of an, natiorlal ambient ail qtlality standard (NAAQS),

(ii) Clmse or eontribtlte to a 9iolation of anj Pre 9 emion of Significant

Detetioration (PSD) increment, or

41
e:ttls, or eont1" "lOlatlon of a PSD Ylstbility .. limitat'Ion. (iii) Ittte 'b to a' .

(D) For the a . . p"'p0ses oU . fuSS""" inaeases, restrl!ing solely ftoJr. ""'" scetion' ".stg- . net inacase"

eonttol tec:lmi ' the mtaH3tion of means lbose

qtteS, that ",e eqmI '" eontto! equipmeut 01 . or gre>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 of that 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 in 4S CFR §52 21 !he ",ea is d . of Sll:nifielItlt Deterie,ltlioft of Air . (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" proposed projeet 'ft . == whah.. Ibis d

il1tIS' be irteI-d d . . lO me""",es lItld cIeet cas . =mlration I!liISt • e to es meo .. .., fillere nettiI,o• eaIetrlarion if!he) ""'-resttltino• "1'OI!l!he f projeet

a1 e determined to be other ise ereditable

(b) Permit holders Il'lttSt b . . . S'tl D'llt a Pi-lUR . e....."'" eontlol r reg.."",ion for .. e llItlge """ b . enmsmn eo 1 e ttoplemerdCd . mo chong" II

42
(e) The emission eontrol change will not be attthori1:ed b) the exectlti ve direetor if there ar e

signifieant health effec~ concerning the increase in emissions of an) air contaminant other than those for

which a NAAQS has been established tlntil those concerm are addressed b) the registrant to the

satisfaction of the exeetltiIi e dir ector.

(d) Increased emissiom of any an eontaminant, ineltlding NOx Of, if ftPf3lieeele, SO~, offief t:afffi

increases attthorizcd tlnder stlbseetion (a) of this seetion mt1st obtain precomtrtletion attthorization tmder

Chapter 116, Stlbehapter D of this title (relating to t.ew Sotlree RCliiew Pcrnti~) ifnonattaimnent, PSD,

or FCAA, §112(g), relating to 'Modificatiom, are applicable.

§116.916. Permits for Grandfatheredand Electing Electric 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 if the commission or EPA determines that

reductions in nitrogen 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 Participation for Initial Issuance.

(a) An applicant for an electric generating facility permit (EGFP) shall publish notice of intent

to obtain the permit in accordance with Chapter 39 of this 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, Subchapter H of this title (relating to Voluntary Emission

Reduction Permits.)

(c) Electing EGrs Me mbjeet to pttblic notice for emissiom of nitrogen oxides (NO,) !Hie, if

applicable, stllfm dioxide (SOt1.

(c) d) Any person who may be affected by emissions from a an grandfathered or electing EGF

may request the commission to hold a notice and comment hearing on the EGFP application. The public

comment period shall end 30 days after the publication of Notice of Receipt of Application and Intent to

Obtain Permit under §39.418 of this title (relating to Notice of Receipt of Application 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 of an EGFP shall be conducted under the

procedures in §116.921 of this subchapter (relating to Notice and Comment Hearings for Initial

Issuance) and not under the APA.

(e f) Responses to public comments and the notice of the commission's decision to issue or

deny an EGFP shall be conducted under the procedures in §116.922 of this title (relating to Notice of

Final Action).

(f g) A person affected by a decision of the commission to issue or deny an EGFP may move

44
for rehearing under §50.119 of this title (relating to Notice of Commission Action, Motion for

Rehearing) and is entitled to seek judicial review under TCAA, §382.032 (relating to Appeal of

Commission Action).

§116.921. Notice and Comment Hearings for InitiaI Issuance.

(a) The notice and comment hearing requirements apply only to the initial issuance of a electric

generating facility permit (EGFP).

(b) The commission shall decide whether to hold a hearing. The commission is not required to

hold a hearing if the basis of the 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. If a

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 a hearing.

(c) At the applicant's expense, notice of a hearing on a draft EGFP peImit must be published in

the public notice section of one issue of a newspaper of general circulation in the municipality in which

the grandfathered or electing EGF is located, or in the municipality nearest to the location of the

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 of the hearing;

45
(2) a brief description of the purpose of the hearing; and

(3) the name and phone number of the 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 pemrit.

(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

of any hearing.

(3) At the hearing, the period for submitting written comments may be extended beyond

the close of the hearing.

(e) A tape recording or written transcript of the hearing must be made available to the public.

(f) Any person, including the applicant, who believes that any condition of the 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 of the public comment

period.

46
(g) Any supporting materials for comments submitted under subsection (f) of this section must

be included in full and may not be incorporated by reference, unless the materials are one of the

following:

(1) already part of the administrative record in the same proceedings;

(2) state or federal statutes and regulations;

(3) EPA documents of general applicability; or

(4) other generally available reference materials.

(h) The commission shall keep a record of all 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 of this subchapter.

G) The commission shall respond to comments consistent with §116.922 of this title (relating to

Notice of Final Action).

§116.922. Notice of Final Action.

47
(a) After the public comment period or the conclusion of any notice and comment hearing, the

commission shall send notice by first-class mail of the final action on the application to any person who

commented during the public comment period 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 of any change in the conditions of the draft electric generating facility

permit and the reasons for the change;

(3) a statement that any person affected by the decision of the commission may petition

for rehearing under §50.119 of this title (relating to Notice of Commission Action, Motion for

Rehearing) and may seek judicial review under TCAA, §382.032 (relating to Appeal of Commission

Action).

§116.930. Modifications.

The owner or operator planning a modification of a facility permitted under this subchapter must

comply with Subchapter B of this Chapter (relating to New Source Review Permits) before work is

begun on the construction of the modification.

48
§1l6.931. Renewal.

Electric generating facility pennits (EGR') shall be renewed in accordance with Chapter 116,

Subchapter D of this 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 of Allowances, and 30 TAC Chapter 116,

concerning Control of Air Pollution by Pennits for New

Construction or Modification, Subchapter A, concerning

Definitions, Subchapter I, 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, Subchapter B, Chapter 2001 (Vernon's 1993); and 40

Code of Federal Regulations, §51.102, the staff of the Commission, after proper notice, conducted

public hearings in El Paso and Lubbock on October 1, 1999, in Austin on October 4, 1999, in Irving on

October 5, 1999, and in Houston and Beaumont on October 7, 1999, to consider proposed revisions to

the SIP; and

WHEREAS, the Commission duly circulated to interested persons, the Regional Administrator

of the U.S. Environmental Protection Agency (EPA), and all applicable local air pollution control

agencies hearing notices of its intended action; and

WHEREAS, interested persons were invited to submit data, views, and recommendations on the

proposed revisions, either orally or in writing, at the hearing; and

WHEREAS, copies of the 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 of interested persons were submitted to the

Commission staff at the hearing and were considered by the Commission staff as reflected in the

attached analysis of testimony; and

WHEREAS, the Commission finds that said analysis of testimony includes the names of all

interested groups or associations offering comment on the revisions and their position concerning the

proposed revisions; and
WHEREAS, 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 of the

.. , . state's air, adopt rules and issue orders and permits consistent with the policies and purposes of the

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 in the analysis of testimony; and

WHEREAS, the Commission hereby certifies that the revisions, as adopted, have been

reviewed by legal counsel and found to be a valid exercise of the 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

incorporated by reference in this Order as set forth at length verbatim in this Order.

2. On behalf of the Commission, the Chairman should transmit a certified copy of this Order,

together with the adopted revisions, to the Governor of Texas for submittal to the Regional

Administrator of EPA as a proposed revision to the Texas SIP pursuant to the Federal Clean Air Act,

§1l0, as amended.

3. The effective date of the amended rules is 20 days after the rules are filed with the Texas

Register, Office of the Secretary of State.

If any portion of this Order is for any reason held to be invalid, the invalidity of any portion

shall not affect the validity of the remaining portions.

Issued date: DEC £ 2 1999 TEXAS NATURAL RESOURCE

CONSERVATION COMMISSION
-

-

(' ,

AN ORDER adopting amendments to 30 TAC Chapters 101 and 116,

concerning the implementation of Senate Bill (SB) 7 and

SB 766; 1999-Q929-RUL

WHEREAS, on December 16, 1999, the Texas Natural Resource Conservation Commission

(Commission) considered amendments to 30 TAC Chapter 101, concerning emissions banking and

trading of allowances, and 30 TAC Chapter 116, concerning the permitting of grandfathered electric

generating facilities, the procedures for obtaining a voluntary emission reduction permits 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 Government Code Annotated, Subchapter B, Chapter 2001

(Vernon 1993); and §382.023 (Vernon Supp. 1999) give the Commission authority to control the quality

of the state's air and issue orders consistent with the policies and purposes of the Texas Clean Air Act;

and Texas Utilities Code §39.264 which gives the Commission authority to require emission reductions

from grandfathered electric generating facilities the staff of the Commission, after proper notice,

conducted public hearings in El Paso and Lubbock on October 1, 1999, in Austin on October 4, 1999,

in Irving on October 5, 1999, and in Houston and Beaumont on October 7, 1999, to consider proposed

amendments to 30 TAC Chapters 101 and 116; and

WHEREAS, the Commission finds that the reasoned justification and factual bases for the

proposed amendments are fully set out in the analysis of testimony; and

WHEREAS, the Commission hereby certifies that the amendments, as adopted, have been

reviewed by legal counsel and found to be a valid exercise of the Commission's legal authority.

NOW, THEREFORE, BE IT ORDERED BY THE 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 length verbatim in this OJ;'der.

2. The effective date of the amended rules is 20 days after the rules are filed with the Texas

Register, Office of the Secretary of State.

3. This Order constitutes the Order of the Commission required by the Administrative

Procedure Act, Texas Government Code, §2001.033.

4. If any portion of this Order is for any reason held to be invalid by a court of competent

jurisdiction, the invalidity of any portion shall not affect the validity of the remaining portions.

Issued date: DEC 221999 TEXAS NATURAL RESOURCE

CONSERVATION COMMISSION