### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page i 

### Table of Contents

I. Intro ducti on ............................................................................................................... .................................Page 1 A. Overview ................................................................................................................... ..........................Page 1 B. What are we Addressi ng in this Action? ..................................................................................... ........Page 1 C. What are we not Addre ssing in this Action? ................................................................................. ......Page 2 II. Overview of S ubmitted Revisions ........................................................................................... ...................Page 3 A. What Pending SIP Revisions is EPA Addressing in this Action? .......................................................Page 3 B. What Rules and Regulations is EPA not Addressing in th is Action? ..................................................Page 5 III. How is the Evaluation of these Rules Organized in this Document? ......................................................... Page 7 IV. Detailed Discussion and Evaluation of Specific Provision of the Submitted Rule s ...................................Page 8 A. The Submitted Anti-Backsliding Major NSR SIP Requirements for the One-Hour Ozone NAAQS ........................................................................................................................ .......................Page 8 1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? .............................................................................................. .Page 8 i. EPA’s September 15, 2010, disapproval of the anti-backsliding requirements for the 1-hour ozone NAAQS ...............................................................................................Page 8 B. The Submitted Major NSR SIP Requirements for the 1997 Eight-Hour Ozone NAAQS ..................Page 13 1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? .............................................................................................. .Page 13 i. EPA’s September 15, 2010, disapproval of the submitted Major Nonattainment NSR SIP requirements for th e 1997 eight-hour ozone NAAQS ...................Page 13 C. The Submitted Major NSR Reform SIP Revisi ons for Major NSR With PAL Provisions .................Page 15 1 What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? .............................................................................................. .Page 15 i. EPA’s September 15, 2010, disapproval of the PAL Program because it lacks a provision which limits applicability of a PAL only to an existing major stationary

source ........................................................................................................................ ............Page 15 ii. EPA’s September 15, 2010, disapproval of the PAL Program for lack of provisions that relate to PAL reopenin gs ..............................................................................Page 16 iii. EPA’s September 15, 2010, disapproval of the PAL Program for lack of mandate the failure to use required monitori ng system renders th e PAL invalid ..................Page 18 iv. EPA’s September 15, 2010, disapproval of the PAL Program because it did not account for all the emissions of a pollutant at a major stationa ry source ..............................Page 19 v. EPA’s September 15, 2010, disapproval of the PAL Program becau se the PAL Program does not calculate baseline actual emissions in terms of the average rate in tons per year ...Page 21 vi. EPA’s September 15, 2010, disapproval of the PAL Program because it did not includes specific definitions of CEMS , CERMS, CPMS, an d PEMS ...................................Page 22 2. Evaluation of other Issues that are not Related to the Grounds for the September 15, 2010, Disapproval ............................................................................................................. ...........Page 23 i. Submittal of 40 TAC 116.12(23) – Definition of “plant-wide applicability limit effective date” ............................................................................................................... ........Page 23 ii. 30 TAC 116.12(22) – Definition of “Plant-Wide Applicability Limit” – and 30 TAC 116.1 86(a). ........................................................................................................... ..Page 24 iii. Submittal of 40 TAC 116.186(c )(2) ......................................................................................Pa ge 26 iv. Submittal of 40 TAC 116.186(a) ..........................................................................................Pa ge 28 D. The Submitted Non-PAL Aspects of the Major NSR SIP Re quirements ............................................Page 29 1. What are the Revisions Relating to the Grounds for the September 15, 2010, Disappr oval? .................................................................................................................. ..............Page 29 i. EPA’s September 15, 2010, disapproval of the non-PAL aspects of the Major NSR Program because the rules do not ex plicitly limit the de finition “facility” to an “emissi ons unit.” ....................................................................................................... ...Page 29

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page ii ii. EPA’s September 15, 2010, disapproval of the non-PAL aspects of the Major NSR Program because it does not require the inclusion of emissions resulting from startups, shutdowns, and malfunctio ns .........................................................................Page 35 iii. EPA’s September 15, 2010, disapproval of the non-PAL aspects of the Major NSR Program because it does not provide th at emissions must be calculated in terms of the average rate in tons per year. .............................................................................Page 4 1 V. Does Approval of Texas’s Rule Revisions Interfere with Attainment, Reasonable Further Progress, or Any Other Applicable Re quirement of the Act? .............................................................................. .....Page 42

Appendix

Revisions to the State Implementation Plan Relating to Eight-Hour Ozone and New Source Review Re form ................................................................................................................. ........................... Page i Annotation and Evaluation – 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modifica tion .................................................................................................. ........ Page 116.12-1 Subchapter A – Definitions .................................................................................................... ................ Page 116.12-1 Evaluation of Pending SIP Revisions to 30 TAC 116.12 – Nonattainment and Prevention of Significant Deterioration Review Definitions .................................................................................. ...... Page 116.12-1 Subchapter B – Ne w Source Review .............................................................................................. ........ Page 116.115-1 Division 1 – Perm it Application ............................................................................................... .............. Page 116.115-1 Evaluation of Pending SIP Revisions to 30 TAC 116.11 5 – General and Special Conditions ............... Page 116.115-1 Evaluation of Pending SIP Revisions to 30 TAC 116.121 – Actual to Projected Actual Test for Emissions Increase ............................................................................................................ ................ Page 116.121-1 Division 5 – Nonatta inment Review ............................................................................................. .......... Page 116.150-1 Evaluation of Pending SIP Revisions to 30 TAC 116.150 – New Major Source or Major Modification in Ozone Nonattainment Area ................................................................................... P age 116.150-1 Evaluation of Pending SIP Revisions to 30 TAC 116.151 – New Major Source or Major Modification in Nonattainment Areas Other than Ozone ................................................................ Page 116. 151-1 Subchapter C – Plantwid e Applicability Lim its ................................................................................. .... Page 116.180-1 Division 1 – Plantwide Applicability Limits ................................................................................... ....... Page 116.180-1 Evaluation of Pending SIP Revisions to 30 TAC 116.180 – Appli cability ............................................ Pa ge 116.180 -1 Evaluation of Pending SIP Revisions to 30 TAC 116.182 – Plant-Wide Applicability Limit Permit App licatio n ............................................................................................................ .............. Page 116.182-1 Evaluation of Pending SIP Revisions to 30 TAC 116.18 4 – Application Review Sc hedule .................. Page 116.184-1 Evaluation of Pending SIP Revisions to 30 TAC 116.18 6 – General and Special Conditions ............... Page 116.186-1 Evaluation of Pending SIP Revisions to 30 TAC 116.188 – Plant-wide A pplicability Limit ................ Page 116.188-1 Evaluation of Pending SIP Revisions to 30 TAC 116.190 – Federal Nonattainment and Prevention of Significant Dete rioration Review ........................................................................................... ..... Page 116.190-1 Evaluation of Pending SIP Revisions to 30 TAC 116.192 – Amendments and Alterations ................... Page 116.192-1 Evaluation of Pending SIP Revisions to 30 TAC 116.196 – Renewal of a Plant-wide Applicability Limit Permit .................................................................................................................. .................. Page 116.196-1 Evaluation of Pending SIP Revisions to 30 TAC 11 6.198 – Expiration and Void ance .......................... Page 116.198-1

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 1 

### I. Introduction

A. Overview. This Technical Support Document (T SD) is a technical evaluation of submitted revisions to the Texas State Implem entation Plan (SIP). Specifically, this is an evaluation of SIP revisions to Title 30 of the Texas Administrative Code (30 TAC), Chapter 116 – Control of Air Pollu tion by Permits for New Construction or Modification. This includes the following fi nal and proposed rules and clarification letter: 1. Revisions originally submitted June 10, 2005, and resubmitted March 11, 2011 ( referred to as SIP revisi ons submitted March 11, 2011-1 ), under Rule Project No. 2005-009-116-AI, relating to New Sour ce Review for Eight-Hour Ozone Standard (which the Environmental Protection Agency (EPA) disapproved September 15, 2010, 75 FR 56424); 2. Revisions originally submitted February 1, 2006, and resubmitted March 11, 2011 ( referred to as SIP revisi ons submitted March 11, 2011-2 ), under Rule Project No. 2005-010-116-PR, relating to Federa l New Source Review (NSR) Permit Rules Reform (which EPA disapprov ed September 15, 2010, 75 FR 56424); 3. Revisions submitted March 11, 2011 ( referred to as SIP revisions submitted March 11, 2011-1 ), under Rule Project No. 2 008-030-116-PR, relating to One Hour Ozone Major Source Thresholds and Emission Offsets; 4. Revisions submitted March 11, 2011 ( referred to as SIP revisions submitted March 11, 2011-2 ), under Rule Project No. 2 010-008-116-PR, relating to New Source Review (NSR) Reform; and 5. SIP revisions proposed February 22, 2012, under Rule Project No. 2012-015-116- AI, for parallel processing; and 6. Letter dated May 3, 2012, by the Texas Commission on Environmental Quality (TCEQ) to EPA as a demonstration showing that certain of its submitted rules are at least as stringent as th e Federal NSR Reform Program. B. What are we Addressing in this Action? Except as identified in section I.C, EPA is addressing the SIP revisions identified below that the TCEQ submitted to EPA for review. Additional information is included in Tables 1 and 2 in section II and in the Appendix. 1. One Hour Ozone Major Source Th resholds and Emission Offsets

. This includes:

i . SIP revisions originally submitted June 10, 2005, under Rule Project No. 2005-009-116-AI, and resubmitted March 11, 2011-1.

ii . SIP revisions submitted March 11, 2011-1, under Rule Project No. 2008- 030-116-PR, One Hour Ozone Major S ource thresholds and Emission Offsets. 2. New Source Review (NSR) Reform

. This includes:

i . SIP revisions originally submitted Fe bruary 1, 2006, under Rule Project No. 2005-010-116-PR and resubmitted March 11, 2011-2.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 2 

### ii . SIP revisions submitted March 11, 2011-2 under Rule Project No. 2010- 008-116-PR, New Source Review (NSR) Reform.

iii. SIP revisions proposed February 22, 2012, under Rule Project No. 2012- 015-116-AI, for parall el processing.

iv. TCEQ’s letter dated May 3, 2012, whic h provides a demonstration showing certain of its submitted rules are at least as stringent as the Federal NSR Reform Program. C. What are we not Addressing in this Action? 1. The following provisions were addressed separately in EPA’s action on the Texas Infrastructure SIP Revisions 1 

### :

i . Revisions to 30 TAC 101.1 submitted Ma rch 11, 2011-1, under Rule Project No. 2008-030-116-PR, One Hour Ozone Major Source thresholds and Emission Offsets.

ii . Portions of the following revisions to 30 TAC 116.12 (identified in section I.C.1. iii , below):

a . Revisions adopted by TCEQ on May 25, 2005, under Rule Project No. 2005-009-116-AI, submitted June 10, 2005, resubmitted March 11, 2011-1;

b . Revisions adopted by TCEQ on January 11, 2006, under Rule Project No. 2005-010-116-PR, submitted February 1, 2006, resubmitted March 11, 2011-2;

c . Revisions adopted by TCEQ on February 9, 2011, under Rule Project No. 2008-030-116-PR, submitted March 11, 2011-1; and

d . Revisions adopted by TCEQ on February 9, 2011, under Rule Project No. 2010-008-116-PR, submitted March 11, 2011-2;

iii. The specific portions of 30 TAC 116.12 th at were separately approved in the Texas Infrastructure SIP Revisions which include the following:

a. Revisions to the sec tion title of 30 TAC 116.12;

b. Revisions to the introducto ry paragraph of 30 TAC 116.12;

c. The new definition of “federally regulated NSR pollutant” under 30 TAC 116.12(14);

d. Revisions to the definition of “major stationary source” under 30 TAC 116.12(17); and

e. Revisions to the definition of “major modification” under 30 TAC 116.12(18).

1 EPA partially approved and partially disapproved su bmittals from the Texas Infrastructure and Interstate Transport Requirements of the 1997 Ozone and 1997 and 2006 PM 2.5 NAAQS on December 28, 2011 (76 FR 81371). This includes final approval of the rules identified in section I.C.1.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 3 

### 2. The following provisions will be addressed in separate actions:

i . Amendments to 30 TAC 116.601 adopted by TCEQ on February 9, 2011, under Rule Project No. 2010-008-116-PR, submitted March 11, 2011-2;

ii . Amendments to 30 TAC 116.610 as follows:

a . Adopted by TCEQ on January 11, 2006, under Rule Project No. 2005- 010-116-PR, submitted February 1, 2006, resubmitted March 11, 2011- 2;

b . Adopted by TCEQ on February 9, 2011, under Rule Project No. 2010- 008-116-PR, submitted March 11, 2011-2.

II. Overview of Submitted Revisions A. What Pending SIP Revisions is EPA Addressing in this Action? The pending SIP revisions that we are addressing in this action are identified in Table 1. See the Appendix for further details on the specific changes that were submitted.

Table 1. Summary of Pending SIP Subm ittals Addressed in this Action

Description of SIP Submittal Texas Rule Project Number Date Submitted

to EPA Adopted by State Effective as State Rule Rules Addressed in this Action

New Source

Review for Eight-Hour Ozone Standard 2005-009-116-AI 2008-030-116-PR 3/11/2011-1 a 5/25/2005 6/15/2005 Amended 30 TAC 116.12 c , and 116.150

Federal New

Source Review (NSR) Permit Rules Reform 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 2/1/2006 Amended 30 TAC 116.12 c , 116.150, 116.151, 116.160, and 116.610; Repeal of 30 TAC

116.617; and New 30 TAC 116.121,

116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198. One Hour

Ozone Major Source Thresholds and Emission Offsets 2008-030-116-PR 3/11/2011-1 2/9/2011 3/3/2011 Amended 30 TAC 101.1 d

, 116.12 c , and 116.150

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 4 Description of SIP Submittal Texas Rule Project Number Date Submitted

to EPA Adopted by State Effective as State Rule Rules Addressed in this Action

New Source

Review (NSR) Reform 2010-008-116-PR 3/11/2011-2 2/9/2011 3/3/2011 Amended 30 TAC 116.12 c , 116.115, 116.180, 116.182, 116.186, 116.188, 116.190, 116.192, and 116.601; Repeal of 30 TAC

116.121; and New 30 TAC 116.127. NSR Reform

Revisions 2012-015-116-AI e e e Amended 30 TAC 116.12(23); 116.150(a), (d)(1), and (d)(3); 116.151(a), (c)(1), and (c)(3); 116.180(a)(5); 116.186(b)(9). Proposed revision

submitted for parallel processing. Letter of

explanation and interpretation of the Texas SIP for NSR Reform N/A f f f Letter dated 5/3/2012 from TCEQ to EPA which explains and clarifies TCEQ’s interpretation of sections 116.12(22) and 116.186(a), (b)(9), and (c)(2).

a Originally submitted June 10, 2005. Following disapproval on September 15, 2010, TCEQ on March 11, 2011-1, resubmitted the provisions that were previously disapprove to ensure that EPA considers the prior submittals in its action on the revisions submitted on March 11, 2011-1.

b Originally submitted February 1, 2006. Following disapproval on September 15, 2010, TCEQ on March 11, 2011-2, resubmitted the provisions that were previously disapprove to ensure that EPA considers the prior submittals in its action on the revisions submitted on March 11, 2011-2.

c The following provisions of 30 TAC 116.12 were addressed separately in the Texas Infrastructure SIP: The revised title, the introductory paragraph, and paragraphs (14), (17), and (18). These revisions were adopted in the two revisions under Texas Rule Proj ect Nos. 2008-030-116-PR and 2010-00 8-116-PR, each adopted February 9, 2011, submitted March 11, 2011-1 and -2. See section I.C.1.

d 30 TAC 101.1 was addressed separately in the Texas Infrastructure SIP. See section I.C.1.

e Proposed by TCEQ on February 22, 2012, for parallel SIP processing.

f Letter dated May 3, 2012, with explanation and interpretation of the Texas SIP for NSR Reform.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 5 

### B. What Rules and Regulations is EPA Addressing in this Action? The rules and regulations we are addressing in this action are identified in Table 2 below. See the Appendix for further details on the specific requirements of these rules and regulations and our evaluation of the rules and regulations. Table 2. Summary of Individual Revi sions to each section evaluated

Section - Title Texas Rule Project Number Date Submitted to EPA Adopted by State Comments

30 TAC 116.12 –

Nonattainment and Prevention of Significant Deterioration Review Definitions 2005-009-116-AI 2008-030-116-PR 3/11/2011-1 a 5/25/2005 Amended paragraphs (7), (11), and (13) d

2005-010-116-PR 2010-008-116-PR 3/11/2011-2 1/11/2006 c, d

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended paragraphs (3), (20). and (29) d

2012-015-116-AI e e Amended paragraph (23) N/A f f TCEQ’s letter dated 5/3/2012 explains and clarifies TCEQ’s interpretation of the definition of “plant-wide applicability limit” in paragraph (22). 30 TAC 116.115 –

General and Special Conditions 2010-008-116-PR 3/11/2011-2 2/9/2011 Amended subparagraph (b)(2)(F)

30 TAC 116.127 –

Actual to Projected Actual and Emission Exclusion Test for Emissions 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Submitted as 30 TAC 116.127

2010-008-116-PR 3/11/20 11-2 2/9/2011 Repealed; Re placed w/ new 30 TAC 116.127

30 TAC 116.150 –

New Major Source or Major Modification in Ozone Nonattainment Area 2005-009-116-AI 2008-030-116-PR 3/11/2011-1 a 5/25/2005 Amended subsections (a); New subsections (b), (c), (d), and (e); Renamed subsection (b) to subsection

(f) 2005-010-116-PR 2012-015-116-AI 3/11/2011-2 b 1/11/2006 Amended subsections (a), (b), (c), (d), and (e) 2008-030-116-PR 3/11/2011-1 2/9/2011 Amended subsections (a) and (b); Removed subsection (d); Renamed subsection (e) to subsection (d); Amended subsection (d) as renamed 2012-015-116-AI e e Amended paragraphs (a), (d)(1), and (d)(3) e 30 TAC 116.151 –

New Major Source or Major Modification in Nonattainment Areas Other Than Ozone 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Amended subsections (a), (b), and (c)

2010-008-116-PR 3/11/2011-2 2/9/201 1 Resubmitted with no additional changes 2012-015-116-AI e e Amended paragraphs (a), (c)(1), and (c)(3) e

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 6 Section - Title Texas Rule Project Number Date Submitted to EPA Adopted by State Comments

30 TAC 116.180 –

Applicability 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended subsection (a) 2012-015-116-AI e e Amended paragraph (a)(5) e 30 TAC 116.182 –

Plant-Wide Applicability Limit Permit 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended paragraph (1)

30 TAC 116.184 –

Application Review Schedule 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal Resubmitted with no additional

changes 30 TAC 116.186 –

General and Specific Conditions 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended subsections (a) and (b) 2012-015-116-AI e e Amended paragraph (b)(9) e N/A f f TCEQ’s letter dated 5/3/2012 explains and clarifies TCEQ’s interpretation of paragraphs (a), (b)(9) and (c)(2). 30 TAC 116.188 –

Plant-Wide Applicability Limit 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended main paragraph 30 TAC 116.190 –

Federal Nonattainment and Prevention of Significant Deterioration Review 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended subsection (a)

30 TAC 116.192 –

Amendments and Alterations 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal

2010-008-116-PR 3/11/2011-2 2/9/2011 Amended subsection (c) 30 TAC 116.196 –

Renewal of a PlantWide Applicability Limit Permit 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal Resubmitted without no additional

changes

30 TAC 116.198 –

Expiration and Voidance 2005-010-116-PR 2010-008-116-PR 3/11/2011-2 b 1/11/2006 Initial submittal Resubmitted without no additional

changes

a Originally submitted June 10, 2005. Following disapproval on September 15, 2010, TCEQ on March 11, 2011-1, resubmitted the provisions that were previously disapproved to ensure that EPA considers the prior submittals in its action on the revisions submitted on March 11, 2011-1.

b Originally submitted February 1, 2006. Following disapproval on September 15, 2010, TCEQ on March 11, 2011-2, resubmitted the provisions that were previously disapproved to ensure that EPA considers the prior submittals in its action on the revisions submitted on March 11, 2011-2.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 7 c In the February 1, 2006, SIP submittal (resubmitted Ma rch 11, 2011-2), 30 TAC 116.12 included the following revisions:

• The addition of new paragraphs (3)-(4), (7)-(8), (13)-(14), (16), (22)-(26), (29)-(31), (3 3)-(34), and (36).

• The following paragraphs were renumbered, consistent with the new paragraphs identified above, as follows: 9 Existing paragraphs (3)-(4) to paragraphs (5)-(6), respectively; 9 Existing paragraphs (5)-(8) to paragraphs (9)-(12), respectively; 9 Existing paragraph (9) to paragraph (15); 9 Existing paragraphs (10)-(14) to paragraphs (17)-(21), respectively; 9 Existing paragraphs (15)-(16) to paragraphs (27)-(28), respectively; 9 Existing paragraph (17) to paragraph (32); and 9 Existing paragraph (18) to paragraph (35).



### • The following existing paragraphs, as renumbered, were further revised: (1), (11), (12), (17), (18), and (20).

d This includes portions of 30 TAC 116.12 that were separately approved in the Texas Infrastructure SIP in which EPA approved. See 76 FR 81371, December 28, 2011. In this action, EPA approved the following: The revised title of 30 TAC 116.12; the introductory paragraph to 30 TAC 116.12; the definition of “federally regulated NSR pollutant” in 30 TAC 116.12(14), the definition of “major stationary source” in 30 TAC 11 6.12(17), and the definition of “major modification” in 30 TAC 116.12(18).”

e Proposed by TCEQ on 2/22/2012, for parallel SIP processing.

f Letter dated May 3, 2012, with explanation and interpretation of the Texas SIP for NSR Reform.



### III. How is the Evaluation of these Rules Organized in this Document?

A. The Appendix to this document contains a detailed evaluation of each rule concerning whether it meets, or does not meet, appli cable Federal requirements. It includes an underline /strikeout annotation of the submitted rules which shows how each rule is changed and an evaluation of whether the re vised rule meets the requirements for SIP approval under 40 CFR part 51 and th e Clean Air Act (Act or CAA).

B. Specific provisions of the submitted rules that require examination in greater detail than what is feasible in the Appendix are evaluated immediately following the evaluation matrix or in sect ion IV which includes a deta iled discussion of specific provisions that relate to specific issues that require extensive discussion concerning whether they meet applicable requirements for SIP approval.

C. Each rule is reviewed for compliance with the requirements of the Act and Title 40 of the Code of Federal Regulat ions (40 CFR) part 51 – Re quirements for Preparation, Adoption, and Submittal of Implementation Plans. These requirements include, but are not limited to, the following: 1. §110(a)(2)(C) of the Act which provides: (C) include a program to provide for th e . . . regulation of the modification and construction of any stat ionary source within the areas covered by the plan as necessary to assure that national ambient air quality standards are achieved, including a permit program as required in parts C and D;

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 8 

### 2. §110(l) of the Act which provides: (l) Plan Revisions. – Each revision to an implementation plan submitted by a State under this Act shall be adopted by such State after reasonable notice and public hearing. The Admi nistrator shall not approve a revision of a plan if the revision would interfere with a ny applicable requirement concerning attainment and reasonable further progre ss (as defined in section 171), or any other applicable requirement of this Act. 3. 40 CFR 51.165 – Permit requirements. Th e regulatory text of 40 CFR 51.165 is available on line at http://ecfr.gpoaccess.gov/cgi/t/text/textidx?c=ecfr&sid=feed49ec24fac67402c 2bf6fa403850d&rgn=div8&view=text&no de=40:2.0.1.1.2.6.8.6&idno=40

. 4. 40 CFR 51.166 – Prevention of significan t deterioration of air quality. The regulatory text of 40 CFR 51.166 is available on line at http://ecfr.gpoaccess .gov/cgi/t/text/textidx?c=ecfr&sid=0dbbe52d31085f8454d6cbf14 12e1557&rgn=div8&view=text&n ode=40:2.0.1.1.2.6.8.7&idno=40

. 5. Other applicable requirements of the Ac t, 40 CFR part 51, and applicable policy and guidance will be identified in the evaluation where appropriate.

IV. Detailed Discussion and Evaluation of Specific Provisions of the Submitted Rules A. The Submitted Anti-Backsliding Majo r NSR SIP Requirements for the OneHour Ozone NAAQS

1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? i. EPA’s September 15, 2010, disappr oval of the anti-backsliding requirements for the 1-hour ozone NAAQS. EPA disapproved these provisions because the submitte d revisions to 30 TAC 116.12(18) 2 

### and 116.150(d), each submitted June 10, 2005, and February 1, 2006, do not comply with the CAA as inte rpreted by the Court in the South Coast Air Quality Management District, et al., v. EPA , 472 F.3d 882 (D.C. Cir. 2006), rehearing denied 489 F.3d 1245 (2007) (c larifying that the vacatur was limited to the issues on which the court granted the petitions for review) decision because the opinion does not require further action by EPA with respect to NSR

. See 75 FR 56424, at 56429-56431. a. What were the grounds for this disapproval? On July 18, 1997 (62 FR 38856), EPA promulgated a new N AAQS for ozone based upon eight-

2 EPA separately addressed the submitted revisions to 30 TAC 116.12(18), definition of “major modification,” in the Texas Infrastructure SIP. See section I.C.1 for further information on the Texas Infrastructure SIP. Accordingly, this evaluation only addresses the submitted re visions to 30 TAC 116.150(d). All references, herein, to the portions of 30 TAC 116.12 that were approved in the Texas Infrastructure SIP are for informational purposes only.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 9 

### hour average concentrations. The ei ght-hour averaging period replaced the previous one-hour averaging period, and the level of NAAQS was changed from 0.12 parts per million (ppm) to 0.08 ppm. On April 30, 2004 (69 FR 23951), EPA published a fi nal rule that addressed key elements related to implementa tion of the 1997 eight-hour ozone NAAQS including, but not limited to:

• Revocation of the one-hour NAAQS; and

• How anti-backsliding principles will ensure continued progress toward attainment of the 1997 ei ght-hour ozone NAAQS (Phase 1 Rule). We codified the anti-backsliding provisions governing the transition from the revoked one-hour ozone NAAQS to the 1997 eight-hour ozone NAAQS in 40 CFR 51.905(a). The one- hour ozone major nonattainment NSR SIP requirements indicated that certain one-hour ozone standard requirements were not part of the li st of anti-backsl iding requirements provided in 40 CFR 51.905(f).
On December 22, 2006, the D.C. Circuit of Appeals in South Coast vacated the Phase 1 Implementation Rule in its entirety. Following EPA's request for rehearing and clar ification of the ruling, the Court clarified on June 8, 2007, that it was vacating the rule only to the extent that it had upheld pet itioners’ challenges. Thus, the Court vacated the provisions in 40 CFR 51.905(e) that waived obligations under the revoked one-hour standard for NSR. The court’s ruling, therefore, maintains major nonattainment NSR applicability thresholds and emission offset ratios pursuant to cla ssifications previous ly in effect for areas designated nonattainment for the one-hour ozone NAAQS. On June 10, 2005, and February 1, 2006, Texas submitted SIP revisions to 30 TAC 116.12 3 

### and 30 TAC 116.150 which re late to the transition from the major nonattainment NSR re quirements applicable for the onehour ozone NAAQS to the implementation of the major nonattainment NSR requirements applicable to the 1997 eight-hour ozone NAAQS. Texas’s revisions to the introductor y paragraph to subsection (d) of 30 TAC 116.150, effective as state law on June 15, 2005, provided that for “the Houston-Galveston-Brazoria, Dallas-Fort Worth, and BeaumontPort Arthur eight-hour ozone nonattainment areas, if the United States Environmental Protection Agency promulgates rules requiring new source review permit applications in these areas to be evaluated for nonattainment new source review according to the area’s one-hour standard classification,” then “each application will be evaluated according to that area’s one-hour standa rd classification” and “. . . the de minimis threshold test (netting) is required for all modifications to

3 The revisions to 30 TAC 116.12 were approved separate ly in our action on the Texas Infrastructure SIP and cites to §116.12 in this section are for reference only.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 10 

### existing major sources of VOC or NO x 

### in that area . . . .” The introductory paragraph to 30 TAC 116.150(d) added a new requirement for an affirmative regulatory action by EPA on the reinstatement of the one-hour ozone NAAQS major nonattain ment NSR requirements before the legally applicable major nonatta inment NSR requirements under the one-hour ozone standard will be implemented in the Texas one-hour ozone nonattainment areas. On the date of our disapproval of the submitted anti-backsliding provisions, the approved Texas ma jor nonattainment NSR SIP did not require such an affirmative regula tory action by EPA before the onehour ozone major nonattainment NSR requirements come into effect in the Texas one-hour ozone nonattainmen t areas. On the date of our disapproval, the SIP stated at 30 TAC 116.12(11) 4 

### (Footnote 1 under Table I) that “Texas nonattainment area designations are specified in 40 CFR §81.344.” That section (§81.344) includes designations for the onehour standard as well as the ei ght-hour standard. Moreover, the submitted revisions to 30 TAC 116.12(18) 5 

### and 116.150(d) did not comport with the South Coast decision as discussed above. The court opinion maintains the lower applicability thresholds and more stringent offset ratios for a one-hour ozone nonattainment area whose classification under that standard was higher than its nonattainment classification under the eight-hour st andard. In the June 10, 2005, and February 1, 2006, submitted rule re visions, the lower applicability thresholds and more stringent offset ratios for a classified one-hour ozone nonattainment area were not required in a Texas one-hour ozone nonattainment area unless and until EPA promulgated a rulemaking implementing the South Coast decision. Accordingly, the submitted revisions fail to comply with the CAA, whereas, the existing approved SIP meets CAA requirements. See 75 FR 56424, at 56429 and 56431. b. What did Texas submit to address these grounds for disapproval ? On March 11, 2011-1, the TCEQ submitted the following amendments to 30 TAC 116.150 6 

### :

• Removed paragraphs (a)(1) through (a)(2) and subsection (d); and

4 The formerly approved 30 TAC 116.12(11) was renumbered to 30 TAC 112.12(18) in the February 1, 2006, submittal. EPA approved this revision in its action on the Texas Infrastructure SIP. See section I.C.1 for further information.

5 Formerly 30 TAC 116.12(11).

6 TCEQ also submitted revisions to 30 TAC 116.12( 18)(A)(1) concerning major modification and 30 TAC 101.1 to address this ground for SIP disapproval. EPA approved these rules in the Texas Infrastructure SIP which contains the evaluation of the revision s to these sections. These document onl y addressees the revisions to 30 TAC 116.150 that were submitted to address this ground for disapproval. See section I.C.1 for further information on the Texas Infrastructure SIP.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 11 

### • Revised the introductory paragraph to subsection (a) and added new paragraphs (a)(1) through (4) which clarify that permitted facilities in areas that were designated nonattainment for the one-hour ozone standard are subject to the majo r source thresholds and emission offset requirements of the one-hour ozone standard unless one of the four exceptions identified in 30 TAC 116.150(a)(1) through (a)(4) apply. TCEQ amended 30 TAC 116.150(a) to add a requirement for continued applicability of NNSR for the one hour ozone standard until:

o EPA has made a finding of attainment;

o EPA has approved the removal of nonattainment NSR requirements from the area;

o EPA has determined that the Prevention of Significant Deterioration (PSD) requirements apply in the area; or

o nonattainment NSR is no longer required for purposes of antibacksliding.

As the result of EPA’s comments recei ved on the State’s proposal of these amendments the TCEQ changed §116.150( a)(1) through (4) to make clear that the conditions on which these exceptions are based must exist on the date of issuance of the permit. The TCEQ also removed §116.150(d) from the rule. Subsection (d) contained language that indicated that the EPA must comp lete rulemaking before NSR applications are eval uated according to their one-hour classification. As stated above, the South Coast decision is selfimplementing, did not require rulemaking by the EPA to be effective, and NSR applications should be evaluated based upon one-hour classifications if they are more stringent than an area 's eight-hour classification. The TCEQ also renumbered the remainder of §116.150 to reflect the removal of §116.150(d) and minor changes to refere nces in §116.150(b) to reflect the renumbering. TCEQ also changed 30 TA C 116.150(e) to reflect changes in a concurrent rulemaking in Chapter 101. 7 

### See the March 11, 2011-1 submittal, Evaluation of amendments to §§116.12 and 116.150, pages 11 and 15-18. TCEQ states that these changes, incl uding the changes that were addressed separately in the Texas Infrastructure SIP, ensure that when changes are made to maintenance areas and nonattain ment areas as a result of Federal

7 The SIP revision submitted on March 11, 2011-1, includes a nonsubstantive revision to 30 TAC 116.150(e) which provides that the requirements for nitrogen oxides ( 

### NO x ) do not apply in the El Paso nonattainment area. The revision removes the reference to ar ea as defined in 30 TAC 101.1 and replaced it with the area as defined in 40 CFR part 81. In this SIP submittal, Texas also made similar changes to 30 TAC 101.1 to refer to the areas as defined in 40 CFR part 81. EPA approved the revisions to 30 TAC 101.1 in its action on the Texas Infrastructure SIP on December 28, 2011.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 12 

### action, these rules will not be render ed incorrect. Also, for the one-hour ozone NAAQS, the designations and classifi cations in 40 CFR Part 81 were retained by EPA for purposes of anti-backsliding (See 70 FR 44470, August 3, 2005). Upon determination by EPA th at a requirement is no longer needed for purposes of anti-backslid ing, the requirement will no longer apply. The TCEQ also removed the la nguage “to prevent anti-backsliding” and replaced it with “for the purposes of anti-backsliding” since the intent of the rule is to prevent backsliding and promote anti-backsliding.
See the March 11, 2011-1, submittal, Evaluation of amendments to §101.1, at pages 6 and 8 for further information. c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The submitted revisions to 30 TAC 116.150 now meet the Federal requirements regarding antibacksliding under South Coast . The submitted revision to 30 TAC 116.150(a), as discussed above, ensures that TCEQ will continue to require compliance with the nonattainment NSR requirements of the one- hour ozone standard until:

• EPA has made a finding of attainment,

• EPA has approved the removal of nonattainment NSR requirements from the area,

• EPA has determined that PSD requirements apply in the area, or

• Nonattainment NSR is no longer required for purposes of antibacksliding. The TCEQ also removed §116.150(d) fr om the existing rule. Subsection (d) in the existing rule had provided that the permitting requirements for the one-hour ozone nonattainment areas would not apply unless EPA later promulgates rules that reinstate the permitting requirements for the one-hour ozone standard. The removal of subsection (d) reinstates the requirement to follow the nonattainm ent NSR requirements of the onehour ozone standard unless the EPA makes any of the finding described in subsection (a)(1 ) through (a)(4), as described above.

2. Based upon the discussion in section IV.A.1. i

. c . 1 above, these revisions satisfy the requirements of South Coast as discussed above and address EPA concerns related to Anti-Backsliding Major NSR SIP Requirements for the One-Ho ur Ozone NAAQS. Accordingly, these revisions satisfy the requirements for SIP approval.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 13 

### B. The Submitted Major Nonattainment NSR SIP Requirements for the 1997 Eight-Hour Ozone NAAQS

1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? i. EPA’s September 15, 2010, disapproval of the submitted Major Nonattainment NSR SIP requireme nts for the 1997 eight-hour ozone NAAQS. EPA disapproved the June 10, 2005, and February 1, 2006, revisions to 30 TAC 116.150(a) because an applicability determination for a Major Nonattainment NSR (NNSR) permit was based upon the date of administrative completeness, rather than the date of issuance. This would allow more sources to avoid the Major NNSR requirements where there is a nonattainment designation between the da te of administrative completeness and the date of permit issuan ce. See 75 FR 56424, at 56431-56433. a. What were for the gro unds for this disapproval? EPA interprets its Major NSR SIP rules to require that an applicability determination regarding whether Major NSR applie s for a pollutant should be based upon the designation of the area in wh ich the source is located on the date of issuance of the Major NSR permit. EPA also interprets the Act and its rules to require that if an area is designated nonattainment on the date of issuance of a Major NSR permit, then the Major NSR permit must be a NNSR permit, not a PSD pe rmit. If the area is designated attainment/unclassifiable on the date of issuance of a Major NSR permit, then under EPA’s interpretation of th e Act and its rules, the Major NSR permit must be a PSD permit on the date of issuance. See §§160, 165, 172(c)(5) and 173 of the Act; and 40 CFR 51.165(a)(2)(i) and 51.166(a)(7)(i). EPA’s interpretation of these statutory and regulatory requirements is guided by the memorandum issued March 11, 1991, and titled “New Source Revi ew (NSR) Program Transitional Guidance,” by John S. Seitz, Director, Office of Air Quality Planning and Standard (1991 Transition Guidance). 8



### The revisions to 30 TAC 116.150(a), submitted June 10, 2005, and February 1, 2006, read as follows under state law: (a) This section applies to all new source review authorizations for new construction or modification of facilities as follows: (1) for all applications for facili ties that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §§7407 et seq . on the effective date of this section, the issuance date of the authorization; and (2) for all applications for fac ilities that will be located in counties for which nonattainment designation for ozone under 42

8 You can access this document at: http://www.epa.gov/ttn/nsr/gen/nstrans.pdf

.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 14 

### USC §§7407 et seq . becomes effective after th e effective date of this section, the date the applicati on is administratively complete.

The submitted rule raised two concer ns. First, the revised language in the submitted 30 TAC 116.150(a) was not clear as to when and where the applicability date will be se t by the date when and where the application is administratively complete and when and where the applicability date will be set by the i ssuance date of th e authorization. The rule, adopted and submitted in 2005, applies the date of administrative completeness of a permit application, not the date of permit issuance, and applies to NSR authorizations that are administratively complete after June 15, 2004 (the effective date of eight-hour ozone nonattainment desi gnations). The submitted 2006 rule adds the date of permit issuance. Unfortunately, the submitted 2006 rule by introducing a bifurcated structur e created vagueness rather than clarity. The effective date of that ne w bifurcated structure is February 1, 2006. It was unclear whether this revision meant that under subsection (1) that the permit issuance date was to be used in existing nonattainment areas designated nonattainment for ozone before and up through February 1, 2006. Thus, the proposed revision lacks clarity on its face and is therefore not enforceable. Furthermore, to the extent that the date of application completeness was used in certain instances to establish the applicability date for Nonattainment NSR requirements, such use is contrary to EPA’s interpretation of the Act and govern ing EPA regulations, as discussed above. Thus, based upon the above and in the absence of any explanation by the State, EPA disapproved th e SIP revision submittals for not meeting the Major NNSR SIP requirements for th e 1997 eight-hour ozone standard. See 75 FR 56424, at 56431-56432 and 56433.

b. What did Texas submit to addre ss these grounds for disapproval? On March 11, 2011-1, TCEQ submitted amendments to 30 TAC 116.150(a) to apply its requirements as of the date of issuance of the permit. c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The revision submitted March 11, 2011-1 to §116.150 now applies its requirements as of the date of issuance or the permit. This amendment satisfies the require ments of §§160, 165, 172(c)(5) and 173 of the Act; and 40 CFR 51.165( a)(2)(i) and 51.166(a)(7)(i). It also meets EPA’s interpretation of these statutory and regulatory requirements as guided by the 1991 Transitional Guidance.

2. Based upon the discussion in section IV.B.1. i

. c . 1 above, the submitted revisions satisfy th e requirements for SIP approval.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 15 

### C. The Submitted Major NSR Reform SI P Revision for Major NSR with PAL Provisions

1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? i. EPA’s September 15, 2010, disapproval of the PAL Program because it lacks a provision which limits applicability of a PAL only to an existing major stationary source a. What were the grounds for this disapproval? The February 1, 2006, submittal failed to limit the applicability of PALs only to existing major stationary sources, as required under 40 CFR 51.165(f)(1 )(i) and 40 CFR 51.166(w)(1)(i). In the EPA’s N ovember 2002 Technical Support Document for the revised Major NSR Regulations, 9 

### we state on pages I7-27 and 28 that actuals PALs are available only for existing major stationary sources, because actuals PALs are based on a source’s actual emissions. Without at least 2 years of operati ng history, a stationary source has not established actual emissions upon which to base an actuals PAL. This is consistent with EPA’s longstanding interpretation of the Act. Therefore, an actuals PAL can be obtained only for an existing major stationary source. 10 

### Moreover, the development of an alternative method to provide new ma jor stationary s ources with the option of obtaining a PAL based on a llowable emissions was foreclosed by the Court in New York v. EPA , 413 F.3d 3 at 38-40 (D.C. Cir. 2005) (“New York I”) (holding that the Act since 1977 requires a comparison of existing actual emissions before the change and projected actual (or potential emissions) after the change in question is required). See 75 FR 56424, at 56433, 56435, and 56438. b. What did Texas submit to address these grounds for disapproval?

1. On March 11, 2011-2, TCEQ s ubmitted a revision to 30 TAC 116.180 that added a new paragraph (a)(5) which restricts the issuance of PAL permits to existing stationary sources but only cited to the Federal definition of “major stationary source” in nonattainment areas. 11 

### See submittal of Rule Project No. 2010-008- PR, Evaluation, page 12.

2. On February 22, 2012, TCEQ proposed revisions to paragraph (a)(5) to correct the citation to the nonattainment area major source

9 The 2002 TSD for the 2002 rulemaking is available on-line at: http://www.epa.gov/air/nsr/documents/nsrtsd_11-22-02.pdf

.

10 A PAL Permit at an existing major st ationary source may include emissions units that have operated for less than two years (i.e., new emissions units). For new emissions units on which actual construction began after the 24- month baseline period, the PAL includes the potential to emit of new emissions units. See 40 CFR 51.165(f)(6)(ii) and 51.166(w)(2)(ii).

11 We also note that the citation of this definition is not correct; it should cite to 40 CFR 51.165(a)(1)(iv).

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 16 

### definition from 40 CFR 51.165(iv)(A) to 40 CFR 51.165(a)(1)(iv)(A) and to add a reference to the major source definition for PSD areas at 40 CFR 51.166(b)(1). c. What is EPA’s evaluation of the submitted and SIP revisions to address the grounds for disapproval? The March 11, 2011-2 submittal and the February 22, 2012, proposed revi sions to 30 TAC 116.180(a)(5) provides that: “A PAL permit can be issued only for an existing major stationary source; it may not be issued for a new major stationary source as defined in 40 Code of Federa l Regulations §51.165( a)(1)(iv)(A) and §51.166(b)(1).”

1. Nonattainment PAL Pollutant. The March 11, 2011-2, revision to 30 TAC 116.180(a)(5) and the correctio n proposed February 22, 2012, will meet the Federal requireme nts under 40 CFR 51.165(f)(3)(i) for nonattainment PAL pollutants. This would address major stationary sources that emit nonattainment pollutants.

2. PSD PAL Pollutant. The February 22, 2012, pr oposed revision to 30 TAC 116.180(a)(5) added a citation to the definition of “major stationary source in 40 CFR 51.166( b)(1) which would meet Federal requirements under 40 CFR 51.166(w)(3 (i). This addresses major stationary sources that emit PSD pollutants.

3. Based upon the discussions in paragraph IV.C.1. i

. c . 1 and 2 above, the revisions to 30 TA C 116.180(a)(5) submitted March 11, 2011-2, and the February 22, 2012, proposed revisions to paragraph (a)(5), would meet the applicable Federal requirements under 40 CFR 51.165(f)(3)(i) and 51.166(w)(3(i). ii. EPA’s September 15, 2010, disapproval of the PAL Program for lack of provisions that relate to PAL reopenings a. What were the grounds for this disapproval? The February 1, 2006, submittal had no provisions that relate to PAL re-openings, as required by 40 CFR 51.165(f)(8)(ii), (ii)(A) th rough (C), and 51.166(w)(8)(ii) and (ii)(a) through (c). The Federal rules provide for PAL re-openings for the following:

• Correction of typographical/calculation errors in setting the PAL;

• Reduction of the PAL to create:

o Creditable emission reductions for use as offsets; and

o Reductions to reflect newly applicable Federal requirements (for example, New Source Performance Standards (NSPS)) with compliance dates after the PAL;

• PAL reduction consistent with a ny other requirement, that is enforceable as a practical matter, and that the State may impose on the major stationary so urce under the SIP; and

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 17 

### • PAL reduction if the reviewing auth ority determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or an advers e impact on an air quality related value that has been identified for a Federal Class I area by a Federal Land Manager for which information is available to the general public.

Texas had submitted no demonstrati on, as required for a customized Major NSR SIP revision submittal, that the lack of provisions for PAL re-openings is at leas t as stringent as the Federal PAL Program SIP requirements. See 75 FR 56424, at 56433, 56435-56436, and 56438.

b. What did Texas submit to addres s these grounds for disapproval? In revisions submitted March 11, 2011-2, TC EQ addressed this issue by the addition of §116.192(c) which provides that during the PAL effective period the Executive Director shall reopen a PAL to:

• Correct typographical or calculation errors made in setting the PAL or to reflect a more accurate determination of emissions used to establish a PAL;

• To decrease the PAL limit that the owner or operator of a major stationary source creates to estab lish creditable emi ssions reductions that meet the requirements of 40 CFR 51.165(a)(3)(ii) for use as offsets; and

• Revise the PAL to reflect an incr ease in the PAL provided the owner or operator complies with the requi rements of 40 CFR 52.21(aa)(11) and 51.165(f)(11). The Executive Director may reopen a PAL to:

• Revise the PAL to reflect newly applicable Federal requirements (for example, NSPS) with co mpliance dates after the PAL effective date;

• Revise the PAL to be consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose on the major stationary source under the SIP; or

• Reduce the PAL if the reviewing authority determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an air quality related value that has been identified for a Federal Class I area by a Federal land manager for which information is available to the general public. See submittal of Rule Project No. 2010-008-PR, Evaluation, page 16.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 18 

### c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. As discussed above, the submitted revisions to §116.192(c) and TCEQ’s evaluation thereof, m eet the requirements of 40 CFR 51.165(f)(8)(ii) and 51.1 66(w)(8)(ii).

2. Based upon the discussion in section IV.C.1. ii

. c . 1 above, the March 11, 2011-2, revision satisf ies the requirements for SIP approval. iii. EPA’s September 15, 2010, disapproval of the PAL Program for lack of mandate the failure to use required monitoring system renders the PAL invalid a. What were the grounds for this disapproval? The rules submitted February 1, 2006, had no provision re quiring that the failure to use a monitoring system that meets the requirements of this section renders the PAL invalid, as required by 40 CFR 51.165(f)(12)(i)(D) and 51.166(w)(12)(i)(d). See 75 FR 56424, at 56433 and 56438. b. What did Texas submit to address these grounds for disapproval?

1. On March 11, 2011-2, TCEQ submitted revisions to §116.186 that added a new paragraph (b)(9) which provided that “[f]ailure to use a monitoring system that meets th e minimum requirements of this section is a violation of the PAL permit .” Emphasis added. See submittal of Rule Project No. 2010-008-PR, Evaluation, page 14.

2. On February 22, 2012, TCEQ proposed revisions to paragraph (b)(9) that removed the text “is a violatio n of the PAL permit” and replaced the removed text with “rende rs the PAL permit invalid.” c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. As discussed above, the revision submitted March 11, 2011-2, to add §116.186(b)(9) differs from the Federal requirements at 40 CFR 51.165(f)(12)(i)(D) and 51.166(w)(12) (i)(d). The submitted rule provides that failure to use a m onitoring system that meets the minimum requirements of this section is a violation of the PAL permit. This differs from the Federal requirements which provide that such failure renders the PAL permit invalid.

2. By providing that such failure to use a required monitoring system is simply a violation of the PAL Permit, the source retains its PAL notwithstanding the enforcement liabili ty that could result from such failure to use the required m onitoring. The submitted revision does not comport with the Federal requirement that provides that failure to use the required monitoring re nders the PAL i nvalid. See 40 CFR 51.165(f)(12)(i)(D) and 51.166(w)(12)(i)(d). As submitted March

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 19 

### 11, 2011-2, paragraph (b)(9) does not meet the requirements for SIP approval.

3. However, the revision proposed February 22, 2012, would amend paragraph (b)(9) to remove the text that provided that failure to use the required monitoring would be a violation of the PAL Permit and replaced this removed text with a provision that su ch failure would render the PAL permit invalid. Th is proposed meets the Federal requirements at 40 CFR 51.165(f)(12 )(i)(D) and 51.166(w )(12)(i)(d).

4. Based upon the discussion in section IV.C.1. iii

. c . 1 through 3 above, the revision proposed February 22, 2012, to amend 30 TAC 116.186(b)(9) to provide that that failure to use the required monitoring would render the PAL permit invalid would meet the Federal requirements at 40 CFR 51.165(f)(12)(i)(D) a nd 51.166(w)(12)(i)(d). iv. EPA’s September 15, 2010, disapproval of the PAL Program because it did not account for all the emissions of a pollutant at a major stationary source a. What were the grounds for this disapproval? The February 1, 2006, submittal at 30 TAC 116.182 and 116.186 provided for an emissions cap that may not account for all of the emissions of a pollutant at the major stationary source. Texa s required the owner or operator to submit a list of all facilities to be included in the PAL , such that not all of the facilities at the entire major stat ionary source may be specifically required to be included in the PAL. See 30 TAC 116.182(1) and 186(a). However, the Federal rules require the owner or operator to submit a list of all emissions units at the source . See 40 CFR 51.166(f)(3)(i) and 40 CFR 51.166(w)(3)(i). The Texas submittal was unclear as to whether the PAL would apply to all of the emission units at the entire major stationary source and therefore appeared to be less stringent than the Federal rules. In the absence of a ny demonstration from the State, EPA disapproved 30 TAC 116.186 and 30 TA C 116.182(1) as not meeting the revised Major NSR SIP requi rements. See 75 FR 56424, at 56433- 56434 and 56438. b. What did Texas submit to address these grounds for disapproval? On March 11, 2011-2, Texas submitted the following revisions to address these grounds for disapproval:

• §116.180, Applicability. The following revisions were submitted:

° Removal of the term “account site” from §116.180(a)(1) and replacement with the term “existing major stationary source” to make this requirement more consistent with Federal requirements.

° Similar changes to §116.180(a)(3) and (4).

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 20 

### ° The term “facility” as defined in the Texas Clean Air Act (TCAA) was defined to corres pond Federal term “emissions unit”, by adding the language “or emissions unit” whenever the term facility is used (i.e., §116.180(a)(3), (b) and (c)). 12



### ° Additionally, the proposed revision’s use of the phrase “at a major stationary source” and th e term “emissions unit” in a corresponding fashion in this section and elsewhere in the Commission's PAL rules is clarif ied, by adding the phrase “at a major stationary source” to each instance of the term “emissions unit.” This removed any ambiguity by clarifying that both terms are being used interchangeably and in a manner that is consistent with EPA’s use of the term in NSR permitting. See the March 11, 2011-2 submittal of Rule Project No. 2010-008-PR, Evaluation, pages 11-12.

• §116.182, Plant-wide Applicability Limit Permit Application. To address EPA’s concern that §11 6.182(1) might not require all facilities to be included in th e PAL, the TCEQ amended §116.182(1) by adding the phrase “at a major stationary source” where appropriate to make clear that PALs are applicable to major sources only. Additionally, as the result of comments in the EPA's final disapproval (75 FR 56424, Septem ber 15, 2010), the TCEQ added language to require that all emissi on units at the major stationary source that emit the PAL pollutant be included in the PAL permit application. See submittal of Rule Project No. 2010-008-PR, Evaluation, pages 12-13.

• §116.186, General and Special Conditions. To address EPA’s concern that §116.186 might not requ ire all facilities to be included in the PAL, the TCEQ amended §116.186 by adding the language “or emissions unit” where the term facility is used in subsection (a) and paragraph (b)(1) and changing the word “Federal” to “major” in paragraph (b)(1) to clarify the ty pe of NSR referenced in this paragraph. Also, the TCEQ added th e phrase “at a major stationary source” where appropriate to make cl ear that PALs are applicable to major sources only. Also, as the result of comments in the EPA's final disapproval, the TCEQ adde d language to require that all emission units at the major statio nary source that emit the PAL pollutant be included in the PAL permit. See submittal of Rule Project No. 2010-008-PR, Evaluation, pages 13-14.

12 See the discussion in section IV.D.1. i for additional information on how TC EQ addresses the use of “facility” for “emissions unit” in its Non-PAL NNSR Program.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 21 

### c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The revisions submitted March 11, 2011-2, meet the requirements of 40 CFR 51.165(f)(3)(i) and 51.166(w)(3)(i).

2. Accordingly, these revisions satisfy the requirements for SIP approval. v. EPA’s September 15, 2010, disapproval of the PAL Program because the PAL Program does not calculate baseline actual emissions in terms of the average rate in tons per year a. What were the grounds for this disapproval? The Federal definition of the “baseline actual emissions” provid es that these emissions must be calculated in terms of “the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period.” See 40 CFR 51.165(a)(1)(xxxv )(A), (B), (D ) and (E) and 51.166(b)(47)(i), (ii), (iv) , and (v). Emphasis adde d. Texas’s February 1, 2006, submittal of the definition of “baseline actual emissions” at 30 TAC 116.12(3)(A), (B), (D), and (E), differed from the Federal definition by providing that the baseline shall be calculated as “the rate, in tons per year at which the unit actually emitted the pollutant during any consecutive 24-month period.” The definition omits reference to the “average rate.” The definition differed from the Federal SIP definition but the State failed to provide a demonstration showing how the different definition is at least as stringent as the Federal definition. Therefore, EPA disapproved the different definition of “baseline actual emissions” found at 30 TAC 116.12(3) as not meeting the revised Major NSR SIP requirements. On th e same grounds for lacking a demonstration, EPA disapproved 30 TAC 116.182(2) that refers to calculations of the baseline actual em issions for a PAL, as not meeting the revised Major NSR SIP requi rements. See 75 FR 56424, at 56434- 56435, and 56438. b. What did Texas submit to address these grounds for disapproval? On March 11, 2011-2, the TCEQ submitted revisions to the definition of “baseline actual emissions” at 30 TA C 116.12(3)(A), (B), (D), and (E), that specify that the rate is an average rate. See submittal of Rule Project No. 2010-008-PR, Evaluation, page 5. c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The submitted changes to the definition of “baseline actual emissions” in 30 TAC 116.12(3)(A), (B), (D), and (E), to specify that the rate is an average rate, now meets the Federal requirements under 40 CFR 51.165(a)(1)(xxxv)(A), (B), (D) and (E) and 51.166(b)(47)(i), (ii), (iv), and (v).

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 22 

### 2. As discussed in section IV.C.1. v . c . 1 above, these revisions satisfy the requirements for SIP approval. vi. EPA’s September 15, 2010, disapproval of the PAL Program because it did not includes specific definitions of CEMS, CERMS, CPMS, and PEMS a. What were the grounds for this disapproval? The TCEQ failed to include the following specific monito ring definitions in the March 11, 2011-2, submittal:

• “continuous emissions monitoring sy stem (CEMS)” as defined in 40 CFR 51.165(a)(1)(xxxi) and 51.166(b)(43);

• “continuous emissions rate monitori ng system (CERMS)” as defined in 40 CFR 51.165(a)(1)(xxxiv) and 51.166(b)(46);

• “continuous parameter monitoring syst em (CPMS)” as defined in 40 CFR 51.165(a)(1)(xxxiii) and 51.166(b)(45); and

• “predictive emissions monitoring sy stem (PEMS)” as defined in 40 CFR 51.165(a)(1)(xxxii) and 51.166(b)(44). All of these definitions concerning th e monitoring systems in the revised Major NSR SIP requirements are essent ial for the enforceability of and providing the means for determining compliance with a PAL program. Additionally, where, as here, a State has made a SIP revision that does not contain definitions that are required in the revised Major NSR SIP program, EPA may approve such a revi sion only if the State specifically demonstrates that, despite the abse nce of the require d definitions, the submitted revision is more stringent than, or at least as stringent in all respects, as the Federal prog ram. See 40 CFR 51.165(a)(1) (nonattainment SIP approval criteria ); 51.166(b) (PSD SIP definition approval criteria). Texas did not provide such a demonstration. Therefore, EPA disapproved the lack of these definitions as not meeting the revised Major NSR SIP require ments. See 75 FR 56424, at 56434 and 56438. b. What did Texas submit to address these grounds for disapproval? On March 11, 2011-2, TCEQ submitted revisions to §116.186(c)(1) which provided that the definitions of CEMS, CERMS, CPMS, and PEMS are the same as provided in 40 CFR 51.165. See submittal of Rule Project No. 2010-008-PR, Evaluation, pages 14 and 15. c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The revisions described above meet the Federal requirements for the following definitions:

• “Continuous emissions monitoring system (CEMS)” as defined in 40 CFR 51.165(a)(1)(xxxi) and 51.166(b)(43);

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 23 

### • “Continuous emissions rate mon itoring system (CERMS)” as defined in 40 CFR 51.165(a)(1 )(xxxiv) and 51.166(b)(46);

• “Continuous parameter monitoring system (CPMS)” as defined in 40 CFR 51.165(a)(1)(xxxiii ) and 51.166(b)(45); and

• “Predictive emissions monitoring system (PEMS)” as defined in 40 CFR 51.165(a)(1)(xxxii) and 51.166(b)(44). 13



### 2. As discussed in section IV.C.1. vi

. c . 1 above these revisions satisfy the requirements for SIP approval.

2. What is EPA’s Evaluation of the Other SI P Revisions that are not Related to the Grounds for the September 15, 2010, Disapproval? i. Submittal of 30 TAC 116.12(23) – defin ition of “plant-wide applicability limit effective date” a. Background

1, On February 1, 2006, Texas submitted the definition of “plant-wide applicability limit effective date” at 30 TAC 116.12(23).

2, On September 15, 2010 (75 FR 564 24) EPA disapproved the Texas NSR Reform SIP revisions submitted February 1, 2006, including 30 TAC 116.12(23).

3, On March 11, 2011-2, Texas resubmitted 30 TAC 116.12(23) without additional changes.

4, On February 22, 2012, TCEQ proposed to revise the definition of “plant-wide applicability limit effective date” to remove the language that references the date that a Flexible Permit was issued. Since PAL Permits and Flexible Permits are addressed by two different sets of rules in Chapter 116, it is inappropriate to reference Flexible Permits in the definition of “plant-wide applicability limit effective date.” The proposed change would remove language, clarify permitting requirements, and ensure consistency with Federal requirements regarding NSR Permits. b. What is EPA’s Evaluation of the Submitted SIP Revision of 30 TAC 116.12(23)?

1. The definition of “plant-wide applicability limit effective date” at 30 TAC 116.12(23) submitted February 1, 2006, and resubmitted March 11, 2011-2, includes a provision that such effective date for a PAL established in an existing flexible permit is the date that the Flexible Permit was issued. Because EPA disapproved Texas’s Flexible

13 TCEQ incorporated by referen ce the definitions of CEMS, CERMS, CPMS, and PEMS, in 40 CFR 51.165(a)(1). It is not necessary to incorporate the same definitions in 40 CFR 51.166(b) because these terms are defined identically in both sections.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 24 

### Permit Program on July 15, 2010 (75 FR 41312), this provisionappears to say that a source with a Flexible Permit could get a SIPapproved PAL that could retroactiv ely recognize a prior Flexible Permit that should not have been issued.

2. The revisions proposed February 22, 2012, would remove the reference to Flexible Permits from the definition of “plant-wide applicability limit e ffective date” at 30 TAC 116.12(23) and would address EPA’s concerns.

3. Based upon the discussion in section IV.C.2. i

. b

. 1 and 2 above, the revision submitted March 11, 2011- 2, and the revision proposed February 22, 2012, would meet the requirements of 40 CFR 51.165(f)(2)(vi) and 51.166(w)(2)(vi). ii. 30 TAC 116.12(22) – Definition of “Pl ant-Wide Applicability Limit” – and 30 TAC 116.186(a) a. Background

1. The TCEQ submitted this definition on March 11, 2011-2. This definition does not specifically provide that the emission limitation in a PAL must be “enforceable as a practical matter” or “practical enforceable” as required by 40 CFR 51.165(f)(2)(v) and 51.166(w)(2)(v).

2. Similarly, the provisions of 30 TAC 116.186(a), submitted on March 11, 2011-2, likewise do not specifically provide that the emission limitation in a PAL must be “enfor ceable as a practical matter” as required by 40 CFR 51.165(f)(4)( i)(A) and 51.166(w)(4)(i)(a).

3. The omission of the requirement th at the PAL be enforceable as a practical matter raises the question of how the rules meet Federal enforceability requirements. b. What is EPA’s Evaluation of th e Submitted SIP Revisions to 30 TAC 116.12(22) and 30 TAC 116.186(a)?

1. The 2002 NSR Reform rule discusses practical enforceability in the preamble of its NSR Reform rule. Here we say that "[p]ractical enforceability for a source-specifi c permit will be achieved if the permit's provisions specify: (1) a technically accurate limitation and the portions of the source subject to the limitation; (2) the time period for the limitation (hourly, mont hly, and annual limits such as rolling annual limits); and (3) th e method to determine compliance, including appropriate monitoring, recordkeeping, and reporting." See 67 FR 80186, at 80190-80191, December 31, 2002. For PALs, EPA discussed the monitoring, recordke eping, and reporting requirements for a PAL and characterized thes e requirements as addressing a number of issues associated with practical enforceability of PALs. 67 FR 80186, at 80211-80214.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 25 

### EPA's interpretation of the term "practical enforceability" in the context of the CAA is discus sed in the guidance memorandum Options for Limiting the Potential to Emit (PTE) of a Stationary Source Under Section 112 and Title V of the Clean Air Act (Act) , by John S. Seitz, Director, Office of Air Quality Planning and Standards, and Robert I. Heuvelen, Director, Office of Regulatory Enforcement, dated January 25,1995. 14 

### See pages 46 and 47 of the guidance.

2. On May 3, 2012, the TCEQ forwarded a letter to EPA which includes a written demonstration as required by 40 CFR 51.165(a)(1) and 51.166(b); section 1 10(l) of the CAA 15 

### ; and the discussion at 67 FR 80186, at 80341 (December 31, 2002) 16 

### for how the definition of “plantwide applicability limit” prov ides that emission limits in its PAL Permits meets the Federal requ irements for being enforceable as a practical matter. 17 

### In its letter TCEQ acknowledges that a practically enforceable permit in cludes conditions which establish clear legal obligations and allow compliance with these obligations to be verified. TCEQ further ack nowledges that EPA’s final PAL rules discuss the PAL monitoring , recordkeeping, and reporting requirements and characterizes these requirements as addressing a number of issues associated with the practical enforceability of PALs. TCEQ discussed how its PAL program meets the requirements for practical enforc eability in each of the three elements identified in the 2002 NSR Reform Rule at 67 FR 80186, at 80190-80191 as follows:

• A technically accurate limitation and the portions of the source subject to the limitation . Texas established its PAL based on 30 TAC 116.180, 116.182, and 116.186(a). These rules satisfy the requirements of 40 CFR 51.165(f)(3)(i ), (f)(4)(i)(A) and (E), and (f)(6)(1) and 40 CFR 51.166( w)(3)(i), (w)(4)(i)( a ) and ( e ), and (w)(6)(1). These rules meet the Federal requirements for establishing a technically accurate limitation for a PAL and identifies that all emissions units at the major stationary source

14 This guidance is available on-line at http://www.epa.gov/region07/air/title5/t5memos/ptememo.pdf

.

15 Section 110(l) of the Act provides that a SIP revision must not “interfere with any applicable requirement concerning attainment or reasonable further progress . . . , or any other applicable requirement of this Act.”

16 Here we state “[e]ver since our current NSR Regulations were adopted in 1980, we have taken the position that States may meet the requirements of part 51 ‘with different but equivalent regulations,’ 45 FR 52676.”

17 The Federal rules at 40 CFR 51.165(f)(2)(v), 51.165(f)(4)(i)(A), 51.166(w)(2)(v), and 51.166(w)(4)(i)(a) rules provide that the PAL must be en forceable as a practical matter. The om ission of this requirement raises the question of how the rules meet Federa l enforceability requirements and is criti cal to the enforceability of a PAL. Accordingly, if the plan lack s such requirement, th ere must be a demonstration how the State has ensured that the PAL is enforceable as a practical matter or that the Stat e otherwise has the ability to enforce the PAL in the absence of practical enforceability.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 26 

### that will be subject to the PAL. This ensures that the TCEQ’s PAL meets this requirement for practical enforceability.

• The time period for the limitati on (hourly, monthly, and annual limits such as rolling annual limits) . Texas rules state that the PAL limit must be met on a 12-month rolling average (30 TAC 116.182(3) and 116.186(a)). These rules meet the Federal requirements at 40 CFR 51.165( f)(4)(i)(A) and (E) and 51.166(w)(4)(i)( a ) and ( e ) and therefore ensure that the PAL Program and PAL permits issued under the program meet this requirement for practically enforceable.

• The method to determine comp liance, includ ing appropriate monitoring, recordkeeping, and reporting . Texas’ rules at 30 TAC 116.186 includes detailed m onitoring, recordkeeping, and reporting that is consistent with the Federal PAL requirements. These monitoring, recordkeeping, and reporting provisions also meet this requirement for prac tical enforceability. Specific requirements are at section 116.186(b)(4) & (8), and (c) which meet 40 CFR 40 CFR 51.165(f)(13)-(14) and 51.166(w)(13)- (14). These monitoring, record k eeping, and reporting provisions meet Federal PAL requirements an d ensure that the program and PAL permits meets this requirement for practically enforceable.

3. Based upon the discussion in paragraph section IV.C. ii

. b

. 1 and 2 above, the revisions submitted March 11, 2011-2, as interpreted by TCEQ in its letter dated May 3, 2012, meet the requirements of 40 CFR 51.165(f)(2)(v), 51.165(f )(4)(i)(A), 51.166(w)(2)(v). iii. Submittal of 30 TAC 116.186(c)(2) a. Background 1) On February 1, 2006, Texas submitted this rule as 30 TAC 116.186(c)(1). This rule provided that the information generated by that PAL monitoring system must meet minimum requirements for admissibility in a judicial proc eeding to enforce the PAL permit. 2) On September 15, 2010 (75 FR 564 24) EPA disapproved the Texas NSR Reform SIP revisions submitted February 1, 2006, including 30 TAC 116.186(c)(1). 3) On March 11, 2011-2, Texas resubmitted this rule, now redesignated to 30 TAC 116.186(c)(2). In this submittal TCEQ removed the provision that the information ge nerated by that PAL monitoring system must meet minimum requi rements for admissibility in a judicial proceeding to enforce the PAL permit.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 27 

### b. What is EPA’s Evaluation of th e Submitted SIP Revision of 30 TAC 116.186(c)(2)?

1. Section 30 TAC 116.186(c)(2) submitted March 11, 2011-2, does not include the legal requirement that the information generated by that PAL monitoring system must meet minimum requirements for admissibility in a judicial proceeding to enforce the PAL permit as required in 40 CFR 51.165(f)(1 2)(i) and 51.166(w)(12)(i)

. EPA considers the admissibility of monitoring data critical to a State’s ability to enforce a regulatory requirement, including a PAL Permit requirement.

2. On May 3, 2012, the TCEQ forw arded a letter to EPA which includes a written demonstration consistent with EPA’s implementation of section 110(l) of the CAA; and the discussion at 67 FR 80186, at 80341 (December 31, 2002); on how the data from a monitoring system meets the minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL Permit. 18 

### In its letter TCEQ referred to its statutes and rules which establish the jurisdiction of the TCEQ, as well as permit conditions, which require owners and operators of facilitie s that may emit air contaminants which are authorized for constructio n and operation to maintain data necessary to demonstrate compliance with the terms and conditions of their authorizations. That au thority is found in Tex. Health & Safety Code Sections 382.011, 382.012, 382.014, 382.016, 382.051, 382.0513, 382.0514, and 382.0515; Tex. Water Code §§5.013(a)(11), 7.179, 7.180, and 7.181; and TCEQ rules 30 TAC §§116.111, 116.115 (which are, for the most part, SIP approved). Additionally, the Texas Legislature has provided the TCEQ with the enforcement authority in Tex. Wate r Code Chapter 7 to initiate an action to enforce the statutes with in the jurisdiction of the TCEQ, such as 30 TAC 7.179, 7.180, and 7.181. The TCEQ adopted the requirem ent that the Texas Rules of Evidence, as applied in nonjury civil cases in the district courts of the State, be followed in all hearings. See 30 TAC 80.127. The initial factor affecting admissi bility is relevance, and the relevance of offered evidence – evidence of non-compliance in an enforcement hearing - will support admissibilit y. However, if the data is not sufficient to support admissibility, or is non-existent, then the

18 The Federal rules at 40 CFR 51.165(f)(12)(i) and 51.166(w)(12)(i) include requirements relating to the information generated by a PAL monitoring system. Among the requirements is that the information generated by such monitoring system must meet minimum legal requireme nts for admissibility in a judi cial proceeding to enforce the PAL Permit. EPA considers the admissibility of mon itoring data critical to a State’s ability to enforce a regulatory requirement, including a PAL Permit requirement. Accordingly, if th e plan lacks such requirement, there must be a demonstration that the State has the ability to enforce the PAL based upon the information generated by the monitoring system.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 28 

### Executive Director of TCEQ may pursue an enforcement action for failing to maintain the data necessary to demonstrate compliance.

3. Based upon the discussion in paragraph section IV.C. iii

. b

. 1 and 2 above, the revisions submitted March 11, 2011-2, as interpreted by TCEQ in its letter dated May 3, 2012, meet the requirements of 40 CFR 51.165(f)(12)(i) and 51.166(w)(12)(i). iv. Submittal of 30 TAC 116.186(a) a. Background. On March 11, 2011-2, Texas submitted 30 TAC 116.186(a). This rule provides that the PAL limit will be enforced on a 12-month rolling average. However, th is rule does not clearly specify that for compliance purposes, the emission calculations must include emissions from startups, shutdowns, and malfunctions. 19



### b. What is EPA’s Evaluation of the Submitted SIP Revision of 30 TAC 116.186(a)?

1. Section 116.186(a) does not clearly specify that for compliance purposes, emission calculations mu st include emissions from startups, shutdowns, and malfunc tions, as provided in 40 CFR 51.165(f)(7)(iv) and 51.166(w)(7)(iv).

2. On May 3, 2012, the TCEQ fo rwarded a letter to EPA which included a written demonstration consistent with EPA’s implementation of 40 CFR 51.16 5(a)(1) and 51.166(b); section 110(l) of the CAA; and the discussion at 67 FR 80186, at 80341 (December 31, 2002); on how TCEQ addresses emissions from startups, shutdowns, and malfunctions , in the enforcement of its PAL Permits. 20 

### In this letter, the TCEQ stat es that a PAL permit limit can be generally enforced like any other permit limit, and the TCEQ has authority to enforce all permit requi rements. This authority is found in Tex. Water Code, Chapter 7, a nd Tex. Health & Safety Code sections 382.011, 382.015, 382.016, 382.0515, 382.0516, 382.022, 382.023, and 382.085, as well as in cer tain rules found in 30 TAC Chapter 101, Subchapters A and F. In addition, TCEQ rule 30 TAC 101.201 requires regulated entities, regardless of whether they have a PAL permit, to record (and in some cases report) emissions events, which includes unscheduled maintenance, startup, and shutdown

19 Elsewhere at section IV.D. 1

. ii , we address the inclusion of emissions from startups, shutdowns, and malfunctions in the baseline actual emissions. This section IV.C. 2

. iv addresses a different aspect of these types of emissions; it addressed the inclusion of emissions from startups, shutdowns, and malfunctions for the purposes of determining compliance with the PAL Permit.

20 The federal rules at 40 CFR 51.165(f)(7)(iv) and 51.166(w)(7)(iv) require that for purposes of enforcement of a PAL, the emission calculations must include emissions from st artups, shutdowns, and malfunctions. The inclusion of these emissions is critical to the enforcement of the PAL. Accordingly, if the plan lacks such requirement, there must be a demonstratio n that the State has the ability to enforce the PAL.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 29 

### (MSS) activity emissions. Emissions from malfunctions are unauthorized emissions as define d in 30 TAC 101.1(107); therefore, they are unauthorized (non-compliant) emissions. Exceedances of a PAL limit, such as emissions from malfunctions, are unauthorized emissions and are subject to enforcement. TCEQ represented to EPA Region 6 that unscheduled MSS acti vity emissions are functionally equivalent to EPA’s definition of malfunction. 21



### 3. Furthermore, Texas’s PAL also re quires semiannual reports which include “the total annual emissions (in tons per year) based upon a 12-month rolling total for each mont h in the reporting period.” See 30 TAC 116.186(b)(4)(C)(ii). Emphasis added. This requires reporting of all emissions from the PAL, including authorized and unauthorized emissions.

4. Based upon the discussion in paragraph section IV.C. iv

. b

. 1 through 3 above, the revisions s ubmitted March 11, 2011-2, as interpreted by TCEQ in its letter dated May 3, 2012, meet the requirements of 40 CFR 51.165(f)(7)(iv) and 51.166(w)(7)(iv). D. The Submitted Non-PAL Aspects of the Major NSR SIP Requirements

1. What is EPA’s Evaluation of the SIP Revisions Relating to the Grounds for the September 15, 2010, Disapproval? i. EPA’s September 15, 2010, disapproval of the non-PAL aspects of the Major NSR Program because the rules do not explicitly limit the definition “facility” to an “emissions unit” a. What were the grounds for this disapproval? The submitted NNSR nonPAL rules at 30 TAC 116.150 and 116.151 di d not explicitly limit the definition of “facility” 22 

### to an “emissions unit” as do the submitted PSD non-PAL rules. It is our understanding of State law that a “facility” can be:

• An “emissions unit,” 23 

### i.e., any part of a stationary source that emits or may have the potential to emit any air contaminant, as the State explicitly provides in the revised PSD rule at 30 TAC 116.160(c)(3).

21 Letter from John Steib, Deputy Director, TCEQ Of fice of Compliance & Enfor cement to John Blevins, Director, Compliance Assurance and Enforcement Divisi on, USEPA, Region-6 Dallas, April 17, 2007.

22 “Facility” is defined in the SIP approved 30 TAC 116.10( 6) as “a discrete or identifiable structure, device, item, equipment, or enclosure that constitutes or contains a stationary source, including appurtenances other than emission control equipment.”

23 See the definition of “emissions unit” at 40 CFR 51.165(a)(1)(vii), 51.166(b)(7), and 52.21(b)(7).

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 30 

### • A “facility” also can be a piece of equipment, which is smaller than an “emissions unit.”

• A “facility” can include more than one “major stationary source.” It can include every emissions point on a company site, without limiting these emissions points to only those belonging to the same industrial grouping (SIP code). Regardless, the State clearly thought the prudent legal course was to limit “facility” explicitly to “emissi ons unit” in its PSD SIP non-PALs rules. TCEQ did not submit a demonstrati on showing how the lack of this explicit limitation in the NNSR SIP non-PALs revision is at least as stringent as the revised Major NSR SIP requirements. Therefore, EPA disapproved the submitted non-PAL NNSR rules and its use as not meeting the revised Major NNSR non-PALs SIP requirements. See 75 FR 56424, at 56443. b. What did Texas submit to address these grounds for disapproval?

1. In its SIP revisions submitted March 11, 2011-1 and March 11, 2011-2, Texas did not address these gr ounds relating to the use of the term “facility” for “emissions unit” in its non-PAL aspects of the Major Source SIP requirements fo r NNSR. In the March 11, 2011-1, submittal, the revisions to 30 TAC 116.150 only relate to the antibacksliding Major NSR SIP requirements for the one-hour ozone NAAQS, and the Major Nonattainme nt NSR SIP requirements for the 1997 eight-hour ozone NAAQS. 24 

### In the Marc h 11, 2011-2, submittal, Texas only discussed the use of “facility” for the term “emissions unit” in relation to its changes to its PA L rules at 30 TAC 116.180, 116.182, 116.186, and 116.190. In each of these PAL rules, TCEQ states that the Federal term “emissions unit” is defined very similarly to the term “facility” as defined in the TCCA. In these PAL rules, the TCEQ added th e language “or emissions unit” whenever the term “facility” is used. 25



### 2. On February 22, 2012, TCEQ propos ed revisions to 30 TAC 116.150 and 116.151. To ensure clarity, TCEQ proposed to add the language “or emissions unit” where the terms “facility” or “facilities” are used. The TCEQ proposed this change in 30 TAC 116.150(a), (d)(1), and (3) and in 30 TAC 116.151( a), (c)(1), and (c)(3).

24 These requirements are addressed in sections IV.A and IV.B.

25 See sections IV.C.1. iv for information on how TDEQ addressed us e of “facility” for “emissions unit” in its PAL Program.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 31 

### c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval? 1. Evaluation of the March 11, 2011-2, SIP submittal 26



### In this submittal, TCEQ did not a ddress how it limits the definition of “facility” to an “emission unit” in the submitted Non-PAL Aspects of the Major NSR SI P Requirements in 30 TAC 116.150 and 116.151. The TCEQ did not su bmit a demonstration showing how the lack of this explicit limitation in the NNSR SIP non-PALs revision is at least as stringen t as the revised Major NSR SIP requirements.

i. In the Major NNSR non-PAL rules we find that the term “facility” is used in the following regulations:
a) §116.150(a) which reads as follows ( emphasis added) : (a) This section applies to all new source review authorizations for new cons truction or modification of facilities that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §§7407 et seq . as of the date of issuance of the permit, unless the following apply on the date of issuance of the permit: as follows: b) §116.150(d)(1) which reads as follows ( emphasis added ): (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or modification except as provided in paragraph (3)(B) of this subsection and except for ex isting major stationary sources that have a potential to emit (PTE) less than 100 tpy of the applicable pol lutant. For these sources, best available control technology (BACT) can be substituted for LAER. LAER shall otherwise be applied for each new facility and to each existing facility at which the net emissions increase will occur as the result of a physical change or cha nge in method of operation of the unit.

c ) §116.150(d)(3) which reads as follows ( emphasis added ): (3) At the time the new or modified facility or facilities commence operation, the emissions increases

26 The revisions to 30 TAC 116.150 submitted March 11, 2011-1 are unrelated to the changes considered here and are addressed in sections IV.A and IV.B.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 32 

### from the new or modified facility or facilities must be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. Internal offsets which are generated at the source and which otherwise meet all creditability criteria can be applied as follows. d) §116.151(a) which reads as follows ( emphasis added ): (a) This section applies to applications for new construction or modification of facilities located in a designated nonattainment area for an air contaminant other than ozone. The owner or operator of a proposed new or modified facility that will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of subsection (c) (1) - (4) of this section. Table I located in the definition of major m odification in §116.12 of this title (relating to Nonatta inment and Prevention of significant Deterioration Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source.
e) §116.151(c)(1) which reads as follows ( emphasis added ): (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification. LAER shall be applied to each new facility and to each existing facility unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit. f) §116.151(c)(3) which reads as follows ( emphasis added ): (3) At the time the new or modified facility or facilities commence operati on, the emission increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonatta inment classification as defined in §116.12 of this title and shown in Table I located in the definition of major modification in §116.12 of this title.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 33 

### ii. As we noted in our disappr oval of the Texas Major NNSR nonPAL rules (75 FR 56424, at 56443), Texas approved PSD Program explicitly provides in 30 TAC 116.160(c)(3): (3) The term “facility” shall replace the words “emissions unit” in the above referenced sections of the CFR ... .

iii. Accordingly, the March 11, 2011-2, SIP submittal did not address these grounds for the September 15, 2010, disapproval of the Major NNSR non-PALs SIP requirements.

2. Evaluation of the revisions pr oposed February 22, 2012 (Rule Project No. 2012-015-116-AI)

i. The revisions proposed February 22, 2012, address the use of the term “facility” for “emissions unit” as used in 30 TAC 116.150 and 116.151.
a) In the February 22, 2012 proposal, TCEQ proposed to revise §§116.150(a), (d)(1), and (d)(3), and 116.151(a), (c)(1), and (c)(3) to add the language “or emissions unit” following each occurrence of “facility” to ensure clarity and consistency with Federal requirements. b) The TCEQ stated that the Fe deral term “emissions unit” as defined in Federal rules is sim ilar to the term “facility” as defined in the Texas Clean Air Act.
c) In addition, the TCEQ addressed this matter in the following statements: A facility may constitute or contain a stationary source – a point of origin of a contaminant, as defined in THSC, §382.003(12) and in §116.10(15), a definition that is approved into the Te xas SIP. As a discrete point, a facility can constitute but cannot contain a "major stationary source" as define d by federal law and in the TCEQ's SIP approved rule §116.12(17). A facility is subject to major and mi nor NSR requirements, depending on the facts of the specific application. See the TCEQ proposal, page 3. The TCEQ further stated: The TCEQ and its predecessor agencies have consistently interpreted facility to preclude inclusion of more than one stationary source, in contrast to EPA's stated understanding. Likewise, TCEQ does not interpret facility to include "every emissions point on a company site, even if limiting these emission points to

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 34 

### only those belonging to th e same industrial grouping (SIC code)." The federal definition of "major stationary source" in 40 Code of Fe deral Regulations (CFR) §51.166(b)(1)(i)(a) is not equi valent to the state definition of "source." A "major stationary source" can include more than one "facili ty" as defined under Texas law, which is consistent with EPA's interpretation of a "major stationary source" including more than one emissions unit. Under major NSR, EPA uses the term "emissions unit" (generally) when referring to part of a "stationary source;" TCEQ translates "emissions unit" to mean "facility." The commission's SIP-approved Prevention of Significant Deterioration (PSD) permitting rule in §116.160(c)(3) states, "{t}he term 'facility' shall replace the words 'emissions unit' in the referenced sections of the CFR." The above interpretation of th e term "facil ity" has been consistently applied by th e TCEQ and its predecessor agencies for more than 30 years. The TCEQ's interpretation of Texas st atutes enacted by the Texas Legislature is addressed by the Texas Code Construction Act. More sp ecifically, words and phrases that have acquired a techni cal or particular meaning, whether by legislative definition or otherwise, shall be construed accordingly, as pe r Texas Government Code, §311.011(b). In response to the proposed disapproval, the commission proposed adding the phrase "or emissions unit" in its PAL rules, but did not do so in the nonattainment permitting rules because of the long term use of the term in the Texas permitting rules and the approved Texas SIP, which in cluded earlier versions of these rules, and because in the intervening time EPA had approved the definition of "facility" into the SIP. The proposed changes to §116.150 and §116.151 would allow EPA to approve the updated rules that implement the federal nonattainment permitting program. See the TCEQ’s February 22, 2012, proposal, pages 4 through 7.

ii. As discussed in sections IV.D.1. i

. c

. 2.i above, TCEQ in its February 22, 2012, proposed revi sions demonstrates that for

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 35 

### the purposes of §§116.150 and 116.151, the use of the term “facility” is the same as the us e of the term “emissions unit.”

iii. The changes proposed for §§116.150 and 116.151 are the same changes adopted in the TCEQ’s PAL Program (submitted March 11, 2011-2, to address that “emissions unit” means facility.” 27



### iv. The proposed changes are also consistent with the approved Texas PSD Program at §116.160(c)(3) which states “{t}he term ‘facility’ shall replace the words ‘emissions unit’ in the referenced sections of the CFR.”

3. Based on the discussion in sections D.1. i

. c . 1 and 2 above, the revisions submitted March 11, 2011-2, to 30 TAC 116.151 and the revisions proposed to these 30 TAC 116.150 and 116.151 on February 22, 2012, adequately address the grounds for the September 15, 2010, disapproval. ii. EPA’s September 15, 2010, disapproval of the non-PAL aspects of the Major NSR Program because they do not require the inclusion of emissions resulting from startups, shutdowns, and malfunctions a. What were the grounds for this disapproval? Under the Major NSR SIP requirements, for any physical or operational change at a major stationary source, a source must include emissions resulting from startups, shutdowns, and malfunctions, in its determination of baseline actual emissions (40 CFR 51.165( a)(1)(xxxv)(A)(1) and (B)(1) and 51.166(b)(47)(i)( a ) and (ii)(a)) and projecte d actual emissions (40 CFR 51.165(a)(1)(xxviii)(B) and 51.166(b)(40)(ii)( b )). The definition of the term “baseline actual emissions,” as submitted February 1, 2006, at 30 TAC 116.12(3)(E), did not require the inclusion of emissions resulting from startups, shutdowns, and malfunctions. 28



### 1. Our understanding of State law is that the use of the term “may” creates discretionary authority or grants permission or a power. See §311.016 of the Texas Code Construction Act.

2. Similarly, the submitted definition of “projected actual emissions” at 30 TAC 116.12(29) did not require th at emissions resulting from startups, shutdowns, and malfunctions be included.

27 See section IV.C.1.iv for EPA’s evaluation of how the TC EQ addressed that the term “facility” is the same as “emissions unit” for a PAL.

28 The definition of “baseline actual emissions,” in 30 TAC 116.12(E) provided:

. . . Until March 1, 2016, emissions previously demonstrated as emissions events or historically exempted under Chapter 101 of this title . . . may be included to the extent they have been authorized, or are being authorized, in a permit action under Chapter 116. (Emphasis added.)

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 36 

### 3. The submitted definitions differed from the Federal SIP definitions and the State had not provided information demonstrating that these definitions are at least as stringent as the Federal SIP definitions.

4. Therefore, based upon the lack of a demonstration from the State, EPA disapproved the definitions of “b aseline actual emissions” at 30 TAC 116.12(3) and “projected ac tual emissions” at 30 TAC 116.12(29) as not meeting the revise d Major NSR SIP requirements. Specifically, the State did not provide:

• A replicable procedure for determining the basis for which emissions associated with main tenance, startup, and shutdown (MSS) will and will not be included in the baseline actual emissions,

• The basis for including emissions associated with maintenance in baseline actual emissions,

• The basis for not including MSS emissions in the projected actual emissions, and

• Provisions for how it will handle MSS emissions after March 1, 2016. Therefore, based upon the lack of a demonstration from the State, as is required for a customized Major NSR SIP revision submittal, EPA disapproved the definitions of “baseline actual emissions” at 30 TAC 116.12(3) and “projected actual emi ssions” at 30 TAC 116.12(29) as not meeting the revised Ma jor NSR SIP requirements.

Texas stated that it had excluded emissions associated with malfunctions from the calculation of baseline actual emissions and projected actual emissions because including such emissions would inflate the baseline and would narrow the gap between baseline actual emissions and projected actu al emissions. EPA agreed with the reasons Texas used to excl ude malfunction emissions from baseline actual emissions and proj ected actual emissions and which are comparable to the reasons EPA used for excluding malfunction emissions from other States in which EPA approved such exclusion. Notwithstanding Texas’s exclusion of malfunctions from these definitions, Texas must address the other grounds for disapproval as discussed above. This include s mandating the exclusion of malfunction emissions in both definitions. See 75 FR 56424, at 56438-56439 and 56443. b. What did Texas submit to address these grounds for disapproval? On March 11, 2011-2, TCEQ submitted revisi ons to address this concern. TCEQ removed the term “exempted” from §116.12(3)(E) and replaced it with “unauthorized” since emissions events were not exempt under 30

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 37 

### TAC Chapter 101, General Air Qualit y Rules, and must be reported. 29 

### TCEQ noted that in EPA’s final disapproval of the definition of baseline actual emissions, EPA agreed that the inclusion of emission events 30 

### in the definition of baseline actual emissions would have the effect of inflating the baseline and narrowing that gap between the baseline actual emissions and the planned emission rate. See 75 FR 56424, at 56443. EPA noted that the definition of baseline actual emissions included emission events and stated that to be approvable the definition must exclude emission events. This is because EPA noted that the definitions of “baseline actual emissions” and “projected actual emissions” must both exclude or include malfunction emissions. However, TCEQ stated that EPA’s interpretation excludes th e conditional language at the end of the paragraph which limits emissions to those that have been, or are being, authorized , and, therefore, EPA’s st atement that the TCEQ is including emission events is in erro r. The TCEQ stated that its longstanding policy is not to reward em ission from events which are upset events and unplanned MSS activities. TCEQ’s term “unplanned MSS activities” substitutes for EPA’s term “unscheduled MSS.” TCEQ further stated that unplanned MSS activ ities are the functional equivalent of malfunctions, as are all upset emissions. TCEQ also noted that EPA objects to the use of the word “ma y,” because it indicates discretion without replicable procedures for such determinations. Accordingly, TCEQ reworded §116.12(3)(E) to clarify that MSS emissions reported under Chapter 101 shall be included in the calculation of baseline actual emissions but only to the extent that they have been authorized or are being authorized . Because unauthorized emissions are not included, they are therefore excluded in the calculation of baseline actual emissions. The TCEQ does not authorize emission

events , which are emissions from upsets and unscheduled MSS activities. While the text, as adopted in 2006, implemented that long standing policy, it was not written to clearly limit the inclusion of only planned MSS emissions that have been authorize or in the process of being authorized during a defined time period . These changes ensure:

• That there is no discretion as to inclusion of only certain planned MSS emissions (and consequently the exclusion of emission events) in the baseline actual em issions calculation, and

29 These requirements are in the SIP at 30 TAC Chapter 101, Subchapter F, and approved November 10, 2010 (75 FR 68989).

30 The current SIP-approved definition of “emission event” was approved November 10, 2010 (75 FR 68989), at 30 TAC 101.1(28) reads as follows: “Emissions event – Any upset event or unscheduled maintenance, startup, or shutdown activity, from a common cause that results in unauthorized emissions of air contaminants from one or more emissions points at a regulated entity.”

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 38 

### • That the definitions of “baseline actual emissions” and “projected actual emissions” are comparable and are therefore approvable. TCEQ made changes from the pr oposal by retaining in §116.12(3)(E) the phrase “or are being authorized,” relating to planned MSS emissions. Further, §116.12(3)(D) provides that non-compliant emissions are excluded from “baseline actual emissions.” To the extent that there are planned MSS emissions that remain unauthorized on or after March 1, 2016, those will necessarily be “non-com pliant” and therefore, no longer included in the determination of ba seline actual emissions under the requirements of subparagraph (D). This is consistent with the Commission’s policy regarding au thorization of planned MSS emissions. Additionally, the TCEQ amended the definition of “projected actual emissions” in §116.12(29) and adopted it with changes from the proposal. The Commission replaced the phrase “unauthorized emissions from startup and shutdown activities” with “emissions from planned maintenance, startup, or shutdown ac tivities, which we re historically unauthorized and subject to reporting under Chapter 101 to the extent that they have been authorized or are being authorized. ” Emphasis added. This change is necessary to ensure that this definition is compatible with the definition of “baseline actual emissions.” As discussed earlier, the definition of “b aseline actual emissions” is being amended to ensure TCEQ’s intent of the types of emissions can be included in the calculation is clear. While the TCEQ intended that these two definitions be compatible when adopted in 2006, the EPA's comments indicated that may not be the case. The EPA commented that the term “projected actual emissi ons” does not include emissions from startups, shutdowns, and malfunctions. Ho wever, as stated in the original adoption preamble for this rule in 2006, the TCEQ excluded malfunction emissions in compliance with long-standing Commission policy to exclude noncompliant emissions. The EPA in its final disapproval (see September 15, 2010 (75 FR 56424)) agreed that the inclusion of emissions events, which are similar to the Federal term “malfunctions” in the definition of “baseline actua l emissions” would be inappropriate. Further, EPA has approved definitions in other states that also exclude malfunctions. (See September 15, 2010 (75 FR 56441)). These amendments are necessary to ensure that both definitions are approvable as revisions to the SIP. See the March 11, 2011-2 submittal of Rule Project No. 2010-008-PR, Evaluation, pages 6-9.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 39 

### c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval? Texas submitted revisions on March 11, 2011- 2, that address each of the items that EPA identified as needing to be addressed. Texas addressed these items as follows:

1. A replicable procedure for determin ing the basis for which emissions associated with MSS will, and will not, be included in the baseline actual emissions.

a . TCEQ stated that its long-standing policy is not to reward emissions from emission events , which are upset events and unplanned MSS activities. TCEQ’s term “unplanned MSS activities” substitutes for EP A’s term “unscheduled MSS.” TCEQ stated that unplanned M SS activities are the functional equivalent of malfunctions, as are all upset emissions. 31



### b . TCEQ noted EPA’s objection to the use of the word “may” stating that it indicates discretio n without replicable procedures for such determinations. The subm itted revision no longer uses the word “may.”

c . TCEQ addressed this through its revisions to §116.12(3)(E) to clarify that MSS emissions repo rted under Chapte r 101 shall be included in the calcul ation of baseline actual emissions but only to the extent that they have been authorized, or are being authorized . Unauthorized emissions are not included and are therefore excluded in the cal culation of baseline actual emissions. TCEQ stated that it does not authorize emission events, which are emissions from upsets and unscheduled MSS activities. See submittal of Rule Project No. 2010-008-PR, Evaluation, pages 6-7.

d . Consequently, TCEQ reworded §116.12(3)(E) to clarify that MSS emissions reported under Chapter 101 shall be included in the calculation of baseline actual emissions but only to the extent that they have been authorized or are being authorized. Because unauthorized emissions are not included, they are therefore

31 Region 6 did significant follow-up with other EPA Regions on this issue. Region 4 in particular did not consider or address the same issue that OECA raised when they appr oved Alabama’s PAL program. Region 4 has indicated to us that for Alabama they would not treat a malfunction under a PAL any differently than they would treat a malfunction at a source with any title V or PSD emission limit. In Alabama’s view, the PAL limit can generally be enforced like any other limit under the permit, and they can take enforcem ent action for any exceedance of this limit. In addition, all PAL limits would be in a title V permit, and can be enforced under the provisions of title V

. Region 4 also approved SIPs in Georgia, South Carolina, and Florida which did not include malfunctions in baseline actual emissions and projected actual emissions. Th e bases for not including malfunctions in these States’ regulations are discussed in the proposed actions. See 73 FR 51606, at 51609 (Georgia, September 4, 2008); 72 FR 52031, at 52035 (South Carolina, September 12, 2007); and 73 FR 18466, at 18470-18471 (Florida, April 4, 2008).

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 40 

### excluded in the calculation of baseline actual emissions. The TCEQ does not authorize emission events, which are emissions from upsets and unscheduled MSS activities. While the text, as adopted in 2006, implemented th at long standing policy, it was not written to clearly limit the inclusion of only planned MSS emissions that have been authorized, or in the process of being authorized, during a defined time period. These changes ensure:

• That there is no discretion as to inclusion of only certain planned MSS emission (and consequently the exclusion of emission events) in the baseline actual emissions calculation, and

• That the definitions of “baseline actual emissions” and “projected actual emissions” are comparable and are therefore approvable. See the March 11, 2011-2, submittal of Rule Project No. 2010- 008-PR, Evaluation, pages 5-7.

2. The basis for including emissions associated with maintenance in baseline actual emissions. The TCEQ includes MSS emissions to the extent that they have been author ized, or are being authorized. The MSS includes authorized emission from maintenance. The bases for including authorized MSS emissi ons (which include authorized emissions from maintenance) are discussed in detail in paragraph IV.D.1. ii

. c

. 1 above. As discussed above , unauthorized emissions, including unauthorized emissions fr om maintenance activities are not included in the calculation of the baseline actual emissions. TCEQ does not authorize emission ev ents which are emissions from upsets and unscheduled MSS activitie s (including maintenance). See the March 11, 2011-2, submittal of Rule Project No. 2010-008-PR, Evaluation, pages 5-7.

3. The basis for not including unauthorized MSS emissions in the projected actual emissions.

a . TCEQ described its adopted ch anges to the definition of “projected actual emissions” in §116.12(29) as a replacement of the phrase “unauthorized emissions from startup and shutdown activities” with “unauthorized emissions from startup and shutdown activities which were hi storically unauthorized and subject to reporting under Chapter 101 to the extent that they have been authorized or are be ing authorized.” This change ensures that this definition is compatible with the definition of “baseline actual emissions.”

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 41 

### b . The TCEQ excluded malfunction em issions consistent with its long-standing policy to exclude non-compliant emissions. See the March 11, 2011-2, submittal of Rule Project No. 2010- 008-PR, Evaluation, pages 8-9.

4. Provisions for how it will handle maintenance, startup, and shutdown emissions after March 1, 2016. Under §116.12(3)(D), TCEQ excludes non-compliant emi ssions from the baseline actual emissions. To the extent that there are planned MSS emissions that remain after March 1, 2016, those emissions necessarily will be “non-compliant” and will be excluded from the calculation of the baseline actual emissions under s ubparagraph (D). See the March 11, 2011-2, submittal of Rule Project No. 2010-008-PR, Evaluation, page 7.

5. TCEQ has addressed the grounds for disapproval, as discussed above, the demonstrated that th e submitted revisions meet the following Federal requirements:

• Inclusion of planned MSS activities to the extent that they have been authorized, or are being au thorized, in the calculation of baseline actual emissions. These revisions meet the requirements of 40 CFR 51.165(a)(1)(xxxv)(A)(1) and (B)(1), and 40 CFR51.166(b)(40)(ii)(a) and (b)(4 7)(i)(a) and (ii)(a); and

• Inclusion of planned MSS activities to the extent they have been authorized, or are being authorized, in the calculation of projected actual emissions. These revisions meet the requirements of 40 CFR 51.165(a )(1)(xxviii)(B)(2) ; and 40 CFR 51.166(b)(40)(ii)(b).

6. Based upon the discussions in sections IV.D.1. ii

. c . 1 through 5 above, these revisions satisfy th e requirements for SIP approval. iii. EPA disapproved the non-PAL aspects of the Major NSR Program because it does not provide that emissions must be calculated in terms of the average rate in tons per year a. What were the grounds for this disapproval? The Federal definition of the “baseline actual emissions” provid es that these emissions must be calculated in terms of “the average ra te, in tons per year at which the unit actually emitted the pollutant during any consecutive 24-month period.” The submitted definition of the term “baseline actual emissions” found at 30 TAC 116.12(3)(A), (B), (D), and (E) differs from the Federal definition by leaving out the word “average” and instead providing that the baseline shall be cal culated as “the rate, in tons per year at which the unit actually emitted the pollutant during any consecutive 24-month period.” Texas did not provided any demonstration, as required for a customized major NSR SIP revision

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 42 

### submittal, showing how this different de finition is at least as stringent as the Federal definition. See 75 FR 56424, at 56439 and 56443.

b. What did Texas submit to addre ss these grounds fo r disapproval? The revisions submitted March 11, 2011-2, to the definition of “baseline actual emissions” in 30 TAC 116.12(3 )(A), (B), (D), and (E), now provided that the rate is an av erage rate. See the March 11, 2011-2, submittal of Rule Project No. 2010-008-PR, Evaluation, page 5. c. What is EPA’s evaluation of the submitted SIP revisions to address the grounds for disapproval?

1. The March 11, 2011-2, submitted change to the definition of “baseline actual emissions” in 30 TAC 116.12(3)(A), (B), (D), and (E), to specify that the rate is an average rate. The revised definition meets the Federal requirements under 40 CFR 51.165(a)(1)(xxxv)(A), (B), (D) and (E) and 51.166(b)(47)(i), (ii), (iv), and (v).

2. Based upon the discussion in section IV.D.1. iii

. c . 1 above the submitted revisions satisfy th e requirements for SIP approval. 32



### V. Does Approval of Texas’s Rule Revi sions Interfere with Attainment, Reasonable Further Progress, or Any Other Applicable Requirement of the Act? The Act provides that a plan revision sha ll be approved if it meet s the requirements of section 110(l) of the Act, which provides that: Each revision to an implementation plan submitted by a State under this Act shall be adopted by such Stat e after reasonable notice and public hearing. The Administrator shall not approve a revisi on of a plan if the revisions would interfere with any applicable requireme nt concerning attain ment and reasonable further progress . . . , or any other applicable requirement of the Act. As discussed below, EPA believes that Texas’s revisions meet the requirements of section 110(l) of the Act based upon the discussion in the N ovember 2002 document entitled “Supplemental Analysis of the E nvironmental Impact of the 2002 Final NSR Improvement Rules” which provides support th at the 2002 NSR Reform Rules meet this requirement. 33



### In EPA’s Notice of reconsideration of the final December 31, 2002, NSR Reform rule reviewed concluded that the findings in the 2002 rulemaking we re justified stated below: During the rulemaking process, we strived to take into consideration relevant and reliable information on environmental eff ects. We did in fact take account of

32 This same issue was also identified in Texas’s PAL rule. See our evaluation of this matter in the Texas PAL in section IV.C.1.v.

33 This document is available at http://www.epa.gov/air/nsr/documents/nsr-analysis.pdf

.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 43 

### environmental considerations in formulati ng the final rules, and believe the final rules are properly supported a nd justified in this regard. 68 FR 44620, at 44624 (July 30, 200 3). We further stated: In the supplemental environmental analysis, we found that the overa ll effect of the final rule would be a net benefit to the environment compared to the former NSR rules because the final rule would resu lt in reductions in emissions of air pollution. ... Specifically, ... the analysis concludes the following: (1) The PAL provisions will result in tens of thousands of tons per year (tpy) of volatile organic compounds (VOC) re ductions from just three industrial categories where PALs are likely to be used most often. Overall reductions will be greater because it is likely that PALs also will be adopted in other source categories.

* * * * * (4) The portion of the rule addressing baseline actual emissions will not have a significant environmental impact. The former program already allowed sources to use a more representative baseline pe riod, with the approva l of the reviewing authority, instead of the two-year period before the change specifically delineated in the former rules. The final rules pr ovide an expanded time frame from which you may select a representative baseline but eliminate the option of going beyond this period of time. While the new rules may allow a small number of existing emissions units to use higher baselines, ot her units will be required to use lower baselines due to the requirement to adju st the baseline downward to account for any new emission limitations at that em issions unit. The changes overall impact will be small because the portion of the rule addressing baseline actual emissions does not affect new sources, new units built at existing sources, electric utilities, and many modified sources. (5) The change to the actual-to-projected-actual test will have a net environmental benefit, but a relative ly small one. The benefit stems from removing: (1) Incentives to keep actual emissions high before making a change, and (2) barriers to projects that will reduce emissions. The size of this benefit nationally is uncertain. Its impact would be small because the change in emissions calculation methodology does not affect eith er of the following: (1) New sources, new units built at existing industrial facili ties, and electric u tilities, or (2) any modifications at existing facilities that ac tually result in significant increases in emissions. Historically, under the previous major NSR rule, virtually all other sources making a physical or operational ch ange have accepted “permit limits” so as to be confident that they will not trigger major NSR. Our analysis concludes that the benefits from this aspect of the program are likewise largely unaffected because such sources must still assure th at actual emissions do not significantly increase as a result of a change. The supplemental environmental analysis uses quantitative information where possible but also notes limitations on our ability to quantify impacts of the rule. We used qualitative information to supplem ent the analysis when such limitations

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 44 

### are present. We also noted that the final ru les will result in economic benefits that stem from improved flexibility, increased certainty, and reduced administrative burden. These benefits are important, but were not quantified as part of this environmental analysis. 68 FR 44624-44625 (July 30, 2003)
In the final reconsideration action, we stated: After carefully considering the information that was submitted, we have determined that none of the new informati on presented leads us to conclude that the analysis was incorrect or substantially flawed. Therefore, we are re-affirming the validity of the original conclusions. A summary of the comments received and our responses to these comments can be found in our Technical Support Document. 68 FR 63021, at 63023 (November 7, 2003). 34



### In this instance Texas has adopted new rules that are at least as stringe nt as the applicable Federal rules and correspond with the 2002 Final NSR Improvement Rules. There are no data currently available that would show that implementation of Texas’s NSR Reform Program would result in interference with any applicable requirement concerning attainment or reasonable further progress or any other applicable requirement of the Act. We anticipate that Texas’ NSR Reform Program will be have the same impact as the Federal PAL rules as described in the 2002 Supplemental Analysis and the 2003 reconsideration.

The Texas PAL will result in lower emissions than the allowable emissions on the face of the permit in effect before issuance to the PA L Permit. This is because the PAL Permit is based upon actual emissions which will generall y be less than the emissions allowed in the permit in effect prior to issuance of the PAL permit. The PAL is established as the sum of the baseline actual emissions from a ll emissions units at the major stationary source plus the significant level for the PAL pollutant, See 30 TAC 116.188. Furthermore, the average emissions for each emissions unit must be adjusted downward to exclude any non-compliant emissions duri ng the consecutive 24-month baseline period that is used to establish the baseline actual emissions for the PAL. See 30 TAC 116.12(3)(D) under the definition of “baseline actu al emissions.” As discussed in section IV.B.1 in this preamble, a PAL can only be established at an existing major stationary source which has had at least two years of operating history to establish an actuals PAL. Consequently, the PAL will generally be established at a level that is lower than the allowable emissions established in the pr e-existing permit. Fi nally, in the 2002 NSR Reform rulemaking, we note that a PAL provide s operational flexibility for an owner or operator to manage source-wide emissions without triggering major NSR when the changes do not result in emissions above the PA L. This creates incentive to for an owner or operator to create room for growth by employing innovative control technologies and

34 The Technical Support Document for the reconsideration is available at: http://www.epa.gov/air/nsr/documents/petitionresponses10-30-03.pdf

.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 45 

### pollution control measures to create emi ssions reductions to facilitate economic expansion. See 67 FR 80186, at 80206-80207 (December 31, 2002). For the reasons stated above, we are proposing to find that the submitted SIP revisions will not interfere with any applicable requirement concerning attainment and reasonable further progress, or any other app licable requirement of the Act.

### TECHNICAL SUPPORT DOCUMENT Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page 46 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page i 

### This Appendix consists of EP A’s annotation and evaluation of revisions to 30 TAC 116.12, 116.115, 116.121, 116,127, 116.150, 116.151, 116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198. The evaluation of each section consists of the following:

I. Background. This includes a history of the current SIP and each revision that was submitted to EPA for SIP approval.

II. Evaluation matrix. This is a table which includes the text of the SIP-approve rule, the text of each submitted SIP revision, and an annotation of the changes of each SIP revision.

A. Table Structure.

1. The table includes an annotation of each rule that is evaluated in this action. Separate annotations are incl uded for each subsection, paragraph, subparagraph, division, subdivision, etc ., of each rule that is reviewed.

2. Each subsection, paragraph, subpara graph, etc, is arranged in chronological order in a single row from left to right, as follows: a) If the particular part of the rule is currently SIP-approved, the text of the approved appears in the left -hand column of that row. For a SIP-approved rule, the column is shaded at 25 percent. b) If a particular part of the rule has been proposed for SIP-approval,it will either appear immediately to the right of any currently SIPapproved rule, or in the left-most column if there is currently no SIP-approved rule. A proposed rule appears in a column that is shaded at 15 percent. c) If the particular part of the is not SIP-approved, then the earliest submitted SIP revisions that is being reviewed in this action appears in the left-hand column d) Following the left-hand column, additional SIP revisions of that part appear to right in successi ve columns in chronological order for each submitted SIP revision that is being reviewed. e) The far right-hand column include s any comments and evaluation summary of the rule in that row. If more extensive comments are needed they may appear in a footnot e at the bottom of the page or there will be a reference to the section of the TSD if a detailed evaluation is needed as discussed below under the heading entitled Additional Comments.

### TECHNICAL SUPPORT DOCUMENT Appendix Revisions to Texas State Implementation Pl an Relating to Eight-Hour Ozone and New Source Review Reform

Page ii 

### B. Each pending SIP revision is annotated to highlight the changes made to that part relative to the version in the column imme diately to the left of the particular change. Each change is designated as follows:

1. New text is underlined.

2. Deleted text is struck out

. Additional Comments. Whenever the evaluation of a specific provision of a submitted rule requires greater detail that what is feas ible in this Appendix, the right hand column includes a reference to Section IV of the TSD, which includes a detailed discussion that relates to specific issues that need extensive evaluation, and may include discussion whether a submitted rule meets the applicable requirements for SIP approval.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-1 

### Evaluation of Pending SIP Revisions to 30 TAC 116.12 – Nonattainment and Prevention of Significant Deterioratio n Review Definitions

I. Background of 30 TAC 116.12

A. Current SIP. This section is currentl y SIP-approved as follows:

1. Revisions adopted August 20, 2003, and approved March 20, 2009 (74 FR 11851), except for as identif ied in I.A.2 below.

2. Revisions adopted February 9, 2011, and approved December 28, 2011 (76 FR 81371), as follows: a) The revised title; b) The revised introductory paragraph at 116.12; and c) The following definitions: (1) Federally Regulated NSR pollutant; (2) Major stationary source; and (3) Major modification.

B. Submitted Revisions to 30 TAC 116.12 Reviewed in this Action

1. June 10, 2005, and resubmitted March 11, 2011-1, under Rule Project No. 2008-030-116-PR. This SIP submittal includes revisions adopted May 25, 2005; effective June 15, 2005. EPA di sapproved this SIP revision on September 15, 2010 (75 FR 56424). This SIP revision includes revisions to the following: a) Revision to the introductory paragraph. This revision was addressed separately in th e Texas Infrastructure SIP. 1



### b) Revisions to paragraphs (1) thr ough (4), (6) through (10), and (12) through (18). 2



### (1) Revisions to paragrap h (10) were addre ssed separately in the Texas Infrastructure SIP. 3



### (2) Revisions to paragraphs (1)-(4 ), (6)-(9), (12), and (14)-(18) are addressed in this action.

1 See section I.C.1 for further information of the Texas Infrastructure SIP.

2 Most paragraphs identified here (including the paragr aphs identified in paragrap hs I.B.1.b)(1) below were renumbered in a revision adopted January 11, 2006).

3 See section I.C.1 for further information of the Texas Infrastructure SIP.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-2 

### 2. February 1, 2006, and resubmitted Ma rch 11, 2011, under Rule Project No. 2010-008-116-PR. On February 1, 2006, TCEQ submitted revisions adopted January 11, 2006; effective February 1, 2006. The SIP revisions to §116.12 submitted February 1, 2006, were disapproved on September 15, 2010 (75 FR 56424). This SIP revi sion included revisions to the following: a) Changed the title of the secti on from “Nonattainment Review Definitions” to “Nonattainment and Prevention of Significant Deterioration Review Definitions .” This revision was addressed separately in the Texas Infrastructure SIP. 4



### b) Added new paragraphs (3)-(4), (7)-(8), (13), (14) 5 

### , (16), (22)-(26), (29)-(31), (33)-(34), and (36). c) Renumbered existing paragraphs as follows: (1) Existing paragraphs (3)-(4) to paragraphs (5)-(6), respectively. (2) Existing paragraphs (5)-(8) to paragraphs (9)-(12), respectively. (3) Existing paragraph (9) to paragraph (15). (4) Existing paragraphs (10)-(14) to paragraphs (17)-(21) 6



### , respectively. (5) Existing paragraphs (15)-(16) to paragraphs (27)-(28), respectively. (6) Existing paragraph (17) to paragraph (32). (7) Existing paragraph (18) to paragraph (35). d) Revised the following existing paragr aphs as renumbered: (1), (5), (11), (12), (17), (18), and (20).

3. March 11, 2011-1 (eight-hour ozone). On March 11, 2011-1, TCEQ submitted revisions (adopted February 9, 2011); effective March 3, 2011; under Rule Project No. 2008-030-116-PR . This SIP revision included

4 See section I.C.1 for further information of the Texas Infrastructure SIP.

5 Paragraph (14) was addressed separately in the Texas Infrastructure SIP. See section I.C.1 for further information on the Texas Infrastructure SIP.

6 Paragraphs (17) and (18) were addressed separately in the Texas Infrastructure SIP. See section I.C.1 for further information on the Texas Infrastructure SIP.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-3 

### revisions to paragraph (18). These revi sions were addressed separately in the Texas Infrastructure SIP. 7



### 4. March 11, 2011-2 (NSR Reform). On March 11, 2011-2, TCEQ submitted revisions (adopted February 9, 2011); effective March 3, 2011; under Rule Project No. 2008-030-116-PR. This SIP revision includes revisions to paragraphs (3), (20), and (29). These re visions are addressed in this action.

5. Revisions proposed February 22, 2012 . TCEQ proposed a revision to paragraph (23) under Rule Proj ect No, 2012-015-116-AI. EPA will parallel process this revision.

II. Evaluation Matrix of 30 TAC 116.12

Annotation of Submitted Revisions to §116.12 Comments
Current SIP Approved 12/28/2011 8 §116.12. Nonattainment and Prevention of Significant Deterioration Review Definitions.

Unless specifically defined in the Texas Cl ean Air Act (TCAA) or in the rules of the commission, the terms used by the commission have the meanings commonly ascribed to them in the field of air pollution control. The terms in this section are applicable to permit review for major source construction and major source modification in nonattainment areas. In addition to the terms that are defined by the TCAA, and in §101.1 of this title (relating to Definitions), the following words and terms, when used in Chapter 116, Subchapter B, Divisions 5 and 6 of this title (relating to Nonattainment Review and Prevention of Significant De terioration Review; and Chapter 116, Subchapter C, Division 1 of this title (rela ting to Plant-Wide Applicability Limits, have the following meanings, unless the co ntext clearly indicates otherwise.

7 See section I.C.1 for further information of the Texas Infrastructure SIP.

8 Revisions to the section title and the introductory para graph to §116.12, as submitted adopted by TCEQ on February 9, 2011 (submitted March 11, 2011), were approved separately on December 28, 2011, as part of the Texas Infrastructure SIP. See section I.C.1 fo r further information of the Texas Infra structure SIP. These revisions replaced and revised the former section title and introductory pa ragraph, which had been approved March 20, 2009.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-4 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* 9 (1) Actual emissions – Actual emissions as of a particular date shall equal the average rate, in tons per year (tpy), at which the unit actually emitted the pollutant during a two year period which precedes the particular date and which is representativ e of normal source operation. . . . (1) Actual emissions – Actual emissions as of a particular date are shall equal to the average rate, in tons per year (tpy), at which the unit actually emitted the pollutant during a two year period that which precedes the particular date and that which is representative of normal source operation. . . . Change is nonsubstantive Continues to meet 40

CFR 51.165(a)(1)(xii)(B) and 51.166(b)(21)(ii)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* 10 . . . The executive director shall allow the use of a different time period upon a determination that it is more representative of normal source operation.

... . . . The executive director shall allow the use of a different time period upon a determination that it is more representative of normal source operation, except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plant-wide applicability limit. Instead, paragraph (3) of this section relating to baseline actual emissions shall apply for this purpose.

... Meets 40 CFR 51.165(a)(1)(xii)(B) and 51.166(b)(21)(ii)

Current SIP Approved 3/20/2009 ... Actual emissions shall be calculated using the unit’s actual operating hours, production rates, and types or materials processed, stored, or combusted during the selected time period. The executive direct or may presume that the source-specific allowable emissions for the unit are equivalent to the actual emissions, e.g., when the allowable limit is reflective of actual emissions. For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit the unit on that date. These sentences were not revised in the 6/10/2005 and 2/1/2006 submittals. Continues to meet 40

CFR 51.165(a)(1)(xii) and 51.166(b)(21)

9 In this chart, 3/11/2011-1 refers to Rule Project No. 2008-030-116-PR, relating to One Hour Ozone Major Source Thresholds and Emission Offsets, submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on June 10, 2005, without change.

10 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-5 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* (2) Allowable emissions – The emissions rate of a stationary source, calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both), and the most stringent of the following: (2) Allowable emissions – The emissions rate of a stationary source, calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits that which restrict the operating rate, or hours of operation, or both), and the most stringent of the following: Non-substantive changes Continues to meet 40

CFR 51.165(a)(1)(xi) and 51.166(b)(16)

(A) the applicable standards set forth in Title 40 Code of Federal Regulations (CFR), Part 60 or 61; (A) the applicable standards specified set forth in Title 40 Code of Federal Regulations (CFR), Part 60 or 61; Current SIP Approved 3/20/2009. (B) the applicable state implementation plan emissions limitation including those with a future compliance date; or No changes submitted Continues to meet 40

CFR 51.165(a)(1)(xi) and 51.166(b)(16) (C) the emissions rate specified as a federally enforceable permit condition including those with a future compliance date. Under Review Revisions submitted 2/1/2006 Resubmitted 3/11/2011-2* (3) Baseline actual emissions – The rate of emissions, in tons per year, or a federally regulated new source review pollutant. Meets 40 CFR 51.165(a)(1)(xxxv) and 51.166(b)(47) Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2 Revision submitted 3/11/2011-2

(A) For any existing electric utility steam generating unit, baseline actual emissions means the rate, in tons per year at which the unit actually emitted the pollutant during any consecutive 24- month period selected by the owner or operator within the five-year period immediately preceding when the owner or operator begin actual construction of the project. The executive director shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (A) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the five-year period immediately preceding when the owner or operator begins actual construction of the pr oject. The executive director shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Relates to grounds for the 9/15/2010 disapproval Revisions submitted 3/11/2011-2 address these grounds for disapproval See sections IV.C.1.v and

IV.D.1.iii for further information

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-6 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2 Revision submitted 3/11/2011-2

(B) For an existing facility (other than an electric utility steam generating unit), baseline actual emissions means the rate, in tons per year at which the facility actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the ten-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete application is received for a permit. The rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply with the exception of those required under 40 CFR Code of Federal Regulations Part 63, had such major stationary source been required to comply with such limitation during the consecutive 24-month period. (B) For an existing facility (other than an electric utility steam generating unit), baseline actual emissions means the
average rate, in tons per year, at which the facility actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the ten-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received for a permit. The rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply with the exception of those required under 40 Code of Federal Regulations Part 63, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. Relates to grounds for the 9/15/2010 disapproval Revisions submitted 3/11/2011-2 address the grounds for disapproval Meets the requirements of

40 CFR 51.165(a)(1)(xxxv)-(B) and (B)(3) 51.166(b)(47)(ii) and (ii)(c) 11 See sections IV.C.1.v and

IV.D.1.iii for further information

Under Review Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (C) For a new facility, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, fo r all other purposes, shall equal the unit's potential to emit. Meets 40 CFR 51.165(a)(1)(xxxv)(C) and 51.166(b)(47)(iii)

11 The provision in these Federal rules that requires that “the 10 year period shall not include any period earlier than November 15, 1990" is addressed in the last sentence of §116.12(3)(D).

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-7 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2 Revision submitted 3/11/2011-2

(D) The actual rate shall beadjusted downward to exclude any noncompliant emissions that occurred during the consecutive 24-month period. For each regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24- month period can be used For each regulated NSR pollutant. The rate shall not be based on any consecutive 24- month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount. Baseline emissions cannot occur prior to November 15, 1990. (D) The actual average rate shall beadjusted downward to exclude any noncompliant emissions that occurred during the consecutive 24-month period. For each regulated new source review pollutant, when a project involves multiple facilities, only one consecutive 24-month period must be used to determine the baseline actual emissions for the facilities being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. The average rate shall not be based on any consecutive 24- month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount. Baseline emissions cannot occur prior to November 15, 1990. Relates to grounds for the 9/15/2010 disapproval Revisions submitted 3/11/2011-2 address the grounds for disapproval See sections IV.C.1.v,

IV.D.1.ii, and IV.D.1.iii for further information

(E) The actual emissions rate shall include fugitive emissions to the extent quantifiable. Until March 1, 2016, emissions previously demonstrated as emissions events or historically exempted under Chapter 101 of this title, (relating to General Air Quality Rules), may be included to the extent that they have been authorized, or are being authorized, in a permit action under Chapter 116. (E) The actual average emissions rate shall include fugitive emissions to the extent quantifiable

. Until March 1, 2016, emissions previously demonstrated as resulting from planned maintenance, startup, or shutdown activities; as emissions events or historically unauthorized; and subject to reporting under Chapter 101 of this title (relating to General Air Quality Rules) shall be included to the extent exempted under Chapter 101 of this title, (relating to General Air Quality Rules), may be include d to the extent that they have been authorized. Relates to grounds for the 9/15/2010 disapproval. Revisions submitted 3/11/2011-2 address the grounds for disapproval. See sections IV.C.1.v, IV.D.1.ii, and IV.D.1.iii for further information

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-8 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (4) Basic design parameters – For a process unit at a steam electric generating facility, the owner or operator may select as its basic design parameters either maximum hourly heat input and maximum hourly fuel consumption rate or maximum hourly electric output rate and maximum st eam flow rate. When establishing fuel consumption specifications in terms of weight or volume, the minimum fuel quality based on British Thermal Units content shall be used for determining the basic design parameters for a coal-fired electric utility steam generating unit. The basic design parameters for any process unit that is not at a steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate of product output. Combustion process units will typically use maximum rate of fuel input. For sources having multiple end products and raw materials, the owner or operator should consider the primary product or primary raw material when selecting a basic design parameter. The owner or operator may propose an alternative basic design parameter for the source’s process units, if the owner or operator believes the basic operating design parameter as defined in this paragraph is not appropriate for the specific industry or type of process unit. If the executive director approves of the use of, an alternative basic design parameter, that basic design parameter shall be identified and compliance required in a condition of th e permit that is legally enforceable. Similar to 40 CFR 51.165(h)(2)(i)-(iii) and 51.166(y)(2)(i)-(iii) Meets Federal

requirements. See Note below for

further information 12

(A) The owner or operator shall use credib le information, such as results of historic maximum capability tests, design information from the manufacturer, or engineering calculations, in establishing the magnitude of the basic design parameters. (B) If design information is not availabl e for a process unit, then the owner or operator shall determine the process unit’s basic design parameter(s) using the maximum value achieved by the process un it in the five-year period immediately preceding the planned activity. (C) Efficiency of a process unit is not a basic design parameter.

12 30 TAC 116.12(4) – Definition of Basic design parameters : This term, “basic design parameters” is defined in 40 CFR 51.165( h)(2) and 51.166(y)(2) as part of the e quipment replacement provi sions (ERP) that EPA promulgated October 27, 2003 (68 FR 61247). The ERP was v acated by the D,C, Circuit in New York v, EPA on March 17, 2006.
On November 7, 2003 (68 FR 63 021), EPA promulgated a definition of “replacement unit” under 40 CFR 51.165(a)(1)(xxi) and 51.166(b)(32), which cross-references the definition of “basic design parameters.” This definition is approvable because TCEQ adopt ed the definition of “basic design parameters” not to implement the ERP , but to implement the definiti on of “replacement unit” in 30 TAC 116.12(31) which uses the term “basic design parameters.”

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-9 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Rev submitted 2/1/2006 Resubmitted 3/11/2011-1* Resubmitted 3/11/2011-2*

(3) Begin actual construction – In general,initiation of physical onsite construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operation, this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. (3) Begin actual construction – In general, initiation of physical onsite construction activities on an emissions unit that which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operation, this term refers to those on-site activities other than preparatory activities that which mark the initiation of the change. (5) (3) Begin actual construction – In general, initiation of physical onsite construction activities on an emissions unit that are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operation, this term refers to those on-site activities other than preparatory activities that mark the initiation of the change. Nonsubstantive changes to current SIP Continues to meet 40

CFR 51.165(a)(1)(xv) and 51.166 (b)(11)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-10 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2*

(4) Building, structure, facility, or installation – All of the pollutant-emitting activities which belong to the same industrial grouping are located in one or more contiguous or adjacent properties, and are under the control of the same person (or persons under commoncontrol). Pollutantemitting activities shall be considered as part of the same industrial grouping if they belong to the same “Major Group” (i.e.,which have the same twodigit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 supplement. (4) Building, structure, facility, or installation – All of the pollutant-emitting activities that which belong to the same industrial grouping are located in one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant emitting activities are shall be considered to be as part of the same industrial grouping if they belong to the same “Major Group” (i.e., that which have the same two-digit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 supplement. (6) (4) Building, structure, facility, or installation – All of the pollutant-emitting activities that belong to the same industrial grouping are located in one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant emitting activities are shall be considered to be as part of the same industrial grouping if they belong to the same “Major Group” (i.e., that have the same two-digit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 supplement. Nonsubstantive changes to current SIP Continues to meet 40

CFR 51.165(a)(1)(ii) and 51.166(b)(6)

Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (7) Clean coal technology – any technology, including technologies applied at the precombustion, combustion, or post combus tion stage, at a new or existing facility which will achieve significant reductions in air emissions of sulfur dioxide or oxides of nitrogen associated with the utilization of coal in the generation of electricity, or process steam which was not in widespread use as of November 15, 1990. Meets 40 CFR 51.165(a)(1)(xxiii) and 51.166(b)(33)

(8) Clean coal technology demonstration project – A project using funds appropriated under the heading “Department of Energy -- Clean Co al Technology”, up to a total amount of $2,500,000,000 fo r commercial demonstration of clean coal technology, or similar projects funded through appropriations for the Environmental Protection Agency. The Federal contribution for a qualifying project shall be at least 20 percent of the total cost of the demonstration project. Meets 40 CFR 51.165(a)(1)(xxiv) and 51.166(b)(34)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-11 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Revisions submitted 2/1/2006. Resubmitted 3/11/2011-2* (5) Commence – As applied to construction of a major stationary source or major modification, means that the owner or operator has all necessary preconstruction approvals or permits and either has: (9) (5) Commence – As applied to construction of a major stationary source or major modification, means that the owner or operator has all necessary preconstruction approvals or permits and either has: Nonsubstantive change Continues to meet 40

CFR 51.165(a)(1)(xvi) and 51.166(b)(9)

Current SIP Approved 3/20/2009. (A) begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or No change. Continues to meet 40

CFR 51.165(a)(1)(xvi)(A) & (B) and 51.166(b)(9)(i) & (ii) (B) entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2*

(6) Construction – Any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in a change in actual emissions. (6) Construction – Any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that which would result in a change in actual emissions. (10) (6) Construction – Any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in actual emissions. Nonsubstantive change. Continues to meet 40

CFR 51.165(a)(1)(xviii) and 51.166(8)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-12 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (7) Contemporaneous period – As follows. (7) Contemporaneous period – As follows. (11) (7) Contemporaneous period

– Nonsubstantive change. Continues to meet 40

CFR 51.165(a)(1)(vi)(B) and 51.166(3)(ii) Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* (A) For major sources with the potential to emit 250 tons per year (tpy) or more of a nonattainment pollutant, the period between: (A) For major sources with the potential to emit 250 tons per year (tpy) or more of a nonattainment pollutant, the period between: Meets 40 CFR 51.165(a)(1)(vi)(B) and (C)(1); and 51.166(b)(3)(ii) under Federal definitions of “net emissions increase” (i) November 15, 1992; and (i) November 15, 1992; and (ii) the date that the increase from the particular change occurs. (A) (ii) the date that the increase from the particular change occurs. (B) 60 months prior to the date that construction on the particular change

occurs. (B) For major sources with the potential to emit less than 250 tpy of a nonattainment pollutant, the period between: (B) For major sources with the potential to emit less than 250 tpy of a nonattainment pollutant, the period between: (i) the date five years before construction on the particular change commences; and (i) the date five years before construction on the particular change commences; and (ii) the date that the increase from the particular change occurs. (ii) the date that the increase from the particular change occurs. (C) Notwithstanding subparagraphs (A) and (B) of this definition, for major sources of nitrogen oxides as a precursor to ozone in ozone nonattainment areas, the contemporaneous period shall begin no earlier than November 15, 1992. (C) Notwithstanding subparagraphs (A) and (B) of this definition, for major sources of nitrogen oxides as a precursor to ozone in ozone nonattainment areas, the contemporaneous period shall begin no earlier than November 15, 1992.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-13 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2*

(8) De minimis threshold test (netting) - A method of determining if a proposed emission increase will trigger nonattainment review. The summation of the proposed increase with all other creditable source emission increases and decreases during the contemporaneous period is compared to the MAJOR MODIFICATION column of Table I (in tons per year) for that specific nonattainment area. If the major modification level is exceeded, then nonattainment review is required. (8) De minimis De minimis threshold test (netting) – A method of determining if a proposed emission increase will trigger nonattainment review. The summation of the proposed increase in tons per year with all other creditable source emission increases and decreases during the contemporaneous period is compared to the MAJOR MODIFICATION column of Table I located in the definition of major modification in this section (in tons per year) for that specific nonattainment area. If the major modification level is exceeded, then nonattainment review is required. (12) (8) De minimis threshold test (netting) – A method of determining if a proposed emission increase will trigger nonattainment or prevention of significant deterioration review. The summation of the proposed project emission increase in tons per year with all other creditable source emission increases and decreases during the contemporaneous period is compared to the significant level MAJOR MODIFICATION column of Table I located in the definition of major modification in this section (in tons per year) for that specific nonattainment area. If the significant major modification level is exceeded, then prevention of significant deterioration and/or nonattainment review is required. Reorganized the definition to include PSD changes Non-substantive changes

to the current SIP. Meets 40 CFR 51.165(a)(v)(1)(A)( 1 )- ( 2 ) and 51.166(b)(2)(i) Also meets 40 CFR 51.165(a)(2)(ii) and 51.166(a)(7)

Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (13) Electric utility steam generating unit - Any steam electric generating unit that is constructed for the purpose of supp lying more than one-third of its potential electric output capacity and more than 25 MW electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator th at would produce electrical energy for sale is included in determining the electrical energy ou tput capacity of the affected facility. Meets 40 CFR 51.165(a)(1)(xx) and 51.166(b)(30)

Approved 12/28/2011 13 Approved in Texas Infrastructure SIP (14) Federally regulated NSR pollutant - * * *

13 The new definition of “federally regulated NSR pollutant” as adopted by TCEQ on February 9, 2011 (submitted March 11, 2011-2), was approved separately Decemb er 28, 2011, were approved separately as part of the Texas Infrastructure SIP. See section I.C.1 for furt her information of the Texas Infrastructure SIP.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-14 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-1* Resubmitted 3/11/2011-2* (9) Lowest achievable emission rate – For any emitting facility, that rate of emissions of a contaminant which does not exceed the amount allowable under applicable New Source Performance Standards promulgated by the EPA under FCAA, §111, and which reflects the following: (9) Lowest achievable emission rate - For any emitting facility, that rate of emissions of a contaminant that which does not exceed the amount allowable under applicable new source performance standards New Source Performance Standards promulgated by the United States Environmental Protection Agency EPA under 42 United States Code, §7411 FCAA, §111, and that which reflects the following: (15) (9) Lowest achievable emission rate - For any emitting facility, that rate of emissions of a contaminant that does not exceed the amount allowable under applicable new source performance standards promulgated by the United States Environmental Protection Agency under 42 United States Code, §7411 FCAA, §111, and that reflects the following: No substantive change Continues to meet 40

CFR 51.165(a)(xiii)(A) & (B)

Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* (A) the most stringent emission limitation which is contained in the rules and regulations of any approved SIP for a specific class or category of facility, unless the owner or operator of the proposed facility demonstrates that such limitations are not achievable; or (A) the most stringent emission limitation that which is contained in the rules and regulations of any approved SIP for a specific class or category of facility, unless the owner or operator of the proposed facility demonstrates that such limitations are not achievable; or (B) the most stringent emission limitation which is achieved in practice by a specific class or category of facilities, whichever is more stringent. (B) the most stringent emission limitation that which is achieved in practice by a specific class or category of facilities, whichever is more stringent. Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (16) Major facility - Any facility that emits or ha s the potential to emit 100 tons per year or more of a plant-wide applicabilit y (PAL) pollutant in an attainment area; or any facility that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant in Table I of this section for nonattainment areas Meets 40 CFR 51.165(f)(2)(iv) and 51.166(w)(2)(iv)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-15 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Approved in Texas Infrastructure SIP Approved 12/28/2011 14 (17) (10) Major facility/ stationary source - * * * (18) (11) Major modification - * * * Current SIP Under Review Approved 3/20/2009 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2*

(12) Necessary preconstruction approvals or permits – Those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the applicable state implementation plan. (12) Necessary preconstruction approvals or permits – Those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations that which are part of the applicable state implementation plan. (19) (12) Necessary preconstruction approvals or permits – Those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations that are part of the applicable state implementation plan. Nonsubstantive change Continues to meet 40

CFR 51.165(a)(1)(xvii) and 51.166(b)(10)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (13) Net emissions increase – The amount by which the sum of the following exceeds zero: the total increase in actual emissions from a particular physical change or change in the method of operation at a stationary source, plus any sourcewide creditable contemporaneous emission increases, minus any sourcewide creditable contemporaneous emission decreases. (20) (13) Net emissions increase – The amount by which the sum of the following exceeds zero: the project emissions increase total increase in actual emissions from a particular physical change or change in the method of operation at a stationary source, plus any sourcewide creditable contemporaneous emission increases, minus any sourcewide creditable contemporaneous emission decreases. Baseline actual emissions shall be used to determine emissions increases and decreases. Nonsubstantive change Continues to meet 40

CFR 51.165(a)(1)(vi)((A) and 61.166(b)(3)(i)(a)- (b)

14 The revisions to the definitions of “major stationary source” and “major modification” in paragraphs (17) and (18), respectively, as adopted by TCEQ on February 9, 2011 (submitted March 11, 2011), were approved separately on December 28, 2011, as part of the Texa s Infrastructure SIP. See section I.C. 1 for further information of the Texas Infrastructure SIP. These definitions repl aced and revised the former definitions of “major facility/stationary source” and “major modification” that were formerly in paragraphs (10) and (11) respectively, which had been approved March 20, 2009.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-16 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (A) An increase or decrease in actual emissions is creditable only if both of the following conditions are

met: (A) An increase or decrease in actual emissions is creditable only if both of the following conditions are met: Meets 40 51.165(a(1)(vi)(C)(2) and 51.166(b)(3)(iii)(b) & (3)(iv) (i) it occurs during the contemporaneous period; and (i) it occurs during the contemporaneous period; and (ii) the executive director has not relied on it in issuing a nonattainment permit for the source (under regulations approved during which the permit is in effect) when the increase in actual emissions from the particular change occurs. (ii) the executive director has not relied on it in issuing a federal new source review permit nonattainment permit for the source and the permit is in effect when the increase in actual emissions from the particular change occurs; and

.

Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2*

(iii) in the case of prevention of significan t deterioration review only, an increase or decrease in emissions of sulf ur dioxide, particulate matter, or nitrogen oxides that occurs before the applicable major source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. Meets 40 51.165(a(1)(vi)(C)(2) and 51.166(b)(3)(iii)(b) & (3)(iv)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (B) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds old level. (B) An increase in actual emissions is creditable if the result of a physical change in, or change in the method of operation of a stationary source only to the extent that the new level of actual emissions exceeds the baseline actual emission rate. Emission increases at facilities under a plant-wide applicability limit are not creditable old level

. Meets 40 CFR 51.165(a(1)(vi)(D) and 51.166(b)(3)(v)

(C) A decrease in actual emissions is creditable only to the extent that all of the following conditions are

met: (C) A decrease in actual emissions is creditable only to the extent that all of the following conditions are met: Meets 40 CFR 51.165(a(1)(vi)(D) and 51.166(b)(3)(v)

(i) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; (i) the baseline actual emission rate old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; Meets 40 CFR 51.165(a(1)(vi)(D) and 51.166(b)(3)(v)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-17 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev Sub 3/11/2011-2

(ii) it is federally enforceable at and after the time that actual construction on the particular change begins; (ii) it is federally enforceable at and after the time that actual construction on the particular change begins; (ii) it is federally enforceable at and after the time that actual construction on the particular change begins; Meets 40 CFR 51.165(a)(1)(vi)(E)(2) and 51.166(b)(3)(vi)(b)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (iii) the reviewing authority has not relied on it in issuing a Prevention of Significant Deterioration or a nonattainment permit;, or the state has not relied on it in demonstrating attainment or reasonable further progress; and (iii) the executive director reviewing authority has not relied on it in issuing a prevention of significant deterioration Prevention of Significant Deterioration or a nonattainment permit; or the state has not relied on the decrease to demonstrate attainment or reasonable further progress; and Meets 40 CFR 51.165(a(1)(vi)(E)(3) 15 and 51.166(b)(3)(ii)(b)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (iv) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (iv) the decrease it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. ; and Nonsubstantive change. Continues to meet 40

CFR 51.165(a)(1)(vi)(E)(iv) and 51.165(b)(iv)(c) Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2*

(v) in the case of nonattainment applicability analysis only, the state has not relied on it in demonstrating attainment or reasonable further progress. Meets 40 CFR 51.165(a)(1)(vi)(E)(3) 16
Current SIP Approved 3/20/2009 (D) An increase that results from a phys ical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. No change Continues to meet 40

CFR 51.165(a)(1)(vi)(F) and 51.166(b)(3)(vii)

15 The second clause of 40 CFR 51.165(a)(1)(vi)(E)(3) provides that a decrease is credible if the reviewing authority “has not relied on [the decrease] in demonstra ting attainment or reasonable further progress.” TCEQ includes this requirement in §116.12(C)(v), below.

16 The first clause of 40 CFR 51.165(a)(1)(vi)(E)(3) pr ovides that a decrease is credible if the reviewing authority “has not relied on [the decrease] in issuing any permit under regulations approved pursuant to 40 CFR part 51 subpart I or the State ... .” TCEQ incl udes this requirement in §116.12(C)(iii).

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-18 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* (E) At major sources with the potential to emit 250 tpy or more of a nonattainment pollutant: (E) At major sources with the potential to emit 250 tpy or more of a nonattainment pollutant: The removal of ¶¶(E)-(F) meets 40 CFR 51.165(a)(1)(vi)(B) and 51.166(b)(3)(ii) (i) increases and decreases of such pollutant resulting from authorizations or ap plications received before November 15, 1992, are creditable to the extent that the increases or decreases occur within the period five years prior to the date construction on a particular change commences and meet all other creditability criteria; and (i) increases and decreases of such pollutant resulting from authorizations or ap plications received before November 15, 1992, are cr editable to the extent that the increases or decreases occur within the period five years prior to the date construction on a particular change commences and meet all other creditability criteria; and (ii) increases and decreases of such pollutant resulting from authorizations or app lications received on or after November 15, 1992, are creditable indefinitely to the extent that all other creditability criteria are met. (ii) increases and decreases of such pollutant resulting from authorizations or app lications received on or after November 15, 1992, are creditable indefinitely to the extent that all other creditability criteria are met. (F) For all major sources of NO x in ozone nonattainment areas, increases and decreases of NO x are creditable only if they resulted from authorizations or applications received on or after November 15, 1992. (F) For all major sources of NO x in ozone nonattainment areas, increases and dec reases of NO x are creditable only if they resulted from authorizations or applications received on or after November 15, 1992. The removal of ¶¶(E)-(F) meets 40 CFR 51.165(a)(1)(vi)(B) and 51.166(b)(3)(ii)

Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (14) Offset ratio – (21) (14) Offset ratio – Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* For the purpose of satisfying the emissions offset reduction requirements of the FCAA, §173(a)(1)A), emissions offset ratio is the ratio of total actual reductions of emissions to total allowable emissions increases of such pollutants. ...

Continued on next page For the purpose of satisfying the emissions offset reduction requirements of 42 United States Code, §7503(a)(1)(A)

, the emissions offset ratio is the ratio of total actual reductions of emissions to total allowable emissions increases of such pollutants. ...

Continued on next page See Note below 17

17 This is a non-substantive change that meets 40 CF R 51.165(a)(3) and the approved SIP at Chapter 101, Subchapter H, Divisions 1 and 4.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-19 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1*

Continued from previous page ... The minimum offset ratios are included in Table I of this section under the definition of major modification. In order for a reduction to qualify as an offset, it must be certified under Chapter 101, Subchapter H, Division 1 or 4 of this title (relating to Emission Credit Banking or Trading; or Discrete Emission Credit Banking and Trading, except as provided for in §116.170(b) of this title (relating to Applicability of Emission Reductions as Offsets). The reduction must not have been relied on in the issuance of a previous nonattainment or prevention of significant deterioration permit. Continued from previous page ... The minimum offset ratios are included in Table I under the definition of major modification of this section . In order for a reduction to qualify as an offset, it must be certified under Chapter 101, Subchapter H, Division 1 or 4 of this title (relating to Emission Credit Banking or Trading; or Discrete Emission Credit Banking and Trading, except as provided for in §116.170(b) of this title (relating to Applicability of Emission Reductions as Offsets). The reduction must not have been relied on in the issuance of a previous nonattainment or prevention of significant deterioration permit. Same as comments on previous page.

Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (22) Plant-wide applicability limit – An emission limitation expressed, in tons per year, for a pollutant at a major stationary source, that is enforceable and established in a plant-wide applicability limit permit under §116.186 of this title (relating to General and Special Conditions). The revisions submitted 3/11/2011-2 and the TCEQ letter dated 5/3/2012 ensure that this definition meets Federal requirements See section IV.C.2.ii for

further information Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* Rev proposed 2/22/2012 Parallel processed w/ EPA proposal (23) Plant-wide applicability limit effective date - The date of issuance of the of the plantwide applicability limit permit. The plant-wide applicability limit effective date for a plant-wide applicability limit permit established in an existing flexible permit is the date that the flexible permit was issued. (23) Plant-wide applicability limit effective date - The date of issuance of the of the plantwide applicability limit permit. The plant

- wide applicability limit effective date for a plant

- wide applicability limit permit established in an existing flexible permit is the date that the flexible permit was issued. As proposed 2/22/2012, this definition would meet 40 CFR 51.165(f)(2)(vi) and 51.166(w)(2)(vi). Also see section IV.C.2.i

for further information

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-20 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (24) Plant-wide applicability limit major modification - Any physical change in, or change in the method of operation of th e plant-wide applicability limit source that causes it to emit the plant-wide applicability limit pollutant at a level equal to or greater than the plant-wide applicability limit. Meets 40 CFR 51.165(f)(2)(viii) and 51.166(w)(2)(viii)

(25) Plant-wide applicability limit permit - The new source review permit that establishes the plant-wide applicability limit. Meets 40 CFR 51.165(f)(2)(ix) and 51.166(w)(2)(ix) (26) Plant-wide applicability limit pollutant - The pollutant for which a plantwide applicability limit is established at a major stationary source. Meets 40 CFR 51.165(f)(2)(x) and 51.166(w)(2)(x) Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (15) Potential to emit – (27) (15) Potential to emit – Nonsubstantive change Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* The maximum capacity of a facility/stationary source to emit a pollutant under its physical and operational design. Any physical or enforceable operational limitation on the capacity of the facility/stationary source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. Secondary emissions, as defined in 40 CFR 51.165(a)(1)(viii), do not count in determining the potential to emit for a stationary source. The maximum capacity of a facility/stationary source to emit a pollutant under its physical and operational design. Any physical or enforceable operational limitation on the capacity of the facility/stationary source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, may shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. Secondary emissions, as defined in 40 CFR 51.165(a)(1)(viii), do not count in determining the potential to emit for a stationary source. Nonsubstantive change Continues to meet 40

CFR 51.165(a)(1)(iii) and 51.166(b)(4)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-21 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (16) Project net – (28) (16) Project net – Nonsubstantive change. Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* The sum of the following: the total proposed increase in emissions resulting from a physical change or change in the method of operation at a stationary source, minus any sourcewide creditable actual emission decreases proposed at the source between the date of application for the modification and the date the resultant modification begins emitting. Increases and decreases must meet the creditability criteria listed under paragraph (13) of this section. The sum of the following: the total proposed increase in emissions resulting from a physical change or change in the method of operation at a stationary source, minus any sourcewide creditable actual emission decreases proposed at the source between the date of application for the modification and the date the resultant modification begins emitting. Increases and decreases must meet the creditability criteria listed under the definition of net emissions increase in of this section. Nonsubstantive change. Continues to meet the

applicability process for serious and severe ozone nonattainment areas discussed at our proposed approval at 65 FR 2560, at 2565- 2566 (January 18, 2000) an our final approval at 65 FR 43986, at 43990 (July 17, 2000)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-22 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2 Re vision submitted 3/11/2011-2

(29) Projected actual emissions

- The maximum annual rate, in tons per year, at which an existing facility is projected to emit a federally regulated new source review pollutant in any rolling 12 month period during the five years following the date the facility resumes regular operation after the project, or in any one of the ten years following that date, if the project involves increasing the facility's design capacity or its potential to emit that federally regulated new source review pollutant. In determining the projected actual emissions, the owner or operator of the major stationary source shall include fugitive emissions to the extent quantifiable and shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved state implementation plan. (29) Projected actual emissions --The maximum annual rate, in tons per year, at which an existing facility is projected to emit a federally regulated new source review pollutant in any rolling 12-month period during the five years following the date the facility resumes regular operation after the project, or in any one of the ten years following that date, if the project involves increasing the facility's design capacity or its potential to emit that federally regulated new source review pollutant. In determining the projected actual emissions, the owner or operator of the major stationary source shall include unauthorized emissions from planned maintenance, startup, or shutdown activities, which were historically unauthorized and subject to reporting under Chapter 101 of this title, to the extent they have been authorized, or are being authorized; and fugitive emissions to the extent quantifiable; and shall consider all relevant information, including, but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved state implementation plan. Relates to grounds for the 9/15/2010 disapproval The revisions submitted 3/11/2011-2 meet the Federal requirements concerning emissions from maintenance, startups, and shutdowns at 40 CFR 51.165(a)(1)(xxxv)(A)( 1) & (B)(1) and 51.166(b)(47)(i)(a) & (ii)(a) See section IV.D.1.ii for further information

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-23 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (30) Project emissions increase - the sum of emissions increases for each modified or affected facility determined using the following methods: (A) For existing facilities, the difference between the projected actual emissions and the baseline actual emissions. In calculati ng any increase in emissions that results from the project, that portion of the facility's emissions following the project that the facility could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions and th at are also unrelated to the particular project, including any increased utilization due to product demand growth may be excluded from the project emission increase. The potential to emit from the facility following completion of the project may be used in lieu of the projected actual emission rate. First sentence meets 40 CFR 51.165(a)(2)(ii)(C) and 51.166(a)(7)(iv)(c) Second and third sentences meet 40 CFR 51.165(a)(1)(xxviii)(B) (3)-(4) and 51.166(b)(40)(ii)(c)-(d)

(B) For new facilities, the difference be tween the potential to emit from the facility following completion of the project and the baseline actual emissions. Meets 40 CFR 51.165(a)(2)(ii)(D) and 51.166(a)(7)(iv)(d) (31) Replacement facility - A facility that satisfies the following criteria: Meets 40 CFR 51.165(a)(1)(xxi) and 51.166(b)(32) 18 19
Meets 40 CFR 51.165(a)(1)(vii)(B) and 51.166(b)(7)(ii) (A) the facility is a reconstructed unit within the meaning of 40 Code of Federal Regulations §60.15(b)(1), or the f acility replaces an existing facility; (B) the facility is identical to or functi onally equivalent to the replaced facility; (C) the replacement does not alter the basic design parameters of the process unit; (D) the replaced facility is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit condition that is enfo rceable. If the replaced facility is brought back into operation, it shall constitute a new facility. No creditable emission reductions shall be generated from shutting down the existing facility that is replaced. The replacement facility is considered an ex isting facility for the purpose of determining federal new source review applicability.

18 The requirements of the last sentence of the Federal rule is addressed in §116.12(31)(D) - 3rd sentence.

19 See discussion in the NOTE under the definition of “basic design parameters” at §116.12(4) for further discussion of the basis for using the term “basic design parameters” as referenced in §116.12(31)(C).

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-24 Annotation of Submitted Revisions to §116.12 Comments
Current SIP Under Review Approved 3/20/2009 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (17) Secondary emissions – (32) (17) Secondary emissions – Nonsubstantive change Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Emissions which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the source or modification itself. Secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any off-site support facility which would not be constructed or increase its emissions, except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source such as emissions from the tail pipe of a motor vehicle, from a train, or from a vessel. Emissions that which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the source or modification itself. Secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification that which causes the secondary emissions. Secondaryemissions include emissions from any offsite support facility that which would not be constructed or increase its emissions, except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions that which come directly from a mobile source such as emissions from the tail pipe of a motor vehicle, from a train, or from a vessel. Nonsubstantive change Continues to meet 40

CFR 51.165(a)(1)(viii) and 51.166(b)(18)

Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011-2* (33) Significant facility - A facility that emits or has the potential to emit a plantwide applicability limit (PAL) pollutant that is equal to or greater than the significant level for that PAL pollutant. Meets 40 CFR 51.165(f)(2)(xi) and CFR 51.166(w)(2)(xi) (34) Small facility - A facility that emits or has the potential to emit a plant-wide applicability limit (PAL) pollutant in an amount less than the significant level for that PAL pollutant. Meets 40 CFR 51.165(f)(2)(iii) and CFR 51.166(w)(2)(iii) Current SIP Under Review Approved 3/20/2009 Rev submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* (18) Stationary

source – Any building, structure, facility, or installation which emits or may emit any air pollutant subject to regulation under the FCAA. (18) Stationary source – Any building, structure, facility, or installation that which emits or may emit any air pollutant subject to regulation under 42 United States Code, §§7401 et seq the FCCA

. (35) (18) Stationary

source – Any building, structure, facility, or installation that which emits or may emit any air pollutant subject to regulation under 42 United States Code, §§7401 et seq

. Nonsubstantive change Continues to meet 40

CFR 51.165(s)(1)(i) and 51.166(b)(5)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-25 Annotation of Submitted Revisions to §116.12 Comments Under Review Revision submitted 2/1/2006 Resubmitted 3/11/2011 (NSR Reform) w/o further change (36) Temporary clean coal techno logy demonstration project - a clean coal technology demonstration project that is operated for a period of five years or less, and that complies with the state implementation plan and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. Meets 40 CFR 51.165(a)(1)(xxii) and 51.166(b)(35)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction or Modification Subchapter A – Definitions §116.12

Page 116.12-26 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.115-1 

### Evaluation of Revisions to 30 TAC 116.115 – General and Special Conditions

I. Background of 30 TAC 116.115

A. Current SIP. This section is currently SIP-approved. The current SIP was approved April 2, 2010, 75 FR 16671; eff ective June 1, 2010; as adopted by TCEQ August 20, 2003; effective September 14, 2003.

B. Submitted SIP Revisions to 30 TA C 116.115 Reviewed in this Action. March 11, 2011-2. Texas submitted a revision to 30 TAC 116.115(b)(2 )(F), adopted February 9, 2011; effective March 3, 2011.

II. Evaluation Matrix of 30 TAC 116.115

Annotation of Submitted Revisions to §116.115 Comments
Current SIP No change Approved 4/2/2010 §116.115. General and Special Conditions. * * * * * * * (b) General conditions. Holders of permit s, special permits, standard permits, and special exemptions shall co mply with the following: No change

* * * * * * * (2) the following general conditions if the permit or amendment is issued or amended on or after August 16, 1994, regardless of whether they are specifically stated within the permit document. No change

* * * * * * * Current SIP Under Review Approved 4/2/2010 Rev submitted 3/11/2011-2 1 (F) Maximum allowable emission rates. The total emissions of air contaminants from an y of the sources of emissions must not exceed the values stated on the table attached to the permit entitled “Emission Sources--Maximum Allowable Emission Rates.” (F) Maximum allowable emission rates. The total emissions of air contaminants from an y of the sources of emissions must not exceed the values stated on the table attached to the permit entitled “Emission Sources--Maximum Allowable Emission Rates.” Emissions rates that exceed the maximum allowable emission rates are not authorized and are a violation of the permit. Meets § 110(2)(A) and (C) of CAA Meets 40 CFR 51.160(a) and 51.230(b)

* * * * * * *

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.115-2 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.127-1 

### Evaluation of Revisions to 30 TAC 116.127 – Actual to Projected Actual Test for Emission Increase

I. Background of 30 TAC 116.127

A. Current SIP. This section is not currently SIP-approved.

B. Submitted 30 TAC 116.127 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011, under Rule Project No. 2010-008-116-PR. Texas initially submitted this as a new 30 TAC 116.121 adopted January 11, 2006; effective February 2, 2006. EPA disapproved 30 TAC 116.121, submitted February 1, 2006, on September 15, 2010 (75 FR 56424), effective October 15, 2010. This submittal of §116.121 was disapproved on September 15, 2010 (75 FR 56424).

2. March 11, 2011 (NSR Reform). On March 11, 2011-2, TCEQ submitted revisions (adopted February 9, 2011); effective March 3, 2011; under Rule Project No. 2008-030-116-PR. This SIP revision incl uded revisions to the following: a) Resubmittal of 30 TAC 116.121 that was disapproved by EPA on September 15, 2010; b) Repeal of 30 TAC 116.121 and readoption as new 30 TAC 116.127, without other changes to the previously submitted rule language.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.127-2 

### II. Evaluation Matrix of 30 TAC 116.127

Annotation of Submitte d Revisions to §116.127 Comments Under Review Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 1 Repeal submitted and resubmitted as §116.127 on 3/11/2011-2 §116.121. Actual to Projected Actual Test for Emissions Increases. §116.127. §116.121. Actual to Projected Actual Test for Emissions Increases. Replaced w/ new §116.127 2

Under Review Rev submitted 2/1/2006; Resubmitted 3/11/2011-2; Repeal submitted and

resubmitted as §116.127 on 3/11/2011-2* (a) If projected actual emissions are used or emissions are excluded from the emission increase resulting from the project, the owner or operator shall document and maintain a record of the following information before beginning construction, and this information will be provided as part of the notification, certification, registration, or application submitted to the executive director to claim or apply for state new source review authorization fo r the project. If the emissions unit is an existing electric utility steam generating unit, the owner or operator shall provide a copy of this information to the executive director before beginning actual construction: Meets 40 CFR 51.165(a)(6)(i)-(ii) and 51.166(r)(6)(i)-(ii) 3

(1) a description of the project; (2) identification of the facilities whose emissions of a federally regulated new source review pollutant could be affected by the project; and (3) a description of the applicability test used to determine that the project is not a major modification for any pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded from the project emissions increase and an explanation fo r why such amount was excluded, and any netting calculations, if applicable.

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

2 The only change was the redesignation from §116.121 to §116.127. There were no changes to the regulatory language.

3 The Federal rules require these records for projects for which a reasonable possibility exists that the project which is not a part of a major modification may result in a significant increase in emissions of a regulated NSR pollutant when the owner or operator elects to determine the emissions increase as the change from baseline actual emissions to projected actual emissions. In contrast, Texas’s rule requires these types of records for all such projects without regard to such reasonable possibility.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.127-3 Annotation of Submitte d Revisions to §116.127 Comments Under Review Rev submitted 2/1/2006; Resubmitted 3/11/2011-2; Repeal submitted and

resubmitted as §116.127 on 3/11/2011-2* (b) If projected actual emissions are used to determine the project emission increase at a facility, the owner or operator shall monitor the emissions of any regulated NSR pollutant that could increase as a result of th e project at that facility and calculate and maintain a record of the annual emissions from that facility, in tons per year on a calendar year basis, for: Meets 40 CFR 51.165(a)(6)(iii) and 51.166(r)(6)(iii)

(1) a period of five years following resumption of regular operations after the change; or (2) a period of ten years following resu mption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at that facility.

(c) If the facility is an electric utility steam generating unit, the owner or operator shall submit a report to the executive direct or within 60 days after the end of each year during which records must be maintained setting out the unit's annual emissions during the calendar year that preceded submission of the report. Meets 40 CFR 51.165(a)(6)(iv) and 51.166(r)(6)(iv)

(d) If the facility is not an electric utility steam generating unit, the owner or operator shall submit a report to the executive director if the annual emissions from the project exceed the baseline actual emissions by a significant amount for that pollutant, and the emissions exceed the pr econstruction projection for any facility. The report shall be submitted to the executive director within 60 days after the end of such year. The report shall contain: Meets 40 CFR 51.165(a)(6)(v) and 51.166(r)(6)(v)

(1) the name, address and telephone number of the major stationary source; and (2) the calculated actual annual emissions. (e) The owner or operator of the facility shall make the required information maintained to document projected actual em issions and any emissions excluded from the project emission increase available for review upon request for inspection by the executive director, local air pollution control program, and the general public. Meets 40 CFR 51.165(a)(7) and 51.166(r)(6)(v)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 1 – Permit Application §§116.115 and 116.127

Page 116.127-4 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-1 

### Evaluation of Revisions to 30 TAC 116.150 – Ne w Major Source or Major Modification in Ozone Nonattainment Areas

I. Background of 30 TAC 116.150

A. Current SIP. This section is currently SI P-approved. The current SIP was approved March 20, 2009, 74 FR 11851; eff ective May 19, 2009; as adopted by TCEQ August 20, 2003; effective September 14, 2003.

B. Submitted SIP Revisions to 30 TAC 116.150 Reviewed in this Action

1. June 10, 2005, and resubmitted March 11, 2011, under Rule Project No. 2008-030-116-PR. On June 10, 2005, Texas submitted revisions (adopted May 25, 2005; effective June 15, 2005. This SIP revision included revisions to the following: a) Revised and reorganized subsection (a) as new subsections (a)-(e) b) Relettered subsection (b) to subsection (f) and revised. The SIP revisions to §116.150 submitted June 15, 2005, were disapproved on September 15, 2010 (75 FR 56424).

2. February 1, 2006, and resubmitted March 3, 2011, under Rule Project No. 2010-008-116-PR. On February 1, 2006, TCEQ submitted revisions (adopted January 11, 2006; effective February 1, 2006. This SIP revision included revisions to subsections (a)-(d). The SIP revisions to §116.150 submitted February 1, 2006, were disapproved on September 15, 2010 (75 FR 56424).

3. March 11, 2011 (eight-hour ozone). On March 11, 2011, TCEQ submitted revisions (adopted February 9, 2011); effective March 3, 2011; under Rule Project No. 2012-015-116-AI. This SIP re vision included revisions to the following: a) Revisions to and reorgani zation of subsection (a); b) Revisions to subsections (b)-(c); c) Removal of subsection (d) and re-l ettering of subsections (e) and (f) to subsections (d) and (e); and d) Revisions to subsections (d ) and (e), as relettered. e) Resubmittal of revisions previously submitted June 10, 2005, and February 1, 2006.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-2 

### 4. Revisions proposed February 22, 2012 . TCEQ proposed a revision to paragraphs (a), (d)(1), and (d)(3). EPA will parallel process these revisions.

II. Evaluation Matrix of 30 TAC 116.150

Annotation of Submitted Revisions to §116.150 Comments
Current SIP Approved 3/20/2009 §116.150. New Major Source or Major Modi fication in Ozone Nonattainment Areas. No Change Current SIP Under Review Approved

3/20/2009 Rev submitted 6/10/2005 Resubmitted

3/11/2011-1 1 Rev submitted 2/1/2006 Resubmitted

3/11/2011-2 2 Rev submitted 3/11/2011-1 Rev proposed 2/22/2012 Parallel

processed w/ EPA proposal (a) This section applies to administratively complete applications submitted on or after November 15, 1992 for new construction or modification of facilities located in any area designated as nonattainment for ozone in accordance with the FCAA, §107.

... (a) This section applies to all new source review authorizations that are administratively complete after June 15, 2004, applications submitted on or after November 15, 1992 for new construction or modification of facilities located in any area designated as nonattainment for ozone in accordance with 42 United States Code (USC), §7407. the FCAA, §107. (a) This section applies to all new source review authorizations that are administratively complete after June 15, 2004, for new construction or modification of facilities as follows: located in any area designated as nonattainment for ozone in accordance with 42 United States Code (USC), §7407. (a) This section applies to all new source review authorizations for new construction or modification of facilities that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §§7407 et seq . as of the date of issuance of the permit, unless the following apply on the date of issuance of the permit: as follows: (a) This section applies to all new source review authorizations for new construction or modification of facilities or emissions units that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §§7407 et seq . as of the date of issuance of the permit, unless the following apply on the date of issuance of the permit: Relates to grounds for the 9/15/2010 disapproval The revisions submitted 3/11/2011-2 and the revisions proposed 2/22/2012, address these grounds for disapproval See discussion in

sections IV.A.1.i and IV.B.1.i for further information

1 In this chart, 3/11/2011-1 refers to Rule Project No. 2008-030-116-PR, relating to One Hour Ozone Major Source Thresholds and Emission Offsets, submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on June 10, 2005, without change.

2 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-3 Annotation of Submitted Revisions to §116.150 Comments Under Review Revision submitted 3/11/2011-1 (1) the United States Environmental Protection Agency (EPA) has made a finding of attainment; Revision is approvable. See discussion in

section IV.A for further information. (2) the EPA has approved the removal of nonattainment New Source Review requirements from the area; (3) the EPA has determined that Prevention of Significant Deterioration requirements apply in the area: or (4) the EPA determines that nonattainment NSR is no longer required for purposes of antibacksliding. Under Review Rev submitted 2/1/2006 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1

(1) for all applications for facilities that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §7407, et seq. on the effective date of this section, the issuance date of the authorization; and (1) for all applications for facilities that will be located in any area designated as nonattainment for ozone under 42 United States Code (USC), §7407, et seq. on the effective date of this section, the issuance date of the authorization; and Relates to grounds for the 9/15/2010 disapproval The removal of these

paragraphs addressed the grounds for disapproval See discussion in

sections IV.A.1.i and IV.B.1.i for further information (2) for all applications for facilities that will be located in counties for which nonattainment designation for ozone under 42 USC, §§7407, et seq. becomes effective after the effective date of this section, the date the application is administratively complete. (2) for all applications for facilities that will be located in counties for which nonattainment designation for ozone under 42 USC, §§7407, et seq. becomes effective after the effective date of this section, the date the application is administrat ively complete.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-4 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revn submitted 6/10/2005 Resubmitted

3/11/2011-1 Rev submitted 2/1/2006 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1

... The owner or operator of a proposed new or modified facility which will be a new major stationary source of volatile organic compound (VOC) emissions or nitrogen oxides (NO x ) emissions, or the owner or operator of an existing major stationary source of VOC or NO x emissions that will undergo a major modification with respect to VOC or NO x , shall meet the requirements of paragraphs (1) - (4) of this subsection, ...

Continued on next

page (b) The owner or operator of a proposed new or modified facility that which will be a new major stationary source of volatile organic compound (VOC) emissions or nitrogen oxides (NO x ) emissions, or the owner or operator of an existing major stationary source of VOC or NO x emissions that will undergo a major modification with respect to VOC or NO x , shall meet the requirements of subsection (e)(1)-(4) paragraphs (1)

- (4) of this section subsection

, ...

Continued on next

page (b) The owner or operator of a proposed new major stationary source, as defined in §116.12 of this title (relating to Nonattainment and Prevention of Significant Deterioration Review Definitions) or modified facility that will be a new major stationary

source of volatile organic compound (VOC) emissions of nitrogen oxides (NO x ) emissions, or the owner or operator of an existing major stationary source of VOC or NO x emissions that will undergo a major modification, as defined in §116.12 of this title with respect to VOC or NOx, shall meet the requirements of subsection (e)(1)-(4) of this section, ...

Continued on next

page (b) The owner or operator of a proposed new major stationary source, as defined in §116.12 of this title (relating to Nonattainment and Prevention of Significant Deterioration Review Definitions) of volatile organic compound (VOC) emissions of nitrogen oxides (NO x ) emissions, or the owner or operator of an existing stationary source of VOC or NO x emissions that will undergo a major modification, as defined in §116.12 of this title with respect to VOC or NO x , shall meet the requirements of subsection (d)(1) - (4) (e)(1)

- (4) of this section, ...

Continued on next

page Non-substantive change Reformatted from

¶(a) and redesignated to new ¶(b) Meets 40 CFR 51.165(a)(2)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-5 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revn submitted 6/10/2005 Resubmitted 3/11/2011-1 Rev submitted 2/1/2006 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1

Continued from previous page ... except as provided in subsections (b) and (c) of this section. Table I of §116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels which designate a major stationary source or major modification for those classifications.

... Continued from previous page ... except as provided in subsection (f) subsections (b) and (c) of this section. Table I located in the definition of of major modification in of §116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that which designate a major stationary source or major modification for those classifications. Continued from previous page ... except as provided in subsection (f) of this section. Table I located in the definition of major modification in §116.12 of this title specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source and significant level or major modification for those classifications. Continued from previous page ... except as provided in subsection (e) (f) of this section. Table I, located in the definition of major modification in §116.12 of this title, specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source and significant level for those classifications. Non-substantive change Reformatted from

¶(a) and redesignated to new ¶(b) Meets 40 CFR 51.165(a)(2)

Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* ... Except as noted in subsection (b) of this section regarding NO x , the threshold test (netting) shall be required for all modifications to existing major sources of VOC or NO x , unless at least one of the following conditions are met: ... (c) Except as noted in subsection (f) (b ) of this section regarding NO x , the de minimis de minimis threshold test (netting) is shall be required for all modifications to existing major sources of VOC or NO x , unless at least one of the following conditions are met: Non-substantive Reformatted from

¶(a) and designated new ¶(c) Meets 40 CFR 51.165(a)(8)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-6 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revision submitted 2/1/2006 Resubmitted 3/11/2011-1 ... the proposed emissions increases associated with a proj ect, without regard to decreases, is less than five tons per year of the individual nonattainment pollutant; (1) the proposed emissions increases associated with a proj ect, without regard to decreases, is less than five tons per year of the individual nonattainment pollutant in areas classified under the Federal Clean Air Act (FCAA), Title I, Part D, Subpart 2 (42 USC, §7511) classified as Serious or Severe ; Continues to meet applicable Federal requirements 3

Under Review Revision submitted 6/10/2005 Resubmitted 3/11/2011-1 Revision submitted 2/1/2006 Rev submitted 3/11/2011-1 (2) The proposed emissions increases associated with a proj ect, without regard to decreases, is less than 40 tons per year of the individual nonattainment pollutant in areas classified under FCAA, Title I, Part D, Subpart 1 (42 USC, §7502) and for those classified under FCAA, Title I, Part D, Subpart 2 (42 USC, §7511) classified as Marginal or Moderate; or, (2) the proposed emissions increases associated with a proj ect, without regard to decreases, is less than 40 tpy of the individual nonattainment pollutant in areas classified under the Federal Clean Air Act (FCAA),Title I, Part D, Subpart 1 (42 USC, §7502) and for those under FCAA, Title I, Part D, Subpart 1 (42 USC, §7502) and for those classified under FCAA, Title I, Part D, Subpart 2 (42 USC, §7511) classified as Marginal or Moderate; or Reformatted from ¶(a) and designated new ¶(c)(2) Meets 40 CFR 51.165(a)(2)(ii)(A)

Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* Revision submitted 2/1/2006 Resubmitted 3/11/2011-1*

... the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tons per year. (3) the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tons per
year. (3) project emissions increases are less than the significant level stated in Table I located in the definition of major modification in §116.12 of this title and when coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tons per year. Reformatted from ¶(a) and designated new ¶(c)(3) Meets 40 CFR 51.165(a)(2)- (ii)(A)

3 The submitted revisions to 30 TAC 116.150(c)(1) are non-substantive. In these submittals, a portion of existing Subsection (a) was reformatted and designated to Paragraph (c)(1). This provision continues to meet the requirements of section 182(c)(6) of the CAA consistent with the proposed approval at 65 FR 2560, at 2656-2566 (1/18/2000) and final approval at 65 FR 43986, at 43890 (7/17/2000).

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-7 Annotation of Submitted Revisions to §116.150 Comments Under Review Revision submitted 6/10/2005 Resubmitted 3/11/2011-1 Resubmitted 3/11/2011-1

(d) For the Houston-Galveston-Brazoria, Dallas-Fort Worth, and Beaumont-Port Arthur eight hour ozone nonattainment areas, if the United States Environmental Protection Agency promulgates rules requiring new source review permit applications in these areas to be evaluated for nonattainment new source review according to that area’ s one-hour standard classification, except as noted in subsection (b) of this section regarding NO x , the de minimis threshold test (netting) is required for all modifications to existing major sources of VOC or NO x in that area unless at least one of the following conditions is met: (d) For the Houston

- Galveston

- Brazoria, Dallas

- Fort Worth, and Beaumont

- Port Arthur eight hour ozone nonattainment areas, if the United St ates Environmental Protection Agency promulgates rules requiring new source review permit applications in these areas to be evaluated for nonattainment new source review according to that area’s one

- hour standard classification, except as noted in subsecti on (b) of this section regarding NO x , the de minimis threshold test (netting) is required for all modifications to existing major sources of VOC or NO x in that area unless at least one of the following conditions is

met: Relates to grounds for the 9/15/2010 disapproval TCEQ removed subsection (d) Removal of subsection (d) is consistent with 12/22/2006 DC Circuit Decision and addresses the grounds for disapproval 4 The submitted

changes address our 9/15/2010 disapproval See discussion in

section IV.A.1.i for further information (1) the proposed emissions increases associated with a proj ect, without regard to decreases, is less than five tons per year of the individual nonattainment pollutant; or (1) the proposed emissions increases associated with a project, without regard to decreases, is less than five tons per year of the individual nonattainment pollutant; or Under Review Revision submitted 6/10/2005 Resubmitted 3/11/2011- Revision submitted 2/1/2006 Revision submitted 3/11/2011-1

(2) the project emissions increases coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tpy. (2) the project emissions increases are less than the significant level stated in Table I located in the definition of major modification in §116.12 of this title and when coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tpy. (2) the project emissions increases a re less than the significant level stated in Table I located in the definition of major modification in §116.12 of this title and when coupled with project actual emissions decreases for the same pollutant, summed as the project net, are less than or equal to zero tpy.

4 South Coast Air Quality Management District, et al, v. EPA , 472 F.3d 882 (DC Cir 2006), reh’g denied 489 F.3d 1245 (2007) (clari fying that the vacatur was limited to the issues on which the court granted the petitions for review.)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-8 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1

In applying the de minimis test, if the net emissions increases, aggregated over the contemporaneous period, are greater than the major modification levels in Table I located in the definition of major modification in §116.12 of this title, then the following requirements apply. (e) In applying the de minimis de minimis test, if the net emissions increases, aggregated over the contemporaneous period, are greater than the major modification levels in Table I located in the definition of major modification in §116.12 of this title, then the following requirements apply. (d) (e) In applying the de minimis threshold test, if the net emissions increases are greater than the significant levels stated in Table I located in the definition of major modification in §116.12 of this title, the following requirements apply. Non-substantive Continues to meet 40

CFR 51.165(a)(2)- (ii)(A)-(D)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-9 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev proposed 2/22/2012 Parallel processed w/ EPA

proposal (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or modification except as provided in paragraph (3)(B) of this subsection and except for existing major stationary sources that have a potential to emit (PTE) less than 100 tpy of the applicable pollutant. For these sources, best available control technology (BACT) can be substituted for LAER. LAER shall otherwise be applied for each new emission unit and to each existing emission unit at which the net emissions increase will occur as the result of a physical change or change in method of operation of the unit. (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or modification except as provided in paragraph (3)(B) of this subsection and except for existing major stationary sources that have a potential to emit (PTE) less than 100 tpy of the applicable pollutant. For these sources, best available control technology (BACT) can be substituted for LAER. LAER shall otherwise be applied for each new facility emission unit and to each existing facility emission unit at which the net emissions increase will occur as the result of a physical change or change in method of operation of the unit. (1) The proposed facility or emissions unit shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility or emissions unit is a new major source or modification except as provided in paragraph (3)(B) of this subsection and except for existing major stationary sources that have a potential to emit (PTE) less than 100 tpy of the applicable pollutant. For these sources, best available control technology (BACT) can be substituted for LAER. LAER shall otherwise be applied for each new f acility or emissions unit and to each existing facility or emissions unit at which the net emissions increase will occur as the result of a physical change or change in method of operation of the unit. Relates to grounds for the 9/15/2010 disapproval The revisions

proposed 2/22/2012, would address this ground for disapproval This provision otherwise continues to meet the requirements of § 173(a)(2) and § 182(c)(7) of the Act See section IV.D.1.i

for further information

Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* (2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state shall be in compliance or on a schedule for compliance with all applicable state and federal emission limitations and standards. (2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the

state must shall be in compliance or on a schedule for compliance with all applicable state and federal emission limitations and standards. Changes are nonsubstantive Continues to meet § 173(a)(3) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-10 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* Rev proposed 2/22/2012 Parallel processed w/ EPA

proposal (3) At the time the new or modified facility or facilities commence operation, the emissions increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. Internal offsets which are generated at the source and which otherwise meet all creditability criteria can be applied as follows. (3) At the time the new or modified facility or facilities commence operation, the emissions increases from the new or modified facility or facilities

must shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. Internal offsets which are generated at the source and which otherwise meet all creditability criteria can be applied as follows. (3) At the time the new or modified facility or emissions unit or facilities or emissions units commence operation, the emissions increases from the new or modified facility or emissions unit or facilities or emissions units must be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. Internal offsets which are generated at the source and which otherwise meet all creditability criteria can be applied as follows. Relates to grounds for the 9/15/2010 disapproval The revisions

proposed 2/22/2012, would address this ground for disapproval This provision otherwise continues to meet the requirements of § 173(a)(1) of the Act, and 40 CFR 51.165(a)(9)- (ii)(A)-(D) See section IV.D.1.i

for further information

Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* (A) Major stationary sources with a PTE of less than 100 tons per year of an applicable nonattainment pollutant are not required to undergo Nonattainment New Source Review under this section, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. (A) Major stationary sources with a PTE of less than 100 tpy tons per year of an applicable nonattainment pollutant are not required to undergo nonattainment new source review Nonattainment New Source Review under this section, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Non-substantive Continues to meet § 182(c)(7) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-11 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1

(B) Major stationary sources with a PTE of greater than or equal to 100 tons per year of an applicable nonattainment pollutant can substitute BACT for LAER, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Internal offsets used in this manner can also be applied to satisfy the offset requirement. (B) Major stationary sources with a PTE of greater than or equal to 100 tpy tons per year of an applicable nonattainment pollutant can substitute BACT for LAER, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Internal offsets used in this manner can also be applied to satisfy the offset requirement. (B) Major stationary sources located in a serious

or severe ozone nonattainment area with a PTE of greater than or equal to 100 tpy of an applicable nonattainment pollutant can substitute federal BACT (as identified in §116.160(c)(1)(A) of this title (relating to Prevention of Significant Deterioration Requirements) for LAER, if the project increases are offset with internal offsets at a ratio of at least 1.3 to 1. Internal offsets used in this manner can also be applied to satisfy the offset requirement. Non-substantive Continues to meet § 182(c)(8) of the Act

Current SIP Under Review Approved 3/20/2009 Revision submitted 6/10/2005 Resubmitted 3/11/2011-1* (4) In accordance with the FCAA, the permit application shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location. (4) In accordance with the FCAA, the permit application must shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The analysis must shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location. Non-substantive Continues to meet § 173(a)(5) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.150-12 Annotation of Submitted Revisions to §116.150 Comments
Current SIP Under Review Approved 3/20/2009 Rev 6/10/2005 Resubmitted 3/11/2011-1 Revision submitted 3/11/2011-1 (b) For sources located in the El Paso ozone nonattainment area (El Paso County) the requirements of this section do not apply to NO x emissions. (f) (b) For sources located in the El Paso ozone nonattainment area (El Paso County) as defined in §101.1 of this title (relating to Definitions) , the requirements of this section do not apply to NO x emissions. (e) (f) For sources located in the El Paso ozone nonattainment area as defined in 40 Code of Federal Regulations, Part 81 §101.1 of this title (relating

to Definitions) , the requirements of this section do not apply to NO x emissions. Non-substantive Continues to meet 40

CFR 52.2308(b) which exempts the El Paso ozone nonattainment area from NO x under § 182(f) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-1 

### Evaluation of Revisions to 30 TAC 116.151 – Ne w Major Source or Major Modification in Nonattainment Areas Other Than Ozone

I. Background of 30 TAC 116.151

A. Current SIP. This section is currently SIP-approved. The current SIP was approved July 17, 2000, 65 FR 43993; e ffective August 16, 2000; as adopted by TCEQ March 18, 1998; effective April 7, 1998.

B. Submitted SIP Revisions to 30 TAC 116.151 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011, under Rule Project No. 2010-008-116-PR. Texas submitted revisions to 30 TAC 116.151, adopted February 9, 2011; effective Marc h 3, 2011. The revisions include: a) Reorganization of introductory pa ragraph to new subsections (a)- (c) and revisions thereto; b) Revisions to paragra phs (c)(2) and (c)(3). EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011 (NSR Reform). On March 11, 2011, TCEQ submitted the revisions (adopted February 9, 2011); effective March 3, 2011; under Rule Project No. 2008-030-116-PR. This SIP submittal is a resubmittal of the revisions to 30 TAC 116.151 previous ly submitted February 1, 2006, with no further changes.

3. Revisions proposed February 22, 2012 . TCEQ proposed a revision to paragraphs (a), (c)(1), and (c)(3). EPA will parallel process these revisions.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-2 

### II. Evaluation Matrix of 30 TAC 116.151

Annotation of Submitted Revisions to §116.151 Comments
Current SIP Approved 7/17/2000 No Change §116.151. New Major Source or Major Modification in Nonattainment Areas Other Than Ozone. Current SIP Under Review Approved 7/17/2000 Rev submitted 2/1/2006 Resubmitted 3/11/2011- 2* 1 Rev proposed 2/22/2012 Parallel processed w/

EPA proposal This section applies to administratively complete applications submitted on or after November 15, 1992, for new construction or modification of facilities located in a designated nonattainment area for an air contaminant other than

ozone. ...

Continued on next page (a) This section applies to administratively complete applications submitted on or after November 15, 1992, for new construction or modification of facilities located in a designated nonattainment area for an air contaminant other than

ozone. ...

Continued on next page (a) This section applies to applications for new construction or modification of facilities or emissions units located in a designated nonattainment area for an air contaminant other than

ozone. ...

Continued on next page Relates to grounds for the 9/15/2010 disapproval As proposed 2/22/2012,

this rule would meet all applicable Federal requirements The revisions otherwise

continue to meet 40 CFR 51.165(a)(2) See section IV.D.1.i for

further information

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-3 Annotation of Submitted Revisions to §116.151 Comments
Current SIP Under Review Approved 7/17/2000 Rev submitted 2/1/2006 Resubmitted 3/11/2011- 2* 2 Rev proposed 2/22/2012 Parallel processed w/

EPA proposal Continued from previous

page ... The owner or operator of a proposed new or modified facilit y which will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of paragraphs (1) - (4) of this section. Table I of §116.12 of this title (relating to Nonattainment Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels which designate a major stationary source or major modification for those classifications. Continued from previous

page ... The owner or operator of a proposed new or modified facility that which will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of subsection (c) paragraphs (1) - (4) of this section. Table I located in the definition of major modification in of §116.12 of this title (relating to Nonattainment and Prevention of significant Deterioration Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that which designate a major stationary source or major modification for those classifications

. Continued from previous

page ... The owner or operator of a proposed new or modified facilit y or emissions unit that will be a new major stationary source for that nonattainment air contaminant, or the owner or operator of an existing major stationary source that will undergo a major modification with respect to that nonattainment air contaminant, shall meet the additional requirements of subsection (c)(1) - (4) of this section. Table I located in the definition of major modification in §116.12 of this title (relating to Nonattainment and Prevention of significant Deterioration Review Definitions) specifies the various classifications of nonattainment along with the associated emission levels that designate a major stationary source. Relates to grounds for the 9/15/2010 disapproval As proposed 2/22/2012,

this rule would meet all applicable Federal requirements The revisions otherwise

continue to meet 40 CFR 51.165(a)(2) See section IV.D.1.i for

further information

2 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on June 10, 2005, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-4 Annotation of Submitted Revisions to §116.151 Comments Under Review Rev submitted 2/1/2006 Resubmitted 3/11/2011-2*

(b) The de minimis threshold test (netting) is re quired for all modifications to existing major sources of federally regulate d new source review pollutants, unless the proposed emissions increases associated with a project, w ithout regard to decreases, are less than the major modification threshold for the pollutant identified in Table I located in the definition of major modification in §116.12 of this title. Meets 40 CFR 51.165(a)(2)(ii)(A)

(c) In applying the de minimis test, if the net emissions increases are greater than the major modification levels in Table I located in the definition of major modification in §116.12 of this title, the following requirements apply. Meets 40 CFR 51.165(a)(2) and §173(a) of the Act Current SIP Under Review Approved 7/17/2000 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* Rev proposed 2/22/2012 Parallel processed w/

EPA proposal (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification. LAER shall be applied to each new emission unit and to each existing emission unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit. (1) The proposed facility shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility is a new major source or major modification. LAER shall be applied to each new facility emission unit and to each existing facility emission unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit. (1) The proposed facility or emissions unit shall comply with the lowest achievable emission rate (LAER) as defined in §116.12 of this title for the nonattainment pollutants for which the facility or emissions unit is a new major source or major modification. LAER shall be applied to each new facility and to each existing facility or emissions unit at which the net emissions increase will occur as a result of a physical change or change in method of operation of the unit. Relates to grounds for the 9/15/2010 disapproval As proposed 2/22/2012,

this rule would meet all applicable federal requirements The revisions continue to

meet 40 CFR 51.165(a)(2) and §173(a)(2) of the Act See section IV.D.1.i for

further information

Current SIP Approved 7/17/2000 (2) All major stationary sources owned or operated by the applicant (or by any person controlling, controlled by, or under common control with the applicant) in the state shall be in compliance or on a schedule for compliance with all applicable state and federal emission limits and standards. No Change Continues to meet §173(a)(3) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-5 Annotation of Submitted Revisions to §116.151 Comments
Current SIP Under Review Approved 7/17/2000 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2* Rev proposed 2/22/2012 Parallel processed w/

EPA proposal (3) At the time the new or modified facility or facilities commence operation, the emission increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I of §116.12 of this title. (3) At the time the new or modified facility or facilities commence operation, the emission increases from the new or modified facility or facilities shall be offset. The proposed facility shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I located in the definition of major modification in of §116.12 of this title. (3) At the time the new or modified facility or emissions unit or facilities or emissions units commence operation, the emission increases from the new or modified facility or emissions unit or facilities or emissions units shall be offset. The proposed facility or emissions unit shall use the offset ratio for the appropriate nonattainment classification as defined in §116.12 of this title and shown in Table I located in the definition of major modification in §116.12 of this title. Relates to grounds for the 9/15/2010 disapproval As proposed 2/22/2012,

this rule would meet all applicable Federal requirements Otherwise, these revisions

continue to meet §173(a)(1) of the Act

Current SIP Approved 7/17/2000 (4) In accordance with the Federal Clea n Air Act, the permit application shall contain an analysis of alternative sites, sizes, production processes, and control techniques for the proposed source. The anal ysis shall demonstrate that the benefits of the proposed location and source configuration significantly outweigh the environmental and social costs of that location. No Change Continues to meet §173(a)(5) of the Act

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter B – New Source Review Division 5 – Nonattainment Review §§116.150 and 116.151

Page 116.151-6 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.180-1 

### Evaluation of Revisions to 30 TAC 116.180 – Applicability

I. Background of 30 TAC 116.180

A. Current SIP. This section is not currently SIP-approved

B. Submitted SIP Revisions to 30 TA C 116.180 Reviewed in this Action

1. February 1, 2006, and resubmitted March 11, 2011. Texas submitted a new 30 TAC 116.180, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011 (under Rule Project No. 2010-008-116-PR; NSR Reform). Texas submitted revisions to 30 TAC 116.180, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) Revisions to paragraphs (a)(1), (3), (4) and (5); and subsections (b) and (c); and b) Resubmittal of revisions to §116.180 previously submitted February 1, 2006.

3. Revisions proposed February 22, 2012 . TCEQ proposed a revision to paragraph (a)(5). EPA will parallel process this revision.

II. Evaluation Matrix of 30 TAC 116.180

Annotation of Submitted Revisions to §116.180 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.180. Applicability

(a) The following requirements apply to a plantwide applicability limit (PAL) permit Meets 40 CFR 51.165(f)(4)(i)(E) and 51.166(w)(4)(i)(e) Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(1) only one PAL may be issued for each pollutant at an account site; (1) only one PAL may be issued for each pollutant at an existing major stationary source account site ; Relates to grounds for the 9/15/2010 disapproval 2

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

2 Relates to grounds for the 9/15/2010 disapproval. The revisions submitted 3/11/2011-2 address these grounds for disapproval. See section IV.C.1.iv for further information.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.180-2 Annotation of Submitted Revisions to §116.180 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006. Resubmitted 3/11/2011-2* (2) a PAL permit may include more than one PAL; Same as for ¶(a)(1) Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(3) a PAL permit may not cover facilities at more than one source; and (3) a PAL permit may not cover facilities at more than one existing major stationary source; and Same as for ¶(a)(1)

(4) A PAL permit may be may be consolidated with a state or federal permit at the source. (4) A PAL permit may be may be consolidated with a new source review permit at the existing major stationary

source a state or federal permit at the

source

. Same as for ¶(a)(1)

Pending. New paragraph (a)(5) submitted 3/11/2011-2 Revision Proposed 2/22/2012 Parallel processed w/ EPA proposal (5) A PAL permit can be issued only for an existing major stationary source; it may not be issued for a new major stationary source as defined in 40 Code of Federal Regulations §51.165(iv)(A). (5) A PAL permit can be issued only for an existing major stationary source; it may not be issued for a new major stationary source as defined in 40 Code of Federal Regulations §51.165(a)(1)(iv)A) and § 51.166(b)(1) §51.165(iv)(A)

. Relates to grounds for the 9/15/2010 disapproval ¶(a)(5) as submitted and the revisions proposed 2/22/2012, would address these grounds for disapproval. See section IV.C.1.i for further information

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.180-3 Annotation of Submitted Revisions to §116.180 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(b) The new owner of a major stationary source shall comply with §116.110(e) of this title (relating to Applicability), provided that all facilities covered by a PAL permit change ownership at the same time and to the same person, or both the new owner and existing permit holder must obtain a PAL permit alteration allocating the emission prior to the transfer of the permit by the commission. After the sale of a facility, or facilities, but prior to the transfer of a permit requiring a permit alteration, the original PAL permit holder remains responsible for ensuring compliance with the existing PAL permit and all rules and regulations of the commission. (b) The new owner of a major stationary source shall comply with §116.110(e) of this title (relating to Applicability), provided that all facilities, or emissions units at a major stationary

source, covered by a PAL permit change ownership at the same time and to the same person, or both the new owner and existing permit holder must obtain a PAL permit alteration allocating the emission prior to the transfer of the permit by the commission. After the sale of a facility, or emissions unit at a major stationary

source facilities , but prior to the transfer of a permit requiring a permit alteration, the original PAL permit holder remains responsible for ensuring compliance with the existing PAL permit and all rules and regulations of the commission. Relates to grounds for the 9/15/2010 disapproval The revisions submitted 3/11/2011-2 meet addressed these grounds for disapproval See section IV.C.1.iv for further information Subsection (b) also meets §116.110(e) that are currently SIP approved Subsection (b) also meets 40 CFR 51.163

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(c) The owner of the facility, group of facilities, or account or the operator of the facility, group of facilities, or account that is authorized to act for the owner is responsible for complying with this section, except as provided by subsection (b) of this section. (c) The owner of the facility, emissions unit at a major stationary source, or group of facilities, or account or the operator of the facility, emissions unit at a major stationary source, or group of facilities, or account that is authorized to act for the owner is responsible for complying with this section, except as provided by subsection (b) of this section. Relates to grounds for the 9/15/2010 disapproval The revisions submitted 3/11/2011-2 meet addressed these grounds for disapproval See section IV.C.1.iv for further information. Also meets 40 CFR 51.100(f)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.180-4 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.182-1 

### Evaluation of Revisions to 30 TAC 116.182 – Plant-wide Applicability Permit Limit Application

I. Background of 30 TAC 116.182

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.182 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.182, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.182, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) Revision to paragraph (1); and b) Resubmittal of revisions to §116.182 previously submitted February 1, 2006.

II. Evaluation Matrix of 30 TAC 116.182

Annotation of Submitte d Revisions to §116.182 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.182. Plant-wide Applicab ility Limit Permit Application

Any application for a new plant-wide ap plicability limit (PAL) permit or PAL permit amendment must be completed and signed by an authorized representative. In order to be granted a PAL permit or PAL permit amendment, the owner or operator of the proposed facility shall submit information to the commission which demonstrates that all of the following information is submitted: Meets 40 CFR 51.165(f)(3) and 51.166(w)(3)

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.182-2 Annotation of Submitte d Revisions to §116.182 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(1) a list of all facilities, including their registration or permit number to be included in the PAL, their potential to emit, and the expected maximum capacity. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations, or work practices apply to each unit. (1) a list of all facilities, or emissions units at a major stationary source, that emit the PAL pollutant, including their registration or permit number to be included in the PAL, their potential to emit, and the expected maximum capacity. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations, or work practices apply to each unit. Relates to grounds for the 9/15/2010 disapproval The revision submitted 3/11/2011-2 meet addresses these grounds for disapproval See section IV.C.1.iv for further information

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006. Resubmitted 3/11/2011-2* (2) calculations of the baseline actual emissions with supporting documentation. See Note below 2 (3) the calculation procedures that the permit holder proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12- month rolling total for each month; and Meets 40 CFR 51.165(f)(3)(iii) and 51.166(w)(3)(iii) (4) the monitoring and recordkeeping proposed to satisfy the requirements of §116.186 of this title (relating to Gene ral and Special Conditions) for each PAL.

2 Meets 40 CFR 51.165(f)(3)(ii) and 51.166(w)(3)(ii). See section IV.C.1.v for further information.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.184-1 

### Evaluation of Revisions to 30 TAC 116.184 – Application Review Schedule

I. Background of 30 TAC 116.184

A. Current SIP. This section is not currently SIP-approved

B. Submitted SIP Revisions to 30 TAC 116.184 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.184, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.182, adopted February 9, 2011; effective March 3, 2011. This SIP submittal is a resubmittal of the revisions to 30 TAC 116.184 previously submitted February 1, 2006, with no further changes.

II. Evaluation Matrix of 30 TAC 116.184

Annotation of Submitted Revisions to §116.184 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.184. Application Review Schedule The plant-wide applicability limit permit application will be reviewed by the commission in accordance with § 116.114 of this title (relatin g to Application Review Schedule). Meets 40 CFR 51.163

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.184-2 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-1 

### Evaluation of Revisions to 30 TAC 116.186 – General and Special Conditions

I. Background of 30 TAC 116.186

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.186 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.184, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.186, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) Revisions to subsection (a ) and paragraphs (b)(1); b) New paragraph (b)(9) and renum bering of existing paragraphs (b)(9)-(10) to paragraphs (b)(10)-(11); c) New paragraph (c)(1) and renumbering of existing paragraphs (c)(1)-(3) to paragraphs (c)(2)-(4); d) Revisions to paragraphs (c)(2) and (3), as renumbered; and e) Resubmittal of revisions to §116.186 previously submitted February 1, 2006.

3. Revisions proposed February 22, 2012 . TCEQ proposed a revision to paragraph (b)(9). EPA will parallel process this revision.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-2 

### II. Evaluation Matrix of 30 TAC 116.186

Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.186. General and Special Conditions Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(a) The plant-wide applicability limit (PAL) will impose an annual emission limitation in tons per year that is enforceable for all facilities included in the PAL. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall demonstrate that the sum of the monthly emissions from each facility under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each facility under the PAL is less than the PAL. Each PAL shall include emissions of only one pollutant. The PAL must include all emissions, including fugitive emissions, to the extent quantifiable, from all facilities included in the PAL that emit or have the potential to emit the PAL pollutant. (a) The plant-wide applicability limit (PAL) will impose an annual emission limitation in tons per year that is enforceable for all facilities, or emissions units at a major stationary source, that emit the PAL pollutant. included in the PAL. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall demonstrate that the sum of the monthly emissions from each facility under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each facility under the PAL is less than the PAL. Each PAL shall include emissions of only one pollutant. The PAL must include all emissions, including fugitive emissions, to the extent quantifiable, from all facilities or emissions units at a major stationary source included in the PAL that emit or have the potential to emit the PAL pollutant. Relates to grounds for the 9/15/2010 disapproval The revisions submitted 3/11/2011-2 address these grounds for disapproval See section IV.C.1.iv for further information regarding the accounting of all emissions from a major stationary source EPA further identified an issue concerning whether TCEQ accounts for emissions from startups, shutdowns, and malfunctions for compliance purposes On 5/3/2012 TCEQ forwarded a letter which addresses this matter. See section IV.C.2.iii for further information regarding the accounting of emissions from startups, shutdowns, and malfunctions

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-3 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2*

(b) The following general conditions shall be applicable to every PAL permit. Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(1) Applicability. This section does not authorize any facility to emit air pollutants but establishes an annual emissions level below which new and modified facilities will not be subject to federal NSR for that pollutant. (1) Applicability. This section does not authorize any facility to emit air pollutants but establishes an annual emissions level below which new and modified facilities, or emissions units at a major stationary source, will not be subject to federal NSR for that pollutant. Relates to grounds for the 9/15/2010 disapproval The revision submitted 3/11/2011-2 addressed these grounds for disapproval See section IV.C.1.iv for further information Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (2) Sampling requirements. If sampling of stacks or process vents is required, the PAL permit holder shall contact the commission's Office of Compliance and Enforcement prior to sampling to obtain the proper data forms and procedures. All sampling and testing procedures must be approved by the executive director and coordinated with the appropriate regional office of the commission. The PAL permit holder is also responsible for providing sampling facilities and conducting the sampling operations or contracting with an independent sampling consultant. Meets 40 CFR 51.212(a). Also comparable to provisions of §116.115(b)(2)((D)

(3) Equivalency of methods. The permit holder shall demonstrate the equivalency of emission control methods, sampling or other emission testing methods, and monitoring methods proposed as alternatives to methods indicated in the conditions of the PAL permit. Alternative methods must be applied for in writing and must be reviewed and approved by th e executive director prior to their use in fulfilling any requirements of the permit. Meets 40 CFR 51.212(c). Also comparable to provisions of §116.115(b)(2)((E)

(4) Recordkeeping and Reporting. Meets 40 CFR 51.165(f)(13) and 51.166(w)(13) (A) A copy of the PAL permit along with information and data sufficient to demonstrate continuous compliance with the emission caps contained in the PAL permit must be maintained in a file at the plant site and made available at the request of personnel from the commission or any air pollution control program having jurisdiction. For facilities that normally ope rate unattended, this information must be maintained at the nearest staffed location within Texas specified by the permit holder in the permit application. This information must include, but is not limited to, emission cap and individual emission limitation calculations based on a 12-month rolling basis and production records and operating hours. Additional recordkeeping requirements may be specified in special conditions attached to the PAL permit. Meet the requirements of 40 CFR 51.165(f)(13)(i), 51.165(f)(7)(viii), 51.166(w)(13)(i), and 51.166(w)(7)(viii)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-4 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (B) The owner or operator shall retain a copy of the PAL permit application and any applications for revisions to the PAL, each annual certification of compliance under §122.146 of this title (rel ating to Compliance Certification Terms and Conditions), and the data relied on in certifying the compliance for the duration of the PAL plus five years. Meets 40 CFR 51.165(f)(13)(ii) and 51.166(w)(13)(ii)

(C) A semiannual report shall be submitted to the executive director within 30 days of the end of each reporting period that contains: See note below 2

(i) the identification of the owner and operator and the permit number; Meets 40 CFR 51.165(f)(14)(i)(A) and 51.166(w)(14)(i)(a)

(ii) total annual emissions (in tons per year) based on a 12-month rolling total for each month in the reporting period; Meets 40 CFR 51.165(f)(14)(i)(B) and 51.166(w)(14)(i)(b) (iii) all data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL emissions; Meets 40 CFR 51.165(f)(14)(i)(C) and 51.166(w)(14)(i)(c) (iv) a list of any facility modified or added to the major stationary source during the preceding six-month period; Meets 40 CFR 51.165(f)(14)(i)(D) and 51.166(w)(14)(i)(d) (v) the number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), and any corrective action taken. This may be satisfied by referencing the PAL permit number in the semiannual report for the site under §122.145 of this title (relating to Reporting Terms and Conditions); Meets 40 CFR 51.165(f)(14)(i)(E) and 51.166(w)(14)(i)(e)

(vi) a notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the emissions of the pollutant or the number determined by method included in the permit; and Meets 40 CFR 51.165(f)(14)(i)(F) and 51.166(w)(14)(i)(f)

(vii) a signed statement by the respon sible official certif ying the truth, accuracy, and completeness of th e information in the report. Meets 40 CFR 51.165(f)(14)(i)(G) and 51.166(w)(14)(i)(g) (D) The owner or operator shall submit th e results of any revalidation test or method to the executive director within three months after completion of such test or method.

2 30 TAC 116.186(b)(4)(C) has no specific provision for submitting the deviation reports as required under 40 CFR 51.165(f)(14)(ii) and 51,166(w)(14)(ii). However, deviation reports are required to be submitted under the approved SIP at 30 TAC 101.201 which requires reporting of emission events. This section applies to all sources in Texas (including PALs) and is more comprehensive than the PAL deviation report requirements under §§51.165(f)(14)(ii) and 51,166(w)(14)(ii). Accordingly, 30 TAC 116.182(b)(4)(C) meets the requirements of 40 CFR 51.165(f)(13) and 51.166(w)(13).

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-5 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (5) Maintenance of emission control. Th e facilities covered by the PAL permit will not be operated unless all air pollution emission capture and abatement equipment is maintained in good working order and operating properly during normal facility operations. Meets 40 CFR 51.163 This is also comparable to § 116.115(b)(2)(G) in the existing SIP. (6) Compliance with rules. Acceptance of a PAL permit by a permit applicant constitutes an acknowledgment and agreement that the holder will comply with all rules and orders of the commission issued in conformity with the Texas Clean Air Act and the conditions precedent to the granting of the permit. If more than one state or federal rule or PAL permit condition is applicable, then the most stringent limit or condition will govern and be the standard by which compliance must be demonstrated. Acceptance includes cons ent to the entrance of commission employees and agents into the permitted pr emises at reasonable times to investigate conditions relating to the emission or concentration of air contaminants, including compliance with the PAL permit. Meets 40 CFR 51.163 This is also comparable to § 116.115(b)(2)(H) in the existing SIP

(7) Effective period. The PAL is effective for ten years. Meets 40 CFR 51.165(f)(4)(i)(F) & (f)(7)(ii), and 51.166(w)(4)(i)(f) & (w)(7)(ii) (8) Absence of monitoring data. A source owner or operator shall record and report maximum potential emissions wit hout considering enforceable emission limitations or operational restrictions for a facility during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit special conditions. Meets 40 CFR 51.165(f)(12)(vii) and 51.166(w)(12)(vii)

Pending. Submitted 3/11/2011 -2 Revision Proposed 2/22/2012 Parallel processed w/ EPA proposal (9) Monitoring system requirements. Failure to use a monitoring system that meets the requirements of this section is a violation of the PAL permit. (9) Monitoring system requirements. Failure to use a monitoring system that meets the requirements of this section renders the PAL permit invalid is a violation of the PAL permit

. Relates to grounds for the 9/15/2010 disapproval 30 TAC 116.186(b)(9) submitted 3/11/2011-2 and the revisions proposed 2/22/2012 would address these grounds for disapproval See section IV.C.1.iii for further information.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-6 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the executive director. Such testing must occur at least once every five years after issuance of the PAL. (10) (9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the executive director. Such testing must occur at least once every five years after issuance of the PAL. Meets 40 CFR 51.165(f)(13)(ix) and

51.166(w)(ix)

(11) Renewal. If a PAL renewal application is submitted to the executive director in accordan ce with §116.196 ofthis title (relating to Renewal of a Plantwide Applicability Limit Permit), the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a renewed PAL permit is issued by the executive director or the application is voided. (11) (10) Renewal. If a PAL renewal application is submitted to the executive director in accordance with §116.196 of this title (relating to Renewal of a Plant-wide Applicability Limit Permit), the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a renewed PAL permit is issued by the executive director or the application is voided. Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2*

(c) The PAL permit must include special conditions that satisfy the following requirements. Meets 40 CFR 51.165(f)(12)(i) and 51.166(w)(12)(i) (1) For the purposes of this subchapter, the definitions of the following terms are the same as those provided in 40 Code of Federal Regulations §51.165. Relates to grounds for the 9/15/2010 disapproval 30 TAC 116.186(c)(1) submitted 3/11/2011-2 addresses these grounds for disapproval See section IV.C.1.vi for further information 3 (A) Continuous emission monitoring system (CEMS). (B) Continuous emissions rate monitoring system (CERMS). (C) Continuous parameter monitoring system (CPMS). (D) Predictive emissions monitoring system (PEMS).

3 TCEQ only incorporated by reference the definitio ns of CEMS, CERMS, CPMS , and PEMS, in 40 CFR 51.165a(a)(1). It is not necessary to incorporate the same definitions in 40 CFR 51.166(b) because these terms are defined identically in both sections.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-7 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(1) The PAL monitoring system must accurately determine all emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (2) (1) The PAL monitoring system must accurately determine all emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. The revision submitted 3/11/2011-2 and TCEQ’s letter dated mm/dd/2012 ensure that this provision meets Federal requirements. See section IV.C.2.ii for

further information

(2) The PAL monitoring system must employ one or more of the general monitoring approaches meeting the minimum requirements as described in subparagraphs (A) - (D) of this paragraph. (3) (2) The PAL monitoring system must employ one or more of the general monitoring approaches meeting the minimum requirements as described in subparagraphs (A) - (D) of this paragraph. Meets 40 CFR 51.165(f)(12)(i)(B) and 51.166(w)(12)(i)(b)

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (A) An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: Meets 40 CFR 51.166(f)(12)(ii)(A), 51.165(f)(12)(iii), 51.166(w)(12)(ii)(a), and 51.166(w)(12)(iii) (i) provide a demonstrated means of validating the published content of the PAL pollutant that is contained in, or created by, all materials used in or at the facility; Meets 40 CFR 51.165(f)(12)(iii)(A) and 51.166(w)(12)(iii)(a) (ii) assume that the facility emits all of the PAL pollutant that is contained in, or created by, any raw material or fuel used in or at the facility, if it cannot otherwise be accounted for in the process; and Meets 40 CFR 51.165(f)(12)(iii)(B) and 51.166(w)(12)(iii)(a) (iii) where the vendor of a material or fu el, which is used in or at the facility publishes a range of pollutant content from such material, the owner or operator shall use the highest value of the range to calculate the PAL pollutant emissions unless the executive director determines that there is site-specific data or a site-specific monitoring program to support another content within the range. Meets 40 CFR 51.165(f)(12)(iii)(C) and CFR 51.166(w)(12)(iii)(c)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-8 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(B) An owner or operator using a continuous emission monitoring system (CEMS) to monitor PAL pollutant emissions shall meet the following requirements. (B) An owner or operator using a continuous emission monitoring system ( CEMS) to monitor PAL pollutant emissions shall meet the following requirements. Meets 40 CFR 51.165(f)(12)(ii)(B) & (iv) and 51.166(w)(12)(ii)(b) & (iv) (C) An owner or operator using continuous parameter monitoring system (CPMS) or predictive emission monitoring system (PEMS) to monitor PAL pollutant emissions shall meet the following requirements. (C) An owner or operator using continuous parameter monitoring system ( CPMS) or predictive emission monitoring system ( PEMS) to monitor PAL pollutant emissions shall meet the following requirements. Meets 40 CFR 51.165(f)(12)(iv)(A) and 51.166(w)(12)(iv)(a)

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (i) The CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the facility. Meets 40 CFR 51.165(f)(12)(iv)(A) and 51.166(w)(12)(iv)(a) (ii) Each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes or at another less freq uent interval approved by the executive director, while the facility is operating. Meets 40 CFR 51.165(f)(12)(iv)(B) and 51.166(w)(12)(iv)(b)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-9 Annotation of Submitted Revisions to §116.186 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (D) An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements. Meets 40 CFR 51.166(f)(12)(ii)(D) & (vi) and 51.166(w)(12)(ii)(d) & (vi) (i) All emission factors must be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development. Meets 40 CFR 51.165(f)(12)(vi)(A) and 51.166(w)(12)(vi)(a) (ii) The facility shall operate within the designated range of use for the emission factor, if applicable. Meets 40 CFR 51.165(f)(12)(vi)(B) and 51.166(w)(12)(vi)(b) (iii) If technically practicable, the owne r or operator of a significant facility that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor within six months of PAL permit issuance, unless the executive di rector determines that testing is not required. Meets 40 CFR 51.165(f)(12)(vi)(C) and 51.166(w)(12)(vi)(c)

(E) An alternative monitoring approach must meet the requirements in paragraph (1) of this subsection if approved by the executive director. Meets CFR 51.165(f)(12)(i)(C) and 51.166(w)(12)(i)(d) Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(3) Where an owner or operator of a facility cannot demonstrate a correlation between a monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the facility, the executive director, shall: (4) (3) Where an owner or operator of a facility cannot demonstrate a correlation between a monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the facility, the executive director, shall: Meets 40 CFR 51.165(f)(12)(viii) and 51.166(w)(12)(viii)

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (A) establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or Meets 40 CFR 51.165(f)(12)(viii) and 51.166(w)(12)(viii) (B) determine that operation of the facility during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.186-10 

### [This page is intentionally left blank ]

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.188-1 

### Evaluation of Revisions to 30 TAC 116.188 – Plant-wide Applicability Limit

I. Background of 30 TAC 116.188

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.188 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.184, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.188, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) A non-substantive administrative change to paragraph (3); and b) Resubmittal of revisions to §116.188 previously submitted February 1, 2006.

II. Evaluation Matrix of 30 TAC 116.188

Annotation of Submitted Revisions to §116.188 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.188. Plant-wide Applicability Limit

The plant-wide applicability limit (PAL) is the sum of the baseline actual emissions of the PAL pollutant for each existing facility at the source to be covered. The allowable emission rate may be used for facilities that did not exist in the baseline period. Baseline actual emissions from facilities that were permanently shut down after the baseline period must be subtracted from the baseline emissions rate. Meets 40 CFR 51.165(f)(6)(1)(i)-(ii) & 51.166(w)(6)(1)(i)- (ii)

(1) An amount equal to the applicable significant level for the PAL pollutant may be added to the baseline actual emissions when establishing the PAL. Meets 40 CFR 51.165(f)(6)(1)(i) & 51.166(w)(6)(1)(i) (2) When establishing the PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the baseline actual emissions for all existing facilities. However, a different consecutive 24-month period may be used for each different PAL pollutant. Meets 40 CFR 51.165(f)(6)(1)(i) & 51.166(w)(6)(1)(i)

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.188-2 Annotation of Submitted Revisions to §116.188 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011 -2 Rev submitted 3/11/2011-2

(3) The executive director shall specify a reduced PAL level(s) in the PAL permit to become effective on the future compliance date(s) of any applicable federal or state regulatory requirement(s). (3) The executive director shall specify a reduced PAL level(s) in the PAL permit to become effective on the future compliance date(s) of any applicable federal or state regulatory requirement(s)

. Meets 40 CFR 51.165(f)(6)(1)(i) & 51.166(w)(6)(1)(i)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.190-1 

### Evaluation of Revisions to 30 TAC 116.190 – Fe deral Nonattainment and Prevention of Significant Deterioration Review

I. Background of 30 TAC 116.190

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.190 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.184, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.190, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) Revision to subsection (a); and b) Resubmittal of revisions to §116.190 previously submitted February 1, 2006.

II. Evaluation Matrix of 30 TAC 116.190

Annotation of Submitted Revisions to §116.190 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.190. Federal Nonattai nment and Prevention of Significant Deterioration Review Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2)

(a) An increase in emissions from operational or physical changes at a facility covered by a plant-wide applicability limit (PAL) permit is insignificant, for the purposes of federal new source review under this subchapter, if the increase does not exceed the PAL. (a) An increase in emissions from operational or physical changes at a facility, or emissions unit at a major stationary source, covered by a plantwide applicability limit (PAL) permit is insignificant, for the purposes of federal new source review under this subchapter, if the increase does not exceed the PAL. Meets 40 CFR 51.165(f)(1)(iii), and (f)(1)(iii)(A)-(B) and 51.166(w)(1)(ii) and (w)(1)(ii)(a)-(b)

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.190-2 Annotation of Submitted Revisions to §116.190 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2*

(b) At no time are emissions reductions of a PAL pollutant that occur during the PAL effective period creditable as decreases for purposes of offsets unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. Meets 40 CFR 51.165(f)(4)(ii) and 51.166(w)(4)(ii)

(c) A physical or operational change no t causing an exceedance of a PAL is not subject to federal restrictions on relaxi ng enforceable emission limitations to avoid new source review. Meets 40 CFR 51.165(f)(1)(iii)(C), 51.165(a)(5)(ii) , 51.166(w)(1)(ii)(c), and 51.166(r)(2)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-1 

### Evaluation of Revisions to 30 TA C 116.192 – Amendments and Alterations

I. Background of 30 TAC 116.192

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.192 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.192, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.192, adopted February 9, 2011; effective March 3, 2011. The submittal includes the following: a) Revisions to paragra phs (a)(1) and (2); b) New subsection (c); and c) Resubmittal of revisions to §116.192 previously submitted February 1, 2006.

II. Evaluation Matrix of 30 TAC 116.192

Annotation of Submitted Revisions to §116.192 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.192. Amendments and Alterations

(a) Any increase in a plant-wide applicability limit (PAL) must be made through amendment. Amendment applications must al so include the information identified in §116.182 of this title (relating to Plant-wide Applicability Limit Permit Application) for new and modified facilities contributing the increase in emissions so as to cause the major stationary source’s emissions to equal or exceed its PAL and are subject to public notice requirements under §116.194 of this title (relating to Public Notice and Comment). Meets 40 CFR 51.165(f)(11)(i)(A) and 51.166(w)(11)(i)( a )

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-2 Annotation of Submitted Revisions to §116.192 Comments Pending. Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(1) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small facilities, plus the sum of the baseline actual emissions of the significant and major facilities assuming application of best available control technology equivalent controls, plus the sum of the allowable emissions of the new or modified facilities exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant and major facility shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the facility is required to comply with BACT or lowest achievable emission rate (LAER) requirement that was established within the preceding ten years. In such case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. (1) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small facilities, plus the sum of the baseline actual emissions of the significant and major facilities assuming application of best available control technology (BACT) (as identified in §116.160(c)(1)(A) of this title (relating to Prevention of Significant Deterioration Requirements)) equivalent controls, plus the sum of the allowable emissions of the new or modified facilities exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant or and major facility shall be determined by conducting a new federal BACT analysis at the time the application is submitted, unless the facility is required to comply with a federal BACT or lowest achievable emission rate (LAER) requirement that was established within the preceding ten years. In such case, the assumed control level for that emissions unit shall be equal to the level of federal BACT or LAER with which that emissions unit must currently comply. Meets 40 CFR 51.165(f)(11)(i)(B) and 51.165(w)(11)(i)( b )

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-3 Annotation of Submitted Revisions to §116.192 Comments Pending. Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(2) The owner or operator shall obtain a federal new source review permit for all facilities contributing to the increase in emissions so as to cause the major stationary source’s emissions to equal or exceed its PAL, regardless of the magnitude of the emissions increase. These facilities shall comply with any emissions requirements resulting from the review process. (2) The owner or operator shall obtain a major new source review permit under applicable provision of Subchapter B, Division 5 and Division 6 of this chapter (relating to Nonattainment Review Permits; and Prevention of Significant Deterioration Review, respectively) federal new source review
perm it for all facilities contributing to the increase in emissions so as to cause the major stationary source’s emissions to equal or exceed its PAL, regardless of the magnitude of the emissions increase. These facilities shall comply with any emissions requirements resulting from the review process. Meets 40 CFR 51.165(f)(11)(i)(C) and 51.165(w)(11)(i)( c )

Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (3) The PAL permit shall require that the increased PAL level be effective on the day any emission unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. Meets 40 CFR 51.165(f)(11)(i)(D) and 51.165(w)(11)(i)( d ) Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006 Resubmitted 3/11/2011-2 Rev submitted 3/11/2011-2

(4) The new PAL shall be the sum of the allowable emissions for each modified or new facility, the sum of the baseline emissions of the significant and major emissions units after the application of BACT equivalent controls as identified in paragraph (1) of this subsection, plus the sum of the baseline actual emissions of the small emissions units. (4) The new PAL shall be the sum of the allowable emissions for each modified or new facility, the sum of the baseline emissions of the significant and major emissions units after the application of BACT equivalent controls as identified in paragraph (1) of this subsection, plus the sum of the baseline actual emissions of the small emissions units. Meets 40 CFR 51.165(f)(11)(ii) and 51.166(w)(11)(ii)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-4 Annotation of Submitted Revisions to §116.192 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2*

(b) Changes to PAL permits that do not require the PAL to be increased must be completed through permit alteration. Unless allowed in the PAL permit special conditions, the permit holder shall submit an alteration request prior to start of construction for physical modifications to facilities or installation of new facilities under the PAL. Approval must be received fr om the executive dir ector prior to start of operation of the facilities if the emissi ons from the new or modified facility may exceed 100 tons per year. Subsection (b) meets Federal requirements at 40 CFR 51.165(f)(1)(iii) and 51.166(w)(1)(ii) 2

Pending. Rev submitted 3/11/2011-2

(c) Acceptance of a PAL permit is agreemen t by the permit holder for the executive director to reopen the PAL permit consistent with the requirements of §116.194 of this title for any actions in paragraphs (1) or (2) of this subsection. Relates to grounds for the 9/15/2010 disapproval The submittal of 30 TAC

116.192(c) on 3/11/2011-2 address these grounds for disapproval. See section IV.C.1.ii

further information (1) During the PAL effective period, the executive director shall reopen the PAL permit to: (A) correct typographical or calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; (B) decrease the PAL limit the owner or op erator of the major stationary source creates creditable emissions reductions that meet the requirements of 40 Code of Federal Regulations (CFR) §51.165(a)(3)(ii) for use as offsets; and (C) revise the PAL to reflect an incr ease in the PAL prov ided the owner or operator complies with the requirements of 40 CFR § 52.21(aa)(11) and § 51.166(f)(11). (2) During the PAL effective period, th e executive director may reopen the PAL for the following: (A) revise the PAL to reflect newly applicable federal requirements (for example, New Source Performance Standard s) with compliance dates after the PAL effective date; (B) revise the PAL to be consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose on the major stationary source under the state Implementation Plan; or (C) reduce the PAL if the reviewing authority determines that a reduction is necessary to avoid causing or contribu ting to a National Ambient Air Quality Standard or Prevention of Significant Deterioration increment violation, or to an adverse impact on an air quality related value that has been identified for a Federal Class I area by a federal land manager and for which information is available to the general public.

2 Additional information is provided in sectio n III which immediately follows this table.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-5 

### III. Addditional Information on 30 TAC 116.192(b)

A. 30 TAC 116.192(b) applies to any physical an operational changes under a PAL that “maintains its total source-wide emissions below the PAL level.” The applicable federal requirements that govern this type of change are found at 40 CFR 51.165(f)(1)(iii) and 51.166(w )(1)(ii). These rules provi de in relevant part: Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level , ...:

Is not a major modification for the PAL pollutant;

Does not have to be approved through the plan's major NSR program[.] Emphasis added.

B. This is interpreted in the Technical Support Document for the Prevention of Significant Deterioration and Nona ttainment Area New Source Review Regulations , November 2002, where EPA addresses the issue of changes to a PAL permits that do not cause major NSR. There EPA states: We agree that any change at your source that can be accomplished under that PAL should not trigger major NSR. ... [N]ew emissions units that can be added without exceeding the PAL will not be required to install BACT or LAER. No Major NSR “look back” is re quired at renewal. BACT and LAER will be applied retroactively, however , if you exceed your PAL without prior approval from the reviewing authority. We also agree that your State minor NSR program continues to apply to all changes at the source that are accomplished under the PAL . Under the final PAL provisions, by defi nition, all such changes (r egardless of the size of the change itself) are below major NS R significance levels and, as such, may be subject to minor NSR. Emphasis added. See November 2002 TSD at Section 7.73, page I-7-41. This document is available at: http://www.epa.gov/air/nsr /documents/nsr-tsd_11-22- 02.pdf

. C. Texas’s rule at 30 TAC 116.192(b) m eets the requirements of 40 CFR 51.165(f)(1)(iii) and 51.166(w)(1)(ii) and the above interpretation in the November 2002 TSD as follows:

1. For a change under a PAL Permit that does not require the PAL to be increased TCEQ uses a provisions of its SIP approved minor NSR program to authorize such change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.192-6 

### 2. Specifically, TCEQ uses the permit alteration process provided under 30 TAC 116.116(c) 3 

### , which is part of the approved Texas SIP, to authorize such change. Paragraph (b) applies only to “[c]hanges to PAL permits that do not require the PAL to be increased ” See 30 TAC 116.192(b). Emphasis added. In contrast, any change to a Changes to PAL permit that results in or requires the PAL to be increased must follow the requirement under 30 TAC 116.192(a) which requires the change to undergo Major NSR.

D. EPA’s Evaluation of 30 TAC 116.192(b)

1. This rule applies only to changes to a PAL the do not require the PAL to be increased. Such changes are not subject to Major NSR under 40 CFR 51.165(f)(1)(iii) and 51.166(w)(1)(ii).

2. Any such change that does not require the PAL to be increased may be authorized under a State’s SIP-ap proved Minor NSR Program. 30 TAC 116.192(b) uses a permit alteration to aut horize this type of change. Permit alterations are approved as part of the Texas SIP. The November 2002 TSD allows such changes that do not in crease the PAL to be authorized by a State’s SIP-approved Minor NSR Program.

3. Accordingly, the requirements of 30 TAC 116.192(b) meet the requirements of 40 CFR 51.165(f)(1)( iii) and 51.166(w)(1)(ii) and are approvable.

3 The requirements of 30 TAC 116.116(c) were approve into the Texas SIP at 67 FR 58697, September 18, 2002.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.196-1 

### Evaluation of Revisions to 30 TAC 116.196 – Re newal of a Plant-wide Applicability Limit Permit

I. Background of 30 TAC 116.196

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.196 Reviewed in this Action

1. February 1, 2006, and res ubmitted March 3, 2011. Texas submitted a new 30 TAC 116.196, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.196, adopted February 9, 2011; effective Marc h 3, 2011. This SIP submittal is a resubmittal of the revisions to 30 TAC 116.196 previously submitted February 1, 2006, with no further changes.

II. Evaluation Matrix of 30 TAC 116.196

Annotation of Submitted Revisions to §116.196 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.196. Renewa l of a Plant-wide Applicability Limit Permit.

(a) A stationary source owner or operator shall submit a timely application to the executive director to request renewal of a plant-wide applicability limit (PAL). A timely application is one that is submitted at least six months prior to, but not earlier than 18 months from, the date of permit expiration. If the owner or operator of a stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued or the PAL voided. Meets 40 CFR 51.165(f)(10)(ii) and 51.166(w)(10)(ii)

(b) All PAL permits issued prior to the effective date of this section are subject to the renewal requirements under this section. These permits must be renewed by the later of December 31, 2006, or within th e time frame specified in subsection (a) of this section, whichever is later. Meets 40 CFR 51.165(f)(15) and 51.166(w)(15)

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.196-2 Annotation of Submitted Revisions to §116.196 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2*

(c) The following information must be submitted with a PAL renewal application: Meets 40 CFR 51.165(f)(10)(iii) & 51.166(w)(10)(iii) (1) a proposed PAL level. Meets 40 CFR 51.165(f)(10)(iii)(B) & 51.166(w)(10)(iii)(b) (2) information as identified in §116.182(1) of this title (relating to Plant-wide Applicability Limit Permit Application; and. Meets 40 CFR 51.165(f)(3)(i) and 51.166(w)(3(i) (3) any other information the owner or operator wishes the executive director to consider in determining the appropriate level for renewing the PAL. Meets 40 CFR 51.165(f)(10)(iii)(D) and 51.166(w)(10)(iii)(d) (d) The proposed PAL level and a written rationale for the proposed PAL level are subject to the public notice requirements in §116.194 of this title (relating to Public Notice and Comment). During such public review, any person may propose a PAL level for the source for consider ation by the executive director. Meets 40 CFR 51.165(f)(10)(i) and 51.166(w)(10)(i)

(e) The renewed PAL shall not exceed the pot ential to emit of the stationary source and shall not be set at a level higher than the current PAL, unless the PAL is being amended in accordance with §116.192(a) of this title (relating to Amendments and Alterations) concurrently with the renewal. The executive director may adjust the renewed PAL in accordance with the following. Meets 40 CFR 51.165(f)(10)(iv)(C) and 51.166(w)(10)(iv)(c)

(1) If the emissions level calculated in accordance with §166.188 of this title (relating to Plant-wide Applicability Limit) is equal to or greater than 80% of the PAL level, the PAL may be renewed at the same level. Meets 40 CFR 51.165(f)(10)(iv)- (C)(1) and 51.166(w)(10)(iv)- (c)(1) (2) If the emissions level calculated in accordance with §166.188 of this title is less than 80% of the PAL level, the executiv e director may set the PAL at a level that is determined to be more representative of the source’s baseline actual emissions, or that is determined to be more appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source’s voluntary emissions reductions, or other factors as specified by the executive director in written rationale. Meets 40 CFR 51.165(f)(10)(iv)- (C)(2) and 51.166(w)(10)(iv)- (c)(2)

(f) If the compliance date for a state or fe deral requirement that applies to the PAL source occurs during the PAL effective peri od, and if the executive director has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL renewal of federal operating permit renewal, whichever occurs first. Meets 40 CFR 51.165(f)(10)(v) and 51.166(w)(10)(v)

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.198-1 

### Evaluation of Revisions to 30 TAC 116.198 – Expiration or Voidance

I. Background of 30 TAC 116.198

A. Current SIP. This section is not currently SIP-approved.

B. Submitted SIP Revisions to 30 TA C 116.198 Reviewed in this Action

1. February 1, 2006, and resubmitted March 3, 2011. Texas submitted a new 30 TAC 116.198, adopted January 11, 2006; effective February 1, 2006. EPA disapproved the February 1, 2006, submittal on September 15, 2010, 75 FR 56424.

2. March 11, 2011. Texas submitted revisions to 30 TAC 116.198, adopted February 9, 2011; effective March 3, 2011. This SIP submittal is a resubmittal of the revisions to 30 TAC 116.198 previously submitted February 1, 2006, with no further changes.

II. Evaluation Matrix of 30 TAC 116.198

Annotation of Submitted Revisions to §116.198 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* 1 §116.198. Expiration or Voidance

(a) A plant-wide applicability limit (PAL) permit shall expire ten years after the date of issuance if the renewal is not subm itted in accordance with §116.196(a) of this title (relating to Renewal of a Plan t-wide Applicability Limit Permit). Meets 40 CFR 51.165(f)(9) and 51.166(w)(9) (b) Owners or operators of major stationary sources who decide not to renew their PAL will, within the time frame specifi ed for PAL renewal applications in §116.196(a) of th is title, submit a proposed allowable emission limit for each facility (or group of facilities, if such a distribution is more appropriate as decided by the executive director) by distributing the PAL allowable emissions for the major stationary source among each of the facilities th at existed under that PAL. If the PAL had not yet been adjusted for an applicab le requirement that became effective during the PAL effective period, the distribution shall be made as if the PAL had been adjusted. Meets 40 CFR 51.165(f)(9)(i)(A) and 51.166(w)(9)(i)(a)

1 In this chart, 3/11/2011-2 refers to Rule Project No. 2010-008-116, relating to New Source Review (NSR) Reform submitted March 11, 2011. An asterisk (*) indicates that the provision was a resubmittal of the same provisions previously submitted on February 1, 2006, without change.

### TECHNICAL SUPPORT DOCUMENT Appendix Annotation and Evaluation 30 TAC Chapter 116 – Control of Air Pollution by Permits for New Construction of Modification Subchapter C – Plantwide Applicability Limits

Division 1 – Plantwide Applicability Limits §§116.180, 116.182, 116.184, 116.186, 116.188, 116.190, 116.192, 116.196, and 116.198

Page 116.198-2 Annotation of Submitted Revisions to §116.198 Comments Pending. Revision submitted 2/1/2006 was disapproved 9/15/2010 Rev submitted 2/1/2006; Resubmitted 3/11/2011-2* (c) The executive director shall deci de whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each facility, or each group of facilities, as the executive director determines is appropriate. Each facility shall comply with the allowable emission limitation on a 12-month rolling basis. The executive director may approve the use of monitoring systems (source testing, emission factors, etc.) other than a continuous emission monitoring system, or continuous parameter monitoring system to demonstrate compliance with the allowable emission limitation. Meets 40 CFR 51.165(f)(9)(i)(B), 51.165(f)(9)(ii), 51.166(w)(9)(i)(b), and 51.166(w)(9)(ii)

(1) Until the executive director issues the revised permit incorporating allowable limits for each facility, or grou p of facilities, the source sha ll continue to comply with a source-wide multi-unit emissions cap equivalent to the level of the PAL emission limitation. Meets 40 CFR 51.165(f)(9)(iii) and 51.166(w)(9)(iii)

(2) Any physical change or change in the method of operation at the major stationary source will be subject to federa l new source review requirements if the change meets the definition of major modification in §116.12 of this title (relating to Nonattainment and Prevention of Significant Deterioration Definitions). Meets 40 CFR 51.165(f)(9)(iv), 51.165(f)(7)(v), 51.166(w)(9)(iv), and 51.166(w)(7)(v) (3) The major source owner or operator sha ll continue to comply with any state or federal applicable requirements during the PAL effective period. Meets 40 CFR 51.165(f)(9)(v) and 51.166(w)(9)(v)