# TECHNICAL SUPPORT DOCUMENT

Revisions to the Texas St ate Implementation Plan 30 TAC Chapter 116 – Control of Air Polluti on by Permits for New Construction or Modification

Subchapter F – Standard Permits Section 116.601(a)(1) – Type s of Standard Permits Revisions submitted on January 3, 2000 and March 11, 2011

Subchapter F – Standard Permits Section 116.617 – State Pollution C ontrol Permit Standard Permit Submitted on February 1, 2006

Subchapter I – Electric F acility Generating Permits Section 116.911(a)(2) – Control Method Submitted on January 3, 2000

March 17, 2014

For Further Information Contact:

Rick Barrett, United States Environmental Pr otection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue Suite 12 00, Dallas, TX 75202-2733, (214) 665-7227

Adina Wiley, United States Environmental Prot ection Agency Region 6, Air Permits Section (6PD-R), 1445 Ross Avenue Suite 12 00, Dallas, TX 75202-2733, (214) 665-2115

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# Table of Contents

I. Executive Summary

.............................................................................................................................. 3

II. Summary of EPA’s Actions

.................................................................................................................. 4

III. Technical Review

............................................................................................................................ 10

A. Evaluation of Revisions to 30 TAC Secti on 116.601 – Types of Standard Permits

....................... 10

B. Evaluation of Revisions to 30 TAC Section 116.6 17 – State Pollution Control Standard Permit for Pollution Control Projects

....................................................................................................................... 22

C. Evaluation of Revisions to 30 TAC Section 116. 911(a)(2) – Control method for Grandfathered and Electing Electric Generating Facilities

............................................................................................. 32

IV. Conclusion

............................................................................................................................... ....... 38

Attachment A – The Non-Rule Standard Permit for Pollution Control Projects

........................................ 39

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# I. Executive Summary

This Technical Support Document (TSD) provide s EPA’s evaluation of submitted revisions to the Texas Minor New Source Review (NSR) Stat e Implementation Plan (SIP) specific to the Texas Standard Permits (SP) Program. EPA is re viewing three separate sections of the Texas Administrative Code submitted in four separa te revisions to the Texas SIP specifically addressing the establishment and use of the Rule Standard Permit under the Texas SP Program. First, this TSD will evaluate the expansion of the SP Program to include the Rule Standard Permit (Rule SIP) at 30 TAC Section 116.601(a)(1 ) as initially submitted on January 3, 2000, with revisions submitted March 11, 2011. Next, this TSD will evaluate a specific type of Rule SP, the Rule SP for Pollution Control Projects (Rule SP for PCP) at 30 TAC Section 116.617 as submitted on February 3, 2006. Finally, this TSD w ill address the use of the Rule SP for PCP for grandfathered and electing el ectric generating facilities provided at 30 TAC Section 116.911(a)(2) as submitted on January 3, 2000.

This review will determine if the revisions to th e Texas SIP specific to the Rule SP and the Rule SP for PCP submitted on January 3, 2000; Februa ry 1, 2006; and March 11, 2011 comply with the Clean Air Act and EPA’s regulations and guidance for Minor NSR.

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# II. Summary of EPA’s Actions

This TSD evaluates portions of four separate submittals to the Texas SIP. To assist the reader in understanding the scope of this analysis, we have prepared the following Tables. Table 1 identifies the specific sections that are evaluated in this TSD and acted on in the accompanying rulemaking at docket EPA-R06-OAR-2014-0191. Tabl e 2 identifies all s ections that were submitted as part of the four separate SIP submittals, and identifies where EPA has already addressed the other submitted revisions.

Table 1: Summary of the Individual Re visions to Each Section Evaluated

Section Title Date Submitted to EPA Adopted by State Comments

Chapter 116 Subchapter F Section 116.601 Types of Standard Permits January 3, 2000 December 16, 1999 New provision at 30 TAC Section 116.601(a)(1) establishes the Rule SP as one of two types of SP available in the Texas Minor NSR Program. March 11, 2011 February 9, 2011 Revisions to 30 TAC Section 116.601(a)(1) to

remove crossreferences from the definition of the Rule SP. Section 116.617 State Pollution Control Project Standard Permit February 1, 2006 January 11, 2006 Repeal and replacement of the Rule SP for PCP at 30 TAC Section 116.617. Subchapter I Section 116.911(a)(2) Control Method January 3, 2000 December 16, 1 999 Requires the use of the Rule SP for PCP at 30 TAC 116.617.

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### Table 2: Identification of Subm itted Provisions that are Not Part of this Final Action

Title of SIP Submittal Date Submitted to EPA Date of State Adoption Sections Not Affected by this Proposal (30 TAC) Reason for Severability

Air Permits, Phase I (SB 766) Rule LogNumber 99029A116-AI January 3, 2000 December 16, 1999 § 116.602. Issuance of Standard Permits Approved 11/14/2003. See 68 FR 64543. § 116.603. Public Participation in Issuance of Standard Permits. Approved 11/14/2003. See 68 FR 64543.

§ 116.604. Duration and Renewal of Registrations to Use Standard Permits. Approved 11/14/2003. See 68 FR 64543.

§ 116.605. Standard Permit Amendment and Revocation. Approved 11/14/2003. See 68 FR 64543. § 116.606. Delegation. Approved 11/14/2003. See 68 FR 64543. § 116.610. Applicability. Approved 11/14/2003. See 68 FR 64543. § 116.611 Registration to Use a Standard Permit. Approved 11/14/2003. See 68 FR 64543. § 116.614. Standard Permit Fee. Approved 11/14/2003. See 68 FR 64543. Electric Industry Restructuring (SB7) Rule Log No. 99033-116-AI January 3, 2000 December 16, 1999 § 101.330. Definitions. Approved 01/03/2011. See 76 FR 16. § 101.331. Applicability. Approved 01/03/2011. See 76 FR 16. § 101.332. General Provisions. Approved 01/03/2011. See 76 FR 16. § 101.333. Allocation of Allowances. Approved 01/03/2011. See 76 FR 16. § 101.334. Allowance Deductions. Approved 01/03/2011. See 76 FR 16. § 101.335. Allowance Banking and Trading. Approved 01/03/2011. See 76 FR 16. § 101.336. Emission Monitoring, Compliance Demonstration, and Reporting. Approved 01/03/2011. See 76 FR 16.

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### Table 2: Identification of Subm itted Provisions that are Not Part of this Final Action

Title of SIP Submittal Date Submitted to EPA Date of State Adoption Sections Not Affected by this Proposal (30 TAC) Reason for Severability

§ 101.337. El Paso Region. In a letter dated October 24, 2006, TCEQ stated the provisions in 30 TAC § 101.337 are state only and not before EPA for consideration as a revision to the SIP. § 116.18. Electric Generating Facility Permits Definitions. Approved 01/11/2011. See 76 FR 1525. § 116.910. Applicability. Approved 01/11/2011. See 76 FR 1525. § 116.911. Electric Generating Facility Permit Application. Approved 01/11/2011. See 76 FR 1525. With the exception of 30 TAC § 116.911(a)(2). § 116.912. Electric Generating Facilities. Approved 02/10/2011. See 76 FR 1525. § 116.913. General and Special Conditions. Approved 01/11/2011. See 76 FR 1525. § 116.914. Emissions Monitoring and Reporting Requirements. Approved 01/11/2011. See 76 FR 1525.

§ 116.916. Permits for Grandfathered and Electing Generating Facilities in El Paso County. Approved 01/11/2011. See 76 FR 1525.

§ 116.920. Public Participation for Initial Issuance. Approved 01/11/2011. See 76 FR 1525. § 116.921. Notice and Comment Hearings for Initial Issuance. Approved 01/11/2011. See 76 FR 1525.

§ 116.922. Notice of Final Action. Approved 01/11/2011. See 76 FR 1525.

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### Table 2: Identification of Subm itted Provisions that are Not Part of this Final Action

Title of SIP Submittal Date Submitted to EPA Date of State Adoption Sections Not Affected by this Proposal (30 TAC) Reason for Severability

§ 116.930. Modifications. Approved 01/11/2011. See 76 FR 1525. § 116.931 Renewal. Approved 01/11/2011. See 76 FR 1525. Federal New Source Review (NSR) Permit Rules Reform Rule Project No. 2005- 010-116-PR February 1, 2006 January 11, 2006 § 116.12. Nonattainment and Prevention of Significant Deterioration Review Definitions. Approved 10/25/2012. See 77 FR 65119.

§ 116.121. Actual to Projected Actual and Emissions Exclusion Test for Emissions Increases. Repealed by TCEQ in March 11, 2011, SIP Submittal.

§ 116.150. New Major Source or Major Modification in Ozone Nonattainment Area. Approved 10/25/2012. See 77 FR 65119.

§ 116.151. New Major Source or Major Modification in Nonattainment Area Other than Ozone. Approved 10/25/2012. See 77 FR 65119.

§ 116.160. Prevention of Significant Deterioration Requirements. Approved 09/15/2010. See 75 FR 55978.

§ 116.180. Applicability. Approved 10/25/2012. See 77 FR 65119.§ 116.182. Plantwide Applicability Limit Permit Application. Approved 10/25/2012. See 77 FR 65119.

§ 116.184. Application Review Schedule. Approved 10/25/2012. See 77 FR 65119. § 116.186. General and Special Conditions. Approved 10/25/2012. See 77 FR 65119.

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### Table 2: Identification of Subm itted Provisions that are Not Part of this Final Action

Title of SIP Submittal Date Submitted to EPA Date of State Adoption Sections Not Affected by this Proposal (30 TAC) Reason for Severability

§ 116.188. Plantwide Applicability Limit. Approved 10/25/2012. See 77 FR 65119. § 116.190. Federal Nonattainment and Prevention of Significant Deterioration Review. Approved 10/25/2012. See 77 FR 65119.

§ 116.192. Amendments and Alterations. Approved 10/25/2012. See 77 FR 65119. § 116.194. Public Notice and Comment. Approved 01/06/2014. See 79 FR 551. § 116.196. Renewal of a Plant-wide Applicability Limit Permit. Approved 10/25/2012. See 77 FR 65119.

§ 116.198. Expiration or Voidance. Approved 10/25/2012. See 77 FR 65119. § 116.400. Applicability. Returned to TCEQ on 06/29/2011 as outside the scope of the Texas SIP. § 116.402. Exclusions. Returned to TCEQ on 06/29/2011 as outside the scope of the Texas SIP. § 116.404. Application. Returned to TCEQ on 06/29/2011 as outside the scope of the Texas SIP. § 116.406. Public Notice Requirements. Returned to TCEQ on 06/29/2011 as outside the scope of the Texas SIP. § 116.610. Applicability. Approved 02/14/2014. See 78 FR 7762. § 116.610(d) returned to TCEQ on 06/29/2011 as outside the scope of the Texas SIP. § 116.1200. Applicability. Disapproved 09/26/2013. See 78 FR 59250.

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### Table 2: Identification of Subm itted Provisions that are Not Part of this Final Action

Title of SIP Submittal Date Submitted to EPA Date of State Adoption Sections Not Affected by this Proposal (30 TAC) Reason for Severability

New Source Review (NSR) Reform Rule Project No. 2010-008-116-PR March 11, 2011 February 9, 2011 § 116.12. Nonattainment and Prevention of Significant Deterioration Review Definitions. Approved 10/25/2012. See 77 FR 65119.

§ 116.115. General and Special Conditions. Approved 10/25/2012. See 77 FR 65119. § 116.127. Actual to Projected Actual for Emissions Exclusion Test for Emissions. Approved 10/25/2012. See 77 FR 65119.

§ 116.180. Applicability. Approved 10/25/2012. See 77 FR 65119.§ 116.182.Plantwide Applicability Limit Permit Applications. Approved 10/25/2012. See 77 FR 65119.

§ 116.186. General and Special Conditions. Approved 10/25/2012. See 77 FR 65119.§ 116.188. Plantwide Applicability Limit. Approved 10/25/2012. See 77 FR 65119. § 116.190. Federal Nonattainment and Prevention of Significant Deterioration Review. Approved 10/25/2012. See 77 FR 65119.

§ 116.192. Amendments and Alterations. Approved 10/25/2012. See 77 FR 65119.

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# III. Technical Review

A. Evaluation of Revisions to 30 TAC Section 116.601 – T ypes of Standard Permits

The Texas Standard Permits Program at 30 TAC Ch apter 116, Subchapter F, is a subset of the Texas Minor NSR Program. The Texas Standard Permit program began in 1994. 1 

### At this time, all standard permits were developed using the SIP development process pursuant to the Texas Government Code, Chapter 2001, Subchapter B. This process required the TCEQ to publish notice of the proposed revision to the Texas Ai r Code and Texas SIP, accept comment for 30 days on the proposed revision, and make a final adop tion of the regulation and submit to EPA for review and approval into the Texas SIP. To st reamline the process for development and issuance of SPs within the Texas Minor NSR Program , Texas Senate Bill (SB) 766 of the 76 th 

### Legislature, directed the TCEQ to develop an alternate process whereby the SP could be developed and implemented without a full SIP revision.

Pursuant to Texas SB 766, the Texas Natural Resource Conservation Commission (predecessor agency to the Texas Commission on Environmental Quality (TCEQ), hereafter referred to as the TCEQ), adopted and submitted as revisions to the Texas SIP new regulations for the adoption and implementation of SPs that created the two t ypes of SP that exist today in the Texas Minor NSR Program – the Rule SP and the Non-Rule SP. Specifically, on January 3, 2000, the TNRCC submitted as a revision to the Texas SIP a ne w provision at 30 TAC Section 116.601(a) which identified the two types of Standard Permits:

 New 30 TAC Section 116.601(a)(1) identified th ose Standard Permits that were adopted in accordance with Texas Government Code, Chapter 2001, Subchapter B (Rule Standard Permits). The TCEQ also identified the three Rule Standard Permits that had been promulgated by the TCEQ at that time – the Standard Permit for Pollution Control Projects at 30 TAC Section 116.617, the St andard Permit for Installation and/or Modification of Oil and Gas Facilities, and the Standard Permit for Municipal Solid Waste Landfills.

 New 30 TAC Section 116.601(a)(2) identified th ose Standard Permits that were adopted in accordance with 30 TAC Section 116.603 (rela ting to the Public Participation in Issuance of Standard Permits) (Non-Rule Standard Permits)

On November 14, 2003, EPA fully approved the N on-Rule Standard Permit (, including the identification of the Non-Rule Standard Permits at 30 TAC Sections 116. 601(a)(2)) provisions as part of the Texas Minor NSR a nd found that the Non-Rule SP pr ovisions satisfied the federal requirements for Minor NSR. 2 

### See 68 FR 64543. In this action we stated we were severing 30 TAC Section 116.601(a)(1) from our analysis and would address the submittal at a later date. Additionally, we took no action at that time on the pending su bmission of the three Rule Standard Permits – the Standard Permit for Po llution Control Projects at 30 TAC Section

1 30 TAC Chapter 116, Subchapter F, Sections 116.610 , 116.611, 116.614, and 116.617 were the initial Standard Permit Program provisions. These rules were adopted by the TNRCC on April 6, 1994 and published in the Texas Register on April 22, 1994.

2 The Texas Clean Air Act provides that the TCEQ may issue a standard permit for ‘‘new or existing similar facilities’’ if it is enfor ceable and compliance can be adequately monitored. See section 382.05195 of the TCAA.

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### 116.617, the Standard Permit for Installation and/or Modification of Oil and Gas Facilities, and the Standard Permit for Municipal Solid Waste Landfills.

EPA has taken no action to date on the identifica tion of the Rule Standard Permits at 30 TAC Section 116.601(a)(1) as initially submitted on Ja nuary 3, 2000. TCEQ submitted revisions to 30 TAC Section 116.601(a)(1) on March 11, 2011, to revise the identification of the Rule Standard Permits. The following table will review the initial adoption and the 2011 revision.

Table 3: Evaluation of Revi sions to 30 TAC Section 116.601

30 TAC Section 116.601. Types of Standard Permits SIP-approved by EPA on November 14, 2003. See 68 FR 66000. As adopted by the TCEQ on December 16, 1999. January 3, 2000 SIP Submittal Rule Log Number 99029A-116-AI March 11, 2011 Rule Log Number 2010- 008-116-PR EPA’s Evaluation

a) For the purposes of this chapter a standard permit is either: SIP-approved language. No change submitted. No change to the SIP approved language.

1. NOT IN SIP 1. One that was adopted by the commission in accordance with Texas Government Code, Chapter 2001, Subchapter B, into §§ 116.617, 116.620, and 116.621 of this title (relating to Standard Permits for Pollution Control Projects; Installation and/or Modification of Oil and Gas Facilities; and Municipal Solid Waste Landfills);

or 1. One that was adopted by the commission in accordance with Texas Government Code, Chapter 2001, Subchapter B, into this subchapter into §§ 116.617, 116.620, and 116.621 of this title (relating to Standard Permits for Pollution Control Projects; Installation and/or Modification of Oil and Gas Facilities; and Municipal Solid Waste Landfills); or The provision at 30 TAC Section 116.601(a)(1) as initially submitted on January 3, 2000, and revised on March 11, 2011, is approvable as consistent with the requirements of 40 CFR 51.160(a) and (b) and 51.163. This provision establishes that SP developed pursuant to the SIP-development process in the Texas Government Code (the Rule SP) is an approved type of Standard Permit in the Texas SIP.

The TCEQ on March 11, 2011 submitted a revision to delete the specifically identified Rule SPs and replace with the reference to “this subchapter”. The deletion of the specific mention of the Rule SPs at 30 TAC Sections 116.617, 116.620 and 116.621 is approvable. We note that if any Rule SP is developed pursuant

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### Table 3: Evaluation of Revi sions to 30 TAC Section 116.601

30 TAC Section 116.601. Types of Standard Permits SIP-approved by EPA on November 14, 2003. See 68 FR 66000. As adopted by the TCEQ on December 16, 1999. January 3, 2000 SIP Submittal Rule Log Number 99029A-116-AI March 11, 2011 Rule Log Number 2010- 008-116-PR EPA’s Evaluation

to the Texas Government Code the TCEQ would promulgate that new Rule SP into 30 TAC Chapter 116, Subchapter F –which is the same location as the deleted provision. Further, we note that inclusion of the specific section numbers is not necessary for rule clarity. On February 14, 2014, EPA SIP-approved the Oil and Gas Rule SP at 30 TAC Section 116.617. The TCEQ has repealed and withdrawn the Municipal Solid Waste Landfill SP from 30 TAC Section 116.621. EPA is currently proposing approval of the PCP Rule SP at 30 TAC Section 116.620. 2. One that is issued by the commission in accordance with § 116.603 of this title (relating to Public Participation in Issuance of Standard Permits). SIP-approved language. No change submitted. No change to the SIP approved language.

b) Any standard permit in this subchapter adopted by the commission shall remain in effect until it is repealed under the APA. If any adopted standard permit is repealed and replaced, SIP-approved language. No change submitted. No change to the SIP approved language.

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### Table 3: Evaluation of Revi sions to 30 TAC Section 116.601

30 TAC Section 116.601. Types of Standard Permits SIP-approved by EPA on November 14, 2003. See 68 FR 66000. As adopted by the TCEQ on December 16, 1999. January 3, 2000 SIP Submittal Rule Log Number 99029A-116-AI March 11, 2011 Rule Log Number 2010- 008-116-PR EPA’s Evaluation

facilities may continue to be authorized until the date of registration required by subsection (e) of this section. c) A registration to use a standard permit adopted by the commission in this subchapter shall be renewed by the applicant under the requirements of §116.604 of this title (relating to Duration and Renewal of Registrations to use Standard Permits) by the tenth anniversary of the date of the original registration. SIP-approved language. No change submitted. No change to the SIP approved language.

d) If a standard permit in this subchapter adopted by the commission is repealed and replaced, with no changes, by a standard permit issued by the commission, any existing registration to use the repealed standard permit will be automatically converted to a registration to use the new standard permit, if the facility continues to meet the requirements. An automatically converted registration SIP-approved language. No change submitted. No change to the SIP approved language.

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### Table 3: Evaluation of Revi sions to 30 TAC Section 116.601

30 TAC Section 116.601. Types of Standard Permits SIP-approved by EPA on November 14, 2003. See 68 FR 66000. As adopted by the TCEQ on December 16, 1999. January 3, 2000 SIP Submittal Rule Log Number 99029A-116-AI March 11, 2011 Rule Log Number 2010- 008-116-PR EPA’s Evaluation

to use a standard permit shall be renewed by the applicant under the requirements of §116.604 of this title by the tenth anniversary of the date of the new registration. e) If a standard permit adopted by the commission in this subchapter is repealed and replaced with a standard permit issued by the commission, and the requirements of the standard permit are changed in the

process, persons registered to use the repealed standard permit shall register to use the issued standard permit by the later of either the deadline established in the issued standard permit, or the tenth anniversary of the original registration. The commission shall notify, in writing, all persons registered to use the repealed standard permit of the date by which a new registration must be submitted. Persons not wishing to register for the issued standard permit shall SIP-approved language. No change submitted. No change to the SIP approved language.

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### Table 3: Evaluation of Revi sions to 30 TAC Section 116.601

30 TAC Section 116.601. Types of Standard Permits SIP-approved by EPA on November 14, 2003. See 68 FR 66000. As adopted by the TCEQ on December 16, 1999. January 3, 2000 SIP Submittal Rule Log Number 99029A-116-AI March 11, 2011 Rule Log Number 2010- 008-116-PR EPA’s Evaluation

have the option of applying for or qualifying for other applicable authorizations in this chapter or in Chapter 106 of this title (relating to Exemptions from Permitting).



### The addition of 30 TAC Section 116.601(a)(1) establishes the Rule SP as one of two types of SP available in the Texas SP program. Because the Rule SP at 30 TAC Section 116.601(a)(1) is part of the Texas SP Program, it is by extension a component of the Texas Minor NSR program. Following in Tables 4 and 5 is an analysis of how the Rule SP satisfies the requirements for Minor NSR under 40 CFR 51.160 and 51.161.

Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures a) Each plan must set forth legally enforceable procedures that enable the State or local agency to determine whether the construction or modification of a facility, building, structure or installation, or combination of these will result in – 1) A violation of applicable portions of the control strategy; or 2) Interference with attainment or maintenance of a national standard in the State in which the proposed source (or modification) is located or in a neighboring State. The SIP-approved general conditions for SP at 30 TAC Section 116.615 apply to all SP, including the Rule SP developed under 30 TAC Section 116.601(a)(1).

Therefore, the requiremen ts for 30 TAC Section 116.615(a)(1) that all “emissions from the facility, including dockside vessel emissions, must comply with all applicable rules and regulations of the commission adopted under Texas Health and Safety Code, Chapter 382, and with the intent of the Texas Clean Air Act (TCAA), including protection of health and property of the public” apply to the Rule SP and satisfy 40 CFR 51.160(a). b) Such procedures must include means by which the State or local agency resp onsible for final decision making on an application for approval to construct or modify will prevent construction or modification if – 1) It will result in a violation of applicable portions of the control strategy; or The SIP-approved general conditions for registrations to use a SP at 30 TAC Section 116.611 apply to all SP, including the Rule SP developed under 30 TAC Section 116.601(a)(1).

30 TAC Section 116.611 requires the following: a) If required, registration to use a standard permit shall be sent by certified mail, return receipt

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### Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures 2) It will interfere with the attainment or maintenance of a national standard. requested, or hand delivered to the executive director, the appropri ate commission regional office, and any local ai r pollution program with jurisdiction, before a standard permit can be used. The registration must be submitted on the required form and must document compliance with the requirements of this section, including, but not limited to: 1) the basis of emission estimates; 2) quantification of all emission increases and decreases associated with the project being registered; 3) sufficient information as may be necessary to demonstrate that the project will comply with §116.610(b) of this title (relating to Applicability); 4) information that describes efforts to be taken to minimize any collateral emissions increases that will result from the project; 5) a description of the project and related process; and 6) a description of any equipment being installed. b) Construction may begin any time after receipt of written notification from the executive director that there are no objections or 45 days after receipt by the executive director of the registration, whichever occurs first, except where a different time period is specified for a particular standard permit.

Therefore, the Rule SP will satisfy the requirements of 40 CFR 51.160(b) through the application of 30 TAC Section 116.611. c) The procedures must provide for the submission, by the owner or operator of the building, facility, structure, or installation to be constructed or modified of such information on – 1) The nature and amounts of emissions to be emitted by it or emitted by associated mobile

sources; 2) The location, design, construction, and operation of such facility, building, structure, or installation as may be necessary to permit the State or local agency to make the determination referred to in paragraph (a) of this section. The SIP-approved provisions at 30 TAC Section 116.611 – Registration to Use a Standard Permit apply to the Rule SP.

Therefore, any registration to use a Rule SP developed under 30 TAC Section 116.601(a)(1) will comply with the following provisions of 30 TAC Section 116.611:

a) If required, registration to use a standard permit shall be sent by certified mail, return receipt requested, or hand delivered to the executive director, the appropri ate commission regional office, and any local ai r pollution program with jurisdiction, before a standard permit can be used. The registration must be submitted on the required form and must document compliance with the requirements of this section, including, but not limited to:

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### Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures 1) the basis of emission estimates; 2) quantification of all emission increases and decreases associated with the project being registered; 3) sufficient information as may be necessary to demonstrate that the project will comply with §116.610(b) of this title (relating to Applicability); 4) information that describes efforts to be taken to minimize any collateral emissions increases that will result from the project; 5) a description of the project and related process; and 6) a description of any equipment being installed.

The Rule SP at 30 TAC Section 116.601(a)(1) satisfies the requirements of 40 CFR 51.160(c) through the application of SIP-approved 30 TAC Section 116.611(a). d) The procedures must provide that approval of any construction or modification must not affect the responsibility to the owner or operator to comply with applicable portions of the control strategy. The SIP-approved provisions at 30 TAC Section 116.615 establish general conditions applicable to all SP, including to the Rule SP. Specifically, 30 TAC Section 116.615(10) states the following:

30 TAC Section 116.615. General Conditions. The following general conditions are applicable to holders of standard permits, but will not necessarily, be specifically stated within the standard permit document.

... 10) Compliance with rules. Registration of a standard permit by a standard permit applicant constitutes an acknowledgment and agre ement that the holder will comply with all rules, regulations, and orders of the commission issued in conformity with the TCAA and the conditions precedent to the claiming of the standard permit. If more than one state or federal rule or regulation or permit condition are applicable, the most stringent limit or condition shall govern. Acceptance includes consent to the entrance of commission employees and designated representatives of any air pollution control agency having jurisdiction into the permitted premises at reasonable times to investigate conditions relating to the emission or concentration of air contaminants, including compliance with the standard permit.

The Rule SP at 30 TAC Section 116.615 satisfies the requirements of 40 CFR 51.160(d) through the application of SIP-approved 30 TAC Section 116.615.

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### Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures e) The procedures must identify types and sizes of facilities, buildings, structures, or installations which will be subject to review under this section. The plan must discuss the basis for determining which facilities will be subject to review. The Rule SP at 30 TAC Section 116.601(a)(1) is one type of category of SP issued under the Texas SP program. Specifics about the sources covered under a particular Rule SP are contained in the actual Rule SP. For example, the applicability for the Rule SP for PCP is contained within that sp ecific Rule SP at 30 TAC Section 116.617. Similarly, the applicability for the Rule SP for Oil and Gas Facilities is contained in 30 TAC Section 116.620.

However, there are general applicability requirementsthat all Rule SP must follow as required at SIPapproved 30 TAC Section 116.610 as follows.

30 TAC Section 116.610. Applicability. a) Under the Texas Clean Air Act, §382.051, a project that meets the requirements for a standard permit listed in this subchapter or issued by the commission is hereby entitled to the standard permit, provided the following conditions listed in this section are met. For the purposes of this subchapter, project means the construction or modification of a facility or a group of facilities submitted under the same registration. 1) Any project that results in a net increase in emissions of air contaminants from the project other than carbon dioxide, water, nitrogen, methane, ethane, hydrogen, oxygen, or those for which a national ambient air quality

standard has been established must meet the emission limitations of §106.261 of this title (relating to Facilities (Emission Limitations), unless otherwise specified by a particular standard permit. 2) Construction or operation of the project must be commenced prior to the effective date of a revision to this subchapter under which the project would no longer meet the requirements for a standard permit. 3) The proposed project mu st comply with the applicable provisions of the Federal Clean Air Act (FCAA), §111 (concerning New Source Performance Standards) as listed under 40 Code of Federal Regulations (CFR) Part 60, promulgated by the United States

Environmental Protectio n Agency (EPA).

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### Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures 4) The proposed project mu st comply with the applicable provisions of FCAA, §112 (concerning Hazardous Air Pollutants) as listed under 40 CFR Part 61, promulgated by

the EPA. 5) The proposed project mu st comply with the applicable maximum achievable control technology standards as listed under 40 CFR Part 63, promulgated by the EPA under FCAA, §112 or as listed under Chapter 113, Subchapter C of this title (relating to National

Emissions Standards for Hazardous Air Pollutants for Source Categories (FCAA, §112, 40 CFR Part 63)). 6) If subject to Chapter 101, Subchapter H, Division 3 of this title (relating to Mass Emissions Cap and Trade Program) the proposed facility, group of facilities, or account must obtain allocations to operate. b) Any project that constitutes a new major stationary source or major modification as defined in §116.12 of this title (relating to Nonattainment and Prevention of Significant Deterioration Review Definitions) is subject to the requirements of §116.110 of this title (relating to Applicability) rather than this subchapter. c) Persons may not circumvent by artificial limitations the requirements of §116.110 of this

title.

The Rule SP at 30 TAC Section 116.601(a)(1) satisfies the requirements of 40 CFR 51.160(e) through the application of SIP-approved 30 TAC Section 116.610. Additionally, the specific Rule SP adopted pursuant to 30 TAC Section 116.601(a)(1) must also identify the

sources authorized unde r the specific Rule SP.

f) The procedures must discuss the air quality data and the dispersion or other air quality modeling data used to meet the requirements of this subpart. 1) All applications of air quality modeling involved in this subpart shall be based on the applicable models, data bases, and other requirements specified in appendix W of this part (Guideline on Air Quality Models). The Rule SP is one type of category of SP authorized under the Texas SP program. Because the TCEQ can develop specific Rule SP under the umbrella of 30 TAC Section 116.601(a)(1), it is not necessary or appropriate for the Texas SP program to include air quality data or dispersion modeling data in the general category. Any specific Rule SP developed may have been developed with air quality data or dispersion

### 20



### Table 4: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.160 Federal Regulations for Minor NSR, 40 CFR 51.160 Legally enforceable procedures EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Legally Enforceable Procedures 2) Where an air quality model specified in appendix W of this part (Guideline on Air Quality Models) is inappropriate, the model may be modified or another model substitited. Such a modification or substitution of a model may be made on a case-by-case basis or, where appropriate, on a generic basis for a specific State program. Written approval of the Administrator must be obtained for any modification or substitution. In addition, use of a modified or substituted model must be subject to notice and opportunity for public comment under procedures set forth in §51.102. modeling and will be discussed in that specific Rule SP.

Table 5: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.161 Federal Regulations for Minor NSR, 40 CFR 51.161 Public Availability of Information EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Public Participation a) The legally enforceable procedures in § 51.160 must also require the State or local agency to provide opportunity for public comment on information submitted by owners and operators. The public information must include the agency’s analysis of the effect of construction or modification on ambient air quality, including the agency’s proposed approval or disapproval. The provisions for the Rule SP at 30 TAC Section 116.601(a)(1) require a Rule SP to be developed using Texas Government Code, Chapter 2001, Subchapter B – the administrative procedures for rulemaking in the Texas Constitution.

 Section 2001.023 – Notice of Proposed Rule – requires a state agency to give at least 30 days notice of its intention to adopt a rule before the state agency adop ts a rule. Section 2001.023 also requires that the state agency shall file notice of the proposed rule with the secretary of state for publication in the Texas Register.

 Section 2001.024 – Content of Notice – requires that the notice of proposed rule in the Texas Register must provide an explanation of the proposed rule.

 Section 2001.029 – Public Comment – requires that a state agency shall give all interested persons a reasonable opportunity to submit data, views, or arguments, orally or in writing, before the state agency adopts a rule.

The Administrative Procedures for Rulemaking at Texas Government Code, Chapter 2001, Subchapter B, Sections 2001.023, 2001.024, and 2001.029 satisfy the requirements of 40 CFR 51.160 to provide opportunity for comment. b) For purposes of paragraph (a) of this section, opportunity for public comment shall include, as a minimum – Pursuant to the Administrative Procedures for Rulemaking at Texas Government Code, Chapter 2001, Subchapter B, the notice of the proposed Rule SP will

### 21

Table 5: Evaluation of the Rule SP as a Minor NSR Program under 40 CFR 51.161 Federal Regulations for Minor NSR, 40 CFR 51.161 Public Availability of Information EPA’s Evaluation of how the Texas Rule SP satisfies the Minor NSR requirements for Public Participation 1) Availability for public inspection in at least one location in the area affected of the information submitted by the owner or operator and of the Stat e or local agency’s analysis of the effect on air quality; 2) A 30-day period for submittal of public comment; and 3) A notice by prominent advertisement in the area affected of the location of the source information and analysis specified in paragraph (b)(1) of this section. be provided in the Texas Register for 30 days. See Section 2001.023.

For Minor NSR, EPA has de termined that electronic posting of information is sufficient. See memo dated April 17, 2012, from Janet McCabe to all Regional Administrators, “Minor New Source Review Program Public Notice Requirements under 40 CFR 51.161(b)(3).

c) Where the 30-day comment period required in paragraph (b) of this section would conflict with existing requirements for acting on requests for permission to construct or modify, the State may submit for approval a comment period which is consistent with such existing requirements. Not applicable. The Rule SP is developed with a 30- day comment period.

d) A copy of the notice required by paragraph (b) of this section must also be sent to the Administrator through the appropriate Regional Office, and to all other State and local air pollution control agencies having jurisdiction in the region in which such new or modified installation will be located. The notice also must be sent to any other agency in the region having responsibility for implementing the procedures required under this subpart. For lead, a copy of the notice is required for all point sources. The definition of point for lead is given in § 51.100(k)(2). Pursuant to the Administrative Procedures for Rulemaking at Texas Government Code, Chapter 2001, Subchapter B, Section 2001.026, the TCEQ will mail notice of any proposed rule to each person who has made a timely written request of the TCEQ for advance notice of its rulemaking proceedings.

Because the Rule SP is a component of the Texas Minor NSR SIP, any proposed Rule SP must be provided to EPA and will 40 CFR 51.161(d).



### The analysis presented in Tables 4 and 5 de monstrates that the ge neral SP provisions SIPapproved in November 14, 2003, are applicable to th e Rule SP and satisfy the requirements for Minor NSR at 40 CFR 51.160 and 51.161.

### 22



## B. Evaluation of Revisions to 30 TAC Sec tion 116.617 – State Pollution Control

Standard Permit for Pollu tion Control Projects

The Texas State Pollution Control Project (the Rule SP for PCP) at 30 TAC Section 116.617 is a Rule SP that must meet the requirements of 30 TAC Section 116.601(a)(1) discussed previously in Section III.A of this TSD. The Rule SP for PC P authorizes projects un dertaken voluntarily, or as required by any federal or state statute or rule, that reduce or ma intain currently authorized air emission limits for facilities authorized by a NSR permit, Standard Permit, or Permits by Rule and that may have associated Minor NSR collateral emission increases in other regulated pollutants. 3,4



### On January 27, 2006, Texas repealed the previous ly submitted Rule SP for PCP and adopted a new Rule SP for PCP that is lim ited to Minor NSR only. Texas a dopted the new Rule SP for PCP to be consistent with federal law after the D.C. circuit explicitly limited the use of PCP to Minor NSR. New York v. EPA , 413 F.3d 3, 40–42 (D.C. Cir. 2005). On February 1, 2006, Texas submitted the newly adopted Rule SP for PCP found at 30 TAC Section 116.617, among other provisions, to the EPA for approval into the Texas SIP. 5 

### On September 23, 2009, EPA proposed to disapprove revisions to th e Texas SIP, including the Rule SP for PCP at 30 TAC Section 116.617, on the basis that the Rule SP for PCP did not meet the requirements for a Minor NSR SIP revision. 74 FR 48467, 48471. EPA finalized our disapproval of the Rule SP for PCP on September 15, 2010. See 75 FR 56424.

Upon finalization of our disappr oval, several parties (Luminan t Generation Company, L.L.C.; Oak Grove Management Company, L.L.C.; Big Brown Power Company, L.L.C.; Luminant Mining Company, L.L.C.; Sandow Power Company, L.L.C.; Texas Association of Business; Texas Association of Manufactur ers; Texas Oil & Gas Associa tion; Chamber of Commerce of the United States of America; and the State of Texas) appealed our di sapproval to the Fifth Circuit Court of Appeals.

On March 26, 2012, the Fifth Circu it Court of Appeals granted the petition for review, vacated our disapproval of the Rule SP for PCP, and remanded the matter back to EPA for further review. Luminant Generation Co. LLC. et al, v. EPA , No. 10-60891 (5 th 

### Cir. 2012). The effect

3 See 30 TAC Section 116.617(a)(1) describing the scope and applicability of the Rule SP for PCP as adopted on January 27, 2006 by the State of Texas and submitted as a revision to the Texas SIP on February 1, 2006. See also the TCEQ Response to Comments provided in the preamble to the rule adoption at 31 TexReg 529, January 27, 2006.

4 See Luminant, 675 F.3d at 922 n. 3 (“although the projects by definition reduce or maintain emissions of the primary pollutant, they have the potential to cause in cidental increases in the em issions of other regulated pollutants.”

5 The February 1, 2006, SIP submittal also included amendments to 30 TAC Sections 116.610(a) and 116.610(b). EPA disapproved 30 TAC Sections 116.610(a) and (b) in our September 15, 2010 disapproval of the Rule SP for PCP. See 75 FR 56424. EPA consented to vacatur of our disapproval of 30 TA C Sections 116.610(a ) and (b), and on March 26, 2012, the Fifth Circuit Court of Appeals vacated our di sapproval of those two provisions, In response to the Court’s vacatur and remand, EPA separately finalized approval of 30 TAC Sections 116.610(a) and (b) on February 14, 2014. See 79 FR 8861.

### 23



### of this ruling was to put back in front of EPA for review and consideration as a revision to the Texas SIP the Rule SP for PCP as submitted on February 1, 2006.

Table 6 below presents our evaluation of the Rule SP for PCP submitted on February 1, 2006, at 30 TAC Section 116.617. Our analysis below will determine if the Rule SP for PCP satisfies EPA’s requirements for Minor NSR.

Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

NOT IN SIP § 116.617. State Pollution Control Project Standard Permit The section heading for 30 TAC Section 116.617 is approvable. NOT IN SIP a) Scope and Applicability. Section 30 TAC Section 116.617(a) is approvable. This section provides the scope and applicability of the Rule SP for PCP. These provisions satisfy the requirements of Minor NSR at 40 CFR 51.160 and 51.163.

NOT IN SIP 1) This standard permit applies to pollution control projects undert aken voluntarily or as required by any governmental standard, that reduce or maintain currently authorized emission rates for facilities authorized by a permit, standard permit, or permit by rule. 30 TAC Section 116.617(a)(1) is approvable. This provision is consistent with the requirements at 40 CFR 51.160(e) to identify the sources subject to review under the Rule SP for PCP.

NOT IN SIP 2) The project may include: A. the installation or replacement of emissions control equipment; B. the implementation or change to control techniques; or C. the substitution of compounds used in manufacturing processes. 30 TAC Section 116.617(a)(2) is approvable. This provision is consistent with the requirements at 40 CFR 51.160(e) to identify the sources subject to review under the Rule SP for PCP.

NOT IN SIP 3) This standard permit must not be used to authorize the installation of emission control equipment or the implementation of a control technique that: A. constitutes the complete replacement of an existing production facility, or reconstruction of a production facility as defined in 40 Code of Federal Regulations (40 CFR) §60.15(b)(1) and (c); or B. the executive director determines there are health effects concerns or the potential to exceed a national ambient air quality standard (NAAQS) criteria pollutant or 30 TAC Section 116.617(a)(3) is approvable. This provision is consistent with the requirements at 40 CFR 51.160(a) and (b) requiring that the TCEQ can determine whether the source causes or contributes to a violation of applicable portions of the control strategy or will interfere with attainment or maintenance of the NAAQS and to prevent construction of such

source.

### 24



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

contaminant which results from an increase in emissions of any air contaminant until those concerns are addressed by the registrant to the satisfaction of the executive director; or C. returns a facility or group of facilities to compliance with an existing authorization or permit unless authorized by the executive director. NOT IN SIP 4) Only new or modified pollution control projects must meet the conditions of this standard permit. All previous standard permit registrations under this section that were authorized prior to the effective date of this rule must include the increases and decreases in emissions resulting from those projects in any future netting calculation and all other conditions must be met upon the ten- year anniversary and renewal of the original registration, or until administratively incorporated into the facilities’ permit, if applicable. 30 TAC Section 116.617(a)(4) is approvable. This provision is consistent with the requirements at 40 CFR 51.160(e) to identify the sources subject to review under the Rule SP for PCP.

NOT IN SIP b) General Requirements Section heading. Approvable. NOT IN SIP 1) Any claim under this standard permit must comply with all applicable conditions of: This provision will satisfy the Minor NSR requirements at 40 CFR 51.160 and 51.163 as discussed in the following sections of this table. This provision is approvable. NOT IN SIP A. §116.604(1) and (2) of this title (relating to Duration and Renewal of Registration to Use Standard Permits); The requirement at 30 TAC Section 116.617(b)(1)(A) that the Rule SP for PCP include the duration and renewal requirements applicable to all SP will satisfy the requirements for legally enforceable procedures for Minor NSR at 40 CFR 51.160(a) and (b) and 51.163.

This provision is approvable. NOT IN SIP B. §116.605(d)(1) and (2) of this title (relating to Standard Permit Amendment and Revocation); The requirement at 30 TAC Section 116.617(b)(1)(B) that the Rule SP for PCP include the amendment and revocation provisions applicable to all SP

### 25



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

will satisfy the requirements for legally enforceable procedures for Minor NSR at 40 CFR 51.160(a) and (b) and 51.163.

This provision is approvable. NOT IN SIP C. §116.610 of this title (relating to Applicability); The requirement at 30 TAC Section 116.617(b)(1)(D) that the Rule SP for PCP include the general SP Applicability provisions found at 30 TAC Section 116.6101 will satisfy the requirements for Minor NSR at 40 CFR 51.160(e). See Table 4 of this TSD for more discussion about the Rule SP general provisions.

This provision is approvable. NOT IN SIP D. §116.611 of this title (relating to Registration to Use a Standard Permit); The requirement at 30 TAC Section 116.617(b)(1)(D) that the Rule SP for PCP include the general Registration to Use SP provisions found at 30 TAC Section 116.611 will satisfy the requirements for Minor NSR at 40 CFR 51.160(b) and (c). See Table 4 of this TSD for more discussion about the Rule SP general provisions.

This provision is approvable. NOT IN SIP E. §116.614 of this title (relating to Standard Permit Fees); and The fee provisions for the Rule SP for PCP at 30 TAC Section 116.617(b)(1)(E) is approvable as consistent with the Minor NSR requirements for Legally Enforceable procedures at 40 CFR 51.160(a) and (b) and 51.163. This provision is approvable.

NOT IN SIP F. §116.615 of this title (relating to General Conditions). The requirement at 30 TAC Section 116.617(b)(1)(F) that the Rule SP for PCP include the General Conditions for all SP at 30 TAC Section 116.615 will satisfy the requirements for

### 26



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

Minor NSR at 40 CFR 51.160(a), (d). See Table 4 of this TSD for more discussion about the Rule SP general provisions.

This provision is approvable. NOT IN SIP 2) Construction or implementation of the pollution control project must begin within 18 months of receiving written acceptance of the registration from the executive director, with one 18-month extension available, and must comply with §116.115(b)(2) and §116.120 of this title (relating to General and Special Conditions and Voiding of Permits). Any changes to allowable emission rates authorized by this section become effective when the project is complete and operation or implementation begins. The requirement at 30 TAC Section 116.617(b)(2) comply with SIP-approved requirements at 30 TAC Sections 116.115(b)(2) and 116.120.EPA most-recently SIPapproved 30 TAC Section 116.115 as satisfying the requirements for NSR on October 25, 2012, see 77 FR 65119. EPA SIP-approved 30 TAC Section 116.120 as satisfying the requirements for NSR on April 2, 2010 at 75 FR 16671.

This provision is approvable. NOT IN SIP 3) The emissions limitations of §116.610(a)(1) of this title do not apply to this standard permit. The requirements at 30 TAC Section 116.617(b)(3) satisfy the requirements of 40 CFR 51.160(c) and (e) to identify sources and emissions covered by the Rule SP for PCP.

This provision is approvable. NOT IN SIP 4) Predictable maintenance, start-up, and shut-down emissions directly associated with the pollution control project must be included in the representations of the registration application. The requirement at 30 TAC Section 116.617(b)(4) satisfies the requirement of 40 CFR 51.160(c) and (e) to identify the sources and emissions covered by the Rule SP for PCP.

This provision is approvable. NOT IN SIP 5) Any increases in actual or allowable emission rates or any increase in production capacity authorized by this section (including increases associated with recovering lost production capacity) must occur solely as a result of the project as represented in the registration application. Any increases of production The requirement at 30 TAC Section 116.617(b)(5) satisfies the requirement of 40 CFR 51.160(c) and (e) to identify the sources and emissions covered by the Rule SP for PCP.

This provision is approvable.

### 27



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

associated with a pollution control project must not be utilized until an additional authorization is obtained. This paragraph is not intended to limit the owner or operator’s ability to recover lost capacity used by a derate, which may be recovered and used without any additional authorization. NOT IN SIP c) Replacement projects. 1) The replacement of emissions control equipment or control technique under this standard permit is not limited to the method of control currently in place, provided that the control or technique is at least as effective as the current authorized method and all other requirements of this standard permit are met. 2) The maintenance, startup and shutdown emissions may be increased above currently authorized le vels if the increase is necessary to implement the replacement project and maintenance, startup and shutdown emissions were authorized for the existing control equipment or technique. 3) Equipment installed under this section is subject to all applicable testing and recordkeeping requirements of the original control authorization. Alternate, equivalent monitoring or records may be proposed by the applicant for review and approval of the executive director. The provisions at 30 TAC Section 116.617(c)() satisfy the requirement of 40 CFR 51.160(c) and (e) to identify the sources and emissions covered by the Rule SP for PCP.

These provisions are approvable

NOT IN SIP d) Registration requirements. Section heading. Approvable.

NOT IN SIP 1) A registration must be submitted in accordance with the following: A. If there are no increases in authorized emissions of any air contaminant resulting from a replacement pollution control project, a registration must be submitted no later than 30 days after construction or implementation begins and the registration must be accompanied by a $900 fee. B. If a new control device or technique is authorized or if there are increases in authorized emissions of any air The registration requirements for the Rule SP for PCP at 30 TAC Section 116.617(d)(1) satisfy the requirements at 40 CFR 51.160(a) and (b) and 51.163 to establish legally enforceable procedures used by the TCEQ to ensure protection of the control strategy and the NAAQS. The registration process identifies the steps the TCEQ will use in accepting and evaluating registrations for the Rule SP for PCP to ensure they

### 28



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

contaminant resulting from the pollution control project, a registration must be submitted no later than 30 days prior to construction or implementation. The registration must be accompanied by a $900 fee. Construction or implementation may begin only after either: i. no written response has been received from the executive director within 30 calendar days of receipt by the Texas Commission on Environmental Quality (TCEQ); or ii. written acceptance of the pollution control project has been issued by the executive director. C. If there are any changes in representations to a previously authorized pollution control project standard permit for which there are no increases in authorized emissions of any air contaminant, a notification or letter must be submitted no later than 30 days after construction or implementation of the change begins. No fee applies and no response will be sent from the executive director. D. If there are any changes in representations to a previously authorized pollution control project standard permit that also increase authorized emissions of any air contaminant resulting from the pollution control project, a registration alteration must be submitted no later than 30 days prior to the start of construction or implementation of the change. The registration must be accompanied by a $450 fee, unless received within 180 days of the original registration approval. Construction or implementation may begin only after either: i. no written response has been received from the executive comply with the applicability provisions and will be protective of the NAAQS. These provisions are approvable.

### 29



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

director within 30 calendar days of receipt by the TCEQ; or ii. written acceptance of the Pollution control project has been issued by the executive director. NOT IN SIP 2) The registration must include the following: A. a description of process units affected by the project; B. a description of the project; C. identification of existing permits or registrations affected by the project; D. quantification and basis of increases and/or decreases associated with the project, including identification of affected existing or proposed emission points, all air contaminants, and hourly and annual emissions rates; E. a description of proposed monitoring and recordkeeping that will demonstrate that the project decreases or maintains emission rates as represented; and F. a description of how the standard permit will be administratively incorporated into the existing permit(s). The registration requirements for the Rule SP for PCP at 30 TAC Section 116.617(d)(2) satisfy the requirements at 40 CFR 51.160(c), (d), (e) and 51.163 to establish legally enforceable whereby the source owner/operator identifies the sources and emissions to be authorized under the Rule SP for PCP. The identification of the monitoring and the discussion of how the Rule SP for PCP will be incorporated into existing permits will ensure the owner/operator will comply with applicable portions of the control strategy.

These provisions are approvable.

NOT IN SIP e) Operational Requirements. Upon installation of the pollution control project, the owner or operator must comply w ith the requirements of paragraphs (1) and (2) of this subsection. 1) General duty. The owner or operator must operate the pollution control project in a manner consistent with good industry and engineering practices and in such a way as to minimize emissions of collateral pollutants, within the physical configuration and operational standards usually associated with the emissions control device, strategy, or technique. 2) Recordkeeping. The owner or operator must maintain copies on site of monitoring or other emission records to prove that the pollution control project is operated consistent with the requirements in paragraph (1) of this subsection, and the conditions of this standard permit. The requirements at 30 TAC Section 116.617(e) satisfy the requirements of 40 CFR 51.160(d) to ensure that the construction or modification will not affect the owner/operator’s responsibility to comply with applicable portions of the control strategy.

These provisions are approvable.

### 30



### Table 6: Evaluation of Revi sions to 30 TAC Section 116.617

30 TAC Section 116.617. State Pollution Control Project Standard Permit. Adopted January 11, 2006 Date Submitted to EPA February 1, 2006. Rule Log Number 2005-010- 116-PR EPA’s Evaluation

NOT IN SIP f) Incorporation of the standard permit into the facility authorization. 1) Any new facilities or changes in method of control or technique authorized by this standard permit instead of a permit amendment under §116.110 of this title (relating to applicability) at a previously permitted or standard permitted facility must be incorporated into that facility’s permit when the permit is amended or renewed. 2) All increases in previously authorized emissions, new facilities, or changes in method of control or technique authorized by this standard permit for facilities previously authorized by a permit by rule must comply with §106.4 of this title (relating to Requirements for Permitting by Rule), except §106.4(a)(1) of this title, and §106.8 of this title (relating to Recordkeeping). The requirements at 30 TAC Section 116.617(f) satisfy the requirements of 40 CFR 51.160(d) to ensure that the construction or modification will not affect the owner/operator’s responsibility to comply with applicable portions of the control strategy.

EPA notes that the requirements at 30 TAC Section 106.4 were SIP-approved as consistent with the Minor NSR requirements on November 14, 2003 at 68 FR 64548.

These provisions are approvable.



### The analysis presented in Table 6 demonstrates that the Rule SP for PCP at 30 TAC Section 116.617 as submitted on February 1, 2006, satisfies the criteria for Minor NSR and can be approved into the Texas Minor NSR SIP. 6



### While we are reviewing the Rule SP for PC P as it was submitted on February 1, 2006, it is important to note that TCEQ has made revisions to the Rule SP for PCP that have not been submitted for SIP review and approval. The TCEQ conducted rulemaking on February 9, 2011, to revise the Rule SP for PCP at 30 TAC Section 116.617 by adopting new requirements at 30 TAC Sections 116.617(a)(4) and (a)(5), that provide th at “no new or modifi ed registrations will be accepted and no existing registrations will be renewed” under the Rule SP for PCP “on or after March 3, 2011.” See 36 TexReg 1323, Febr uary 25, 2011. Additionally, on February 9, 2011, the TCEQ issued a new Non-Rule SP for PCP to replace the Rule SP for PCP (see Attachment A of this TSD for additional inform ation about the Non-Rule SP for PCP). The NonRule SP for PCP became part of the Texas Mi nor NSR SIP immediately upon its effective date of March 3, 2011, and requires at sec tions (D)(i) – (iii) that all Ru le SP for PCP authorized as of March 3, 2011, must be converted to a Non-Rule SP for PCP no late r than the ten-year renewal

6 Because the Rule SP for PCP has never been SIP-approved , there are no pollution contro l projects in Texas that are federally authorized under the Rule SP for PCP. Source s currently authorized under 30 TAC Section 116.617 may be authorized under Texas state law, but not under federal law. EPA’s approval of the Rule SP for PCP into the Texas SIP will not provide federal authorization for projects registered under the Rule SP for PCP before it was SIPapproved.

### 31



### anniversary of the authorizati on. Therefore, from March 3, 2011, forward, under the Texas SIP, no source can register for a new Rule SP for PC P at 30 TAC Section 116.6 17, and registrants for the existing Rule SP for PCP must use for revisi on and renewal purposes, the Non-Rule SP for PCP which the TCEQ developed pursuant to th e Texas SIP at 30 TAC Sections 116.601(a)(2) and 116.603. 36 TexReg 2305, February 25, 2011. Because a SP must be renewed every 10 years pursuant to the SIP-approved provisions at 30 TAC Section 116.604, all PCPs currently authorized under a Rule SP for PCP are required by the Texas Minor NSR SIP to be renewed and converted to the Non-Rule SP no later than March 3, 2021. Effectively, the SIP Non-Rule SP for PCP creates a sunset date beyond which th e Rule SP for PCP will be unavailable.

### 32



## C. Evaluation of Revisions to 30 TAC Sec tion 116.911(a)(2) – Control method for

Grandfathered and Electing Electric Generating Facilities

Permitting of grandfathered and electing EGFs in Texas originated with Texas Senate Bill 7 (SB 7), formed under the 76th Texas State Legislat ure, 1999. Texas SB 7 amended the Texas Utilities Code (TUC), Title 2, Public Utili ty Regulatory Act, Subtitle B, Electric Utilities, and created a new Texas Utilities Code Chapter 39, “Restructuri ng of Electric Utility Industry.” Texas SB 7 required the TCEQ to establish a regulatory program implementing the statute’s mandatory emissions reductions for “grandfat hered facilities” under the Texa s Utilities Code section 39.264. A “grandfathered facility” is one that existed at the time the Legislature amended the Texas Clean Air Act (TCAA) in 1971.

These facilities were not required to comply with (i.e., grandfathered from) the then new requirement to obtain permits for construction or modifications of facilities that emit air contaminants. Texas began permitting new and modified sources in 1971, and sources built before Texas’ permitting rules became effective were not required to obtain permits for air emissions as long as they were not modified as defined under Texas’ NSR SIP program. Texas SB 7 of the TUC requires EGFs that existed on January 1, 1999, to obtain a permit from the TCEQ even though these sources we re not previously required to obtain a permit. Specifically, Texas SB 7 requires that for the 12-month pe riod beginning May 1, 2003, and for each 12-month period following, annual emissions of oxides of nitrogen (NO X 

### ) from grandfathered EGFs not exceed 50% of the NO X 

### emissions reported to the Comm ission for 1997. Furthermore, it requires that emissions of sulfur dioxide (SO 2 

### ) from coal-fired grandfathered EGFs not exceed 75% of the SO 2 

### emissions reported to the Commissi on in 1997. In a ddition, TUC section 39.264(e) requires electric generati ng facility permits (EGFPs) for coal-fired, grandfathered EGFs to contain appropriate opacity limitations provided by the commission’s rules in 30 TAC Section 111.111, “Requirements for Specified Sources.”

To achieve Texas SB 7's mandate, the TCEQ revised 30 TAC Chapter 116, “Control of Air Pollution by Permits for New Construction or M odification,” by establishing an allowance and permitting program for regulating grandfathere d EGFs under new Subchapter I, “Electric Generating Facility Permits.” On Decembe r 16, 1999, Texas adopted new Subchapter I, submitted to the EPA for approval into Texas’ s SIP on January 3, 2000. Among other provisions, the submittal included new 30 TAC Section 116.911, Electric Generating Facility Permit Application, and Section 116.911(a)(2) 7 

### , Control method. 30 TAC S ection 116.911 requires that owners or operators of grandfat hered or electing EGFs shall subm it an application to TCEQ to authorize NO X 

### emissions and, if applicable, SO 2 

### and PM emissions before September 11, 2000. The section requires the applic ation to specify various re quirements under 30 TAC Section 116.911(a)(1) – (4), (b)(1) – (2), and (c) – (d). 30 TAC Section 116.911 also includes a provision at 30 TAC Section 116.911(a)(2) “Control method” which references the Rule SP for PCP at 30 TAC Section 116.617. Under 30 TAC Section 116.911( a)(2), if an EGF permit applicant proposes the use of new control methods in it s initial application, then compliance with

7 EPA SIP-approved the provisions at 30 TAC Section 116.911(a)(1) – (4), (b)(1) – (2), and (c) –(d) On January 11, 2011. See 76 FR 1525.

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### particular provisions in 30 TAC Section 116.617 is required and TCEQ may require air dispersion modeling or ambient monitoring.

EPA partially approved and part ially disapproved the Texas provisions for the permitting of grandfathered and electing EGFs in Texas s ubject to Texas SB on January 11, 2011. See 76 FR 1525. As explained more fully in this notice, EPA partially disapproved the provisions for control methods for grandfathered electric ge nerating units at 30 TA C Section 116.911(a)(2) because they provided that a s ource could obtain coverage under the Rule SP for PCP at 30 TAC Section 116.617, which we had disapproved on September 15, 2010. Upon finalization of our partial approval and partial disapproval, severa l parties (Luminant Generation Company, L.L.C.; Big Brown Power Company, L.L.C.; and the State of Texas) filed a petiti on for review of EPA action to the Fifth Circuit Court of Appeals. On September 12, 2012, EPA requested the Fifth Circuit vacate our disapproval and remand the provision back to EPA for further proceedings. On October 4, 2012, the Fifth Circuit granted ou r request by vacating our disapproval of 30 TAC Section 116.911(a)(2) and remanded the matter back to EPA.

As a result of our September 12, 2012, request for vacatur and remand of 30 TAC Section 116.911(a)(2), this provision as submitted on January 3, 2000 is still before us for review as a component of the Texas Minor NSR program. B ecause we are now evaluating the Rule SP for PCP at 30 TAC Section 116.617, it is appropriate to also evaluate 30 TAC Section 116.911(a)(2) for inclusion in the Texas Minor NSR SIP. Tabl e 7 below presents our analysis of 30 TAC Section 116.911(a)(2).

Table 7: Evaluation of 30 TAC Section 116.911

30 TAC Section 116.911. Electric Generating Facility Permit Application. SIP-approved by EPA on January 11, 2011. See 76 FR 1525. As Adopted December 16, 1999. Date Submitted to EPA January 3, 2000. As adopted by the TCEQ on December 16, 1999. Rule Log Number 99033-116-AI EPA’s Evaluation

a) Owners or operators of generating grandfathered or electing electric facilities (EGF) shall submit an application to authorize nitrogen oxides emissions and, if applicable, sulfur dioxide (SO 2 ) and particulate matter (PM) emissions. The application must include a completed Form PI-1-U, General Application. The Form PI-1-U must be signed by an authorized representative of the applicant. The Form PI-1-U specifies additional support information which must be SIP-approved language. No change to SIP-approved language.

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### Table 7: Evaluation of 30 TAC Section 116.911

30 TAC Section 116.911. Electric Generating Facility Permit Application. SIP-approved by EPA on January 11, 2011. See 76 FR 1525. As Adopted December 16, 1999. Date Submitted to EPA January 3, 2000. As adopted by the TCEQ on December 16, 1999. Rule Log Number 99033-116-AI EPA’s Evaluation

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 of the following are met.

1) Measurement of emissions and performance demonstration. Applicants must propose monitoring and reporting for the measurement of emissions and demonstration of performance consistent with §116.914 of this title (relating to Emissions Monitoring and Reporting Requirements). SIP-approved language. No change to SIP-approved language.

NOT IN SIP 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 (5) - (9) of this title (relating to Standard Permit for Pollution Control Projects). The provision at 30 TAC Section 116.911(a)(2) as initially submitted on January 3, 2000 is approvable. This provision references the Standard Permit for Pollution Control Projects (Rule SP for PCP) at 30 TAC Section 116.617. Under Section 116.911(a)(2), if an EGF permit applicant proposes the use of new control methods in its initial application, then compliance with particular provisions in Section 116.617 is required, and TCEQ

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### Table 7: Evaluation of 30 TAC Section 116.911

30 TAC Section 116.911. Electric Generating Facility Permit Application. SIP-approved by EPA on January 11, 2011. See 76 FR 1525. As Adopted December 16, 1999. Date Submitted to EPA January 3, 2000. As adopted by the TCEQ on December 16, 1999. Rule Log Number 99033-116-AI EPA’s Evaluation

may require air dispersion modeling or ambient monitoring also.

As discussed in Table 6, EPA’s analysis demonstrates that 30 TAC Section 116.617 is an approvable component of the Texas Minor NSR program. By extension, the provision at 30 TAC Section 116.911(a)(2) providing for the use of the Rule SP for PCP is also approvable under the Texas Minor NSR Program. 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 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. SIP-approved language. No change to SIP-approved language.

4) Opacity limitations for coalfired 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). SIP-approved language. No change to SIP-approved language.

b) Application information for electing EGFs. 1) In addition to the information required in this section, EGFP applications regarding electing EGFs shall SIP-approved language. No change to SIP-approved language.

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### Table 7: Evaluation of 30 TAC Section 116.911

30 TAC Section 116.911. Electric Generating Facility Permit Application. SIP-approved by EPA on January 11, 2011. See 76 FR 1525. As Adopted December 16, 1999. Date Submitted to EPA January 3, 2000. As adopted by the TCEQ on December 16, 1999. Rule Log Number 99033-116-AI EPA’s Evaluation

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. 2) Emissions of air contaminants from electing EGFs other than NO x , and if applicable, SO 2 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. SIP-approved language. No change to SIP-approved language.

d) All applications for an EGFP shall be submitted under the seal of a Texas licensed SIP-approved language. No change to SIP-approved language.

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### Table 7: Evaluation of 30 TAC Section 116.911

30 TAC Section 116.911. Electric Generating Facility Permit Application. SIP-approved by EPA on January 11, 2011. See 76 FR 1525. As Adopted December 16, 1999. Date Submitted to EPA January 3, 2000. As adopted by the TCEQ on December 16, 1999. Rule Log Number 99033-116-AI EPA’s Evaluation

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

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# IV. Conclusion

The technical analysis provided in the preceding sections has evaluated revisions to the Texas Standards Permits Program as a component of the Texas Minor NSR SIP. Specifically, we reviewed portions of four separate SIP re visions submitted on January 3, 2000, February 1, 2006, and March 11, 2011 specific to the Rule SP and the Rule SP for PCP. EPA’s evaluation demonstrates that the provisions establishing th e Rule SP and the Rule SP for PCP are correctly limited to Minor NSR and are consistent with the CAA and EPA’s regulations and guidance for Minor NSR. It is recommended that EPA approve the following revisions to the Texas SIP:

 30 TAC Section 116.601(a)(1) submitted on Ja nuary 3, 2000, as adopted on December 16, 1999;

 30 TAC Section 116.601(a)(1) submitted on March 11, 2011, as adopted on February 9, 2011;

 30 TAC Section 116.617 submitted on February 1, 2006, as adopted on January 11, 2006;

 30 TAC Section 116.911(a)(2) submitted on January 3, 2000, as adopted on December 16, 1999.

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# Attachment A – The Non-Rule Stan dard Permit for Pollution Control Projects

The following information is an excerpt from the Executive Summary of the Non-Rule Standard Permit for Pollution Control Projects.



# New Non-Rule Standard Permit for Pollution Control Projects Adopted by the TCEQ on February 9, 2011

Rule Project No. 2012-057-OTH-NR SUMMARY DOCUMENT

AIR QUALITY STANDARD PERMIT FOR POLLUTION CONTROL PROJECTS I. EXECUTIVE SUMMARY

The Texas Commission on Environmental Quality (commission) issues a new non-rule Pollution Control Project Standard Permit (PCP SP) for pollution control projects authorized under the Texas Health and Safety Code (THSC), § 382.05195. In a concurrent action, the commission is adopting amendments to the PCP SP in 30 Texas Administrative Code (TAC) Subchapter F, § 116.617. Upon issuance by the commission, the new standard permit can be used to authorize pollution control projects undertaken voluntarily or as required by any federal or state statute or rule that reduce or maintain currently authorized air emission limits for fac ilities authorized by a New So urce Review (NSR) permit under 30 TAC Chapter 116, a standard permit adopted under 30 TAC Chapter 116 Subchapter F, or Permits by Rule (PBR) adopted under 30 TAC Chapter 106.



### Please see the pdf file at the link below to re view the balance of this Summary Document:

http://www.tceq.texas.gov/asse ts/public/permitting/ air/Announcements/pcpsp-exsum.pdf