# Technical Support Document

Texas Chapter 116 – Control of Air Pollution by Permits for New

Construction or Modification Subchapter B – New Source Review Permits Division 1 – Permit Application §116.114

Rule Project Numbers:

2007-023-116-PR

2003-003-116-AI

January 29, 2010

FOR FURTHER INFORMATION CONTACT: Ms. Melanie Magee, United States Environmental Protection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue, Dallas, Texas 75202-2733, (214) 665-7161.

### Subject : Direct Final Approval of the Revi sions to the Application Review Schedule, 30 TAC Chapter 116, Subcha pter B, Division 1, Section 116.114

Contents : I. Executive Summary

II. Background

III. Summary of State Submittals

IV. Technical Review of State Submittals

V. Recommended Agency Action

### I. Executive Summary

On September 25, 2003 and January 24, 2008, the Texas Commission on Environmental Quality (TCEQ) submitted proposed revisions to the Texas State Implementation Plan (SIP) concerning the Applica tion Review Schedule, 30 TAC Chapter 116, Subchapter B, Division 1, Section 116.114. The TCEQ a dopted revisions on August 20, 2003 to address requirements related to the voidi ng of an application for a permit or permit amendment. On December 19, 2007, TCEQ also adopted revisions to include the requirements of House Bill (HB) 3732 relating to the specific deadlines for review and issuance of air permits for Advanced Clean Energy Projects (ACEP). The Chairman of the TCEQ, Robert Huston and Buddy Garcia, su bmitted these provisions as SIP revisions for TCEQ rule project numbers 2003-003-116- AI and 2007-023-116-PR , respectively.

With this review, EPA will de termine if the state adopted revisions to the Application Review Schedule provisions will improve air quality, comply with the Clean Air Act and EPA regulations, and be consistent with EPA’s policies. This review will not cover the

severable revisions to section 116.114 wh ich were submitted by TCEQ to EPA on October 25, 1999. The October 25, 1999 revisions are not being reviewed in this document because EPA is currently review ing this submittal in a separate action (November 26, 2008 (73 FR 72001)).

II. Background

The Texas air pollution control rules for the Application Review Schedule were originally approved into the Texas SIP on September 18, 2002 (67 FR 58709) and are found at 30 TAC Chapter 116, Subchapter B. Since EPA’s approval on September 18, 2002, TCEQ submitted revisions to sec tion 116.114 on October 25, 1999. The purpose

of those revisions was to streamline and fo rmat section 116.114 to match the previous requirements related to public participation listed in Ch apter 39, Public Notice. A Limited Approval and Limited Disapproval (LALD) was proposed on November 26, 2008 (73 FR 72001) for the section 116.114 revisions submitted to EPA on October 25, 1999. Therefore, this review will not eval uate the severable section 116.114 revisions submitted on October 25, 1999.

TCEQ has since adopted revisions to s ection 116.114 on August 20, 2003 and December 19, 2007 and submitted these revisions to EPA on September 25, 2003 and January 24, 2008, respectively. The September 25, 2003 a nd January 24, 2008 rule revisions have

been determined to be seve rable from the October 25, 1999 revisions. The September 25, 2003 submittal proposes changes to the provisi ons related to voiding deficient permit applications. The January 24, 2008 SIP submitta l revises provisions in section 116.114 to implement the requirements of House Bill (HB) 3732, 80 th 

### Legislature (2007), and the Texas Health and Safety Code, secti on 382.0566, concerning specific deadlines for review and issuance of air permits for ACEP.

### III Summary of State Submittals

A. Current SIP . The provisions for section 116.114, Application Review Schedule were submitted to EPA by the Texas Natural Resource Conservation Commission (TNRCC) on June 17, 1998 and became effective on July 8, 1998. EPA approved the submitted revisions on September 18, 2002 (67 FR 58697) and became effective on October 18, 2002.

B. October 25, 1999, SIP Submittal . Texas submitted to EPA a revision to section 116.114 (state adopted Sept ember 2, 1999, effective September 23, 1999). With this revision, the application notification requirements were

streamlined and formatted to match the previous requirements listed in Chapter 116. On November 26, 2008 (73 FR 72001), EPA proposed a simultaneous LALD of the submittal and a final action on these provisions have not been taken to date. Because the proposed SIP submittal revisions are severable and unrelated to this action, this review will not evaluate or include these revisions to this analysis.

C. September 25, 2003, SIP Submittal . Texas submitted a revision to section 116.114 (adopted August 20, 2003, effectiv e September 14, 2003) requiring

that amended section 116.114 to state th at an application for a permit or permit amendment be voided in the even t deficient information supplied with the application is not corrected. If an applicant fails to make a good faith effort to provide the required informa tion after two written notifications of the deficiency, the Executive Director sha ll void the application and notify the applicant. To pursue the project, the applicant shall submit an entirely new application with a new form. The new a pplication shall be subject to the state and federal rules and regulations in place at the time of subm ittal. If a new application is submitted within six mont hs of the voidance of the original application, the application shall be ex empt from the fee requirements under section 116.140, Applicability. However, the appli cant must go through a

new technical review and republish public notice.

Comments Received . The comment period for this rulemaking closed on August 12, 2002. The TCEQ received one oral comment and 35 written comments. The SIP submittal included a copy of all comments received and the response to each. EPA Region 6 did submit a comment letter for this SIP package. However, the comments did not reference concerns with the proposed section 116.114.

D. January 24, 2008, SIP Submittal . Texas submitted a revision to section 116.114 (adopted December 19, 2007, effective January 10, 2008) to implement provisions of House Bill (HB) 3732 and Texas Health and Safety Code (THSC), section 382.0566. The amendment also revises section 116.114(a) to add deadlines associated w ith the review of Advanced Clean

### Energy Projects (ACEP) permit applicatio ns. The amendment revises section 116.114 by adding a new paragraph (a)(3 ) and redesignates the existing paragraph (a)(3) to paragraph (a)(4). The new paragraph (a)(3) establishes a review schedule for processing permit for the ACEP.

Comments Received . The comment period for this rulemaking closed on September 24, 2007. The TCEQ received no oral comments; however,

written comments were received from the following: City of Dallas and City of Houston, Clean Coal Technology F oundation of Texas, Jackson Walker, L.L.P. on behalf of the Gulf Coast Lignite Coalition, Texas Commission on Environmental Quality Office of Public Interest Counsel, Texas Mining and Reclamation Association, and EPA Re gion 6. The SIP submittal included a copy of all comments receive d and the response to each.

The EPA Region 6 comment letter indicated general support for the proposed amendment concerning the deadlines for ACEP permit applications. However, EPA also commented that, a lthough the term ACEP is defined in the Texas Health and Safety Code, it w ould be helpful to include a definition of ACEP in the proposed rules. EPA also commented that the proposed revision to section 116.114 cannot be processed until the TCEQ has addressed

EPA’s concerns with the October 25, 1999 SIP revision. The commission responded that it would not be chan ging the rule in response to EPA’s

comments.

The preamble to section 116.114 references the definition of ACEP as defined

in House Bill 3732. Under this definiti on, an ACEP must meet the following criteria: 1) an application for a perm it is filed on or after January 1, 2008, and before January 1, 2020; 2) the project involves the use of coal, biomass, petroleum coke, solid waste, or fuel cells using hydrogen derived from such fuels, in the generation of electricity, or the creation of liqui d fuels outside of the existing fuel production infrastructure while co-generating electricity; 3) the project is capable of achieving on an annual basis a 99 percent or greater reduction in mercury emissions, and a n itrogen oxides emission rate of 0.05 pounds or less per million British thermal units; and 4) the project renders carbon dioxide capable of capture, seque stration, or abatem ent if any carbon dioxide is produced. Although the incl usion of the ACEP definition would provide more clarity, we believe that th e inclusion of the definition contained in the Texas Health and Safety Code section 382.003, Definitions will provide the necessary background information.

IV. Technical Review of the State Submittal

The technical review of the Septem ber 25, 2003 and January 24, 2008 proposed SIP

revisions consists of four elements of re view. The elements considered during this

review are contained in the A ppendices and include the following.

### Appendix A. Evaluation of the September 25, 2003 and January 24, 2008 SIP submittals with respect to Part 51, Appendix V Completeness

Determination Appendix B. Evaluation of the September 25, 2003 and January 24, 2008 SIP submittals with respect to the requirements of 40 CFR Part 51 Appendix C. Evaluation of the September 25, 2003 and January 24, 2008 SIP submittal with respect to section 110(l) of the Clean Air Act. Appendix D. Review of Proposed Re visions against the SIP Approved Regulations

The Part 51, Appendix V Completeness Determ ination sets forth the minimum criteria for determining whether a submitted SIP is an official submission for purposes of review. The Review with Respect to Part 51 is pres ented as a section-by-s ection review of the submittal in comparison to 40 CFR Part 51. This analysis is used to determine whether the submittal satisfies the requirements for preparation, adoption, and submittal of a SIP revision. Section 110(l) of the Clean Air Act states that a SI P revision must not interfere with attainment or reasonable further progre ss or any other applicab le requirement of the Act. To demonstrate compliance with secti on 110(l) a review has b een completed for the proposed SIP revisions. Fina lly, a word-by-word comparison of the current SIP approved section and the proposed SIP revisions are in cluded in the section entitled “Review of Proposed Revisions against the SIP Approved Regulations.” From this Technical Review, the basis is formed for the determination of whether or not the September 25, 2003 and January 24, 2008 SIP submittals were in agreement with the CAA and other EPA policies or guidance.

V. Recommended Agency Action

The technical analysis provided in the preced ing sections has compared the applicable sections of the CAA and 40 CFR Part 51 to TCEQ’s September 25, 2003 and January 24, 2008 proposed revisions to the SIP, enacted at 30 TAC Chapter 116, Subchapter B, Division 1, Section 116.114.

This analysis found that the adoption of th e revisions to section 116.114 is consistent with the CAA and 40 CFR Part 51. EPA Region 6 is proposing to take a direct final action to approve the revisi ons to section 116.114 that we re state adopted on August 20, 2003 and December 19, 2007 and submitted to EPA on September 25, 2003 and January 24, 2008. This review did not cover the sec tion 116.114 revisions submitted by TCEQ to EPA on October 25, 1999. The October 25, 1999 re visions are not being reviewed in this document because EPA is currently review ing this submittal in a separate action (November 26, 2008 (73 FR 72001)).

### Appendix A. Evaluation of the Se ptember 25, 2003 and January 24, 2008 SIP submittals with respect to Part 51, Appendix V Completeness Determination

Appendix V of 40 CFR Part 51 outlines the minimum criteria for determining whether a State implementation plan is consid ered an official subm ission for purposes of

review under section 51.103. The attached check list outlines the basi c criteria included under 2.1 and 2.2 of Appendix V. However, Section 2.3 of Appendix V describes the “parallel process procedure” whic h EPA had previously adopted to expedite the review of plans. This feature is being deleted fr om the next revised CFR on completeness. Therefore, it is not included in the checklist.

### SIP Completeness Checklist

Rule Log No.: 2003-003-116-AI

When preparing a SIP revision request, the SIP reviewer should go through this list to help identify that the package submitted to EPA is complete. States can use the check list to assure SIP submittals meet Appendix V criteria.

Administrative Materials (2.1)

1. The package is sent with a formal submitta l letter from the Governor or his or her designee requesting EPA’s approval of the revision.

The SIP revision was submitted by a letter from Robert Huston, Chairman of the Texas Natural Resource Conservation Commission, dated September 25, 2003. Governor Rick Perry designated that the Chairman of the Texas Natural Resource Conservation Commission would be his designee for SIP submittals in a letter dated May 21, 2002.

2 Evidence is included that the State has a dopted the revision in the State code or body of regulations, or that the State has i ssued the permit, orde r, consent agreement (hereafter document) in final form. This ev idence would include the date of adoption or

final issuance and the effective date of revi sion, if different from adoption/issuance date.

The revisions were adopted by the Te xas Commission on Environmental Quality (formerly the Texas Natural Resource C onservation Commission) on August 20, 2003 and became effective September 14, 2003

.

3. Evidence is included that the State has necessary legal authority under State law to adopt and implement the revision, e.g., a ci tation of the appropriate State authority.

The authority for promulgating changes to the Texas State Implementation Plan is found in Chapter 382 of the Te xas Health and Safety Code

.

4. A copy is included of th e actual regulation or docum ent submitted for approval and incorporation by reference into the SIP in cluding an indication of the changes made to the existing approved plan where applicab le. The submittal shall be a copy of the official State regulation document signed, st amped, and dated by the appropriate State official indicating that it is fully enforceab le by the State. The effective date of the regulation document shall, whenever possible, be indicated in the document itself.

The September 25, 2003, submittal included a copy of the official State regulation document, signed, stamped, and dated by R obert J. Huston, Chairman of the Texas

Natural Resource Conservation Commission

.

### 5. Evidence is included that the State followe d all the procedural requirements of its

laws and/or its constitution in the conducting and completing the adoption/issuance of the plan.

The authority for promulgating changes to the Texas State Implementation Plan is found in the Texas Clean Air Act, Chapter 382 of the Texas Health and Safety Code

.

6. Evidence is included that public noti ce was given of the proposed changes consistent with the procedures approved by EPA, including the date of publication of such notice, (e.g., notarized or certified copies of a ny public notices published in newspapers). (The notice should be at le ast 30 days prior to the public hearing(s).

Notices of public hearing were publishe d on March 23, 2003 in the Fort Worth StarTelegram and March 24, 2003 in the Aus tin American Statesman and the Houston

Chronicle

.

7. A certification is included indicating that public hearin g(s) was/were held in accordance with the information provided in th e public notice(s) and the State's laws and constitution, if applicable.

The order adopting the new and amended se ction to 30 TAC Chapter 116 provided evidence that the public hearing was conduc ted pursuant to Texas Health and Safety Code §382.017 and §51.102.

8. A compilation of public comments a nd the State's response is included.

The SIP submittal package did include a compilation of public comments and the State’s responses. The TCEQ received 7 written comments and no oral comments from the public hearing

.

Technical Support (2.2)

The State should include the following techni cal information in its SIP revision request package.

1. Identification of all regu lated pollutants affected by the revision is included.

This is not applicable to the SIP revision under review. This SIP revision addresses the Application Review Sc hedule under Chapter 116.

2. Identification of the locations of affected sources including the EPA attainment/nonattainment design ation of the locations and th e status of the attainment plan for the affected area(s) is included.

This SIP revision applies to new construction and major modifications statewide.

### 3. Quantification of the changes in SIP allowable emissions from the affected sources is included. (Examples include estima tes of changes in current actual emissions from affected sources and/or, where appropr iate, quantification of changes in actual emissions from affected sources through calcu lations of the differences between certain

baseline levels and allowable emissions an ticipated if the revi sions were approved.)

Quantification of the changes in SIP allowable em issions from the affected sources is not applicable to this SIP revision.

4. Demonstration is included that the NAAQS/PSD increments/RFP demonstration and visibility as applicable would be pr otected if the revision were approved and implemented.

The SIP submittal does include revisions to the PSD and NSR permitting programs. The State’s response to comments addressed con cerns about the protection of the NAAQS and PSD increments associated with the proposed SIP revisions. However, the state did not

include a demonstration.

5. FOR REDESIGNATIONS: a. Is there a fully approved maintenan ce plan for the primary ambient air quality standards for at least 10 years as requ ired by §175A of the Clean Air Act?

Not applicable

.

b. Are contingency measures included?

Not applicable

.

6. Modeling information, if applicable, is required to support the propose revision.

Modeling information is not nece ssary to support the SIP revision

.

7. Evidence is included where necessary, that emission limitations are based on continuous emission reduction technology (e.g., add-on controls, industrial/process equipment designs, reformulated materials, etc.).

Evidence of emission limitations based on CEM technology is not applicable

.

8. Evidence is included indicating that a SI P revision contains emission limitations, work practice standards, and recordkeepi ng/reporting requirements to ensure stated

emission levels.

### Enforceability is determined on a case-b y-case basis in ea ch individual permit

.

9. Compliance/enforcement strategies including how compliance will be determined in practice (including at what frequency).

Determination of compliance is specified on a case-by-case basis in each individual permit

.

10. As appropriate, special economic and tec hnological jus tifications are included per applicable EPA policies or an explanation why such justificati ons are not necessary should be included. For example, requests for alternative RACT may require such justification.

These justifications are not n ecessary for this SIP revision

.

The SIP submittal of Ru le Log No.: 2003-003-116-AI meets the completeness

criteria.

### SIP Completeness Checklist

Rule Log No.: 2007-023-116-PR

When preparing a SIP revision request, the SIP reviewer should go through this list to help identify that the package submitted to EPA is complete. States can use the check list to assure SIP submittals meet Appendix V criteria.

Administrative Materials (2.1)

1. The package is sent with a formal submitta l letter from the Governor or his or her designee requesting EPA’s approval of the revision.

The SIP revision was submitted by a letter fr om Buddy Garcia, Chairman of the Texas Commission on Environmental Quality, da ted January 24, 2008. Governor Rick Perry designated that the Chairman of the Texa s Commission on Environmental Quality would be his designee for SIP submittals in a letter dated May 21, 2002

.

2 Evidence is included that the State has a dopted the revision in the State code or body of regulations, or that the State has i ssued the permit, orde r, consent agreement (hereafter document) in final form. This ev idence would include the date of adoption or

final issuance and the effective date of revi sion, if different from adoption/issuance date.

The revisions were adopted by the Texa s Commission on Environmental Quality on December 19, 2008 and became effective January 10, 2008

.

3. Evidence is included that the State has necessary legal authority under State law to adopt and implement the revision, e.g., a ci tation of the appropriate State authority.

The authority for promulgating changes to th e Texas State Implementation Plan, Chapter 116 section 114 – Application Review Schedul e is found in Chapter 382 of the Texas Health and Safety Code

.

4. A copy is included of th e actual regulation or docum ent submitted for approval and incorporation by reference into the SIP in cluding an indication of the changes made to the existing approved plan where applicab le. The submittal shall be a copy of the official State regulation document signed, st amped, and dated by the appropriate State official indicating that it is fully enforceab le by the State. The effective date of the regulation document shall, whenever possible, be indicated in the document itself.

The January 24, 2008 submittal included a copy of the official State regulation document, signed, stamped, and dated by Buddy Garcia, Chairman of the Texas Commission on Environmental Quality

.

### 5. Evidence is included that the State followe d all the procedural requirements of its

laws and/or its constitution in the conducting and completing the adoption/issuance of the plan.

The authority for promulgating changes to the Texas State Implementation Plan is found in the Texas Clean Air Act, Chapter 382 of the Texas Health and Safety Code

.

6. Evidence is included that public noti ce was given of the proposed changes consistent with the procedures approved by EPA, including the date of publication of such notice, (e.g., notarized or certified copies of a ny public notices published in newspapers). (The notice should be at le ast 30 days prior to the public hearing(s).

Notices of public hearing were published on August 23, 2007 in the Austin American – Statesman, August 24, 2007 in the Fort Wort h Star – Telegram and August 24, 2007 in

the Houston Chronicle

.

7. A certification is included indicating that public hearin g(s) was/were held in accordance with the information provided in th e public notice(s) and the State's laws and constitution, if applicable.

A public hearing for the revised sections to 30 TAC Chapter 116.114 was held September 24, 2007 and was conducted pursuant to Texas Health and Safety Code §382.017 and 40 CFR §51.102.

8. A compilation of public comments a nd the State's response is included.

The SIP submittal package did include a compilation of public comments and the State’s responses. The TCEQ received written comme nts from the following: City of Dallas and City of Houston, Clean Coal Technology F oundation of Texas, Jackson Walker, L.L.P. on behalf of the Gulf Coast Lignite Coalition, Texas Commission on Environmental Quality Office of Public Interest Counsel, Texa s Mining and Reclamation Association, and EPA Region 6.

In general, most of the written comments received by TCEQ were supportive of the proposed amendment concerning the de adlines for ACEP permit applications

.

Technical Support (2.2)

The State should include the following techni cal information in its SIP revision request package.

1. Identification of all regu lated pollutants affected by the revision is included.

This is not applicable to the SIP revision under review. This SIP revision addresses the Application Review Schedule for the NS R and PSD permitting programs under Chapter

116

.

### 2. Identification of the locations of affected sources including the EPA attainment/nonattainment design ation of the locations and th e status of the attainment plan for the affected area(s) is included.

This SIP revision applies to new construction and major modifications statewide

.

3. Quantification of the changes in SIP allowable emissions from the affected sources is included. (Examples include estima tes of changes in current actual emissions from affected sources and/or, where appropr iate, quantification of changes in actual emissions from affected sources through calcu lations of the differences between certain

baseline levels and allowable emissions an ticipated if the revi sions were approved.)

Quantification of the changes in SIP allowable em issions from the affected sources is not applicable to this SIP revision

.

4. Demonstration is included that the NAAQS/PSD increments/RFP demonstration and visibility as applicable would be pr otected if the revision were approved and implemented.

The SIP submittal does include revisions to the PSD and NSR permitting programs. However, the SIP revision only implements the deadlines for TCEQ’s review of ACEP applications. The rule does not add or re move any requirements that would adversely affect the NAAQS and PSD increments or visibility

.

5. FOR REDESIGNATIONS: a. Is there a fully approved maintenan ce plan for the primary ambient air quality standards for at least 10 years as requ ired by §175A of the Clean Air Act?

Not applicable

.

b. Are contingency measures included?

Not applicable

.

6. Modeling information, if applicable, is required to support the propose revision.

Modeling information is not nece ssary to support the SIP revision

.

7. Evidence is included where necessary, that emission limitations are based on continuous emission reduction technology (e.g., add-on controls, industrial/process equipment designs, reformulated materials, etc.).

### Evidence of emission limitations based on CEM technology is not applicable

.

8. Evidence is included indicating that a SI P revision contains emission limitations, work practice standards, and recordkeepi ng/reporting requirements to ensure stated

emission levels.

Enforceability is determined on a case-b y-case basis in ea ch individual permit

.

9. Compliance/enforcement strategies including how compliance will be determined in practice (including at what frequency).

Determination of compliance is specified on a case-by-case basis in each individual permit

.

10. As appropriate, special economic and tec hnological jus tifications are included per applicable EPA policies or an explanation why such justificati ons are not necessary should be included. For example, requests for alternative RACT may require such justification.

These justifications are not n ecessary for this SIP revision

.

The SIP submittal of Rule Log No.: 2007-023-116-PR meet s the completeness

criteria.

### Appendix B. Evaluation of the September 25, 2003 and January 24, 2008 SIP submittals with respect to the requirements of 40 CFR Part 51

Requirements for the preparation, adoption, a nd submittal of implementation plans can be

found in 40 CFR Part 51. The revisions to Chapter 116.114 –Application Review Schedule were evaluated against the applicable requirements in Part 51. The analysis is

included in Table 1 below.

Table 1: Analysis of Part 51 Requirements

Part 51-Requirements for Preparation, Adoption, and Submittal of Implementation Plans §116.114 Application Review

Schedule

Submitted 9/25/03 §116.114 Application Review

Schedule

Submitted 1/24/08 Subpart A – Emission Inventory Reporting Requirements Requirements found in Part 51 Subpart A are not applicable to

the section under review in this

document. The revisions to §116.114 provides for the voiding of an application of a permit or permit amendment in

the event of deficient information supplied with the application and are not

concerned with emission inventory reporting requirements for TCEQ. Requirements found in Part 51 Subpart A are not applicable to

the section under review in this

document. The revisions to §116.114 implements the requirements of House Bill 3732, 80 th Legislature (2007), and Texas Health and Safety Code, §382.0566, concerning the specific deadlines for review and issuance of air permit for Advanced Clean Energy Projects. Subpart B – E [Reserved] Not Applicable Not Applicable Subpart F – Procedural Requirements
§51.100 Definitions §51.100 is not applicable to the §116.114 under review in this

TSD. No Change

§51.101 Stipulations §51.101 is not applicable to the §116.114 under review in this

TSD. No Change

§51.102 Public Hearings

• States must conduct one or more public hearings;

• Public hearings will only

be held after reasonable notice, given at least 30 days prior to the date of the hearing; and

• The state must submit with

the revision a certification that the hearing was held

in accordance with this

section. Rule Log No 2003-003-116-AI

• TCEQ held a public hearing

on this rule package in Austin, Texas on April 24,

2003.

• The public hearing was held

after reasonable notice was given. TCEQ published notice of the public hearing in the following newspapers on

the dates listed below for this rule package:

• Austin American Statesman

–March 24, 2003;

• Fort Worth Star Telegram –

March 23, 2003;

• Houston Chronicle – March

24, 2003. Rule Log No 2007-023-116-PR

• TCEQ held a public hearing

on this rule package in Austin, Texas on September 24, 2007.

• The public hearing was held

after reasonable notice was given. TCEQ published notice of the public hearing in the following newspapers on

the dates listed below for this rule package:

• Austin AmericanStatesman – August 23,

2007

• Fort Worth Star Telegram

– August 24, 2007;

• Houston Chronicle –• Unable to locate the certification that the public hearings were held in accordance with §51.102. August 24, 2007

• Unable to locate the

certification that the public hearings were held in accordance with §51.102 §51.103 Submission of plans, preliminary review of plans

• The state makes an official plan submission to EPA only when the submission

conforms to the requirements of Part 51, Appendix V

• The state delivers 5 copies of the plan with a letter giving notice of the action to the EPA regional office. The rule package meets the requirements for completeness. The rule package meets the requirements for completeness.

§51.104 Revisions

• States may revise the plan

from time to time

• EPA will approve revisions only after appropriate public hearing requirements have been
met;

• Revisions must be

submitted in accordance with §51.103. Robert Huston, Chairman of the TCEQ, submitted the Chapter 116 revisions on September 30,

2003 as a SIP revision. Buddy Garcia, Chairman of the TCEQ submitted Chapter 116 revisions on January 24, 2008

as a SIP revision.

Subpart G – Control Strategy Requirements found in 51, Subpart G are not applicable to

the section under review in this

document. The revisions to §116.114 provides for the voiding of an application of a permit or permit amendment in

the event of deficient information supplied with the application and is not concerned with control strategies necessary to attain or maintain NAAQS. Requirements found in 51, Subpart G are not applicable to

the section under review in this

document. The revisions to §116.114 implements the requirements of House Bill 3732, 80 th Legislature (2007), and Texas Health and Safety Code, §382.0566, concerning the specific deadlines for review and issuance of air permit for Advanced Clean Energy Projects. Subpart H – Prevention of Air Pollution Emergency Episodes Requirements found in 51, Subpart H are not applicable to

the section under review in this

document. The revisions to §116.114 provides procedures for the voiding of an application of a permit or permit

amendment in the event of deficient information supplied with the application and is not concerned with air pollution emergency episode plans. Requirements found in 51, Subpart H are not applicable to

the section under review in this

document. The revisions to §116.114 implements the requirements of House Bill 3732, 80 th Legislature (2007), and Texas Health and Safety Code, §382.0566, concerning the specific deadlines for review and issuance of air permit for Advanced Clean Energy Projects. Subpart I – Review of New Sourcesand Modifications §51.160 Legally Enforceable

Procedures EPA has approved the

nonattainment and PSD portions of the TCEQ permitting program as sufficient

to determine whether the proposed construction or

modification results in a violation of the control strategy

and/or attainment or maintenance of the NAAQS. Therefore, TCEQ has the necessary legal authority to implement and enforce the permit revision procedures in

accordance with the requirements of the CAA. No Change

§51.161 Public availability of

information The TCEQ provided the public the opportunity to participate in stakeholder meetings in the rulemaking development process, and the public received comment periods on the proposed plan. No Change

§51.162 Identification of responsible agency The Texas SIP identifies the

Texas Commission on Environmental Quality (TCEQ) as the organization that will develop, implement, and

enforce the SIP. No Change

§51.163 Administrative Procedures Texas enforcement provisions are not typically included in

individual rules but are separately codified. TCEQ has the necessary legal authority to implement and enforce the permit revision procedures in

accordance with the requirements of the CAA. No Change

§51.164 Stack Height Requirements Requirements found in §51.164 are not applicable to the

sections under review in this

document. No Change

§51.165 Permit Requirements The TCEQ Program for the Control of Air Pollution by

Permits for New Construction or Modification (Chapter 116 – PSD/NNSR Review) has been previously approved by EPA as addressing all requirements of §51.165. The revision to the SIP – §116.114 does not substantively change our determination that the TCEQ Program for the Control of Air Pollution by Permits for New No ChangeConstruction or Modification addresses the requirements of §51.165. §51.166 Prevention of Significant Deterioration of Air Quality The TCEQ Program for the Control of Air Pollution by

Permits for New Construction or Modification (Chapter 116 – PSD/NNSR Review) has been previously approved by EPA as addressing all requirements of §51.166. The revision to the SIP – §116.114 does not substantively change our determination that the TCEQ Program for the Control of Air Pollution by Permits for New

Construction or Modification addresses the requirements of §51.166. No Change

Subpart J – Ambient Air Quality

Surveillance Requirements found in 51, Subpart J are not applicable to

the sections under review in this

document. No Change

Subpart K – Source Surveillance Requirements found in 51, Subpart K are not applicable to

the sections under review in this

document. No Change

Subpart L – Legal Authority The revisions to Chapter 116 were developed and submitted

in accordance with the Texas Clean Air Act, Chapter 382 of the Texas Health and Safety

Code. The Texas Health and Safety Code and the enforcement provisions in the Texas Water Code provide TCEQ the necessary legal authority to implement the SIP. No Change

Subpart M – Intergovernmental

Consultation Requirements found in 51, Subpart M are not applicable to

the section under review in this

document. No Change

Subpart N – Compliance Schedule Requirements found in 51, Subpart N are not applicable to

the sections under review in this

document. No Change

Subpart O – Miscellaneous Plan Content Requirements

• Each plan must include a description of resources

available to the State at the

date of the submittal of the plan and during the next 5-

years.

• Copies of all rules and • During the development of the Chapter 116 SIP revisions, the TCEQ

determined that their fiscal and manpower resources are adequate and will not be adversely affected through the implementation of the

revisions to the New Source No Changeregulations that are necessary to attain and maintain the NAAQS must

be submitted.

• Each plan must provide for public notification when a

standard has been violated. Review Permitting Program. This analysis is documented in the preamble to the proposed and final rulemakings.

• The revisions to § 116.114 do

not establish new emission limits or control strategies, therefore it is not necessary that a copy of all rules and regulations related to attaining or maintaining the NAAQS be submitted.

• Additionally, while

permitting procedures for major sources and

modifications are contained in §116.114, the revisions in

this SIP submittal do not revise the public notice aspects of the permit programs. Therefore it is not necessary for this SIP

submittal to establish procedures whereby the public will be notified of NAAQS violations. Subpart P- Protection of Visibility The §116.114 revisions are not submitted as part of Texas’ plan to protect visibility. No Change

Subpart Q – Reports The §116.114 revisions do not revise the existing reporting requirements for the emission inventory in the Texas SIP. No Change

Subpart R – Extensions The §116.114 revisions are not a request for an 18-month

extension. No Change

Subpart S – Inspection/Maintenance Program Requirements Requirements found in 51, Subpart S are not applicable to

the section under review in this

document. No Change

Subpart T – Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Developed, Funded, or Approved Under Title 23 U.S.C. or

the Federal Transit Laws The §116.114 revisions do not interfere with or change the transportation conformity budgets developed for each

nonattainment and maintenance area pursuant to Subpart T. No Change

Subpart U – Economic Incentive Programs Requirements found in 51 Subpart U are not applicable to

the sections under review in this document. Subpart U establishes requirements for statutorily mandated EIPs. No Change

Subpart W – Determining Conformity of General Federal The §116.114 revisions do not change or modify the Texas No ChangeActions to State or Federal Implementation Plans procedures used to determine conformity of federal actions, consistent with subpart W. Subpart X – Provisions for Implementation of 8-Hr Ozone NAAQS Requirements found in 51 Subpart X are for the implementation of the 8-hour ozone NAAQS. The §116.114 revisions do not change the implementation of the 8-hour ozone NAAQS. No Change

Subpart Y – Mitigation Requirements The §116.114 revisions do not create procedures by which Texas could exclude air quality data due to exceptional events. No Change

Subpart Z – Provisions for Implementation of PM2.5 National Ambient Air Quality Standards Requirements found in 51 Subpart Z are for the implementation of the PM2.5 NAAQS. The §116.114

revisions do not establish procedures for implementing the PM2.5 NAAQS. No Change

### Appendix C. Evaluation of the Se ptember 25, 2003 and January 24, 2008 SIP Submittals with respect to sectio n 110(l) of the Clean Air Act.

Section 110(l) of the Clean Air Act states:

Each revision to an implementation plan s ubmitted by a State under this Act shall be adopted by such State after re asonable notice and public hearing. The Administrator shall not approve a revi sion of a plan if the revision would interfere with any applicable requirem ent concerning attainment and reasonable further progress (as defined in section 171), or any other applicable requirement of this Act.

Thus, under section 110(l), this SIP revision must not interfere with attainment or reasonable further progress or any other applicable requirement of the Act.

In this review, the revisions to section 116.114, Application Review Schedule, that were submitted to EPA on September 25, 2003 and January 24, 2008 were only included in this analysis. The provisions submitted on September 25, 2003 amend section 116.114 to state that an application for a permit or pe rmit amendment will be voided in the event deficient information that was supplied with the application was not corrected. TCEQ

also submitted a revision to section 116.114 to implement provisions of House Bill (HB) 3732 and Texas Health and Safety Code (THSC), section 382.0566 on January 24, 2008. The reviewed revisions to the Application Review Schedule provisions will not interfere with attainment or reasonable further progre ss or any other applicab le requirement of the Act because the revisions update and cl arify the existing section 116.114. These

revisions are non-substantive and will not interfere with the SIP- approved functionality of the Application Review Schedule which has already been demonstrated to be consistent with section 110(l) th rough our September 18, 2002 approval.Appendix D. Review of Proposed Revisions against the SIP Approved Regulations§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(a) Review schedule. Theexecutive director shall reviewpermit applications in accordancewith the following.No ChangeNo ChangeNo ChangeNo Action(1) Notice of completion ordeficiency. The executivedirector shall mail writtennotification informing theapplicant that the application iscomplete or that it is deficientwithin 90 days ofreceipt of theapplication for a new permit, oramendment to a permit or specialpermit.No Change No Change No Change No Action(A) If the application is deficient,the notification must state:No Change No Change No Change No Action(i) the additional informationrequired; andNo Change No Change No Change No Action(ii) the intent of the executivedirector to void the application ifthe information for a completeapplication is not submitted.No ChangeNo ChangeNo ChangeNo Action(B) Additional information maybe requested within 60 days ofreceipt of the informationprovided in response to thedeficiency notification.No ChangeNo ChangeNo ChangeNo Action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(2) Decision to approve ordisapprove the application. Theexecutive director shall mailwritten notice to the applicant ofhis decision to approve or notapprove the application. If theapplicant has provided publicnotification as required by theexecutive director, and norequests for public hearing orpublic meeting on theproposedfacility have been received, theexecutive director shall sendnotice within:(2) Preliminary decision toapprove or disapprove theapplication. The executivedirector shall conduct a technicalreview and send written notice tothe applicant of the preliminarydecision to approve or notapprove the application within180 days from receipt of acompleted permit application or150 days from receipt of acompleted permit amendment. Ifthe applicant has provided Noticeof Receipt of Application andIntent to Obtain Permit publicnotification as required by theexecutive director under Chapter39 of this title (relating to PublicNotice), one of the following shallapply:No Change No Change No Action(A) 180 days of receipt of acompleted permit application; or(A) if comments are received onthe proposed facility and repliedto by the executive director inaccordance with §39.420 of thistitle (relating to Transmittal of theExecutive Director’s Response toComments and Decision) and§55.156 of this title (relating toPublic Comment Processing); andNo Change No Change No Action(B) 150 days of receipt of apermit amendment or specialpermit amendment.(B) if no requests for publichearing or public meeting on theproposed facility have beenreceived or the application isotherwise exempt underNo ChangeNo ChangeNo Action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08§39.419(e) of this title (relating toNotice of Application andPreliminary Decision), theexecutive director shall send acopy of the Preliminary Decisionto the applicant; or(C) if Notice of Application andPreliminary Decision is requiredunder §39.419(d) of this title(relating to Notice of Applicationand Preliminary Decision), theexecutive director shall authorizethis notice and send copies to theapplicant and all other persons arerequired under §39.602 of thistitle (relating to Mailed Notice).No ChangeNo ChangeNo Action(3) Refund of permit fee No Change(3) Refund of permit fee.(3) Review schedule for AdvancedClean Energy Projects. In additionto the applicable requirements anddeadlines specified in subsections(a)-(c) of this section, thefollowing deadlines apply topermit applications for advancedclean energy projects as defined inTexas Health and Safety Code,§382.003, Definitions:Approvalproposed withthis action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(A) If the time limits provided inthis section to process anapplication are exceeded, theapplicant may appeal in writingto the executive director for arefund of the permit fee.No Change (A) If the time limits provided inthis section to process anapplication are exceeded, theapplicant may appeal in writingto the executive director for arefund of the permit fee.(A) As authorized by federal law,not later than nine months afterthe executive director declares anapplication for a permit under thischapter for an advanced cleanenergy project to beadministratively complete, theexecutive director shall completeits technical review of theapplication.Approvalproposed withthis action(B) The permit fee shall bereimbursed if it is determined bythe executive director that thespecified period was exceededwithout good cause, as providedin the Texas Civil Statutes,Article 6252-13b.1, §3.No Change(B) The permit fee shall bereimbursed if it is determined bythe executive director that thespecified period was exceededwithout good cause, as providedin Texas Civil Statutes, Article6252-13b.1, §3.(B) The commission shall issue afinal order issuing or denying thepermit not later than nine monthsafter the executive directordeclares the applicationtechnically complete. Thecommission may extend thisdeadline up to three months if itdetermines that the number ofcomplex pending applications forpermits under this chapter willprevent the commission frommeeting this deadline withoutcreating an extraordinary burdenon the resources of thecommission.Approvalproposed withthis action(4) Refund of permit feeApprovalproposed withthis action.Moved froma(3)§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(A) If the time limits provided inthis section to process anapplication are exceeded, theapplicant may appeal in writing tothe executive director for a refundof the permit fee.Aprovalproposed withthis action.Moved froma(3)(A)(B) The permit fee shall bereimbursed if it is determined bythe executive director that thespecified period was exceededwithout good cause, as provided inTexas Civil Statutes, Article 6252-13b.1, §3.Approvalproposed withthis action.Moved froma(3)(B).(b) Voiding of deficientapplicationNo Change No Change No Change No Action(1) An applicant shall make agood faith effort to submit, in atimely manner, adequateinformation which demonstratesthat the requirements forobtaining a permit or permitamendment are met in responseto any deficiency notificationissued by the executive directorunder the provisions of thissection, or §116.131of this title(relating to Public NotificationRequirements).(1) An applicant shall make agood faith effort to submit, in atimely manner, adequateinformation which demonstratesthat the requirements forobtaining a permit or permitamendment are met in response toany deficiency notification issuedby the executive director underthe provisions of this section, orChapter 39of this title (relating toPublic Notice).No Change No Change No Action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(2) If an applicant fails to makesuch good faith effort, theexecutive director shall void theapplication and notify theapplicant. If the application isresubmitted within six months ofthe voidance, it shall be exemptfrom the requirements of§116.140 of this title (relating toApplicability).(2) If an applicant fails to makesuch good faith effort, theexecutive director shall void theapplication and notify theapplicant. If theapplication isresubmittedwithin six months ofthe voidance, it shall be exemptfrom the requirements of§116.140 of this title (relating toApplicability).(2) If an applicant fails to makesuch good faith effort, theexecutive director shall void theapplication and notify theapplicant of the voidance andthe remaining deficiencies in thevoided application. If a newapplication is submittedwithinsix months of the voidance, itshall meet the requirements of§116.111 of this title (relating toGeneral Application) but willbeexempt from the requirements of§116.140 of this title (relating toApplicability).(2) If an applicant fails to makesuch good faith effort after twowritten notices of deficiency, theexecutive director shall void theapplication and notify theapplicant of thevoidance and theremaining deficiencies in thevoided application. If a newapplication is submitted within sixmonths of the voidance, it shallmeet the requirements of§116.111 of this title (relating toGeneral Application) but will beexempt from the requirements of§116.140 of this title (relating toApplicability).Approval withthis action.(c) Notification of executivedirector’s decision.No Change No Change No Action(1) Notification to Applicant. Theexecutive director or the chiefclerk shall send to the applicantthe decision to approve or notapprove the application if:No ChangeNo ChangeNo Action(A) no timely requests forreconsideration, contested casehearing, or public meeting on theproposed facility have beenreceived; orNo ChangeNo ChangeNo Action(B) if hearing requests have beenreceived and withdrawn beforethe executive director’sPreliminary Decision; orNo ChangeNo ChangeNo Action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(C) the application is for anyamendment, modification, orrenewal application that wouldnot result in an increase inallowable emissions and wouldnot result in the emission of an aircontaminant not previouslyemitted; andNo Change No Change No Action(D) the applicant has satisfied allpublic notification requirementsof Chapter 39 of this title.No ChangeNo ChangeNo Action§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08(2) Notification to commenters.Except for initial issuance ofvoluntary emission reductionpermits and electric generatingfacility permits, personssubmitting written commentsunder Chapter 39 of this title shallbe sent the executive director’sfinal action and given anexplanation of the opportunity tofile a motion under §50.139 ofthis title (relating to Motion toOverturn Executive Director’sDecision) at the same time thatthe applicant is notified. If thenumber of interested persons whohave requested notification makesit impracticable for thecommission to notify thosepersons by mail, the commissionshall notify those persons bypublication using the methodprescribed by §382.031(a) of theTexas Health and Safety Code.No ChangeNo ChangeNo Action(3) Time Limits. The executivedirector shall send notification offinal action within:No ChangeNo ChangeNo Action(A) one year after receipt of acomplete PSDor nonattainmentpermit application, or a completepermit application for an actionunder Subchapter C of thischapter;(A) one year after receipt of acomplete prevention ofsignificant deteriorationornonattainment permitapplication, or a completepermit application for an actionunder Subchapter C of thisNo ChangeNonsubstantivechange. Noaction.§116.114 – Application Review ScheduleCurrent SIPProposed LALDPending SIP RevisionsCommentsSubmitted 7/22/98Submitted 10/25/99Submitted 9/25/03Submitted 1/24/08chapter;(B) 180 days of receipt of acompleted permit or permitrenewal application; orNo Change No Change No Action(C) 150 days of receipt of a permitamendment or special permitamendment application.No Change No Change No Action